[Footnote 7: See Hirth, _China and the Roman Orient_ (Leipzig and Shanghai, 1885), an admirable and fascinating monograph. There are allusions to the Chinese in Virgil and Horace; cf. Cordier, op. cit., i.

p. 271.]

[Footnote 8: Cordier, op. cit. i. p. 281.]

[Footnote 9: Cordier, op. cit. i. p. 237.]

[Footnote 10: Murdoch, in his _History of j.a.pan_ (vol. i. p. 146), thus describes the greatness of the early Tang Empire:

"In the following year (618) Li Yuen, Prince of T'ang, established the ill.u.s.trious dynasty of that name, which continued to sway the fortunes of China for nearly three centuries (618-908). After a brilliant reign of ten years he handed over the imperial dignity to his son, Tai-tsung (627-650), perhaps the greatest monarch the Middle Kingdom has ever seen. At this time China undoubtedly stood in the very forefront of civilization. She was then the most powerful, the most enlightened, the most progressive, and the best governed empire, not only in Asia, but on the face of the globe. Tai-tsung's frontiers reached from the confines of Persia, the Caspian Sea, and the Altai of the Kirghis steppe, along these mountains to the north side of the Gobi desert eastward to the inner Hing-an, while Sogdiana, Khora.s.san, and the regions around the Hindu Rush also acknowledged his suzerainty. The sovereign of Nepal and Magadha in India sent envoys; and in 643 envoys appeared from the Byzantine Empire and the Court of Persia."]

[Footnote 11: Cordier, op. cit. ii. p. 212.]

[Footnote 12: Cordier, op. cit. ii. p. 339.]

[Footnote 13: Cordier, op. cit. i. p. 484.]

[Footnote 14: _The Truth About China and j.a.pan_. George Allen & Unwin, Ltd., pp. 13, 14.]

[Footnote 15: For example, the nearest approach that could be made in Chinese to my own name was "Lo-Su." There is a word "Lo," and a word "Su," for both of which there are characters; but no combination of characters gives a better approximation to the sound of my name.]

[Footnote 16: Giles, op. cit., p. 74. Professor Giles adds, _a propos_ of the phrase "maintaining always a due reserve," the following footnote: "Dr. Legge has 'to keep aloof from them,' which would be equivalent to 'have nothing to do with them.' Confucius seems rather to have meant 'no familiarity.'"]

[Footnote 17: Op. cit., p. 21.]

[Footnote 18: Giles, op. cit. p. 86.]

[Footnote 19: Cordier, op. cit. i. p. 167.]

[Footnote 20: As far as anti-militarism is concerned, Taoism is even more emphatic. "The best soldiers," says Lao-Tze, "do not fight."

(Giles, op. cit. p. 150.) Chinese armies contain many good soldiers.]

[Footnote 21: Giles, op. cit., Lecture VIII. When Chu Fu Tze was dead, and his son-in-law was watching beside his coffin, a singular incident occurred. Although the sage had spent his life teaching that miracles are impossible, the coffin rose and remained suspended three feet above the ground. The pious son-in-law was horrified. "O my revered father-in-law," he prayed, "do not destroy my faith that miracles are impossible." Whereupon the coffin slowly descended to earth again, and the son-in-law's faith revived.]

[Footnote 22: Translated by the Bureau of Economic Information, Peking, 1920.]

[Footnote 23: Op. cit. p. 233.]

CHAPTER III

CHINA AND THE WESTERN POWERS

In order to understand the international position of China, some facts concerning its nineteenth-century history are indispensable. China was for many ages the supreme empire of the Far East, embracing a vast and fertile area, inhabited by an industrious and civilized people.

Aristocracy, in our sense of the word, came to an end before the beginning of the Christian era, and government was in the hands of officials chosen for their proficiency in writing in a dead language, as in England. Intercourse with the West was spasmodic and chiefly religious. In the early centuries of the Christian era, Buddhism was imported from India, and some Chinese scholars penetrated to that country to master the theology of the new religion in its native home, but in later times the intervening barbarians made the journey practically impossible. Nestorian Christianity reached China in the seventh century, and had a good deal of influence, but died out again.

(What is known on this subject is chiefly from the Nestorian monument discovered in Hsianfu in 1625.) In the seventeenth and early eighteenth centuries Roman Catholic missionaries acquired considerable favour at Court, because of their astronomical knowledge and their help in rectifying the irregularities and confusions of the Chinese calendar.[24] Their globes and astrolabes are still to be seen on the walls of Peking. But in the long run they could not resist quarrels between different orders, and were almost completely excluded from both China and j.a.pan.

In the year 1793, a British amba.s.sador, Lord Macartney, arrived in China, to request further trade facilities and the establishment of a permanent British diplomatic representative. The Emperor at this time was Chien Lung, the best of the Manchu dynasty, a cultivated man, a patron of the arts, and an exquisite calligraphist. (One finds specimens of his writing in all sorts of places in China.) His reply to King George III is given by Backhouse and Bland.[25] I wish I could quote it all, but some extracts must suffice. It begins:

You, O King, live beyond the confines of many seas, nevertheless, impelled by your humble desire to partake of the benefits of our civilization, you have despatched a mission respectfully bearing your memorial.... To show your devotion, you have also sent offerings of your country's produce. I have read your memorial: the earnest terms in which it is cast reveal a respectful humility on your part, which is highly praiseworthy.

He goes on to explain, with the patient manner appropriate in dealing with an importunate child, why George III's desires cannot possibly be gratified. An amba.s.sador, he a.s.sures him, would be useless, for:

If you a.s.sert that your reverence for our Celestial Dynasty fills you with a desire to acquire our civilization, our ceremonies and code of laws differ so completely from your own that, even if your Envoy were able to acquire the rudiments of our civilization, you could not possibly transplant our manners and customs to your alien soil. Therefore, however adept the Envoy might become, nothing would be gained thereby.

Swaying the wide world, I have but one aim in view, namely, to maintain a perfect governance and to fulfil the duties of the State; strange and costly objects do not interest me. I ... have no use for your country's manufactures. ...It behoves you, O King, to respect my sentiments and to display even greater devotion and loyalty in future, so that, by perpetual submission to our Throne, you may secure peace and prosperity for your country hereafter.

He can understand the English desiring the produce of China, but feels that they have nothing worth having to offer in exchange:

"Our Celestial Empire possesses all things in prolific abundance and lacks no product within its own borders. There was therefore no need to import the manufactures of outside barbarians in exchange for our own produce. But as the tea, silk and porcelain which the Celestial Empire produces are absolute necessities to European nations and to yourselves," the limited trade hitherto permitted at Canton is to continue.

He would have shown less favour to Lord Macartney, but "I do not forget the lonely remoteness of your island, cut off from the world by intervening wastes of sea, nor do I overlook your excusable ignorance of the usages of our Celestial Empire." He concludes with the injunction: "Tremblingly obey and show no negligence!"

What I want to suggest is that no one understands China until this doc.u.ment has ceased to seem absurd. The Romans claimed to rule the world, and what lay outside their Empire was to them of no account. The Empire of Chien Lung was more extensive, with probably a larger population; it had risen to greatness at the same time as Rome, and had not fallen, but invariably defeated all its enemies, either by war or by absorption. Its neighbours were comparatively barbarous, except the j.a.panese, who acquired their civilization by slavish imitation of China.

The view of Chien Lung was no more absurd than that of Alexander the Great, sighing for new worlds to conquer when he had never even heard of China, where Confucius had been dead already for a hundred and fifty years. Nor was he mistaken as regards trade: China produces everything needed for the happiness of its inhabitants, and we have forced trade upon them solely for our benefit, giving them in exchange only things which they would do better without.

Unfortunately for China, its culture was deficient in one respect, namely science. In art and literature, in manners and customs, it was at least the equal of Europe; at the time of the Renaissance, Europe would not have been in any way the superior of the Celestial Empire. There is a museum in Peking where, side by side with good Chinese art, may be seen the presents which Louis XIV made to the Emperor when he wished to impress him with the splendour of _Le Roi Soleil_. Compared to the Chinese things surrounding them, they were tawdry and barbaric. The fact that Britain has produced Shakespeare and Milton, Locke and Hume, and all the other men who have adorned literature and the arts, does not make us superior to the Chinese. What makes us superior is Newton and Robert Boyle and their scientific successors. They make us superior by giving us greater proficiency in the art of killing. It is easier for an Englishman to kill a Chinaman than for a Chinaman to kill an Englishman.

Therefore our civilization is superior to that of China, and Chien Lung is absurd. When we had finished with Napoleon, we soon set to work to demonstrate this proposition.

Our first war with China was in 1840, and was fought because the Chinese Government endeavoured to stop the importation of opium. It ended with the cession of Hong-Kong and the opening of five ports to British trade, as well as (soon afterwards) to the trade of France, America and Scandinavia. In 1856-60, the English and French jointly made war on China, and destroyed the Summer Palace near Peking,[26] a building whose artistic value, on account of the treasures it contained, must have been about equal to that of Saint Mark's in Venice and much greater than that of Rheims Cathedral. This act did much to persuade the Chinese of the superiority of our civilization so they opened seven more ports and the river Yangtze, paid an indemnity and granted us more territory at Hong-Kong. In 1870, the Chinese were rash enough to murder a British diplomat, so the remaining British diplomats demanded and obtained an indemnity, five more ports, and a fixed tariff for opium. Next, the French took Annam and the British took Burma, both formerly under Chinese suzerainty. Then came the war with j.a.pan in 1894-5, leading to j.a.pan's complete victory and conquest of Korea. j.a.pan's acquisitions would have been much greater but for the intervention of France, Germany and Russia, England holding aloof. This was the beginning of our support of j.a.pan, inspired by fear of Russia. It also led to an alliance between China and Russia, as a reward for which Russia acquired all the important rights in Manchuria, which pa.s.sed to j.a.pan, partly after the Russo-j.a.panese war, and partly after the Bolshevik revolution.

The next incident begins with the murder of two German missionaries in Shantung in 1897. Nothing in their life became them like the leaving of it; for if they had lived they would probably have made very few converts, whereas by dying they afforded the world an object-lesson in Christian ethics. The Germans seized Kiaochow Bay and created a naval base there; they also acquired railway and mining rights in Shantung, which, by the Treaty of Versailles, pa.s.sed to j.a.pan in accordance with the Fourteen Points. Shantung therefore became virtually a j.a.panese possession, though America at Washington has insisted upon its rest.i.tution. The services of the two missionaries to civilization did not, however, end in China, for their death was constantly used in the German Reichstag during the first debates on the German Big Navy Bills, since it was held that warships would make Germany respected in China.

Thus they helped to exacerbate the relations of England and Germany and to hasten the advent of the Great War. They also helped to bring on the Boxer rising, which is said to have begun as a movement against the Germans in Shantung, though the other Powers emulated the Germans in every respect, the Russians by creating a naval base at Port Arthur, the British by acquiring Wei-hai-wei and a sphere of influence in the Yangtze, and so on. The Americans alone held aloof, proclaiming the policy of Chinese integrity and the Open Door.

The Boxer rising is one of the few Chinese events that all Europeans know about. After we had demonstrated our superior virtue by the sack of Peking, we exacted a huge indemnity, and turned the Legation Quarter of Peking into a fortified city. To this day, it is enclosed by a wall, filled with European, American, and j.a.panese troops, and surrounded by a bare s.p.a.ce on which the Chinese are not allowed to build. It is administered by the diplomatic body, and the Chinese authorities have no powers over anyone within its gates. When some unusually corrupt and traitorous Government is overthrown, its members take refuge in the j.a.panese (or other) Legation and so escape the punishment of their crimes, while within the sacred precincts of the Legation Quarter the Americans erect a vast wireless station said to be capable of communicating directly with the United States. And so the refutation of Chien Lung is completed.

Out of the Boxer indemnity, however, one good thing has come. The Americans found that, after paying all just claims for damages, they still had a large surplus. This they returned to China to be spent on higher education, partly in colleges in China under American control, partly by sending advanced Chinese students to American universities.

The gain to China has been enormous, and the benefit to America from the friendship of the Chinese (especially the most educated of them) is incalculable. This is obvious to everyone, yet England shows hardly any signs of following suit.

To understand the difficulties with which the Chinese Government is faced, it is necessary to realize the loss of fiscal independence which, China has suffered as the result of the various wars and treaties which have been forced upon her. In the early days, the Chinese had no experience of European diplomacy, and did not know what to avoid; in later days, they have not been allowed to treat old treaties as sc.r.a.ps of paper, since that is the prerogative of the Great Powers--a prerogative which every single one of them exercises.

The best example of this state of affairs is the Customs tariff.[27] At the end of our first war with China, in 1842, we concluded a treaty which provided for a duty at treaty ports of 5 per cent. on all imports and not more than 5 per cent on exports. This treaty is the basis of the whole Customs system. At the end of our next war, in 1858, we drew up a schedule of conventional prices on which the 5 per cent. was to be calculated. This was to be revised every ten years, but has in fact only been revised twice, once in 1902 and once in 1918.[28] Revision of the schedule is merely a change in the conventional prices, not a change in the tariff, which remains fixed at 5 per cent. Change in the tariff is practically impossible, since China has concluded commercial treaties involving a most-favoured-nation clause, and the same tariff, with twelve States besides Great Britain, and therefore any change in the tariff requires the unanimous consent of thirteen Powers.

When foreign Powers speak of the Open Door as a panacea for China, it must be remembered that the Open Door does nothing to give the Chinese the usual autonomy as regards Customs that is enjoyed by other sovereign States.[29] The treaty of 1842 on which the system rests, has no time-limit of provision for denunciation by either party, such as other commercial treaties contain. A low tariff suits the Powers that wish to find a market for their goods in China, and they have therefore no motive for consenting to any alteration. In the past, when we practised free trade, we could defend ourselves by saying that the policy we forced upon China was the same as that which we adopted ourselves. But no other nation could make this excuse, nor can we now that we have abandoned free trade by the Safeguarding of Industries Act.

The import tariff being so low, the Chinese Government is compelled, for the sake of revenue, to charge the maximum of 5 per cent, on all exports. This, of course, hinders the development of Chinese commerce, and is probably a mistake. But the need of sources of revenue is desperate, and it is not surprising that the Chinese authorities should consider the tax indispensable.

There is also another system in China, chiefly inherited from the time of the Taiping rebellion, namely the erection of internal customs barriers at various important points. This plan is still adopted with the internal trade. But merchants dealing with the interior and sending goods to or from a Treaty Port can escape internal customs by the payment of half the duty charged under the external tariff. As this is generally less than the internal tariff charges, this provision favours foreign produce at the expense of that of China. Of course the system of internal customs is bad, but it is traditional, and is defended on the ground that revenue is indispensable. China offered to abolish internal customs in return for certain uniform increases in the import and export tariff, and Great Britain, j.a.pan, and the United States consented. But there were ten other Powers whose consent was necessary, and not all could be induced to agree. So the old system remains in force, not chiefly through the fault of the Chinese central government. It should be added that internal customs are collected by the provincial authorities, who usually intercept them and use them for private armies and civil war. At the present time, the Central Government is not strong enough to stop these abuses.

The administration of the Customs is only partially in the hands of the Chinese. By treaty, the Inspector-General, who is at the head of the service, must be British so long as our trade with China exceeds that of any other treaty State; and the appointment of all subordinate officials is in his hands. In 1918 (the latest year for which I have the figures) there were 7,500 persons employed in the Customs, and of these 2,000 were non-Chinese. The first Inspector-General was Sir Robert Hart, who, by the unanimous testimony of all parties, fulfilled his duties exceedingly well. For the time being, there is much to be said for the present system. The Chinese have the appointment of the Inspector-General, and can therefore choose a man who is sympathetic to their country. Chinese officials are, as a rule, corrupt and indolent, so that control by foreigners is necessary in creating a modern bureaucracy. So long as the foreign officials are responsible to the Chinese Government, not to foreign States, they fulfil a useful educative function, and help to prepare the way for the creation of an efficient Chinese State. The problem for China is to secure practical and intellectual training from the white nations without becoming their slaves. In dealing with this problem, the system adopted in the Customs has much to recommend it during the early stages.[30]

At the same time, there are grave infringements of Chinese independence in the present position of the Customs, apart altogether from the fact that the tariff is fixed by treaty for ever. Much of the revenue derivable from customs is mortgaged for various loans and indemnities, so that the Customs cannot be dealt with from the point of view of Chinese interests alone. Moreover, in the present state of anarchy, the Customs administration can exercise considerable control over Chinese politics by recognizing or not recognizing a given _de facto_ Government. (There is no Government _de jure_, at any rate in the North.) At present, the Customs Revenue is withheld in the South, and an artificial bankruptcy is being engineered. In view of the reactionary instincts of diplomats, this const.i.tutes a terrible obstacle to internal reform. It means that no Government which is in earnest in attempting to introduce radical improvements can hope to enjoy the Customs revenue, which interposes a formidable fiscal barrier in the way of reconstruction.

There is a similar situation as regards the salt tax. This also was accepted as security for various foreign loans, and in order to make the security acceptable the foreign Powers concerned insisted upon the employment of foreigners in the princ.i.p.al posts. As in the case of the Customs, the foreign inspectors are appointed by the Chinese Government, and the situation is in all respects similar to that existing as regards the Customs.

The Customs and the salt tax form the security for various loans to China. This, together with foreign administration, gives opportunities of interference by the Powers which they show no inclination to neglect.

The way in which the situation is utilized may be ill.u.s.trated by three telegrams in _The Times_ which appeared during January of this year.