On the 15th of October, 1903 (October 28, N. S.) I presented to the Emperor a special report on the Manchurian question, in which I showed that, in order to avoid complications with China and a rupture with Japan, we must put an end to our military occupation of southern Manchuria, and confine our activity and our administrative supervision to the northern part of that territory. My report was, in part, as follows:

The Great Advisability of Evacuation

"If we do not touch the boundary of Korea, and do not place garrisons between that boundary and the railway, we shall really convince the Japanese that we have no intention of first taking Manchuria and then seizing Korea. In all probability, they will then confine themselves to the peaceful promotion of their interests in the peninsula, and will neither take possession of it with troops, nor greatly increase the strength of their army at home. This will relieve us of the necessity of strengthening our forces in the Far East, and of supporting the heavy burden of an armed peace—even should there be no war. If, on the other hand, we annex southern Manchuria, all the questions that now trouble two nations and threaten to bring about an armed conflict will assume a still more critical aspect. Our temporary occupation of certain points between the railway and Korea will become permanent; our attention will be more and more attracted to the Korean frontier; and our attitude will confirm the suspicion of the Japanese that Russia intends to seize the peninsula.

"That our occupation of southern Manchuria will lead to Japanese occupation of southern Korea there can be no doubt. Beyond that, all is dark. One thing, however, is certain, and that is that if Japan takes this step, she will be compelled to increase rapidly her military strength, and we, in turn, shall respond by enlarging our Far Eastern force. Thus two nations whose interests are so different that they would seem destined to live in peace will begin a contest in which each will try to surpass the other in military resources and power. And we Russians shall do this at the expense of our fighting readiness in the West; at the sacrifice of the interest of our native population; and for the sake of portions of Korea which, so far as Russia is concerned, have no serious importance. If, moreover, other Powers take part in this rivalry, the struggle for military supremacy is liable to change, at any moment, into a deadly conflict, which may not only retard, for a long time, the peaceful development of our Far Eastern possessions, but check the growth and progress of the whole Empire.

Japan a Dangerous and Warlike Enemy

"Even if we should defeat Japan on the mainland (in Korea and Manchuria) we could not destroy her, nor obtain decisive results, without carrying the war into her territory. That, of course, would not be impossible, but to invade a country where there is a warlike population of forty-seven millions, and where even the women participate in wars of national defence, would be a serious undertaking, even for a Power as mighty as Russia. And if we do not destroy Japan utterly—if we do not deprive her of the right and the power to maintain a navy—she will wait until we are engaged in war in the West, and will then avail herself of the opportunity to attack us, either alone, or in coöperation with our Western enemies.

"It must not be forgotten that Japan can not only put quickly into the field, in Korea or Manchuria, a well organized and well trained army of from 150,000 to 180,000 men, but can do this without drawing at all heavily upon her population. If we take the German ratio of regular troops to population, namely, one per cent, we shall see that Japan, with her forty-seven millions of people, can maintain a force of 400,000 soldiers in time of peace, and 1,000,000 in time of war. And we must bear in mind the fact that, even if we reduce this estimate by two thirds, Japan, in a comparatively short time, will be able to oppose us in Korea, and march into Manchuria, with a regular army of from 300,000 to 350,000 men. If we make it our aim to annex Manchuria, we shall be compelled to increase our military strength to such an extent that, with our Far Eastern force alone, we can withstand the Japanese attack in the annexed territory."

From the above lines it will be seen how seriously the War Department regarded such an antagonist as Japan, and how much anxiety it felt concerning possible complications with that Power on account of Korea. At the time when this report was presented, and later, in November, the negotiations that Admiral Alexeieff was carrying on with Japan not only made no progress, but became more critical, the Admiral still believing that to show a yielding disposition would only make matters worse.

Insignificance of Russia's Eastern Interests

Bearing in mind the clearly expressed will of the Emperor that all necessary measures should be taken to avoid war, and not expecting favorable results from Alexeieff's negotiations, I presented to His Majesty, on the 26th of November, 1903 (December 9, N. S.) a second report on the Manchurian question, in which I proposed that we return Port Arthur and the province of Kwang-tung to China, securing, in lieu thereof, certain special rights in the northern part of Manchuria. In substance, this proposition was that we admit the untimeliness of our attempt to get an outlet on the Pacific and abandon it altogether. The sacrifice might seem a grievous one to make, but I showed the necessity for it by presenting two important considerations. In the first place, by surrendering Port Arthur (which had been taken away from the Japanese) and by giving up southern Manchuria (with the Yalu enterprise), we should escape the danger of a rupture with Japan and China. In the second place, we should avoid the possibility of internal disturbances in European Russia. A war with Japan would be extremely unpopular, and would increase the feeling of dissatisfaction with the ruling authorities. My report was, in part, as follows:

"The economic interests of Russia in the Far East are extremely insignificant. We have as yet, thank God, no over-production in manufactures, because even our domestic markets are not yet glutted. There may be some export of articles from our factories and foundries, but it is largely due to artificial encouragement and will cease—or nearly cease—when such encouragement is withheld. Russia, therefore, has not yet grown up to the melancholy necessity of waging war in order to get markets for her products. As for our other interests in the Far East, the success or failure of a few coal or timber enterprises in Manchuria and Korea is not a matter of sufficient importance to make it worth while for Russia to run the risk of war on their account.

"The railway lines that we have built through Manchuria do not change the situation, and the hope that these lines will have world-wide importance, as avenues of international commerce, is not likely, in the near future, to be realized. Travelers, the mails, tea, and possibly some other merchandise, will go over them, but the great masses of heavy international freight which, alone, can give world-wide importance to a railway, will go by sea, simply because they cannot bear railway charges. Such is not the case, however, with local freight to supply local needs. This the roads—and especially the southern branch—will carry more and more, deriving from it most of their revenue, and, at the same time, stimulating the growth of the country, and, in southern Manchuria particularly, benefiting the Chinese population. But if we do not take special measures to direct even local freight to Dalny, that port is likely to suffer from the competition of Yinkow (New Chwang). Port Arthur has no value for Russia as the defence and terminus of a railway, unless that railway is part of an international transit route. The southern branch of the Eastern Chinese road has only—or chiefly—local importance, and, from an economic point of view, Russia does not need to protect it by means so costly as the fortifications of Port Arthur, a fleet of warships, and a garrison of 30,000 soldiers.

"It thus appears that the retention of a position of an aggressive character in Kwang-tung is no more supported by economic than it is by political and military considerations. What, then, are the aims that may involve us in war with Japan and China? Are such aims important enough to justify the great sacrifices that war will demand? The Russian people are powerful, and their faith in Divine Providence, as well as their devotion to their Tsar and their country, is unshaken. We may trust, therefore, that if Russia is destined to undergo the trial of war at the beginning of the twentieth century, she will come out of it with victory and glory. But she will have to make terrible sacrifices—sacrifices that may long retard the natural growth of the Empire.

"In the wars that we waged in the early years of the seventeenth, eighteenth, and nineteenth centuries, the enemy invaded our territory, and we fought for the existence of Russia—marched forth in defence of our country and died for faith, Tsar, and Fatherland. If, in the early years of the twentieth century, war breaks out as the result of controverted questions arising in the Far East, the Russian people and the Russian army will execute the will of their Monarch with as much devotion and self-sacrifice as ever, and will give up their lives and their property for the sake of attaining complete victory; but they will have no intelligent comprehension of the objects for which the war is waged. For that reason there will be no such exaltation of spirit—no such outburst of patriotism—as that which accompanied the wars that we fought either in self-defence or for objects dear to the hearts of the people.

"We are now living through a critical period. Internal enemies, aiming at the destruction of the dearest and most sacred foundations of our life, are invading even the ranks of our army. Large groups of the population have become dissatisfied, or mentally unsettled, and disorders of various sorts—mostly created by a revolutionary propaganda—are increasing in frequency. Cases in which troops have to be called out to deal with such disorders are much more common than they were even a short time ago. We must hope, however, that this evil has not yet taken deep root in Russian soil, and that by strict and wise measures it may be eradicated.

"If Russia were attacked from without, the people, with patriotic fervor, would undoubtedly repudiate the false teaching of the revolutionary propaganda, and show themselves as ready to answer the call of their revered Monarch, and to defend their Tsar and country, as they were in the early years of the eighteenth and particularly in the nineteenth century. If, however, they are asked to make great sacrifices in order to carry on a war whose objects are not clearly understood by them, the leaders of the anti-Government party will take advantage of the opportunity to spread sedition. Thus there will be introduced a new factor which, if we decide on war in the Far East, we must take into account.

"The sacrifices and dangers that we have experienced, or that we anticipate, as results of the position we have taken in the Far East, ought to be a warning to us when we dream of getting an outlet on the unfreezing waters of the Indian Ocean at Chahbar. It is already evident that the English are preparing to meet us there. The building of a railroad across the whole of Persia, and the establishment of a port at Chahbar, with fortifications, a fleet, etc., will simply be a repetition of our experience with the Eastern Chinese Railway and Port Arthur. In the place of Port Arthur, we shall have Chahbar, and instead of war with Japan, we shall have a still more unnecessary and still more terrible war with Great Britain.

"In view of the considerations above set forth, the questions arise: Ought we not to avoid the present danger at Port Arthur, as well as the future danger in Persia? Ought we not to return Kwang-tung, Port Arthur, and Dalny to China, give up the southern branch of the Eastern Chinese Railway, and get from China, in place of it, certain rights in northern Manchuria and a sum of, say, 250,000,000 rubles as reimbursement for expenses incurred by us in connection with the railway and Port Arthur?" Further on in my report I considered fully the advantages and disadvantages of such a decision, and set forth the principal advantages as follows: "(1) We shall escape the necessity of fighting Japan on account of Korea, and China on account of Mukden. (2) We shall be able to reëstablish friendly relations with both Japan and China. (3) We shall give peace and tranquillity, not only to Russia, but to the whole world."

Russia's Fatal Unpreparedness

Copies of this report were sent to the Minister of Foreign Affairs, the Minister of Finance, and Admiral Alexeieff. Unfortunately, my views were not approved, and meanwhile the negotiations with Japan dragged along and became more and more involved. The future historian, who will have access to all the documents, may be able, from study of them, to determine why the will of the Russian Monarch to avoid war with Japan was not carried into effect by his principal co-workers. At present, it is only possible to say, unconditionally, that although neither the Emperor nor Russia desired war, we did not succeed in escaping it. The reason for the failure of the negotiations is evidently to be found in our ignorance of Japan's readiness for war, and her determination to support her contentions with armed force. We ourselves were not ready to fight, and resolved that it should not come to fighting. We made demands, but we had no intention of using weapons to enforce them—and, it may be added, they were not worth going to war about. We always thought, moreover, that the question whether there should be war or peace depended upon us, and we wholly overlooked Japan's stubborn determination to enforce demands that had for her such vital importance, and also her reliance upon our military unreadiness. Thus the negotiations were carried on by the respective parties under unequal conditions.

Then, too, our position was made worse by the form that Admiral Alexeieff gave to the negotiations intrusted to him. References were made that offended Japanese pride, and the whole correspondence became strained and difficult as a result of the Admiral's unfamiliarity with diplomatic procedure and his lack of competent staff assistance. He proceeded, moreover, upon the mistaken assumption that, in such a negotiation, it was necessary to display inflexibility and tenacity. His idea was that one concession, if made, would inevitably lead to another, and that a yielding policy would be more likely, in the end, to bring about a rupture with Japan than a policy of firmness. On the 25th of January, 1904 (February 6, N. S.) diplomatic relations were broken off by the Japanese, and a few days later war began.

My opinions with regard to the relative importance of the tasks set before the War Department of Russia made me a convinced opponent of an active Asiatic policy.

1. Recognizing our military unreadiness on our western frontier, and taking into account also the urgent need of devoting our resources to the work of internal reorganization and reform, I thought that a rupture with Japan would be a national calamity, and I did everything in my power to prevent it. Throughout my long service in Asia, I was an advocate of an agreement with Great Britain there, and I was satisfied that there might also be a peaceable delimitation of spheres of influence in the Far East between Russia and Japan.

2. I regarded the building of the main line of the trans-Siberian railway through Manchuria as a mistake. The decision to adopt that route was made without my participation (I was then commander of the trans-Caspian territory); but it was contrary to the judgment of the War Department's representative in the Far East—General Dukhovski.

3. The occupation of Port Arthur took place before I became Minister of War, and I had nothing to do with it. I regard it as not only a mistake, but a fatal mistake. By thus acquiring, prematurely, an extremely inconvenient outlet on the Pacific, we broke up our good understanding with China and made an enemy of Japan.