Part 7 (1/2)
j.a.pan's primary commercial advantage over all other nations in South Manchuria, her railway monopoly, together with the use she is making of this monopoly and her plans to maintain it, we must now consider more in detail.
When the war with Russia ended, j.a.pan succeeded Russia in the control of what is now the South Manchurian Railway, running from Dairen (formerly Dalny) to Chang-chun, 438 miles, through the very heart of the country, and she also obtained from China the right ”to maintain and work the military line constructed between Antung and Mukden _and_”--as if of secondary importance--”to improve the said line so as to make it fit for the conveyance of commercial and industrial goods of all nations.” The stipulation with regard to the South Manchurian Railway was that China should have the right to buy it back in 1938, and with regard to the Antung-Mukden line, in 1932, by paying the total cost--”all capital and all moneys owed on account of the line and interest.” And just here j.a.pan is playing a wily game.
Consider, for example, the Antung-Mukden line just referred to, now regarded as a part of the South Manchurian system. Although running through a very mountainous and spa.r.s.ely settled area, it is of immense importance to j.a.pan {84} from a strategic standpoint, connecting Mukden as it does with the j.a.panese railway in Korea leading directly to Fusan, and thus enabling j.a.pan to transport troops across her own territory to Manchuria without taking any of the risks involved in getting out of her own waters and boundaries. The paramount military importance of the line is further indicated by the fact that no one had thought of a commercial line here at all. Simply as a matter of war-time necessity j.a.pan stretched a 2-1/2-foot narrow-gauge line across these mountain barrens to transport her troops in 1905. It is interesting to see, therefore, how she has now interpreted her right to ”work, maintain and improve”--especially ”improve”--this line. In October I spent two days travelling over its entire length (188 miles), most of the time on the narrow-gauge part, and I was amazed to see on what a magnificent scale the new broad-gauge subst.i.tute line is now building.
In striking contrast to the traditional j.a.panese tendency to impermanence in building, this line is constructed regardless of expense as if to last for a thousand years. Tunnel after tunnel through solid rock, the most superb masonry and bridges wherever streams intervene, the best of ballast to make an enduring roadbed--all these indicate the style of the new, not ”improved” but utterly reconstructed, line which is building for j.a.pan's benefit at China's expense--at China's expense directly if she buys it back in 1932, at China's expense indirectly if she doesn't.
It will be remembered, of course, that according to her agreement with China, j.a.pan was to begin the work of ”improving” the Antung-Mukden line within two years. Whether she was strangely unable to make any sort of beginning in the period, or whether she purposely delayed it in order to show her contempt for Chinese sovereignty in Manchuria, it is difficult to say; what is known is only that the Mikado's government let its treaty rights lapse, and then when China objected to a renewal, defied China, and proceeded with the work of ”improvement” by what was euphemistically termed ”independent action.”
{85}
Incidentally, it may be recalled just here that in the Portsmouth Peace Treaty j.a.pan and Russia jointly promised the rest of the world ”to exploit their respective railways in Manchuria exclusively for commercial and industrial purposes and in no wise for strategic purpose.”
That j.a.pan (in the event no other method of getting control of Manchuria appears) hopes to make the railroads too expensive for the hard-pressed Peking government to buy back is self-evident. She is looking far ahead, as those interested in the continuance of the Open Door policy must also look far ahead. The real Open Door question is not a matter of the last four or five years or of the next four or five years, but whether after a comparatively short time the Door is to be permanently closed as in Korea. If it be said that j.a.pan is only human in laying many plans to gain so rich an empire, let it also be said that other nations are only human if they wish to protect their own interests.
IV
For one thing, as has been suggested, j.a.pan has a perfectly obvious plan to make the railways too expensive for China to purchase when the lease expires, and just here some comparisons may be in order. In j.a.pan proper the government-owned railway stations are severe and inexpensive structures in which not one yen is wasted for display and but little for convenience. When I was in Tokyo, for example, Ex-Premier Ok.u.ma, in a public interview, called attention to the disreputable condition and appearance of the leading station (s.h.i.+mbas.h.i.+) in the j.a.panese capital, declaring that foreign tourists must inevitably have their general impressions of the country unfavorably influenced by it, so primitive and uninviting is its appearance. But when it comes to the South Manchurian Railway, also under the control of the j.a.panese Government (five sixths of the investment held by the government and one {86} sixth by individual j.a.panese), one finds an entirely different policy in force. Handsome stations, built to accommodate traffic for fifty years to come, have been erected. In Dairen, ”virtually the property of the railway company,” the system has built a magnificent modern city--street railways, waterworks, electric light plants, macadamized roads, and beautiful public parks. More than this, the railway company, not content with the best of equipment for every phase of legitimate railway work, including handsome stations and railway offices, such as j.a.pan proper never sees, has also erected hotels which, for the Orient, may well be styled sumptuous, in five leading cities of Manchuria. Comparatively few travellers go to Mukden, and yet the hotel which the South Manchurian Railway has erected there, for example, is perhaps not excelled in point of furnis.h.i.+ng and equipment anywhere in the Far East.
In buying back the railroads, therefore, China will be expected not only to pay for the railways themselves but for all the irrelevant enterprises--hotels, parks, cities--in which the railway companies have embarked; for lines ”improved” beyond recognition, and for lines built not even with a view to ultimate profit, but for their strategic importance to a rival and possibly antagonist nation! As an Englishman said to me: ”It's much the same as if I, a poor man, should rent you a $1000 house, agreeing to stand the expense of some improvements when taking it back, and you should spend $10,000 in improving my $1000 house--and largely to suit your own peculiar business and purposes.”
More than this, j.a.pan, as I have said, is determined to keep her absolute monopoly on South Manchurian railway facilities. In Article IV of the Portsmouth Peace Treaty j.a.pan and Russia reciprocally engaged not to ”obstruct any general measures, common to all countries, which China may take for the development of the commerce and industry of Manchuria,” but in December of the same year j.a.pan caused China to yield a secret agreement prohibiting any new line ”in the {87} neighborhood of and parallel to” the South Manchurian Railway or any branch line that ”might be prejudicial” to it. j.a.pan, under threat of arms, forced China to abandon the plan for the Hsinmintun-Fak.u.men line after arrangements had been made with an English syndicate, and later j.a.pan and Russia on the same pretext prevented the proposed Chinchow-Aigun line across Mongolia and Manchuria, although a hundred miles or more away from the South Manchurian line.
V
That j.a.pan, then, holds the whip hand in Manchuria, and expects to continue to hold it, is very clear. With China as yet too weak to protect herself, j.a.pan is virtually master of the situation. Let us ask then--since this is in an American book--whether the Open Door policy is being enforced even now; to ask it of any one in Manchuria is to be laughed at. I tried it once in a Standard Oil office and the man in front of me roared, and an unnoticed clerk at my back, overhearing so absurd a question, was also unable to contain his merriment. It is not a question of the fact of the shutting-up policy, Chinese and foreigners in Manchuria will tell you; it is only a question as to the extent of that condition.
The truth is that the ink was hardly dry on the early treaties before the discriminations began. The military railroads, which j.a.pan was in honor bound to all the world to use only for war purposes, were used for transporting j.a.panese goods before the military restrictions with regard to the admission of other foreign goods were removed. The Chinese merchant and his patrons were famis.h.i.+ng for cotton ”piece goods” and other manufactured products, and the j.a.panese goods coming over were quickly taken up and a market for these particular ”chops”
or ”trademarks” (the Chinaman relies largely on the chop) was established. By the time European and American goods came back their market in many cases {88} had already been taken away. In some cases, too, their trademark rights had been virtually ruined by the closeness of j.a.panese imitation. Even on my recent tour, among consuls of three nations, at Manchurian points, I did not find one who did not mention some recent case of trademark infringement.
Then came the period of freight discriminations and rebates, when the j.a.panese (princ.i.p.ally the Mitsui Bussan Kaisha, the one great octopus of j.a.panese business and commerce) secured freight rates that practically stifled foreign business compet.i.tors. The railway company now a.s.serts that rebates (formerly allowed, it alleges, because of heavy s.h.i.+pments) are no longer given; but in many cases the evil effects of the former rebating policy remain in that j.a.panese traders were thus allowed to rush in during a formative period and establish permanent trade connections.
Meanwhile, too, the relations between the j.a.panese Government and the Mitsui Bussan Kaisha are so close that compet.i.tors are virtually in the plight of having to s.h.i.+p goods over a line owned by a rival--without any higher tribunal to guarantee equality of treatment.
As was recently declared:
”Two directors of the South Manchurian Railway are also directors of Mitsui Bussan Kaisha. The traffic manager of the railway is an ex-employee of Mitsui. The customs force at Dalny is not only entirely j.a.panese--no other foreigner in charge of a Chinese customs office employs exclusively a.s.sistants of his own nationality--but a number of the customs inspectors are ex-employees of Mitsui. The Mitsui company also maintains branches all through Manchuria in and out of treaty ports. In this way they escape the payment of Chinese likin, or toll taxes. The Chinese have agreed that these taxes--2 per cent, on the value of the goods each time they pa.s.s to a new inland town--shall not be paid so long as they remain in the hands of the foreigner. American piece goods often pay likin tax, two, three, or four times, while the j.a.panese--sometimes legitimately by reason of their branch houses, sometimes illegally by bluffing Chinese officials or smuggling through their military areas--manage to escape likin almost altogether.”
It may not be true that the j.a.panese customs officials at Dairen (the treaty provides that China shall appoint a j.a.panese {89} collector at this port), ignorantly or knowingly, allow j.a.panese goods to be smuggled through to Manchuria--although consuls of three nations a few months ago thought the matter serious enough to suggest an investigation--but the evasion of likin taxes in the interior is an admitted fact.
More flagrant still is another violation of international treaty rights. Under Chinese regulations foreign merchants are not allowed to do business in the Manchurian interior away from the twenty-four open marts, but it has been shown that several thousand j.a.panese are now stationed within the prohibited area, and j.a.pan's reply to the Chinese Viceroy's protest is that he should have objected sooner and that it is now too late. Meanwhile, many Chinese merchants both in the interior and along the South Manchurian Railway, themselves paying the regular likin and consumption taxes, are finding themselves unable to compete with the j.a.panese, who refuse to pay these taxes. Thus j.a.pan is gradually rooting out the natives who stand in her way, and, day by day, tightening her grip on the country.
She is advancing step by step as she did in Korea.
On the whole, the Mikado's subjects seem already to count themselves virtual masters of the country. Inside their railway areas and concessions they have their own government; in the majority of cases while in Manchuria I found it more convenient to use the j.a.panese telegraph or the j.a.panese postal system than the Chinese; and where I stopped at the little towns along the line it was a j.a.panese officer who came to inquire my name and nationality. When I was in Mukden the German consul there had just had two Chinese meddlers arrested for spying on his movements, only to find that they were acting under the direction of j.a.panese officials who claimed immunity for them! The fact that they have their soldiers back of them, and that they can be tried only in their own courts, also gives the j.a.panese unlimited a.s.surance in bullying the natives. At Mukden the j.a.panese bellboy struck my Chinese rickshaw {90} man to get his attention. At Taolu some weeks ago some j.a.panese merchants who were there doing business illegally (for it is not an open mart) were interfered with, with the result that the j.a.panese authorities when I was in Mukden were preparing a formal demand for satisfaction, including indemnity for any injury to an unlawful business!
Manifestly, the new masters of Manchuria propose to teach the natives their place. ”If a Chinaman is killed by a j.a.panese bullet,” as a Chinaman of rank said to me in Manchuria, ”the fault is not that of the man who fired the bullet: the Chinaman is to blame for getting in the way of it!”