For many centuries China had been a hermit nation, successfully resisting foreign influence and invasion; but gradually, on one pretext or another, she was compelled to open her ports, and Great Britain, Russia, and Germany had gained special advantages and exceptional privileges in portions of China, where, under the guise of "spheres of interest," they were exercising considerable control over an important part of that Empire. It seemed probable that not only would these nations absorb the trade of China, but that the Empire itself would be dismembered and divided among the powers. To prevent this, Secretary Hay advanced the so-called "open door" policy and successfully carried it out.
In September, 1899, he addressed communications to the Governments of Great Britain, Russia, Germany, Italy, and Japan, suggesting that, as he understood it to be the settled policy and purpose of those countries not to use any privileges which might be granted them in China as a means of excluding any commercial rival, and that freedom of trade for them in that ancient empire meant freedom of trade for all the world alike, he considered that the maintenance of this policy was alike urgently demanded by the commercial communities of these several nations, and that it was the only one which would improve existing conditions and extend their future operation. He further suggested that it was the desire of the United States Government that the interests of its citizens should not be prejudiced through exclusive treatment by any of the controlling powers within their respective spheres of interest in China, and that it hoped to retain there an open market for all the world's commerce, remove dangerous sources of international irritation, and promote administrative reform. Secretary Hay accordingly invited a declaration by each of them in regard to the treatment of foreign commerce in their spheres of interest. Without inconsiderable delay the Governments of Great Britain, Russia, Germany, Italy, and Japan replied to his circular note, giving cordial and full assurance of endorsement of the principles suggested by our Government. Thus was successfully begun the since famous "open door" policy in China.
But this great triumph in the interest of the freedom of the world's commerce was followed by the Boxer outbreak of 1900. The German Minister was murdered in the streets of Peking, the legations were attacked and in a state of siege for a month.
The Boxer outbreak was made the occasion of a joint international expedition for the relief of the diplomatic representatives and other foreigners whose lives were in peril. Congress was not in session, but on Secretary Hay's advice, there was despatched a division of the American Army composed of all arms of the service. This almost amounted to a declaration of war, or the waging of war without the consent of Congress. The Executive was justified, however, and did not hesitate to assume the responsibility.
In the midst of the intense excitement throughout the world, when the downfall of the Empire of China seemed almost certain, Secretary Hay, with the foresight which always distinguished his official acts, issued a circular note on July 3, 1900, to all the powers having interests in China, stating the position of the United States; that it would be our policy to find a solution which would bring permanent safety and peace to China, preserve its territorial and administrative entity, protect all rights guaranteed by treaty and international law, and safeguard for the world the principle of equal and impartial trade with all parts of the Chinese Empire. Secretary Hay's note gave notice to the world that the United States would not permit the dismemberment of China, and it was so in accord with the principles of justice that it met with the approval of all.
After the relief of the legations and the suppression of the Boxer troubles by the allied powers, there followed a long period of negotiation, and an enormous and exorbitant demand was made by the allies as an indemnity. So exorbitant was it as first that China probably never would have been able to pay. Secretary Hay constantly intervened to reduce the demands of the powers and cut down to a reasonable limit the enormous indemnity they were seeking to exact. Finally the protocol of 1901 was signed, imposing very heavy and humiliating burdens on China. It has been the province of the United States to alleviate these burdens, and we have only recently remitted a very large portion of the indemnity which was to have come to the United States.
Later, Secretary Hay negotiated a very favorable commercial treaty with China which further strengthened the "open door," gave increased privileges to our diplomatic and consular officers, and to our citizens in China, and opened new cities to international trade and residence.
One of Secretary Hay's last acts in the State Department was another diplomatic triumph in the interest of China. It had been apparent for some time that war between Russia and Japan was inevitable, and Mr. Hay realized that war might seriously impair the integrity of China and the benefits of the "open door" policy. Immediately after the war commenced, therefore, on February 10, 1904, Mr. Hay addressed to the Governments of Russia, Japan, and China, and to all other powers having spheres of influence in China, a circular note in which he said:
"It is the earnest desire of the Government of the United States that in the military operations which have begun between Russia and Japan, the neutrality of China, and in all practicable ways her administrative entity, shall be protected by both parties, and that the area of hostilities shall be localized and limited as much as possible, so that undue excitement and disturbance of the Chinese people may be prevented, and the least possible loss to the commerce and peaceful intercourse of the world may be occasioned."
Mr. Hay's proposition was commended by the world and was accepted by the neutral nations, and also by China, Russia, and Japan.