China, on the whole, came out of the struggle with greatly increased prestige. She had tried conclusions with a first-class European power and had held her own. Incorrect conclusions as to the military strength of China were Increased prestige of China. consequently drawn, not merely by the Chinese themselves—which was excusable—but by European and even British authorities, who ought to have been better informed. War vessels were ordered by China both from England and Germany, and Admiral Lang, who had withdrawn his services while the war was going on, was re-engaged together with a number of British officers and instructors. The completion of the works at Port Arthur was taken in hand, and a beginning was made in the construction of forts at Wei-hai-wei as a second naval base. A new department was created for the control of naval affairs, at the head of which was placed Prince Chun, father of the emperor, who since the downfall of Prince Kung in 1884 had been taking a more and more prominent part in public affairs.
From 1885 to 1894 the political history of China does not call for extended notice. Two incidents, however, must be recorded, (1) the conclusion in 1886 of a convention with Great Britain, in which the Chinese government undertook to recognize British sovereignty in Burma, and (2) the temporary occupation of Port Hamilton by the British fleet (May 1885-February 1887). 1885-1894. In 1890 Admiral Lang resigned his command of the Chinese fleet. During a temporary absence of Lang’s colleague, Admiral Ting, the Chinese second in command, claimed the right to take charge—a claim which Admiral Lang naturally resented. The question was referred to Li Hung-Chang, who decided against Lang, whereupon the latter threw up his commission. From this point the fleet on which so much depended began to deteriorate. Superior officers again began to steal the men’s pays, the ships were starved, shells filled with charcoal instead of powder were supplied, accounts were cooked, and all the corruption and malfeasance that were rampant in the army crept back into the navy.
The year 1894 witnessed the outbreak of the war with Japan. In the spring, complications again arose with Japan over Korea, and hostilities began in July. The story of the war is told elsewhere (see [Chino-Japanese War]), and it is War with Japan, 1894. unnecessary here to recount the details of the decisive victory of Japan. A new power had arisen in the Far East, and when peace was signed by Li Hung-Chang at Shimonoseki on the 17th of April 1895 it meant the beginning of a new epoch. The terms included the cession of Liao-tung peninsula, then in actual occupation by the Japanese troops, the cession of Formosa, an indemnity of H. taels 200,000,000 (about £30,000,000) and various commercial privileges.
The signature of this treaty brought the European powers on the scene. It had been for some time the avowed ambition of Russia to obtain an ice-free port as an outlet to her Siberian possessions—an ambition which was considered by British statesmen as not unreasonable. It did not, therefore, at all suit her purposes to see the rising power of Japan commanding European intervention. the whole of the coast-line of Korea. Accordingly in the interval between the signature and the ratification of the treaty, invitations were addressed by Russia to the great powers to intervene with a view to its modification on the ground of the disturbance of the balance of power, and the menace to China which the occupation of Port Arthur by the Japanese would involve. France and Germany accepted the invitation, Great Britain declined. In the end the three powers brought such pressure to bear on Japan that she gave up the whole of her continental acquisitions, retaining only the island of Formosa. The indemnity was on the other hand increased by H. taels 30,000,000. For the time the integrity of China seemed to be preserved, and Russia, France and Germany could pose as her friends. Evidence was, however, soon forthcoming that Russia and France had not been disinterested in rescuing Chinese territory from the Japanese grasp. Russia now obtained the right to carry the Siberian railway across Chinese territory from Stryetensk to Vladivostok, thus avoiding a long détour, besides giving a grasp on northern Manchuria. France obtained, by a convention dated the 20th of June 1895, a rectification of frontier in the Mekong valley and certain railway and mining rights in Kiang-si and Yun-nan. Both powers obtained concessions of land at Hankow for the purposes of a settlement. Russia was also said to have negotiated a secret treaty, frequently described as the “Cassini Convention,” but more probably signed by Li Hung-Chang at Moscow, giving her the right in certain contingencies to Port Arthur, which was to be refortified with Russian assistance. And by way of further securing her hold, Russia guaranteed a 4% loan of £15,000,000 issued in Paris to enable China to pay off the first instalment of the Japanese indemnity.
The convention between France and China of the 20th of June 1895 brought China into sharp conflict with Great Britain. China, having by the Burma convention of 1886 agreed to recognize British sovereignty over Mekong valley dispute, 1895. Burma, her quondam feudatory, also agreed to a delimitation of boundaries at the proper time. Effect was given to this last stipulation by a subsequent convention concluded in London (1st of March 1894), which traced the boundary line from the Shan states on the west as far as the Mekong river on the east. In the Mekong valley there were two semi-independent native territories over which suzerainty had been claimed in times gone by both by the kings of Ava and by the Chinese emperors. These territories were named Meng Lun and Kiang Hung—the latter lying partly on one side and partly on the other of the Mekong river, south of the point where it issues from Chinese territory. The boundary line was so drawn as to leave both these territories to China, but it was stipulated that China should not alienate any portion of these territories to any other power without the previous consent of Great Britain. Yielding to French pressure, and regardless of the undertaking she had entered into with Great Britain, China, in the convention with France in June 1895, so drew the boundary line as to cede to France that portion of the territory of Kiang Hung which lay on the left bank of the Mekong. Compensation was demanded by Great Britain from China for this breach of faith, and at the same time negotiations were entered into with France. These resulted in a joint declaration by the governments of France and Great Britain, dated the 15th of January 1896, by which it was agreed as regards boundary that the Mekong from the point of its confluence with the Nam Huk northwards as far as the Chinese frontier should be the dividing line between the possessions or spheres of influence of the two powers. It was also agreed that any commercial privileges obtained by either power in Yun-nan or Sze-ch‘uen should be open to the subjects of the other. The negotiations with China resulted in a further agreement, dated the 4th of February 1897, whereby considerable modifications in favour of Great Britain were made in the Burma boundary drawn by the 1894 convention.
While Russia and France were profiting by what they were pleased to call the generosity of China, Germany alone had so far received no reward for her share in compelling the retrocession of Liao-tung; but, in November 1897, she Kiaochow, Port Arthur, Wei-hai-wei. proceeded to help herself by seizing the Bay of Kiaochow in the province of Shan-tung. The act was done ostensibly in order to compel satisfaction for the murder of two German missionaries. A cession was ultimately made by way of a lease for a term of ninety-nine years—Germany to have full territorial jurisdiction during the continuance of the lease, with liberty to erect fortifications, build docks, and exercise all the rights of sovereignty. In December the Russian fleet was sent to winter in Port Arthur, and though this was at first described as a temporary measure, its object was speedily disclosed by a request made, in January 1898, by the Russian ambassador in London that two British cruisers, then also anchored at Port Arthur, should be withdrawn “in order to avoid friction in the Russian sphere of influence.” They left shortly afterwards, and their departure in the circumstances was regarded as a blow to Great Britain’s prestige in the Far East. In March the Russian government peremptorily demanded a lease of Port Arthur and the adjoining anchorage of Talienwan—a demand which China could not resist without foreign support. After an acrimonious correspondence with the Russian government Great Britain acquiesced in the fait accompli. The Russian occupation of Port Arthur was immediately followed by a concession to build a line of railway from that point northwards to connect with the Siberian trunk line in north Manchuria. As a counterpoise to the growth of Russian influence in the north, Great Britain obtained a lease of Wei-hai-wei, and formally took possession of it on its evacuation by the Japanese troops in May 1898.
After much hesitation the Chinese government had at last resolved to permit the construction of railways with foreign capital. An influential official named Sheng Hsuan-hwai was appointed director-general of railways, and empowered to enter into negotiations with foreign capitalists for that purpose. A keen competition thereupon ensued between syndicates of different nationalities, and their claims being espoused by their various governments, an equally keen international rivalry was set up. Great Britain, though intimating her preference for the “open door” policy, meaning equal opportunity for “Open door,” and “spheres of influence.” all, yet found herself compelled to fall in with the general movement towards what became known as the “spheres of influence” policy, and claimed the Yangtsze valley as her particular sphere. This she did by the somewhat negative method of obtaining from the Chinese government a declaration that no part of the Yangtsze valley should be alienated to any foreign power. A more formal recognition of the claim, as far as railway enterprise was concerned, was embodied in an agreement (28th of April 1899) between Great Britain and Russia, and communicated to the Chinese government, whereby the Russian government agreed not to seek for any concessions within the Yangtsze valley, including all the provinces bordering on the great river, together with Cheh-kiang and Ho-nan, the British government entering into a similar undertaking in regard to the Chinese dominions north of the Great Wall.[50]
In 1899 Talienwan and Kiaochow were respectively thrown open by Russia and Germany to foreign trade, and, encouraged by these measures, the United States government initiated in September of the same year a correspondence with the great European powers and Japan, with a view to securing their definite adhesion to the “open door” policy. The British government gave an unqualified approval to the American proposal, and the replies of the other powers, though more guarded, were accepted at Washington as satisfactory. A further and more definite step towards securing the maintenance of the “open door” in China was the agreement concluded in October 1900 between the British and German governments. The signatories, by the first two articles, agreed to endeavour to keep the ports on the rivers and littoral free and open to international trade and economic activity, and to uphold this rule for all Chinese territory as far as (wo in the German counterpart) they could exercise influence; not to use the existing complications to obtain territorial advantages in Chinese dominions, and to seek to maintain undiminished the territorial condition of the Chinese empire. By a third article they reserved their right to come to a preliminary understanding for the protection of their interests in China, should any other power use those complications to obtain such territorial advantages under any form whatever. On the submission of the agreement to the powers interested, Austria, France, Italy and Japan accepted its principles without express reservation—Japan first obtaining assurances that she signed on the same footing as an original signatory. The United States accepted the first two articles, but expressed no opinion on the third. Russia construed the first as limited to ports actually open in regions where the two signatories exercise “their” influence, and favourably entertained it in that sense, ignoring the reference to other forms of economic activity. She fully accepted the second, and observed that in the contingency contemplated by the third, she would modify her attitude according to circumstances.
Meanwhile, negotiations carried on by the British minister at Peking during 1898 resulted in the grant of very important privileges to foreign commerce. The payment of the second instalment of the Japanese indemnity was becoming due, and it was much discussed how and on what terms China would be able to raise the amount. The Russian government, as has been stated, had made China a loan of the sum required for the first portion of the indemnity, viz. £15,000,000, taking a charge on the customs revenue as security. The British government was urged to make a like loan of £16,000,000 both as a matter of friendship to China and as a counterpoise to the Russian influence. An arrangement was come to accordingly, on very favourable terms financially to the Chinese, but at the last moment they drew back, being overawed, as they said, by the threatening attitude of Russia. Taking advantage of the position which this refusal gave him, the British minister obtained from the Tsung-Li-Yamen, besides the declaration as to the non-alienation of the Yangtsze valley above mentioned, an undertaking to throw the whole of the inland waterways open to steam traffic. The Chinese government at the same time undertook that the post of inspector-general of customs (then held by Sir Robert Hart) should always be held by an Englishman so long as the trade of Great Britain was greater than that of any other nation. Minor concessions were also made, but the opening of the waterways was by far the greatest advance that had been made since 1860.