On January 14, 1922, _The Times_ published the following in a telegram from its Peking correspondent:

It is curious to reflect that this country (China) could be rendered completely solvent and the Government provided with a substantial income almost by a stroke of the foreigner's pen, while without that stroke there must be bankruptcy, pure and simple. Despite constant civil war and political chaos, the Customs revenue consistently grows, and last year exceeded all records by 1,000,000. The increased duties sanctioned by the Washington Conference will provide sufficient revenue to liquidate the whole foreign and domestic floating debt in a very few years, leaving the splendid salt surplus unenc.u.mbered for the Government. The difficulty is not to provide money, but to find a Government to which to entrust it. Nor is there any visible prospect of the removal of this difficulty.

I venture to think _The Times_ would regard the difficulty as removed if the Manchu Empire were restored.

As to the "splendid salt surplus," there are two telegrams from the Peking correspondent to _The Times_ (of January 12th and 23rd, respectively) showing what we gain by making the Peking Government artificially bankrupt. The first telegram (sent on January 10th) is as follows:--

Present conditions in China are aptly ill.u.s.trated by what is happening in one of the great salt revenue stations on the Yangtsze, near c.h.i.n.kiang. That portion of the Chinese fleet faithful to the Central Government--the better half went over to the Canton Government long ago--has dispatched a squadron of gunboats to the salt station and notified Peking that if $3,000,000 (about 400,000) arrears of pay were not immediately forthcoming the amount would be forcibly recovered from the revenue. Meanwhile the immense salt traffic on the Yangtsze has been suspended. The Legations concerned have now sent an Identic Note to the Government warning it of the necessity for immediately securing the removal of the obstruction to the traffic and to the operations of the foreign collectorate.

The second telegram is equally interesting. It is as follows:--

The question of interference with the Salt Gabelle is a.s.suming a serious aspect. The Chinese squadron of gunboats referred to in my message of the 10th is still blocking the salt traffic near Chingkiang, while a new intruder in the shape of an agent of Wu-Pei-Fu [the Liberal military leader] has installed himself in the collectorate at Hankow, and is endeavouring to appropriate the receipts for his powerful master. The British, French, and j.a.panese Ministers accordingly have again addressed the Government, giving notice that if these irregular proceedings do not cease they will be compelled to take independent action. The Reorganization Loan of 25,000,000 is secured on the salt revenues, and interference with the foreign control of the department const.i.tutes an infringement of the loan agreement. In various parts of China, some independent of Peking, others not, the local _Tuchuns_ (military governors) impound the collections and materially diminish the total coming under the control of the foreign inspectorate, but the balance remaining has been so large, and protest so useless, that hitherto all concerned have considered it expedient to acquiesce. But interference at points on the Yangtsze, where naval force can be brought to bear, is another matter. The situation is interesting in view of the amiable resolutions adopted at Washington, by which the Powers would seem to have debarred themselves, in the future, from any active form of intervention in this country. In view of the extensive opposition to the Liang Shih-yi Cabinet and the present interference with the salt negotiations, the $90,000,000 (11,000,000) loan to be secured on the salt surplus has been dropped. The problem of how to weather the new year settlement on January 28th remains unsolved.

It is a pretty game: creating artificial bankruptcy, and then inflicting punishment for the resulting anarchy. How regrettable that the Washington Conference should attempt to interfere!

It is useless to deny that the Chinese have brought these troubles upon themselves, by their inability to produce capable and honest officials.

This inability has its roots in Chinese ethics, which lay stress upon a man's duty to his family rather than to the public. An official is expected to keep all his relations supplied with funds, and therefore can only be honest at the expense of filial piety. The decay of the family system is a vital condition of progress in China. All Young China realizes this, and one may hope that twenty years hence the level of honesty among officials may be not lower in China than in Europe--no very extravagant hope. But for this purpose friendly contact with Western nations is essential. If we insist upon rousing Chinese nationalism as we have roused that of India and j.a.pan, the Chinese will begin to think that wherever they differ from Europe, they differ for the better. There is more truth in this than Europeans like to think, but it is not wholly true, and if it comes to be believed our power for good in China will be at an end.

I have described briefly in this chapter what the Christian Powers did to China while they were able to act independently of j.a.pan. But in modern China it is j.a.panese aggression that is the most urgent problem.

Before considering this, however, we must deal briefly with the rise of modern j.a.pan--a quite peculiar blend of East and West, which I hope is not prophetic of the blend to be ultimately achieved in China. But before pa.s.sing to j.a.pan, I will give a brief description of the social and political condition of modern China, without which j.a.pan's action in China would be unintelligible.

FOOTNOTES:

[Footnote 24: In 1691 the Emperor Kang Hsi issued an edict explaining his att.i.tude towards various religions. Of Roman Catholicism he says: "As to the western doctrine which glorifies _Tien Chu_, the Lord of the Sky, that, too, is heterodox; but because its priests are thoroughly conversant with mathematics, the Government makes use of them--a point which you soldiers and people should understand." (Giles, op. cit. p.

252.)]

[Footnote 25: _Annals and Memoirs of the Court of Peking_, pp. 322 ff.]

[Footnote 26: The Summer Palace now shown to tourists is modern, chiefly built by the Empress Dowager.]

[Footnote 27: There is an admirable account of this question in Chap.

vii. of Sih-Gung Cheng's _Modern China_, Clarendon Press, 1919.]

[Footnote 28: A new revision has been decided upon by the Washington Conference.]

[Footnote 29: If you lived in a town where the burglars had obtained possession of the Town Council, they would very likely insist upon the policy of the Open Door, but you might not consider it wholly satisfactory. Such is China's situation among the Great Powers.]

[Footnote 30: _The Times_ of November 26, 1921, had a leading article on Mr. Wellington Koo's suggestion, at Washington, that China ought to be allowed to recover fiscal autonomy as regards the tariff. Mr. Koo did not deal with the Customs _administration_, nevertheless _The Times_ a.s.sumed that his purpose was to get the administration into the hands of the Chinese on account of the opportunities of lucrative corruption which it would afford. I wrote to _The Times_ pointing out that they had confused the administration with the tariff, and that Mr. Koo was dealing only with the tariff. In view of the fact that they did not print either my letter or any other to the same effect, are we to conclude that their misrepresentation was deliberate and intentional?]

CHAPTER IV

MODERN CHINA

The position of China among the nations of the world is quite peculiar, because in population and potential strength China is the greatest nation in the world, while in actual strength at the moment it is one of the least. The international problems raised by this situation have been brought into the forefront of world-politics by the Washington Conference. What settlement, if any, will ultimately be arrived at, it is as yet impossible to foresee. There are, however, certain broad facts and principles which no wise solution can ignore, for which I shall try to give the evidence in the course of the following chapters, but which it may be as well to state briefly at the outset. First, the Chinese, though as yet incompetent in politics and backward in economic development, have, in other respects, a civilization at least as good as our own, containing elements which the world greatly needs, and which we shall destroy at our peril. Secondly, the Powers have inflicted upon China a mult.i.tude of humiliations and disabilities, for which excuses have been found in China's misdeeds, but for which the sole real reason has been China's military and naval weakness. Thirdly, the best of the Great Powers at present, in relation to China, is America, and the worst is j.a.pan; in the interests of China, as well as in our own larger interests, it is an immense advance that we have ceased to support j.a.pan and have ranged ourselves on the side of America, in so far as America stands for Chinese freedom, but not when j.a.panese freedom is threatened.

Fourthly, in the long run, the Chinese cannot escape economic domination by foreign Powers unless China becomes military or the foreign Powers become Socialistic, because the capitalist system involves in its very essence a predatory relation of the strong towards the weak, internationally as well as nationally. A strong military China would be a disaster; therefore Socialism in Europe and America affords the only ultimate solution.

After these preliminary remarks, I come to the theme of this chapter, namely, the present internal condition of China.

As everyone knows, China, after having an Emperor for forty centuries, decided, eleven years ago, to become a modern democratic republic. Many causes led up to this result. Pa.s.sing over the first 3,700 years of Chinese history, we arrive at the Manchu conquest in 1644, when a warlike invader from the north succeeded in establishing himself upon the Dragon Throne. He set to work to induce Chinese men to wear pigtails and Chinese women to have big feet. After a time a statesmanlike compromise was arranged: pigtails were adopted but big feet were rejected; the new absurdity was accepted and the old one retained. This characteristic compromise shows how much England and China have in common.

The Manchu Emperors soon became almost completely Chinese, but differences of dress and manners kept the Manchus distinct from the more civilized people whom they had conquered, and the Chinese remained inwardly hostile to them. From 1840 to 1900, a series of disastrous foreign wars, culminating in the humiliation of the Boxer time, destroyed the prestige of the Imperial Family and showed all thoughtful people the need of learning from Europeans. The Taiping rebellion, which lasted for 15 years (1849-64), is thought by Putnam Weale to have diminished the population by 150 millions,[31] and was almost as terrible a business as the Great War. For a long time it seemed doubtful whether the Manchus could suppress it, and when at last they succeeded (by the help of Gordon) their energy was exhausted. The defeat of China by j.a.pan (1894-5) and the vengeance of the Powers after the Boxer rising (1900) finally opened the eyes of all thoughtful Chinese to the need for a better and more modern government than that of the Imperial Family.

But things move slowly in China, and it was not till eleven years after the Boxer movement that the revolution broke out.

The revolution of 1911, in China, was a moderate one, similar in spirit to ours of 1688. Its chief promoter, Sun Yat Sen, now at the head of the Canton Government, was supported by the Republicans, and was elected provisional President. But the Nothern Army remained faithful to the dynasty, and could probably have defeated the revolutionaries. Its Commander-in-Chief, Yuan Shih-k'ai, however, hit upon a better scheme.

He made peace with the revolutionaries and acknowledged the Republic, on condition that he should be the first President instead of Sun Yat Sen.

Yuan Shih-k'ai was, of course, supported by the Legations, being what is called a "strong man," _i.e._ a believer in blood and iron, not likely to be led astray by talk about democracy or freedom. In China, the North has always been more military and less liberal than the South, and Yuan Shih-k'ai had created out of Northern troops whatever China possessed in the way of a modern army. As he was also ambitious and treacherous, he had every quality needed for inspiring confidence in the diplomatic corps. In view of the chaos which has existed since his death, it must be admitted, however, that there was something to be said in favour of his policy and methods.

A Const.i.tuent a.s.sembly, after enacting a provisional const.i.tution, gave place to a duly elected Parliament, which met in April 1913 to determine the permanent const.i.tution. Yuan soon began to quarrel with the Parliament as to the powers of the President, which the Parliament wished to restrict. The majority in Parliament was opposed to Yuan, but he had the preponderance in military strength. Under these circ.u.mstances, as was to be expected, const.i.tutionalism was soon overthrown. Yuan made himself financially independent of Parliament (which had been duly endowed with the power of the purse) by unconst.i.tutionally concluding a loan with the foreign banks. This led to a revolt of the South, which, however, Yuan quickly suppressed. After this, by various stages, he made himself virtually absolute ruler of China. He appointed his army lieutenants military governors of provinces, and sent Northern troops into the South. His regime might have lasted but for the fact that, in 1915, he tried to become Emperor, and was met by a successful revolt. He died in 1916--of a broken heart, it was said.

Since then there has been nothing but confusion in China. The military governors appointed by Yuan refused to submit to the Central Government when his strong hand was removed, and their troops terrorized the populations upon whom they were quartered. Ever since there has been civil war, not, as a rule, for any definite principle, but simply to determine which of various rival generals should govern various groups of provinces. There still remains the issue of North versus South, but this has lost most of its const.i.tutional significance.

The military governors of provinces or groups of provinces, who are called Tuchuns, govern despotically in defiance of Peking, and commit depredations on the inhabitants of the districts over which they rule.

They intercept the revenue, except the portions collected and administered by foreigners, such as the salt tax. They are nominally appointed by Peking, but in practice depend only upon the favour of the soldiers in their provinces. The Central Government is nearly bankrupt, and is usually unable to pay the soldiers, who live by loot and by such portions of the Tuchun's illgotten wealth as he finds it prudent to surrender to them. When any faction seemed near to complete victory, the j.a.panese supported its opponents, in order that civil discord might be prolonged. While I was in Peking, the three most important Tuchuns met there for a conference on the division of the spoils. They were barely civil to the President and the Prime Minister, who still officially represent China in the eyes of foreign Powers. The unfortunate nominal Government was obliged to pay to these three worthies, out of a bankrupt treasury, a sum which the newspapers stated to be nine million dollars, to secure their departure from the capital. The largest share went to Chang-tso-lin, the Viceroy of Manchuria and commonly said to be a tool of j.a.pan. His share was paid to cover the expenses of an expedition to Mongolia, which had revolted; but no one for a moment supposed that he would undertake such an expedition, and in fact he has remained at Mukden ever since.[32]

In the extreme south, however, there has been established a Government of a different sort, for which it is possible to have some respect.

Canton, which has always been the centre of Chinese radicalism, succeeded, in the autumn of 1920, in throwing off the tyranny of its Northern garrison and establishing a progressive efficient Government under the Presidency of Sun Yat Sen. This Government now embraces two provinces, Kw.a.n.gtung (of which Canton is the capital) and Kw.a.n.gsi. For a moment it seemed likely to conquer the whole of the South, but it has been checked by the victories of the Northern General Wu-Pei-Fu in the neighbouring province of Hunan. Its enemies allege that it cherishes designs of conquest, and wishes to unite all China under its sway.[33]

In all ascertainable respects it is a Government which deserves the support of all progressive people. Professor Dewey, in articles in the _New Republic_, has set forth its merits, as well as the bitter enmity which it has encountered from Hong-Kong and the British generally. This opposition is partly on general principles, because we dislike radical reform, partly because of the Ca.s.sel agreement. This agreement--of a common type in China--would have given us a virtual monopoly of the railways and mines in the province of Kw.a.n.gtung. It had been concluded with the former Government, and only awaited ratification, but the change of Government has made ratification impossible. The new Government, very properly, is befriended by the Americans, and one of them, Mr. Shank, concluded an agreement with the new Government more or less similar to that which we had concluded with the old one. The American Government, however, did not support Mr. Shank, whereas the British Government did support the Ca.s.sel agreement. Meanwhile we have lost a very valuable though very iniquitous concession, merely because we, but not the Americans, prefer what is old and corrupt to what is vigorous and honest. I understand, moreover, that the Shank agreement lapsed because Mr. Shank could not raise the necessary capital.

The anarchy in China is, of course, very regrettable, and every friend of China must hope that it will be brought to an end. But it would be a mistake to exaggerate the evil, or to suppose that it is comparable in magnitude to the evils endured in Europe. China must not be compared to a single European country, but to Europe as a whole. In _The Times_ of November 11, 1921, I notice a pessimistic article headed: "The Peril of China. A dozen rival Governments." But in Europe there are much more than a dozen Governments, and their enmities are much fiercer than those of China. The number of troops in Europe is enormously greater than in China, and they are infinitely better provided with weapons of destruction. The amount of fighting in Europe since the Armistice has been incomparably more than the amount in China during the same period.

You may travel through China from end to end, and it is ten to one that you will see no signs of war. Chinese battles are seldom b.l.o.o.d.y, being fought by mercenary soldiers who take no interest in the cause for which they are supposed to be fighting. I am inclined to think that the inhabitants of China, at the present moment, are happier, on the average, than the inhabitants of Europe taken as a whole.

It is clear, I think, that political reform in China, when it becomes possible, will have to take the form of a federal const.i.tution, allowing a very large measure of autonomy to the provinces. The division into provinces is very ancient, and provincial feeling is strong. After the revolution, a const.i.tution more or less resembling our own was attempted, only with a President instead of a King. But the successful working of a non-federal const.i.tution requires a h.o.m.ogeneous population without much local feeling, as may be seen from our own experience in Ireland. Most progressive Chinese, as far as I was able to judge, now favour a federal const.i.tution, leaving to the Central Government not much except armaments, foreign affairs, and customs. But the difficulty of getting rid of the existing military anarchy is very great. The Central Government cannot disband the troops, because it cannot find the money to pay them. It would be necessary to borrow from abroad enough money to pay off the troops and establish them in new jobs. But it is doubtful whether any Power or Powers would make such a loan without exacting the sacrifice of the last remnants of Chinese independence. One must therefore hope that somehow the Chinese will find a way of escaping from their troubles without too much foreign a.s.sistance.

It is by no means impossible that one of the Tuchuns may become supreme, and may then make friends with the const.i.tutionalists as the best way of consolidating his influence. China is a country where public opinion has great weight, and where the desire to be thought well of may quite possibly lead a successful militarist into patriotic courses. There are, at the moment, two Tuchuns who are more important than any of the others. These are Chang-tso-lin and Wu-Pei-Fu, both of whom have been already mentioned. Chang-tso-lin is supreme in Manchuria, and strong in j.a.panese support; he represents all that is most reactionary in China.

Wu-Pei-Fu, on the other hand, is credited with liberal tendencies. He is an able general; not long ago, nominally at the bidding of Peking, he established his authority on the Yangtze and in Hunan, thereby dealing a blow to the hopes of Canton. It is not easy to see how he could come to terms with the Canton Government, especially since it has allied itself with Chang-tso-lin, but in the rest of China he might establish his authority and seek to make it permanent by being const.i.tutional (see Appendix). If so, China might have a breathing-s.p.a.ce, and a breathing-s.p.a.ce is all that is needed.

The economic life of China, except in the Treaty Ports and in a few regions where there are mines, is still wholly pre-industrial. Peking has nearly a million inhabitants, and covers an enormous area, owing to the fact that all the houses have only a ground floor and are built round a courtyard. Yet it has no trams or buses or local trains. So far as I could see, there are not more than two or three factory chimneys in the whole town. Apart from begging, trading, thieving and Government employment, people live by handicrafts. The products are exquisite and the work less monotonous than machine-minding, but the hours are long and the pay infinitesimal.

Seventy or eighty per cent. of the population of China are engaged in agriculture. Rice and tea are the chief products of the south, while wheat and other kinds of grain form the staple crops in the north.[34]

The rainfall is very great in the south, but in the north it is only just sufficient to prevent the land from being a desert. When I arrived in China, in the autumn of 1920, a large area in the north, owing to drought, was afflicted with a terrible famine, nearly as bad, probably, as the famine in Russia in 1921. As the Bolsheviks were not concerned, foreigners had no hesitation in trying to bring relief. As for the Chinese, they regarded it pa.s.sively as a stroke of fate, and even those who died of it shared this view.

Most of the land is in the hands of peasant proprietors, who divide their holdings among their sons, so that each man's share becomes barely sufficient to support himself and his family. Consequently, when the rainfall is less than usual, immense numbers perish of starvation. It would of course be possible, for a time, to prevent famines by more scientific methods of agriculture, and to prevent droughts and floods by afforestation. More railways and better roads would give a vastly improved market, and might greatly enrich the peasants for a generation.

But in the long run, if the birth-rate is as great as is usually supposed, no permanent cure for their poverty is possible while their families continue to be so large. In China, Malthus's theory of population, according to many writers, finds full scope.[35] If so, the good done by any improvement of methods will lead to the survival of more children, involving a greater subdivision of the land, and in the end, a return to the same degree of poverty. Only education and a higher standard of life can remove the fundamental cause of these evils. And popular education, on a large scale, is of course impossible until there is a better Government and an adequate revenue. Apart even from these difficulties, there does not exist, as yet, a sufficient supply of competent Chinese teachers for a system of universal elementary education.

Apart from war, the impact of European civilization upon the traditional life of China takes two forms, one commercial, the other intellectual.

Both depend upon the prestige of armaments; the Chinese would never have opened either their ports to our trade or their minds to our ideas if we had not defeated them in war. But the military beginning of our intercourse with the Middle Kingdom has now receded into the background; one is not conscious, in any cla.s.s, of a strong hostility to foreigners as such. It would not be difficult to make out a case for the view that intercourse with the white races is proving a misfortune to China, but apparently this view is not taken by anyone in China except where unreasoning conservative prejudice outweighs all other considerations.

The Chinese have a very strong instinct for trade, and a considerable intellectual curiosity, to both of which we appeal. Only a bare minimum of common decency is required to secure their friendship, whether privately or politically. And I think their thought is as capable of enriching our culture as their commerce of enriching our pockets.

In the Treaty Ports, Europeans and Americans live in their own quarters, with streets well paved and lighted, houses in European style, and shops full of American and English goods. There is generally also a Chinese part of the town, with narrow streets, gaily decorated shops, and the rich mixture of smells characteristic of China. Often one pa.s.ses through a gate, suddenly, from one to the other; after the cheerful disordered beauty of the old town, Europe's ugly cleanliness and Sunday-go-to-meeting decency make a strange complex impression, half-love and half-hate. In the European town one finds safety, s.p.a.ciousness and hygiene; in the Chinese town, romance, overcrowding and disease. In spite of my affection for China, these transitions always made me realize that I am a European; for me, the Chinese manner of life would not mean happiness. But after making all necessary deductions for the poverty and the disease, I am inclined to think that Chinese life brings more happiness to the Chinese than English life does to us. At any rate this seemed to me to be true for the men; for the women I do not think it would be true.

Shanghai and Tientsin are white men's cities; the first sight of Shanghai makes one wonder what is the use of travelling, because there is so little change from what one is used to. Treaty Ports, each of which is a centre of European influence, exist practically all over China, not only on the sea coast. Hankow, a very important Treaty Port, is almost exactly in the centre of China. North and South China are divided by the Yangtze; East and West China are divided by the route from Peking to Canton. These two dividing lines meet at Hankow, which has long been an important strategical point in Chinese history. From Peking to Hankow there is a railway, formerly Franco-Belgian, now owned by the Chinese Government. From Wuchang, opposite Hankow on the southern bank of the river, there is to be a railway to Canton, but at present it only runs half-way, to Changsha, also a Treaty Port. The completion of the railway, together with improved docks, will greatly increase the importance of Canton and diminish that of Hong-Kong.

In the Treaty Ports commerce is the princ.i.p.al business; but in the lower Yangtze and in certain mining districts there are beginnings of industrialism. China produces large amounts of raw cotton, which are mostly manipulated by primitive methods; but there are a certain number of cotton-mills on modern lines. If low wages meant cheap labour for the employer, there would be little hope for Lancashire, because in Southern China the cotton is grown on the spot, the climate is damp, and there is an inexhaustible supply of industrious coolies ready to work very long hours for wages upon which an English working-man would find it literally impossible to keep body and soul together. Nevertheless, it is not the underpaid Chinese coolie whom Lancashire has to fear, and China will not become a formidable compet.i.tor until improvement in methods and education enables the Chinese workers to earn good wages. Meanwhile, in China, as in every other country, the beginnings of industry are sordid and cruel. The intellectuals wish to be told of some less horrible method by which their country may be industrialized, but so far none is in sight.