China is not much more than one-sixth of American exports to Japan. China is said to have a population of 400,000,000, but her purchases from America in 1918 amounted to only $43,000,000. Japan, with a small population of 60,000,000, bought in the same year $275,000,000 worth of American goods. In other words Japanese purchases of American goods are $4.50 per capita, while Chinese purchases amount to only 10 cents per capita. customer. It is generally known that America is Japan's best At the same time, it is well to remember that Japan is by far the best customer of American goods in the whole Orient. But for the Japanese market, American trade in Asia must for many years to come remain a negligible quantity. [Twenty-five days after this letter was written, Baron Shidehara, the Japanese delegate, in a statement (Appendix XIV) before the final plenary session of February 4, 1922, had this to say: "To say that Japan has special interests in China is to state a plain and actual fact." This is an interesting and significant statement. No one can deny the "plain and actual fact" that Japan is China's next door neighbor, that 170,000 Japanese live in China, and that in Manchuria in particular the Japanese have established enormous economic enterprises.] MCOVER WAR CHAPTER XXVI JAPAN IN MANCHURIA Washington, January 25, 1922: The injection of the so-called twenty-one demands into the Conference naturally directs public attention to Japan's position in Manchuria. When the Chinese speak of the twentyone demands, they mean, to all intents and purposes, Japanese rights in South Manchuria. Of the original Japanese demands of January, 1915, fourteen were accepted by China. Of these, the treaty and notes concerning Shantung have been discarded by the voluntary act of Japan, for the Japanese have adjusted the Shantung controversy independently of the agreement of 1915. What remains of the agreements, which resulted from the twenty-one demands, concerns Japan's rights in Manchuria. Quite apart from the pro and con of the historic demands, it is essential for the public to keep clearly in view what Japan owns and what she is doing in Manchuria. Let us first of all take a glance at Japanese holdings in Manchuria. The Japanese Government holds under a 99-year lease Port Arthur and the adjacent territory (commonly known as the Kwantung Peninsula) about 1,203 square miles in area, that is 34/10,000ths of Manchuria, a country whose entire area measures 382,630 square miles. This lease expires in 1997. The South Manchuria Railway operates 698 miles of lines, and owns about 50 square miles of lands scattered along them. The lease of the railway, also for 99 years, expires in 2002. Outside these small areas the Japanese, either governmentally or privately, enjoy no privilege that cannot be equally enjoyed by other nationals. Needless to say that the leased territory and the railway zone are open to the economic activities of the nationals of all countries. Compare these Japanese holdings with those of Russia in North Manchuria. The Russian railways total 1,075 miles, while the lands appurtenant thereto have an aggregate area of 513 square miles. Moreover, Russia has the exclusive right to navigate the rivers in North Manchuria. Under the Russian regime, the Kwantung leased territory was purely a military zone, covered with fortifications and bristling with arms. Port Arthur, a military and naval port, was closed to merchant ships. Even the port of Dairen was half devoted to the exclusive use of the navy. This condition has been completely changed by Japan. Soon after the Russian War Port Arthur was thrown open to commerce. Japan has not spent a single cent on the fortifications, mostly destroyed during the war of 1904. In fact Port Arthur, including the fortifications, has been converted into a sort of recreation ground, As for Dairen, it has become a commercial port, pure and simple. The one outstanding economic and civilizing factor in Manchuria is the South Manchuria Railway Company. This company was organized in 1906 in accordance with the commercial law of Japan. Its authorized capital was $100,000,000, shares of which were equally divided between the general public and the Japanese Government. The Chinese Government was invited to take some of the shares allotted to the Japanese Government, but the invitation was declined on the ground. that China had no substantial fund available for the purpose. The Company operates 437 miles of the main line from Changchun to Dairen, together with six branch lines totaling 261 miles. In addition, it undertakes mining, iron works, marine transportation, management of lands and buildings in the railway zone, public works, sanitation and education in the same zone. In a word, the administration of the railway zone, except policing and judiciary functions, is entrusted to the Company. These railway lands, though but specks in the vast area of Manchuria, have become centres from which the influence of modern civilization radiates into a country yet under the influence of medievalism. The South Manchuria Railway Company has provided these lands with modern schools, hospitals, water works, sewerage, electric lighting and telephone systems, and well-paved roads. The cities and towns that have sprung up along the railways are more sanitary and better planned than perhaps any city in Japan. Especially impressive is the city of Dairen, the commercial metropolis of South Manchuria. Its streets are adorned with beautiful trees and lined with modern buildings, some of them quite imposing. It has up-to-date electric tramways and all other modern conveniences. Its hospital, its technical college, its normal school and public schools would do credit to any modern city. At all the leading stations the South Manchuria Railway Company has established schools both for Chinese and Japanese children. In Mukden there is an admirable college, training both Japanese and Chinese for medical practice. In Port Arthur a school of technology has been organized for the benefit of Chinese and Japanese students. In 1917 the hospitals maintained by the Company treated about 1,388,000 patients, most of whom were Chinese. The traffic department of the Company employs 7,800 Japanese and 3,000 Chinese in various official capacities, as well as 19,400 Chinese coolies for menial labor. I have said that outside the leased territory and the railway lands the Japanese citizens enjoy no special rights or prerogatives. True, the treaty of 1915, resulting from the twenty-one demands, permits the Japanese to travel and reside, as well as to lease land for farming and commercial purposes, in all parts of South Manchuria. But this privilege is by no means exclusive to the Japanese. By reason of the "most-favored nation clause," provided in China's treaties of commerce and amity with American and European countries, the above privilege can be participated in by all Americans and Europeans. President Hayakawa, of the South Manchuria Railway Company, in instructions recently issued to the officials and employees of the Company, defines the policy of the railway in these words: "Towards all nationalities, we must observe loyally the principle of equal opportunity and be guided by the spirit of harmony and co-operation, and should demonstrate to the world the open and fair attitude of the Japanese people. Free competition is what we do expect and welcome heartily. We shall meet any and every competitor like a sportsman and should hope to win by merit only." Under the Russian regime, American trade in Manchuria was not great. The appearance of the Japanese after the Russian War changed this condition in favor of American commerce. In the twelve years from 1907 to 1919 the South Manchurian Railway Company alone bought American materials to the extent of $93,790,000 gold. In addition, American machinery and materials to the sum of $60,000,000 gold were imported to Man |