An American Diplomat in China

by Paul S. Reinsch

On the afternoon of the day of Yuan's funeral I visited the new President informally; passing through several interior courts where soldiers were on guard and through a smiling flower garden I came into the library, simply furnished, where the President was working. Piles of papers and books on the desk and side tables indicated that he had been seeking information from many sources. We spent an hour or so discussing the political situation. He felt relieved at being no longer guarded and confined; but his newly acquired state had not changed his simplicity of manner. Quite in his usual optimistic mood, he said: "I have found a way to secure the coöperation of all factions. I will declare the Provisional Constitution of 1912 to be in force, and summon the old parliament; but its membership should be reduced by one half; it is too unwieldy. It will be summoned for this purpose only and to finish the Constitution; the reduction will come by amending the parliamentary election law."

I asked the President whether he did not consider it impossible thus to limit the function of the parliament, when once it was summoned. Would it not, I asked, almost certainly try to assume a controlling power in the Government, and would not this, in the absence of mature leaders, cause confusion?

"No," the President insisted; "the parliament will be confined to the specific function indicated by me."

As the community of Americans at Shanghai had repeatedly invited me to come to that city, I carried out a long-delayed intention by journeying southward to celebrate the Fourth of July there. My chief engagement—following, among others, an address at the Commencement exercises at St. John's University, an American University Club lunch, a reception given in my honour on the Flagship Brooklyn—was an address before the American Chamber of Commerce at dinner in the Palace Hotel, on July 1st. I spoke about the requirements of the new period upon which American commercial interests in the Far East were entering. In European countries and Japan, I said, the relation between the Government and the large industries and banking institutions is close. Together they develop national enterprise abroad. Not so in America. The Government and the concentrated capital of the United States do not act as a unit in foreign affairs. We believe that it is better to leave the initiative to private enterprise, confining the action of the Government to protecting opportunities for commerce abroad. In their work of organization, American merchants and representatives have the function of discovering, testing, and approving commercial policies and projects which are to be executed with home capital. On their wisdom and experience in China, New York and Chicago have to rely.

At the reception given by the Consul-General in Shanghai on the Fourth of July, I met Mr. Tang Shao-yi, the Kuo Min Tang leader who had been Premier and Minister of Finance in the first cabinet under the Republic. I found him unprepared to assume any responsible part in politics, although the prominence of his opposition to Yuan Shih-kai might have made him ready to help. As President Li had urged him to come to Peking, Mr. Tang said he would go when parliament had been reconvoked. But I apprehended and understood from others that he was loth to go because his enemies in Peking were still too powerful.

After a brief vacation at the summer residence of my family at Peitaiho, whither I had proceeded on the U.S. ship Cincinnati, I returned to Peking on the 27th of July, as much business awaited me there.

A change of government took place. The appointment of a new cabinet was announced on June 30, 1916, with a personnel completely different from that under Yuan Shih-kai. Mr. Tang did not leave Shanghai. A provisional cabinet was therefore constituted under General Tuan Chi-jui, Dr. Chen Chin-tao acting as Minister of Finance and Mr. Hsu Shih-ying as Minister of Communications. I had long known Doctor Chen, who had received his education in the United States and had lived abroad many years as Financial Commissioner of the Chinese Government. He was one of the few men in Chinese official life familiar with Western finance and banking—a scholarly man, slow and somewhat heavy in speech and manner, studious, and desirous of carrying modern methods of efficiency and careful audit into all branches of the Administration. Everyone met him with confidence.

The southern leaders did not come to Peking because they wished their complete ascendency to be recognized before taking part in the Government. Their demands that the Constitution of 1912 be revived and that Parliament be restored had been complied with. They further insisted on punishment for the leaders of the monarchical movement. Accordingly, on July 13th a mandate was issued providing for the arrest and trial of eight public men, including Liang Shih-yi, Chu Chi-chien, and Chow Tsu-chi. All of these men happened to be beyond the jurisdiction of the Chinese Government, so the mandate had the effect only of a decree of exile. General Tuan, the Premier, smilingly remarked in cabinet meeting that if the monarchists were really to be punished, few men in public life would go free.

With an entirely new personnel of government, all threads of negotiations, past and present, had to be taken up anew. I was already acquainted with the Premier and with Doctor Chen, but the other cabinet members I had met casually or not at all. With Doctor Chen and his associate of the Ministry of Finance, Mr. Hsu Un-yuen, who had been appointed managing director of the Bank of China, and with General Hsu Shu-cheng, the Premier's chief assistant, I frequently talked over the financial situation of China. The monarchical movement had been defeated, the Republic more firmly established; now, they suggested, it was highly appropriate for America to support China financially. They requested that the loan contract made by Lee, Higginson & Company be carried out, and further steps taken for strengthening and organizing Chinese credit.

I told the Premier about the railway and canal negotiations. He wished to encourage American participation in Chinese development, but did not commit himself on the new American proposals. On the matter of a loan he reënforced the position taken by the Minister of Finance and General Hsu. General Tuan had won the confidence of the Chinese people through his disapproval of Yuan's monarchical ambitions, and now occupied a strong position. "I do not expect much good," he said, "from the return of parliament; there will be endless party struggles and interference with the Administration. But as to this curious modern method of governing through talk, which fundamentally I see no virtue in, I am willing to give it a fair trial."