new Japanese owned railway—owned by the government, not by a private corporation, and guarded by Japanese soldiers. Of the forty mines, the Japanese have worked their way, in only four years, into all but four. Different methods are used. The simplest is, of course, discrimination in the use of the railway for shipping. Downright refusal to furnish cars while competitors who accepted Japanese partners got them, is one method. Another more elaborate method is to send but one car when a large number is asked for, and then when it is too late to use cars, send the whole number asked for or even more, and then charge a large sum for demurrage in spite of the fact the mine no longer wants them or has cancelled the order. Redress there is none.

Tsinan has no special foreign concessions. It is, however, a “treaty port” where nationals of all friendly powers can do business. But Po-shan is not even a treaty port. Legally speaking no foreigners can lease land or carry on any business there. Yet the Japanese have forced a settlement as large in area as the entire foreign settlement in the much larger town of Tsinan. A Chinese refused to lease land where the Japanese wished to relocate their railway station. Nothing happened to him directly. But merchants could not get shipping space, or receive goods by rail. Some of them were beaten up by thugs. After a time, they used their influence with their compatriot to lease his land. Immediately the persecutions ceased. Not all the land has been secured by threats or coercion; some has been leased directly by Chinese moved by high prices, in spite of the absence of any legal sanction. In addition, the Japanese have obtained control of the electric light works and some pottery factories, etc.

Now even admitting that this is typical of the methods by which the Japanese plant themselves, a natural American reaction would be to say that, after all, the country is built up industrially by these enterprises, and that though the rights of some individuals may have been violated, there is nothing to make a national, much less an international fuss about. More or less unconsciously we translate foreign incidents into terms of our own experience and environment, and thus miss the entire point. Since America was largely developed by foreign capital to our own economic benefit and without political encroachments, we lazily suppose some such separation of the economic and political to be possible in China. But it must be remembered that China is not an open country. Foreigners can lease land, carry on business, and manufacture only in accord with express treaty agreements. There are no such agreements in the cases typified by the Po-shan incident. We may profoundly disagree with the closed economic policy of China, or we may believe that under existing circumstances it represents the part of prudence for her. That makes no difference. Given the frequent occurrence of such economic invasions, with the backing of soldiers of the Imperial Army, with the overt aid of the Imperial Railway, and with the refusal of Imperial officials to intervene, there is clear evidence of the attitude and intention of the Japanese government in Shantung.

Because the population of Shantung is directly confronted with an immense amount of just such evidence, it cannot take seriously the professions of vague diplomatic utterances. What foreign nation is going to intervene to enforce Chinese rights in such a case as Po-shan? Which one is going effectively to call the attention of Japan to such evidences of its failure to carry out its promise? Yet the accumulation of precisely such seemingly petty incidents, and not any single dramatic great wrong, will secure Japan’s economic and political domination of Shantung. It is for this reason that foreigners resident in Shantung, no matter in what part, say that they see no sign whatever that Japan is going to get out; that, on the contrary, everything points to a determination to consolidate her position. How long ago was the Portsmouth treaty signed, and what were its nominal pledges about evacuation of Manchurian territory?

Not a month will pass without something happening which will give a pretext for delay, and for making the surrender of Shantung conditional upon this, that and the other thing. Meantime the penetration of Shantung by means of railway discrimination, railway military guards, continual nibblings here and there, will be going on. It would make the chapter too long to speak of the part played by manipulation of finance in achieving this process of attrition of sovereignty. Two incidents must suffice. During the war, Japanese traders with the connivance of their government gathered up immense amounts of copper cash from Shantung and shipped it to Japan against the protests of the Chinese government. What does sovereignty amount to when a country cannot control even its own currency system? In Manchuria the Japanese have forced the introduction of several hundred million dollars of paper currency, nominally, of course, based on a gold reserve. These notes are redeemable, however, only in Japan proper. And there is a law in Japan forbidding the exportation of gold. And there you are.

Japan itself has recently afforded an object lesson in the actual connection of economic and political rights in China. It is so beautifully complete a demonstration that it was surely unconscious. Within the last two weeks, Mr. Obata, the Japanese minister in Peking, has waited upon the government with a memorandum saying that the Foochow incident was the culminating result of the boycott; that if the boycott continues, a series of such incidents is to be apprehended, saying that the situation has become “intolerable” for Japan, and disavowing all responsibility for further consequences unless the government makes a serious effort to stop the boycott. Japan then immediately makes certain specific demands. China must stop the circulation of handbills, the holding of meetings to urge the boycott, the destruction of Japanese goods that have become Chinese property—none have been destroyed that are Japanese owned. Volumes could not say more as to the real conception of Japan of the connection between the economic and the political relations of the two countries. Surely the pale ghost of “Sovereignty” smiled ironically as he read this official note. President Wilson after having made in the case of Shantung a sharp and complete separation of economic and political rights, also said that a nation boycotted is within sight of surrender. Disassociation of words from acts has gone so far in his case that he will hardly be able to see the meaning of Mr. Obata’s communication. The American sense of humor and fair-play may however be counted upon to get its point.

January, 1920.