In such matters China has not the hard-and-fast ideas of sovereign authority and legality which reign in the West. It was therefore possible for a local government to be independent in most matters, and yet to allow itself to be guided by the central authority in some. A declaration of independence by no means implies that there are no relationships whatever between the recalcitrant ones and the central authorities. For this reason, too, the visit of a foreign representative to any one of the governors who had declared his independence would not, as in other countries, be regarded as an affront to the Central Government. Circumstances might occur under which the Central Government itself might favour such a visit, as incidentally relieving the strain. I felt quite free to send attachés of the Legation to the governors of disaffected provinces, and should quite freely have gone myself.
In all my interviews with high officials the prime subject was finance. Not that China, as an associate in the war, was to get such aid—which was taken as a matter of course—but how it was forthcoming supplied the only question. Mr. Liang Chi-chao, Minister of Finance, who called on me on the 4th of August, talked in favour of a big loan by the Consortium. With this he hoped that the United States would again associate itself. When he spoke of independent American loans, I called his attention to the difficulty of concluding them or of calling up the option under the Chicago loan, unless there were a parliament whose authority was recognized by the country. Shortly after this I saw the Acting President, General Feng. "China," he said—undoubtedly to tell me something pleasant, but also because all Chinese do prefer association with America—"China has followed the United States in the policy of declaring war upon Germany. Now will not the United States independently finance China? Or, if that is out of the question, then, surely America will join the Consortium since that is the only way the Chinese Government can be safely and effectively supported."
"The republican form of government," he vowed, "is now eternally secure in China." I could not but remember his previous monarchist leanings. The Acting President spoke of General Tuan. "I have a very cordial understanding with the Premier," he assured me.
I went to the Premier on the 21st of August. In this discussion the Chinese iron industry came up. The Premier asked: "Why not go ahead with the development of mining and iron manufacture? Create a national Chinese iron industry, and it will form the basis of a general loan for industrial purposes." He thought, at first, that the Chinese Ministry of Agriculture and Commerce should summon experts and start the enterprise. I told him about the enormous technical difficulties of such a project. Then he seemed to recognize that a contract with an experienced and powerful organization, which could be held responsible, would be more effective in establishing a national iron industry for China. "I am not sure about the ore deposits near Nanking," he added; "they may not be included in such coöperative enterprises."
I suspected that he was trying to get financial support from another source, and was leaving his hands free to make them a grant there. I put in a caveat against any grant of iron ores to foreign nationals. Americans had in the past been invariably informed that iron deposits could not be leased or granted to individuals because they had been reserved for national uses.
I visited General Tuan on August 22nd and found him more talkative, more anxious to discuss the general aspects of policies than ever before. "We must first of all establish the authority of the Central Government," he said; "this can be done only through a defeat of the opposition. My purpose is that military organization in China be made national and unified, in order that the peace of the country shall not at all times be upset by local military commanders. The military power thus unified I intend to take entirely out of politics and confine it to its specific military purposes. At present the military is used in factional and political disputes. When this is no longer possible, then we shall leave the public mind in civil life entirely free to settle all questions of the Constitution and of the public policy."
I believe the Premier was sincere in these views, and in his efforts to vindicate the authority of the National Government, but he thought only in terms of military authority. He did not realize what the organization of public opinion and of a civilian administration require. His opponents feared that a consolidated military power would be used by him, after all, to accomplish the reëstablishment of a military dictatorship, such as that of Yuan Shih-kai.
The personal wisdom and integrity of General Tuan commanded respect, but he was not fortunate in selecting his assistants. Both in Peking and in the provinces his immediate advisers gave him trouble. When he appointed General Fu Liang-tso governor of Hunan Province, he expected the ready settlement of all difficulties there; General Fu would know how to handle the situation. But the people of Hunan did not welcome General Fu. Soon his authority and that of the Central Government were questioned throughout that province. But the Premier never disavowed or deserted his representatives. He was loyal to them, which accounts for the strong personal influence which Tuan enjoyed.
The country could not be unified, of course, until railways were built, and representatives of the Chinese Government often approached me to ascertain Whether some action could not be taken in regard to the Hankow-Canton Railway, long delayed in construction. This trunk line would have joined the north and south. A trip from Peking to Canton by existing routes took from ten days to two weeks: by direct railway it should be possible to make it in two days. Not only the movement of passengers, but of mail and freight, would stimulate an intercourse that would be sure to overcome separatist tendencies. But China had entrusted the building of this railway to foreigners, who had played with the concession, had lost it, and, after reacquiring part of it, were now delaying its execution. Europe was preoccupied with the war. And now that China was herself entering the war, it seemed a prime need of national preparedness to have this comparatively short remaining gap in the communications of China filled out. Good friends of America among the officials—among them Mr. Pan Fu, Mr. T.C. Sun, the managing director of the Siems-Carey railway offices, and Mr. J.C. Ho—argued with me, as did their superiors, to have America lead in completing this essential highway of commerce.