# Report of the Commission of Enquiry/Chapter 2

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Chapter II.
MANCHURIA.
DESCRIPTION, RELATIONS WITH THE REST OF CHINA AND WITH RUSSIA.
1. Description.
IntroductoryManchuria, which is known in China as the Three Eastern Provinces, a large. fertile region only forty years ago almost undeveloped and even now still under-populated, has assumed an increasingly important role in the solution of the surplus population problems of China and Japan. The provinces of Shantung and Hopei have poured millions of destitute farmer's into Manchuria, while Japan has exported to that country her manufactured articles and capital. in exchange for food supplies and raw materials. In providing for the respective needs of China and Japan, Manchuria has proved the usefulness of their partnership. Without Japan's activity. Manchuria could not have attracted and absorbed such a large population. Without the influx of Chinese farmers and labourers, Manchuria could not have developed so rapidly. providing Japan thereby with a market and with supplies of food, fertilisers. and raw materials.
Manchuria a coveted region, first on account of its strategic advantages, subsequently on account of agricultural and mineral resources.Yet, Manchuria, so largely dependent on co-operation, was destined, for reasons already indicated, to become a region of conflict: at first between Russia and Japan, later between China and her two powerful neighbours. At first, Manchuria entered into this great conflict of policies only as an area, the occupation of which was thought to imply domination of Far-Eastern politics. it became coveted for its own sake later, when its agricultural, mineral and forestry resources had been discovered. Exceptional treaty rights were acquired in the first instance by Russia at the expense of China. Those which concerned South Manchuria were subsequently transferred to Japan. The use of the privileges so acquired became more and more instrumental in furthering the economic development of South Manchuria. Strategical considerations have remained paramount, but the extensive economic interests resulting from the active part taken ​by Russia and Japan in the development of Manchuria found an ever-increasing insistence in the foreign policy of these two countries.
Occupation of the soil by Chinese farmers.China at first showed little activity in the field of development. She almost allowed Manchuria to pass from her control to that of Russia. Even after the Treaty of Portsmouth, which reaffirmed her sovereignty in Manchuria, the economic activities of Russia and Japan in developing those provinces ﬁgured more prominently than her own in the eyes of the world. Meanwhile the immigration of millions of Chinese farmers settled the future possession of the land. This immigration was in fact an occupation—peaceful. inconspicuous, but none the less real. While Russia and Japan were engaged in delimiting their respective spheres of interest in North and South Manchuria, Chinese farmers took possession of the soil and Manchuria is now unalterably Chinese. In such circumstances. China could afford to wait for a favourable opportunity to reassert her sovereign rights. The Russian revolution of 1917 gave her that opportunity in North Manchuria. She began to take a more active part in the government and development of the country, which had been so long neglected. In recent years she has tried to diminish Japan's influence in South Manchuria. Growing friction resulted from that policy, the culminating point of which was reached on September 18th, 1931.
Population.The total population is estimated at about 30,000,000, of whom 28,000,000 are said to be Chinese or assimilated Manchus. The number of Koreans is put at 800,000, of whom a large number are congregated in the so-called Chientao District on the Korean border, the remainder being widely scattered in Manchuria. Mongol tribes live in the pasture lands bordering Inner Mongolia, their number being small. There may be about 150,000 Russians in Manchuria, most of them living in the area along the Chinese Eastern Railway, especially at Harbin. About 230,000 Japanese are mainly concentrated in the settlements along the South Manchuria Railway and in the Kwantung Leased Territory (Liaotung Peninsula). The total number of Japanese, Russians and other foreigners (excluding Koreans) in Manchuria does not exceed 400,000.
Area.Manchuria is a vast country with an area as large as that of France and Germany taken together, estimated at about 380,000 square miles. In China it is always referred to as the "Three Eastern Provinces" because of its administrative division into the three provinces of Liaoning (or Fengtien) in the South, Kirin in the East, and Heilungkiang in the North. Liaoning is estimated to have an area of 70,000 square miles, Kirin of 100,000, Heilungkiang of over 200,000.
Geography.Manchuria is continental in its characteristics. There are two mountain ranges, the Changpai Range in the south-east and the Great Khingan Range in the north-west. Between these tw0 mountain ranges lies the great Manchurian plain, of which the northern part belongs to the basin of the Sungari River and the southern part to that of the Liao River. The watershed between them, which has some historical importance, is a range of hills dividing the Manchurian plain into a northern and a southern part.
Manchuria is bounded on the west by the province of Hopeh and by Outer and Inner Mongolia. Inner Mongolia was formerly divided into thm special administrative areas—Jehol, Chahar and Suiyuan—which were given the full status of provinces by the National Government in 1928. Inner Mongolia, and more especially Jehol, has always had relations with Manchuria, and exercises some influence in Manchurian aﬂairs. On the north-west, north-east, and east, Manchuria is bounded by the Siberian provinces of the U.S.S.R.. on the south-east by Korea, and on the south by the Yellow Sea. The southern end of the Liaotung Peninsula has been held by Japan since 1905. Its area is over 1,300 square miles, and it is administered as a Japanese leased territory. In addition, Japan exercises ​certain rights over a narrow strip of land, which extends beyond the Leased Territory, and which contains the lines of the South Manchuria Railway. The total area is only 108 square miles, whereas the length of the lines is 690 miles.
Economic resources.The soil of Manchuria is generally fertile, but its development is dependent on transportation facilities. Many important towns flourish along its rivers and railways. Formerly, development was practically dependent on the river system, which is still of much importance, though the railways have now taken the first place as a means of transport. The production of important crops. such as soya beans, kaoliang, wheat, millet, barley, rice, oats, has doubled in fifteen years. In 1929, these crops were estimated at over 876,000,000 bushels. According to estimates given in the Manchurian Year-Book, 1931, only 12.6 per cent of the total area has been brought under cultivation in 1929. whereas ﬂat per cent was cultivable. A large increase of production may therefore be expected in the future if economic conditions improve. The total value of the agricultural products of Manchuria for the year 1928 was estimated at over £130,000,000 sterling. A large part of the agricultural produce is exported. Pongee or tussah silk is another important article of export from Manchuria.
Timber and mineralsThe mountainous regions are rich in timber and minerals, especially coal. Important deposits of iron and gold are also known to exist, while large quantities of oil shale, dolomite, magnesite. limestone, fireclay, steatite, and silica of excellent quality have been found. The mining industry may therefore be expected to become of great importance.
2. Relations with the Rest of China.
Early history of the fall of the Manchu Dynasty.Manchuria has, since the dawn of history, been inhabited by various Tungus tribes, who mixed freely with Mongol Tartars. Under the influence of Chinese immigrants of superior civilisation they learned to organise themselves and established several kingdoms which sometimes dominated the greater part of Manchuria and some northern districts in China and Korea. The Liao. Chin, and Manchu Dynasties even conquered large parts or the whole of China over which they ruled for centuries. China, on the other hand. under strong emperors, was able to stem the tide from the North, and in her turn to establish sovereignty over large parts of Manchuria. Colonisation by Chinese settlers was practised at a very early date. Various Chinese towns which radiated the influence of Chinese culture through the surrounding districts date from the same early time. For two thousand years a permanent foothold has been maintained, and Chinese culture has always been active in the southernmost part of Manchuria. The influence of this culture had become very strong during the rule of the Ming Dynasty (1368-1644). whose authority extended over practically the whole of Manchuria. The. Manchus were. permeated by Chinese culture and had amalgamated to a great extent with the Chinese before they overthrew the Ming administration in Manchuria in 1616. and in 1628 passed the Great Wall to conquer China. In the Manchu Army were large numbers of Chinese who were organised in separate military units known as Chinese Banners.
After the conquest, the Manchus quartered their garrisons in the more important cities of China, forbade Manchus to engage in certain professions, prohibited intermarriage between Manchus and Chinese, and restricted the immigration of Chinese into Manchuria and Mongolia. These measures were inspired more by political than by racial discrimination. and aimed at safeguarding the permanent dominance of the dynasty. They did not ​affect the numerous Chinese Bannermen, who enjoyed practically the same privileged status as the Manchus themselves.
The exodus of the Manchus and their Chinese allies greatly reduced the population of Manchuria. However, in the South, Chinese communities continued to exist. From this foothold a few settlers spread across the central part of Fengtien province. Their number was increased by a continuous infiltration of immigrants from China, who succeeded in evading the exclusion laws or who had profited by their modifications from time to time. Manchus and Chinese became still more amalgamated, and even the Manchu language was virtually replaced by Chinese. The Mongols, however, were not assimilated but pushed back by the advancing immigrants. Finally, to stem the Russian advance from the North, the Manchu Government decided to encourage Chinese immigration. In 1878, various parts of Manchuria were accordingly opened and various forms of encouragement given to immigrants, with the result that, at the time of the Chinese Revolution in 1911, the population of Manchuria was estimated at 18,000,000.
In 1907, a few years only before its abdication, the Manchu Dynasty had decided to reform the administration in Manchuria. These provinces had hitherto been administered as a separate, extra-mural dominion, with its own form of government. The Chinese practice of entrusting the civil administration in the provinces to scholars who had passed the competitive examinations had not been followed in Manchuria, which had been placed under a purely military regime in which Manchu officials and traditions were maintained. In China, officials were not allowed to hold office in their native province. Each Manchurian province had a military governor, who exercised complete power in civil as well as in military matters. Later, attempts had been made to separate military and civil administration. The results were not satisfactory. The demarcation of the respective spheres of authority was not adequate; misunderstandings and intrigues were frequent and inefficiency resulted. In 1907, therefore, this attempt was given up. The three military governors were replaced by a Viceroy for all Manchuria, with the object of centralising authority, especially in the domain of foreign policy. Provincial civil governors under the control of the Viceroy were in charge of provincial administration. This reorganisation prepared the way for the later administrative reforms which introduced the Chinese system of provincial government. These last measures of the Manchus were very effective, thanks to the able administrators in charge of Manchurian affairs after 1907.
After the fall of the Manchu Dynasty.When the Revolution broke out in 1911, the Manchurian authorities who were not in favour of the Republic succeeded in saving these provinces from the turmoil of civil war by ordering Chang Tso-lin, who was later to become the dictator of both Manchuria and North China, to resist the advance of the revolutionary troops. When the Republic had been established, the Manchurian authorities accepted the fait accompli and voluntarily followed the leadership of Yuan Shih-kai, who was chosen the first President of the Republic. To each province both civil and military governors were appointed. In Manchuria, as in the rest of China, the military governors soon succeeded in putting their civil colleagues into the background.
1916. Chang Tso-lin appointed Governor of Fengtien province.In 1916, Chang Tso-lin was appointed military governor of Fengtien province, concurrently acting as civil governor. His personal influence extended much further. When the question arose of declaring war against Germany, be joined the military leaders in China in their request to dissolve the Parliament which had opposed that measure. When the request was rejected by the President, he declared his province independent from the Central Government at Peking. Later, he withdrew that declaration and in 1918, in recognition of his service to the Central Government, he was appointed Inspector-General of all Manchuria. In this way Manchuria again became an administrative unit with its own special regime.
​1922. He severs allegiance to Central Government at Peking.Chang Tso-lin accepted the honours accorded by the Central Government, but his attitude from time to time depended on the nature of his personal relations with the military leaders who controlled the changing central authorities. He seems to have looked upon his relations with the Government in the sense of a personal alliance. In July 1922, when he failed to establish his authority south of the Great Wall and saw his rivals taking control of the Peking Government, he renounced allegiance to the Central Government and maintained complete independence of action in Manchuria until he extended his authority south of the Wall and became master of Peking as well. He expressed his willingness to respect foreign rights, and accepted the obligations of China, but he requested foreign Powers to negotiate henceforth directly with his administration in all matters concerning Manchuria.
The Mukden Agreement with U.S.S.R. 1924.Accordingly, he repudiated the Sino-Soviet Agreement of May 31st, 1921, though very advantageous to China, and persuaded the U.S.S.R. to conclude a separate agreement with him in September 1924. It was virtually identical with that of May 31st, 1924, with the Central Government. This fact emphasised Chang Tso-lin's insistence on the recognition of his complete independence of action, both in domestic and foreign policy.
Marshal Chang Tso-lin defeats General Wu Pei-fu.In 1924, he invaded China again and was successful, because General (now Marshal) Feng Yu-hsiang abandoned his superior, General (now Marshal) Wu Pei-fu, at a critical moment in the campaign. The immediate result was the overthrow of the Central Government and the expansion of Marshal Chang's influence as far south as Shanghai.
Mutiny of Kuo Sung-lin. 1925.In 1925, Marshal Chang had again to resort to arms, this time against his late ally, General Feng. In this campaign one of this commanders, Kuo Sung-lin, abandoned him at a most critical moment in favour of General Feng. The mutiny of Kuo Sung-lin in November 1925 was of more than passing interest, because it involved both the U.S.S.R. and Japan, the action of the former having been indirectly of advantage to General Feng and that of the latter to Marshal Chang. Kuo Sung-lin, though a subordinate of the Marshal, shared General Feng's views about social reform, and turned against his superior in the belief that his downfall was necessary to put an end to civil war. This defection put the Marshal in a most critical position. Kuo Sung-lin was in possession of the territory west of the railway and the Marshal was at Mukden with greatly reduced forces. At this moment, Japan, in her own interests in South Manchuria, declared a neutral zone of 20 li (7 miles) on each side of the South Manchuria Railway, across which she would allow no troops to pass. This prevented Kuo Sung-lin from advancing against the Marshal and allowed time for the reinforcements from Heilungkiang to reach him. They were delayed by the action of the Soviet railway authorities, who refused to allow them to travel over the railway without first paying their fares in cash, but they managed to travel by another route.
The arrival of these reinforcements and the more or less open help given by the Japanese settled the campaign in the Marshal's favour. Kuo Sung-lin was defeated and General Feng was forced to withdraw and to abandon Peking to Marshal Chang. Marshal Chang resented the action of the authorities of the Chinese Eastern Railway on this occasion and left no stone unturned to retaliate by continuous encroachments on the rights of this railways. The experience provided by this incident appears to have been an important factor in causing him to build an independent railway system connecting the three provincial capitals of Manchuria.
Meaning of Manchurian independence.The independence declared by Marshal Chang Tso-lin at different times never meant that he or the people of Manchuria wished to be separated from China. His armies did not invade China as if it were a foreign country, but merely as participants in the civil war. Like the war lords of any other province, the Marshal alternately supported, attacked, or declared ​his territory independent of the Central Government, but never in such a way as to involve the partition of China into separate States. On the contrary, most Chinese civil wars were directly or indirectly connected with some ambitious scheme to unify the country under a really strong Government. Through all its wars and periods of "independence", therefore, Manchuria remained an integral part of China.
Chang Tso-Un and the Kuomintang.Although Marshal Chang Tso-lin and the Kuomintang had been allies in the wars against Wu Pei-fu, the former did not himself accept the doctrines of the Kuomintang. He did not approve of the constitution as desired by Dr. Sun, as it did not seem to him to harmonise with the spirit of the Chinese people; but he desired the unification of China, and his policy with regard to the spheres of interest of the U.S.S.R. and Japan in Manchuria shows that he would have liquidated both if he could have done so. Indeed, he almost succeeded in accomplishing this in the case of the sphere of the U.S.S.R. and initiated the policy of railway construction already referred to, which was to cut off the South Manchuria Railway from some of its feeder districts. This attitude towards U.S.S.R. and Japanese interests in Manchuria may be attributed partly to impatience at the limitations of his authority in dealing with these countries and partly to the resentment which he shared with all shades of Chinese opinion regarding the privileged position of foreigners in China. In fact, in November 1924, he invited Dr. Sun to a re-organisation conference in the programme of which the latter wanted to include the improvement of the standard of living, the convening of a national convention, and the abolition of unequal treaties. Dr. Sun's fatal illness prevented this conference from taking place; but his proposals suggest a certain understanding with the Marshal and a possible basis of agreement between them with regard to the foreign policy of their country.
Last years of Chang Tso-lin.In the last years of his life, Marshal Chang Tso-lin showed increasing unwillingness to allow Japan to profit by the privileges she derived from various treaties and agreements. Their relations at times became somewhat strained. Japanese advice that he should keep out of the factional strife in China and concentrate his energy on the development of Manchuria he resented and disregarded, as did his son after him. After the defeat of General Feng, Chang Tso-lin became the chief of the alliance of the Northern militarists, with the title of Great Marshal.
In 1928, he suffered defeat at the hands of the Kuomintang Army in their Northern Expedition referred to in Chapter I, and was advised by Japan to withdraw his armies into Manchuria before it was too late. The declared object of Japan was to save Manchuria from the evils of civils war which would have resulted from the entry of a defeated army pursued by its victors.
Death of Marshal Chang Tso-lin, June 4th, 1928.The Marshal resented the advice, but was obliged to follow it. He left Peiping (formerly Peking) on June 3rd, 1928, for Mukden, but was killed the next day by an explosion which wrecked his train just outside the city at the spot where the Peiping-Mukden Railway passes underneath the bridge over which run the lines of the South Manchuria Railway. The responsibility for this murder has never been established. The tragedy remains shrouded in mystery, but the suspicion of Japanese complicity to which it gave rise became an additional factor in the state of tension which Sino-Japanese relations had already reached by that time.
Succeeded by his son, Marshal Chang Hsueh-liang.After the death of Marshal Chang Tso-lin, his son, Chang Hsueh-liang, became the ruler of Manchuria. He shared many of the national aspirations of the younger generation, and desired to stop civil warfare and assist the Kuomintang in its policy of unification. As Japan had already some experience of the policy and tendencies of the Kuomintang, she did not welcome the prospect of such influences penetrating into Manchuria. The young Marshal was advised accordingly. Like his father, he resented that ​advice and decided to follow his own counsel. The young Marshal declares allegiance to the Central Government.His relations with the Kuomintang and with Kanking became closer and, in December 1928, he accepted the national flag and declared his allegiance to the Central Government. He was made Commander-in-Chief of the North-Eastern Frontier Army and was also confirmed as chief of the administration of Manchuria, with the addition of Jehol, a part of Inner Mongolia with an area of about 60,000 square miles.
The union of Manchuria with Nationalist China necessitated some changes in the administrative organisation, which was made to approximate to that of the Central Government. The committee system was introduced and Kuomintang headquarters were established. In reality, the old system and its personnel continued to function as before. Kuomintang connection more nominal than real.The interference of party branches with the local administrations, such as continually occurred in China, was not tolerated in Manchuria. The provision which required all important military officers and civil officials to be members of the Kuomintang was treated as a mere formality. The relationship with the Central Government depended, in all affairs—military, civil, financial and foreign—on voluntary co-operation. Orders or instructions requiring unquestioning obedience would not have been tolerated. Appointments or dismissals against the wishes of the Manchurian authorities were unthinkable. In various other parts of China, a similar independence of action in government and party affairs existed. All important appointments are, in such cases, really made by the local authorities and only confirmed by the Central Government.
Effect of union with Nationalist Government on foreign policy in Manchuria.In the domain of foreign policy, the union of Manchuria with the Nationalist Government was to have more important consequences, although, in this respect, the local authorities were also left much liberty of action. The persistent assaults of Marshal Chang Tso-lin on the position of the Chinese Eastern Railway in Manchuria and his disregard of certain rights claimed by Japan show that, in Manchuria, a "forward policy" had already been adopted before the union with the Nationalists. However, after the union, Manchuria was opened to well-organised and systematic Kuomintang propaganda. In its official party publications and numerous affiliated organs, it never ceased to insist on the primary importance of the recovery of lost sovereign rights, the abolition of unequal treaties, and the wickedness of imperialism. Such propaganda was bound to make a profound impression in Manchuria, where the reality of foreign interests, courts, police, guards or soldiers on Chinese soil, was apparent. Through the Nationalist school-books, party propaganda entered the schools. Associations such as the Liaoning Peoples' Foreign Policy Association made their appearance. They stimulated and intensified the nationalist sentiment and carried on an anti-Japanese agitation. Pressure was brought to bear on Chinese house-owners and landlords to raise the rents of Japanese and Korean tenants, or to refuse renewal of rent contracts. The Japanese reported to the Commission many cases of this nature. Korean settlers were subjected to systematic persecution. Various orders and instructions of an anti-Japanese nature were issued. Cases of friction accumulated and dangerous tension developed. The Kuomintang Party headquarters in the provincial capitals were established in March 1931, and subsequently branch organisations were set up in the other towns and districts. Party propagandists from China came North in increasing numbers. The Japanese complained that the anti-Japanese agitation was intensified every day. In April 1931, a five-days' conference under the auspices of the People's Foreign Policy Association was held at Mukden, with over three hundred delegates from various parts of Manchuria in attendance. The possibility of liquidating the Japanese position in Manchuria was discussed, the ​recovery of the South Manchuria Railway being included in the resolutions adopted. At the same time, the U.S.S.R. and her citizens suffered from similar tendencies, while the White Russians, although they had no sovereign rights or exceptional privileges to surrender, were subjected to humiliation and ill-treatment.
Effect on domestic affairs.As regards domestic affairs, the Manchurian authorities had retained all the power they wanted, and they had no objection to following administrative rules and methods adopted by the Central Government so long as the essentials of power were not affected.
The Political Committee of the North-Eastern Provinces.Soon after the union, the Political Committee of the North-Eastern Provinces was established at Mukden. It was, under the nominal supervision of the Central Government, the highest administrative authority in the North-Eastern Provinces. It consisted of thirteen members, who elected one of their number as President. The Committee was responsible for the direction and supervision of the work of the Governments of the four provinces of Liaoning, Kirin, Heilungkiang and Jehol, and of the so-called Special District which, since 1922, had replaced the administrative sphere of the Chinese Eastern Railway. The Committee had authority to deal with all matters not specifically reserved to the Central Government and to take any action which did not conflict with their laws and orders. It was the duty of the Governments of the Provinces and of the Special District to carry out the decisions reached by the Committee.
The administrative system of the Provinces did not differ essentially from the organisation adopted in the rest of China. The concession made with regard to the preservation of Manchuria as an administrative unit was the most important difference. Without this concession, voluntary union would probably not have taken place. In fact, notwithstanding external changes, the old conditions continued to exist. The Manchurian authorities realised that, as before, their power derived much more from their annies than from Nanking.
The Army—Military expenditure 80 per cent of total expenditure.This fact explains the maintenance of large standing armies numbering about 250,000 men, and of the huge arsenal on which more than $200,000,000 (silver) are reported to have been spent. Military expenses are estimated to have amounted to 80 per cent of the total expenditure. The remainder was not sufficient to provide for the costs of administration, police, justice and education. The treasury was not capable of paying adequate salaries to the officials. As all power rested in the hands of a few military men; office could be owned only through them. Nepotism, corruption, and maladministration continued to be unavoidable consequences of this state of affairs. The Commission found grave complaints concerning this maladministration to be widely current. This state of affairs, however, was not peculiar to Manchuria, as similar or even worse conditions existed in other parts of China.
Heavy taxation was needed for the upkeep of the army. As ordinary revenues were still insufficient, the authorities further taxed the people by steadily depreciating the irredeemable provincial currencies. This was often done, particularly of late, in connection with "official bean-buying" operations, which by 1930 had already assumed monopolistic proportions. By gaining control over Manchuria's staple products, the authorities had hoped to enhance their gains by compelling the foreign bean-buyers, particularly the Japanese, to pay higher prices. Such transactions show the extent to which the authorities controlled banks and commerce. Officials likewise engaged freely in all sorts of private enterprise, and used their power to gather wealth for themselves and their favourites.
Constructive efforts of the Chinese administration in Manchuria.Whatever the shortcomings of the administration in Manchuria may have been in the period preceding the events of September 1931, efforts ​were made in some parts of the country to improve the administration, and certain achievements must be noted, particularly in the field of education, progress, of municipal administration, and of public utility work. It is necessary, in particular, to emphasise that, during this period, under the administration of Marshal Chang Tso-lin and Marshal Chang Hsueh-liang, the Chinese population and Chinese interests played a much greater part than formerly in the development and organisation of the economic resources of Manchuria.
The extensive settlement of Chinese immigrants, already mentioned, helped to develop the economic and social relations between Manchuria and the rest of China. But apart from this colonisation, it was during this period that Chinese railways, independent of Japanese capital, notably the Mukden-Hailung, the Tahushan-Tungliao (a branch of the Peiping-Mukden system), the Tsitsihar-Koshan, and the Hulun-Hailun railways, were built, and that the Hulutao Harbour project, the Liao River Conservancy work, and some navigation enterprises on various rivers were started. Official and private Chinese interests participated in many enterprises. In mining, they had an interest in the Penhsihu, Muting, Chalainoerh and Laotoukou coal-mines, and sole responsibility for the development of other mines, many of them under the direction of the official North-Eastern Mining Administration; they were also interested in gold-mining in Heilungkiang province. In forestry, they had a joint interest with Japanese in the Yalu Timber Company and were engaged in the timber industry in Heilungkiang and Kirin Provinces. Agricultural experimental stations were started in various places in Manchuria, and agricultural associations and irrigation projects were encouraged. Finally, Chinese interests were engaged in milling and textile industries, bean, oil and flour mills in Harbin, spinning and weaving mills for Pongee or Tussah silk, cotton and wool.
Commercial relations with the rest of China.Commerce between:Manchuria and the rest of China also increased. This trade was partly financed by Chinese banks, notably the Bank of China, which had established branches in the leading towns in Manchuria. Chinese steamships and native junks plied between China Proper and Dairen, Yingkow (New-chwang) and Antung. They carried increasing amounts of cargo and occupied second place in Manchuria's shipping, being exceeded only by Japanese tonnage. Chinese insurance business was also on the increase, and the Chinese Maritime Customs derived an ever-increasing revenue from the trade of Manchuria.
Thus, during the period preceding the conflict between China and Japan, both the political and economic ties between Manchuria and the rest of China were gradually strengthened. This growing interdependence contributed to induce Chinese leaders, both in Manchuria and in Nanking, to pursue an increasingly nationalist policy directed against the interests and rights acquired by Russia or Japan.
3. Relations with Russia
Russo-Chinese Relations.The Sino-Japanese war of 1894–95 had given Russia an opportunity to intervene, ostensibly on behalf of China, but in fact in her own interest, as subsequent events proved. Japan was forced by diplomatic pressure to return to China the Liaotung Peninsula in South Manchuria, which had been ceded to Japan by the Treaty of Shimonoseki in 1895, and Russia assisted China to pay off the war indemnities which had been imposed by Japan. In 1896, a secret defensive alliance was concluded between the two countries and, in the same year, in consideration of the services above ​referred to, Russia was authorised by China to carry a branch of the Trans-Siberian Railway across Manchuria in The Chinese Eastern Railway.a direct line from Chita to Vladivostok. This line was said to be needed for the transportation of Russian forces to be sent to the East in case Japan should again attack China. The Russo-Chinese Bank (later the Russo-Asiatic Bank) was established to mask somewhat the official character of the enterprise. The Bank formed in its turn the Chinese Eastern Railway Company for the construction and operation of the railway. Contract of September 8th, 1896.By the terms of the contract of September 8th, 1896, between the Bank and the Chinese Government, the Company was to build the railway and operate it for eighty years, at the end of which it was to become the property of China free of charge, but China had the right of purchasing it at a price to be agreed upon at the end of thirty-six years. During the period of the contract, the company was to have the absolute and exclusive right of administration of its lands. This clause was interpreted by Russia in a much broader way than various other stipulations in the contract seem to warrant. China protested against the continuous Russian attempts to enlarge the scope of the contract, but was not able to prevent it. Russia gradually succeeded in exercising in the Chinese Eastern Railway area, with its rapidly developing railway towns, rights equivalent to rights of sovereignty. China had also consented to hand over free of charge all Government lands needed by the railway, while private lands might be expropriated at current prices. The Company had, furthermore, been permitted to construct and operate the telegraph lines necessary for its own use.
Lease of the Liaotung Peninsula, 1898.In 1898, Russia secured a lease for twenty-five years of the southern part of the Liaotung Peninsula, which Japan had been forced to give up in 1895, and also secured the right to connect the Chinese Eastern Railway to Russia, at Harbin with PortArthur and Dalny (now Dairen) in the leased territory. Authority was given for the construction of a naval port at Port Arthur. In the area traversed by this branch line, the Company was granted the right to cut timber and to mine coal for the use of the railway. All the stipulations of the contract of September 8th, 1896, were extended to the supplementary branches. Russia was authorised to make her own tariff arrangements in side the leased territory. In 1899, Dalny (now Dairen) was declared a free port and opened to foreign shipping and commerce. No railway privileges were to be given to the subjects of other Powers in the area traversed by the branch line. In the neutral ground north of the leased territory, no ports were to be opened to foreign trade and no concessions or privileges were to be granted without the consent of Russia.
Russian occupation of Manchuria, 1900.In 1900, Russia occupied Manchuria on the ground that the Boxer rising had endangered her nationals. Other Powers protested and demanded the withdrawal of her forces, but Russia delayed taking action in this sense. In February 1901, the draft of a secret Sino-Russian treaty was discussed in St. Petersburg, by the terms of which China, in return for the restoration of her civil authority in Manchuria, was to sanction the maintenance of the railway guards which Russia had established under Clause 6 of the Fundamental Contract of 1896, and to engage not to transfer to other nations or their subjects, without the consent of Russia, mines or other interests in Manchuria, Mongolia, and Sinkiang. These and some other clauses in the draft treaty, when they became known, aroused opposition from public opinion in China and other countries and, on April 3rd, 1901, the Russian Government issued a circular note to the effect that the project had been withdrawn.
Japan resorted to war against Russia, February 10th, 1904.Japan followed these manœuvres with particular attention. On January 30th, 1902, she had concluded the Anglo-Japanese Treaty of Alliance and accordingly felt herself more secure. However, she was still concerned at the prospect of Russian encroachments into Korea and Manchuria. She therefore pressed with the other Powers for the evacuation ​of the Russian forces in Manchuria. Russia declared her willingness to withdraw on conditions which would have virtually closed Manchuria and Mongolia to other than Russian enterprise. In Korea, Russian pressure increased also. In July 1902, Russian troops appeared at the mouth of the Yalu River. Several other acts convinced Japan that Russia had decided upon a policy which was a menace to her interests, if not to her wry existence. In July 1903, she began negotiations with Russia concerning the maintenance of the policy of the Open Door and the territorial integrity of China, but, having met with no success whatever, she resorted to war on February 10th, 1904. China remained neutral.
Treaty of PortsmouthRussia was defeated. On September 5th, 1905, she concluded the Treaty of Portsmouth, whereby she relinquished her exceptional rights in South Manchuria in favour of Japan. The leased territory and all rights connected with the lease were transferred to Japan, and also the railway between Port Arthur and Changchun, with its branches, as well as all coal-mines in that region belonging to or worked for the benefit of the railway. Both parties agreed to restore to the exclusive administration of China all portions of Manchuria occupied or under the control of their respective troops, with the exception of the leased territory. Both reserved the right to maintain (under certain specified conditions) guards to protect their respective railway lines in Manchuria, the number of such guards not to exceed fifteen per kilometre.
Russian influence restricted to North Manchuria.Russia had lost half of her sphere of influence, which was henceforth to be restricted to North Manchuria. She retained her position there and increased her influence in the following years, but, when the Russian Revolution broke out in 1917, China decided to reassert her sovereignty in this area.
Siberian expedition.At first, her action was restricted to participation in the Allied intervention (1918–1920) which, in connection with the chaotic conditions rapidly developing, after the Russian Revolution, in Siberia and North Manchuria, had been proposed by the United States of America for the double purpose of protecting the vast stores of war material and supplies accumulated at Vladivostok and of assisting the evacuation of some 50,000 Czechoslovak troops, who were retreating from the eastern front across Siberia. This proposal was accepted and it was arranged that each country should send an expeditionary force of 7,000 mean to be assigned to its own special section of the Trans-Siberian line, the Chinese Eastern Railway being confided to the sole charge of the Chinese. To ensure the working of the railways in co-operation with the Allied forces, a special Inter-Allied Railway Committee was formed in 1919 with technical and transportation boards under it. In 1920, the intervention came to an end and the Allied forces were withdrawn from Siberia except the Japanese, who had become involved in open hostilities with the Bolsheviks. The fighting dragged on for nearly two years. In 1922, after the Washington Conference, the Japanese troops were also withdrawn and, simultaneously, the Inter-Allied Committee, with its technical board, ceased to exist.
After outbreak of Russian Revolution in 1917, China revokes privileges granted to Russia in 1896.Meanwhile, China, after an abortive attempt of General Horvath, the head of the Chinese Eastern Railway, to set up an independent regime in the railway area, assumed responsibility for the preservation of order in that aera (1920). In the same year, she concluded an agreement with the re-organised Russo-Asiatic Bank and announced her intention of assuming temporarily supreme control of an agreement with a new Russian Government. China also announced her intention of resuming the advantages conferred on her by the contract of 1896 and the original statutes of the Company. Thenceforth, the President and four members of the Board of Directors of the Company and two members of the Audit Committee were to be nominated by the Chinese Government. Russian predominance was also weakened by other measures which followed. The Russian armed ​forces in the railway area were disarmed and replaced by Chinese soldiers. The extra-territorial status of Russians was abolished. The courts were forcibly entered and closed. Russians were made amenable to Chinese law, justice and laxation. They could be arrested by the Chinese police and held by them indefinitely, as the police had large powers and were insufficiently controlled.
Special Administrative Districts joined.In 1922, the railway area which so far had been under the administration of the Company was transformed into a Special District of the Three Eastern Provinces under a Chief Administrator directly responsible to Mukden. The administration of the lands belonging to the railway was also interfered with Marshal Chang Tso-lin had practically liquidated the Russian sphere before Russia's new Government had been recognised, and private interests had suffered heavily in the process. When the Soviet Government succeeded to the Manchurian inheritance of its predecessor, the railway had been shorn of most of its privileges.
Sino-Soviet Agreement.The declarations of policy made in 1919 and 1920 by the Soviet Government with regard to China implied a complete relinquishment of the special rights which the Imperial Government had acquired in China, notably those acquired in North Manchuria.
Agreement of 1924.In accordance with this policy, the Soviet Government agreed to the regularisation of the fait accompli by a new agreement. By the Sino-Russian Agreement of May 31st, 1924, the Chinese Eastern Railway became a purely commercial concern under joint management, in which China also acquired a financial interest. The Government of the U.S.S.R. had, however, the right of appointing the General Manager (who exercises extensive and ill-defined powers) and, under the Agreement, the Government of the U.S.S.R. exercised a preponderant influence in the affairs of the railway and was able to retain the essential parts of its economic interests in North Manchuria. As mentioned above, the Agreement of May 1924, concluded with the Chinese Government at Peking, was not accepted by Marshal Chang Tso-lin, who insisted on a separate Agreement being concluded with himself. This Agreement, signed in September 1924, was almost identical in its terms, but by it the lease of the railway was shortened from eighty to sixty years.
Chang Tso-lin's aggressive policy against the interests of the U.S.S.R.This Agreement did not inaugurate a period of friendly relations between the U.S.S.R. and the administration of Marshal Chang Tso-lin in Manchuria. The convening of the conference which was to deal with the many questions left unsettled in the two Agreements of 1924 was postponed on various pretexts. On two occasions, in 1925 and 1926, the General Manager of the Chinese Eastern Railway refused to transport troops of the Marshal on the railway. The second incident led to the arrest of the General Manager and to an ultimatum from the U.S.S.R. (January 23rd, 1926). Nor were these isolated incidents. Nevertheless, the Chinese authorities persisted in a policy which was directed against Russian interests and which was resented both by the Government of the U.S.S.R. and by the White Russians.
Final efforts of China to liquidate Soviet influence in Manchuria, 1929.After the adherence of Manchuria to the Nanking Government, nationalist spirit increased in strength, and the efforts of the U.S.S.R. to maintain predominating control over the railway were, more than ever before, resented. In May 1929, an attempt was made to liquidate the last remnants of the Russian sphere of interest. The attack started with a raid on the Soviet consulates at various places by the Chinese police, who made many arrests and claimed to have found evidence proving that a Communist revolution was being plotted by employees of the Soviet Government and of the Chinese Eastern Railway. In July, the telegraph and telephone systems of the railway were seized, and many important Soviet organisations and enterprises were forcibly closed down. Finally, the Soviet Manager of the railway was requested to hand over the management to a Chinese ​appointee. He refused to do so and was thereupon forbidden to carry on his duties. The Chinese authorities replaced freely members of the Soviet staff by their own nominees, many Soviet citizens were arrested, and some were deported. The Chinese justified the violent action taken on the ground that the Soviet Government had broken its pledge not to engage in propaganda directed against the political and social systems of China. The Soviet Government, in its note of May 30th, denied the charge.
Action of the U.S.S.R.In consequence of the forcible liquidation of the remaining Russian rights and interests, the Soviet Government decided to take action. After the exchange of several notes, it recalled from China its diplomatic and commercial representatives, and all its nominees to posts in the Chinese Eastern Railway, and severed all railway communications between its territory and China. China, likewise, broke off relations with the U.S.S.R. and withdrew all Chinese diplomatic officers from Soviet territory. Raids by Soviet troops across the Manchurian border began and developed into a military invasion in November 1929. After having suffered defeat and severe loss of prestige, the Manchurian authorities, to whom the Nanking Government entrusted the settlement of the dispute, were forced to accept the demands of the U.S.S.R. Protocol of Habarovsk, December 22nd, 1929.On December 22nd, 1929, a Protocol was signed at Habarovsk whereby the statu quo was re-established. During the dispute, the Soviet Government had always taken the position, in answer to various memoranda from third-Power signatories to the Pact of Paris, that her action had been taken in legitimate self-defence and could in no way be interpreted as a breach of that agreement.
Russo-Japanese relations regarding Manchuria since 1905.Before describing the interests of Japan in Manchuria, which are dealt with at length in the next chapter, a brief reference must be made, in this account of the position of Russia in Manchuria, to the relations between that country and Japan since 1905.
Policy of co-operation, 1907–1917.It is an interesting fact that the war between Russia and Japan was followed almost immediately by a policy of close co-operation. and when peace was concluded they were able to strike a satisfactory balance between their respective spheres of interest in North and South Manchuria. Such traces of the conflict as might have remained behind were rapidly eﬂaced by controversies with other Powers which wanted to engage actively in the development of Manchuria. The fear of other rivals hastened the process which was reconciling the two countries. The Treaties of 1907, 1910, 1912 and 1916 brought the two countries progressively closer together.
Effect of the Russian Revolution on Japan.The Russian Revolution of 1917, followed by the declarations of the Soviet Government of July 25th, 1919, and of October 27th, 1920, regarding its policy towards the Chinese people and, later, by the Sino-Soviet Agreements of May 31st, 1924, and September 20, 1924, shattered the basis of Russo-Japanese understanding and co-operation in Manchuria. This fundamental reversal of policy radically changed the relations of the three Powers in the Far East. Moreover, the Allied intervention (1918–1920). with its aftermath of friction between the Japanese and Soviet forces in Siberia (1920–1922), had accentuated the change in the relations between Japan and Russia. The attitude of the Soviet Government gave a strong impetus to China's nationalistic aspirations. As the Soviet Government and the Third international had adopted a policy opposed to all imperialist Powers which maintained relations with China on the basis of the existing treaties, it seemed probable that they would support China in the struggle for the recovery of sovereign rights. This development revived all the old anxieties and suspicions of Japan towards her Russian neighbour. This country. with which she had once been at war, had, during the years which followed that war. become. a friend and ally. Now this relationship was changed. and the possibility of a danger from across the North-Manchurian border again became a matter of concern to Japan. The likelihood of an alliance between the Communist doctrines in the ​North and the anti-Japanese propaganda of the Kuomintang in the South made the desire to impose between the two a Manchuria which should be free from both increasingly felt in Japan. Japanese misgivings have been still further increased in the last few years by the predominant influence acquired by the U.S.S.R. in Outer Mongolia and the growth of Communism in China.
The Convention concluded between Japan and the U.S.S.R. in January 1925 served to establish regular relations, but did not revive the close co-operation of the pre-revolution period.
* ↑ See also Chapter VII and the special studies No. 2 and No. 3 annexed to this Report.
* ↑ See special study No. 9, annexed to this Report.
* ↑ See special studies No. 4 and No. 5, annexed to this Report.
* ↑ See also Chapter VIII and special study No. 3, annexed to this Report.
* ↑ See also Chapter VIII and special study No. 6, annexed to this Report.