CHAPTER XXXII

SETTLED AT LAST!

Washington, February 1, 1922: The Shantung dispute is settled at last! Whatever be the terms of settlement, the world is glad that it can now forget the controversy which has seemed everlasting. For this good riddance we have to thank President Harding and Mr. Hughes, as well as Mr. Balfour, for it was their good offices which have made it possible to compose the differences between China and Japan.

The Shantung settlement is a diplomatic victory for China. Whatever the Chinese factions and politicians opposing Peking may say against it, there can be no question about that. To realize this fact we must know what China did at the Peace Conference at Paris.

At Paris China demanded the unconditional restitution of Kiaochow and the Shantung Railway. But when it became evident that this demand was going to be turned down by the Conference, China quietly approached Japan with a modified claim. The main features of that proposal were the conversion of the Shantung Railway into a Chino-Japanese joint enterprise and the establishment at Tsingtao of an international settlement instead of an exclusive Japanese settlement. China urged, almost implored, Japan to settle the Shantung question on these terms. The Japanese statesmen undoubtedly had the wit to see the wisdom of accepting the Chinese proposal, and thus end the controversy then and there. But the statesmen and diplomats had not

the courage to take the action which they knew ran directly counter to the popular wish. The masses of Japan, intoxicated with their military and commercial successes in Shantung, and confident of the recognition of their rights at the Peace Conference, urged their Government and its delegates at Paris to take a firm attitude and make no concessions. The only alternative to their acquiescence in this popular clamor would have been the downfall of the cabinet. The Japanese statesmen, rather than face a ministerial crisis, danced to the music of the masses and turned deaf ears to the Chinese overture. For the moment that appeared a victory for Japanese diplomacy. As a matter of fact, it sowed the seeds of trouble from which the Japanese delegation at Washington has reaped a harvest of defeat.

Soon after the Paris Conference, Japan invited Peking to enter into negotiations for the purpose of determining terms on which she would return the former German rights to China. By this time the situation had become extremely complicated, mainly because the Republican Senate at Washington had taken up cudgels against Japan, or rather against Mr. Wilson, which encouraged China to believe that the American Senate would eventually compel Japan unconditionally to surrender Kiaochow and all that went with it. Undoubtedly this encouragement was fostered by American advisers to China who conducted vigorous propaganda among the Senators and before the American public. Heartened by this, China declined the Japanese invitation to negotiate. Japan, eager to settle the matter, patiently repeated the invitation two or three times, modifying her terms a little each time in favor of China. By September, 1921, she was impelled to offer to China the very terms on which the latter had implored Japan

to settle the dispute at the Paris Conference. And yet the Chinese Government declined to negotiate-so completely had the tables been turned against Japan. Each concession made by Tokyo must have appeared to Peking a promise for further concessions. I can well imagine how the diplomats at Peking smiled in their sleeves each time Japan came forth with modified terms.

While the matter was in this unsettled condition, there came to China an invitation to the Washington Conference. To her that invitation was heaven-sent. Surely the Republican leaders, who had so vigorously championed her cause, would help win her fight for Shantung. It was in this hope that China sent her delegates to the Conference. Of course, the Chinese were not guileless enough to ignore the fact that much of the heat for the Shantung debate in the American Senate proceeded from motives of domestic politics, and that America would hesitate to pick China's chestnuts out of the fire at the risk of burning her fingers. The Chinese delegates, therefore, never thought that they could get at this Conference anything like the unconditional surrender of Kiaochow, or the Shantung Railway, but they at least hoped that at Washington the Japanese might be induced to make concessions more favorable to China than they would make at Peking. That this hope has been fulfilled is plainly shown in the treaty just announced.

I need not dwell upon the details of the treaty, for it explains itself. (See Appendix II, section D.) In the main the agreement follows the lines mapped out in Japan's last memorandum addressed to China on September 7, 1921, although Japan has made more sweeping concessions than in that memorandum. (See Appendix II, section C.)

The ratifications of the treaty are to be exchanged

at Peking not later than four months from February 3, the date on which the treaty will be signed at the PanAmerican Union by the representatives of Japan and China. Japan is to transfer to China the administration, as well as the public properties, of Kiaochow within six months after the treaty comes into effect. The Japanese troops, including those along the TsintaoTsinanfu Railway, are to be withdrawn as soon as the Chinese police or military are provided to take over the protection of the railway. This may be done in sections, the date in each instance to be arranged in advance beween the Chinese and Japanese authorities, and the complete withdrawal to be effected within three months, if possible, and not later than six months after the signing of the treaty.

The Japanese garrison at Tsingtao is to be withdrawn simultaneously, if possible, with the transfer of the administration of the leased territory, and in any case within thirty days thereafter. The Japanese wireless stations at Tsingtao and Tsinanfu are to be transferred to China upon the withdrawal of the Japanese troops from those cities. The customs house at Tsingtao is to become an integral part of the Chinese maritime customs as soon as the treaty comes in force.

As to the railway, which has been the crux of the whole question, China undertakes to pay Japan 53,406,141 gold marks, the value placed on the road by the reparations commission under the Treaty of Versailles, plus Japanese expenditures for permanent improvements and additions, minus an allowance for depreciation. A joint Chino-Japanese commission will be appointed to agree on these values.

The actual transfer of the railway properties is to be completed as soon as possible, and not later than nine months after the treaty becomes effective. Pay