for the building of her innumerable factories, machinery for her extensive transportation systems and machinery for all her public utilities. Let us see how this new demand for machinery will help in the readjustment of war industries. The workshops that turn out cannon can easily be made to turn out steam rollers for the construction of roads in China. The workshops that turn out tanks can be made to turn out trucks for the transportation of the raw materials that are lying everywhere in China. And all sorts of warring machinery can be converted into peaceful tools for the general development of China's latent wealth. The Chinese people will welcome the development of our country's resources provided that it can be kept out of Mandarin corruption and ensure the mutual benefit of China and of the countries coöperating with us.

It might be feared by some people in Europe and America that the development of China by war machinery, war organization and technical experts might create unfavorable competition to foreign industries. I, therefore, propose a scheme to develop a new market in China big enough both for her own products and for products from foreign countries. The scheme will be along the following lines:

I. The Development of a Communications System.

(a) 100,000 miles of Railways.

(b) 1,000,000 miles of Macadam Roads.

(c) Improvement of Existing Canals.

(1) Hangchow-Tientsin Canals.

(2) Sikiang-Yangtze Canals.

(d) Construction of New Canals.

(1) Liaoho-Sunghwakiang Canal.

(2) Others to be projected.

(e) River Conservancy.

(1) To regulate the Embankments and Channel of the Yangtze River from Hankow to the Sea thus facilitating Ocean-going Ships to reach that port at all seasons.

(2) To regulate the Hoangho Embankments and Channel to prevent floods.

(3) To regulate the Sikiang.

(4) To regulate the Hwaiho.

(5) To regulate various other rivers.

(f) The Construction of more Telegraph Lines and Telephone and Wireless Systems all over the Country.

II. The Development of Commercial Harbors.

(a) Three largest Ocean Ports with future capacity equalling New York Harbor to be constructed in North, Central and South China.

(b) Various small Commercial and Fishing Harbors to be constructed along the Coast.

(c) Commercial Docks to be constructed along all navigable rivers.

III. Modern Cities with public utilities to be constructed in all Railway Centers, Termini and alongside Harbors.

IV. Water Power Development.

V. Iron and Steel Works and Cement Works on the largest scale in order to supply the above needs.

VI. Mineral Development.

VII. Agricultural Development.

VIII. Irrigational Work on the largest scale in Mongolia and Sinkiang.

IX. Reforestation in Central and North China.

X. Colonization in Manchuria, Mongolia, Sinkiang, Kokonor, and Thibaut.

If the above program could be carried out gradually, China will not only be the "Dumping Ground" for foreign goods but actually will be the "Economic Ocean" capable of absorbing all the surplus capital as quickly as the Industrial Nations can possibly produce by the coming Industrial Revolution of Nationalized Productive Machinery. Then there will be no more competition and commercial struggles in China as well as in the world.

The recent World War has proved to Mankind that war is ruinous to both the Conqueror and the Conquered, and worse for the Aggressor. What is true in military warfare is more so in trade warfare. Since President Wilson has proposed a League of Nations to end military war in the future, I desire to propose to end the trade war by coöperation and mutual help in the Development of China. This will root out probably the greatest cause of future wars.

The world has been greatly benefited by the development of America as an industrial and a commercial Nation. So a developed China with her four hundred millions of population, will be another New World in the economic sense. The nations which will take part in this development will reap immense advantages. Furthermore, international coöperation of this kind cannot but help to strengthen the Brotherhood of Man. Ultimately, I am sure, this will culminate to be the keystone in the arch of the League of Nations.

In order to carry out this project successfully I suggest that three necessary steps must be taken: First, that the various Governments of the Capital-supplying Powers must agree to joint action and a unified policy to form an International Organization with their war work organizers, administrators and experts of various lines to formulate plans and to standardize materials in order to prevent waste and to facilitate work. Second, the confidence of the Chinese people must be secured in order to gain their coöperation and enthusiastic support. If the above two steps are accomplished, then the third step is to open formal negotiation for the final contract of the project with the Chinese Government. For which I suggest that it be on the same basis as the contract I once concluded with the Pauling Company of London, for the construction of the Canton-Chungking Railway, since it was the fairest to both parties and the one most welcomed by the Chinese people, of all contracts that were ever made between China and the foreign countries.

And last but not least, a warning must be given that mistakes such as the notorious Sheng Shun Hwai's nationalized Railway Scheme in 1911 must not be committed again. In those days foreign bankers entirely disregarded the will of the Chinese people, and thought that they could do everything with the Chinese Government alone. But to their regret, they found that the contracts which they had concluded with the Government, by heavy bribery, were only to be blocked by the people later on. Had the foreign bankers gone in the right way of first securing the confidence of the Chinese people, and then approaching the Government for a contract, many things might have been accomplished without a hitch. Therefore, in this International Project we must pay more attention to the people's will than ever before.

If my proposition is acceptable to the Capital-supplying Powers, I will furnish further details.

PROGRAM I

The industrial development of China should be carried out along two lines: (1) by private enterprise and (2) by national undertaking. All matters that can be and are better carried out by private enterprise should be left to private hands which should be encouraged and fully protected by liberal laws. And in order to facilitate the industrial development by private enterprise in China, the hitherto suicidal internal taxes must be abolished, the cumbersome currency must be reformed, the various kinds of official obstacles must be removed, and transportation facilities must be provided. All matters that cannot be taken up by private concerns and those that possess monopolistic character should be taken up as national undertakings. It is for this latter line of development that we are here endeavoring to deal with. In this national undertaking, foreign capital have to be invited, foreign experts and organizers have to be enlisted, and gigantic methods have to be adopted. The property thus created will be state owned and will be managed for the benefit of the whole nation. During the construction and the operation of each of these national