[46] Information as to what extent the expenses of the new army and navy are met by the central government is lacking.

[47] To meet the expenditure on interest and redemption of the indemnities for the Boxer outrages the Peking government required the provincial authorities to increase their annual remittances by taels 18,700,000 during the years 1902-1910.

[48] It must be remembered that the Haikwan tael is here indicated.

[49] See Morse’s Trade and Administration of the Chinese Empire, chap. ix.

[50] A supplementary exchange of notes of the same date excepted from the scope of this agreement the Shan-hai-kwan-Niu-chwang extension which had already been conceded to the Hongkong & Shanghai Bank.

[51] The religious aspect of the Boxer movement gave it strength. Its disciples believed that the spirits which defended China were incensed by the introduction of Western methods and ideals. Many of them believed themselves to be invulnerable to any Western weapon. (See Lord W. Cecil, Changing China, 1910, ch. i.)

[52] The diary of a Manchu noble printed in China under the Empress Dowager (1910) by J.O. Bland and E. Backhouse throws light on the subject. It was to Jung-Lu, father-in-law of Prince Chin, that the legations owed their escape from extermination.

[53] It was at this time (July 17th) that the intense anxiety of the civilized world with regard to the fate of the besieged reached its culminating point. Circumstantial accounts of the fall of the legations and the massacre of their inmates were circulated in Shanghai and found general credence. It was not till near the end of the month that an authentic message from the American minister proved these fears to be premature.

[54] In negotiating this agreement Lord Salisbury appears to have been largely influenced by the aggressive features of Russia’s action in North China, while Germany appears to have been actuated by a desire to forestall isolated action by Great Britain in the Yangtsze basin. In Germany the agreement was known as the Yangtsze Agreement. Great Britain held, however, that it applied equally to Manchuria.

[55] Liu Kun-yi died in 1902. In the same year died Tao-mu, the viceroy of Canton. In these men China lost two of her most capable and enlightened officials.