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FOREIGN POLICY ASSOCIATION Information Service

VOL Ill-No. 16 OCTOBER 12, 1927

CONTENTS Page Japanese Policy Toward China Between 1895 and 1922 , ...... • 225 Washington Conference Marks Turning Point in Japanese Policy ...... 226 "Friendship Policy" Effects Change in Relations with China . • ...... • • . . . . 227 New Tanaka Government Outlines Separate Policy for Manchuria ...... • 229 Japanese Rights and Interests in Manchuria ...... 229 Early Competition Between Japan and Russia ...... 230 Influence of the Japanese South Manchuria Railway ...... 232 Japanese Relations with Chang Tso-lin . . . • ...... 235 Japanese Complaints against Military Rule in Manchuria ...... 236 Japanese Demands Arouse Opposition in China ...... 237 Text of Baron Tanaka's Statement at the Oriental Conference, July 7, 1927 239

Published bl·weekly by the Re..,..rch Department of tbe I'ORlDIGN POLICY ASSOCIATION, 18 E&st Uat St., New York, N . Y . Juna G. HcDoM&LD, Ollalrman; Subscription Rates: $5 .00 per year; to Jr. P. A. Members, f!.OO; Single Copies, 26c.

Recent Japanese Policy in China HE significance of Japan's new China that is, from about the time of the Sino­ T policy, which was outlined by Baron Japanese War until after the Washington Tanaka last July, several months after he Conference, Japanese policy seemed to be succeeded Premier Wakatsuki as head of the directed primarily toward securing a posi­ Japanese Government, was not generally tion of influence in China. This policy, which appreciated in the United States until a at times was conducted with little or no re­ short time ago when China voiced a strong gard for the susceptibilities of the Chinese, protest against certain Japanese demands was justified by Japanese on the ground of with respect to Manchuria. The anti-Japan­ checking Russia's advances, which threat­ ese agitation which followed served to em­ ened the peace of the Far East. The Treaty phasize the apparent departure of the of Shimonoseki, terminating the war with Tanaka government from the "Friendship China in 1895, gave to Japan the island of Policy" pursued by its predecessors since Formosa, the Pescadores Islands, the Liao­ the Washington Conference, at least so far tung Peninsula, and the right to hold Wei­ as Manchuria and Mongolia are concerned. haiwei until China had carried out the The new "Positive Policy" draws a sharp provisions of the treaty. Although immedi­ line between Manchuria and Mongolia and ately forced by the European powers to sur­ China proper; it reasserts Japan's special render the Liaotung Peninsula Japan re­ interests in the former area, and openly gained control of Port Arthur and Dairen announces Japan's intention to defend these as a result of her successful war against interests at all costs. Russia in 1905. In 1910 Japan annexed The importance of Tanaka's policy may be Korea. In 1915 she took advantage of gauged by a comparison with previous poli­ European preoccupation with the World cies and a survey of the nature and extent of War to serve upon China the famous Japan's interests in Manchuria. Twenty-One Demands which culminated in In the period between 1895 and 1922, the treaties and agreements of May, 1915. JAPANESE POLICY IN CHINA 22

Thus, following the example of the west­ EARLY RESULTS OF ern powers in building powerful armies and "FRIENDSHIP POLICY" navies and in protecting and extending na­ tional interests, if need be by force, Japan The effects of the "Friendship Policy" t secured a dominant position of influence on ward China began to appear shortly after th the Asiatic mainland. At the time of the Washington Conference. Within a year th Washington Conference Japan had succeeded Japanese Government withdrew its troop to the Russian rights in Manchuria and the from Hankow and Shantung, although sti German rights in Shantung, and, because of retaining them in Manchuria, and also with her close proximity to China, was probably drew its post offices in all parts of China ex in a stronger position than either Germany cept Manchuria. In the Washington treaty o or Russia had been. J apancse troops also February 4, 1922, Japan agreed to terminat occupied the port of Vladivostok, and the the lease of Tsingtao, which Germany ha northern part of Sakhalin. secured for ninety-nine years in 1898, and t hand over to China the Shantung railwa constructed by Germany. Ratification of th GENERAL PRINCIPLES ACCEPTED treaty by the two governments was affected AT WASHINGTON CONFERENCE in June, 1922. China was given fifteen years to pay for this road, the value of which was Despite vigorous criticism from a number fixed by a joint commission at 40,000,000 of influential Japanese newspapers, the Jap­ yen.* This settlement, according to Mr. John anese Government accepted President Hard­ E. Baker, adviser to the Chinese Ministry ing's invitation to the Washington Confer­ of Communications, secures better terms for ence in 1921. At the Conference Japan sub­ China than are to be found in any other scribed to the naval treaty and the several railway contract negotiated under the Re­ agreements relating to China. Article 1 public. of the treaty relating to principles and policies to be followed in matters concerning In April, 1923, the Japanese and American China laid down certain specific obligations Governments in an exchange of notes term­ which the signatory powers, including Japan, inated the Lansing-Ishii Agreement of No­ agreed to observe. It read as follows: vember 2, 1917, in which the United States had recognized Japan's "special interests in ARTICLE I. The Contracting Powers, other than China, agree: China, particularly in the part to which her possessions are contiguous." By 1924, Japan (1) To respect the sovereignty, the independ­ ence, and the territorial and administrative in­ had settled most of her difficulties with Rus­ tegrity of China; sia and had agreed to withdraw her troops (2) To provide the fullest and most unem­ from northern Sakhalin, in return for cer­ barrassed opportunity to China to develop and tain concessions. Following the example of maintain for herself an effective and stable the United States, the Japanese Government government; in March, 1923 turned over Japan's share (3) To use their influence for the purpose of the Boxer indemnity, and also the pay­ of effectually establishing and maintaining the ments which China must make on the Shan­ principle of equal opportunity for the commerce tung properties, to a special fund for Chinese and industry of all nations throughout the terri­ tory of China; educational and cultural work. The effort of the Japanese to regain (4) To refrain from taking advantage of con­ ditions in China in order to seek special rights China's good will was further demonstrated or privileges which would abridge the rights of during the famous "May 30 Affair" of 1925, subjects or citizens of friendly States, and from when foreign police opened fire on Chinese countenancing action inimical to the security of demonstrators in Shanghai who were pro­ such States. testing the shooting of a Chinese laborer by In carrying out these and other obliga­ Japanese cotton mill guards·. The affair led tions, Japan introduced a new policy toward quickly to a general strike and serious anti­ China, popularly known as the "Friendship foreign demonstrations throughout China. Policy." • A yen Is worth ar>Proxima tely 50 rents (Anlerlca.n). JAPANESE POLICY IN CHINA 227

Japan promptly took steps to appease the "Second-Promote the solidarity and Chinese and quietly paid an indemnity to the economic rapp1·ochement between the two family of the Chinese laborer who had been nations. killed. As a result of this policy of settling "Third-Entertain sympathetically and the affair "out of court," the Japanese es­ helpfully the just aspirations of the Chi­ caped the worst effects of the outburst of nese people and cooperate in efforts of Chinese opinion which was subsequently realization of such aspirations. directed against other foreigners. "Fourth-Maintain an attitude of pa­ JAPAN AVOIDS INTERVENTION tience and cooperation in the present situa­ IN CHINA'S REVOLUTION tion in China and at the same time protect Despite the fact that out of the 346,000 Japan's legitimate and essential rights and foreigners in China approximately 235,000 interests by all reasonable means at the are Japanese and that Japanese trade in 1926 disposal of the Government." predominated in China, the Japanese Govern­ Baron Shidehara's policy apparently made ment has until recently followed a policy no distinction between Manchuria and the of "non-intervention" toward the Chinese rest of China; and while professing the pol­ revolution. During the Nanking incident icy of strict non-intervention in Chinese of 1927, in which Japanese as well as other affairs, it reserved the right of protecting foreign property was destroyed, the Tokyo Japanese lives and property when immedi­ Government consistently opposed the idea of ately endangered. At the time this policy intervention. In this it was apparently sup­ was announced, however, the civil war in ported by a majority of the Japanese press. China was confined largely to the South, When a similar incident occurred at Nan­ where Japanese interests were less impor­ king in 1913 it led to a riot in Tokyo and tant than in the North. a strong demand for action. Commenting on this change, a well-known Japanese writer, BARON TANAKA CRITIC Yusuke Tsurumi, states, "But when the OF "FRIENDSHIP POLICY" trouble occurred in Nanking this year there The "Friendship Policy" of the Wakatsuki was no ripple on the surface of Tokyo's cabinet was severely criticized in April, 1927 political waters and no public protest over by Baron Tanaka, then the leader of the non-intervention. How account for this opposition party, the Seiyukai. Baron change? It was because in the first place the Tanaka, a member of the Choshu Clan, was psychology of the people had changed. In formerly a general in the Japanese Army, the second place, there was a strong sym­ a Vice-Chief of the General Staff and Min­ pathy for the legitimate aspirations of the ister of War in three recent Cabinets. He Chinese people embodied in the Nationalist became head of the Seiyukai party in 1925. movement. And in the third place the send­ In the course of his address he said: ing of troops into a foreign country was dis­ liked by the people after the experience of "Disturbances in China have gone from bad to worse and the conditions there threaten to pene­ the Siberian Expedition." trate into the zone where Japan has vested in­ The official attitude of the Japanese Gov­ terests... The national flag of Japan has been ernment toward the situation in China was trampled upon, and Japanese residents have met defined by Baron Shidehara, the Japanese the utmost humiliation. I do not understand the Foreign Minister, in an address to the Diet indifferent attitude the authorities take toward this. in January, 1927, in the course of which he "In the face of this fact the authorities con­ said: tinue to advocate policies of non-intervention... "Japan's policy covering all questions The disturbances in China have gone beyond the of relations between Japan and China may limit of mere domestic disputes, they endanger be summarized: the Far East, and threaten to affect the peace of the world ... Japan should take the initiative, "First-Respect the sovereignty and if necessary, in taking an effective step in co­ territorial integrity of China and scrupu­ operation with the Powers. We believe this will lously avoid all interference in her domes­ be inevitable."*

tic strife. •Japan Atlt•ertlser, April 17, 19~7. JAPANESE POLICY IN CHINA 228

NEW TANAKA GOVERNMENT Tsinan and points in between. Simultan­ OUTLINES POLICY TOWARD CHINA eously the Tanaka government denied any A few days later the Wakatsuki cabinet intention to interfere with the military oper­ went out of office and Baron Tanaka was ations of the northern or southern troops asked to form a new Government. In an­ and declared the measure was taken only for nouncing the formation of a cabinet, in which the protection of Japanese nationals in the he served in the double capacity of Premier area of hostilities. The statement concluded: and Foreign Minister, he declared; "The Japanese Government, therefore, de­ "We have long entertained profound sympathy clare that although they dispatched troops with the legitimate aspirations of the Chinese as an unavoidable measure of self-defence, people and are determined to help them to attain they have no intention whatever of keeping their end, taking into consideration the situation them for a prolonged period and the troops at home and abroad. But I consider that such aspirations could be attained in due order and by will be wholly withdrawn immediately the appropriate means... Moreover, I think that if the fear of danger to her residents in that region legitimate aspirations of the Chinese people are ceases to exist." fulfilled, they will have no wish to endanger the present relations between China and the Powers. Both the Peking Government and the ... In the matter of Communist activity in China, Nationalists vigorously protested to Japan Japan can hardly remain indifferent... This ac­ and demanded the immediate evacuation of tivity is a matter of extreme importance from the the troops. The official news agency of the viewpoint of the peace of the world and the Nanking Moderate Nationalists, moreover, happiness of mankind in general, and Japan is ready to cooperate with the Powers, after taking stated that the Japanese troops interfered into consideration the character of the particular with the advance of the southern forces problems involved, the appropriate time, and the through occupation of the entire railway proposed measures to be taken. . ."* zone from Tsingtao to Tsinan. The occupa­ This announcement called forth the warn­ tion quickly led to a southern boycott on ings of the Tokyo Asahi, the Osaka Asahi, Japanese goods. the Jiji Shimpo, the Tokyo Nichinichi, and the Osaka Mainichi, all of whom warned the JAPANESE PRESS CRITICAL OF government against a positive policy toward 1927 SHANTUNG EXPEDITION China. The Tokyo Asahi declared: "No one can foretell the future of China; never­ Criticism was also voiced in Japan and a theless it is advisable to let the Chinese them­ number of newspapers attacked the policy selves settle their own internal affairs. • . As of the Tanaka govenment. The Tokyo every word and action of Premier Tanaka is being Nichinichi, for example, declared that there closely watched by the Chinese, we hope the present administration will be extremely cautious was no "need to protect our residents in in executing its policy toward China." Tsinan. On the other hand, there is no doubt The Jiji Shimpo said: that we have lost much by the misunder­ "We sincerely hope that the new administra­ standing we have aroused." The Jiji stated tion will not adopt any radical change in its that "if the unsettled conditions of Tsinan policy toward China, neither resort to any rigid continue the Government should withdraw policy, as that is not the real purpose of the administration, we are sure." both residents and troops." Before the end of the month the new Tan­ Whether or not as a result of the Japanese aka government was confronted with an occupation, the Nationalist advance through issue which called for prompt decision. Dur­ Shantung soon collapsed. On August 30, ing the spring the Chinese Nationalist army, 1927, the Japanese Government ordered the under General Chiang Kai-shek, had been withdrawal of the inland forces on the moving northward from Nanking, and in ground that the failure of the Nationalist May it entered Shantung, where Japanese campaign had removed the risk of disorder interests are far more extensive than in the in Shantung. But in a statement issued at South. Tokyo acted without delay and dis­ the time of withdrawal, the Japanese Gov­ patched a force of about 2,000 men to Tsing­ ernment issued a warning that "in case peace tao, later sending 2,000 more inland to and order are disturbed in future, not only in Shantung, but in any part of China where •Ja11an. Advertiser.. April 22, 1927. JAPANESE POLICY IN CHINA 229

Japanese reside, and it is feared that their "would carry out measures suitable to the safety may be affected, the Japanese Govern­ occasion." Should disturbances arise en­ ment may be constrained to take such self­ dangering Japan's special interests, "Japan defensive steps as circumstances require." will take steps to protect them, no matter from what direction the menace comes."*

TAN AKA PROPOSES SEPARATE At the Gubernatorial Conference, on POLICY FOR MANCHURIA June 27, Tanaka declared that Japan was "resolved to carry out, either independent­ Meanwhile Baron Tanaka called an ly or in concert with other powers, a policy Oriental Conference, which met in Tokyo in which it deems necessary for the main­ June, 1927, and was attended by the lead­ tenance of peace in the Far East." Some ing officials in the War and Navy Min­ Japanese papers interpreted these various istries, the Commander-in-Chief of the statements to mean that the new govern­ Kwantung Army, the Governor of Kwan­ ment had jettisoned Baron Shidehara's tung, the Minister to Peking, and the Con­ "friendship" policy in favor of the "posi­ suls-general at Mukden and Shanghai. It tive" policy, the exact nature of which was was at the final session of this conference not known, but which would take a more that Baron Tanaka announced that Japan­ stern attitude toward China. ese policy must differ in respect to China The new government of Japan, it would proper and to Manchuria and Mongolia. appear, will not intervene in China's do­ While the references to China proper did mestic quarrels outside of Manchuria and not differ materially from previous state­ Mongolia unless these quarrels threaten ments, Baron Tanaka emphasized the fact to injure Japanese interests. But as the that Japan held a special position in Man­ intervention in Shantung shows, the Tana­ churia and Mongolia, "in connection with ka government will be much more ready her national defense, as well as for the ex­ to intervene to protect these interests than istence of the nation." It is henceforth to was the Shidehara government. be Japan's own responsibility "to keep the The Tanaka government, however, will region fit for safe living of Chinese and for­ apparently not tolerate any disturbance eigners by maintaining peace and order arising out of civil war in Manchuria be­ and developing economic conditions there­ cause of Japan's "special interests" in this in." As to the protection of Japan's special part of China. The nature of these in­ position in this area, the Government terests will now be discussed.

JAPANESE RIGHTS AND INTERESTS IN MANCHURIA Manchuria, comprising the Three Eastern three nations want and which three nations Provinces of China, has an area of 365,000 are struggling either to possess or to control. square miles, which is nearly as large as the To China, Manchuria means a buffer state states of Washington, Oregon, California against either Russia or Japan, a source of and Utah combined. While an accurate income, a relief for over-population, and a census has never been taken, it is estimated tremendous amount of what is so dear to that Manchuria has a population of about the Chinese--'face.' To Japan, Manchuria 25,000,000 Chinese and Manchus, together means the promise of raw materials for with about 600,000 Koreans, 100,000 Rus­ Japanese mills and factories and a market sians, and 190,000 Japanese. for Japan-made goods, a source of income Although Manchuria is a part of China, in other ways and the front line of defense Japan and Russia have bitterly contended against military aggression from the Asiatic over this territory and are vitally concerned continent. To Russia, Manchuria is the link in its future. A correspondent has recently connecting Moscow with Vladivostok, the stated, "Manchuria is the danger spot of possible route to an ice-free port in the East, Eastern Asia and is also one of Eastern a source of income and, at present, a chan- Asia's greatest promises. is a land which It •see Annex I for text of Tanaka Statement. r!ll'ffl"t'flftl"'..,.."·' ·' '

JAPANESE POLICY IN CHINA 230 nel for the propagation of Communist doc­ zone. The contract further provided that trine in China and Japan."* after eighty years from its completion the railway should revert to China without pay­ ment; after thirty-six years China would RUSSIA AND JAPAN COMPETE FOR CONTROL OF MANCHURIA have the option of buying the railroad upon payment in full of capital, debts and interest. This struggle for control of Manchuria be­ As the line was completed in 1903, this op­ gan in the final years of the nineteenth cen­ tion would fall due in 1939. * tury. Resentment was aroused in Japan Fearing that Russia was about to seize when Russia, supported by France and Ger­ political control not only of Manchuria but many, forced the Japanese Government to also of the independent state of Korea, thus surrender the Liaotung Peninsula won from threatening Japanese security, Japan em­ China in 1895. It was heightened in 1897 barked on the war of 1904-5 with Russia and 1898 when the European powers freely which resulted in a Japanese victory. In the appropriated for themselves strategic points Portsmouth Treaty, signed September 5, in China. Particular apprehension was 1905, the Russian Government, with the con­ created by Russia's apparent designs in Man­ sent of China, transferred to Japan (1) the churia. In 1898 Russia forced China to lease of Port Arthur and Dairen, and (2) grant her a twenty-five year lease on the that part of the Chinese Eastern Railway harbors of Port Arthur and Dairen, in extending between Chang-chun and Port which, according to the treaty of March 29, Arthur, which is now called the South Man­ Russia was given "the supreme civil ad­ churia Railway. ministration." The treaty also recognized Japan's para­ Two years earlier the Russian Govern­ mount interests in Korea, which Japan fin­ ment had become actively interested in the ally annexed in 1910, and ceded to Japan the construction of the Chinese Eastern Railway, southern part of the Russian island of Sak­ which offered the advantage of a direct halin, off the eastern coast of Siberia. route across Manchuria from Chita, a point An additional article of the treaty pro­ on the main line of the Trans-Siberian Rail­ vided that Russia and Japan had the right way, to Vladivostok at the eastern end of to maintain guards to protect their respec­ the system. In 1896, the Chinese Govern­ tive railway lines in Manchuria. The num­ ment granted the Russo-Chinese Bank, which ber of such guards was not to exceed fifteen had been chartered by the Russian Govern­ per kilometer and was to be fixed by agree­ ment the year before, a concession to build ment between Russia and Japan. the road across Chinese territory. A Rus­ sian company was formed actually to build On December 22, 1905, China and Japan and operate the road. Under the terms of concluded a treaty in which China agreed the contract between the bank and the to the transfer of the above Russian inter­ Chinese Government the company was given ests to Japan. In an additional agreement, the right to acquire not only land necessary Japan agreed to withdraw her guards along for the construction of the line, but also the railway simultaneously with the with­ lands in the vicinity of the line for providing drawal of Russian guards. While Chang sandstone, lime and other materials. Fur­ Tso-lin obliged the Russian guards to with­ ther provisions gave the company "the abso­ draw several years ago, the Japanese guards lute and exclusive right of administration remain to the present time. In an alleged of these lands" and the right to erect build­ secret protocol to the 1905 treaty, China is ings of all sorts. Although China agreed to stated to have promised not to construct any be responsible for the protection of the rail­ main line in the neighborhood and parallel way and its employees, the company assumed to the South Manchuria Railway or any the right to employ its own police for the branch line which might be prejudicial to maintenance of order within the railway the railway. •see "The Chinese Eastern R a tl wny," In/ ormation Bcrv-iccJ •F. H. Hedges, "l1a.nchurln. an Empire," T J'ans·Paciftc., Janu­ Yol. II, No. 1. a nd Mac M urray, mrreatiE'B a nd Agreementa ary 16, 1927. with n nd Con cerning C'h ina," p. 1222. JAPANESE POLICY IN CHINA 231

...... _ J~ ?'o.ilwa.ys __ Otheto 1'0Llway.s _ 111111111111 Projected l'ailway-5

H CHIHLI

I

Pre!>ared by the Ford(J!I Polley Association. RAILWAY MAP OF MANCHURIA

Japan's position in South Manchuria to­ extension of the lease of the Kwantung area day is based on the lease of Port Arthur and to 1997 and of her rights in the South Man­ Dairen, called the Kwantung Leased Area, churia Railway to 2002, or a period of 99 and control of the South Manchuria Railway. years. This agreement also abrogated China's In the agreements of May, 1915, following right to recapture the South Manchuria the Twenty-One Demands, Japan secured an Railway in 1939, and granted Japanese JAPANESE POLICY IN CHINA 232 the right to trade and lease land for commer­ fused to grant such leases to Japanese in the cial and agricultural purposes in South Man­ interior of Manchuria on the ground that the churia-a right which foreigners generally treaty is invalid. do not enjoy elsewhere in China. It was also By virtue of the rights which it inherited agreed that Japanese could prospect and from Russia, Japan exercises jurisdiction open mines in certain parts of South Man­ over (1) 1,300 square miles in the leased churia, and that if foreign advisers on territory of the Kwantung peninsula, (2) political, financial, military, or police matters 100 square miles in the South Manchuria were to be employed in South Manchuria, Railway Zone. The Leased Territory is Japanese should be employed first. If China under the jurisdiction of a Japanese civil required foreign capital to build railways in governor, who also exercises a certain South Manchuria and Eastern Inner Mon­ authority over the Railway Zone. Within golia, she should negotiate with Japanese the Railway Zone the company has charge capitalists first. of a number of schools, laboratories, hos­ At the Washington Conference the Chinese pitals and agricultural experimental stations. delegation asked that the treaties of May 25, 1915, be reconsidered and cancelled. The THE JAPAN ESE SOUTH Japanese delegation replied that "if it should MANCHURIA RAILWAY once be recognized that rights solemnly The most powerful enterprise in Man­ granted by treaty may be revoked at any churia is the South Manchuria Railway, time on the ground that they were conceded one-half of the stock of which is held by against the spontaneous w:m of the grantor, the Japanese Government which guarantees an exceedingly dangerous precedent will be to this road an annual profit of 6 per cent established, with far-reaching consequences on the paid-up capital for a period of fifteen upon the stability of the existing interna­ years. Between 1907 and 1926 the annual tional relations in Asia, in Europe and else­ tonnage transported increased from 1,486,- where." Nevertheless the Japanese delega­ 434 tons to 16,253,250 tons, while receipts tion agreed to throw open to the joint activity jumped from 9,768,887 yen to 106,491,- of the international financial consortium the 136 yen. In 1924-1925 the railway showed right of option granted exclusively in favor a profit of more than 34,000,000 yen, and it of Japanese capital with regard to loans for has paid a dividend of 10 per cent for the the construction of railways in South Man­ last four years. It has assisted the Chinese churia and Eastern Inner Mongolia. It fur­ Government, either through loans or by ther stated that Japan had no intention of actual construction, in the building of three insisting on her preferential rights in regard lines in Manchuria which act as feeders to to Japanese advisers in Manchuria. The the main South Manchuria line. The rails Japanese Government also withdrew the used in Manchuria construction are pur­ right to negotiate in the future in regard to chased from the United States Steel Corpor­ Group V of the Twenty-One Demands. ation. It is an interesting fact that over a Thus while the Japanese surrendered their third of China's railway mileage is found in rights in Shantung, they now declined to Manchuria. The South Manchuria Company surrender their rights in the leased area or owns and operates 686 miles of railway in over the railway in Manchuria. On March South Manchuria and it operates the 1,153 10, 1923, the Chinese Government sent a note miles of State railways in Korea. It carries to Japan stating that the treaties of 1915 on a large number of other activities, such were null and void, and that the expiration as the operation of harbors, coal mines, steel, of the lease of Port Arthur and Dairen, electric and gas works, and a chain of hotels. granted Russia in 1898 for 25 years, was In 1925-1926 it expended 4,419,000 yen on near at hand. The Japanese Government hospitals and 2,445,580 yen on schools for declined to discuss the question and reas­ the inhabitants of the Railway Zone. serted that the treaties remained in force. The South Manchuria Railway employs The Chinese Government, despite the leasing nearly 10,000 officials and 29,000 employees, provisions in the 1915 treaty, has so far re- or a total of nearly 39,000 of whom mor JAPANESE POLICY IN CHINA 233

than 16,000 are Chinese. In addition, it em­ Industrial development in Manchuria has ploys 13,000 day laborers. partly depended upon labor from other parts of China. It is estimated that about 30 per ECONOMIC IMPORTANCE cent of the labor employed in Manchuria is OF MANCHURIA "alien." Much of this has been seasonal in Largely as a result of the transportation nature, between 300,000 and 400,000 labor­ facilities afforded by the South Manchuria ers coming to Manchuria from the over­ Railway, South Manchuria exported 299,- populated provinces of Shantung and Chihli 506,287 taels of products in 1926 and im­ at the harvest season. A growing number ported 248,134,219 taels, or a total trade of of these, however, are taking up their per­ 547,640,506 taels.* Next to Shanghai, Dai­ manent residence in Manchuria partly be­ ren is the most important port in China. cause of disordered conditions at home. Moreover, the number of immigrants has The total trade of China in 1926 was near­ rapidly increased-it has been predicted that ly 1,988,000,000 taels. In other words, South a million Chinese would enter Manchuria Manchuria, a territory having only 4.5 per in 1927.* cent of the total population of China, has over 27 per cent of the trade. In 1926 about SOVIET INFLUENCE IN 71 per cent of South Manchuria's trade was THE FAR EAST with Japan.t The trade of South Manchuria increased In the first few years following the estab­ from 395,263,204 taels in 1923 to 434,790,403 lishment of the Soviet Government in Mos­ taels in 1924; in 1924 it decreased to 395,- cow, it seemed that Russia's power in the 767,619 taels; but increased in 1925 and Orient, including Manchuria, was on the again in 1926. In the latter year, it stood wane. Allied troops were landed in Siberia ; at 547,640,506. The principal export of a Far Eastern Republic was erected on Manchuria is the soy bean which is used in Siberian soil, and inter-allied control was a soup eaten by the majority of the Japanese established for a time over the Chinese East­ three times a day. A bean cake, made from ern Railway. In 1919-20 the Soviet Govern­ the soy bean, is used as a fertilizer for the ment informed China that it would surrender rice fields of Japan. This product, coming all of the special rights which Russia had chiefly from Manchuria, is regarded along enjoyed, in company with other powers, with rice as a fundamental food in the diet under the "unequal treaty" regime. But of the Japanese people. this spirit of renunciation was short-lived. While Russia did agree to surrender her Within the Kwantung Leased Area and the former treaty rights in the treaty of May South Manchuria Railway Zone the Japanese 31, 1924, she insisted on retaining a large have maintained an orderly and efficient ad­ degree of control over the Chinese Eastern ministration. Partly as the result of their Railway, which traverses northern Man­ efforts, the population of Dairen has in­ churia. Under the old regime, the road was creased from 18,000 in 1906 to 201,774 in governed by a Board of Directors of nine 1926 of whom 123,146 are Chinese. It is Russians and Chinese. But the 1924 treaty estimated that while the Chinese population provided that the road should have a Rus­ , in Manchuria has about doubled during the sian manager and a Board of Directors half past twenty years, it has increased more ' Russian. and half Chinese. As a result of than fourteen fold within the Railway Zone. this agreement Russia's control over this Apparently the Chinese have taken up their important railway was partially restored. residence in this Japanese zone because of As late as August, 1927, there were 15 000 the fact that, compared with other parts of Russians and 6,000 Chinese employed or: the China, more security prevails and greater staff of the "C. E. R.".t opportunities for employment exist. Likewise, Russia attempted to extend her 'Trade Return oJ Nortl• China, 1926, Vol. I. Ma.nchtlrla., Research Office, Department of Welfare, Research a.nd Foreign influence in Outer Mongolia-a territory ly- omces, S. M. R. Co., June, 1927. p. 3. The export figure In­ dud~• re-exports. A tael ts worth about 76 centa (American). •c. ·w. Young, "Chinese Labor Jl11gra.tlon to Manchuria," Chinese Bconmnic Jol'rnal., July, 1927. tThe coast trade Is not Included In the toto.! trade but the trade of Korea. Is Included with that ot Japan. ' tManchuna Dailv News, August s, 1927. JAPANESE POLICY IN CHINA 234

ing west of Manchuria and bordering on the ager of the "C. E. R.". Following an ulti­ Siberian frontier, over which the Chinese matum from the Russian Government, the have claimed sovereignty for 200 years. In manager was released. The Russians were 1921, Soviet troops occupied Urga, a leading also accused of backing Feng Yu-hsiang, the city in Outer Mongolia, and organized a Mon­ "Christian" general, in the hope that he golian government in virtual independence would overthrow Chang Tso-lin. In this of China proper. In the same year Russia struggle over the Chinese Eastern Railway, and Mongolia signed a secret treaty which Chang, it is agreed by most observers, is is supposed to have recognized Mongolia's proving to be the winner. Department after independence. In the 1921! treaty, surrender­ department of the railway's activities has ing her special rights in China, Russia rec­ been taken away from Russia and placed ognized that Outer Mongolia "was an in­ under Chinese control, and even important tegral part of China." Despite this promise Russian officials, it is understood, have come the Outer Mongolia government is organized under Chang's influence. In August, 1927, on Soviet lines and is supported by Soviet the Chinese Eastern Railway, which had subsidies. The China Year Book, 1926, states hitherto deposited its receipts with the Dal­ that Outer Mongolia is in fact no more than bank at Harbin, agreed to deposit half of one of the autonomous provinces of the these receipts, which for 1926 amounted to Soviet domain. $8,000,000, with the Chinese bank. The Chi­ nese have also appropriated for their own RUSSIA ENCOUNTERS use the fleet of river boats on the Sungari CHANG TSO-LIN which belonged to the railway. Chang's attitude toward the Russians generally is In her efforts to extend her influence in demonstrated by his periodic execution of Manchuria, Soviet Russia soon found a Communists and by his raid of the Soviet worthy opponent in the person of Chang Embassy in Peking in April, 1927. Tso-lin, the war lord who has ruled Man­ churia since 1918 and who today dominates the Peking government. Chang steadfastly RAILWAY RIVALRY BETWEEN refused to acknowledge the settlement of RUSSIA AND JAPAN Manchurian questions reached by the Pek­ ing and Moscow governments in the treaty Rivalry has also existed between the Rus­ of May, 1924, and forced Russia to nego­ sians and the Japanese, particularly in re­ tiate a separate agreement at Mukden gard to the Chinese Eastern and the South in September. Apparently Russia is the only Manchuria railways. Both lines had been government which has signed a separate built by the Russo-Asiatic Bank as a part treaty with the Manchurian war lord. of a single transport system, and both lines Despite this agreement, Chang has come into were broad gauge. Following the cession of frequent conflict with the Russians. He has the South Manchuria line to Japan, the Jap­ hampered their control of the Chinese East­ anese tore up the broad gauge track and ern Railway and Chinese officials have taken laid a standard gauge. The object in this over the administration of the City of Har­ change was strategic; it was to prevent the bin, formerly governed by Russian authori­ South Manchuria Railway from being of ties. It is alleged that the Russians helped military use to Russia in time of war against to finance the Kuo Sung-lin revolt against Japan. But the effect of this change was Chang in 1925. Their attitude toward also to do away with the possibility of run­ Chang was illustrated during this revolt by ning through trains over both lines from the refusal of the Chinese Eastern Railway inland points in Siberia to Dairen and Port to transport reinforcements without receiv­ Arthur. Despite this difference in gauge, ing cash payment in advance. After over­ many shippers have found it profitable to coming this obstacle by moving the troops ship their goods from Harbin to Changchun over a newly constructed "feeder" line to the and then trans-ship them to South Man­ South Manchuria Railway, Chang retaliated churia Railway points. In fact, 60 per c~nt by ordering the arrest of the Russian man- of the traffic of the latter railway comes from JAPANESE POLICY IN CHINA 235 alien lines; and 40 per cent of this amount however, that the South Manchuria Railway comes from the Chinese Eastern Railway. is opposed to the completion of the road to Kanei on the ground that it will divert traffic When the Russians regained control of the from Dairen. Chinese Eastern Railway in 1924, a traffic war ensued between the two companies. But JAPANESE RELATIONS so disastrous did it prove to the mutual in­ WITH CHANG TSO-LIN terests of each, that a rate agreement was In so far as Chang Tso-lin has maintained made to the effect that 55 per cent of the order throughout Manchuria and has op­ eastbound traffic of the Trans-Siberian Rail­ posed the Russian advance, he has won the way should be diverted to Harbin toward sympathy of Japan. But when he has been the South Manchuria lines, while the re­ unable to maintain order in areas where maining 45 per cent should continue over Japanese interests are important, the Japan­ the Chinese Eastern Railway to Vladivostok. ese Government has not hesitated to inter­ Despite this agreement considerable feel­ vene. In December, 1925, General Kuo Sung­ ing has been kindled between Russia and lin staged a revolt in which he almost routed Japan by the construction of two branch Chang who was obliged to retire within the lines in Manchuria which may vitally affect walled city of Mukden. After some discus­ the Chinese Eastern from the economic and sion during which the Military Staff urged strategic standpoint. The first of these action, the Japanese cabinet suddenly de­ branches connects the city of Taonan with cided to rush troops from Korea to the Man­ Tsitsihar, a town lying eighteen miles north churian garrison, then depleted to half its of the Chinese Eastern Railway. Nominally normal strength of 8,000 men. The Govern­ the Taonan line is Chinese, but it has been ment also announced on December 16, 1925, constructed by the South Manchuria com­ that it would not permit any fighting within pany at a cost of 12,000,000 yen. For a time a neutral zone extending six miles on each the progress of the road was blocked by the side of the railway. Morally strengthened protest of the Soviet Government that it in­ by the increase of Japanese troops and the vaded Northern Manchuria, a sphere in establishment of this neutral area, General which it claimed Russia had a preferential Chang rallied his forces and defeated Kuo, position. In reply, Japan stated that Russia who when captured was decapitated. Fol­ had surrendered all special privileges in lowing this defeat, the Japanese Foreign China and that Japan was entitled to build Office issued a statement that "there is every the road under the Open Door principle. reason to believe that conditions will soon The Tsitsihar extension is of strategic im­ be normal" and that there is "no further portance inasmuch as it may enable the necessity for Japan's holding a six-mile zone Japanese to cut off Russian access to the sea of neutrality along the South Manchuria in time of war. It also drains the valuable Railway, since there is no longer any oppo­ produce center of Anta. sition to Chang's authority and power to be In October, 1925, the South Manchuria expected." Railway signed an agreement with the Chin­ Sometime after his victory over Kuo, ese Government providing for the construc­ Chang is reported to have publicly thanked tion of a second extension, from Kirin to the Japanese for their assistance. A Jap­ Tonghua, a distance of 60 miles. The J ap­ anese writer, Dr. Washio, also wrote: anese Government apparently favors the ex­ "Whenever Japan sends troops to China tension of this line to Kainei, a town near they operate, deliberately or not, in favor the Korean border. Kainei is already linked of Chang Tso-lin, and Chinese civil war by rail to the Korean seaport of Seishin. being more of a political campaign than a When this Kirin-Kainei link is completed, military engagement, the prestige of J ap­ the Japanese will have established complete anese troops exerts an influence out of pro­ rail communication from Harbin to the sea, portion to the number of troops that are which will be two days shorter to Japan actually sent.... At the time of Kuo Sung­ than by way of Dairen. It is understood, lin's revolt the presence of a couple of JAPANESE POLICY IN CHINA 236 thousand of Japanese soldiers made it pos­ Manchuria, dissatisfied with the existing sible, accidentally or not, to save the day economic conditions. The average annual for Chang Tso-lin ... The idea that Man­ rate of increase in the number of Japanese churia has been solidly under Chang's in Manchuria for the last three years has domination is a fiction. Without the pres­ been only 3.2 per cent; and out of 125 tige of the Japanese cooperation he would Japanese firms publishing accounts for the have been ousted long ago by internal first half of 1927, 53 showed a loss, while rivals."* only 37 declared a dividend.t On the other hand, Baron Shidehara, then Japanese Foreign Minister, denied JAPANESE COMPLAINTS the statement that the Japanese had fa­ AGAINST MILITARY RULE vored Chang. In an address to the Diet in January, 1926, he stated that: "We de­ Merchants complained that, despite some plore these unfounded, undeserved accusa­ increase in trade, profits were checked by tions, and in denying them categorically, the dead-weight of Chang's military ex­ we are confident that history will be the penditure and by his progressive inflation final judge of our clear conscience . . . It of the local currency-the fengpiao. These is a well known fact that Japan possesses conditions unsettled trade while Chang's essential rights and interests, both cor­ requisitions further reduced the purchas­ poreal and incorporeal, in the region of ing power of the population. Many Japan­ Manchuria and Mongolia. Of such rights ese firms have not, moreover, recovered and interests, those that have taken a tang­ from the financial slump experienced in ible shape, and are liable to destruction by 1920. Their latest grievance has arisen acts of wa1·, are now mainly to be found out of the imposition of new taxes by along the line of the South Manchuria Rail­ Chang. The first of these taxes, called way. In order to protect them from de­ the shusho zei, was levied on Japanese struction we have been constrained to make traders in the Railway Zone in which necessary provision, which, we believe, has Japanese jurisdiction prevails. This was a duly accomplished its end. With regard tax on goods upon which the Japanese had to our rights and interests of an immaterial already paid a duty at the port of entry. kind, they did not seem likely to be af­ Hitherto the Chinese had issued certificates fected by the war, and we are satisfied for such goods, exempting them from fur­ that they have in fact remained entirely ther payment at "Open Ports" inland. The unaffected. Japanese claim that this is really a likin tax. "No doubt, the complete tranquillity of While the Japanese have recently succeeded the whole region of the Three Provinces, in getting some goods into Mukden without undisturbed by any scourge of war, is paying this tax, the Chinese through fear of highly to be desired, in the interest of the punishment decline to buy any goods not native population as well as Japanese resi­ having a stamp tax. Following the example dents. It is, however, a responsibility that of the Nanking government, Chang has also properly rests upon China. Assumption started to collect the taxes envisaged by the of that responsibility by Japan without just Washington Conference treaty, which were cause would be manifestly inconsistent not to go into effect until after an agreement with the fundamental conception of exist­ of the powers, which the Customs Confer­ ing international relations, with the basic ence in China failed to consummate. principles of the Washington treaties, and with repeated declarations of the Japanese In June, 1927, the Dail·en Chamber of Government."t Commerce peti ~ioned the Tokyo government to establish a colonial department, stating This cautious statement did not, how­ that "Japan's colonial administration is at ever, appeal to the Japanese residents in low ebb," and that the policies of Japan in

•"The Far Eastern Conference,'" Trans-Paeiftc_. July 9, Manchuria were "wanting in thoroughness 1927, p. 6. tTran.s-Paciftc, January 30, 1926, p. 15. tMancllurla Dail11 News, July 25, 1927. JAPANESE POLICY IN CHINA 237 and effectiveness." A mass meeting of Jap­ Following these statements it was reported anese merchants in Mukden also protested that the government would confer certain against the "practical bankruptcy of the police and taxing powers upon the South Mukden government" (under Chang Tso­ Manchuria Railway within the Railway lin), which had "bled the Chinese white and Zone and that it would increase the powers paralyzed Sino-Japanese trade." of the president of the railway. In order to attract Japanese enterprises RESULTS OF ORIENTAL to Manchuria and to stabilize currency, the CONFERENCE, JUNE, 1927 government is considering the establishment The Oriental Conference, convened by of a Central Bank, which would presumably Baron Tanaka, in June-July, 1927, care­ be a joint Sino-Japanese affair. It is also fully considered these complaints. In the considering the establishment of a Mon­ absence of Baron Tanaka at the session of golia Development Company. July 1, Mr. Mori, Parliamentary Under­ Secretary for Foreign Affairs, stated, ac­ JAPAN ESE DEMANDS WITH cording to the Osaka Asahi, "In a sense RESPECT TO MANCHURIA Japan's economic development in that ter­ ritory [Manchuria] is now at a standstill After the conclusion of the Oriental and the main cause of this deplorable state Conference, the Japanese Government de­ of things may be sought in the lack of a cided upon four demands which Mr. Yoshida, fixed Manchuria and Mongolia policy. In­ Consul-general at Mukden, conveyed to the asmuch as an unsettled political situation Civil Governor of Fengtien province upon his in Manchuria has been responsible in some return and which the Japanese Minister con­ measure for Japan's failure to pursue a veyed to the Government at Peking. These settled policy unflinchingly in the past, it covered the following points: is desirable that efforts should be made to (1) That the Chinese Government secure political stability in Manchuria. In should grant land leases to Japanese as other words Manchuria must be made secure provided in the treaty of 1915. from the political unrest which is almost (2) That construction of the two Chi­ chronic in China ... " At the end of the ese railway lines, parallel to the South Conference, as already stated, Baron Ta­ Manchuria line (Japanese) should be naka declared that henceforth the Japan­ abandoned and that China should not ese Government would follow a policy in construct any parallel line in the future. Manchuria and Mongolia distinct from that in China proper and that it would not per­ (3) That the Chinese authorities should mit revolution or disorder in the former quickly agree to the extension of the Kir­ territory to disturb Japan's interests. in-Hoinyung line. Evidence of this "positive policy" was (4) That Japan should be permitted to soon given in the removal of the presi'dent open a new consulate immediately at Lin­ of the South Manchuria Railway and the kiang, a town near the Korean border appointment of Mr. Yamamoto, secretary­ where many Korean malcontents reside. general of the Seiyukai party, who had been, One of the two Chinese railways men- according to the Osaka Asahi, a confirmed tioned in (2) above extends from Takushan advocate of the "positive policy." Mr. Yama­ on the Peking-Mukden railway to Payintala, moto is reported to have expressed dissatis­ paralleling the main South Manchurian faction with the inclination of the Company route. Another line, a hundred miles of "to attach more more importance to business which is already constructed, parallels the profits than the Company's innate mission."* South Manchuria betweeP. Kirin and Hailung­ After referring to Japanese sacrifices in cheng. Invoking the alleged secret protocol Manchuria, he is also quoted as saying,­ of 1905, the Japanese Government has re­ "The Railway Company has a more impor­ peatedly protested to the Chinese Govern­ tant mission than a merely economic one." ment that the construction of these roads is

•TI•e M anchuria Daily Ncwa, July 20, 1927. illegal. But the Chinese Government has JAPANESE POLICY IN CHINA 238 nevertheless proceeded with the construction, have been affected by the nationalist doc­ which is being carried on by Chinese funds trines from the south is growing. and Chinese engineers. Whether or not It is understood that Chang is irritated be­ these roads will be administered with enough cause the Japanese Government, in compli­ efficiency to compete with the South Man­ ance with an international understanding of churia Railway remains to be seen. The 1919, has placed an embargo on the export Chinese motive in constructing these lines of arms. seems to be partly economic and partly Rumors have been frequent during the past political. Doubtless they believe that the few months that the Japanese Government, establishment of roads, entirely free from out of patience with Chang Tso-lin's dup­ Japanese control, would strengthen Chinese licity, is attempting to bring about an under­ authority over Manchuria. By means of standing with the Nationalists in the south. these roads, which will link the provincial Dr. C. C. Wu, the Foreign Minister of the capitals of Mukden, Kirin and Tsitsihar, Nanking government, expressing sympathy Chang Tso-lin will be able to transport with Japan's position, recently declared that troops without regard to the wishes of the "the immediate return of the South Man­ Russians or Japanese. churia Railway and the Kwantung conces­ Railway building, it appears, has also sion is impossible in reality and these ques­ proved profitable to the Chinese generals. It tions must find their solution in the fixing is stated that the officials buy up in advance of a definite time for Japan to return them." the land which the railway will traverse, He added, "We understand Japan's situa­ and then lay the road bed a mile or two tion: that she is in great need of raw ma­ from the edge of the towns which it is terials and an outlet for her population, and designed to serve. When the railway is con­ in this connection we intend to conform to structed the intervening land, now held by Japan's proposals." In some quarters this officials, greatly increases in value. statement has been interpreted to mean that Nanking would bow to Japan's aspirations ANTI-JAPAN ESE in Manchuria in return for Japanese aid in AGITATION establishing Nationalist control throughout the whole of China proper. When news of the Oriental Conference and of the rumored measures which the SINO-JAPAN ESE ACCORD Japanese cabinet had decided to take in NOT IN SIGHT Manchuria reached China, feeling was aroused. Resenting the protests against the So far there have been no indications of imposition of taxes and the construction of an agreement between any Chinese faction the branch railways, Chinese mobs in Muk­ and Japan in regard to Manchuria. Japan­ den staged anti-Japanese demonstrations in ese opinion seems to be unanimous that August and September, 1927. The General Japan shall not surrender her railway and Guild of Mukden, an association of local leasehold interests and the Tanaka govern­ Chinese merchants somewhat similar to our ment seems pledged to a "positive policy" Chambers of Commerce, served notice on all which will increase Japanese control. Com- · menting on the Tanaka policy, the Osaka Chinese houses to buy no Japanese goods. Asahi says, "As the general outlines of the Some Japanese insisted that the riots and new Manchuria and Mongolia policy clearly other demonstrations were instigated by show, the present Cabinet is more positive Chinese authorities, that Chinese officials about Japan's special position in Manchuria took part in the anti-Japanese demonstration and Mongolia than any other Ministry in the meetings, and that Chinese policemen went past. It is doubtful whether the Okuma from door to door telling the people to dis­ Cabinet had so confirmed a view about play anti-Japanese banners and to march in Japan's position when it formulated the fam­ anti-Japanese processions. It seems that the ous Twenty-One Demands of 1915." Whether situation in Mukden is still serious and that or not the Tanaka government intends to go anti-Japanese feeling among the people who further than to insist on the rights granted JAPANESE POLICY IN CHINA 239 in the agreements of May, 1915, (the validity the application of which depends upon of \vhich the Chinese refuse to recognize) re­ Chinese goodwill, can be reconciled with the mains to be seen. Nevertheless the mere "positive policy." It must decide whether, announcement of the "positive policy" al­ especially in view of the critical financial and ready seems to have stimulated anti-Japan­ economic situation of Japan which has re~ ese feeling throughout Manchuria. Hitherto suited from the recent earthquake and finan­ the Japanese have taken the position that cial crisis, it will be able to impose a "positive in view of the lower standard of living of policy" upon Manchuria, which is a portion the Chinese and the unwillingness of the of China, a country in which nationalist Japanese to live in Manchuria, on account sentiment has recently become strong. While of its climate, the territory can be developed no one may predict the future, it seems that only by Chinese, working in cooperation with the question whether Manchuria will become the Japanese. The Japanese Government independent of China will be a critical one must decide whether or not this principle, during the next ten years.

STATEMENT OF PREMIER TAN AKA AT THE ORIENTAL CONFERENCE, JULY 7, 1927

The maintenance of peace in the Far East and time being and to await the development of events the realization of the common prosperity of Japan for the gradual unification of the country. and China form the basic principle of Japanese policy towards China. The methods of carrying 4. If, with the transition of the political situa­ out the principle, however, may vary in its applica­ tion, the governments of the North and South are combined or a federation of local political groups tion to China proper and to Manchuria and Mon­ is formed, it is a matter of course that the attitude golia, in view of our special position in the Far East. of the Japanese Government towards such different The general outline of our policy towards China, which is based on this fundamental principle, may political factors will be entirely unchanged. If, be summed up as follows: under such conditions, a tendency at·ises toward the establishment of a unified government to deal with 1. Although the stabilization of the political the foreign relations of China, we shall welcome it, situation and the restoration of peace and order in as also will the Powers and stand ready to assist China constitute the crying need of the times, yet in the growth of such a government. the best way to realize them is to let the Chinese people themselves undertake it. Therefore, in the 5. It is irrefutable that the radical and destruc­ present internal political conflict in that country, tive elements, taking advantage of the political un­ we should not take the side of any party or clique rest in China, may become rampant and disturb the and should respect the popular will and strictly public peace, thereby causing unfortunate interna­ avoid such steps as might interfere with the con­ tional embroglios. The Japanese Government ex­ tending forces. pects that the suppression of obnoxious elements and the maintenance of peace and order will be 2. We are heartily in sympathy with the legiti­ effected through the control of the Chinese authori­ mate national aspirations that emanate from the ties and the efforts of the Chinese people them­ moderate elements in China, and we should always selves; but, in the case of infringement of our be ready to cooperate with them for their rational legitimate rights and interests and the lives and and gradual attainment through cooperation with property of our nationals, there will be no alterna­ the Powers as far as possible. tive for us but resolutely to take self-defensive At the same time, the peaceful economic develop­ measures and protect them, if necessary. Particu­ ment of China is a matter ardently desired equally larly, it is necessary to dispel the misapprehensions by the Chinese and the foreign peoples and its ac­ and misunderstandings of those who, on the strength complishment demands the friendly cooperation of of unfounded rumors concerning Sino-Japanese re­ the Powers as well as the endeavors of the Chinese lations, blindly start a movement to boycott Japanese people themselves. goods and, to take appropriate measures for safe­ 3. The aforementioned objects can be accom­ guarding our rights. plished only when a stable central government is 6. Since Manchuria and Mongolia, particularly established, but, when we view the present political The Three Eastern Provinces, have an important situation in China, we find that the establishment bearing upon the national defence and existence of of such a government is no easy matter. In the this country, we must devote especial attention to existing circumstances, therefore, we have no alter­ those regions. We feel, moreover, particular re­ native but to keep ourselves properly in touch with sponsibility as a neighbor for making them suitable moderate political factors in various places for the for the residence of both Japanese and foreigners JAPANESE POLICY IN CHINA 240 by the preservation of peace and their economic Provinces in their own hands. Any plan which development. will respect our special position in Manchuria and Mongolia and devise measures for stabilizing the The stimulus of the economic activities of Japan­ ese and foreigners alike in both the southern and political situation there will receive the due assist­ ance of the Japanese Government. northern parts of Manchuria and Mongolia, based upon the principles of the Open Door and equal 8. If the disturbances spread to Manchuria and opportunity, we hold to be instrumental in acceler­ Mongolia, and as a result, peace and order are dis­ ating the peaceful development of those regions and rupted, thereby menacing our special position and we should act in accordance with this principle in rights and interests in those regions, we must be safeguarding our already acquired rights and inter­ determined to defend them, no matter whence the ests and in solving pending questions. menace comes, and take proper steps without loss of time in order to preserve the regions as lands 7. I believe that it will be best to leave stabiliza­ for peaceful habitation and development equally to tion of the political situation in the Three Eastern Japanese and foreigners.

List of References

ADACHI, KINNOSUKE. LEE, B. Y. Manchw