interference with the Koreans, whom she had always left to their own resources, but to counteract Japanese action, and compel the withdrawal of the invading force. Japan thereupon occupied Seoul, and held the king prisoner. The Chinese replied by despatching a large body of troops to Korea by sea, issuing a declaration of war upon Japan the while.

The combatants met at Asan on the 29th July, where the Chinese proved the victors, while a Japanese cruiser encountered a British vessel named the Kowshing, which was conveying 1500 Chinese troops to Korea, and sunk her. The Japanese defeated the Chinese at Ping Yang on the 17th August, and a great naval battle was fought by the rival fleets off the mouth of the Yalu river on the 19th September. The fleets were as nearly as possible of equal strength, but the Japanese won an easy victory, sinking four Chinese vessels and losing none of their own. On this, Japan, which had been making gigantic exertions to carry the war to a successful issue, sent 40,000 troops to the Liaotung Peninsula, where they landed and captured Port Arthur. Kinchow and Talienwan were occupied, the Chinese fleet destroyed, and Wei Hai Wei taken. Newchang was also seized, and Formosa and the Pescadores taken possession of. At this juncture the European Powers intervened, with the result that Li Hung Chang was appointed special envoy to negotiate a treaty of peace.

This was concluded at Shimonoseki on the 17th April, 1895, and embodied the following conditions :

The recognition of the full and complete independence of Korea by China.

The cession of the Liaotung Peninsula to Japan.

The cession of Formosa and the Pescadores islands to the same Power.

The payment to Japan of an indemnity of 200,000,000 taels. The opening of Shashih, Chungking, Suchow, and Hangchow to foreign trade.

The opening of the Upper Yangtse and the Woosung rivers to navigation.

The occupation of Wei Hai Wei by Japan until the whole of the indemnity is paid.

THE SHIMONOSEKI TREATY

49

Onerous as were the terms of this treaty, Li Hung Chang accepted them without demur. He had as a matter of fact previously come to an understanding with the Russian representative at Peking, by which the intervention of the Tsar was promised to prevent the permanent occupation of the Chinese mainland by Japan, and he knew that the most important clause in the treaty would not be allowed to be carried out.

Six days after the signing of the treaty, a joint note was forwarded to Peking by the Russian, German and French governments, protesting against the cession of the Liaotung peninsula; and as Great Britain did not offer to support Japan, that country felt constrained to abide by the objections raised, and consented to abandon its claim on the mainland, in return for an increased indemnity.

was

In 1896 Li Hung Chang was sent to represent China at the Coronation of Tsar Nicholas II. Before leaving Peking the viceroy of Pechili had a series of interviews with Count Cassini, the Russian minister at Peking, with whom he negotiated a secret treaty, which subsequently ratified by Prince Lobanow, the Russian minister for foreign affairs. The terms of this treaty, known as the Cassini convention, have never been officially published, but it is known that they included guarantees to China for the integrity of the empire, especially in the event of any further attempt on the part of Japan to obtain a footing on the mainland; while China bound herself to afford facilities for the construction of a system of Russian railways through Manchuria, together with certain contingent rights along the coast lines of Northern China.

In November, 1897, two German missionaries were murdered in the province of Shantung; and immediately the outrage became known, a German squadron anchored off the harbour of Kiao Chau and landed troops, which occupied the town of that name. After a series of negotiations, Germany demanded the cession of Kiao Chau for the purpose of a naval base, in compensation for

E

the crime; and, powerless to resist, China acceded to the demand, with the result that Germany set about fortifying the harbour, and preparing to turn the place into a German colony.1

The occupation of Kiao Chau, though now supposed to have been achieved after arriving at an understanding on the subject with Russia, was made the excuse for the airing of a grievance by that country. It was urged that the obtaining of a naval base by Germany in Northern China had disturbed the political status quo, and affected Russian interests adversely. Accordingly, Russia occupied Port Arthur on the 18th December, in compensation for the grievance complained of; and meeting the inquiries of Great Britain first by the announcement that she only intended using the place for the purpose of wintering her fleet there, and later by a pledge that the place had been leased for the purpose of an ice-free harbour which would remain open to the navies of the world, she hastened to reconstruct the range of forts which had been destroyed in the war with Japan, placed powerful guns on the surrounding heights, filled the town with troops, and closed the harbour to all except her own vessels.2

Thus, after protesting against the retention of the Liaotung peninsula by Japan, Russia herself occupied the very spot from which she had caused her neighbours to be ousted, and she has hastened to take the steps necessary to convert the place into a naval port which may be regarded as well nigh impregnable. The full significance of this step has not yet been made apparent, but the additional strength achieved by Russia in China waters by the occupation of Port Arthur cannot be over estimated.

Having secured a footing in Northern China, Russia hastened to produce an agreement made in 1896, according her a concession for the construction of a railway through Manchuria, uniting the trans-Siberian Railway at Chita near Nerchinsk, with Vladivostok, and a branch line running north and south between Tsitsihar and Port Arthur. This undertaking enables Russia to dominate 1 See Appendix B. 2 See Appendix B.

RAILWAY CONCESSIONS

51

the whole of Manchuria, besides placing her in possession of a direct route to Peking, and at once gives her a predominance in Northern China which places Great Britain and the other Powers at a marked disadvantage.

This fact served to stir up the ambitions of the other countries possessing an interest in China; and the year 1898 witnessed a keen struggle between the contending concessionaires for the authorisation of rival schemes for the construction of railways which might tend to bring about the development of the trade and resources of China. Among the concessions granted, the following are the most important.

A concession to a nominally Belgian syndicate, for the construction of a trunk line of railway between Peking and and Hankow on the Yangtse-kiang. This railway, which is destined to play a very important part in the future of China, is understood to be really a Russian venture, which was placed in the hands of Belgian nominees in order to obviate any objection on the part of Great Britain.

A railway, to be built by a British syndicate, between Tientsin and Chinkiang.

A line, vested in a French company, uniting Hankow with Canton.

A railway, to be constructed by the British goverment, from the Burmese frontier via Yunnan to Suifu on the upper Yangtse.

A line, uniting Ningpo and Hankow with Shanghai, by a British syndicate.

A branch railway between the " Belgian line at Chengting and Siganfu.

An extension of the existing Peking-Tientsin line northwards to Newchang, by a Chinese company, in British hands.

A railway between Shanghai and Nanking, in English hands.

A line, to be constructed by German capitalists, uniting Tsinanfu and Ichaufu with Kiao Chau.

The amount of capital necessary for the construction of these railways is of course very large, and

their completion could not, even if the works are vigorously pushed on, be looked for till many years were past. But, up to the present, very little has been done in the way of construction. So far as is known, the only schemes which are in active progress, are the extremities of the Luhan line, which is vested in the Belgian syndicate, and the extension of the Tientsin railway, which is now known as the Northern Railway of China. The construction of this last has been the cause of a good deal of friction between the Russian authorities and the British government. The former claimed that they hold the sole concession for railway construction north of the Great Wall, and sought to obtain a cancellation of the concession to the British company entrusted with the work beyond that point. The dispute, which at one time appeared likely to become serious, was eventually settled in favour of this country, though it is possible that the last has not yet been heard on the subject.

Of the vastness of the possibilities open to railways in China, there can be no two opinions. Owing to the density of the population the prospects of traffic on working lines are immense; and notwithstanding the suspicion with which the first railways were regarded, the Chinese have already taken kindly to the method of transport; and the two lines now running, that between Peking and the coast, and from Shanghai to Wusung, are both doing an enormous trade.

new

In their commercial and political aspect, the future of railways in China is assured. Their influence on trade would be difficult to over estimate, while as a means of accustoming the natives to progress, and intercourse with foreigners, they must have an enormous bearing. Notwithstanding the pessimistic attitude assumed on more than one occasion by Lord Salisbury towards Chinese railway concessions, I make bold to opine that these undertakings will do more than any other to open up the country, and to bring the people in touch with Europeans.