CHAPTER V

SECRETARY HAY’S CIRCULAR NOTE

It is unnecessary for us to describe how, between 1897 and 1899, other so-called spheres of influence and of economic concessions than those already mentioned were marked out in China by the Powers, for, important as they are in the general history of the modern East, they have little bearing upon our immediate subject. It suffices to recall that the process was begun by the German seizure of Kiao-chau; that unfortunately Great Britain felt obliged to have recourse to the policy of the balance of power; and that no other “sphere” had the grave significance and the evil forebodings of the Russian territory of the Kwan-tung in Manchuria. It was during this period that a Power whose position was so unique as to justify the act appealed to the other interested Powers, in September, 1899, to make declarations that they would observe the principle of the equal economic opportunity for all nations in their respective spheres of interest in China. The principle thus proposed by the United States was stated to imply (1) non-interference with the treaty rights and vested interests of each other; (2) the maintenance of the Chinese treaty tariff, except in “free ports,” under the Chinese management; and (3) no differential treatment in the harbor duties and railway charges, in the spheres. The phrase “leased territory” was used in connection with only the first of these three points, while the words “spheres of interest” were applied to all three, so that it was uncertain whether the second and third points were intended by Secretary Hay to cover the leases, as well as the spheres.[257] In reply to this proposition, Great Britain, which had stronger reason than the United States to indorse a policy which had originated with her and which she had long upheld in China at enormous cost, and Japan expressed their unequivocal adherence to the proposed principle. Germany, France, and Italy also assented, all except Italy, however, with the natural reservation that the desired declarations would be made if all other interested Powers acted likewise.[258] As regards the question whether the three points applied to the leases and spheres alike, it is interesting to note that Germany, France, and Great Britain replied, in effect, in the affirmative, Germany using the expression “its Chinese possessions,” and France employing the phrase “the territories which were leased to her.” The statement used by Great Britain was the most explicit and comprehensive, for she mentioned “the leased territory of Wei-hai-Wei and all territory in China which may hereafter be acquired by Great Britain, by lease or otherwise, and all ‘spheres of interest’ now held, or that may hereafter be held in China.” Beside these assurances, the Russian assent was highly significant, which, with the reservation similar to that of the other Powers, stated: “As to the ports now opened, or hereafter to be opened, to foreign commerce _by the Chinese Government_,[259] and which lie _beyond_ the leased territory to Russia, the settlement of the question of customs duties belongs to China herself, and the Imperial Government [of Russia] has no intention whatever of claiming any privileges for its own subjects to the exclusion of foreigners.” But “in so far as the territory leased by China to Russia is concerned, the Imperial Government [of Russia] has already demonstrated its firm intention to follow the policy of the ‘open door’ by creating Dalny (Talien-wan) a free port; and _if at some future time that port, although remaining free itself, should be separated by a custom-limit from other portions of the territory in question_, the customs duties would be levied, in the zone subject to the tariff, upon all _foreign_ merchants without distinction as to nationality. With the conviction,” the Russian note concluded, “that this reply is such as to ratify the inquiry made in the aforementioned note [of the United States], the Imperial Government is happy to have complied with the wishes of the American Government, especially as it attaches the highest value to anything that may strengthen and consolidate the traditional relations of friendship existing between the two countries.”[260] On the strength of the various replies from the Powers, however, the United States Government considered that “the Declaration suggested by the United States on that subject [i. e., the proposals about the Chinese trade] had been accepted by those Powers,” and regarded the assent given by them “as final and definite.”[261] It is interesting to note that no Power made a formal declaration[262] suggested by Secretary Hay, who, however, seems to have deemed the replies with reservations as equivalent to such a declaration. It is problematical whether this exchange of notes did in the slightest degree have the effect of changing the actual situation, at least so far as Russia was concerned.

Footnote 257:

_China, No. 2 (1900)_, No. 1.

Footnote 258:

_Ibid._, Nos. 2, 3, 4, and inclosures 1, 2, 3, 4, and 5, in No. 5.

Footnote 259:

The italics in the quotations are the author’s.

Footnote 260:

_China, No. 2 (1900)_, inclosure 6 in No. 5.

Footnote 261:

_Ibid._, No. 5, White to Salisbury, March 30, 1900.

Footnote 262:

Cf. _ibid._, No. 6.