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"The Chinese question is the world question of the twen- 
tieth century."— B. Putman Weale. 

"Our temptation is still to look on the European stage 
.is of first importance. It is no longer so. Undoubtedly the 
scene has shifted from Europe to -the Far East and to the 
Pacific. . . . The problems of the Pacific are, to my 
mind, the world problems of the next 50 years or more. 
. . . There, I believe, the next great chapter in human 
history will be written."— General Jan Christian Smuts, fpr- 

r Premier Union of South Africa, in address to British 

imperial Conference, London, June 21, 1921. 

"The fact that the Pacific era of world history has actual- 
ly dawned scarcely requires demonstration. The accumula- 
tion by the Powers of great economic interests in territories 
adjacent to the Pacific has gradually concentrated interna- 
tional attention in the Far East. Whatever doubt there may 
have been, in 1914, in regard to the significance of Pacific 
problems has been finally dispelled by the events of the 
World-War."— Stanley High, author of "China's Place in the 
Bun" (1922). 

"The United States is a world power, destined increasing- 
ly to participate in world commerce and world politics. The 
fnte of peoples, the disposition of territories, and the deter- 
mination of commercial policies in the Far East are bound 
to be of enormous consequence in world affairs. 

"What occurs in the Pacific will have its effects upon 
the activities and policies of the major nations everywhere. 
• ■ . The international problems of the Far East are world 
problems."— Stanley K. Hornbeck, in "Contemporary Politics 
In the Par East." 


Underwood & Underwood 
River front at Canton, the revolutionary center of China. 
Nearly half a million of its inhabitants live in these sampans, 
moored along the edge of the stream. They are a unique 
feature of all Chinese cities located on large rivers. 

The sampan resembles nothing so much, especially from 
a distance, as an elongated barrel cut in two, lengthways, 
with one of the sections mounted on a shallow hull. Whole 
families are born, and live and die on these boats, only 
occasionally staying overnight on shore for a visit to 




The fast-growing labor and nationalist movements 
of China, reacting upon the extremely complicated 
situation which results from that country's position 
as a battleground for the conflicting imperialisms of 
the great powers, play a tremendously important part 
in, the development of the Far East. The workers of 
other nations must understand the issues involved in 
the struggle for control and the aims and tactics of 
these movements in order to establish an International 
I ' nited Front of Labor with their Oriental comrades. 

Indispensable to Japan and Great Britain, and in 
a lesser degree to the other capitalist powers, China 
has become the center for their commercial, political, 
and financial rivalries in Eastern Asia. The stakes 
for which these nations are playing are so enormous 
as to stagger the imagination. The continual clash of 
competing national interests produce conflicts which 
may break out into open armed struggles at almost 
any time, nearly certain to precipitate another world 
war. The merciless exploitation, moreover, of con- 
stantly increasing masses of Chinese ivorkers and 
peasants under the new conditions brot about by the 
spread of the capitalist system is bound sooner or 
later to react most disastrously upon the labor condi- 
tions and wages of the workers of America and other 

The great general strike, resulting from the Shang- 
hai massacres of last summer, and the serious clashes 
which followed in various parts of the country, to- 
gether with the enormous proportions which the anti- 
i niperialist movement has assumed, make an analysis 
of the fundamental factors involved in the Chinese 

situation most timely. The development of the modern 
factory system in China and the conditions wMchl 
has created for the workers logically takes up a con- 
siderable portion of this hook, for the rise of the labor 
and nationalist movements in that country has been 
comment with the progress of its industrialisation 

This volume is the product of many months of the 
most detailed study of the subject. All reference works 
and articles dealing with the matter available in this 
country have been gone over and representative Chi- 
nese consulted in regard to the situation. The statistics 
mvenare either from official Chinese publicaHZnl or 
from the reports of responsible and authoritative pri- 

to make this a reliable reference book for the use of 
workers everywhere in rallying support for 12 op- 
pressed comrades in the Far East. 

Gh f™ ™ a striking and concrete example of the 
1 7 ij° f ! ! ca P italist *Ftem in its imperialist phase 
and illustrates most forcefully the necessity forUnk- 

Z UP f v W f % " ClMS 8trU9gle with the smuggle of 
the exploited subject nations and colonies against 

may help to create that understanding which will 
bring together the labor movements of the countries 
m^feed and thus contribute towards building up thai 

itz : olidarity of m work ™9 *«• *»m 

alone can protect its vital interests and establish the 
foundation for the new social order. 

In conclusion, I desire to thank my comrades of the 
Unionist Guild of San Francisco aid friends il the 
Kuo MinTang for the generous aid which has made 
this publication possible. 

April, 1926. THE AUTH0R * 








Chapter Pagte 

•I A Battleground of World,. Imperialism. 13 

II The Partition'. ,cf| ' China . /,, ..\-\ [[• 25 

III Privileged Position of Foreigners 41 

A Extra-Territoriality 41 

B The Customs Restrictions . 49 

-IV The Industrialization of China :..-. 59 

A Rise of the Factory System 59 

B Labor Conditions 75 

i V The Rise of the Labor Movement 101 

■ VI The Students' and Women's Movements 113 ■ 

VII The General Strike of 1925 121 

A Its Origin: Attitude of the Powers 121 
B Demands of the Chinese; The 

Shanghai Investigations 138 

VIII The Kuo Min Tang and Sun Yat Sen. . 145 \ 

IX The Communist Party of China 16S 

X The Customs Conference of 1925 178 

XI The Significance of The Chinese Work- 
ers' Struggle 208 


I The Russian-Chinese Treaty 

of 1924 219 

II U. S. Military Forces in China 

in 1925 223 

III Foreigners in China; Their 

Number and Distribution . . . 226 

IV Foreign Military Forces in 

China 227 

V China in A Transitional Stage 

of Industry 228 

VI The Opium Traffic and China 233 

VII The Function of The Mission- 

aries 239 

VIII Letter From a Member of The 

American Volunteer Corps 

at Shanghai 240 






A, Maps. Page 

Post-War Struggle to Control China 11 

Japan's Powerful Position in China 24 

Centers of Civil War Struggle in China 38 

Shackles China Would Shake Off . . 40 

Political Map of the Pacific 182 

The Soviet Union and China 198 

Railways of Northern China and Siberia. . 218 

B. Illustrations. 

River Front at Canton 4 

Chang Tso Lin 56 

The New Versus the Old . 74 

Children on Their Way to Work. ......... 81 

Banner Given Chinese Peasants' Union by 

the Peasants' International 99 

Cotton Mill Workers on Strike 107 

General Strike Poster 112 

American Volunteers on Guard 122 

Victims of the Shameen Massacre. .129, 130, 131 

Strike Pickets on the March 137 

Sun Yat Sen. 147 

Canton "Red" Army Cavalry Patrol 157 

Memorial Service For Sun Yat Sen 166 

Strikers' Mass Meeting at Canton 212 


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The Post-War Struggle to Control China 

South Manchuria is so tboroly under Japanese, control that it is 
almost a Japanese province. Chang Tso Lin, Chinese military 
dictator of Manchuria, is recognized turnout China as a tool of 
■dtpanese imperialism. 

llrga is the capital of the independent republic of Mongolia. 
Mongolia seceded from China and has its own government, friendly 
to the Soviet Union. The country is largely desert land and 
in arly impassable. There are no railway lines and the roads are 
Incredibly had. 

Troops are easily and quickly rushed from Japan whenever her 
position is threatened in Manchuria. Regiments were thus hur- 
ried to relieve Chang Tso Lin last winter when he was so hard- 
pressed by the revolt of Kua Sung-lin. .... 
The Yangtze valley contains an immense population. It has. enor- 
mously great natural resources and a vast commerce. It has been 
hi acknowledged sphere of British influence. 

The nationalist independence movement is centered at Canton, 
the capital of the South China republic established by Sun Yat Sen, 
ponding the securing of China's national independence and the. 
luiination of a strong, democratic central government. 


"Tho at first sight political, and fought by diplomacy, 
the struggle for foreign control of China was not less one 
of international financial interests, contending for the exploi- 
tation of new opportunities for investment. Foreign capital 
was attracted by the great profits to be gained from the 
impending industrial revolution of China. In order to eliminate 
financial competition of other nations or to counteract po- 
litical moves on the part of other governments if such were 
destined to be harmful to its own expansion, foreign finance 
often solicited, and freely received, diplomatic protection. 
With a protection and promotion of foreign enterprire several 
governments combined the furtherance of a national ambi- 
tion of a more or less political character. ) All banks and 
syndicates in charge of the railways and loans bceame more 
and more generally recognized as indispensable means to 
the political and commercial ends of their respective govern- 
ments. The struggle for foreign control in China has accord- 
ingly been marked by a most singular and distinguishing 
feature, namely, the closest possible cooperation between 
foreign finance and foreign policy. The period was one of 
'conquest by railroad and bank'. 

"The tenacious determination on the part of several 
powers to control their respective spheres to the greatest 
possible exclusion of their competitors tended to prejudice 
not only China's integrity but also the full and free enjoy- 
ment of the treaty rights of others. Tho protesting vehe- 
mently and professing adherence to the 'open door' doctrine, 
nations nevertheless Viewed 1 with jealousy the preserves 
seized by others. They were driven to bitter diplomatic 
strife over each new prospective 'sphere'. In short, the 
tremendous pressure of modern imperialism coupled with 
modern capitalistic enterprise was, in China as elsewhere 
on earth, a constant menace to peace. . . ." — T. W. Over- 
lach, in his "Foreign Financial Control in China." 




China, the long-sleeping giant of the Far East, 
is fast awakening. The impact of the highly devel- 
oped capitalism of today upon the historically iso- 
lated culture and the self-sufficing social economy 
of that ancient land promises to bring about 
rhanges more far-reaching than those which have 
accompanied the industrial transformation of its 
ulster nation, Japan. 

The enormous significance which this awak- 
ening has for the future of the world and its inti- 
mate connection with the international struggle of 
the working class will become evident from our 
examination of the situation in the Orient and its 
relationship to the imperialistic policies of Great 
Britain, Prance, Japan, and the United States. As 
our analysis proceeds we shall realize more fully 
the correctness of the stand taken by Vladimir I. 
Lenin, the greatest theoretical and practical leader 
of the revolutionary labor movement since Karl 
Marx, when he declared that the problem of linking 
up the struggles of the exploited colonial peoples and 
subject nations for their national independence with 
the world-wide proletarian revolution against capi- 
talism' was one of the most important facing the 

The leading capitalist statesmen realize the 
danger to the social system they represent from an 





alliance of the workers and peasants of China 
with those of the Soviet Union. Just as the United 
States could not long endure half-slave and half- 
free, so the world cannot continue to be indefinitely 
the battleground of two social orders engaged in a 
deadly conflict for supremacy. During the present 
period the Far East, and China especially, is bound 
to remain one of the chief centers of this struggle. 
Tho solutions of particular crises may be reached, 
the underlying factors which make of this eastern 
republic a vital sphere of capitalist exploitation will 
remain. The rival ambitions of the United States, 
Japan, Great Britain, and France are fundamentally 
irreconcilable, whatever combinations they may 
form under certain conditions to accomplish a com- 
mon object or however united they may be in op- 
position to the Soviet Republic. It is essential, 
therefore, that the workers of all nations — and par- 
ticularly those of the United States, for this country 
has become the bulwark of reaction and oppression 
turnout the world — shall have a clear conception of 
the issues at stake in the Orient and shall under- 
stand how it effects their own struggle for eman- 

Historically Isolated. 

It is only very recently that the efforts of the 
Chinese to free themselves from foreign domination 
have become of importance to the proletariat of 
the rest of the world. For countless centuries China 
was isolated from Europe and America, with the re- 
sult that her very ancient civilization has had little 
influence on other countries. It is worth noting, 
however, that merchants and traders were accorded 
the lowest place in the Chinese social scale, the 
skilled worker and the farmer ranking above. The 



highest esteem was accorded the scholar. The pro- 
fessional soldier had no standing at all, a decided 
contrast to the social distinctions of the "Christian" 
nations of the West. 

Formidable barriers of impassable mountains, 
1 rackless deserts, frozen Arctic wastes, and the vast 
expanse of the Pacific made possible the early evo- 
lution of a culture quite distinct in type from that 
which was the result of the civilizations which suc- 
cessively developed in the Near East, along the 
hores of the Mediterranean, and later in England 
ind Central Europe, and which have given us our 
; ii ><ial heritage. Contacts with the West, made pos- 
ihle by the progress of mechanical invention and 
the discoveries and incentive for expanding com- 
merce, came about in the early part of the last 
century. Even then this huge nation did not be- 
come of much importance to Europe until within 
Mm last fifty years. 

A Decisive Factor to The Workers. 

The great size and enormous population of 
china would make its adherence to the cause of 
the world proletarian revolution a decisive factor. 
lis boundaries even at present after the loss of a 
considerable part of its ancient domain, takes in an 
area greater than that of the United States includ- 
ing the latter's insular possessions and Alaska. Its 
population of over 400,000,000 nearly equals that of 
.ill Europe and is twice that of North and South 
America combined, being approximately one-fourth 
Hie entire human race. 

Coal Enough for the World. 

To the capitalist class, however, the chief at- 
i raction of China is her great natural resources, 



the large scale exploitation, of which is just begin 
ning. Of these, the most important are coal and 

Vast deposits of coal underlie practically all 
the provinces, the known fields in 1924 covering 
133,500 acres. Part of the province of Shansi re- 
sembles western Pennsylvania in having easily 
worked anthracite mines located near iron ores, 
with cheap water transportation to the ocean. This 
province, according to the Commercial Handbook 
of China, published in 1919 by the United States 
government, is "capable of supplying the world's 
demands for centuries." The Handbook declares 
that "Practically the whole of Manchuria is one 
vast coal bed." "It is estimated," the report con- 
tinues, "that the Pinghsiang coal mines, producing 
a million tons yearly, could continue production for 
several hundred years." 

The American Bankers' Association caused a 
survey to be made of China a few years ago. This 
pamphlet, published under the title, '"China, an Eco- 
nomic Survey, 1923," estimated the coal resources 
at a much lower figure. While V. K. Ting, director 
of the Chinese Geological Survey, believes the coun- 
try has coal enough to supply the world's needs for 
a thousand years at the rate of a billion tons an- 
nually, the Association places the reserves at "prob- 
ably 40,000,000,000 to 50.,000,000,000 tons," equal 
to one-eighth those of the United States and one- 
third those of Great Britain. One-fourth of the 
coal is anthracite, an unusually high proportion. 

Altho it is generally agreed that China ranks 
third in the world in coal resources, mining until 
recently has been carried on in the most primitive 
fashion. Even yet it is so little developed that while 



the few modernly equipped mines already produce 

i third of the total, there was an output of but 

000,000 tons of coal in 1920, as against 80,000,- 

000 in England and 650,000,000 in the United 
; Itates. In the eight years from 1915 to 1923 China 
exported only 13,800,000 tons and on the other 
hand imported nearly as much, 11,300,000 tons. 
The richest of the deposits cannot be worked on a 
large scale until better transportation is afforded, 
foreigners, principally Japanese, own most of the 
large mines. 

Enormous Iron Deposits. 

The Chinese Geological Survey estimates the 
Known reserves of iron ores at 677 million tons. One- 
iialf is in Manchuria and one-fourth in the Yangtze 
valley. The American bankers' survey states that 
"This is probably one-half of China's total reserve, 
< : limated conservatively at one billion tons, one- 
I i.i If of which is workable by modern methods." The 
resources equal four-fifths those of England and 
:i fourth those of the United States, and are con- 
Hidered the richest in Eastern Asia. Most of the 
steel used in the country, however, is imported ow- 
ing to the backward stage of the industry. Japan- 
• control 80 per cent of the domestic production. 
In 1923 there were eight steel works operating or 
under construction, with an output altogether of 
about a million tons yearly. The Japanese have con- 

1 pacts for the export to Japan from Chinese mines 
of a million tons of iron ore annually. 

The comparatively backward stage of industrial 
development is mirrored in the statistics of iron 
production. The United States in 1920 had an out- 
put of 70,000,000 tons and about 36,000,000 tons of 
pig iron. China, with its huge resources, produced 



in the same year but 1,500,000 tons of which two- 
thirds was smelted within the country. As in the 
case of coal, the lack of transportation facilities has 
greatly retarded the development of the industry. 

Oil and Other Minerals. 

Valuable oil deposits underlie some of the pro- 
vinces. The Standard Oil Company and others have 
done considerable prospecting. Antinomy, tin, plati- 
num, nickel, zinc, copper, gold and sulphur are the 
more important of the other minerals found in the 
country. In Yunnan province rubies and other pre- 
cious gems are found. 

Electrical Development. 

Electricity is destined to be the motive power 
of the future. China has an abundance of water- 
falls which will become of great importance for its 
generation. The erection of huge dams with the 
consequent scientific control of the flood waters of 
her great rivers will incidentally be of vast benefit 
to her farmers and city dwellers by preventing the 
disastrous floods which have recurred at such fre- 
quent intervals thruout her history. 

Agricultural Wealth. 

Such a large population as that of China could 
not have been maintained except in a country of 
fertile soil. In many sections two crops are raised 
annually while in the south three are usual. In 
China proper there is little pasture land tho Mon- 
golia and Manchuria have vast tracts for grazing. 
Wheat, barley, millet, corn, and buckwheat are the 
principal crops of the North. The provinces of cen- 
tral and southern China produce Cotton, rice, tea, 
bamboo, and sugar-cane. The mulberry tree, on 



I lie leaves of which the silkworm lives, grows in the 
central part of the country. 

Considerable land is irrigated, the irrigation 
works of certain districts being very ancient. Canals, 
In combination with the thousands of miles of navi- 
gable rivers in the southern half of the nation, fur- 
nish an excellent and cheap means of transporta- 
Llon which has been utilized for many centuries. 
There are some 7,000 miles of railway with a num- 
ber of projects under construction. 

The Greatest Market in the World. 

The capitalists of the world are attracted to 
China not only because of its enormous natural 
n 'sources which promise an easily accessible and 
rlieap storehouse of essential raw materials for 
in.inufacturing but also because it furnishes a vast 
market for finished goods of all descriptions. Its 
trade with other nations reached in 1924 a total of 
1 1 .proximately $1,500,000,000 or three-fourths that 
of France before the World-War. Its trade with the 
United States the same year amounted to a quarter 
hi 1 1 ion dollars. 

The commercial possibilities of the Far East 
Itagger the imagination. Thus the entire foreign 
■ Minnierce of China in the past year represented 
I per capita volume of only one-fiftieth that of the 
United States. In 1921 its per capita was under 

■ while Japan's had risen to $25. Its total is still 
i than Canada's, tho the latter's population is 
Under 10,000,000 while China's exceeds 400,000,000. 
i it i lessors Whitbeck and Finch, of the University 
ui' Wisconsin, in their Economic Geography (1924) 
H.riare that "if China bought from the United 

i:iles as much per capita as Cuba did in 1920, its 



value would be nearly ten times as much as we sell] 
to the whole world." We shall quote on this point 
from a statement by T. Fred Aspden, vice-president 
of the International Banking Corporation, because 
it is vital that the workers realize how tremendous 
is the lure of the Chinese market to our capitalists. 
"Among the 400,000,000 inhabitants of China," he 
states, "even the slightest modification in the pre- 
vailing mode of life is capable of creating an enor- 
mous market for specific classes of imported goods, 
and, with the entire social structure in a state of 
flux and progress, trade possibilities may be char 
acterized as limitless." Every exporting nation has 
thus a huge stake in the exploitation of the Chinese 

A Profitable Field of Investment. 

Besides furnishing a vast market for their 
products and a reservoir of raw materials for their 
manufacturers and industrialists, China has of 
recent years become a field for the profitable invest- 
ment of surplus capital by the great banking inter- 
ests of Japan, Europe, and America. This has taken 
the form of loans to the Chinese government and 
the establishment of large industrial plants, mines, 
and railroads under foreign control and manage- 

It has been easy to wrest from a weak and 
often corrupt central government concessions of 
mining and railway privileges involving semi-polit- 
ical control of whole provinces, ninety-nine year 
leases of the most important harbors to other na- 
tions for their use as naval stations in the Par East, 
and to contract with the authorities loans of mil- 
lions for which the Maritime Customs and other 
national revenues and valuable natural resources 



lllive been pledged as security. To obtain these 

grants agents of the various foreign groups have 

orted to every crime on the calendar, ranging 

i Kim the wholesale bribery of national and provin- 

• ii officials to the subsidy of generals and politi- 

■ i ns for carrying on civil wars. Japan, for instance, 
In the long-continued struggle between the conser- 
<iiive North and the liberal-radical South, which 
has split the country in two a large part of the 
time since the Republic was established in 1912, 
iiniiished both groups with munitions of war. In 
the war between Wu Pel Pu and Chang Tso Lin 

■ veral years ago, England and the United States 
I hi eked the former and Japan the latter. 

The Shameless Pillage of China. 
Colonel Alexander Powell, author, soldier, and 
world traveler, in his book "Asia at the Cross- 
roads," thus characterizes this period: 

"We have witnessed one of the most brazen 
miples of international brigandage in the history 
-i I he world. In less than fourscore years we have 
teen China, a country as large as Europe, with a 
I ivilization reaching back into the mists of anti- 
quity, rifled of territory and resources by a handful 
Of predatory nations with as little compunction as 
ii gang of lawless boys would raid a farmer's 

"We have seen this vast, rich, peaceable, de- 
iv useless country bullied, intimidated, reduced to a 
il.e of virtual vassalage, and parcelled out into 
pheres of influence, leases obtained under duress, 
Hid concessions enforced by methods which, in 
i heir effrontery and callousness, are reminiscent of 
Mm free-booters of the Spanish Main. 

"The story of the pillage of China is saturated 



with intrigues and corruption, deceit and trickery, 
selfishness and greed. It forms one of the most 
shameful and depressing chapters in the history of 
our times and makes a mockery of Europe's con- 
tinuous championship of justice and fair dealing." 


Chines© Killed by the British on the Threshold of His Home. 

"Asia owes to Europe little or nothing. At most the white 
oion are teaching her improved methods of slaughter and pro- 
vldlng her with more perfect appliances for creating and dis- 

nting increased wealth for the few. As against these 

V «ry doubtful services, the record of the White- man's atroci- 
ties is ugly indeed. 

"Trade has been opened up with unwilling peoples; in 
lost every instance, by bloodshed or threats of bloodshed. 
Thenceforward, it was spread by all the horrors of war and 
l he permanent evils of unjust annexation. The traffic itself 
was by no means advantageous to the country- upon which it 
was thrust. Where the poisoning of millions of industrious 
and simple Chinese folk was profitable to the foreign mer- 
chants and traders, there poison was forced upon these peace- 
nil people at the cannon's mouth. In cases where emigration 
for the coolie means certain death within a short period for 
(he unfortunates who were kidnapped and shipped off, all the 
Pi monstrances of the government of China, whose subjects 
w ,-re thus outraged, failed to obtain redress." 

H. M. Hyndman, dn his "The Awakening of Asia." 



From Lansbury's Weekly, London 

Japan's Powerful Position in China 



With a vast field for the exploitation of new 
markets for manufactured goods, most promising 
: i venues for investment in commercial enterprises 
and the development of large-scale industry, an ap- 
parently inexhaustible supply of the cheapest and 
most docile labor, together with ready access to 
enormous resources of basic raw materials, it is no 
wonder that the Great Powers have engaged in a 
mad scramble for economic, territorial, and political 
concessions in China. These aggressions precipi- 
lated most dangerous international situations and 
led directly in one case to war — the Russo-Japanese 
conflict of 1904-1905. Back of the trader and the 
hanker have always stood the military forces of 
their respective nations. An excellent character- 
ization of this epoch is made by T. W. Overlach, a 
recognized authority on the subject, in his book 
"foreign Financial Control in China." (The pas- 
Hage referred to will be found near the end of this 

In order to understand these conflicts between 
the Great Powers, the results of which still effect 
their Par Eastern policies, it is necessary to review 
briefly the part played by each in the despoliation of 
china and to ascertain the vested interests which 
have thus accrued to them in that vast country. In 
I Ills way we shall comprehend the "hidden springs 
Of action" which dictate the attitude of the govern- 
ments of the various Powers as representatives of 




their respective ruling groups. We must remember 
that outside of the Soviet Union the working class 
has little or no influence in determining interna- 
tional policies, their power in the so-called "democ- 
racies" of the United States, England, and Prance 
being a mere delusion, — as witness the swiftness 
with which all these nations were swept into the 
shambles of the World-War. 

Hongkong, a Center for the British., 

The defeat of China by England in the First 
Opium War (1839-1841) opened the country to 
foreign trade. Hongkong was ceded to Great Britain 
by the treaty closing the war. The British pro- 
ceeded to establish this port as the center for their 
commercial penetration of the Orient. 

The British Empire already reached around 
the world. Additional territory was not then needed. 
The reserves of coal and iron in the British Isles 
seemed amply abundant and to open up new sources 
of supply would only mean competition with the 
home industries just then developing. What the 
English wanted primarily was a market for their 
growing manufactures and for the opium from 

Hongkong was well chosen. It controls today 
the trade of South China and approximately one- 
third that of the whole country. Its harbor is one 
of the busiest in the world. Ships of every nation 
anchor at the docks. It has become the key posi- 
tion to Great Britain's political and economic struc- 
ture in the Far East. In order to provide for the 
military defense of the city, England acquired land 
on the Kowloon Peninsula opposite in 1860 in the 
treaty ending the Second Opium War (1857-1860). 
In 1898 a lease was secured from China for 376 



more square miles, thus ensuring England's control 
Of the terminus of the important railroad from 
< ','inton. 

The British have tried in every conceivable way 
!o block Chinese plans for developing Canton as a 
great modern port because its increased competi- 
tlon with Hongkong would greatly lessen the lat- 
ter's importance. The Pearl river on which Canton 
i situated is navigable by ocean steamships for 
miles above the city but the location of Hongkong 
ill its mouth gives that port a tremendous advan- 
tage in foreign commerce. Sun Yat Sen's ambi- 
I lous project for making the southern capital a cen- 
ter for ocean-borne trade was largely responsible 
for the bitter and unscrupulous opposition he met 
With in his last years from Great Britain. Inciden- 
tally, these conditions show what a menace to Chi- 
na's own development the treaty ports have become. 

England's Sphere, the Yangtse Valley. 

When the other Great Powers at the end of the 
last century were parcelling China among them- 

elves into "spheres of influence," England secured 
i he recognition of her priority rights for the exploi- 
tation of the Yangtse Kiang valley. This district 
Includes the rich central provinces in which her 
financiers have heavily invested in iron and coal 
mines. The very powerful British & Chinese Cor- 
poration, Ltd.,— formed jointly by the Hongkong- 

ihanghai Banking Corporation, the great English 
bank of the Orient, and Jardine, Matheson & Co., 
I he leading British commercial firm in the Far East, 
represents the Interests of Great Britain in that 
part of the world. Overlach, to whom we have 
i of erred, states that with the exception of one other 
firm this corporation has been able to command 




a monopoly of British government support. In cen- 
tral and southern Shansi and Honan the Peking 
Syndicate, an Anglo-Italian financial group which 
was the "exception" mentioned above, had exclusive 
rights in explorations for coal and iron and was the 
purchasing agent for all supplies necessary in the 
construction of industrial plants, railroads, etc. 

Still Dominant Commercially. 

While British commerce with the Orient suf- 
fered greatly during the World-War and the tradt 
of Japan and the United States largely increased, 
England is still the largest factor in Chinese world- 
commerce thru her control of Hongkong. Her domi- 
nant position is symbolized in the fact that an 
Englishman is inspector-general of the Chinese cus- 
toms, in accordance with treaties requiring such an 
appointment so long as Great Britain has the major 
portion of the international commerce of China. 

Of late years British capitalists have invested 
large sums in the erection of cotton factories, silk 
mills, etc. Indicative of the spread of their interests 
is the rise in the number of English firms in China 
from 236 in 1880 to 590 in 1913. Five of the largest 
cotton mills in Shanghai are British-owned. 

Japan's Stake in China. 

Unlike her competitors, the United States and 
Great Britain, Japan has comparatively small re- 
serves of coal and practically none of iron. Yet 
adequate supplies of both are vital for a great manu- 
facturing nation today. Consequently the rich 
deposits of her neighbor across the Yellow Sea have 
been a magnet for early drawing the Japanese into 
the struggle to control China's development. 

Her overwhelming defeat of the Chinese in 


ISD4-1895 established Japan as a formidable rival 
1 o the European Powers in the Far East. A modern 
nniy and navy requires, however, an absolutely 
(insured and ample supply of iron ores and the coal 
necessary for its smelting, while industry requires 
it huge development of steel manufacture. The 
weakness of Japan in these basic raw materials is 
the key in large part to her international policy 
■ l ii ring the last three decades. 

Robbing China Wholesale. 

Altho deprived in large part of the fruits of her 
\ [ctory as a result of the intervention of Russia and 
[Trance, she succeeded, nevertheless, in establishing 
oontrol of Formosa, a large and important island 
lying off the coast of Central China. Her victory 
over Russia in 1904-1905 transferred to her posses- 
llon of most of the territory and other concessions 
Which that Empire had managed to acquire in 
northern China during the preceding decade. This 
made her virtually master of Manchuria. About 
the same time she secured domination over Korea, 
Mio its formal annexation did not take place until 
lit 10. 

During the World-War, while her ally England 
Was engaged in a life-and-death struggle with Ger- 
many on the fields of northern France, Japan pre- 
lented the infamous "21 demands" upon China. 
These were framed so as to subject that country 
completely to her. Tho the proposed agreement 
was followed by an ultimatum to which the weak 
Chinese government submitted, its terms have 
never been carried out, due to the tremendous wave 
Of indignation which swept China, resulting in a 
nationwide boycott of the Japanese, and because of 
I he opposition of the other Powers. Numerous loans 




to China during the last decade have ' further 
strengthened Japan's grip on the country. 

Shantung Trickery. 

Japan had acquired during the World-War the 
province of Shantung thru her conquest of the Ger- 
man forces at Kiachow. This rich district England 
and France secretly agreed should be retained by 
the Japanese as the reward for their services, de 
spite the fact that it had been originally extorted 
from China by Germany at the point of the gun 
China, moreover, had been induced to enter the 
World-War on the side of the allies largely thru the 
representations of the American minister at Peking 
that her wrongs including the theft of Shantung 
would be redressed at the peace conference. Ac- 
cording to Bertrand Russell, the English writer, this 
promise was never meant to be carried out. "The 
real and sole object of the allies in getting China 
into the World- War," he states, "was to destroy all 
German trade and power in China." Japan was 
allowed to retain the province at the Versailles con- 
ference, threatening to bolt unless granted this 
demand. In 1922, under strong diplomatic pressure 
at the Washington conference and because of 
changed conditions both at home and in China, she 
agreed to return the territory on condition that the 
Chinese accept a Japanese loan for the value of the 
railroad and other properties. Thus in case of a 
default in the payments Japan can step in and take 
possession again, tho the only title she succeeded 
to had been one gained by violence. China now 
has control of Shantung. 

With her powerful fleet operating from close 
at home, her well fortified mainland, and ownership 
of Formosa, Korea, and Port Arthur, Japan is able 



in dominate thru her army the whole Chinese coast 
line down to Hongkong. Safe and ready access to 
the vast coal and iron resources of China is thus 
ured. In addition, China furnishes her with an 
indispensable market for manufactured articles and 
mi return supplies her with cotton and foodstuffs, 
1 1 < rides iron and coking coal. 

The French in China. 

France, as we have seen, joined England in 
Waging the Second Opium War on China. Her troops 
purl icipated in the sack of the imperial palace and 
i In- frightful barbarities which marked this conflict. 

After her defeat by Germany in 1870 her poli- 
l lolans cast about for a sphere of colonial expansion 
nnd fixed upon southeastern Asia as their goal. An 
BXCUse was soon discovered for the seizure of the 
i 'ii h tern part of Indo-China, then nominally subject 
i < i the Chinese emperor. At the end of the century 
[Prance compelled China to lease Kwangchau Bay 
in her. Located on the extreme southern coast, 
tills was to become a great French naval center in 
ihr Far East. 

The Seizure in Tientsin. 

France is responsible for one of the most brazen 
HOlzures of Chinese territory which have ever oc- 
■ ured. On October 19, 1916, while she was at 
lloath-grips with Germany in Europe, standing be- 
fore the world as the protector of oppressed na- 
tionalities and the defender of civilization, the 
Krench representative at Peking without a word 
ni' warning or recourse to diplomatic negotiations 
IniMled French marines in the heart of Tientsin. 
\iicr arresting the Chinese soldiers on guard there, 
i iir French formally annexed 333 acres of the most 



valuable land, altho they already had a territorial 
concession. For year France had vainly tried to, 
induce China to cede her this particular area. 

Tientsin is the greatest seaport in northern J 
China and a city of tremendous trade significance! 
as it is only two hours by rail from Peking, the] 
capital. It has a population of a million. 

Policy of Czarist Versus Soviet Russia, 

While England's object in China was principally 
commercial, Russia's was distinctly territorial 
Checkmated by the British in her efforts to get 
control of Constantinople and thus access to the 
Mediterranean, with her northern ports ice-locked 
a large part of the year, Russia sought a way to 
the Pacific thru Siberia, which by 1860 had come 
into her possession. By diplomatic and military 
pressure she got the Chinese government to grant 
her the right of laying an extension of the Trans 
Siberian Railway thru .Manchuria to Port Arthur 
(then Dalny) to which she had secured a long term 
lease. Her sphere of influence thus became Man- 
churia. As we have noted, these interests fell to 
Japan in 1904 when Russia was defeated. 

This policy of imperialistic expansion consis- 
tently pursued by the Czar's government was set 
aside by the Bolsheviks when they seized control 
of Russia in 1917. Instead, the special privileges 
which the old order had extorted from China were 
surrendered and an ambassador appointed to repre- 
sent the Soviet Union at Peking. Only the Soviet 
Union has thus recognized the equality of China 
with the Great Powers. After prolonged negotia- 
tions a treaty was finally signed which has become 
a thorn in the side of the capitalist Powers for it 



"nl ii Wished a precedent in treating China as an 

How Germany Capitalized a Murder. 

In 1898 Germany had forced China to lease 

liow to her as a punishment for the murder of 

i wo German missionaries by a Chinese mob. With 

hfl lease went the political control of Shantung 

province and the right to its economic exploitation. 

Hit object was the establishment of a great naval 

l>mw> in the Far East. When Japan declared war 

"ii < termany and captured the city she claimed suc- 

ilon to all German rights but as we have seen 

forced to disgorge her plunder a few years ago. 

The Portuguese Hell-Hole. 

Italy has several concessions in China and has 
|| id considerable influence in the past as one of the 
principal European Powers. Belgium has partici- 
I'Mhd in several loans and some railroad grants. 

Unimportant otherwise, tho one of the first 

•< s to trade with the Chinese, is Portugal. This 

Lry owns a port, Macao, in south China, which 

cribed by E. Alexander Powell, in his book 

i at the Cross-Roads" as "the most notorious 

of iniquity in the China Seas, vice in every 

daunting itself naked and unashamed." Its 

pal industries are the opium trade, gambling, 

ill forms of prostitution. This reminds one of 

ill lOnglish writer's description of Hongkong during 

M si half of the last century under British con- 

"Hongkong was organized openly as an ene- 

i nmghold where English and Chinese smug- 

• ' i ihI pirates and desperadoes of every descrip- 

lllli found protection under the British flag." (H. 

Il,\ ndman, in his "The Awakening of Asia"). 



The United States and the "Open Door." 
There remains to consider the United State 
and its attitude in the Far Bast. Until recently thi; 
country held a high place in the esteem of the Ch; 
nese. For this feeling the "open door" policy laii 
down by secretary of state John Hay, in 1898, wai 
mainly responsible. Lately, however, the Chines^ 
have come to realize that this principle had itl 
basis, not in any peculiar affection which individu 
American statesmen had for them nor in an altrui 
tic standpoint exceptional to this country, but sole 
and exclusively in the practical needs of the Amer: 
can ruling class. 

The Spanish- American war (1898) marked thl 
entrance of the United States upon the stage of 
world-history as an active competitor of the Euro 
pean Powers for commercial privilege in the Orien 
With its vast continental expanse, its tremendou 
natural resources of which the systematic exploitaj 
tion on a large scale had just begun, this count 
felt no pressing need of further territory. Its su 
plies of coal, iron, and oil seemed amply sufficient 
China was thus looked upon as a good market fo; 
American manufactured products. It is conceive! 
of by our business leaders in the same light toda; 
but while our trade with the Orient was then ju 
beginning to reach an impressive total it is noj 
one of our most important customers. Many pr« 
phecies have been made by American trade expert! 
that the center of world commerce during this cen 
tury is destined to become the Pacific. 
"Dollar" Diplomacy. 
That Hay's note was dictated by consideration! 
based on American economic interest plainly an 
pears from the statement of W. W. Rockhill, a fo^ 



United States minister to China. After refer- 


• inc. to the grabbing of Chinese territory and the 

i "i l ion of "spheres of influence" by the European 

i ts and Japan which marked the end of the last 

litii ry, he explains the reason for the open door 

i <"ll<v: "It became apparent to the United States 

1 1 1 1 if it did not take proper measures to check the 

nient its trade would be wiped out, its religious 

'mil educational interests restricted, and its influ- 

and prestige reduced to naught." It should 

1)1)1 be lost sight of also that this principle, accord' 

1 1 Overlaoh, "recognized vested rights and spe- 

ll interests within spheres of influence, as long as 

| • nrtain amount of opportunity for others is pre- 


At that time the conflicting rivalries of the 
i it en I Powers were plainly leading to war in the 
"i i< nl.. It was a case of too many thieves wanting 
ill vide the plunder. None of the nations involved 
I I lien in a position to precipitate war. Accord- 
when Great Britain, whose economic interests 
)|| I he Far East were also chiefly commercial and 
III) was desirous of checking the ambitions of Rus- 
n d France, at once endorsed the note it was 
il lung before the others more or less grudgingly 
liml followed suit. ^ The policy laid down by the 
'I States was distinctly opposed to the interests 
lussia which under the Czar was seeking to 
I ihlish its political control over the northern prov- 
of China, with the object of reserving them 
he exclusive exploitation of Russian capitalists 
H ■ "inbination with the French, their allies. Japan 
1 llinl time favored the American proposal, seeing 
i II :i way of blocking any further penetration of 
in by her chief European rivals. 



An Equal Chance for Plunder. 

The ostensible result of the acceptance of t 
open door policy was to place the merchants a 
industrialists of all countries upon an equal footin, 
so far as plundering the Chinese was concerne 
Of course, none of the diplomats were so plai: 
spoken as to use such a vulgar term to describ] 
their objects, the function of diplomacy in a cap: 
talist system being to conceal by artful phrase tM 
real business. T. W. Overlach is not so squeamisl: 
In his book, published in 1919, he thus characterize! 
this whole period of foreign aggression: 

"As a foothold (by foreigners) in treaty port! 
was gained the process began of seizing territory 
The Powers were always demanding more privilege! 
of intercourse until of late years they started thlj 
determined and concerted campaign (1895) fol 
spheres of interest and railway concessions. 

"Foreigners were eager to build railroads, nol 
because they thot China needed railroads but tfl 
cause foreigners needed the profits of railroadr 
This then is a point of supreme significance, nami 
ly: that the bottom idea of all treaty stipulation 
and agreements as to intercourse, customs, extr 
territoriality, spheres of interest, railway conce 
sions and control, was not the welfare of the peopl 
of China but the profit and ease of doing busmeaj 
by the people of the West. With the exception j 
a few missionaries and of a few scholars, writers] 
and artists, the interest of the world is a mone; 
interest pure and simple. 

"That the motive of the foreigners was monej 
making or land-stealing the Chinese have fully dia 
covered from an intercourse of over a hundrei 
years. They have also discovered that under tij 


,lme of extra-territorialify, of international set- 
1 1' merits, leased territories, concessions, railway 

s and control, Chinese sovereignty and Chinese 

iii'.liis were disregarded at innumerable times and 
llii\v found that the interests of the Chinese were 
■"Mi- consulted, altho she had to pay the bills." 
| foreign Financial Control of China"). 

The Boxer Rebellion. 

We shall again take up the conflicting interests 

i i he Great Powers, — largely the inheritance of the 

flVttlries we have briefly described, in Chapter Ten, 

in. I) deals with the conferences in 1925 for the 

'ins revision and extra-territoriality. Before 

Ing on to the next phase of our subject it is 

sary to say a few.words about the Boxer Re- 

lllon which swept China in 1900. 

This vast popular movement expressed thru 
III foreign riots the bitter resentment of the Chi- 
; i gainst the exactions of the foreigners, the 
"in ued interference with the native life and so- 
il customs, and the wholesale robbery of their 
lory and violation of their national sovereignty. 
The revolt was suppressed by a military expe- 
llllim to Peking, participated in by troops repre- 
lilltig all the Great Powers. Again, as in 1860, 
imperial palace was sacked and priceless treas- 
of Chinese art destroyed. The campaign was 
icterized by the same vandalism and excesses 
Wlil'li had occurred in the Opium Wars. The enor- 
indemnity imposed on China has not yet been 
I lil i ml constitutes a heavy burden on that nation. 
Tlin United States remitted its portion for use as a 
Pit ft* I lo send Chinese students to schools in Amen- 
ity this fine piece of strategy the friendship 
• i In- Chinese was assured and at the same time 




a trained corps of educated native propagandist! 
was created for moulding China upon the America! 
model, thus preparing a way for its economic pem 
tration by the business men of this country. 

The Revolution of 1911 and After. ; 

The Revolution of 1911 which overthrew tin 
Manchus and established the Republic will be cojl 
sidered in the sections dealing with the Kuo MU 
Tang and Dr. Sun Yat Sen. The civil wars whicl 
have torn the country since the emperor was do<j 
throned are dealt with in the same chapter. 


How England Waged the First Opium War. 

"In 1840 began a series of attacks, bombardments, sacks 

lies, and massacres of the Chinese, commencing at 

"i and spreading to other ports, which have never been 

ned for infamous ferocity by any race of savages in 

• lifi world. ... I" ' 

"It was not a war, indeed, but a succession of butcheries 

■i n-.sacres, in which British soldiers and sailors ran little 

|| md covered themselves iwith infamy. They fought for 

I Ight to poison the Chinese people, in defiance of the 

iiiiijUon of the importation (of opium) by the Chinese 

MVH'nment; all solely in the interests of the opium smug- 

i profiteers." 

Centers of Civil War Struggles 
in China. 

^NCHUH^ ff$ 


PEKING- J^? S* .- 




1 I rtgland and France Fought the Second Opium War. 

"Hongkong became a fortified place of protection for 
) smugglers under the British flag. . . . Hong- 
was organized openly as an enemy stronghold where 
ih and Chinese smugglers and pirates and desperadoes 
ory description found protection under the British flag. 
The local officials at Hongkong actually went so far 
- lo iirant licenses, still under the British flag, to lorchas, 
mart coasting craft used for smuggling opium, armed 
i mned by Chinese pirates, who defied their own govern- 
igain under the British flag."— H. M. Hyndman, in his 
ili owing of Asia." 

Nol'o: — The incident which precipitated the Second 
m War in 1849 was the seizure by Chinese Customs 

lies of the Iorcha "Arrow," engaged at the time in a 

ling expedition into China. It was manned by Chinese 
l rrs of opium, men of the most desperate stamp. 






(A) Extra-Territoriality. 

The abolition of the right of extra -territoria- 
"issessed toy foreigners in China and the resto- 
m of tariff autonomy are major issues with the 

i se and will therefore be taken up for consid- 

il Ion next. 

In order, to discover how the right of extra- 

ri'lloriality originated we shall have to go back 

19 when the First Opium War occurred, occa- 

i by the destruction of 20,000 chests of opium 

|| i' >n ring to British merchants in Hongkong. Com- 

er Lin at Canton, representing the Chinese 

iiinient, took this summary method in order 

■ml the contraband traffic in that drug. This 

.is followed twenty years later by the Second 

i i War, waged by the united forces of England 

Mini France. The treaties concluding these con- 
not only forced the opium traffic upon China 
tint I legalized its public sale but in addition estab- 
| i"<l I he principle of extra-territoriality for their 
mills in China. The "favored nation" clause 
nlisequent agreements with other countries 
['erred this right to practically all foreigners 
Id lug in China. As an understanding of the is- 
fllti'" at, stake in the Par East is impossible without 
knowledge of the regime thus established we 
ii now consider just what this principle was and 
1 1 Ms results have been. 



The privilege of extra-territoriality gives J 
foreign resident of China who is accused by a Clil 
nese of having injured him- the right of being trini 
before a court established by his own consul, an 
according to the laws of his own country. Technf 
cally, when a controversy arises between a foreign^ 
and a native the foreigner has this right only if 
is the defendant. Actually, this qualification 
become a dead letter. Legal actions between f 
eigners themselves are also outside the jurisdictii 
of Chinese courts, but this aspect of the case "wffl 
not be dealt with here, tho it is also an anomaloul 
condition of affairs. The plaintiff in these "mixed" 
courts which try matters involving both the Chineai 
and foreigners is represented by an ' "assessor,"] 
sort of special legal advisor. The foreign assessor* 
have generally usurped the powers of the judge aid 
the Chinese assessors are either the hirelings of thl 
foreigners or have very little real authority. 

The "Mixed" Court at Shanghai. 

The most important of these courts is at Shang« 
hai. It has the reputation of being the busiest con 
in the world. There is no appeal from its decisi 
and it has the unlimited power of punishing in ea 
case as it sees fit. 

During the Manchu dynasty, the first "mix 
court was created at this city to try cases wh 
foreigners were plaintiffs against Chinese, t 
judges being appointed by the Chinese governme: 
At the outbreak of the Revolution of 1911, the co; 
su'ls at Shanghai on the initiative of the Britiq] 
arbitrarily took over this court, appointed cert 
Chinese assessors to represent that nationality, a: 
have ever since refused to recognize the jurisdi 
tion of the Chinese government over it despite 1 



peated demands by the latter and in direct violation 
■ I China's treaty rights. These assessors receive 
their salaries from the municipal council of Shang- 
hai, a body consisting, curiously enough, of six 
Englishmen, two Americans, and one Japanese, 
ml !i not a single Chinese. Peculiarly too, one of the 
Americans, Stirling Pessenden, is acting chairman, 
l L925) giving color to the charge that the astute 
Britishers are using this country to pull their chest- 
nuts out of the fire. The secretary, who is the 
responsible executive official of the council, is a 
iiritish subject. 

This municipal council was empowered by what 
known as the "land regulations" to conduct all 
the strictly municipal business, including the policing 
ni I he city. Gradually and steadily the council has 
boen increasing its authority in violation of treaty 
provisions, thru the passage of all kinds of "by- 
laws" and "regulations" which in reality exceed 
grant of power. The Shanghai statutes are en- 
forced by a police force, the chief and most officers 
.■I which are British, with Sikhs from India and, 
I'liiuese under them. These were originally re- 
liruited from the worst elements of the native popu- 
i .lion so that the very term "police" has become 
In (hat city one of contempt, according to Lo Wen 
i in, former president of the supreme court of 
i v king. "It is an open secret," he charges, "that 
I hoy monopolize the opium trade, protect secret 
prostitution, and patronize illicit gambling. Some 
of them whose pay is less than $100 a year have 
liooome millionaires." 

Their Master's Voice. 
Is justice to the Chinese plaintiffs to be expected 
from such courts? Take this one at Shanghai, for 



example. Its officials get their pay from the British-] 
controlled municipal council. The British have enor- 
mous business interests in that city. Their higl 
handed attitude towards China has caused them tc 
be bitterly hated. Are the Chinese assessors under! 
such circumstances likely to handle British plainij 
tffs severely or to go out of their way to aid injurec 
Chinese? Hardly! Or are the various consular! 
magistrates inclined to deal harshly with offender^ 
of their own nationality? Not very likely! Moref 
over, there is the requirement that the complainann 
must appear in person, together with his witnesses] 
This often means a journey of hundreds of milesj 
as with a few exceptions, the consular courts are hi 
the sea ports. What is true of the situation in] 
Shanghai is generally applicable to the other 55 
treaty ports. 

Foreign Contempt for the Chinese. 

The attitude of contempt which usually char-l 
acterizes the relationship of the foreign traders toj 
the natives intensifies the natural resentment of the] 
Chinese against their alien exploiters. Such signs! 
as that which formerly hung over the entrance toj 
a Shanghai park, "dogs, unless under leash, and] 
Chinese, prohibited" and the exclusion of Chinese] 
from the hotels of the foreign district proclaim this] 
feeling. Municipal band concerts in the city may! 
be heard free of charge by all except the natives! 
who are required to purchase admission tickets] 
altho they have furnished the bulk of the city taxes] 
out of which the musicians are paid. In ShameenJ 
the foreign settlement opposite Canton, the Chinese 
have to leave at sundown. Instances of such dis-| 
crimination could be multiplied a thousand-fold.] 
Until the recent disturbances nothing was thot of] 



i Igner beating up a Chinese coolie who had hi 

Hie way incurred his anger. 

Instances could be given of Chinese workers 

tiered by their alien exploiters. In the supple- 

|)|i ni , a few of the most flagrant are given. At this 
i ini il will be sufficient to quote the statement of 

A. Brailsford, editor, The Japan Chronicle: 

"I have known of a great many killings of Chi- 

i by foreigners, apart from the numerous judr 

ll munitions and military punitive measures, but 

In nvery case that I can remember the foreign 

lUthorities have found that the homicide was not 

Utpable and the Chinese authorities had no say be- 

lli hi of extra-territoriality." 

Taxation Without Representation. 

The Chinese residents of the international set- 
' i' i nr nts in various Chinese cities have no rights 

i than that of paying taxes and "keeping their 

ilhs shut." Still in all these concessions the 

• i;-,tiers are overwhelmingly outnumbered by the 

BS. Thus in the International Settlement at 

lliuighai there is a Chinese population of 786,708 

i "wded into the 5584 acres comprising the tract. 

i hr principal foreign group in the concession is the 

Ish who rule with an iron hand, altho there 

hut 5431 of them in the whole place. 

The Dictatorship of Foreign Capital. 

While thus constituting the overwhelming ma- 

irlly of the inhabitants the Chinese are not allowed 

ote for the members of the municipal council 

linr lo hold such positions. The 17,000 Japanese 

recently received the right of electing a single 

uicilman after a bitter fight. 



The population of the native city is estimat 
by the inspectorate at approximately a million. Th 
nearly one-half of the Chinese in Shanghai ard 
living under a foreign rule which allows them in 
their own country not a single of the most element 
tary political rights. In addition, there are thou- 
sands of Chinese who work in the settlements bu| 
sleep in their own sections. The day-time populal 
tion of the two foreign settlements is thus estimate! 
to reach a million and a half. In this way it m 
evident that about three-fourths of the entire popui 
lation, or a million and a quarter Chinese are unden 
the domination of about four thousand foreign merl 
chants and traders, principally British, whose objecl 
in the country is the completest possible exploital 
tion of the natives. 

Even among the foreigners participation in th« 
governing body, the municipal council, is reserve! 
exclusively for those householders paying taxes ol 
an assessed rental valuation of at least 500 taell 
(about $350) or who own land of an equivalent 
value. Readers familiar with American history wifl 
recall the slogan: "No taxation without represenj 
tation," which we are told, inspired the war thru 
which this country gained its independence (th<| 
historical research has shown that the resentmenl 
of certain American "patriots" at having their profl 
itable trade of smuggling into the colonies inten 
fered with really had more to do, with precipitating 
the Revolutionary War). 

A Chamber of Commerce Body. 

The members of the Shanghai council receivij 
no salary for their positions. They do not nee< 
any. They are directors or managers of the prin 



elpal business houses. If we could imagine our 

most rabid open shop chamber of commerce mem- 

bars composing the Chicago city council, with only 

rive thousand of the wealthiest inhabitants having 

,. right to vote, and these voters consisting only of 

I inzens of some other country, Japan, for example, 

* ml the hundreds of thousands of native-born 

\ nigricans denied every political right and treated 

ocially as on the level of dogs,— we should be able 

in understand the determination of- the Chinese to 

Mid a similar state of affairs in their own country. 

The Iron Hand in Tientsin. 

These conditions are not local to Shanghai. In 

Tientsin, the chief port of the North, the Powers 

ve extorted from the Chinese government tre- 

udously valuable concessions of land along the 

er-front. The British/French, Japanese, Italians, 
Hid even Belgians have thus obtained in all a 
i .on I age of nearly four miles. 

There are about a million Chinese in the native 

, . 1 1 v . In the British concession there are but 682 

IQnglish citizens to 33,000 Chinese. Recently the 

HK'hise was given to the latter but not to all, 

however. Only those who were taxpayers received 

i In vote. The British, moreover, provided arbitra- 

l.hat five of the nine members of the newly- 

uted municipal council must be subjects of Great 

rllain. Thus do the English enact the dictator- 

hlp of their trading classes abroad while at home 

limy denounce their Communists for exposing capr 

i iIIhI democracy as a sham and fraud! 

Like Our Own South. 

The conditions which prevail in the British 
mmossione exist in those of the other countries. 



The efforts of a small exploiting minority to hold 
in check the natural struggle of the oppressed must 
everywhere produce like results. The treatment of i 
the native Chinese remind one of the way in which 
the Negroes are treated in our own South. In both, 
instances the ruling race is either outnumbered orj 
there is a strong minority of the suppressed whose, 
potential strength is a constant source of fear to] 
the oppressors, a situation largely accounting for] 
the extreme measures so readily used. The editor 
of a British newspaper in Shanghai, during Harry : 
F. Ward's visit there last summer, thus expressed 
this sentiment: "You must recognize that there: 
are slave races in the world and the Chinese is one 
of them." 

Extra-Teiritoriality Must Be Abolished. 

The most insistent demand of the Chinese is] 
for the abolition of the right of extra-territoriality. 
They point out that China is today the only country 
in the world where such an anomalous state of 
affairs exists. The treaty of Lausanne ended the 
"capitulations" which in Turkey had placed alien 
traders on a similarly privileged basis. Germany 
lost this privilege in China in consequence of her 
defeat in the World War. The Russians voluntarily 
surrendered theirs. Both nationalities, the Chinese, 
aver, have benefited tremendously by the friendlier 
relations thus ensured. 

Thru the operation of this privileged status the 
foreign settlements have become independent states 
within the Republic, not bound by its laws nor sub| 
ject to its officials. Yet in every such colony, aJ 
we have noticed, the Chinese are in the overwhelm- 
ing majority. The treaty ports, of which there are] 
now 49, have become a haven of refuge for discre- 



(IH.ed native officials, fleeing the wrath of their own 
people, and of hated militarists driven from power. 
Wealthy Chinese take up their residence in them in 
order to escape their share of the national taxation. 
Phese cities are also the centers from which the 
Infamous opium trade is directed, and that of new 
flrugs which are being illicitly supplied in its place. 
Phey are the hotbed of foreign intrigue and a dump- 
ground of foreign manufacturers. Lately they 
have become notorious for the exploitation of child 
n mi woman labor in the huge factories erected 
Within their borders. The treaty ports have thus 
1 1 1 \vn into festering sores on the Chinese body 

China is loath for these reasons to afford 
further facilities to foreign commerce by increasing 
the number of such ports or by granting foreign 
traders the privilege of carrying on their business 
In I he interior, missionaries at present only having 
'In' latter right. On the other hand the growing 
pressure of international capitalism requires the 
breaking down of all such economic barriers, as 
ili 'is also the developing Chinese capitalism itself. 

(B) The Customs Restrictions. 

Not only were the foreigners given a privileged 
| 1 1 1 is in China thru the early treaties forced upon 
1 ■overnment but they were also placed in con- 
""l of the administration of its maritime customs. 
• lie importance of such control is shown in the 
jM'ominent place which the struggle for tariff auto- 
Homy has taken in the nationalist movement. 

According to its foreign treaties China cannot 

i duty exceeding 5 per cent on either imports 

\ ports without the consent of the Powers. The 



valuation on which this rate applies was established] 
in 1846 and has been changed only twice — in 1902 
and 1918. The percentage itself was not alterec 
for nearly a hundred years, until the customs con-j 
ference of last fall. As prices have risen consider- 
ably since the last revision the tariff does not ac-j 
tuajly bring in more than an average of 3 per cent 
today. It requires, however, the approval of ever} 
nation with which China has entered into commer- 
cial relationships before any change whatsoever car 
be made in either the rate or the basic valuations. 
As each country trading with China is naturallj 
opposed to having the import duties increased oi 
the articles which it exports to that nation and o^ 
the other hand is equally against any raise on thos^ 
exports from China which supply it with raw ma- 
terial (and in the case of Japan, foodstuffs also)^ 
it is manifestly an impossibility to secure the re- 
quired unanimity for fundamental changes in the 
Customs under ordinary circumstances. The vital 
conflict in the interests of the Powers contributes) 
of course, to this same result. 

Moreover, provisions in the same treaties proj 
vide that native goods owned by foreigners and des 
tined for export, or foreign goods foreign-owne^ 
and being transported into the interior of Chin? 
for their final sale or destination, shall not be taxe<] 
in the course of transit more than 2% per cent of 
their value. On the other hand, the same goodj 
native-owned or bound for the same port and nca 
overseas tho over the same route or native-owne<j 
being shipped from one point in China to anothet 
are subject to all manner of taxation by Chinese 
provincial authorities. The result of these condw 
tions, it is quite evident, is to give the foreign tradej 



i 'feat advantage over his Chinese competitor and 
to force the Chinese governmental authorities to 
t- ii force discriminatory regulations against their 
own people. 

In this connection a word of explanation must 
be given in regard to the provincial taxation on 
goods in transit, referred to in the preceding para- 
graph. This tax is termed the "likin." Its rate 
Varies greatly in different provinces and sometimes 
■ven within a province. It is arbitrarily laid by the 
provincial governors or the Tuchuns, as the military 
r.ovornors are called, who in almost all cases domi- 
nate the civil administration. Its imposition is a 
fruitful source of income for the expenses of the 
luchuns in maintaining the large mercenary armies 
Which enable them to carry on private wars for 
their own aggrandizement. 

Conflict Over Customs. 

The serious conflicts involved in such an ap- 
1'iinitly technical question as the customs rates 
1 well illustrated in the International Conference 
i" ill at Peking, beginning October 26, of last year, 
'■> iliscuss the revision of the Customs. Japanese 
Uowspaper comment revealed strong opposition to 
>■ loring administrative control of the tariff to the 
1 Im nose or to any considerable increase in its rates. 
Oil I lie one hand, Japan takes a larger proportion 
III •'hina's exports than does any other country. 

lie other hand, one-third of all her own exports 
|0 |.o China. Any general increase in the customs 
- nil id therefore injure her trade materially. 

The bulk of Japanese exports to China consist 
Of yarns and cotton goods of a cheap grade, which 
||i»i' experts admit can easily be made in the Chinese 




mills, — and in fact are even now being ■manufac 
tured there to an increasing degree. Under tarif 
autonomy it would be natural for the Chinese to] 
manipulate their customs duties in such a way as tij 
protect the industries they desire to foster and t 
prevent the export of raw materials and foodstuffs 
needed in the country as well as to encourage thej 
exports of such articles of which they had an over| 
supply. The United States pursued an identical 
policy for the building up of its own manufactures. 
Such a system would injure Japan very much more 
than Great Britain or America, whose exports to 
the Orient consist principally of machinery, high 
grade cotton goods, oil, etc., which the Chinese will 
be unable to supply themselves for some time. 

Crippling the Central Government. 

Every government must have sources of reve- 
nue for sustaining itself. In countries like the United 
States the customs receipts form a considerable 
part of the governmental income. The total of the 
Chinese customs, however, which can be applied 
for running expenses is very small, hardly five per 
cent of the total, for nearly the entire revenue is 
pledged as security for interest and redemption of 
the principal of the many foreign loans made bjW 
various financial groups to China in the past. 

The Powers complain that the central govern-j 
ment is weak and disorganized. The charge smacks 
of hypocrisy for precisely this state of affairs haaj 
best served their own purposes of aggrandizement. 
Japan's policy has always been to keep China, 
divided. Disorder in the provinces has often been 
instigated . by the same foreign interests who stand 
most to gain by intervention because of the trouble 


• in \ have provoked. Union members are familiar 
nil (he similar way in which employers in a time 
i hike have incited violence and then used the 
o to crush their workers' revolt. 

What Finance Capital Wants. 

The international policies of capitalism vary, 
(lowover, in accordance with its changed needs. 
1 i iy in general the dominant capitalist groups are 
'i" Financiers, those popularly designated as inter- 
lllonal bankers. What they want is primarily a 
Rflili' Held of profitable investment for large accu- 

i ions of capital. The security they desire can 

! obtained only when national concessions and 
■ i ii I h are enforced by strong centralized govern- 
ii in, 
The consortium, or combination of banks re- 
IM'mni' tiling the Great Powers, formed originally in 
lor the purpose of monopolizing the financing 
hiiia, is still in existence. The place of Ger- 
, which dropped out during the World- War, 
linen taken by the United States. The Soviet 
Dillon, of course, is not represented. The partici- 
r, banks now are made up of British, Japanese, 
nil, and American financial interests. The con- 
llluin thus represents a coordination of conftic- 
\ national interests. What it wants set up in 
i /i is a "strong" central government, which will 
1 1 ii in with an iron hand "law and order" turnout 
Oountry. Such an authority, moreover, must 
iwenues adequate to "carry on" and to en- 
decrees in the remotest districts. This 
ii*', however, is precisely what the Peking gov- 
ii l lacks. A revision of the customs schedule 
■ therefore inevitable, and it was this step to 



which the conference in 1925 agreed, tho very muo 
opposed to the immediate interests of certain i 
the Powers, 

The British Bank Graft. 

The British control the administrative machi] 
ery of the customs, as we have seen, thru treiii; 
provisions requiring its head to be a subject of Greaj 
Britain. The executive staff includes also citizeni 
of the various other foreign nations with whicj 
China has diplomatic relations. 

The customs revenues are deposited as the; 
are collected in certain of the foreign banks 
China designated by the bankers' commission. Thl 
body then apportions the funds to the redemptioi 
and interest payments of those foreign loans securci 
by the customs and also to the Boxer indemnity. 
Under this arrangement the receipts of the Chinesi 
government are placed at the disposal of the finan- 
cial agents of the very same foreign groups whic] 
are engaged in a continual effort to extort from tin 
authorities every possible concession. These largi 
deposits also aid in preserving the credit of thj 
banks receiving them, thus maintaining the stand" 
ing of foreign institutions like the Hongkong an( 
Shanghai Banking Corporation, the financial re< 
presentative of British imperialist ambitions in thl 
Far East, at the expense of the Chinese themselved 

The effect of these customs regulations is simil 
lar to that of the right of extra-territoriality. It II 
to strangle the independence of the country anl 
to ensure the continuance of the chaotic conditions 
which have been prevalent. Unless the Powers reacll 
some agreement for the voluntary surrender of th^ 
privilege of extra-territoriality and restore the conf 



m. I of the customs in China, the Chinese will be 
forced as a matter of national self-preservation to 
abrogate the treaties creating this condition even at 
the risk of war. They could logically denounce such 
Agreements on the ground that they had been ob- 
i 1 1 ncd by fraud and violence, a reason which in this 
.Muiitry is sufficient to make contracts between 
lirlvate citizens null and void. 

The proceedings of the international customs 
. mi Terence held in Peking last fall are discussed in 
Chapter Ten, which also deals with the likin and 
the discriminations against Chinese trade from the 

"China has been stripped of the fortress-harbors on her 
HDflBt; provinces and dependencies have been torn from her 
borders from Korea and Mongolia round to Tibet and Tong- 
Mng. Foreign trunk railroads have cut strategic thorofares 
UP nnd down and across the heart of her dominion. Foreign 
Iwnkers and debt commissioners have held in ransom her 
..n.mces and have dominated her trade."— Gardner L. Hard- 
in his "Present-Day China" (1916). 




military dictator of Manchuria, is hated by the 
mass of Chinese for his subserviency to the 
Japanese in particular, tho he has also been 
a tool of the other imperialist Powers. 


". . . China presents the greatest industrial and com- 
ffltrOlal opportunity not only of the world today, but the 
■fittest which the world has ever seen. With a population 
•i four hundred and fifty millions of people, according to the 
estimate of the Maritime Customs, it has a national 
i ii .imounting in round numbers to one dollar per head of 
population, or less than one-twentieth proportionately of 
|Kl debt of her neighbor, Japan. Were China to borrow up 
|| lha same figure as Japan, that is, over $20 per capita, she 

Ill add to her debt the unimaginable sum of $8,550,000,000 

(|0ld)i the total of which would suffice to build 170,000 miles 
<ilway at the liberal estimate of $50,000 gold per mile. 
"Some few years ago an investigation of the effect which 
■ Mncse railroad development had upon the commercial 
|PftWth of China showed that between the years 1900 and 
IU0/ an increase of 45 per cent jin Chinese railway mileage 
|d In-ot about an increase in the net imports and exports 
Imounting to 156 per cent during the jsame period. Suppose 
• were to extend these figures and estimate the future 
ss of China on the basis of an expenditure on her rail- 
equal to $20 per capita of her population. Can you 
i "in nny idea of what volume her business would then be? 
• f)l result would, it must be confessed, be unintelligible to 
ii dinary mind if placed in plain figures. ,.We may, how- 
put it in another form and say that with a peri capita 
1 ii equal to Japan's, China could build 100,000 miles of 
.y, cover the country with permanent roadways, improve 
inals so as to bring the products of her enormous popu- 
Ifttlnn to her own markets at the lowest rates, and could still 
enough left to build up a merchant marine such as 

"id have no superior on the face of the earth."— From 


1 1 by J. Selwin Tait, Chairman of the Board of Directors 

| Washington and Southern Bank, of Washington, D. C. 

Illi inn-led by Hornbeck). 



"Conditions in China are similar to those of no other 
country. The nation is virgin soil for commerce and within 
the next few years there are scores of import and export 
items which can be expanded infinitely because the Chines* 
people are there to produce or to consume in unlimited quan- 
tities."— High. 

Among the 400,000,000 inhabitants of China even thflfl 
slightest modification in the prevailing mode of life is capable i 
of creating an enormous market for specific classes of im- 1 
ported goods, and, with the entire social structure in a state ' 
of flux and progress, trade possibilities may be characterized 
as limitless." — T. Fred Asipden, Vice-President The Interna 
tional Banking Corporation, in the "Transpacific" (Tokio).l 
Quoted by High. 

"The people of the United States are destined to be] 
drawn into increasing commercial contact with China, andj 
China, potentially powerful in human and material resources, 
is destined, by the development of these potentialities, for aj 
place of world leadership. In the consequences of that de- 
velopment are contained issues of the utmost importance, not] 
alone for America, but for the entire world." — High, in his] 
"China's Place in the Sun." 



(A) The Rise of the Factory System. 

The modern factory system, first established in 

• ,i in the treaty ports, has in the last quarter 

|1 |a century spread up the Yangtse Kiang and the 

■Teat river highways of the South, and along the 

i .ill roads to the principal trade centers of the coun- 

The tremendous decrease in the importation 

,i i :iiropean-made goods during the World-War ac- 

. i, i,i ted this movement greatly. In the districts 

■• Mi-it include Shanghai and Hongkong, the primi- 

| ■ hand industries have been superceded by large- 

Iu manufacturing of the western type. Millions 

If < hinese are today subject to an economic envi- 

ment quite like that which exists in America and 

(t)u i ope. 

What this breakup of so ancient an established 

|0(«lal system as that of China's means can be ap- 

lated only by a knowledge of the type of eco- 

ilc organization which has prevailed in that 

pountry for many hundreds of years. Charles G. 

Hnlchelder, formerly acting chief of the Far East 

ion of the Department of Commerce and now 

urer on international relations at the New York 

University Graduate School, thus describes the old 


"The economic organization of China 
was for ages well balanced. Each region 
produced very largely the goods which it 




consumed, and there was relatively little 
need for the transport of large quantities 
of foodstuffs or manufactures. A large 
percentage of the population lived in vil- 
lages, which were almost entirely self-sup- 
porting, and the local handicraftsmen sup- 
plied the local demand. The artisan worked 
for customers whom he knew and whose 
needs could be planned for in advance. 
There was no need for him to sell in distant 
markets, where demand and prices fluc- 
tuated according to tendencies which he 
could not understand. The lack of roads 
acted like a high tariff to protect him from 
competition from outside the village. 

"Each family was assured of a living, 
tho perhaps a very modest one; and life, 
while arduous, was not unhappy. Machin- 
ery was unknown, and the muscles of men 
and animals supplied power for all opera- 

The Machine Versus the Hand-Worker. 

"This primitive system," he continues, 
is now being forced to compete with the 
cheaper goods of the Occident, produced 
by machines driven by steam and elec- 
tricity, which enable one man to do the 
work of hundreds. At the same time rail- 
roads, highways, and steamships bring 
these articles to every town, with a mini- 
mum cost for transportation. Naturally 
the hand-worker cannot meet the prices of 
machine-made commodities, and is gradu- 
ally forced out of business and driven back 



(o the already overcrowded land. The 
whole social organization is .disrupted. In 
l he teeming cities of China the man who 
loses his job is like a man who loses his 
footing in a panic-stricken mob fleeing 
from a burning theater. He is trodden 
under foot, to rise no more." 

The Handicraftsmen Doomed. 

( Cotton spinning and weaving are among the 
lldOBt occupations of the Chinese. Batchelder de- 
Ul i ■ I he ruthless destruction of this ancient handi- 
- in by the factory system. 

"Hand-spinning in China is fighting 
for its life, and hand- weaving is only kept 
alive by the importation of machine-made 
cotton yarn from India, Japan, and other 
countries. It is, of course, evident that 
hand-labor cannot compete with large- 
Hcale production, and the handicraftsmen 
are doomed in all except special articles." 

'The complicated influences of the world market 
illlivh the introduction of capitalism brought to 
III 11 u has added to the sufferings of the masses 
in this sudden spread of machine production. 

"Just when the hand- workers were 
facing this crushing competition the prices 
of their raw materials were enhanced by 
the demand for them for export. China, 
once the only source of silk goods, now 
exports large quantities of raw silk. 
Further, the foreign requirements for the 
foodstuffs of China cause them to be ex- 
ported, thus increasing the cost of living, 



and the export of rice has to be forbidden 
by law. All the odds are against the Chi- 
nese hand-worker and no relief is in sight. 
He is driven to desperation, the victim of 
economic tendencies as ruthless and as 
inevitable as the law of gravitation." 

Readers will recall how the dispossessed wor 
ers of England tried to destroy the machines. 

". . . Even in the Occident the 
gradual introduction of- the industrial sys- 
tem caused much distress among the work- 
ers, leading even to riots and the destruc- 
tion of machinery by the hand-workers 
whom it had displaced. In time, however, 
they were absorbed to tend the machines 
and a new social organization displaced the 
old. This process is now going on in Chi- 
na, intensified by the larger population, 
. . . and by the relatively sudden im- 
pact of the two civilizations." 

Factory System Spreading Fast. 

The industrialization of this Oriental republic 
has made particularly remarkable strides in thl 
decade just past. Thomas Bowen Partington, Pel- 
low of the Royal Colonial Institute and of the Im-j 
perial Institute of Great Britain, stated last year in 
the Fortnightly Review, one of the leading English 
magazines, that China then had over 1,400 modern] 
industrial plants, besides thousands which were! 
semi-modern, whereas ten years" previous therd 
were but 558 factories in the whole country. Ac- 
cording to Wellington Koo, former Chinese minister] 
to the United States, nearly all the manufacturing] 



lf| lilt) country twenty years ago was done by hand 

i in small workshops. He estimates that by 

there were almost 19,000 establishments using 
mi or electric power and labor-saving machin- 

The Cotton Spinning Industry. 

The industry most highly developed along 

iiiMilrrn lines in China is that of cotton spinning 

.mi weaving. The first cotton mill in the country 

erected at Shanghai in 1890. Between that 

|ltl< and 1903 another had been built, the two hav- 

u combined capacity of 65,000 spindles. By 

iliere were 14 mills with 400,000 spindles. In 

| III (I this had increased to 42 mills having a total 

lf>4,000 spindles. The number of both mills 

i spindles practically doubled by 1923, an eco r 

niulc survey of China in that year made for the 

vinriican Bankers Association showing 83 mills 

hi, :>>, 666,000 spindles, and 300,000 more in course 

■ instruction. The Chinese Cotton Millowners 

< iation reported by the end of 1923 a total of 


The growing importance of this industry in 
| til n u is indicated by a comparison of its equip- 
I with that of the two leading nations in cotton 
iimniiracturing, — England and the United States. 
I In- number of spindles in these three countries 
hIihwh a gain for the period from 1910 to 1915 of 
II i M T cent by China, 10 per cent by the United 

;, and less than one per cent by England. In 

il numbers China had 812,000 in 1910 and 

|U!U.O00 in 1915. During these five years Great 

ins total increased by 500,000 to 56,500,000. 

i h. "1,000,000 American spindles had risen by 1915 

'.:!00,000. Since then the number of spindles 



in China has more than doubled while that in tin 
other two nations has remained practically thj 
same. So rapid has been the Chinese development 
that the productive equipment of its plants closely 
approaches Japan's tho the latter had many yearn 
the earlier start. Japan is estimated to have ap- 
proximately 3,600,000 spindles. 

A feature of the industry in China is the smalll 
proportion of looms to spindles. The Chinese miffl 
specialize in the production of cheap yarns. ThesB 
are distributed to points in the interior of the counr 
try where they are woven into cloth on hand-loomj 
by the peasant women during the long winter 
nights. This combination of the most modern irJ 
dustrial technique of large-scale production with 
the slow, laborious processes of the ancient handw 
crafts reveals that this industry as a whole is still 
in the transitional stage. Nevertheless, the number 
of looms is fast increasing. In 1923 there were 13,J 
403. In 1924 it had risen to 15,000. 

Increased Production of Cotton Products. 

The statistics of Chinese foreign trade since 
1913 show a significant growth of the part whicW 
its manufactures of cotton products play in world- 
commerce. Altho China ranks third in the growing^ 
of cotton the native supply was far insufficient fori 
the demands of its own mills. This resulted in a] 
rise of the importation of raw cotton from 17,767,-; 
333 pounds in 1913 to 237,514,733 pounds in 1922.' 
On the other hand a curious anomaly of Chinese 
foreign commerce is the fact that in 1922 a total 
of 112,268,000 pounds of raw cotton was exported,] 
a gain of one-third over the previous year. Most 
of this went to Japan, China's chief competitor irJ 



||l production of cheap cotton goods. The imports 
Hon yarn decreased from 358,048,299 pounds 
10.13 to 162,597,833 pounds in 1922, or 50 per 

\l the same time the native production of 

II ii was fast increasing. There is no record of any 

port of yarn at all in 1913. In 1923 exports of 

It'll were 5,168,000 pounds, a gain of 50 per cent 

i the year before. This increase of exports plus 

drop in imports shows a net decrease in the 

mit of foreign yarns required in China of 190,- 

I 106 pounds. This difference was made up by 

increased production of the Chinese mills, 

ll It'll, as we have noted, doubled in number and 

(iilpinent during this period. The greatly enlarged 

llput of yarns stimulated the growth of the woven 

imIh industry. Wellington Koo states that the 

linher of power looms increased four-fold from 

IIH to 1922. While cotton piece goods were one- 

of the imports into China in 1913, ten years 

•••I. i I hey had fallen to seventh place. Eight varie- 

of such goods were imported in 1913, totaling 

I7S.179 piculs (one picul equivalent to 1331-3 

Is). Imports in 1923 dropped- to 17,016,884 

wiIh. On the other hand it was not until 1922 

(liiil exports of cotton cloth amounted to much. 

j Unit year five varieties (including woolen) were 

H purled, totaling 104,345 piculs. This rose in 1923 

| 713,605 piculs, a gain of nearly 600 per cent. 

Textile Machinery Imports Increasing. 

i.vmptomatic of the building up of the native 

>n industry are the increasing imports of textile 

in iiiuery. While less than 2,000 tons of such ma- 

iv was shipped from England to China in the 



boom years 1919 and 1920, there were 19,319 to 
exported in 1922 during the 'crisis when the Lane 
shire spinners and weavers were idle or on sh 
time. The United States commerce reports stai 
that over twelve million dollars worth of textile m 
chinery was purchased from Great Britain a 
about one-half as much from the United States a 

Foreign Capital Flowing In. 

Not only is textile machinery being importod 
by China on a considerable scale, but foreign capitl) 
is flowing into the country in an increasing voluni^ 
Five of the largest cotton mills are under Britia| 
control and thirty-two under Japanese. The indu»« 
try is more than half controlled by these two M 
tionalities. "Every year," Partington writes, "sol 
an increase in the number of factories being estaM 
lished, either to take the place of old native types i.i 
production or to manufacture some articles prevl 
ously imported from abroad." The greater numfod 
of these mills, it must be remembered, are eithflj 
British or Japanese. The influx of capital fr« 
Japan has been especially marked of late. An expM 
for the Mitsui Company, one of the great Japanol 
corporations, who made a detailed study of indul 
trial conditions in China for that company in 19| 
predicted the transfer of the bulk of the coll 
spinning industry of his country to the mainlaj 
because of its cheaper and more tractable labor a 
nearness to the large cotton growing districts. 

Silk and Flour Industries. 

The production of silk and flour have been a] 
modernized to a large degree. Altho it was ol 
in 1878 that the first modern plant for reeling g| 



i erected under the direction of a French expert 

id Shanghai, there are now, according to Parting- 

'M, 218 modern filatures working night and day. 

Pho exportation of raw silk has grown until it is 

iday the largest single item in China's export trade, 

amounting in 1922 to $91,048,480. 

Just as the huge cotton factories, equipped 

•'llli the latest machinery and specializing in the 

uinlivision of labor, have driven out the old-style 

i"i in I -spinner, so modern flour mills have dislocated 

|||n primitive social economy based on local barter 

r I he grain raised in the wheat-growing districts 

rthern China. In 1924 there were 160 modern 

HiIIIm with a daily capacity of approximately 13,500,- 

jlllO pounds of flour. A peculiar result of the open- 

■ 1 1 the country to world commerce, and particu- 

ImiIv effecting these mills, is that numbers of them 

i different times have been forced to close down 

^winiHe of the competition of imported flour. Altho 

labor costs of the Chinese product are very 

H'li less than of the foreign, poor transportation 

I'Miiies made the expense of getting the grain 

ftnni the wheat-growing sections of the country 

Ifihlhltive. A similar situation existed after the 

i nl ion in Russia, and gave rise to much unwar- 

<i criticism of the Soviet Government for its 

Ijii ii I ii lion of wheat when parts of the nation were 

i lug from an acute shortage. 

Growing Electrical Industry. 

Hir accelerated speed with which an unde- 

i <l country goes thru the process of industrial- 

ttlnii at the present epoch is reflected in the fact 

1 1 lie most modern inventions and improvements 

) Into immediate use. So in China we see a 



rapidly increasing growth of electric lighting plan 
in the cities. Today it is estimated there are 40j 
electric power and lighting plants. According 1 
Kenneth H. Dame, of the Far Eastern Division, 
S. Department of Commerce, there are few town 
of any importance that do not have a lighting plant! 
In their wake an entire electrical industry is springs 
ing up originating with the manufacture of lighti 
bulbs. In 1918 there were 136 such enterprises. 

Crowing Shipbuilding Industry. 

Shipbuilding is becoming an important Chinesffl 
industry. It received its start from the tremendous 
demand during the latter part of the Worlds Wari] 
The United States government even placed a conf 
tract for the construction in China of four ships 
10,000 tons each during that period. The principal 
ports,— Hongkong, Shanghai, Canton, Dairen, — arj 
engaged in this industry. In 1924 there were 51 
large companies, mostly foreign-controlled, in thffl 
business, according to Dame. He states that thesJ 
firms have been turning out large ocean steamships 
not only for use at home but also in foreign counl 

Bean-Oil Factories. 

Bean oil has long been used in China as a sub! 
stitute for butter and animal fats, and bean cakj 
as a food for livestock. Only in comparative!, 
recent years has the great demand for these pro 
ducts abroad, especially in Japan, developed an 
important export trade. 

The modern industry is largely under JapanesJ 
control at Dairen. In the old days of domestic usd 
there were thousands of bean-oil mills worked b» 
hand, or by the patient donkey, all over China. WitM 



the development of a large volume of export trade 
these primitive mills have proved utterly inadequate 
iimI modern factories, equipped with up-to-date 
machinery, have taken their place. In 1922 there 
w.-re 56 of these in Manchuria alone. The total 
lliruout China now is probably several times that 
n umber. 

Changing Character of Imports. 

The changing character of Chinese imports 
Hi row an interesting light on their growing indus- 
tries. For a long period after the opening of the 
l ountry to foreign trade the imports were exclusive- 
ly of manufactured goods for personal use. A de- 
mand then arose for raw materials already partly 
prepared for their ultimate purpose, such as cotton 
yarn, leather, steel plates, etc., to be turned into 
Mnished products in Chinese factories. Now there 

iu increasing importation of machinery and ma- 
chine parts for installation in plants in China that 
l "inpete on the world market. In 1913, for example, 
there was but $5,136,000 worth of such imports. 
in 1922 these had reached the sum of $40,512,000. 
i.' ports to the United States Department of Com- 
merce stated that "the year 1921 showed a pheno- 
menal increase in the values of machinery of all 
NInds imported into China and the year 1922 also 

istered increased values in practically every line 
1)1 machinery necessary for the industrial develop- 
ment of the country." 

Contrast with Steel Industry. 

In decided contrast to the modernization of the 

OolLon manufactures is the condition of the coal 

I iron industries, which, as we have already 

in 'I rd, are still in a most backward condition. With 



vast supplies of both, the nation's production is in-l 
significant in either. Yet it is the possession and) 
exploitation of these resources which have made 
possible the great empires of today. The United 1 
States and Great Britain, Germany before the] 
World-War and France after, were in this fortunate; 
situation. Japan, with totally inadequate reserves, 
was early compelled at any cost to secure access 
to those districts on the mainland in which thejj 
were to be found. 

Import and Export Anomaly. 

The same anomaly prevails with regard to the| 
iron industry as we found in the textile. China botl 
imports and exports iron and steel in considerable 
amounts. From 1921 to 1924 the imports averaged 
323,500 tons as compared to an average of 182,700 
tons for the last four pre-war years, an increasel 
of 77 per cent. Even tho the steel industry of China 
is at a comparatively low level, the following list 
of products given by the New International Ency-J 
clopedia (Supplement 1924) with the explanation 
that they "show no imports for 1922 due to the 
operation of Chinese steel mills supplying these 
demands" is instructive: 22,725 tons of cobbles and 
wire shorts; 5,944 tons of hoops; 8,223 tons of nail 
rods; and 8,228 tons of pig and Kentledge imports. 
So also is the fact that Chinese exports of iron are 
slowly tout surely increasing. The 1923 exports 
reached 741,314 tons, double that of 1913. Pig iron 
was exported to the amount of 224,169 tons, having 
tripled in a ten year period. 

The Gordian Knot. 

This rapidly growing industrialization of China! 
is a process fraught with tremendous possibilities 



Hot only to the people of that country themselves 
Inn, as well in its ultimate consequences to the world 
ill large. Internally, it furnishes the economic basis 
for the rise of the nationalist movement. External- 
ly, it intensifies the trade rivalries of the Great 
lV>wers and brings their conflicting interests into 
Hreater relief. 

Can the inherent contradiction between the 
Increasing ability and growing determination of the 
« 'liinese to control the industrial development of 
l heir country be reconciled with the imperative ne- 
Oessity of China as a huge reservoir of raw materials 
for the western Powers and Japan and as a vast 
market for their manufactured goods and the large- 

i .ile investment of their surplus capital? This is 
the insoluble problem which faces any conference 
..I capitalist nations on China. Decisions may be 
peached but they can be only of a temporary nature, 

Inst as the so-called "stabilization" of Europe after 
the World- War could not, in the nature of the cir- 
1 ii instances, have been permanent. 

Predominantly a Peasant Nation. 

While the industrialization of China is thus 
proceeding at a swiftly increasing rate, it must not 
bo forgotten that the country is still predominantly 
ii nation of peasant proprietors, cultivating on -a 
family basis very small holdings, many so tiny that 
mi American farmer would hardly think of utilizing 
i hem even for gardening. Yet under the skilful 
hand of the Chinese they are made to support an 
«n I ire family. 

Estimates of the peasant population run from 

Kr> to 90 per cent of the total. Taking the country 

a whole it appears that most of the farmers as 




a family unit own their own land, tlio surveys 
certain provinces <ha,ve indicated a surprisingly lar; 
proportion of tenants. Such an investigation a feifl 
years ago in northern China, covering reports frq 
240 villages in five provinces, disclosed in two fl 
them, Chekiang and Kiangsu, 67 per cent of farnuj 
tenants. In Anhwei province one-half were tenant J 
On the other hand less than 1 per cent in Shantuni 
and about 10 per cent in Chihli were thus listed^ 
The owning farmers for the most part, it is neediest 
to state, were extremely poor, from 50 to 80 pel 
cent reporting incomes under $150 yearly. The sizd 
of the average farm is indicated by the fact that! 
according to a government land survey in 1917 ovej 
one-half out of 58,000,000 holdings were under fivf 
acres. Of the entire number there were less tha; 
three million owners of tracts exceeding sixtee: 

Agricultural Exports Predominate. 

As might be expected the major portion of, 
China's exports consist of agricultural products of 
their derivatives including among these raw sill 
For some years the trade in raw silk has been in' 
creasing until in 1923 it constituted in value by fai 
the most important item of export, most of it goinj 
to the United States. Next in importance came thl 
bean products, following which were raw cottoj| 
and tea. 

Industrialization and the Farmer. 

The process of industrialization brings with il 
the competition of the world market and has there] 
fore a far reaching effect upon the agricultural 
population. Great shifts in the character of agricul^ 
tural production have taken place of recent years. 



Two generations ago China was the chief 

ce of the world's supply of tea. Today the 

• Uport of this article has actually declined. It is 

produced at a smaller cost by better methods on 

; tin-drenched slopes of Assam and Ceylon on 

plantations expertly conducted. In the south- 

i ii provinces many farmers have had to quit grow- 

hir, sugar cane due to the cheapness of the imported 

nj'.'ir and its better grade. The acreage of rice, the 

|)g lc food of most Chinese, tho it constitutes one 

■ r the main imports, and of cotton, the principal 

Ic of China, which is also imported in large 

mounts, have both been cut down in favor of to- 
o, the use of which was introduced into China 
*\ il Ii in the last century and is now universally 
ii inked. 

Small Industry Still Dominates. 

Not only is China a peasant nation but it must 

i o be kept in mind that it is still a country of small 

Industry and handicrafts. The enormous develop- 

|||i ut of modern manufactures has as yet effected 

[hi mass of the Chinese only in an indirect way. 

i in the most important industry, that of cotton 

iniinufacturing, while the primitive spinning wheel 

it i . been superseded by the factory, the hand loom 

lliil only persists but has come to play an important 

i 'ii i In the weaving of cloth from the machine-made 

mis. As the economic survey by the American 

Hunkers Association states: "Chinese business is 

^ii In the main a family affair. To the visitor to 

Ulilna it appears to be a country of small shops. 

. Domestic household economy still predomi- 





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B. Labor Conditions. 
Conditions in the factory districts of China are 
incredibly bad. Those of Shanghai are typical 
and can be reproduced in any of the Treaty Ports. 
This city, situated at the mouth of the Yangtse 
Kiang, is already one of the greatest shipping een- 
ters in the world. It has ready access to a larger 
population than probably any other port. With the 
expansion of overseas commerce and the rapid 
r.rowth of industry in this part of China it has 
income the most important commercial and manu- 
i.irturing city in the Far East. 

It is a city of social extremes. On the one side 
there is amazing wealth with all the ostentatious 
display which goes with it; on the other is the most 
■ I. 'grading and extensive poverty imaginable. It 
has the largest bank building in the Orient but it 
has also the longest saloon bar and the worst slums 
In the world. It is a typical product of what foreign 
exploitation with no restraints of any kind upon it 
lias been able to accomplish in the subjection of an 
ii lien race. 

As a result of long-continued agitation on the 
ubject of child-labor conditions in the factories, 
the Municipal Council of Shanghai in 1923 ap- 
pointed a committee to investigate. The chairman 
us a British lawyer from Hongkong and half 
of its members were representatives of the local 


This committee conducted an extensive investi- 
1 1 ion and finally presented its findings and recom- 
mendations at last April's meeting of the Council 
i I!) 24). So little interest was manifested in the 
rate of the child workers that enough members to 




constitute a quorum were lacking even tho tin 
meeting had been especially called to act upon thol 
report and a systematic agitation had been carrieiT 
on to secure a large attendance. The local cap! 
talists were interested, like their American brothm 
in our southern states, in children only as instru- 
ments for the production of profits. 

Child Labor in Shanghai. % 

We present below a summary of this report,, 
together with confirmation of its findings and much 
additional matter on the subject not only of child- 
labor but of labor conditions in general thruoul 
China. This is taken from such authorities an 
A. Percival Finch, New York Times correspondent 
in China and a member of the staff of the Sunday 
Times of Shanghai; Henry T. Hodgkins, Secretary 
of the National Christian Council of China; Sher-1 
wood Eddy, International Secretary of the Younffl 
Mens Christian Association, and many others. Nonffl 
of these observers are radicals or even associated] 
with the labor movement, so they cannot well bol 
charged with a bias in favor of the workers. It 1*1 
significant that not a single apologist for the capffl 
talist system and the rule of imperialism in the FaM 
East has dared to contradict these statements. 

This portion of our general subject will be deal! 
with at length for it reveals conditions of labor so 
horrible, wages so low, and hours of work so lonjH 
that their perpetuation means a rapidly growing 
menace to the workers of all the rest of the world, 
even the most badly treated in the countries of tho 
West. It would indeed be hard to imagine laboi 
conditions worse than those now prevalent in China, 



Six Year Old Child Slaves. 

The Shanghai investigating committee found 

ii 274 factories of that city's industrial district 

m were over 22,000 children at work under the . 
HP of twelve. The hours were generally 12 a day, 

i ii A. M. to 6 P. M., or vice versa. The Oom- 

|| ion found during both day and night "very 

y children at work who could not have been 

.than six years of age." The Child-labor Com- 

ioner of the International Settlement of the 
II reports that "children are often employed at the 

of five years." The Committee declares that 

i u< -rally speaking, the child begins to work in 

In mill and factory as soon as it is of any economic 

.in. to the employer." Finch, from his years of 

■iM'rrvation at close hand as an experienced news- 

. man, reaches a similar conclusion: "Now 

lii'iv are a large number of people born in the 

I ik lory district who know they are intended for the 

or factory when they reach a suitable age— 
Illicit is in many cases — about six years." 

Mmhors Work with Babies Strapped to Their Backs. 

Miss Agatha Harrison, who in 1923 made an 

. iiHlve study of labor conditions in Shanghai, is 

« I noted by Hodgkins in his book "China in the 

(family of Nations" (1924): "It is not easy to 

puniilize on the age when children begin to work. 

on of them are brot into the factories as babies 

V I heir mothers. In some of the factories visited, 

1 1 were working with babies strapped on their 

i . (In one case a woman had her baby strap- 

i In front in order to feed it and at the same 

Hum work with both hands and a foot). Brot up 

| I he factory atmosphere, children-fearn to do odd 



jobs at a very early age; and at the ages of six, 
seven, and eight years are to be seen on regulm 
work." In talking over the matter of child lalxn 
with the employers she quotes one as remarking! 
"If we stop employing children, our mills won hi 
have to close down." Another called her attention 
to the fact that "Children's hands are peculiarly 
-fitted for this work." The excuses are the sanl 
as those offered by >our own child labor employers 
in the textile mills of our own southern states. 
Grinding Children Into Profits. 

The child labor commissioner reported to till 
British parliament last year (1925) that 14 pop 
cent of the entire number of workers employed il 
Shanghai were under the age of twelve. The city 
has undergone so great a development in receffl 
years that one authority estimates one-third of il 
population of over two millions is engaged in indu«« 
tries of one kind or another. One-seventh of tit l" 
one-third would give approximately 90,000 boys ami 
girls under twelve working in the factories ami 
other establishments in this city alone. The conk 
missioner states that the overwhelming majority^ 
80 per cent, of the children are little girls. Out o( 
the 22,000 in the particular mills investigated by tin 
commission about 17,000 were of that sex. Jul! 
as the motherhood of the working class of England 
was sacrificed to the merciless greed of the earljj 
factory owners, so to a larger degree and even mm. 

,*. ruthlessly are the future mothers of China being 
laid on the altar of Mammon for the enrichment 
of the banking houses of the world and the profit!] 

, ' of thousands of investors who know little and carl 
less about the circumstances under which tholfl 
dividends are earned. 



Grist for Capitalist Mills. 
The commission states that "in many mills 
. niKlitions during the night shifts are, according to 
lern ideas, most unusual. Rows of baskets' 
laining babies and children, sleeping or awake 
MM I he case may be, lie placed between rapidly mov- 
ing and noisy machinery. Young children, who are 
upposed to be working, but who have been over- 

ie by fatigue, or who have taken advantage of 

absence of adequate supervision, lie asleep in 
ry corner, some in the open, others hidden m 
l.nnWets under a covering of raw cotton." A sug- 
jtwl ion that the commission saw only a part of the 
I ■ i , i ,-, 1 situation follows : "The commission noticed 
| hill on its advent a warning whistle was given and 
my of the children were awakened by their lm- 
iliate neighbors and hurried back to their ma- 
in, ms." i '' '^a 
Of the "very young children" (most of whom 
Hi<<< girls) working in the silk mills, the commission 
i narked: "In the main they present a pitiable 
III Their physical condition is poor, and their 
.:; are devoid of any expression of happiness or 
il being. They appear to be miserable, both physi- 
ii v and mentally." 

Covering up Their Crimes. 

\ characteristic attempt to justify the employ- 

ul of little girls in the silk mills occurs in the After a previous admission that "the work 

tHinld be done by adults" it is asserted that "there 

» nmially, however, a shortage of labor." A few 

i graphs before, the point-blank declaration had 

Umi made: "There appears to be no shortage in 

||t.< nupply of labor and the commission is satisfied 



that there would be no shortage should young chill 
dren be debarred from employment in the Shanghai 
district." Such contradictions show the impossl 
bility of unprejudiced reports from capitalist investl. 
gations of matters involving the right of exploiting 
the workers. Not a single representative of labor 
sat on this committee. 

No End to Their Toil. 

As if twelve hours a day or night were not 
enough, "the children frequently have to stand tho 
whole time they are at work," the report states, 
They do not get Sundays off. "Apart from inter 
ruptions and the customary holidays at Chinese! 
New Years (two or three days—editor's note) work 
is continuous." Meals must nearly always be eaten 
within the factory. Often no definite time is set 
apart for these. In some places children are given 
paper tickets good for his meals. If lost, they are 
fined ten cents, thus losing their food allowance 
for two days. 

Indefensible, But Nothing Done. 

The report declared "the commission is satis-] 
fied that the conditions under which these children 
are employed are indefensible." Yet a quorum of! 
the few thousand foreign tax-payers who control! 
Shanghai, could not be obtained for a special meet-' 
, ing to remedy such a condition of affairs! A partial! 
clue to their failure to act is found in a few lines 
of the report which states that the employment of 
older workers would require slight changes in the 
machinery used and a consequent expense to the 
employers. So the latter prefer to keep their little 
child slaves and grind their small bodies into blood- 
stained profits. 





Mil! workers like these little ones 
are employed by the thousands for a 
wage of a few cents a day. They 
work for twelve hours, either during 
the day or the night, and often have 
to stand the full time. 



Child Contract Labor System. 
Readers familiar with the origin of our present 
economic system will recall that in its early days 
English contractors used to get children from the 
poorhouses to work in the factories. The poor law 
authorities were thus relieved of the burden of 
caring for them and the taxpayers of that day were 
freed from contributions for their support, ine 
factory owner got his labor for almost nothing, with 
no legislation to hinder his manner of exploitation. 
The contractor got a good profit for supplying the 
labor The children alone were the immediate suf- 
ferers and their miseries form one of the most 
tragic chapters in all England's bloody history. That 
was the time when children of five were worked 
for sixteen hours a day. Irons were riveted to their 
ankles if they proved refractory, while their bodies 
were disposed of in the most ghoulish manner if 
they succumbed to the merciless conditions which 

^^Precisely such a contract labor system exists 
today in China. Contractors go out into the coun- 
try districts, hire the children of poor parents bring 
them into the industrial centers, and practically 
sell them to the mill owners. The parents get $2 
a month and the contractor $4, a profit of 100 per 
cent on his investment. The commission declares 
that "these children are most miserably housed and 
fed They receive practically no money and their 
conditions of life are virtually those of slavery. 

"Radical" Recommendations. 

What were the "radical" recommendations oM 

the commission which so aroused the antagonism 1 

of the Shanghai taxpayers? They were the folic 



iug: immediate prohibition of the employment of 
rhildren under ten, this restriction to extend to 
those up to twelve at the end of four more years; 
u 12-hour day for those under 14, and one day off 
In at least every two weeks for all child workers. 

As Bad in North China. 

While th& information we have just been giving 
• overs the Shanghai district, it is typical of indus- 
I rial sections all over the country. Sherwood Eddy, 
International secretary of the Young Mens Christian 
Association, who in 1923 carefully investigated the 
labor situation in China, makes reports such as the^ 
following on what he saw: 

Referring to a large match factory in north 
China, "said to be the best of its kind in the city," 
In; writes: "We found there 1100 employees, for 
i Iki most part boys from nine to fifteen years of 
age, working from 4 A. M. to 8:30 P. M., with a 
few minutes of intermission at noon. They work 
OH an average fifteen hours a day, seven days a 
w(>ek, with no Sunday of rest. The boys receive 
horn six to ten cents, and the men about twenty- 
iivc, cents a day. The poisonous fumes of phos- 
phorous and sulphur and the dust from the other 
i heinicals burned our lungs even in the short half- 
hour we were in the factory. Eighty men and boy? 
In this plant have to visit the hospital each day for 
treatment. Many suffer from 'phossy jaw', where 
i ho bones of the face decay on account of the cheap 
r.i.ide of phosphorous. This could be avoided if 
nomewhat more expensive chemicals were used, but 
It would cut down the profits, which are said to be 
vnry high." 



Those Bloodstained Rugs. 

He tells about his next visit to "a Chinese rug 
factory making the most beautiful 'Persian' rugs 
for use in the homes of millionaires in America and 
Europe. . . . Twelve hundred boys and young 
men, from nine to twenty-five years of age, are here 
employed. The foremen receive $8, while other 
men average $4.50 a month and their food. Men 
and boys are working on an average of sixteen 
hours a day, from 5:30 A. M. to 10 P. M. 

"The majority of the boys serve as apprentices 
for a period of three years and receive no pay what- 
ever, but only get their food. This 'apprenticeship 
is only a blind alley. After the boys serve for three 
years there is no future for them in the business. 
When they are graduated from their apprenticeship, 
they can become ricksha coolies and earn on an 
average fifteen cents a day. The fifty thousand 
ricksha pullers in Peking average less than this 
amount. After five years of this work they are usual- 
ly broken in health and are then useless." 

18-hour Day for Boys. 

The fourth factory he visited was a "Chinese 
weaving establishment making cloth upon primitive 
looms." It must be remembered that while work- 
ing conditions in the old hand industry of China 
have always been hard, the competition of the 
modern mills has made it very much worse, throw- 
ing many of those who formerly made at least a 
bare living entirely out of a job. Eddy states thai 
at the time of his visit (1923) there were "15,000 
boys in the city working on these looms. In nor- 
mal times there are 25,000 employed, but many are 
out of work now. The wages paid to the men aver- 



ttge $4.50 a month, or about 15 cents a day. The 
workers average about eighteen hours a day, from 
!> A. M. to 11 P. M., working seven days a week. The 
majority of the boys are apprentices who receive 
no wage whatever, but only their food." 

Work on Learning to Walk. 

Of one of the larger silk mills in the north, 
tOddy writes: "We next visited a silk filature where 
ii thousand employees toil from 5:30 A. M. until 
After 6 P. M. Here I found little girls seven years 
Old earning 20 cents a day. Here are mothers 
working with nursing babies lying on the floor be- 

Ide them or strapped to their backs. 

"The children learn to work as soon as they 

lire able to walk. Here they toil in the hot steam 

i Hi their hands deftly manipulating the cocoons 

III l lie boiling hot water. The employers say the 

l die hands of little children are best adapted to 
IhlH rapid work. The eyesight of many of the chil- 

1 1 in had been effected from the hot water and 

team in their eyes. With no medical care for their 
i'.vph, these children must give up work and face 
hunger or go on and be satisfied with a smaller 

Starvation Wages. 

As might be expected these terrible labor con- 

Inns mean also incredibly low wages for both 

lllldren and adults. Wages, moreover, are paid 

"niv lor days actually worked. The Shanghai com- 

li'o reported the average earnings of a young 

iiii«l as not over 20 silver cents a day (about ten 

ni . in our currency). Some of the little girls in 

ilk mills made twenty-five silver cents for their 

toil. Do not forget that these wages are for 



a day of at least twelve hours, as likely as not 
stretching thru the long night, with no Sundays off 
or other holidays save a few days at Chinese New 
Years, and frequently with the child standing thru- 
out the entire period of its labor. 

The Apprenticeship System. 

Child labor is the very basis of the apprentice- 
ship system prevalent in China, both in the old 
handicraft and the semi-modern workshop, and to 
a lesser extent in general in the modern factories. 
Apprentices get their food, clothing, shelter, and 
generally a small sum, either at the end of their 
term or of each year. This system as practised in 
several of the large cotton mills of the North is 
particularly reprehensible. Thousands of boys from 
eight to eleven years old are taken in as apprentices, 
to serve for three years. They work in twelve hour 
shifts, with no weekly days of rest. At the con- 
clusion of their term they are dismissed, to make 
way for a new batch. 

In general, apprentices are taken at the earliest 

age at which they can begin to learn and at the 

same time be of some value to the employer. Work 

in the laundries is hard, the hours being usually 

from dawn to dusk and often late into the night, j 

Half an hour is allowed for the mid-day meal. The 

boys frequently eat and sleep in the same room. 

For their three year term they receive from $60 to 

$70. In the building trades the boys are usually 

hired when eleven years of age. Most of them livo 

with a sub-contractor thru whom they are appren 

ticed. They are badly fed even while working so 

their conditions may be imagined when trade is 

restrictions would not have any effect in the treaty 




ports. On the other hand, Chinese employers, if the 
restrictions were at all severe,- — and they would 
have to be to do any good, — would merely move 
I heir establishments into a foreign concession and 
I hey would be free to exploit their labor to their 
heart's content. Strangely enough, the home laws 
Of the foreign nationals apply to govern their con- 
duct in China, except those involving the rights of 
workers. Labor, it universally appears, has only 
I hose rights which it is able to enforce thru its 
organized power. 

Adult Labor Conditions. 

We have dwelt at length *on the conditions 
which oppress the child workers because the chil- 
llack. The term is for three to five years. 

Chinese Law Unavailing. 

So far as the children employed in the huge 
factories in the foreign concessions are concerned, 
and there are tens of thousands of them,— the 
I 'hinese have no way of protecting them by legisla- 
tion. The right of extra-territoriality gives inimu- 
tilty from Chinese law to all employers so far as 
i heir establishments in these sections are concerned, 
Whether they are Chinese or foreigners. Therefore 
ii Is difficult for the Chinese to protect themselves 
hi all against such child labor exploitation. Their 
i. ririctions would not have any effect in the treaty 
port. On the other hand, Chinese employers, if the 
I'OHtrictions were at all severe, — and they would 
have to be to do any good,— would merely move 
II loir establishments into a foreign concession and 
I hey would be free to exploit their labor to their 
heart's content. Strangely enough, the home laws 
of live foreign nationals apply to govern their con- 



duct in China, except those involving the rights of 
workers. Labor, it universally appears, has only 
those rights which it is aMe to enforce thru its 
organized power. 

Adult Labor Conditions. 

We have dwelt at length on the conditions 
which oppress the child workers because the chil- 
dren of a race represent its hope for the future. 
Hardly less terrible are the conditions under which 
-the parents and adult workers in general labor. 

According to the report of the Chinese ministry 
of agriculture and commerce for 1923, in the 29 
principal industries for which statistics were re- 
turned, wages ranged from a minimum of V/ 2 to 
7i/ 2 cents a day for the men to a maximum of 20 
to 50 cents. Women's wages varied from a mini- 
mum of 1 to 17 cents and a maximum of 2% to 42 
cents per day (reduced to U. S. currency). Working 
hours were generally 12 to 14, tho laborers in the 
cotton mills at Shanghai put in from 11 to 20 hours, 
depending on business conditions. M. T. Tchou, 
a Chinese authority quoted by Partington, sets the 
average monthly wages in the cotton industry at 
$9 for unskilled and $19 for skilled males, and $7.50 
and $12, respectively, for females. 

In many factories, such as silk filatures, work 
begins generally at five in the morning and lasts, 
until six or seven in the evening, or even later. 
Laborers in the steel mills work usually a twelve- 
hour day. Every ten days when shift is changed 
they put in 18 hours at a stretch. Machinery work- 
ers have from 10 to 14 hours. The beautiful pongee 
silks so much admired by our women, are manu- 
factured at Chefoo. The 40 factories there employ 


26,000 boys and young men at an average wage of 
1 2 cents a day on a 13 hour-day basis. 

Unskilled Workers Treated Worst. 

Among the adults the coolies are treated the 
worst. They get from $6 to $9 a month for working 
from sunup to late at night in the hardest kind of 
drudgery or at farm labor. They have no days off. 
In common with others of the most poorly paid they 
are compelled to sleep in shifts, paying a small sum 
for the privilege of the use of a bed for a few hours 
a night, to give place to the next user. This most 
Insanitary and unhealthful practice used to be com- 
mon in many of our own steel centers. To the 
grownups, as to the children, time off for meals 
la practically an unknown luxury. They munch 
I heir cold lunch while they are working. As stated 
previously about the children, the adults, too, get 
paid only for actual working time, and receive no 
weekly day of rest. 

Woman Labor Prevalent. 

Owing to the tens of millions who have always 
been close to the border line of starvation in China 
and as a result of the dislocation of the native eco- 
nomy caused by the introduction of large-scale 
methods of capitalist production, it has hitherto 
been easy to get an unlimited number of applicants 
for work in the new industries. This condition 
made labor organization not only well-nigh impos- 
sible but it also enabled the employers to pay wages 
below the standard of a living which would re- 
produce a new mass of physically capable workers. 
The exhausted laborers were merely thrown aside 
like so much wornout machinery and new supplies 



drawn from the apparently inexhaustible masses.] 
With wages generally below a living standard, the; 
other members of the family were swiftly drawn 
into the industrial vortex. So we .find an enormous 
number of women workers in China and discover 
that their total, like that of the children, is fast' 
increasing,— much faster proportionately than that; 
of the men. 

Women Treated Like Slaves. 

Women are found in all kinds of industries. 
They work not only long hours and on night shifts 
but also at coarse and heavy labor which brutalizes 
as well as exhausts them. Their pay is very low 
and wholly inadequate. W. T. Zung, a member ofl 
the National Committee of the Young Women's 
Christian Association of China, writes: "Thousands 
of women left their villages for the crowded indus- 
trial centers where they are gainfully employed, but 
where they live also lives of slaves. Insanitary, 
filthy slums have grown up around the factories. 
Because of their long hours of labor the women 
have no time to attend to their household duties or 
care for their children. Since there are no pro- 
visions to protect the mothers the health of the 
women workers is often impaired. This neglect is 
general thruout China." The demands of the strik- 
ing silk workers, who are mostly women and young 
girls, includes one for the reduction of hours to ten, 
exclusive of the time for meals and for feeding 
babies in arms who are taken to work by their 

No Health Provisions. 

With few exceptions factories in China make 
absolutely no provision for the health of their work- 



its. As Zung remarks: "In the modern factories 
the health and welfare of the workers are for the 
most part completely ignored. Overcrowding, bad 
ventilation, high temperatures, and insanitary con- 
il II ions are often found. Suitable seats, dining 
I'Ooms, first aid, rest rooms, or sanitary washrooms 
it ic unheard of luxuries. Not infrequently accidents 
are caused by the lack of protective equipment on 

Searched on Quitting. No Definite Pay-Days. 

Mr. Liang states that factory workers are 
lOarched daily at the end of their working hours. 
The process sometimes takes hours, as thousands 
ire employed in the larger establishments. For the 
I line thus taken the employees, however, receive 
i h tilling. He furthermore declares that there are 
no definite pay-days. Where less than 15 days are 
flue, a discount of 20. per cent is made by the 
employer. Should a worker not show up for a day 
nl the factory he must put in two days for the boss 
1'ivc of charge. Employers have even gone so far 
mi to prohibit their employees from wearing heavy 
I lol lung in the winter because, they allege, it makes 
Hi mn clumsy and thus interferes with their ef- 
Rolency. It should be noted that many of the fac- 
luries are unheated even in the coldest weather. 

Phosphorous Poisoning. 

It took a tremendous agitation of many years 
before the manufacture of matches tipped with the 
Ordinary white or yellow phosphorous could be stop- 
ped in the United States. Phosphorus in this form 
i i deadly poison. Its free dissemination had led 
in many deaths and numerous suicides and wilful 



murders. Workers exposed to its vapors are subject! 
to a peculiarly distressing disease which attackB 
the jaw and ultimately produces necrosis of tho 
jaw-hone, popularly known as "phossy-jaw." AM 
early as the middle of the last century a Swedish 
manufacturer was using for his matches a modified 
form of this substance, known as red or amorphous 
phosphorus. In itself this is perfectly innocuous 
and no evil effects arise from freely working tho 
compositions of which it forms an ingredient. Be- 
sides, the matches thus prepared will strike only 
on prepared surfaces, thus lessening the fire risk. 

Women and Children Most Exposed. 

Today that same life-destroying form of phos- 
phorus is used £y the 51 large match companies 
with plants in China. They have a capitalization 
of over $6,000,000 and an annual turnover of more 
than $12,000,000. The factories where these matches 
are made are generally dirty, ill-ventilated, and 
dark. Many of the workers suffer from lung dis- 
eases thru the inhalation of the poisonous fumes 
from the phosphorus and sulphur, and many others 
get the dread "phossy-jaw." Most of those subject 
to these dangers are women and children. The 
work-day is 13 hours, including an interval at noon 
for lunch. Women get from 20 to 50 coppers a day 
(less than half in our money) and boys and men 
from $3 to $10 monthly. There are few holidays. 
In one case investigated it was found that a dormi- 
tory near the factory housed 300 indentured child 
slaves whose daily toil lasted from 3:30 in the morn- 
ing to 7:30 at night, every day in the week. Most 
of the children were thrown out upon the casual 
labor market at the end of their term of three and 
one-half years. 



Precautions Would Cost Money. 

The child labor commission at Shanghai re- 
ported that in the match factories of that city much 
Of the box-making is a home industry. A mother 
mid one child is able to finish between 2,000 and 
1,000 parts of a box a day. They receive for this 
D copper cents a thousand, or about 12 cents a day 
In our currency. No precautions are taken against 
fire tho this is a special hazard in the industry. "In 
one large factory visited," the commission stated, 
"children not more than five years of age were seen 
to he working with almost incredible rapidity. Many 
babies and infants who could scarcely stand, slept 
Or played on the floor while their mothers worked." 
These conditions, Partington points out in his arti- 
cle, could all be avoided if somewhat more expensive 
i '<|iiipment were used. But, as he adds in reporting 
l hose facts, "it would cut down the profits." Beside 
khe sacred right of coining the bodies of women and 
little children into gold, what does anything else 
matter, especially the life of boys and girls and 

I heir poverty-stricken parents in far-off China? 

Huge Profits in the Business. 

Paul Hutchinson, in his recent book "China's 
Ileal Revolution" (1924), reprints the annual finan- 
cial statement of one of the big textile factories as 

II appeared in a trade journal in China. It reads 
mi follows: 

"The profits of the (name omitted) factory 
HKiuin surpass $1,000,000. To those who bestow 
I hot on the progress of textile industries in China, 
I he following particulars concerning this concern 
limy be of interest. The company was started in 



1904 and had a paid-up capital of $600,000 in 1916. 
. . For the past two years it has been running 
night and day without intermission. . . . The 
working hours are from 5:30 A. M. to 5:30 P. M., 
and from 5:30 P. M. to 5:30 A. M. respectively. Noi 
meals are supplied by the factory. Most of the cot- 
ton is produced locally. . . • It will be seen that 
the company is in an exceptionally favorable posi- 
tion. With the raw products at its door, an abundant 
and absurdly cheap labor supply to idraw on, and no 
vexatious factory laws to observe, it is not sur- 
prising that its annual profits should have exceeded 
its total capital on at least three occasions." 

For sheer unmitigated insolence and nerve on 
the part of the capitalist class in boasting publicly 
about its exploitation to the last drop of blood of its 
helpless child and woman slaves, this surely cannot 
be surpassed! It is no wonder that the Y. M. C. Af 
secretary at Chefoo reported that "China is a para- 
dise for the employers." Matazo Kita, president of 
the Nippon Menka Kaisha (Japan Cotton Co.), one 
of the big textile corporations of Japan, was quoted 
by the Japanese press upon his return from a tour 
of inspection of the industrial centers of China in ,j 
the fall of 1924 as declaring that "the mills in China 
are making money right and left." The tremendous 
influx of British and Japanese capital of late years 
is an eloquent testimonial to the profitableness of 
industry in China. 

Wages Vs. Cost of Living. 

It may be objected that the wage rates quoted 
really mean more in China because the standard of 
living there is so much lower. We may readily con- 
cede a great difference in living expenses without 



hi all mitigating the fact that from the Chinese 
liiuiidpoint itself the wages are far below a decent 
living standard. In the present social system where 
capital flows increasingly in disregard of national 
frontiers to the places where, other things being 
Bqual, labor cost is lowest, this furnishes the basis 
for a competition in manufactured goods which the 
Other nations can in no way meet except by bringing 
down the wages of their own working class to ap- 
proximately the same level,— that is, under capi- 

While wages in general in China have risen in 
the last quarter century they have not gone up near- 
ly as fast as the cost of living, thus indicating a 
worsening of the conditions of the working class. 
This phenomenon is common to all capitalist coun- 
tries, despite exceptions under peculiar circumstan- 
pes or for particular groups. The price index for 
hanghal, according to the Chinese Economic 
Monthly, shows an increase of 50 per cent since 
1913. In Canton during the last four years the cost 
Of rice, the chief article of food of the workers, 
increased 20 per cent; sugar, 81 per cent; bean oh, 
00 per cent; and firewood, 90 per cent. The com- 
parison over a longer period illustrates the degree 
lo which living costs have risen still better. In 
Koochow, a typical Chinese city, during the last 
thirty years the price of rice has doubled, firewood 
In three times as expensive, and vegetables on the 
average are fifteen times as much. The living ex- 
penses of a family of five in that city have grown 
In that period from $10 (silver) monthly to $30, or 
200 per cent, Professor Charles Hodges, of New 
York University, declares in a recent magazine 



Why Six Year Old Children Work. 
Partington estimates the cost of supporting a 
family of five of a skilled worker in Shanghai at 
$35.86 a month and that of an unskilled worker at 
$21.34. No allowance is made in either case for 
sickness or savings, tho why the Chinese are not 
subject to sickness or accidents would puzzle any- 
one except perhaps an English bourgeois economist. 
As the average wages are only about one-half of 
these amounts the family would starve unless its 
other members also worked. The official Labor 
Report stated that the wages of adult workers in 
that city did not exceed $15 a month while that of 
the unskilled was about $8. On the other hand, 
the report stated that the minimum cost of existence 
for two people (a childless couple) from the poorest 
section of the population amounted to $16 a month. 

As Bad in North China. 

Conditions as intolerable as these prevail in 
North China as well. Chas. G. Batchelder, for years 
acting commercial attache of the United States in 
China, states: "It is calculated that in North China 
the minimum annual cost of food and clothing for 
a family is $150, without considering rent, heat, and 
the indispensable sundries, but about 80 per cent 
of the families have less than this." 

The terrible economic pressure which drives the 
children at such a tender age into the factories 
comes, of course, from the inadequate wages of the 
father. A. Percival Finch, whom we have previously 
quoted, writes: "Children haye to start work at an 
early age in order to supplement the family budget. 
In many cases the whole family is in the factory 
because even in places like Shanghai it has been 



1 1 own that, taking the average cost of living and 
I man's average earnings, 40 per cent of the families 
would be living below the poverty line if no other 

niirce of income was discovered. These children 
must go out to work or face starvation." 

Dislocation of Food Supplies. 

The very inroads of the capitalist system, more- 
over, as against the ancient self-sufficiency of the 
ountry has been partially responsible for higher 
food costs to the Chinese. The ease of quickly 
tin ii sporting wheat and rice by railroad and modern 
ir.unship lines to Japan and Europe has resulted 
in a growing and important export of these basic 
i.Hidstuffs out of Chinese communities in which 
I hey were formerly disposed of locally, often at a 
I lino when famine conditions prevailed in China 
llMclf. A similar condition sometimes existed in 
HiiKsia under Czaristic rule when agricultural pro- 
<im lion was manipulated by speculators, as it is 
Mllll in America. 

Another instance of this same effect can be 
i Hmm in the decreased areas planted to rice. From 
III 1 5 to 1917 this area dropped from 406,000,000 
mow (a mow is equivalent to one-sixth of an acre) 
|o IS1,000,000 mow, a decline of over one-half. In 
Hit place were planted cotton and tobacco. The 
i>liiinge occurred because of the huge demand for 
IIioho products by the foreign factories. Thus under 
I (tin dislocation to the primitive social economy 
i ii Bed by the swiftly spreading capitalist system 
111) its production for the world market, the supply 
lir I he most essential Chinese food was very serious- 
ly diminished. This situation, in turn, contributed 
l»iviilly to famine conditions which drew large num- 



bers of the starving peasants into the factories atll 
upon the large plantations, to work there for ad 
wage and thus undermine the already inhuniu 
standards prevailing. 

The Peasant and Farm Laborer. 

Inasmuch as China is predominantly an ag| 
cultural country, 80 per cent of her people engar.r 
in tilling the soil, it is important to survey con 
tions among this great mass. In the fact of an ov 
whelming peasant population- — as well as in 't 
fact that it is illiterate — there is a striking similiari 
between China of today and the Russia of the Czai 
Tho most of the farms are very small, the^ 
is a very large number of tenant farmers. Accor 
ing to a report to the United States Department 
Commerce, a recent survey made by Chinese al 
dents under direction of American instructors, 
conditions in 240 farming communities in five 
the northern provinces showed that half or ov 
half of the farmers in Chekiang, Kiangsu, and A] 
hwei were tenants. Over one-half of those in 
five provinces received an income of less than $3 
a year, the proportion rising to over 80 per cent 
the northernmost. This sum was taken as the ml 
imum on which a family of five could live in su 
agricultural districts. It included no allowance j( 
fuel — an absolute necessity, — nor light; and allow 
of no meat, eggs, or even fish. "The only way 
which it is possible for the farmer to exist at all 
states the report, "is by a drastic cut in food co 
sumption. This is what actually takes place, f 
during the winter months he may be said practice 
to hibernate, saving himself from all unnecessq 
exertion from December to March, and emergU 


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in the spring to work again in the fields in such aj 
emaciated condition as to render him unfit for ad 
real exertion for several weeks. . . . The Cfl 
nese live so near the margin of existence that evo 
in good years it is necessary for them to eat el 
bark and gather willow leaves to eke out the wint.# 

Predicts A Farmers' Revolt. 
Statistics of wage conditions among the ml 
lions of Chinese farm laborers are very scarce 
investigation by the governor of Kiangsu provin 
several years ago showed that the wages paid t 
agricultural workers in that part of the cound 
averaged from 17 to 19 cents a day. Ta Chen, fl 
viewing the farming situation in China, (Unit ml 
States Monthly Labor Review) declares that "evi 
the small farmer who supplements by outside wofl 
the income from his farming is not making enj 
meet" chiefly, he explains, because of the high I 
terest rates and the relatively high cost of CM 
production due to the small acreage of the farm 
Rural conditions, indeed, are so bad that he predidi 
unless they are "immediately improved," there will 
"soon be signs of an agricultural revolt in China, 1 
An indication of the revolutionary awakening of thj 
Chinese peasants is to be found in the decision I 
their national congress, June 17, 1925, to afflllati 
with the Peasants International, with headquarlr. 

at Moscow. 

The changes effected by the spread of ca|i 
talism in China have by no means been conflni 
to the industrial workers or those of the city, 
has brot to the peasants the all-pervading compotl 
tion of the world market, with incalculable inlllH 
ences reaching out to the most remote districts. 




The industrialization of any country inevitably 

i gs with it the organization of its working class. 

\m capitalism develops, there is formed on the one 
bl>nd a proletariat whose sole means of support is 
i li sale of their labor power and who comprise a 
innlinually increasing proportion of the population, 
mhI on the other hand a small group of capitalists 
who own and control the industries in which the 
I inkers are employed. This process has been going 
"ii in China. 

The first national congress of the Chinese 
orkers was that held in Canton, May 1 to 6, 1922. 
Ill M i is conference there were 160 delegates present, 
^presenting 200 unions with a total membership 
|| over 300,000. Resolutions were passed including 
li 1 1 i.-uids for the 8-hour day, mutual aid for strikers, 
it |M'i-inanent national organization, and a policy of 
[Industrial unionism. The Chinese National Feder 

ii of Labor was thus formed. In May, 1925, 

Dim Hccond Chinese National Labor Congress was 
llnlil in Canton, attended by 285 delegates represent- 
|hi>, -150,000 organized workers. At this meeting 
I was unanimously decided to affiliate with the Red 
plltu'iiational of Labor Unions (R. I. L. U.), the 
Juh <l quarters of which are at Moscow, Russia. 

Trior to that time (1922) the labor movement 
lnvHoped thru a series of spontaneous strikes which 
in. i no serious opposition. The rising native bour- 
|imlnle aided the strikers, for their struggle, then 




directed against foreign-owned factory owners, 
meant the diversion of business to the Chinese 
merchants and manufacturers. However, towards 
the end of 1922 when labor conflicts arose in Chi- 
nese establishments also, a decided change in atti- 
tude occurred among the native bourgeoisie. This 
hostile tendency expressed itself in the government'! 
use of troops as well as police to break the striki 
of the Tan-Shang miners in October, 1922. Thii 
first interference of the political state with both 
soldiers and police in an industrials struggle of tho 
Chinese workers resulted in defeat for the latter, | 
and was a telling object lesson to the new labor 
movement of the country. 

The Seamen's Strike. 
A spectacular demonstration of the capacity of 
the Chinese workers to conduct a struggle against 
the most powerful modern corporations and a strik- 
ing display of the solidarity possible among the most 
oppressed and poorest workers was furnished by 
the Hongkong seamen's strike of 1922. At that time 
the seamen were organized not on the lines of a 
class union but of the characteristic Chinese guild. 
"The wonderful organization displayed in tho 
strike," states Finch, "came as a shock to the em- 
ployers along the China coast, who realized thai, 
henceforth industrial relations would have to be 
placed on a different footing." The 60-000 strikers 
succeeded in paralyzing the coastal trade of thffl 
country and in crippling to a large extent European 
and Pacific commerce generally, as well as in effec- 
tually tying up the port itself. The strike was gen 
erally backed by all sections of the Chinese, even 
the merchants, taking the form of a struggle againsl 
foreign oppression. 


In accordance with the usual practice of the 
i ml ice authorities in Hongkong, the most extreme 

;isures were taken to break the strike. Orders 

ore given that the Chinese strikers should not be 
i Mowed to leave the British territory, tho most of 
IJiem had their homes in the native city. A large 
number peacefully leaving the British section were 
II red upon by an English armed guard, resulting in 
lliany casualties. In spite of these terroristic tal- 
lies by the employers, the seamen won after a six 
nirKs struggle. They received a wage increase of 
from 15 to 30 per cent, retroactive to January 1, 
11)22, the date when the strike began, and the recog- 
nition of their union. In addition, the shipowners 
were compelled to give the strikers half pay for the 
I line they were out until the day set for the general 
niHiimption of work. Where jobs were not available 
Tiir seamen ready to return half pay was to be con- 
l limed until positions were secured, for a period 
mil. exceeding five and one-half months from the 
jjoneral resumption of work. In this way the em- 
ployers were penalized for having refused to settle 
With the union at the beginning of the trouble. The 
IiihI. two provisions of the contract were not carried 
mil. by the companies, which were backed in this 
repudiation by their governments. Robert Hotun, a 
lending compradore (wholesale dealer) and banker 
Of Hongkong,, who is the Chinese agent of British 
imperialism in that section, had promised these 
concessions in the names of the foreign shipping 
companies for which he had been active in the ne- 
gotiations. He delayed payments of the promised 
minis and finally refused to carry on the provisions 
nl all, thus revealing the treacherous character of 
1 1 1 1 Big Business elements among the Chinese. 



The Fighting Railwaymen. 

Another illustration of the resourcefulness of 
the Chinese workers is found in the efforts to union 
ize the employees of the Peking-Hankow railway ill 
1923. General Wu Pei Fu, then helng suported li.v 
English and American interests in his attempt to 
become military dictator in China, had a numlx fl 
of the strikers shot and their leaders executed. [Q 
a conference later at his headquarters he had fivo 
more of those prominent in the agitation murdered 
in cold blood. Despite these harsh measures thfl 
work of unionization went right on in secret. To4 
day there is a strong organization on that railroad, 

The year previous, 1922, at a railwaymen': 
conference in Peking in October, a committee for 
the creation of a National Federation had been si 
lected. Plans had already been made for conveninr, 
a Pan-Chinese congress when the bloody repressivo 
measures of Wu Pei Fu blocked the work. Illegal 
unions were secretly organized on the principal 
lines. The delayed convention was finally held at 
Peking on February 7, 1924,— 4he anniversary of 
the massacres of the railroad workers. 

Forty delegates attended, representing eleven 
railroads. The result of the deliberations was the 
founding of the National Union of Railwaymen. Th| 
primary object of the organization is to promote 
a common solidarity among all workers on the rail- 
roads, in place of the tendency to build up unionH 
based on the craft lines familiar to the workers <>i 
this country. The convention elected an Executive 
Committee of eleven and a Presidium of four mem- 
bers to conduct the business. 

The manifesto issued by the union thus for* 
mulated its principal aims : 



1. Improvement of living and general condi- 
i in us of the workers, as well as the protection of 
Iheir interests throughout the country. 

2. Solidarity and co-operation among the 
workers, abolition of all prejudiced divisions and 
■ I i: tensions among workers. 

3. Raising of the general level of class con- 
lOlousness, and arousing the class consciousness of 
I ho workers. 

4. Aid in the organization of trade unions on 
nil the railway lines, in establishing contact among 
jjiem, as well as with the other trade unions of 
China and the international labor organizations. 

This contact was established thru the passage 
"i ;i resolution by the Congress itself to join the 
in in-national organization of revolutionary trans- 
i>nil. workers. The Chinese railwaymen were re- 
i i' lilted at the last conference of this organiza- 
jlon held in Berlin. 

Strikes Mostly Successful. 

Most of the strikes of the last five years have 

in successful. Out of 21 strikes in 1921 only one 

ih lost. From 1919 to 1923 there took place 279 

■i 1 1 lv es in the foreign settlement at Shanghai. 

i ly-two of the 69 most important strikes for the 

>d of June, 1921, to February, 1923, were com- 

jilH.e victories and only a few total failures. 

The 1924 Awakening. 

The international conference of transport 
Workers of the Pacific, held at Canton in June, 
IICM, marked the beginning of a new period in the 
llihor movement of China. For a year and a half 
|li*< unions had operated underground, with all the 




force of the state used against them. Working clafli 
organizations had been forcibly disbanded, meetin 
places and offices denied them, their leaders arreste 
and given harsh jail sentences when not shot 
executed, and even the cooperatives dissolved. Tli 
conflicts between rival military governors, and tholr 
need for popular support, together with othor 
changes in the general political and economic sitiw 
tion, rendered it possible for the unions to come 
out in the open. They still encountered bitter op*i 
position, particularly in cities like Shanghai where 
the foreign industrialists made their support of th 
tuchuns contingent on breaking up working clafl 

Unionization Proceeding Rapidly. 
The unions have made the greatest progreai 
in the South, where Sun Yat Sen encouraged theil 
formation, granting them legal recognition, am 
furnishing them every facility for their proper fun< 
tioning. There are now over 300 unions in Canto 
alone. Hongkong has 200 and Shanghai, which hai 
become the great industrial center of China, had 111 
1925 at least a hundred local organizations. Nearl 
one-third of the entire industrial proletariat, som 
what over half a million (1925), of the country i 
concentrated in Shanghai. Of these, approximate! 
80,000 were then unionized, not including the thou« 
sands of coolies, dockers, and drivers who alafl^ 
had organizations. The overwhelming number (fl 
women and children in the Shanghai mills — abou^ 
one-half are children, mainly girls, and most of tho 
adults are women — made it extremely difficult to 
organize the textile workers of that city. It wu 
not until the end of 1924 that a beginning was madf 
by the formation of a union in certain Japaneso* 


c a .2 



owned mills where there was a relatively high per- 
centage of men. Immediately the Japanese capi- 
talists started in to discharge those active in the ■ 
agitation, replacing wherever possible the men by 
women and increasing the standard of production. 
This open shop war led from incident to incident 
until it culminated in the general strike of last sum- 

New unions are springing up all over China, 
the reflex of its increasing industrialization. The 
influence of the Soviet Union, as a great working- 
class state based on the most extensive organization 1 
of the workers, is a powerful contributing factor. 
The largest industrial groups are the cotton mill 
operatives, numbering 160,000, and the silk workers, 
80,000. The porters, 100,000, from the characterl 
of their employment, are very difficult to organize. 
The union movement has won over a large propor- 
tion of these leading groups. 

The Metal Workers Union. 

It has already been pointed out that the unions 
are industrial in type. They include all the workers 
of a particular industry as opposed to the craft 
union type which still prevails in this country. The 
Metal Workers Union of Canton is a good illustra- 
tion of the kind of labor organization in which the ] 
Chinese believe. 

This union has a membership of about 160,000, 
taking in practically all the workers in that indus- 
try who work in the city or the surrounding towns. 
The union is divided into ten departments: ma- 
chinists, electricians, stokers, founders, turners, 
draftsmen, molders, steel workers, modelers, and 
copper workers. Its program is very broad, aiming 



fa effect the industrial, economic, social, and educa- 

il improvement of all its members. The broad 

DOlal vision of its founders is evidenced in its aotiv 
ii i< ib, those already under way and those projected. 

Be include a monthly and weekly newspaper, the 

i (((ion of a technical school for the training of 
bfttftsmen under union auspices, a sanitarium for 
i lubercular members and a convalescent home 
ior Its aged; a general hospital, a savings bank, a 
1 1 1. id el factory for mechanics, and a kindergarten 
fnr the children. 

The Lu Pan "Industrial" Union of Peking. 

The Lu Pan Industrial Union of Peking repre- 
llts an interesting contrast for it embodies a tran- 
sition stage on the one hand between the old trade 
| II I Id including both employers and their journeymen 
umI functioning principally as a contracting organ- 
| 1 1 ion and on the other hand the modern industrial 
union based on the class interests of the employees. 
pho union is an amalgamation of a number of crafts 
inch formerly constituted independent trade 
111 lids, characteristic features of the historic social 
I i imomy of the country. The lines of craft divisions 
wo then drawn as rigidly in China as they still 
(ic generally/ in the official labor movement of the 
I lilted States. Members of the Carpenters Guild, 

x ample, were forbidden to touch a blacksmith's 

IiioIh. These distinctions, tho thus deep-seated, are 
I disapearing in the new labor movement and the 
(prater solidarity enormously strengthens the 

This organization regulates the wages and 
I hours of its members. It gives assistance to its 
Ipnni, sick, aged, and unemployed. In addition, it 





bids on building projects by the government. Cq 
tracts thus secured are distributed by lot to i 
members. For losses on contracts thus obtainoi 
they may be reimbursed by the union on show in 
good cause. Members who have difficulties in co 
leering accounts or are involved in law suits m n 
appeal to the organization for assistance. If n 
need of money, the union may advance a certain 
amount at a nominal interest rate. Of late yearn 
the competition of foreign building contractors hffl 
seriously interfered with this phase of its activity, 
With the inevitable supremacy of the Western tyjM 
of business organization, the Lu Pan union wll 
have to give up its attempt to do contracting aiilj 
confine itself to representing the class interests oj 
the craftsmen. 

How the Chinese Treat Scabs. 

An interview which Paul Blanshard, field seal 
retary of the League for Industrial Democracy, hud 
with the secretary of the Chinese Electrical Worl 
ers' Union of Shanghai while in that city during thj 
general strike last summer, illustrates the tactic 
of the workers. Asked what the union did to Hi 
strikebreakers, the secretary answered: "We tall 
care of strikebreakers very easily. We just dro 
around to their houses, take them out to some coj 
venient lot, and make them kneel down in a cir 
of strikers. 

"We don't beat them up at all, but we mato 
them sign a statement something like this: 'I if 
a dirty low-down traitor to my fellow-workera' 
Then we take their pictures and their stateme 
and hang them up where everybody can see. . . 
No, we don't have many strikebreakers." 



A Militant Labor Movement. 

Like the Russian workers, those of China have 
.Irv doped a militancy both of object and method. 
Unencumbered by the dead weight of a traditional 
form of \organization to meet the onrush of large- 
icale modern industry, they have been able to forge 
ihi ad, using the tactics best suited to the immediate 
till nation: The Chinese labor movement has already 
realized the inevitable conflict between the working 
Ulass and its allies as against the political organiza- 
1 ion of the ruling class, the capitalist state. This very 
1 ■nificant fact struck the attention of Finch, who 
observes: "One of the most disturbing phases of 
tli ina's development in recent years has been the 
in. reased use of mass action and organized agita- 
lion, not only as weapons in industrial disputes, but 
n 11 manifestations of growing political strength." 
This aggressiveness he attributes to the influence 
Of socialist doctrines from Russia and to resentment 
against the interference of the military governors 
111 1 he economic struggles of labor. 







The militancy which characterizes the working 
Class movement makes also the students movement, 
Which is playing somewhat the same part in China 
11 h that played in Russia by the students just prior 
to 1905 and during that revolt. As we shall note in 
the story of Sun Yat Sen's life, it was the students, 
linrticularly those that had come into contact with 
ilrniocratic ideas in the United States and England, 
who led the struggle against the Manchus and later 
Igainst the Japanese in retaliation for the infamous 
'l demands," presented by Japan to China during 
Hie world war. It was their demonstrations also 
which influenced the Chinese delegation at Versail- 
les! not to sign the peace treaty confirming Japan's 
I lalm to Shantung. The economic boycott has been 
I lie particular weapon they have most, successfully 
mm ployed. Its use in 1915 against Japan caused 
v>ty heavy losses to the traders of that country, the 
Statistics showing a drop of 40 per cent in Japanese 
imports during that period. It was resorted to 
Igainst Great Britain last summer in connection 
ullli the general strike. English authorities esti- 
imiled the blockade of foreign commerce at Hong- 
lumg cost that country a million dollars a day. 

From the very beginning the students have 
inlmn a deep interest in the working class movement. 
Phcir viewpoint was thus expressed in Paul Blan- 
"Imrd's report of what the leader of the Shanghai 




Students Union told him during the general strike, 
"We students," he declared, "are fighting with tho 
workers because we believe in the workers' cause. 
I understand that your college students in America 
are very different from us. I understand that they 
are not interested in labor and that they sometimes 
break strikes. It is inconceivable that a Chineso 
student should act as a strikebreaker. We are closo 
to the workers in our thots." 

Of course, it is a fact that most of the studentH 
come from the better-off families. Whether in th;« 
course of later developments they will as a mai 
swing over to the side of those who merely desiro 
a democratic shell of government established in 
their country or whether they will, influenced by tho 
success of the Soviet Government in conducting a 
great nation on a working class basis, go the entire 
road with the revolutionary workers remains for 
the future to tell. The position of preeminence his- 
torically accorded the literati, as the educated class 
was designated, has hitherto contributed towardl 
the prestige of the students as a social group. Th 
events of the past summer, however, indicate that 
the position of leadership in the struggle of thi 
Chinese for national independence has passed tt 
the industrial workers. The industrial developmen 
of the country, together with the increasingly sharri 
conflicts of interest between the great capitals 
nations in their exploitation of China, will natural! 
accelerate this tendency. 


The Position of Woman. 

To those who still think of the Chinese womaj 
as entirely untouched by the modern world, it mu: 
be a good deal of a shock to realize that the woim 



of China are taking their place with the men in 
I he social, political, and industrial struggles which 
are going on. K. G. Hsiany, in an article in the 
International Press Correspondence of January 4, 
! 924, thus summarized their status in his country, 
lie divided the women's movement into three dis- 
tinct tendencies: the Working Women's movement; 
Feminism, and the Women's Christian Social move- 

The Working Women's Movement. 

As a result of the development of international 
imperialism, the barriers which separated China 
from the outside world have been broken down and 
the country industrialized. Upon the ruins of the 
patriarchial regime, modern factories have arisen 
which, for the greater part, belong to foreign capi- 
talists. The textile, silk and cigarette industry em- 
ploy a whole army of women workers. The foreign 
capitalists, as everywhere, take advantage ^odrthe" 
backwardness and the unorganized condition of the 
women workers in order to subject them to a double 
and threefold exploitation. Want and misery force 
the working women to participate in the class war. 

Thus, there took place in the year 1922 and the 
In -ginning of 1923 a great number of strikes which 
hear witness to the awakening class consciousness 
: 1 1 1 cl activity of the women workers. The far greater 
number of the strikes occured in Shanghai, which 
i: chiefly devoted to the textile industry and the 
Cigarette industry. Two important strikes, each of 
i hem involving three thousand women workers, 
took place in a large cigarette factory in Hupei. 
The extent and force of the movement are evidenced 
liy the fact that in some instances the strike lasted 
three or four weeks and involved 20,000 women in 




twenty-two different branches of the concern. The 
strikes, some of which were successful and some 
of which were without success, were carried out for 
various sorts of demands, all of which, however, 
bore the stamp of the outspoken Class struggle 
against the capitalist exploitation: For increase of 
wages and salaries, against wage reductions, against 
the worsening of the factory rules, for the shorten- 
ing of the working day and, it is interesting to note 
in repeated cases, including the largest strike, for 
trade union rights and the creation and recognition 
of organs for conducting struggles. 

The total number of strikes during the period 
from February, 1922, to January, 1923, amounted 
to 18, the number of workshops involved in the 
strikes 60, and the number of working women tak- 
ing part in the strikes 30,000. 

The Feminist Movement. 

The feminist movement in China dates back to 
the Revolution of 1911, in which the women also 
participated. Altho immediately after the overthrow 
of the Manehu dynasty this movement displayed a 
lively activity, it weakened noticably during the time 
of the reaction, whcih lasted until 1929. With the 
setting up of the government in the South, the femi- 
nist movement also revived, especially in Canton. A 
group of women intellectuals demanded equal civil 
and political rights for women. These demands were 
eagerly supported by the youth of both sexes and 
in January, 1920, were crowned with success. A 
woman was elected to the municipal council of Can- 
ton, and other women were appointed as inspectors 
of education, as municipal officials and officials in 
the state service, etc. In the year 1922 the students 



M Canton founded a political society which set itself 
the task of fighting for the economic, political and 
civil rights of women. Similar organizations were 
formed in Shanghai, Tientsin, Nanking, Peking and 
Dther large towns. Their object is to fight for civil 
quality between men and women. 

The activity of the Chinese feminists consists 
In joint petitions and demands to parliament. The 
ivminist program contains the following demands 
for women: 

1. Political rights. 

2. Right of inheritance and independent dis- 
|umal of property. 

3. Equal pay for equal work. 

4. Equal marriage rights. J___^/ 

5. Equality in instruction and education. . 

The feminist association of Shanghai has in 
•iihlition its program of demands for the women 
poetal employees as well as the demand for the 
ir,l it-hour day for the women employed in the slik 
i IC lories; further the prohibition of the employment 
"i children under 14 years in the factories and, 
Hn.illy, the demand for a weekly day of rest for 
women workers. 

The lumping together of women's demands 
lilch bear an outspoken bourgeois character with 
i hose which would be entirely in place in a prole- 
j u'lan class war program of working women, re- 
ih ils the two-sided character of a women's move- 
ment which as yet has no clear orientation with 
ffltfnrd to the classes. This is due to the fact that 
|iii|)italism and bourgeois democracy in China have 
|ti>l. yet reached that stage of development when the 
illusion of the universal sisterhood of the women 




of all classes and of every social standing, as o 
. posed to the men, has been torn aside. 

The Women's Christian Social Movement. 

Finally there exist in China Christian women fl 

reorganizations. (Christian Youth, Anglo- Am ericauj 

"Associations of Christian Women). They are fairly 

jhumerous and work for benevolent aims. Thesffl 

societies occupy themselves more or less with thf 

working women, but in a purely petty-bourgeoia, 

bourgeois-democratic reformist sense. For instance, 

they set up situation bureaus for women, societiel 

for mutual help and schools for young women. The; 

send delegates to the International Congress for th 

Protection of Women's Labor. The society 1 

Shanghai has, for example, addressed the f ollowin 

requests to the municipal council of Shanghai. 

1. Prohibition of night work in factories f 
children under twelve years of age. 

2. Organization of obligatory courses in the 
factories for the education of young working 

3. Hygienic conditions of work in the fac4 

It further demands the organization of crechffl 
in the factories for the children of the worn! 
I workers and also sought to mediate on behalf 
the working women on strike in the silk industry 

Working Women's Only Mass Movement. 

Of these three kinds of women movements 
China it is only the working women's movemen 
which is a mass movement. The feminist movo< 
ment is limited to the intellectuals and relies upon 
a purely petty bourgeois ideology and opportunistic 



( actios which do not permit of the least revolution- 
ary act'. In spite of this, however, it is to be noted 
that many members of the Chinese women's organ- 
izations actively support the national revolutionary 
movement and thereby enter into a broader move- 
ment of the masses. 

The Christian social movement seeks to draw 
masses of the working women into its ranks by 
demanding reforms for the bettering of the condi- 
tions of labor and the living conditions of the 
women. But this movement stands quite under the 
influence of foreign capital and continually seeks 
to stultify the revolutionary movement. Neverthe- 
less, the cultural activity of this movement is accel- 
erating the awakening of the Chinese women and 
is thereby creating the possibility for organization 
work among the broad masses of the working 
women and preparing the ground for bringing them 
into the Communist movement. 

"The intellectuals of China have yet to learn that na- 
tionalism unless supported by organized force is a Lorelei, 
a beautiful woman whose lovers are wrecked upon the rock 
on which she sits and combs her golden hair. The require- 
ments of a modern government, which is national organized 
force, are too concrete, too definite, to allow for mere ebulli- 
tions of language." — Trans-Pacific (Tokio). 



"However brief and inconclusive the present episode, 
moreover, ((referring to General Strike in China) one must 
see it, not as a minor and passing affair, but as a manifesta- 
tion of a deep-seated and growing sentiment, the revelation 
of a movement which may prove the most important and 
significant of the century which we are now so well-embarked 
upon." — 'Prank Simonds, Review of Reviews, August, 1925. 

"Thru all ,the dust which has been stirred up by the 
killing of demonstrating students, thru the flames that have 
been fanned ablaze by Chinese nationalism, we may see, 
indistinctly but certainly, the grim struggle between capital 
and labor, with British and Japanese bearing the full share 
of the responsibility for capital — this time." — "G", in "Foreign 
Affairs," London, October, 1925. 




(A) its Origin; The Attitude of the Powers, and 
Its Results. 

Out of labor conditions so horrible as those 
which we have related, finding their counterpart in 
l.he early years of the factory system in England, 
arose the industrial conflicts which led to the gen- 
eral strike in Shanghai and other Chinese cities of 
lust summer. In February, 1925, a strike had been 
• •.-tiled In one of the Japanese-owned cotton mills 
Of Shanghai as a protest against the brutality of a 
Japanese foreman who had struck and seriously 
Injured a twelve-year old Chinese girl worker. The 
fluid "had committed the heinous crime of falling 
asleep in the factory after completing a twelve J hour 
Bight shift. The Japanese were accustomed to use 
I lie lash on their workers to speed them up and to 
punish them for violations of the factory regula- 
tions. The strikers demanded that this infamous 
method of enforcing orders should be abolished and 
i heir working conditions and wages be improved. 

In April the Chinese workers in the Japanese- 
owned textile mills at Tsingtao, Shantung province, 
went out on a sympathy strike. The Japanese had 
ni'ven factories there, employing 14,000 workers, 
of whom nearly one-half were children from 13 to 
I (i years old. Early in May the managements con- 
ceded the demands but a few days later they repu- 
diated their acceptances upon orders from the home 



"P. & A 


At almost every street corner near the foreign settlements in J 
scenes like that depicted above could be witnessed during the General 

The building on the corner to the left is being used as a tempit 
to hold the most persistent of the agitators. The men on guard are I 
Volunteers, consisting for the most part of th e clerks employed by f 
firms. These hirelings are risking their lives to protect the ill-goUl 
of their masters. 



Mlllco in Japan. Thus early in their struggles the 
I 'hi i lose workers discovered that the only thing 
Milch counts in the class war Is the force with 
hlc.h they are able to back-up their demands. 
I raving repudiated their signatures the Japanese 
nwiHvrs followed the most approved American tech- 
nique in smashing labor organizations by flooding 
Hi i«lr mills with police, stool pigeons, and strike- 
In rakers of all kinds. Outbreaks followed between 
IIiIh imported rabble and the starving workers. On 
tin- 15th of May strikers were shot down by mill 
,. in ids in Shanghai and this bloodbath was re- 
|ii< by the feudal Chinese military leaders in 
Thlngtao a week later. Nothing was done to punish 
[llii murderers. 

British Slay Chinese School Boys. 

in order to make an end to the strike the Japa- 
nnic mill-owners asked the British chief of police 
I,, arrest the leaders in the movement. Tho the 
llillish and Japanese capitalists would like to ex- 
clude each other as competitors in China, they are 
hI ways, like other exploiters, anxious to help one 
•mother when it comes to a united front against 
workers. Accordingly the British chief ordered 
Sikh police (from India) to jail the agitators. 
i ho there was no law against striking and the city 
,. not under military control the arrested Chi- 
(« labor leaders were promptly courtmartialled 
0..1 given severe sentences. A mass meeting was 
i, rid on Chinese territory to protest against this 
Injustice. A few students marched from the meet- 
ing with their banners into the International Set- 
tlement. They were arrested and held incommu- 
ado for a week, not being allowed to see their 



friends, nor given sufficient bedding or food. 02] 
May 30 they were remanded for another week, nol 
having been able to raise the excessive bail de- 
manded. The mixed court assigned them for trial 
before a Japanese assessor. Yet it was in the Japa 
nese mills that the trouble had started and therJ 
was besides the very bitter feeling between the two 
nationalities because of the arrogant attitude oj 
Japan in the past. 

Thereupon the students of the city, aroused by 
these intolerable wrongs done to their countrymen, 
flocked to the Settlement and organized a protesj 
demonstration. As the parade was passing down 
Nanking Road, the principal thorofare, and just ai 
it was opposite the Louza police station, British 
police inspector Everson ordered the crowd to di:; 
perse. The command was given in English, which, 
of course, was not understood by the Chinese. Ten 
seconds later, without a word of warning, he or- 
dered his Sikhs to fire. He admitted all these factH 
in the investigation later, and conceded also thai, 
the first line of the paraders was not more than six 
feet away when the police shot pointblank into their 
ranks. At the first volley the crowd fled. The bravo 
officer, however, ordered a second volley. The in 
quest showed that most of those slain had been 
shot in the back while trying to escape. The crowd 
was mainly composed of boys and girls from thol 
schools of the city and it was these whom the im- 
perialist murderers had shot to death, along 
bystanders and some workers. The students wero 
distributing handbills asking for justice to th«| 
strikers and their own arrested comrades. Not aj 
single policeman was injured. 



Workers and Students Stand Their Ground. 

Be it said to the credit of the Chinese workers 
and students that they showed a magnificent cour- 
age in this critical situation. Day after day they 
kept up their peaceful demonstrations and day after 
day the British police fired on the unarmed crowds, 
t'ven using machine guns posted for that purpose 
by the marines from the warships in the harbor. 
Wholesale arrests of the Chinese were made and 
I muse-to-house searches carried on to terrorize the 
workers. A reign of terror was instituted. Other 
Cliinese cities witnessed similar sights. During the 
llx days when these conditions prevailed in Shang- 
hai there were at least 70 Chinese killed and 300 
wounded in that city alone, according to an appeal 
iBKued in June by the staff of the National Univer- 
nl(y of Peking. Not a single foreigner was reported 
i in the casualty list. 

Immediately the news of the massacre spread, 
the flame of resentment among the Chinese leaped 
I lite wild-fire. The accumulated wrongs and injuries 
of decades, the violent spoliations of their territory, 
the unprincipled intrigues and wholesale infringe- 
ments on their national sovereignty, the contempt 
[or them expressed at every turn by the foreign 
l ruders, the supercilious "holier-than-thou" attitude 
Bf the missionaries, and the insolence of the foreign 
military commanders, — all these wrongs which had 
ninkled in their bosoms unexpressed for so many 
bears now found a vent in the intensity of feeling 
ji roused by the Shanghai massacres. If the shots 
wed by our embattled forefathers at Lexington 
were "heard 'round the world" we may be sure that 
lilntory will record those rifle volleys fired by British 
'•ninmand in Shanghai during last May and June 



as the tocsin which summoned the oppressed colo- 
nial peoples and subject nations for a world-wide 
revolt against imperialism. 

The Strike Begins. 

Hundreds of thousands of Chinese went on 
strike. Early in June over a million had joined in 
this demonstration of solidarity— the greatest gen- 
eral strike in history. All classes took part during 
the first three weeks. The big warehouses ana" 
banks as well as the shops were closed for that 
period in Shanghai. On the 23d of June the strike 
of the business people ended, with the concurrence 
of the trade union council, leaving only the workers 
in the British and Japanese establishments on 


Foreign Intervention. 

The foreign consuls had called for warships to 
protect their nationals as soon as the trouble began. 
The American consul in Shanghai cabled to the 
State Department that all his personal servants had 
struck, forcing him to cook his own breakfast and 
other meals. 

On June 11 there were 23 foreign warships in 
the harbor, most of which belonged to the United 
States. England, France, Italy, and Japan wero J 
also represented. 3,000 marines had then been 
landed, a large proportion Americans. This conn 
try was quite properly fulfilling its function of inter 
national strikebreaker to the great joy of its British 

The English consul, unable to accomplish any- 
thing in his own office, accepted the kind offer oi 
his American colleague and moved all his effects 
into the United States consulate. The solidarity ol 



the international exploiters of labor was touching 
in this extremity! A despatch to the London Times 

lated that the walkout of the servants at the con- 
sulate was particularly annoying, don'tcher know? 
The message is worth reproducing: "The insult 
to the king's representative, whose personal serv- 

lltts have been seduced from work, provokes great 
Indignation among the residents." 

Internationa! Strikebreakers. 

The trouble spread to Hongkong. The executive 
I ummittee of the All-China Federation of Trade Un- 
luns, formed at the All-China Trade Union Congress 
in May, 1924, was in charge of the strike here, re- 
i Iving the support of both the people and govern- 
ment of Canton, which is only six hours travel by 
Utoamer from Hongkong. The most desperate 
measures were taken to break the strike. Strike- 
breakers were recruited from even as far away as 
I he Philippines. Russian "white guard" refugees 
round the job of scabbing on the Chinese workers 
inure profitable than that of overthrowing the gov- 
i urnment of their native country. The city authori- 
ng resorted to wholesale murders of agitators, 
iss deportations and corporal punishment of 
Strikers. At a meeting of the legislative council 
which rules the city, Sir Reginald Stubbs, the gov- 
| vrnor-generaL made, according to British accounts, 
"mii excellent fighting speech." He announced that 
liiTiingements had been almost completed for mak- 
ing the capture of those engaged in "intimidation" 
i . rlain. "These should in the future be flogged 
while those already in jail would be employed in 
mnvenging work in the city, a course which would 
|M,:.:;ibly make them regret the results of their ac- 



tivities." The Hongkong government by official 
resolution particularly acknowledged "the help <>l 
the American community, which has come forward 
en masse for this purpose" (to break the strike). 

The Massacre at Canton. 

In Hankow, Kiukiang, Chinchiang, and Canton 
brutal massacres took place, the victims being in 
all cases exclusively Chinese. In the three first- 
named cities, the British were alone responsible fj 
the murders. The French shared in the responsl 
bility of the most brutal affair, that at Canton. 

The island of Shameen, on which both tin 
British and French concessions are located (forcibly 
acquired from China), is separated from the Chi 
nese city of Canton by a canal only 80 feet wido, 
Following the declaration of a general strike of 
sympathy for the Shanghai victims of the foreign 
massacre, a parade took place on June 23 in Can 
ton. The demonstrators comprised workmen, stu- 
dents, merchants, and cadets. While the procession 
was marching past the island on the Chinese streot 
running parallel, British marines without a word 
of warning opened a sweeping rifle and machino 
gun fire on the unarmed sections of the crowd. Mow 
than a hundred Chinese, including many bystander* 
were killed or injured. A number were boy and girl 
students. Members of the staff and student body 
of the American-controlled Canton Christian Col«j 
lege were among the slain. 

Not content with having deliberately planned 
this slaughter in advance in order to intimidate tho 
Chinese, the English command arranged to havfl 
soft-nosed or "dum-dum" bullets fed into the gun* 
so that great, gaping wounds were torn in thoHn 





Brain shot away by rifle fire 

> 'V; 

More than a hundred killed and injured 




His Battle Is Being Taken Up by Millions of His Comradl 



• Chinese seaman, with his mouth, face, nose and lips 

Dot away. His teeth were completely torn out. He was 

of the victims of the Shameen massacre. 



struck. Such ammunition is specifically debarred 
in "civilized" warfare but what are all such regula- 
tions but hypocritical phrases to delude the massel 
until the ruling class considers it necessary to "pul 
the fear of God" into them? 

Soviet Union Only Nation to Protest. 

The Central government at Peking had pro- 
tested the massacre to the consuls of the Power: 
involved. Thereupon M. Karakhan, Soviet ambas 
sador to China, in the name of the entire diploma! i. 
corps of which he was dean, sent a message of sym- 
pathy to the Chinese government and a note of 
protest against the killings to the Students Union 
of Shanghai. His action was promptly repudiated 
by the ministers of the other Powers. What did 
they care about the murder of a few hundred Chi 
nese? But they were soon to learn to care! 

From this time on a period of comparative in 

action ensued by the nations concerned, so far 

drastic and direct intervention on a large scale wn« 

concerned. Marines continued to be landed, ho v. 

ever, and warships rushed to various disturbed cen« 

ters.' The Powers dared take no decisive aci 

because of the widespread and dangerous intensity 

of feeling aroused among the Chinese and becauwi 

the governments could not count with certainty 

upon the support of their own people in case surll 

steps were taken. Outside of the Soviet Union, thl 

Powers were torn by mutual distrust, jealousies, anil 

conflicting political and financial ambitions. A I 

every opportunity the Workers' and Peasants' Go] 

ernment of Russia expressed its open and complHi 

sympathy with the Chinese masses, winning tholr 

friendship and by these very tactics arousing I ln> 



MH.erest hatred and fear on the part of the British 
imperialists in particular. 

A Difficult Struggle. 

At the commencement of the general strike and 
[or some time after, it had commanded the unani- 

us support of all classes of Chinese. This did 

lot last long, however, for soon a portion of the big 
•••Hirgeoisie in the Shanghai chamber of commerce 

k a stand for an agreement with the imperialists, 

I'm ring the spread of the movement and apprehen- 
UVe lest it take on a generally anti-capitalist atti- 
Hide. While the petty bourgeoisie generally stood 
i'v Hie strikers, their support at times wavered and 
lection of them in the Kuo Min Tang With a pro- 
lnpanese tendency even urged a "reconciliation" 
iltli the Japanese in order to concentrate the fight 
" ,n nst the British, 

The imperialists, too, had effective means of 

mking back. They control the news services 

iii< h supply the entire Chinese press and the papers 

hi ide of China. In their employment are the nu- 

Bi i "us "compradores" (Chinese representatives of 

foreign business concerns) and the army of over- 

i ; and foremen who conduct the f oreign-man- 

Hi'nl establishments and many of the native-owned 

I that country. Chang Tso Lin, the pro- Japanese 

llillllary dictator of Manchuria, took advantage of 

l|!l«« situation to despatch troops to Shanghai for the 

Mir pose of "protecting the interests of the nation." 

W'IiIh he accomplished by closing the union halls, 

forbidding public meetings, murdering strikers, and 

■l j orally aiding the imperialists to the best of his 




Besides these difficulties, there were those aril 
ing from the working class groups which compri:. ,i 
the hulk of the strikers. These consisted of the tel 
the workers, the porters, and the seamen. Most OJ 
the textile workers were women and children, notf 
of whom had been organized prior to last year. Tffl 
porters included many unrestrained elements whlffl 
easily succumbed to the provocation of yellflj 
agents. The seamen, of course, with the experici.n. 
of the great strike of 1922, were the best discipline' 
■ of all and very effective fighters. 

Altho the workers' ranks remained unbroken 
the confinement of the strike to Shanghai altf 
Hongkong, despite isolated outbreaks in other cltM 
that were harshly suppressed by the imperialists afl 
their Chinese hirelings and despite the nationwl.l 
sympathy it evoked, made it evident that the over 
throw of the imperialists could not be accomplish!! 
with this weapon. Only an armed struggle of tl 
whole Chinese people could accomplish this enl 
War alone would suffice to break the strangleh(fl 
of the imperialist Powers. 

Sensing this crisis in the situation, the Shanj 
hai labor council —in the words of I. Geller 
Moscow, whose analysis of the struggle as publish! 
in the International Press Correspondence we hti 
largely followed,— "while retaining the general j 
tional slogans as battle cries for the coming nation • 
struggles, called upon all the forces of the nation I 
defend these demands and laid the 
for the further national struggle upon the PeWJ 
and Canton governments, but put forward as I 
main demands not national, hut proletarian - 
mands: recognition of the trade unions, mcrej 
in wages, a 60-hour week, one day's rest in sevi 



rol n statement of all strikers, etc." As he states, 
i iih. "opened up the possibility for maneuvering, 
[Or negotiations, and compromise." 

The Strikers Win. 

Last October a settlement was reached by the 

"i ton mill workers in the Japanese factories where 

i In- trouble originally started. The strikers won 

i in- right of organization and the mill workers union 

i:. specifically recognized. Japanese foremen are 

longer to carry guns with them in the factory 

niliir ordinary circumstances. The workers are 

fOtected against arbitrary discharges and assured 

r fair treatment. Wages are to be increased in the 

|ar future. When it is remembered that the over- 

iiilining majority of these strikers were women 

ml children organized for the first time last spring 

mi that the foreign mill owners had behind them 

II I he resources of their home governments while 

|! workers had virtually nothing, this was indeed 

most noteworthy victory. 

The Seamen's Union also won its fight, having 
1 1 [ved at an agreement with the Japanese shipping 

panies under which all strikers were to be re- 

| |li i led with full pay for the time they had been 
II The question of increased wages was to be 

• ii in up thru special negotiations later. 

The acute economic crisis in Japan, with the 

• ii'iidant political instability, compelled the Japa- 
■ < lirms to yield. Official Japanese figures revealed 
linl 1,600,000, or a third of the industrial popula- 
lun of Japan was unemployed, a larger proportion 
|)liii in England. Moreover the retention of the 
l|ilin'se market is a life-and-death matter for Japan. 



What the Genera! Strike Accomplished. 

Geller, in the article we have referred to, tlm> 
summarizes the results of the Shanghai gencr ' 

1. For the first time in the history of Chin! 
millions of the population were drawn into the Nl 
tional movement. In a few months a political woi i 
has been accomplished which under ordinary cir 
cumstances would have perhaps required years. 

2. The working class, in spite of its limitfl 
numbers, in spite of its weak political and tradj 
union organization, has obtained the hegemony 
the National movement. 

3. Under the pressure of the National mo;. 
ment a rapproachment has come about betweo^ 
the Peking and Canton governments, which hat 
now "recognized" each other for the first time, ei 
changed delegations, and jointly taken over a maij 
date of the nation for the fight against imperialism 

4. In connection with the events in Shanglin 
the Chinese people have become clear as to the ro' 
of Chang Tso Lin, as an instrument of imperialism 
as an inner enemy who must be annihilated in th 
interest of the emancipation and uniting of Chin 

5. The growth of the consciousness and 
ganization of the working class, before all, in Shanj 
hai itself where a third of the entire industrial pro|| 
tariat of China is concentrated. The members! i 
of the Communist Party of China has doubled dm 
ing the strike. The trade unions show an evj 
greater growth. 



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(B) Demands of the Chinese and the Shanghai 

The demands of the Chinese against the treatj 
Powers may be put into two categories: those arlH 
ing immediately out of the Shanghai massacres and 
those which spring from abuses connected with thl 
special rights of foreigners in China and from in 
fringements on Chinese sovereignty. The lattoi 
group we have already dealt with. 

A number of demands were drawn up by thj 
workers and students of Shanghai shortly after tM 
Nanking Road shootings and presented to the diplo 
matic corps thru the medium of the Chinese Cham 
ber of Commerce (which a short time later with 
drew from the strike agitation) in behalf of tin 
Amalgamated Union of Commerce, Labor, and Edu 
cation which was then directing the strike. TflJ 
Amalgamated Union represented in turn the Gen 
eral Labor Union of Shanghai (Shanghai General 
Chamber of Workers — the real labor unions), tM 
Chinese National Students Union, the Shangi 
Students Union, and the Federated Street Union 
(Union of all Shanghai Concession Streets MM 
chants), composed of 10,000 shopkeepers of thl 
city arranged by streets. 

Release Arrtested Chinese. 

The first demand was that those Chinese ai 
rested for the demonstrations should be releasnl 
and sentences already given should be suspendoil 
Schools seized and occupied by the marines shouM 
be restored to their rightful owners. American 
sailors, on their officers' pretext that certain Ch 
nese schools had become "breeding places of Bol- 
shevism" invaded several of the universities of 



Bhanghai, ransacked the buildings, and turned the 
nludents and faculty out onto the streets while the 
marines themselves occupied the quarters. A more 
high-handed procedure would be hard to imagine 
i ho one thoroly in accord with the traditions of the 
ii iniy official staff which understands that a stand- 
ing army under a capitalist government is expressly 
meant to hold down the workers. 

The next demand was for indemnities for the 
families of those injured or slain, and punishment 
for their murderers, as well as a public apology. 
Needless to state that here they were following the 
nx ample of the foreign Powers which had always 
made such a demand upon the injury of any of their 
nationals at the hands of the Chinese. 

All strikers were to be reinstated in their jobs 
without wage reductions or fines. Workers not 
wishing to return to their positions should not have 
their wages withheld for the time on strike. There 
wore demands for the freedom of speech, press, and 
HHHomblage for the Chinese residents of the foreign 
Mi't tlements and for an equal division of voting power 
In the Shanghai municipal council between the na- 
il ves and foreigners. The Chinese actually owning 
i Hid should have the right to vote. 

Other demands dealt with the return to China 
nf roads arbitrarily built into its territory, the can- 
< illation of additional wharf duties, the dismissal 
I of the British secretary of the municipal council 
■Who was held largely responsible for the arbitrary 
" ■ i : i of the local administration, the termination of 
I ho state of siege (martial law), and a provision 
Unit the council should not have the right to sup- 
I'H'ss publications. 



Consular Investigation Forced. 

These demands were refused peremptorily bj! 
the Shanghai authorities. The wave of Chinese in 
dignation at this farcical proceeding was so menao 
ing, however, that the consuls at Peking hasten el I 
to appoint an investigating committee of their own 
This body formulated a report in which the British 
were blamed for the troubles in Shanghai. Thl 
resignation of the British members of the municipal 
council were demanded as well as that of Stirling 
Fessenden, the acting American chairman, and thl 
dismissal and punishment of the English chief oj 
police. The resignation of the entire council waj 
demanded in case this decision was not carried oul 

No sooner was the report in definite form thafl 
the British consul at Shanghai cabled to Austea 
Chamberlain, Great Britain's minister of foreign af 
fairs, demanding its suppression. A special cabinH 
meeting in London decided to make such an ordejj 
but before the decision could be cabled the com 
plete document was published simultaneously 10 
Paris and Tokio. This coincidence disclosed a com 
mon understanding between Prance and Japan COJ 
checkmating England. The British at once charged 
that the French and Italian consuls had secured thl 
adoption of the investigating commission's record 
mendations in order to injure the prestige of Oit:ii 
Britain in China and to raise that of their own 

Scheme to "Whitewash" the British. 

Early last August, coincident with the stair 
ment by Austen Chamberlain to the British Parlin 
ment that the Empire was opposed to the confej 
ence on the Chinese customs and extra-territorial 1 1 I 



proposed by President Coolidge, came the word 
from Washington that Great Britain would partici- 
pate and the announcement that a new "investiga- 
( ion" was to be made of the Shanghai massacre. A 
month later, on September 6, a Tokio despatch 
declared that "America, Japan, and Great Britain 
have agreed to send judicial authorities from Manila, 
Tokio, and Hongkong immediately to open a judicial 
Inquiry into the responsibility for the Shanghai 
riots." These representatives did later arrive in 
Shanghai but their inquiry was boycotted by the 
< 'hinese. They had no confidence in such an inquiry 
in view of the British hypocrisy in the previous 
investigation and believed the scheme was merely 
one to absolve the British of the major respon- 

The correctness of their opinion is hardly dis- 
putable. The American press shut up like a clam 
Dii the entire proceedings of the consular investiga- 
I Ion, an extremely heavy and very sudden pressure 
having quite evidently been applied, — not at all sur- 
prising in view of the interlocking financial interests 
of the two Anglo-Saxon nations. The only news- 
paper in the United States to give full publicity to 
the matter was the Daily Worker of Chicago, the 
official organ of the Workers (Communist) Party 
of America. 

Was a bargain struck between the United 
Hlates and Great Britain whereby the latter would 
approve the conferences on Chinese customs and 
oxtra-territoriality provided the former would take 
part in a new investigation designed by the British 
lo clear them of the responsibility for the Shanghai 
massacres? All the evidence indicates that this 
actually took place, tho not, of course, committed 



to paper. The slimy trail of capitalist diplomacy 
seldom leaves such traces, even if the abolition of 
secret diplomacy was one of the glittering promises 
made to the peoples of the world during the last. 

Judicial Hokus-Pokus. 

The inquiry, however, took place without par- 
ticipation by the Chinese. According to the sec- 
retary of the judicial commission, the report, to- 
gether with the decision as to responsibility, was 
handed to the American, British, and Japanese 
consuls at Shanghai for transmission to the diplo- 
matic corps at Peking the first week in November. 
A month and a half later, on December 23rd, the 
latter body released the matter for publication. 
What had happened to the report during those six 
weeks? It is probable that it would never have 
been made public at all except for the danger to tho 
Powers of still further embittering the Chinese. 

What did this "investigation" discover? The 
British and Japanese judges generally agreed in 
exonerating the Shanghai authorities, — in other 
words, in "whitewashing" their fellow-exploiters. 
The American judge, however, accurately reflecting 
the Chinese policy of the United States, found that 
the British chief of police was negligent in the way 
that he handled conditions. As revealed in the nego- 
tiations over the Chinese situation the past summer, 
the American department of state has at all times 
been ready to doublecross its chief rivals in the 
Orient, as they in turn were ready to doublecross 
each other. Such duplicity is characteristic of capi- 
talist diplomacy. It cannot change its methods any 
more than the leopard can change its spots. 



To Buy Their Way Out. 

The Shanghai municipal council, realizing that 
i lie report of the majority of the judges would but 
add fuel to the already dangerous situation, tried 
to soften the decision by transmitting $75,000 in 
I he local currency of the city to the Chinese com- 
missioner of foreign affairs at Peking for distribu- 
I ion under his direction to the wounded Chinese and 
the relatives of those killed. In gold, this sum 
amounted to only about $40,000. A hypocritical 
statement accompanying the note explained that 
I he payment was "voluntary" and~"a mark of sym- 
pathy" for those injured. The check was, however, 
Immediately returned by the minister, who renewed 
the Chinese demand for an indemnity of $2,000,000 
and the return of the mixed court to Chinese con- 

The council also announced that "notwith- 
standing the fact that the findings of the majority 
of the judges exonerate the police," it would "accept 
the resignations" of police chief McEuen^and inspec- 
tor Everson, the two officials involved. The news- 
paper despatch announcing this decision declared 
that it was "unofficially reported that McEuan's 
salary will continue for life and that he will receive 
(51,000 taels (about $35,000) as an old age allow- 
ance." Remembering how the British so richly 
rewarded General Dwyer, the butcher of Amritsar 
lor murdering hundreds of unarmed Hindus a few 
years ago, there is every reason to believe the "un- 
official" report is correct. Thus are the murderers 
of the working class and the oppressed colonial peo- 
ples rewarded by the capitalists! 



"Sun Yat Sen will go down in history as the greatest 
figure of a leaden of the national revolutionary movements 
of the East in the first quarter of the twentieth century. He 
was neither a Communist nor a Marxist. His program— 
'nationalism, democracy, socialism' — bore all the signs of the 
backwardness of the social conditions of China. He tenta- 
tively sought his way, but he hated with a righteous hate 
the imperialists who had subjugated his native country. He 
devoted his life fully and entirely to his people, and what it 
more important, in the last years of his life he perceived 
more and more clearly that the suppressed peoples can only 
emancipate themselves and create the pre-conditions for a 
new life in close alliance with the world proletariat. . . . 

"The advanced workers of all countries who belong to 
the Communist International will revere the memory of Sun 
Yat Sen as one of the greatest representatives of that move- 
ment of the suppressed nationalities which is marching side 
by side with the advanced sections of the world proletariat 
to the fight against imperialism. 'The place of the bour- 
geoisie, which is decomposing while it still lives, will be 
taken by the proletariat of the European countries and by 
the young democracy of the Asiatic countries which is filled 
with belief in its own powers and trust in the masses'. 
These words Which Lenin wrote a year before the outbreak 
of the imperialist World-War are of special import at the 
present time, when the proletarian dictatorship in the Soviet 
Union is now in its eighth year (1925) and when the great 
national liberation movement thruout the whole East is ripen- 
ing so rapidly. The difference between Chamberlain and 
Ebert is considerably less than the difference between Ebert 
and Sun Yat Sen. The Eberts are the allies of the world 
bourgeoisie, the Sun Yat Sens the allies of the world prole- 
tariat. There can be no doubt that the final victory belong* 
to the world proletariat and to the armies of the national 
revolutionary movements of the East which are marching 
forward to unite with it. This victory is no longer distant." 
— Gregory Zinoviev, President of the Third Internationa], 



The Kuo Min Tang is the political expression 
"i I he Chinese Nationalist movement. Its program 
( l!)25) calls for the revocation of all leases to terri- 
lory extorted from China by force or fraud; the 
I'opeal of the "unequal" treaties, i. e., those which 
■ • ognize the right of extra-territoriality and cus- 
1 1 mi is control; the abolition of the tuchuns (military 
fcnvernors) ; the reduction of the armed forces 
which now aggregate 1,500,000 by returning the 
Huldiers to peacetime occupations; and formulation 
of a democratic constitution with a government 
luiKud on it, the authority of which shall be acknowl- 
edged thruout the country. For putting this pro- 
gram into effect, a national assembly is to be sum- 
moned in which representation is provided for all 
HitHses, tho naturally the overwhelming majority 

Id be peasants and industrial workers. 

Just as the labor movement of China developed 
with its industrialization, so the Kuo Min Tang rose 
Wild has grown from the same cause. As soon as a 
lilt hcrto backward country from the capitalist 
hi midpoint begins to build up modern industries ot 
|||m own a native bourgeoisie develops which natural- 
[)y Hceks to use the state to rid itself of foreign com- 
jiHition in the internal market. The struggle over 
lli<' tariff in the United States was just such an 
effort of the rising capitalist class of America to 
nl i lain a stranglehold on the natural resources of 
I Ik- nation and to secure thru its domination of the 




government discriminatory customs rates whioj 
would enable its members to monopolize the dd 
mestic market for themselves. 

An "Efficient" Government Necessary to Capitalism 

A writer in one of the Chinese monthlies tl 
marks in the course of a discussion on the induj 
trialization of his country that "modern methods <j 
production cannot dispense with efficient govern 
ment." The rising capitalist class of China wand 
a national government which will be indepandefl 
of foreign control and strong enough in its intern! 
administration to create political conditions favOJ 
able to the development of private trading and I" 
the building up of industry and finance on the modi 
of that which prevails in Europe, America, and J| 
pan. For these reasons a split within the Kuo Mill 
Tang over the question as to whether its polin 
should be pro-labor or anti-labor was inevitable » 
soon as the tension between the two growing ill 
visions became severe. That conflict broke out n 
the reorganization congress of the party in Febru 
ary, 1924, and resulted in a decisive victory for tffl 
more radical wing. This struggle is taken up moW 
in detail in discussing the influence of Sun Yat S«| 

Sun Yat Sen, Founder of the Kuo Min Tang. 
The founder of the Kuo Min Tang and its Ml 
questioned leader thruout his life was Dr. Sun Ynl 
Sen. The story of his fight for the emancipation 
of his people from the tyrannical rule of the dectt 
dent Manchu dynasty and then from the yoke 
foreign oppression is one of the most thrilling storM 
in all revolutionary literature. 

Sun Yat Sen was born in 1867 in a little villa| 



|hn founder and during his life the recognized leader of the 
•lilntse Nationalist Movement, his memory is venerated by 
|| workers and peasants of China. His last wish before his 
Kith was to be buried "beside his great friend, Lenin." 



in Kwangtung province. His parents were poor pea 
ants. He studied medicine in Canton and then I" 
Hongkong at the British medical college from whioll 
he graduated as a surgeon, having the distinction ol 
introducing western medical science to the Chinem 
He joined the staff of a Chinese hospital in Mac:"- 
the Portuguese possession on the coast, and hon 
became affiliated with a group of young studenl 
who were discontented with the inefficient, corn i pi 
and autocratic rule of the Manchus. Soon his tinil 
was divided between his professional duties and 
political agitation. This work was carried on pi 'In 
cipally among the students and soldiers. His plail 
was to form them into secret revolutionary organ 
izations aiming, first to overthrow the monarch \ 
and then to drive out the foreign Powers. Till 
authorities finally forced him to leave on the tecll 
nical ground of not having a Portuguese diploma. 

In Revolutionary Canton. 

From Macao he went to Canton which becaiw 
the center of the revolutionary movement. Hon 
with eighteen others he founded the society whtoll 
later was known as the Young China party. li- 
object was to replace the Empire with a republic 
like that of the United States. In a few years III 
was the only one of the group who had not bee] 
discovered, caught, and executed. 

The overwhelming defeat of China by Japan 10 
1895 seemed a propitious moment for starting 1 1" 
revolution. Rebels were already on the march I" 
seize Canton when the movement was betrayed. 1 1 1 
forces were quickly dispersed and those -capturwl 
were summarily executed. The doctor escaped i» 
Macao where he remained in hiding for a shod 



Years of Exile Abroad. 

This defeat marked the beginning of a period 
Of exile covering many years during which he visited 
.lupan, the United States, and Europe. He thot that 
I ho Chinese living abroad would have an interest in 
democratizing their native land and hoped to estab- 
lish revolutionary centers in the groups which he 
Biet. He lived in California for several years. Dur- 
ing his visit to England he was captured by emis- 
itaries of the Chinese minister to that country thru 
a trick. The intervention of his old-time English 
Icacher saved him from being sent home in chains 
to meet a terrible death. After traveling in various 
oilier European countries he returned secretly by 
way of the Malay Archipelago to Hongkong where 
he remained in hiding. He afterwards stated that 
the Chinese he had visited abroad generally regarded 
him as a traitor and that he had found few fol- 
lowers during those years. 

In 1900 he headed a second insurrection in Can- 
i on. Again defeated, he undertook another propa- 
Kiinda journey but in contrast to the lack of interest 
ii nd the coldness which had greeted him on the first 
this time his countrymen abroad met him with en- 
i hnsiasm and cordiality. Revolutionary groups were 
fHlablished in Brussels, Belgium, with a membership 
nl' thirty; at Berlin, with a membership of twenty; 
mid at Paris, with a membership of ten. From begin- 
nings so small as these grew the mighty movement 
which was to sweep the emperor from his throne 
mid eventually the imperialist Powers from their 
rontrol of China. In Japan his followers were num- 
bered by the hundreds and in all the provinces of his 
unlive land secret groups were established. Under 
IiIk leadership the various revolutionary elements 



were united into the Tung-meng Hui, or "Alliance! 
Society." He then organized insurrections in Cen 
tral China as well as in the South, all of which 
failed. An enormous price was placed on his head 
and he was forbidden to land in China or any ol 
the foreign settlements of eastern Asia, or in Japan 
This forced him to spend many years in the United 
States and Europe in exile, working underground. 

Elected Provisional President of China. 

After fifteen years of this most perilous and 
adventurous life he finally returned to his native 
land at the outbreak of the revolution which late In 
1911 proclaimed the establishment of the republic 

At this time there were no clearly defined 
classes in China. The economically enslaved pea; 
ants and the poor workers of the towns, as well uh 
the politically unenfranchised merchants, all joined 
in the movement to overthrow the hated dynast 
which was considered to be wholly under foreign 
control. The Revolution achieved a quick victory, 
many of the monarchists themselves joining it« 
forces when they saw the futility of further re 

Ql>ot Q T"l f* O 

On January 1, 1912, Sun Yat Sen was elected 
as the first Provisional President of China. Aftoi 
two months in that position he resigned in favor or 
Yuan Shi Kai, who had the support of the powerful 
northern militarists and who was personally ambl 
tious to become Chief Executive. Sun believed thul 
this step would unify the nation by preventing thfl 
threatening civil war between the North and thfl 
South and that it would also prevent the restoration 
of the Manchus. His trust in Yuan Shi Kai wan 
however, entirely misplaced. No sooner was tli« 



latter given the position than he began scheming 
to make himself the head of a new dynasty. 

Tung-meng Hui Reorganized. 

On March 3, 1912, the Tung-meng Hui was re- 
organized as a political party. Sun Yat Sen was 
chosen its National Director. The objects of the 
organization were stated to be: the consolidation 
of the Republic and the diffusion of democratic 
ideas. Its political program advocated the centrali- 
zation of national power, together with the develop- 
ment of local self-government; the fusion of the five 
population elements, i. e., the wiping out of the Con- 
fucian division of society into the classifications in 
(he order of their merit of scholars, farmers, me- 
chanics, tradesmen, and soldiers, tho the latter were 
really ranked as having no social standing at all; 
utate socialism, sex equality, obligatory military 
lervice, reforms of taxation and public finance, na- 
tional equality (against extra-territoriality), de- 
velopment of natural resources, for agricultural and 
colonizing enterprises, and for responsible cabinet 

A few months later, on August 23, 1912, the 
Tung-meng Hui was amalgamated with five other 
political groups of varying size and importance and 
to the combination the name Kuo Min Tang (Na- 
I lonal Party) was given. The objects of the organi- 
sation thus formed were to achieve the union of 
North and South, to demand local self-government, 
to maintain satisfactory relations with foreign gov- 
ernments, and to work for the adoption of socialistic 
i principles in China. The reorganized party soon 
Krew to enormous proportions. Place-seekers of all 
It I uds, high officials of the former Emperor, unscru- 



pulous politicians, all became zealous overnight con- 
verts to the new order! 

Yuan Shi Kai Murders the Republican Leaders. 

Overriding the will of the National Assembly, 
Yuan Shi Kai in 1913 secured from the Great Power! 
a large loan, ostensibly for the internal developmoni 
of the country. In reality it was used to suppreal 
his republican opponents. The very trouble Sim 
Yat Sen had hoped to avoid broke out. Yuan Su 
Kai murdered his political adversaries wholesale in 
approved Fascist style. Sun Yat Sen led the samd 
year a revolt against the dictator but it failed and 
again he was an exile, with his party declared illegal 
During this period he reached an agreement with 
certain reformist leaders of the organization wlm 
did not wish a sharply-defined program of thj 
party's objectives nor a strongly disciplined group. 
They formed another party which was termed tbi 
"Revolutionary Party of China." 

Sun Yat Sen Turns to the Peasants and Workers. 

In 1915 he organized a second revolution 
against Yuan Shi Kai. Civil war again raged Ifl 
China. Yuan Shi Kai died suddenly in 1916 shortly 
after proclaiming himself Emperor. Tuan Chi Jul, 
an old Chinese politician of pro-Japanese leaning 
became the real political head of the country, tl 
order to crystallize the opposition and to consolidate 
the republican forces, Sun Yat Sen formed a Souih 
China government. He was elected its first Prefl) 
dent. He now began to realize that the chief sup 
port for his movement must come from the oppreB- 
sed masses, the city workers and peasants. Accord- 
ingly he gave his utmost support to the seamen in 



I heir great strike at Hongkong in 1922. In retalia- 
llon the British induced General Chen Gang Ming, 
one of his former generals, to revolt. Sun Yat Sen 
again had to flee. A year later he was back in con- 
trol of Canton. 

Left Wing of Kuo Min Tang Wins. 

In February, 1924, a national congress of the 
revolutionary party was held in Canton at which 
I he old name, Kuo Min Tang, was resumed. A bitter 
al niggle took place between the Right wing, repre- 
aenting the conservative, purely Nationalist ele- 
ments and the Left wing, headed by the Commu- 
nist Party, over the reorganization of the party. 
The conservatives wanted the party to remain a 
loosely-knit organization without a sharply-defined 
program and including various groups whose eco- 
nomic aims were as opposed as those of the workers 
mid the industrialists. The Communists and their 
nyinpathizers, on the other hand, desired to build 
up a closely-knit party which basing itself on the 
masses should carry on a militant campaign against 
Imperialism and for labor and peasant organization. 
Hun Yat Sen, who had now become greatly influ- 
enced by the policies of the Soviet Government and 
the objects and methods of the Communist Interna- 
I lonal as he had learned of them from contact with 
A. Joffe, Soviet representative in China, whom he 
had met in Shanghai in 1923, and other Commu- 
nists, cast in his lot with the radicals. The result 
was that the Left wing won a decisive victory. The 
defeated group since then has drifted out of the 
party and will furnish a natural neucleus for an 
anti-labor Nationalist movement. 

The already great influence of the Russian Bol- 



shevik revolution upon the Chinese masses waH 
evidenced in the adjournment of the Congress fOl 
two days as a demonstration of their grief over the 
death of Lenin. 

In the reorganization Sun Yat Sen took the 
Russian Communist Party, with its rigid discipline, 
as his model. "The only aim of the old membei'H 
(of the Chinese party)", he declared, "is to get rich 
and to obtain posts as high officials. They are no! 
true revolutionaries. The workers and peasantH 
alone are the real forces of revolution." The slogan 
of "A Workers and Peasants Government" wal 
adopted and the alliance of these two elements rec 
ognized as the motive power of the revolution. Tho 
Left wing of the party carries on an intensive propn 
ganda for the immediate abrogation of all treaties! 
granting special privileges to foreigners and is ered 
ited by Dr. S. Washio, of the Trans-Pacific stall, 
with "an ineradicable influence on the restless spirit 
of the Chinese." He ascribes its strength to thi 
fact that its adherents are "Communists by convic- 

Manifesto Shows Party Aims. 

Upon its conclusion the Congress issued a mani- 
festo to the Chinese people summarizing the aimfl 
and policies of the Kuo Min Tang. The following 
passages show its position upon the questions of 
nationalism, democracy, and State socialism: "Kuo 
Min Tang cannot but devote its every effort to con- 
tinuing the struggle for the emancipation of tho 
Chinese people from the double yoke, while leaning 
for support on the wide masses of the peasantry, 
the workers, and intellectuals and the middle trad- 
ing class. For each of these classes nationalism 
means the abolition of the yoke of foreign capital- 



lum. While for the trading and industrial classes 
nationalism means escape from the foreign eco- 
nomic yoke, which is preventing the development 
Of the economic forces of the country, for the toiling 
classes nationalism means escape from the agents 
Of imperialism — the militarists and capitalists, both 
foreign and national, who are greedily exploiting 
I heir vital needs. For the masses of the population 
[he whole duty in the fight for national emancipa- 
I ion lies in anti-militarism. 

"The Party of Kuo Min Tang proves that where 
Imperialism has been weakened as a result of the 
national struggle, the masses secure a better oppor- 
I unity of developing and strengthening their organi- 
zations for the future struggle. Kuo Min Tang 
Khows that its principle of nationalism implies a 
healthy anti-imperialist movement. For this purpose 
it must lend every effort to support the organiza- 
lions of the masses of the population, thereby set- 
I ing free the national energies. Only in the intimate 
contact between Kuo Min Tang and the masses of 
( Uiina lies the pledge of the future national indepen- 
dence of the country." 

"Under the conditions of contemporary society, 
Ho-called democracy becomes transformed into a 
Hystem and machine for the oppression of the popu- 
lation by the bourgeoisie. The democracy of Kuo 
Min Tang is the government of the people by the 
whole people, and not merely by a minority. The 
democracy of Kuo Min Tang is to be regarded not 
from the point of view of the national rights of men 
but as a principle corresponding with the revolu- 
tionary needs of China at the present moment. 
Power belongs only to the citizens of the Republic, 
and it is obvious that power must not be given to 



the enemies of the Revolution. In other wordfi, 
while those members of the population and thoao 
organizations which support the real struggle 
against imperialism enjoy every right and freedom, 
such freedom is in no case given to elements and 
organizations in China which are assisting the for 
eign imperialists or their agents, the Chinese mili- 

"As regards the foreign loans concluded by 
China, such loans must he secured and redeemed in 
accordance with the capacity of the country to pay, 
without undermining at the same time its economic 
and political stability. 

"Loans concluded by irresponsible government^ 
such as the one which has at present seized tho 
national government in Peking, loans which servo 
not to improve the well-being of the country but to] 
support and prolong militarist tyranny, or are used 
for bribery and private gain, will not be paid by tho 
Chinese people. 

"All powers and persons concerned who ad- 
vance such loans are hereby warned of the risk they 
are running." 

Defeat Canton Fascisti. 

Following the defeat of the Right wing in the 
Kuo Min Tang, the "Volunteer Corps," which hadi 
been organized by the merchants of Canton for thl 
ostensible purpose of protecting their property, be- 
came very active. Their real object was to over- 
throw the pro-labor city administration of the Sun' 
Yat Sen supporters. Foreign capitalists supplied 
these forces with money and weapons. When tho 
authorities confiscated a shipment of arms which 
the merchants were trying to smuggle in, the mer- 


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chants replied by closing up their shops. The Bn 
consul demanded the release of the vessel and thttl 
the shipment be allowed delivery at its destination 
The American consul also jient a peremptory noti 
to the Canton government, declaring that 'till 
Powers will adopt all measures and use every m< 
at their disposal which are necessary for the protoi 
tion of the life and property of foreigners." In till 
note of the English representative it was declared 
that the British naval commander had received <>i 
ders for action. American, English, and French 

warships were assembled at Canton, Hongkong, ; 

Shanghai to intimidate the Chinese. Sun Yat 
cabled a protest to Ramsay MacDonald, the Premlnr 
of the English Labor Government, denouncing till 
imperialistic interference in the affairs of the citj 
MacDonald never even replied. The fact that till 
British fleet continued its preparations was answi I 
enough to show that in this as in every other III 
stance MacDonald and his associates were as mm ill 
devoted to the Empire and the King as the woi 
labor exploiters in England. 

Encouraged by this open support of the Poweri 
the local Fascisti broke out in open revolt. ChOfi 
Lim Pak, the Chinese compradore or agent for Brll 
ish interests in China, who represents the all-powoi 
ful Hongkong-Shanghai Banking Corporation (10n 
glish-owned), is the leader of the Chinese reaction 
aries and arranged for the financing of the 

break. He kept, of course, at a safe distance fr 

any danger, his home being guarded by Brillnli 
police, and so was not injured when the attempl 
was utterly crushed. In the fighting the Kuo Mill 
Tang troops, which had been organized after thl 
February conference on the pattern of the i>'<- 



Army of Russia, distinguished themselves and 
proved anew the correctness of the Communist 
llieory that the armed might of the workers is the 
Hole safety of a labor government. A later effort 
i to capture Canton, made by a traitorous Yunnanese 
Ki'iieral, with the backing of the English and French, 
u;is also defeated. 

The "Bolshevik Capital of China." 

Canton in the hands of an administration 
friendly to the workers is an ever-growing menace 
[o the plans of the foreign imperialists and the rising 
unlive capitalist class. Thus a correspondent of the 
North China Daily News, writing in the Kolnische 
leitung of Cologne, Germany, characterized the 
Iti-d" domination of that city as "an experiment 
I liich the whole of Asia is watching." Its interna- 
uonal aspect, he explains, is "crystallized in an em- 
iilllered struggle between England and Russia, the 
• mtcome of which cannot be foreseen." He boasts, 
however, that "everything is being done by the Brit- 
i.h with intellectual and material means to starve 
Olit Bolshevist ideas in Canton." 

Nor is the native bourgeoisie much behind the 
foreign traders in their demands for the blood of 
the workers. Last September the Hongkong Cham- 
ihi of Commerce, composed of Chinese merchants, 
together with 24 merchant guilds, cabled a protest 
ill over the world against the "Red" rule in Can- 
inn. The Mercury of Shanghai, a newspaper repre- 
ii ling English and Japanese interests, urged Great 
| hritain to intervene with military forces in order to 
>vi Tthrow the Canton city government. ". . . it 
■ i ins unlikely," this journal commented, "that any 
[unti-Red body at Canton at the present moment 



would be capable of ousting the Bolshevist reginir 
without outside assistance. By accepting the clinl 
lenge of Bolshevism," the paper continued, "thl 
British would be rendering a singular service to thl 
people of Canton." 

If murdering the workers wholesale in order td 
continue the bloody rule of foreign capital is a sen 
ice, it is, indeed, a "singular" one in a sense quid' 
opposite to that intended by the above comment. 

Sun Yat Sen Continues Struggle. 

Sun Yat Sen, even during the critical days af 
Canton, continued his struggle against imperialism 
by attempting to utilize the conflicts between thl 
military chiefs in China thru allying himself and hlw 
followers with those which seemed the less dange] 
ous to the country. Thus he organized the "antl- 
Tschili bloc" in cooperation with Tuan Chi Jul, 
whom he had been opposing and with Chang Tflfl 
Lin, whom he knew was pro- Japanese, in order to 
defeat Wu Pel Pu, the tool of Anglo-Saxon imperial- 
ism and the bitter enemy of the Chinese working 
class. Upon the elimination of Wu Pei Pu in tho 
civil war of 1924, the forces of Sun Yat Sen and <>l 
Chang Tso Lin were brought face to face, with Tuan 
Chi Jui as the puppet in the President's chair, and 
a new military chief Peng, in control of Peking and 
the northwestern provinces. 

Sun Yat Sen urged the calling of a general 
constituent assembly in order to establish a basiH 
on which all Chinese could be united. Tuan Chi 
Jui proposed a "reconstruction conference" selected 
on a basis which he would dictate and with a per- 
sonnel he could control. The Japanese, whose in- 
fluence was now dominant thru the defeat of Wu 



Pei Pu, called Sun Yat Sen's ideas illusions and 
supported Tuan Chi Jui with loans. The latter 
induced general Chen Gang Ming, the same rene- 
Ifcde who had previously revolted and captured 
I '.niton, to attack that city again, believing that the 
lerious illness of Sun Yat Sen favored the scheme. 
I lie attack was repulsed. 

Sun Yat Sen's Death. 

Sun Yat Sen's illness, however, was incurable. 
| >n March 11 he died of an inoperable cancer, a 
■ urious irony of fate for it was he who had intro- 
duced modern surgery to China. It is tragic that 
In' passed away just at the time when his life work 
w.'is stirring into action the hundreds of millions of 
workers and peasants for whom he had so freely 
■ n-rificed himself. 

The high regard which Sun Yat Sen had for 

I lie leaders of the Bolshevik revolution in Russia 
<ln led from his meeting Joffe in Shanghai in 1923. 

II was Sun Yat Sen's last request, as he lay on his 
Math-bed, that he might be buried "besides his 
peat friend, Lenin" whom he had met personally 
Hii a visit to Moscow several years before. 

The Kuo Min Tang and the Soviet Government. 

The friendly relations existing between the Kuo 
Mln Tang and the Union of Socialist Soviet Repub- 
lic, is most significant. It is voiced in the public 
blntement of the National Executive Committee of 
i lie Kuo Min Tang, issued May 21, 1925. The para- 
graphs referring to Russia are as follows: 

"As to the nations which treat us on 
the footing of equality, we declare, as we 



have stated in our manifesto on the Sino- 
Russian agreement, that only Soviet Rus- 
sia deserves the name of an equal partner." 

And further on: 

"This party (Kuo Min Tang) should, 
therefore, continue hand in hand with the 
Soviet Republics to struggle against impe- 
rialism for the realization of the national 
revolutionary movement." 

Sun Yat Sen's Last Message to Russia. 

The tremendously growing influence of the 
viet Republic and its policies upon the Chine; 
embodied in the message which Sun Yat Sen wrotj 
to the Soviet Government when he knew he was o{j 
his deathbed. The letter reads: 

"Dear comrades: 

"Here on my deathbed my thoughts turn LO 
you, as well as to the future destiny of my parly 
and of my country. 

"You are the head of the Union of Free Repul) 
lies, that heritage which the immortal Lenin has lofl 
to all suppressed peoples of the world. By menu 
of this heritage the victims of imperialism will in 
evitably win their emancipation from that social 
order which has always been based upon slavery, 
war and injustice. 

"I leave behind me a party which, as I alwaj 
hoped, will be allied with you in its historical tal] 
of liberating China and other suppressed peopk 
from the yoke of imperialism. 

"My charge to the Kuomintang party befm. 
all is that it shall continue to promote the cause of 



the national revolutionary movement for the eman- 
cipation of China, which has been degraded by im- 
perialism into a semi-colonial country. I therefore 
Hiarge my party to maintain permanent contact 
with you. 

"I cherish the firm belief that your support of 
Illy country will remain unaltered. 

"In taking my last leave of you, dear comrades, 
I express the hope that the day is approaching when 
1 1) (3 Soviet Union will greet in a free and strong 
China its friend and ally, and that the two states 
will proceed hand in hand as allies in the great fight 
for the emancipation of the oppressed of the whole 

"With brotherly greetings, 

"Sun Yat Sen." 

Second Kuo Min Tang Congress. 

The Second National All-China Congress of 
(he Kuo Min Tang was held in Canton beginning 
January 1, 1926. This date marked also the fif- 
feenth year of the formation of the Chinese republic 
Itnd the anniversary of Dr. Sun Yat Sen's installa- 
tion as President of the Provisional Government of 
the South (the Canton government). 

The stand of the 1st Congress on the funda- 
mental problems and tactics of the Nationalist 
movement was reaffirmed. The party membership 
Was reported as over 500,000, with members in 
flvery part of the country and among emigrants 
In other lands. The strongest section was natural- 
ly that of Kwantung in which Canton is situated. 
In this province there were reported 997 branches 
With a membership of 48,000. The largest percent- 



age of the members are peasants, with the induu 
trial workers coming next. 

Economic Program. 

The economic program of the Kuo Min Tan) 
was summarized as follows: 

(a) Emancipation from imperialist finanelnl 

(b) Financial unification. 
Establishment of a budget. 
Abolition of heavy and vexatious tax« 
Protection of native industry. 
Abolition of likin. 
Abolition of the system of tax-monopnh 

'farming out" of the collection of taxes. 
Equality of taxation for foreigners anil 





and the 


(i) Organization of a revenue collecting col 

trol commission. 

(j) Fixation of the number of revenue ofli<" 
and decent salary for them to avoid extortion. 

(k) Monetary reform to put the currency on 

a stable basis. 

(1) A nationalist government loan of ?1U,ihm 
000 for urgent public works, such as the buildlnj 
of Whampoa port, etc. . . . 

(m) Customs autonomy. 

For Aggressive Action. 

The Congress affirmed the great important-- - 

maintaining the Kuominchun (Nationalist) ar 

in the north for carrying on the war against CI in 
Tso Lin and Wu Pei Fu, both subsidized by forolj 
Powers, and against the Provisional Tuan Chi ' 



(pro- Japanese) central government. To these re- 
actionary forces the Kuo Min Tang replied by re- 
peating its demand for the convocation of a national 
conference, representing the entire people on a 
democratic basis, in accordance with the plan of 
Hun Yat Sen. 

Soviet Demonstration. 

A most significant demonstration ensued upon 
i he presentation to the congress of a huge red silk 
>. I reamer, the gift of the Third International. An 
Inscription in gold letters upon the banner read: 
"Oppressed peoples of the world, unite to overthrow 
imperialism. Presented to the Second Kuo Min 
Pang Congress. From the Third International." 

The International Union of Oppressed People. 

Closely connected with the struggle of the Kuo 
Min Tang for national unity and reflecting the 
MMpects of that conflict which concern all the other 
iinlionalities of the Far East is the "International 
Union of Oppressed Peoples." In fact this organi- 
st lion includes not only the subject races of East- 
'in Asia but those of Africa and America as well. 

This Union had its inception in the recognition 
nit the imperialists try to keep the oppressed apart 
y inflaming racial and national animosities, just 
» the employers use a similar tactic within a coun- 
ts to keep its working class divided. Thus the 
Iftnch rulers of Indo-China had incited the An- 
n mites to boycott the Chinese and the Americans 
nl; year egged on the Filipinos to anti-Chinese 
emonstrations. To frustrate this scheme the 
hlnese, Hindus, Annamites, and Koreans formed 




"P. & A 


Held at Kwangtung University, Kwangtung. The speaker is Dr. (1 
son of Wu Ting Fang, former Chinese Minister to the United f 
memorial was held simultaneously at the Canton Chrisd 

at Canton. 




a joint anti-imperialist committee- of action, the 
precursor of the Union. 

Last summer (1925) its first general confer- 
ence took place at Canton. The response to its 
manifesto calling for a unity of the oppressed and 
exploited peoples of all countries in order to "set 
up together a united front against the oppressors" 
was so great that a second conference was held 
Inter during the year. At this gathering delegates 
were received from the following and the organiza- 
tions affiliated: the Kuo Min Tang party, the Union 
tor the Emancipation of Women, the Union of Revo- 
lutionary Women Telephone Operators, the National 
Trade Union Federation of China, the Peasants' 
Association of the Province of Kwangtung, the As- 
Hociation of Young Revolutionary Soldiers, the 
Cadets of the People's Army. 

Thereupon the conference organized itself as 
the International Union of Oppressed Peoples. The 
constitution states its object as that of gathering 
together all the forces of the oppressed nationali- 
ties in order to carry thru the revolution necessary 
for their liberation. Members guilty of anti-revo- 
lutionary acts are to be punished severely besides 
being expelled from the Union. The organization 
plans to get in direct touch with the revolutionary 
Nationalist and labor associations of every other 
country in order to establish a world-wide united 
iinti-imperialist front. 




Altho founded only a few years ago, the Com 
munist Party of China exerts a continually increas- 
ing and an important influence upon the workers of 
that country. Its propaganda is beginning to inilw 
ence the peasants also, who, as has been state I 
comprise the overwhelming majority of the popu- 

In accordance with the organizational unity OJ 
the Communist movement thruout the world, thi 
Chinese party carries out a policy in harmony with 
that determined by its highest body, the CommunM 
International. Accordingly it works with the Kuo 
Min Tang for the freedom of China from the yoli< 
of foreign oppression and exploitation, at the sail" 
time pointing out the inadequacy of the purely Na 
tionalist position from the standpoint of the fund;, 
mental needs of the workers and peasants. By tli u 
linking itself with the mass movements of the Chi 
nese it secures the opportunity to spread the phi- 
losophy of Communism under the most favorabln 
conditions. Communists recognize, in accordance 
with Lenin's teachings, that common cause mufll 
be made by the militant industrial workers with tin 
downtrodden subjects of the Great Powers in then 
colonies and with the exploited peoples of dominate. I 
nations, such as China. 

As long ago as October 4, 1923, the Execute 
Committee of the Communist Party of China urgod 
the convening of a national congress composed o( 



delegates from peasants' associations, the trade 
unions, students organizations, and similar groups 
for the purpose of 'drawing up the constitution, 
bringing together and uniting the people, and of 
appointing a new Chinese government." The Com- 
mittee demanded a "government created by the 
|K>oples out of its own forces, a government arising 
out of the revolution." The manifesto pointed out 
I hat there must be a "united democratic front" and 
"a continuation of the revolution until victory is 
gained over the native imperialists and the imperial- 
lid Powers backing them up." 

Tactics of the Chinese Party. 

After the massacres at Shanghai last June, the 
Party again set forth its position in an address to 
the workers and peasants of China. The Manifesto 
Illustrates the tactics used under such circumstances 
by the Communist parties. After reviewing the 
Imperialist aspect of this affair the Party outlines 
Hie basis of its policy. "The movement which has 
n risen out of the strike in Shanghai must set itself 
wider aims than the punishment of the guilty and 
compensation for the victims; it must pursue not 
Juridical, but political aims, before all the annulment 
of the unjust treaties of the foreign Powers with 
China and the privileges for foreigners, otherwise 
I here will exist no guarantee for the security of the 
lives of the Chinese. 

"The Communist Party has the following tasks: 

"First, to convert the present movement into a 
permanent process, the aim of which will be the 
abolition of foreign domination. 



"Secondly, to rally together all classes in Chin* 
by their participation in the national revolution aini 
by attracting the broadest masses of the people into 
the struggle. 

"The Communist Party must warn the Chine: 
people against relying upon diplomatic negotiation: 
and attempts at adjustment, and not to forget thai 
the present Chinese government of Tuan She Sul 
(Tuan Chi Jui) is the tool of the imperialists, jufll 
as Chang Tso Lin is a paid agent of Japanese impe- 
rialism. A compromise is absolutely impossible. [I 
is better to suffer a defeat than to make use of th< 
enemy as a protector and mediator, 

"The imperialists are endeavoring to split tlJ 
movement by asserting that the movement proceni 
from the Communists and the Soviet Union. If it btt 
true that the Communists are the originators of tin 
movement, the Chinese people ought to rally all th" 
more to the Communists who represent the interest! 
of the whole of the Chinese people. If it be true 
that the Soviet Union is supporting the movement 
this would only serve to prove that the Soviet Union 
is the sole friend of China. Unfortunately, the £<■ 
viet Union is unable to help China immediately to 
shake off the imperialist yoke. 

"The events in Shanghai have shown that all 
sections of the Chinese people recognize the neceH- 
sity of supporting the workers and peasants again 
imperialism. Hundreds and thousands of Chine:.' 
heroically faced the guns and rifles of the foreii-.n 
imperialists which were aimed at them. In spite ol 
Martial Law, in spite of threats and acts of violence, 
the whole population of Shanghai is unanimously 
supporting the strikers. The sacrifices will not bo 



In vain. The Chinese people will carry on the cause 
of liberation to a victorious end." 

Exposing the Chinese Bourgeoisie. 

The Party constantly drew the attention of the 
masses to the fact that as the struggle progressed 
Ihe counter-revolutionary character of the Chinese 
bourgeoisie would become more and more apparent. 
This became evident to all in the efforts made by 
Ihe native capitalists to restrict the area in which 
(lie boycott was to apply so that only Shanghai 
would be affected, and secondly, to restrict its appli- 
cation to the English police in that particular dis- 
trict. When the boycott and general strike move- 
ment continued to spread despite this opposition, 
Ihe Chinese bourgeoisie utilized the native milita- 
rists so bitterly hated by the people in order to crush 

I lie rising labor movement. Chang Tso Lin, the 
brutal pro- Japanese dictator of Manchuria, at- 
tempted last August to suppress all unions and the 
Kuo Min Tang in Tientsin and the other provinces 
he then controlled, resorting for this purpose to a 
horrible massacre of the workers in that city. The 
nine textile mills in Tientsin, employing 20,000 
operatives, principally women and children, are 
owned by Chang and his henchmen so the oppres- 
Hion of the workers is particularly ferocious there. 

The dictator's wrath had been aroused by the 
manifesto of the Communist Party of China, issued 

II few weeks previously, calling for a war against 
('hang Tso Lin, "the tool of the Japanese and the 
betrayer of the people." This manifesto included 
the following demands: 

"1. Abolition of the unequal treaties. 



"2. Disarming of the military rulers who do 
not wish to fight against the imperialists. 

"3. Guarantee of freedom of speech and 
press, and right of combination. 

"4. Abolition of the unequal treatment of 
-women in the judicial, political and economic 

"5. Abolition of the Likien system and other 

"6. Fixing of a maximum amount of landed 
property which can be held; any landowner po«- 
sessing more than this quantity must give the sann< 
to the poor peasants and small holders; establish- 
ment of a maximum rent for land; abolition of tho 
present custom of paying taxes on land several 
years in advance. 

"Unrestricted freedom for trade unions, right or 
strike for the workers; establishment of a minimum 
wage according to prices of food; legislation for 
the protection of labor. 

"8. The right of the workers and peasants to 
possess arms for their own defense. 

"9. Deposit of a definite sum in a bank for 
educational purposes. 

"10. Convocation of a real National Assembly." 

Young Communist League of China. 

In common with the Communist parties of other 
countries, that of China is arousing the youtliH 
of both sexes to an active participation in thi 
labor struggle. The report to the Communist In- 
ternational submitted in the fall of 1924 showed u 
membership in the Young Communist League of. 
China of approximately 3,000, mostly among tho 



students. The following sections of the report illus- 
l rate the League's field of activity. 

"The Chinese comrades are now organizing 
clubs of the working youth, sport organizations, etc., 
in the industrial centers and are recruiting there 
amongst the working youth for the League. At the 
same time peasant leagues are being organized 
amongst the national revolutionary sections of the 
peasant youth. 

"The Young Communist League has a great 
ideological influence upon the Chinese Student 
League, which has been the pioneer in the struggle 
against imperialism for many years. 

"The League issues a publication in the Chinese 
language ("The Chinese Youth") of which 48 num- 
bers have already appeared. The paper is widely 
distributed and is at the same time the leading organ 
for the active workers and the nuclei. Apart from 
this, the League publishes the periodical, "The Inter- 
national of Youth" in the Chinese language and also 
leaflets, etc. 

"The conditions for the growth of the Young 
Communist League are favorable. The working day 
of the Chinese youth is from ten to twelve and even 
fourteen hours. And in this time the young workers 
can only earn half the wages of the adults. The 
Chinese Young Communist League stands before 
the task of strengthening its economic work which 
has previously been absolutely insufficient. The 
Young Communist League agitates successfully 
upon the political field and attacks the imperialist 
plans for the enslavement of China in all meetings." 

Radically Inclined. 
The Chinese, as a matter of fact, are peculiarly 
susceptible to revolutionary propaganda, it has been 



noted by many observers. Thus Ta Chen, Professor 
of Sociology on the staff of Tsing Hua College :ii 
Peking, writes in the United States Monthly Labor 
Review (November, 1924) : "To millions, the strug 
gle for existence is too severe. Under these circuni 
stances the Chinese mind today is quite receptivo 
to advanced ideas. Economically, many farmer: 
and workmen in the country favor an experiment In 
Socialism, holding that such ideas can be applied in 
Chinese rural life, the village community being sma.ll 
and the population homogenous." Bertrand Rus- 
sell, the English philosopher, who taught in 'Chum 
several years ago, states that the "great majority" 
of the students are "socialists and opposed to thl 
capitalist system." 

A Death Blow to Imperialism. 

Furthermore, the loss of so huge a market aft 
China, with the vast political and economic change: i 
necessarily involved, would be a death blow to th<> 
imperialistic policies of the Western nations ami 
Japan, and thus an irretrievable weakening of their 
capitalist economy. Precisely for these far-reaching 
effects and influences the situation in China is ono 
which may at any time produce a crisis leading to 
another world-war. From this standpoint it is ono 
which the Communists, as the most militant ele 
ment in the revolutionary working class, should util- 
ize to the utmost. 


"All great officers of State are occupied with commercial 
nffairs. The Foreign Office and the Colonial Office are chiefly 
mgaged in finding new markets and in defending old ones. 
The War Office and the Admiralty are mostly occupied in 
preparation for the protection of our commerce. The Boards 
of Agriculture and of Trade are entirely concerned with these 
two great branches of industry. It is not too much to say 
that commerce is the greatest of all political interests, and 
that that government deserves most which does most to 
Increase our trade and to settle it on a firm foundation." — 
Joseph Chamberlain, former British Minister of Foreign 
Affairs, addressing the Chamber of Commerce of Birming- 
linm, England, in 1897. 

"Despite public impressions to the contrary, when nations 
Qet together in a conference each move is dictated by the 
primary instincts of self-interest. There may be an abundance 
of "altruistic" talk for public consumption, but in the final 
nnalysis it is the primary instinct of self-preservation which 
dictates all actions." — The China Weekly Review, Shanghai. 

"We are now come upon a time when it is the business 
of Government to direct the strategy of industry for its 
nationals in the bloodless contests of trade. IF, FOR A 
TIME WAR SHALL BE BANNED, the foreign activities of 
Government should be directed to securing by industrial 
•trategy what in other days was obtained by military force. 
, , . . The Department of State should work hand-in-glove 
with the Department of Commerce to open and hold the 
(irosvenor B. Clarkson, former Director «U. S. Council of Na- 
tional Defense, during World-War. in American Industries, 
January, 1924, national organ Chamber of Commerce of the 
United States. 





"Geographically and politically America has advantaged 
in the Far East unequalled by any other nation. Few Amerl- 
cans realize that the United States is closer to Asia than 
it is to South America, being about 50 miles distant via 
Alaska from the shores of Asia; that it is possible to connoot 
Asia and the United States by rail thru a tunnel acroai 
Bering Strait; that Manila, in American insular territory, la 
closer to China than is Tokio; that the United States has for 
the past twenty years governed an Asiatic colony nearly at 
large in area as Japan and with a population of 10,000,000 
people; that the United States with its insular possessiona 
has a greater Pacific coast-line than any other nation and 
probably as great as China and Japan combined."- -{Julias 
Arnold) quoted by High. 

"I believe that China offers the biggest field for com- 
mercial enterprise that exists today. ... It is to ba 
feared that foreign capital is going to get ahead of ours In 
the vast industrial and commercial expansion which is sum 
to come. ... I sincerely hope that our bankers may yet 
have the support of the Department of State in financial 
operations in China, and that whether this support is given 
or not, American bankers will not hesitate to enter the field 
on their own responsibility." — Vice-President of Standard 
Oil Co., quoted by Hornbeck. 

". . . China, 'with an average wage scale about ono 
twenty-fifth that of the United states, offers a marveloua 
field for industrial and commercial expansion, especially so 
when we consider that the country possesses unlimited unde- 
veloped natural resources, combined with a peace-loving, 
industrious, and hardy population. America now (1915) sup- 
plies only 8 per cent of the Chinese imports. Whene else aro 
to be found higher prospects of future development for 
American capital and enterprise than here in this, the oldest 
and most populous nation, but among the youngest in point 
of the development of her natural resources?" — Julian II, 
Arnold, former U. S. Commercial Attache <to American Lega- 
tion in Peking. (China Press, Oct. 16, 1915). 


"British foreign policy is broadly defined in the neces- 
sities of the British people. First, the government in its 
foreign relations must seek markets for the product of British 
Industry. It is by foreign dealings — by sales of British goods 
— that British industry may be sustained and the British 
people fed. Thus foreign trading becomes the first necessity 
of British policy. Second, British policy must look to de- 
fense of the empire; and that in its essence is the guardian- 
ship of India. These high considerations control British 
foreign policy and must continue to define its course if 
British prestige is to hold its traditional status. So far as 
the course of British foreign policy is concerned, it is no 
great matter which party shall ('be in executive authority or 
who shall sit in the premier's chair. As ^between premiers 
of one party or another, devices may differ, but the ends 
to be attained are identical. They are: (a) the finding of 
markets for British goods; (b) protection of the empire," — 
Chicago Tribune, Oct. 10, 1924. 

"It is not too much to say that the modern foreign policy 
of Great Britain is primarily a struggle for profitable markets 
for investment. To a larger extent every year Great Britain 
is becoming a nation living upon tribute paid from abroad, 
and the classes who enjoy this tribute have an ever-increas- 
ing incentive to employ public policy, the public purse, and 
public force to extend the field of their private investments. 
This is, perhaps, the most important fact in modern politics, 
and the obscurity in which it is wrapped constitutes the 
gravest danger to our state. 

"What is true of Great Britain is true of France and the 
United States, and of all countries in which modern capital- 
ism has placed large surplus earnings in the hands of a 
Plutocracy or of a thrifty middle class." — J. A. Hobson, in 
his book "Imperialism." 



The international Customs Conference held in 
Peking, beginning October 26, of last year, mark: 
an epoch in the relationship of China to the Gred 
Powers. We shall therefore deal with it rather al 
length, especially because it illustrates very well 
the economic factors which determine the imperial 
istic policies of the capitalist nations in their alii 
tude towards the Chinese. 

This Conference was called in pursuance ol 
treaties adopted at the prior international confn 
ence held at Washington, D. C, in 1921-1922, called 
to consider the limitation of armaments but ad 
dressing itself principally to the consideration oi 
that problem as it affected the balance of power In 
the Pacific. At Washington the nine Powers rep 
resented, chief of which were the United States 
Great Britain, France and Japan, adopted resolii 
tions submitted by the American representative 
declaring the intention of the signatory nations to 
respect the sovereignty, the independence, and thfl 
territorial and administrative integrity of the Ch! 
nese Republic. The nations which drew up thli 
statement had all been engaged, with the exccp 
tion of the United States, in a mad and utterly un 
principled scramble for privileges in China over Q 
period of many years. The only reason the United 
States had not participated in this wholesale rob 
bery was, as we have pointed out previously, be 
cause her ruling class felt no pressing need for such 



expansion. Other resolutions which were approved 
recognized the policy of the Open Door, meaning 
that the exploiters of no one nationality were to 
have an advantage over the other nationalities 
In plundering the Chinese. The participating na- 
lions agreed that they would not in the future 
leek special rights or privileges for their citizens 
from China. The Conference rejected a resolution 
offered by the Chinese delegation abolishing the 
upecial rights and privileges which these same na- 
lions had extorted in the past by means of bribery 
or coercion. 

American Diplomats Win Out. 

The decisions of the Washington Conference 
represented a decided victory for American diplo- 
macy and an equally decisive defeat for the Japan- 
ese. The adoption of the Open Door principle im- 
plied a repudiation of the Lansing-Ishii agreement 
negotiated during the World-War and a return to 
the policy of Secretary of State John Hay as laid 
down in 1898. The Lansing-Ishii exchange of notes 
had recognized the special relationship between 
Japan and China, a sort of Monroe doctrine for 
Asia under which Japan was acknowledged to have 
imperior rights in exploiting China, just as the 
United States has in exploiting the South American 
n nd Central American republics. 

Moreover, a treaty was drawn up between the 
United States, Great Britain, France, and Japan, 
for the mediation of any disputes over their posses- 
ions in the Pacific, and providing for the termina- 
lion on its ratification of the Anglo-Japanese Al- 
I liance which had been in effect since 1905. Thus 
■ the alliance of America's two chief rivals in the 



Pacific was broken. Nor was this all. As tho 
result of extended negotiations Japan was finally 
compelled to promise to return to China Shantuur.. 
from which she had ousted the Germans durinr, 
the World War. 

The Customs Conference. 

The fast rising tide of Chinese Nationalism 
with its insistent demand for the abolition of tin 
right of extra-territoriality and of foreign control 
over the Maritime Customs reached such a heighl 
during the early part of last year (1925) that tin 
United States took the initiative in suggesting tin 
summoning of an international conference to deal 
with these matters along the lines laid out in the 
Washington treaties. These agreements provide i 
for a Special Conference on the Chinese Custom 
Tariff to meet in China "within three months ol 
the coming into effect" of the treaties. They also 
made provision for the establishment of a Commifl 
sion to study the question of extra-territoriality ami 
the state of the judicial system of China in oroVi 
to formulate a report with such recommendation 
"as they may find suitable to improve the existin' 
conditions of the administration of justice in China, 
and to assist the Chinese government to effeel 
such legislation and judicial reforms as would war 
rant the several Powers in relinquishing, either pro 
gressively or otherwise, their respective rights ol 
extra-territoriality." This committee was to im- 
port within a year. Bach Power was to be "deenm.1 
free to accept or reject all or any portion of tin- 
recommendations of the Commission." 

Due to the failure of France to ratify, no a< 
tion was taken in the matter for nearly three yean 



The French refused to approve unless China would 
resume payments on the Boxer Indemnity in gold. 
These installments had been suspended upon 
China's entry into the World-War as part of the 
bribe to secure her support in driving the German 
traders out of her territory- The Chinese held out 
for payment in the paper franc which the French 
government issued to its own people as legal cur- 
rency. After lengthy negotiations France gained 
Its contention and the ratification of the Washing- 
ton treaty followed. 

The Washington Conference was willing to 
grant an increase in the Chinese Customs because 
only in such a way could sufficient revenues be 
secured to enable the central government to func- 
tion effectively and to maintain its authority 
thruout the country. The additional income would 
also be necessary in order to provide a refund to 
the provinces of local revenues which would be 
lost to them by the abolition of the likin. This is a 
tax laid by the provincial authorities on goods in 
transit from one province to another and some- 
times from places even entirely within the same 
province. The tax varies greatly in different dis- 
tricts and is arbitrarily determined by the governor 
quite independent of the central government. Its 
imposition is a fruitful source of income for the 
expenses of the tuchuns (military governors) in 
maintaining large mercenary armies which enable 
them to carry on private wars for their own ag- 

The abolition of this duty would enormously 
facilitate the transaction of business in the interior 
of the country, even if it were not accompanied by 
the grant to foreigners of the right to trade outside 



From the Plebs "Outline of Economic Geography" 

Political Map of Pacific 

The arrows indicate the "gateways" from the Indian and 
Atlantic oceans. All shipping must pass thru these "gatev. 
The map brings out the strategic importance of the Ui 

States control of the Panama canal and of the Philip 




the treaty ports, to which they are at present re- 
stricted. As a matter of fact, the removal of the 
tax will become increasingly necessary from the 
standpoint of the Chinese themselves if they are 
to achieve a real national unity. Their industries 
cannot prosper so long as these interruptions exist 
to the logical channels of commerce. The growth 
of capitalism will burst asunder all such fetters on 
the productive energy of the nation, just as the 
commercial class after our own revolutionary war 
Found the restrictive tendencies of the various 
loosely federated colonies a bar to economic prog- 
ress and set in action forces which destroyed local 
prerogatives in favor of a strong central govern- 

Great Britain Once Willing. 

Great Britain, in the Mackay treaty of 1902, had 
agreed to an increase of the Chinese customs duties 
by 2y 2 per cent, with a surtax of 5 per cent pro- 
vided the likin were abolished. This would make 
the maximum rate 12% per cent in place of the 
present 5 per cent. Subsequent Chinese treat- 
ies with the United States and Japan ratified this 
arrangement, but it was never put into effect be- 
cause the other Treaty Powers took no action and 
China allowed the likin to remain. It is when a 
concrete situation is presented, like that embodied 
in the calling of such a conference, that the real 
basis for international policies is most clearly dis- 

Why was it that the foreign offices of the na- 
tions involved vacillated in their attitude almost 
from day to day? Of course, the unexpectedly vio- 
lent crisis precipitated by the incidents at Shanghai 
had much to do with these hesitations. The com- 



plicated balance of national interests in the Orieni 
and the extremely unstable condition of world cap 
italism in general contributed still more to this un 

Offensive to England. 

It is hardly doubtful that the first suggestion for 
the holding of such a conference was very of fen 
sive to most of the Powers, and to Great Britain 
in particular. The original suggestion by the 
United States had linked the matter of the custom: i 
with that of extra-territoriality. It was CHna 
which separated the two questions. 

As this division was not made until some time 
after the entire matter had been broached to tin- 
Powers the first reactions emphasized that aspect 
of the proposal which the respective nations found 
most objectionable. Thus Great Britain openly 
stated she had nothing to gain from a conference 
on extraterritoriality. "At this time," declared 
Austen Chamberlain, minister of foreign affairs, 
"our commercial interests in the Orient, and par- 
ticularly China, are too vital to permit the Chinese 
government and courts jurisdiction over British 
subjects and property." 

This attitude reflects the standpoint of the 
"die-hards" who form her settlements in Hong- 
kong and Shanghai. They are for a "strong" pol- 
icy towards the Chinese, the use of British armed 
forces to suppress native opposition. 

The hasty ratification of the Washington 
treaty by France in June, 1925, after delaying for 
over three years, seemed to indicate that she fa- 
vored the proposed conference. Shortly after the 
confirmation, however, high officials of that nation 
asserted it was "not the right time for such a con- 



Terence." On 'July 22 Japan notified the United 
States of her approval, contrary to the general im- 
pression that she would be strongly opposed. 

Another "Investigation." 

The frankly expressed antagonism to the 
American "feeler" led the authorities at Washing- 
ton to tone down their proposition considerably. 
It was officially announced that the idea so far as 
the question of extra-territoriality was involved 
mean merely the setting up of an "investigating" 
committee to "consider" and "report later" 
whether this privDege should be "abolished" and 
to "study" means for its "general elimination." 
Whenever the ruling class desires to postpone ac- 
tion it resorts to "investigation," particularly the 
American ruling class, which is an expert in thus 
dodging decisions. 

Soviet Russia Excluded. 

It is significant that the Soviet Union, the 
boundaries of which adjoin those of China for 
thousands of miles, was invited neither to the 
Washington conference nor its successor at Pe- 
king. Russia, of course, was vitally concerned. 

The capitalist nations were in a peculiar quan- 
dary. Their decisions could not bind the Soviet 
Republic and would in large part be nullified by her 
refusal to approve. They knew the dangers of in- 
viting the Soviets to send representatives — even 
though they did not know whether the invitation 
would have been accepted— for the workers and 
peasants of Russia had repeatedly expressed their 
solidarity with the Chinese. The diplomats were 
between the devil and the deep sea. They chose to 



ignore the Soviet Union but behind their delibern 
tions loomed the huge figure of the Workers' It" 

Broken Promises, as Usual. 

On their part the Chinese had not forgotten tin 
broken promises of the Washington Conferem ■<• 
Great Britain had agreed to restore the leased terrl 
tory of Weihaiwei and France had stated her will- 
ingness "in principle" to restore Kwangchowwan I" 
China upon Japan's return of Kiaochow. Thougll 
the Japanese restored that port in January, 19: 
neither France nor England had so far done any 
thing to make their word good. Nor had the com 
mission been appointed which was to investigal- 
the practicability of steps leading to the abolition 
of extra-territoriality, 

1, Japan and the Conference. 

For Japan the issues considered by the Pekin 
Conference were of transcending importance. Am 
increase in Chinese customs duties are bound to 
effect Japan adversely. One-third of Japan's total 
exports go to China and on the other hand her im 
ports from that country exceed those of any otlmi 
nation. A higher customs tariff will therefore cul 
both ways. 

A more detailed consideration of Japan's trade 
will reveal the stake of her capitalists in the Far 
Eastern conference very clearly. The bulk of hei 
exports to that country as we have seen, consisl: 
of yarns and cotton goods of a cheap grade, easily 
made in the Chinese mills and already being maim 
factured there on a considerable scale. During tl »« • 
past decade there has been an increasingly heavy 



Investment of Japanese capital in China, particular- 
ly in the textile industry. The cheaper and more 
tractable labor and the nearness of the great cotton 
growing regions of the mainland, account, together 
with the struggle of the Japanese working class to 
organize and demand higher wages, for this grow- 
ing tendency to transfer to Shanghai, Tsingtao, and 
other Chinese cities virtually the entire manufacture 
of cotton goods, insofar as competition in supply- 
ing the Chinese market is concerned. Under the 
capitalist system the exploitation of this market is 
an absolute necessity for Japan. This same tend- 
ency for the transference of capital to the main- 
land is going on in the matchmaking and flour in- 
dustries, according to the Japanese press. 

Japan's Precarious Position. 

The worldwide interrelationships of economic 
factors is nowhere so evident as in a situation like 
this. Japan's most important market is the United 
States which takes one-third of her entire exports. 
Raw silk makes up 80 per cent of the total. Yet an 
expert of the Mitsui Kaisha, one of Japan's largest 
corporations, reporting on an exhaustive investiga- 
tion made in 1924 of conditions in Kwangtung prov- 
ince, stated that this single Chinese district could 
produce more mulberry leaves than all Japan. (The 
silkworm feeds exclusively on this leaf). Under 
customs autonomy China would be able to erect a 
protective tariff to develop this industry to the point 
where it would soon drive Japanese silks out of the 
American market. Take from Japan, as one writer 
remarks, the silk exports to the United States and 
the export of cotton goods and yarns to China and 
Japan has nothing much left. 



Enormous Increase of Chinese Trade. 

The enormous importance of her trade wilh 
China is emphasized by its development in reconi 
years. From 1904 to 1918 Japan's share of th| 
direct trade between China and all other natioriM 
increased 714 per cent, more than fourteen time! 
as fast as England's and three times that of Un- 
united States. In 1880 only three per cent of tin- 
China trade was in Japanese hands. The propor- 
tion increased to 11 per cent by 1899 and to 20 por 
cent in 1913. During the World War Japan's sharo 
of the total external commerce of China made u 
huge gain, reaching to a third (35 per cent) of tho 
whole. From 1899 to 1913 the tonnage of Japanese 
steamships engaged in this trade increased five 
times, and has been growing ever since. 

Contributing to the development of this com- 
merce are the thousands of Japanese firms in China. 
Here, too, a tremendous gain is shown. In 1875 
the only Japanese company in China was located 
at Shanghai. By 1899 there were 195 Japaneso 
concerns doing business in that country. In 1917, 
only eighteen years later, this number had jumped 
to 1,269. Last year they owned 29 out of 42 foreign 
banks in China. 

High Chinese Tariff Feared by Japan. 

It will be perfectly natural and logical, as soon 
as customs autonomy is secured, for the rising 
Chinese business class to seek the enactment of a 
high protective tariff under which the native in- 
dustries may be developed. This would be ac- 
complished by the imposition ot high import duties 
on cheap cotton goods and on coal, both of which 
are important articles of Japanese export to China, 


and the imposition, on the other hand, of high ex- 
port duties on iron ores, steel, and raw cotton, which 
constitute the principal Japanese imports from 
China. The policy of conserving raw materials for 
the use of the growing national industries and of 
discouraging imports of commodities which can be 
manufactured at home is bound to determine the 
new tariff. Of all the national capitalist groups 
l.lie Japanese stand to lose most by China's control 
of its own customs. 

A protective Chinese tariff would tremendously 
stimulate the flow of Japanese capital to the main- 
land. Its effect upon the industries in Japan would 
be catastrophic, and certain to produce important 
economic repurcussions in that country. "Japan's 
economic life depends on the free and regular ex- 
change of commodities with China" was reiterated 
again and again in all Japanese discussion of the 
subject. The expert of the Mitsui Kaisha, whom 
we have previously quoted, reached the conclusion 
that the increasing competition of the Chinese 
would force his country to develop into "a highly 
technicalized industrial nation to maintain itself." 
An editorial writer in the Trans-Pacific (September 
9, 1925) stated that the only measures which could 
be taken to meet the growing menace from Chinese 
manufactures "are investments of Japanese capi- 
tal in Chinese industry and the conversion of the 
manufactured products of this country (Japan) 
from cheap articles to those requiring highly skilled 
labor." He added significantly that this was "a 
field which is already well-occupied by the factories 
of the United States and Europe." 




Want Bribe Money Back. 

It was a consideration of these economic fact! 
which caused the Commitee of Enquiry, appoint ^i 
by the Japanese government to formulate recom 
mendations for the guidance of that country's drk 
gates to the Peking Conference, to urge that Chinn 
should not be granted Customs autonomy until thl 
end of a fifteen year period. The proposed in 
crease of 2y 2 per cent in the Chinese tar I ft 
was approved. Both concessions, however, wef| 
to be dependent upon China's carrying out in 
full all the provisions of the Washington Confer 
ence treaties and settling the Nishihara loans 
These latter consist of a series of financial advance: i 
to China during the World War, aggregating !). r », 
000,000 yen. The loan received its title from tlin 
name of the Japanese army lieutenant who acted 
as the "go-between" in the matter. The outstand 
ing interest — no interest has ever been paid- 
amounted in October, 1925, to an additional 36,000,- 
000 yen. The Japanese government has subsidized 
certain banks in order that the interest payment:, 
may be met, on the assumption that the validity of 
the obligation would finally be recognized by China 
The largest part of the loan is unsecured. The N;i 
tionalist movement in China bitterly denounccH 
any effort at the repayment of these advances, char- 
acterizing them as having been in the nature of 
bribe money to hold Tuan Chi-Jui, then premier, to 
a pro-Japanese policy. 

In addition, China was to take no radical step 
which would interfere with the smooth working of 
the present foreign trade apparatus and any statu 
tory tariff she might enact should be "acceptable 
to the Powers." Japan was ready to relinquish 



claims for various indemnities already agreed upon, 
excepting the Boxer indemnity, provided the in- 
creased revenues from the Chinese customs were 
applied upon the unsecured foreign loans. The 
total Japanese loans to China, including certain of 
the Nishihara advances and others with certain 
security, amount to approximately 300,000,000 yen. 

Japan was also willing to agree to an ultimate 
advance in the Chinese customs of an additional 
5 per cent, besides the surtax of 2% per cent, 
making the rate 12% per cent, provided China 
would promise not to allow any further anti- 
Japanese boycotts and would abolish the likin. The 
economic protest against Japan that has swept 
China several times, notably during the latter part 
of the World-War and in the recent Shanghai 
troubles, cost Japanese traders and financiers losses 
mounting into the hundreds of millions of dollars. 

Reverse Recommendations. 

Despite the fact that this advisory committee 
laid such a heavy emphasis upon the allocation of 
increased Chinese revenues to the repayment of un- 
secured Japanese loans, stating that about 60 per 
cent of the total of all unsecured loans to China 
was due to Japanese, it was then asserted by the 
leading government organ that the cabinet had dis- 
carded this recommendation in favor of the Amer- 
ican view that the most important immediate step 
was to straighten out China's internal financial tan- 
gle — in other words, to use the increased revenues 
for the reconstruction of the country's broken- 
down administrative apparatus. However, repre- 
sentatives of the three Japanese banks interested 



in the Nishihara loans accompanied the official del- 
egation to Peking. 

The Japanese representatives at the Custom! 
Conference were headed by Hioki Eki, former chief 
of the Japanese mission which served the infamoun 
"21 Demands" upon China in 1915. Along with 
Mr. Obata, another prominent Japanese diplom.ii 
he was characterized by the Japan Weekly Chron 
icle as "having done more bullying work in respeol 
of China than probably any other diplomatist, liv 
ing or dead." The Osahi, published at Osaka, 
Japan, in an officially inspired article which din 
cussed the report of the Advisory Commission, 
stated that "With reference to China's claim for 
tariff autonomy, an agreement has already been 
■reached between Japan, the United States, and 
Great Britain to object to discussing that question, 
altho they are willing to give their kind considera- 
tion to it. . . . Should China press the participant 
to give her their immediate reply, her request would 
be immediately refused." 

Any Time Will Do. 

On behalf of the Japanese, Hioki presented their 
suggestions at the Peking Conference. He proposed 
that China should follow the example of Japan and 
wait for seventeen years before acquiring full tariff 
autonomy. He explained that the Japanese had re- 
vised their international treaties in 1894, the re- 
vision not to be effective, however, for five years. 
The revisions were then to remain in force an addi- 
tional twelve years. This proposal would have ne- 
cessitated a revision of the Chinese treaties with all 
other Powers, the establishment of special rates for 



certain nations, and the delay of complete Chinese 
control of the Customs until 1942 or later. 

The 2!/2 per cent surtax was to be allowed 
Immediately on all Chinese imports and there was 
to be provision for a graduated tariff during the 
period from the signing of the new treaties to the 
lime when full autonomy would automatically be 
possessed by China. This was limited by the pro- 
vision that "no injury would be done to the com- 
mercial relations of China and the Powers." Spe- 
cial tariffs were to be formulated on certain com- 
modities by direct negotiations between China and 
the Power concerned. The object of this proposi- 
tion was to enable Japan to compel China to grant 
her a low duty on her exports to China of cheap 
cotton goods and yards and other necessities in con- 
Kideration of Japan's retaining her present minimum 
tariff on the cotton and bean-cake, which consti- 
tutes China's chief exports to Japan. 

Why, then, keeping in mind our analysis of the 
menace to Japanese commerce and industry in- 
volved even in a comparatively small increase of 
the Chinese customs — to say nothing of a grant of 
tariff autonomy in the immediate future — did Japan 
yield and concede China control of her Customs on 
January 1, 1929? Before answering that question 
we shall be obliged briefly to survey the basis on 
which rests the Chinese policy of the other Great 
Powers, expressing the interests of their dominant 
capitalist groups. 

2. Great Britain and the Conference. 

Complete tariff autonomy in the hands of the 
( Uiinese is not the same menace to British capital- 
| Ists that it is to Japanese. England's principal ex- 

7 193 


port to China is cotton goods. In contrast to th- 
similar importations from Japan, however, thofl 
from the British Isles are of the finer grades, win. || 
the Chinese mills are not adapted for makim 
There is a growing importation of English machln 
ery. Here again the British need not fear aul.mi 
omy, for with the increasing industrialization QJ 
China there will develop a greater demand for inn 
chinery, so the Chinese duties are bound to be lof 
on such imports for many years. China receivi 
large supplies of cotton yarns from India. Tin 
imports also are not likely to be adversely affected 
because of the enormous and growing demand foi 
woven cotton goods in China. 

During the World-War Great Britain suffeiv.i 
severe losses in her Oriental trade. Prior to 19] 
the British controlled over half of China's entlri 
foreign commerce. By 1917 their proportion had 
dropped to about 40 per cent. The tonnage oi 
British steamers in the China trade decreased 
from 60 per cent of the total in 1880 to 40 per ceill 
in 1913, tho the actual tonnage rose from 15,874,::!. 
tons to 93,334,830 tons, indicating the enormoU 
traffic controlled by England. 

Fast Losing Primacy. 

Shanghai is the greatest commercial center 0| 
the Far East and one of the most important porl 
in the world. In 1864 the British firms were 75 pflj 
cent of all those doing business in that city. <>i 
the foreign banking houses only one was not Brll 
ish. In 1917, out of 7,055 commercial houses oni- 
590 were English. Both the Russians and the Jajj 
anese controlled twice as many. Out of 42 foreign 
owned banks but four were British. These figurM 



show that Great Britain is fast losing her position 
of primacy in Chinese foreign commerce. This fact 
found its inevitable expression in the stand of that 
country at Peking. 

British control of the administration of the 
Customs has been of vast benefit to the commercial 
and financial interests of that country in the Far 
East. The reason, stated the China Weekly Re- 
view (September 19, 1925) is that the Customs 
funds, "prior to their release for payment of obli- 
gations of the Chinese government, have been de- 
posited in British banks." In other words, the Cus- 
toms receipts, most of which are security for the 
payment of foreign loans, are so handled that they 
also furnish the basis for British banking credit, 
resources in China. It is no wonder, consequently, 
that the English financiers are decidedly averse to 
surrendering the control of the tariff administration. 

Interests Predominantly Commercial. 

England's stake in the Orient is predominantly 
commercial, in spite of her territorial possessions, 
such as Hongkong, and the leased areas which she 
holds. As Lord Gosford stated in Parliament last 
summer (1925) in a discussion on British policy in 
the Far East: 

"China is the market of the world which could 
offer an immediate solution for our unemployed 
problem. It can absorb an immense volume of cot- 
Ion goods, steel work, railway material, bridges, 
electric plants, and practically every article which is 
produced in bulk in this country (Britain)." The 
Round Table, organ of English colonial interests, 
declared that "China is the only country in the 
modern world which offers a great and expanding 



market for the products of British industry." (Sep 
tember, 1925). 

3. France and China. 

The direct interests of France in China are verj 
much less than those of Great Britain, Japan, and 
the United States. Her share of Chinese commeio 
is negligible. She has two extremely valuable con 
cessions, those at Shanghai and at Tientsin. Willi 
Czarist Russia she participated in the post Sino 
Japanese war loans which were to finance the hug* 
indemnity and her bankers since then have madfl 
considerable other advances of funds. With Brit 
ish, Japanese, and Czarist Russian groups, shf 
financed the construction of the Chinese Eastern 
Railway, built as a short cut to Vladivostok thru 
Manchuria. That railroad since then has passed 
under the control of Soviet Russia and China, wit!) 
any recognition of financial rights therein by the 
other Powers specifically denied. 

4. The Soviet Union and China. 

The boundaries of Russia and China adjoin for 
thousands of miles. Under the Czar the Russian 
advance towards the Pacific involved intrigueH 
which resulted in the alienation from China of im- 
mensely valuable territories and the predominance 
of Russian power in Manchuria and Mongolia. 
Czarist Russia for a large part of the last century 
exercised a predominant influence in China. Her 
defeat by Japan in 1904-5 destroyed the prestige 
which had so long been hers, but her geographical 
position and natural interests in the Orient made 
her still a factor to be considered in all diplomatic 



The Russian Revolution of October, 1917, re- 
sulted in a great change in the relationships be- 
I ween China and Russia. By the treaty negotiated 
several years ago between the two countries Russia 
surrendered her rights of extra-territoriality and all 
other special privileges granted in the past to her 
nationals. Provision was made for the adjustment 
of Customs duties and trade along the borders and 
an important provision was added regulating the 
administration of the Chinese Eastern Railway, a 
matter to which we referred in discussing the in- 
I erests of France i'n China. As we have seen in the 
section on the Kuo Min Tang, the influence of the 
Soviet Republic on the Chinese masses is growing 

5. The United States and China. 

The United States is admittedly the richest nation 
In the world. From the standpoint of natural re- 
sources, mechanical equipment for their exploita- 
I Ion, 'geographical position, population, and f inan- 
eial standing, it is the most powerful. What policy 
does it pursue in the Far East, and why? What do 
Its capitalists want in China? 

Alone of the Great Powers, outside of Soviet 
Russia, it had not seized nor was it holding Chinese 
territory. It had not participated to any consid- 
erable extent in loans to the Chinese government 
nor had it secured for its citizens any far-reaching 
concessions such as those which had made various 
European nations practically rulers of large por- 
tions of China. American financiers had not yet 
heavily invested in Chinese industry. 

But the trade of the United States with China 
In 1924 reached nearly a quarter billion dollars and 


Reproduced from the "Plebs" 

The Soviet Union and China 

Contrary to the impression of many, Japan is very muoli 

nearer to the vital centers of China than the Soviet TJ 

is, as readers will note by a reference to the scale of miloii 
Besides, the only rail connection between China and SiberlJ 
runs thru Manchuria, which is controlled by Japan. MoQ 
golia is largely desert, with few passable roads. 

Canton, in the extreme south, the strongest center < 
Soviet influence, is faced by bitter enemies on three slat! 
—the British at Hongkong, the Americans at Manila, tUj 
French in Indo-China, and the Japanese in Formosa. 



is growing. Many American business men believe 
the Pacific is to be the great avenue of world com- 
merce, usurping the place so long held by the At- 
lantic. "Westward the course of Empire takes its 
way." The completion of the Panama Canal re- 
moved the greatest obstacle to effective competition 
by this country for the trade of the Orient. It 
brought the eastern part of the United States, its 
great manufacturing section, almost as near China 
as the western coast of Europe had been, so far as 
ease and cheapness of transport was concerned. It 
enormously boomed commerce between the Atlantic 
ports of this country and the Par East. American 
trade with the entire Orient grew by leaps and 
bounds. The World-War breaking out shortly after 
the Canal was finished contributed to this result. 
In the four years from 1913 to 1917 American trade 
with China doubled, aggregating in the latter year 
one-sixth of China's total foreign commerce. In 
I lie period from 1904 to 1918 the United States made 
a gain of 244 per cent in her trade with China. The 
increase, a very large part of which was due to the 
Canal, is shown more graphically in the following 
figures (millions only shown) : 

U. S. exports U. S. imports 

to China. from China. 

1914 $ 37,000,000 f 43,000,000 

1919 117,000,000 154,000,000 

1924 124,000,000 158,000,000 

Interests Chiefly Commercial. 

The interests of the United States in China have 
thus been predominantly commercial. That the 
American traders in Shanghai and Hongkong were 
one with the British in the demand for harsh meas- 
ures of repression against the Chinese during the 



recent trouble and determined to retain all thru 
special privileges was evident from the denuncla 
tion -by the American Association in China, of Sen 
ator Wm. E. Borah's advocacy of the renunciation 
of extra-territoriality. In reply Borah excoriated 
them as "part of the imperialistic combine which 
would oppress and exploit the Chinese people ami 
charge the result of their offense to someone else 1 ' 
"These interests, including the American chamb' I 
of commerce in China," he continued, "are the real 
cause of the trouble," 

On the other hand, curiously enough, the Amei 
ican missionaries — and missionaries in general- 
have been considered by imperialists like Cecil 
Rhodes invaluable adjuncts to "civilizing" the back 
ward people— seemed in general to have supported 
the demand for the abolition of foreign privilege 
The present anomalous situation, they complain <-<i 
hindered the work of "converting the heathen" oil 
account of the un-Christ-like attitude of the "supc 
rior" white race. 

Because of the failure of the last consortium 
(an agreement to negotiate government loans onlj 
thru an association of certain banks represents n 
the great powers except Russia) American finanoi 
capital, aside from minor amounts in industry, hn 
invested little in China. Its interests thus lie 111 
the possibilities of the future rather than in the pro 
tection of the past. 

The increase of the Chinese tariff rati 
would affect United States exports to China ven 
little, for they consist chiefly of machinery, high I \ 
finished steel products, oil, lumber, tobacco, anil 
wheat. The manufactured goods do not encounter" 



Chinese competition and the tobacco and wheat are 
imported only when there is a native shortage. 

The Apparent Paradox. 

This then has been the economic situation of 
the Great Powers in relation to China. In the case 
of Japan, it should be added that her position in 
Manchuria complicates the question of what her 
policies shall be towards the Chinese. The whole 
of Manchuria, as we have already noted, is under- 
laid with coal. Moreover, it is a great wheat-grow- 
ing region. Japan secured a predominating position 
in this province by her defeat of Russia, falling heir 
to such privileges as the Czar had been able to ex- 
tort from China in the preceding decade. Man- 
churia furnishes the Japanese what their country 
badly needs— coal and food. 

In the light of the analysis we have made, it 
would appear that the grant of tariff autonomy to 
China at the Customs Conference last fall with 
comparatively little apparent haggling was an en- 
tirely inexplicable result. It must be remembered, 
however, that international policies are no longer 
determined solely by factors local to any part of 
the world. What determined the capitalist Powers 
to concede the Chinese demand was the general 
trend of events in Europe, and the entirely unex- 
pected Nationalistic outbreak which swept China, 
following the Shanghai troubles, together with the 
tremendous influence acquired by the Soviet gov- 
ernment on the Chinese masses. 

All the evidence shows that a complete change 
of front took place in the American, British, and 
Japanese delegations between the early part of Oc- 
tober when it was officially announced in the Japan- 



ese press that Silas H. Strawn, the American dele 
gate; Hioki Eki, the Japanese delegate, and Sir .1. 
W. R. MacLean, the British delegate, were unanl 
mously resolved to refuse autonomy of the Custom: 
to China, and the opening of the Conference. What, 
then, compelled this new attitude on the part of th« 
three chief delegations? 

Morgan's Hand Revealed. 

The minutes of the consortium of international 
bankers which was originally formed in 1913 to 
handle Chinese finances throws some light on till 
.subject. The minutes of the conference of thin 
group, held October 19, 20 and 21, 1925, at th< 
offices of J. Pierpont Morgan and Company in New 
York, have been made public. They reveal thai 
these financiers were keeping in close touch with 
events in China and with the foreign departments 
of the Powers which serve as their office boys. Tho 
American banks in this combination were repre 
sented by Thomas W. Lamont, of the Morgan firm 
the French banks by R, St. Pierre; the British, by 
C. S. Addis, and the Japanese by H. Kashiwagi. 

The minutes do not openly endorse the demand 
for Customs autonomy. They do infer that the 
international bankers were ready to make far-reach 
ing concessions for the sake of stabilizing condi 
tions in China and calming the Chinese. "Peace in 
China, security of life and property, the removal of 
the sense of grievance, and the renewal of friendly 
relations with foreigners — these are the primary 
conditions for the restoration of trade and industry 
on which depends the development of the reservcH 
of China and in the last analysis, of capacity to dis- 
charge her indebtedness. In other words, guar- 



mitee our opportunities for exploitation and we will 
be your friends! 

We have already noted the Japanese demand 
for applying the increased revenues under a higher 
Chinese tariff to the repayment of unsecured loans, 
particularly the Nishihara advances. Here, as in 
I lie case of the Customs, Japan suffered a decided 
defeat. The Consortium resolved that the question 
Of the unsecured debts "should be submitted to an 
r xpert committee for examination" after "construc- 
tive measures of fiscal reform with suitable safe- 
guards" should have been taken for "adjusting the 
national expenditure to the actual revenues." Thus 
Japan would have to wait for the repayment of her 
unsecured debts until the tangled financial affairs 
Df the Chinese government had been straightened 
out to the satisfaction of the Morgan firm, which, 
of course, is the most powerful of the members of 
I he Consortium. That the international bankers 
were ready to propose some sort of Dawes Plan for 
China is quite evident. 

The influence of the Consortium at the Peking 
Conference displayed itself immediately. Upon its 
opening at the end of October (1925) the Chinese 
delegation, which was numerous and included some 
of the highest officials, proposed that all treaty 
restrictions upon the right of China to set its own 
Customs duties should terminate on January 1, 
l!)29, at which date their own tariff regulations were 
lo become effective. The likin was to be abolished 
liy that time. 

The American delegation, in presenting its po- 
ult ion, approved the grant of tariff autonomy, but 
lidded the condition that at another international 
conference to be held in China on May 1, 1928, rep- 




resentatives of the Powers taking part in the Pekini 
gathering should "decide whether the likin had ben 
abolished" and should then "negotiate any furthfll 
agreements necessary regarding the Treaty's sub 
ject matter." This provision aroused much Chin* 
opposition because it would provide a loophole toi 
denying autonomy the following year on the groun.i 
that technically all the conditions had not been 1'ul 
filled. The American plans provided for increase 
in the tariff during the period until autonomy cam! 
into force as follows: a2y 2 per cent surtax to bfl 
effective February 1, 1926, and a 5 per cent luxui 
surtax, effective not later than July 1, 1925. Boii> 
of these increases were provided for at the Wash 
ington Conference three years before. Threi 
months after the conclusion of the treaty inco] 
porating these measures the Chinese were to haVI 
the right of levying an interim maximum surtax ol 
12y 2 per cent on imports and of 7% Per cent on 
exports, the increased revenue to be held by thl 
Customs Administration. The American propofll 
tion meant little in the way of benefit to the Chi 
nese, especially as it contemplated that the admin 
istration of the somewhat increased income should 
remain under foreign control. On November LI) 
(1925) the suggestions of the United States wen 
adopted by the provisional measures committee ol 
the Customs Conference. Committees were thefl 
appointed to work out detailed plans for puttiiiH 
into effect the surtaxes and to provide for the did 
tribution of the revenues they will bring in. 

To Put Off Action. 

The circumstances attending the calling ol 
the conference and its deliberations, together willi 



a general analysis of the international situation of 
the Great Powers, shows most plainly that the cap- 
italist statesmen want the discussions in the com- 
mittees which were appointed to drag along with- 
out reaching any definite conclusion so far as con- 
ceding in substance the Chinese demands. This is 
confirmed by the announcement that owing to the 
internal wars going on in China nothing more is 
expected of the Customs Conference until this 
spring (1926) and by the indefinite postponement 
of the Conference on extra-territoriality which was 
originally set for December 18 (1925). 

Knotty points remained to be settled by the 
Customs Conference. One of these, that involving 
the establishment of the inland frontiers Customs 
as uniform with those for the Maritime Customs, 
affected the Soviet Union. As we have pointed 
out, the Workers Republic was not represented at 
the Peking meeting and was therefore not bound 
by its decisions. This latter fact complicated the 
work of the Conference, for Soviet Russia has a 
tremendous influence on the masses in China. It 
meant that back of the Chinese delegates there 
stood the 140,000,000 peasants and workers of 
the Soviet Republic, a situation which the hirelings 
of the capitalist Powers had to keep constantly in 

Another difficult problem was the allocation 
of the increased Customs revenues. Japan, as we 
have pointed out, wants to apply them principally 
on the unsecured Chinese loans. These amount to 
approximately $217,000,000. Of this total about 
two-thirds is due Japan. Prance claims 13 per 
cent; Great Britain, 11 per cent, and the United 
States, 10 per cent. Hitherto the Powers have been 



unable to agree on the repayment of .these ad- 
vances, some of which, as the Japanese Nishihara 
loans, were notoriously made for purely military 
purposes and as bribes to corrupt Chinese govern- 
ment officials. The Chinese strenuously object to 
their repayment. 

No Permanent or Just Settlement Under 

It is evident from our study of Capitalism at 
work in China that no permanent or just settlement, 
of any issue is possible which involves the exploi- 
tation of the toiling millions of peasants and work- 
ers, short of a complete overthrow of foreign domi- 
nation and the establishment of a Workers and 
Peasants Republic. Joined in alliance with their 
brothers and sisters of Soviet Russia, they would 
be invincible. 



American Chamber of Commerce in China Flayed. 

In reply to the insistence by the American Association 
in China that the United States back Great Britain's "strong 
arm" methods, Senator Wm. E, Borah, Chairman of the For- 
eign Affairs Committee of the United States Senate, declared, 
in a statement to the American press that this body was "a 
part of the imperialistic combine which would oppress and 
exploit the Chinese people and charge the result of their of- 
fense to someone else." 

"Anyone who is familiar with what has been going on in 
China for the last ten years, and the manner in which for- 
eigners have disregarded and bruited the Chinese interests, 
will have no doubt as to what is the real cause of the trouble 
in China at the present time. 

"So far as I am concerned, they are not going to hide 
the cause of the trouble. These interests, including the 
American Chamber of Commerce in China, are the real cause 
of the'trouble. 

"I venture to say that if the foreign interests in China 
will respect the rights of the Chinese people, and deal with 
them in justice; if they would even give them the rights and 
respect the rights as they were defined in the disarmament 
conference, there would be no trouble in China with foreign 

"In making the former statement I expressed my personal 
views, but I am prepared with the facts to disclose a condi- 
tion of affairs which would be exceedingly distasteful, in my 
opinion, to the American Chamber of Commerce." 

It is extremely significant that since this statement the 
American Association in China has kept its mouth shut. 





China occupies a pivotal position in the world 
wide struggle between Capital and Labor, between 
the highhanded imperialism of the Great Power 
and the aspirations and need for self-expression 
and national independence of the suppressed peo 
\ pies. This is evident from our study of the situu 
tion in the Orient and its bearing upon the intor 
national policies of the United States, Great Brii 
aim, France, Japan and the Soviet Union. Til 
events in China of this past summer have had 
pronounced effect in the Far East upon the" 
countries and the colonial possessions of the Pov. 
ers. From Korea and Japan on the north to Indo 
China and India on the south, the oppressed ma: 
have watched the battle of the workers and pi 
ants of China for freedom and have thrilled win. 
the hope of final victory. 

The success of the Chinese in this coIohhuI 
Struggle means a tremendous impetus to the re 
lutionary movements in all these other AslatM 
lands. That is the reason why Great Britain I 
relentlessly fights against any surrender of 111 
V special privileges in China. Should the 300,000, 1)01 
natives of India follow in the footsteps of tli 
brothers to the north and revolt, the Empire ' ■ • 
which the sun never sets" would receive its do 
thrust. France's dreams of an Oriental kingd 
would vanish into thin air should the opprei 


peoples of Indo-China and Annam similarly rise. 
Japanese imperialism would soon feel the renewed 
strength of the Koreian independence movement 
and her own working class would gain renewed 
courage for the overthrow of the capitalist system 
in Japan, along with those relics of medievalism, 
the Emperor (Son of Heaven), and his royal court. 
In the light of such considerations, the working 
class of the rest of the world cannot adopt a passive 
attitude towards the march of events in the Orient. 
The more intelligent and militant workers, of 
course, realize the overwhelming importance of in- 
ternational labor solidarity as opposed to the na- 
tionalistic patriotism propagated by the capitalist 
class. The great mass, however, is moved into 
action only by the pressure of tremendous forces 
seeming vitally to threaten their safety, thus arous- 
ing the primary instinct of self-preservation. In 
what way, then, can we reinforce our appeal to the 
workers of America so that they will realize the 
stake which they have in this Chinese struggle? 

Menace of Chinese Competition. 

Capital always goes where its income promises 
to be the largest. The fact that there are huge 
sources of raw materials readily available and as 
yet hardly touched in- many parts of China, to- 
gether with a vast supply of cheap and efficient 
labor, is attracting the attention of the world's cap- 
italists. As we have seen, industry is growing fast. 
Provided favorable political conditions can be se- 
cured so as to ensure peace and the suppression 
of the revolutionary working class movement, 
< Uiina is bound to become to an even greater degree 
a "paradise for employers." The defeat of the 



Chinese workers means therefore a tremendous 
increase in the industrial exploitation of that coun- 
try, and the entry of China on the world market aw 
a serious competitor in manufactured goods with 
the other nations. And among those other nation h 
is the United States of America. 

As Efficient as American Workers. 

Let not the workers of this country be de- 
ceived by the fact that this competition has not 
yet become an important factor in our commerce. 
The following views of authorities who are in a 
position to know indicate that the day is close at 
hand when the workers of America will be forced 
in self-defense to align themselves with their broth- 
ers and sisters of the Far East. Henry T. Hodgins, 
Secretary of the National Christian Council of 
China, in, his book "China in the Family of Na- 
tions" (1923) states that while "at present Chinese 
factories cannot turn out much more than supplies 
the local demand, except in one or two special 
lines," still "there is no doubt that this position is 
being rapidly changed. Chinese laborers," he con- 
tinues, "man for man, when given proper condi- 
tions, are not inferior to those of any other coun- 
try. I was told in Shanghai recently that the deli- 
cate work on filaments for electric light bulbs is 
better done by Chinese workers than by American." 

In the May, 1924, issue of Asia, Vera Kelsey, 
in an article on China, declares that "It is not only 
the cheapness but the ability of the Chinese work- 
ers that enable foreign manufacturers to produce 
goods in China for from two to five times less than 
in their own countries, The individual efficiency 
charts of the operatives of one corporation with 



factories in both the United States and China are 
almost the same." 

Charles G. Batchelder, formerly Acting Chief 
Of the Far East Division of the United States De- 
partment of Commerce, points out the reason for 
I lie "large profits possible by employing in facto- 
ries the abundant cheap labor." This consists in 
l lie fact, he says, that "The Chinese have proved 
Id be well adapted to machinery, as they are intel- 
ligent, deft, and do not object to the monotony 
which is so wearing to the American operators of 
machines. In some cases Chinese workmen can 
produce with American machinery goods at one- 
fourth the cost in the United States." 

The economic survey of China by the Ameri- 
can Bankers' Association characterizes the Chinese 
laborer as "remarkably good-natured, patient, in- 
dustrious, able to subsist on comparatively little, 
possess splendid endurance, and under proper train- 
ing and supervision is the equal of the Western 
laborer." In other words, our exploiters rank the 
Chinese worker as the most profitable of all wage 
iilaves. . . . And capital goes where labor is 

The Competition Which Is Coming. 

Hodgkins, in the book to which we have re- 
ferred, predicts a keen competition of Chinese man- 
ufactures based on this low scale with those of 
nl.her countries. "When one considers the scale of 
living and the rate of wages, it is easy to see that 
Chinese manufacturers are certain, as they expand, 
| l,o enter into very keen competition with those of 
Kurope and America. Already American raw cot- 




ton is brot to China, spun into yarn, and reshipped 
to America to be made into piece goods, to be sold 
in many instances in China. If this double trans- 
port is justified by the low cost of Chinese labor, 
it is certain the time is coming when Chinese fac- 
tories will carry the process further and thus cut 
out the intermediate process in America.." 

Changing Courses of World Commerce. 

Another consideration which has a vital bear- 
ing on the direct stake of Western workers in the 
events in the Far East is the fact that the indus- 
trial development of China is changing the courses 
of world-commerce to a marked degree, and will 
in the future continue to do so on a larger scale. 
Baitchelder called attention to this factor in his 
address last summer before the Institute of Pacific 
Relations at Honolulu. He stated that the ten- 
dency is increasing in Japan, India, and China for 
manufacturing locally with European machinery 
such raw materials as silk, rubber, and jute, for- 
merly manufactured in the United States' and 
Europe exclusively. This may well upset the whole 
economic organization of the world, he predicted. 

The Chinese, who formerly got their cotton 
yarn from England, are now using yarn spun in 
India and weaving their own cotton cloth instead 
of importing it from the BritislyMes. "For the 
present," he says, "the tremendous demand in 
India, China, and Japan for their own products 
absorbs most of the local production, but the goods 
of those countries are already penetrating Oceania, 
Malaysia, and Africa, and will soon invade Europe 
and America." 




Part of a World-Wide Struggle. 

The struggle of the workers and. peasants of 
China for freedom is not an isolated phenomenon. 
It is part of the world-wide struggle of their broth- 
ers and sisters in every land to become masters of 
their fate instead of blind instruments of wealtli 
production for the enrichment of a small ruling 

The battle line is now in the colonial coun- 
tries and the subject and weaker nations. North- 
ern Africa flames with the rebellion of the darker 
races. Asia Minor is rocked with revolt. India 
seethes with discontent. Had the exploited people 
sufficient arms the day of the great capitalist em- 
pires had set. 

Nor is all well at the heart itself of these vasl 
kingdoms of modern finance and industry. The 
dictatorship of Capital stands nakedly revealed in 
such a powerful state as Italy, and in the less im- 
portant countries, Spain, Hungary, Bulgaria. 
Greece, and others. Germany sinks more hope- 
lessly year by year. France, utterly bankrupt, must 
soon face the bitter truth. England's unemployed 
mount by the thousands, steadily month after 
month. The balance of trade is increasing again si 

America — the United States — alone remain: 
as the citadel of Capitalism, the last bulwark ol 
oppression and the mighty fortress of which the 
exploiters of the workers are still in full command 
Its credits in the form of international loans bol- 
ster up the topsy-turvy finances of the European 
governments and its financiers conspire with the 
Mussolinis and the Horthys to silence the revolt ol 
Labor by courtmartials, by wholesale hangings, and 



the revival of the most infamous tortures of the 
Spanish Inquisition. 

Opposed to the imperialist nations which em- 
body the capitalist system stands the Union of 
Soviet Republics — the embodiment of the new social 
order! The Workers State raises aloft the standard 
of the world solidarity of the toiling masses of every 
country, regardless of color, race, or nationality. . 

Support the Chinese Workers. 

This situation in China affords a wonderful 
opportunity to arouse the international class con- 
sciousness of the workers and must therefore be 
utilized to the utmost. The Communists accord- 
ingly call on the toilers of every nation, of all races, 
l.o rally unitedly behind the Chinese workers in 
their struggle to overthrow their imperialist mas- 

A most important task is the molding of labor 
Bentiment for this purpose. Particularly. must the 
organized labor movement be educated to an un- 
derstanding of the issues involved. Continuous 
pressure will have to be exerted on the capitalist 
governments to prevent the use of their resources 
lo crush the revolutionary movement of the Orient. 
The strongest measures will undoubtedly have to 
be undertaken, for, as we have pointed out, the 
very life of the capitalist system is at stake. If the 
peat imperialist Powers attempt to intervene with 
military forces then the transportation agencies on 
| which they depend for their supplies must be tied 
Up, and such other means adopted as will prevent 
I another slaughter like the last World-War. The 
J Hlogan of the militant worker of evejynation must 



be: "Not a cent, not a gun, not a man, for im 
perialistic adventures!" 

Under the Red Flag. 

Under the red banner of international Coin 
munism, directed and inspired by the Communis 
International, the oppressed and exploited peopln. 
of the Far East are taking their place with thell 
comrades and fellow-workers of the rest of AhIh. 
of Africa, of Europe, of Australia, and the tWfl 
Americas, marching all together to battle for till 
overthrow of the hated capitalist system and II 
replacement by a world-union of Soviet Republic 






From the 

Railways of Northern China and Siborf 

This map shows how the possession of railways dominatoH 
life of a country. The Trans-Siberian Railway, under the/ control 
Soviet Union, connects with the Chinese Eastern at Chita. Thi 
Eastern, under the treaty between the Soviets and China, In ntnl 
control of a committee representing the joint interests of thl i 
tries Prom Harbin the railroad south to Mukden, with bran«B 
that point into Korea, Port Arthur, and Peking, is under the i 
of the Japanese. 


The treaty negotiated between the Union of So- 
viet Republics and China in 1924 is a landmark in 
f he history of the relationships between the Chinese 
and other nations. For the first time China was 
recognized as an equal with the Great Powers. 

In order to show the sincerity of her friendship 
for the struggling masses of China, Russia surren- 
dered all the 'special privileges, including the territo- 
rial concessions, and the millions then due on the 
Boxer indemnity. All treaties or other agreements 
of any kind between Russia and China, or between 
Russia and any other nation concerning China, 
which affected the sovereign rights of China, were 
declared void. All property in China belonging to 
the former Russian government was restored to the 
Soviets. Each government promised that it would 
not engage in "propaganda directed against the po- 
litical and social systems" of the other nor permit 
the "existence and or activities of any organization 
or group whose aim is to struggle by acts of violence 
against the Government" of the other. 

The rights of the Chinese people involved in the 
treaty and thus accorded specific recognition are, as 
K. K. Kawakami, American correspondent of the 
Tokio Nichi Nichi and the Osaka Mainichi, says, 
"those which the Chinese government and people 
have for decades been struggling to recover. The 
political and moral influence of the Peking-Moscow 
rapprochement cannot be overestimated," he con- 
cludes. The predictions he made concerning a de- 
cided change in the Japanese attitude towards both 




Russia and China have since been verified. An im- 
mediate consequence was the recognition of the 
Soviet Government by Japan. 

The Chinese Eastern Railway. 

An important feature of the agreement was the 
provisions regarding the Chinese Eastern Railway. 
This railroad was originally constructed at the end 
of the last century as a result of a concession 
granted by China to the Rus so-Chinese Bank, all 
institution which then represented Russia's financial 
interests in the Orient. The line began at Kaidalovo. 
a junction point with the Trans-Siberian Railway 
twenty miles from Chita, and ended at Vladivostok 
with a branch from Harbin to Port Arthur and 
Dalny. This represented a great saving in distant ' 
" and ease of construction over the original plans foil 
the Trans-Siberian trunk lines, and in addition 
opened up Manchuria to Russian penetration. The 
branch to Port Arthur was taken over by Japan ;i 
a fruit of her victory over Russia, still leaving over 
a thousand (1,088) miles under the control of the 
Chinese Eastern Railway. During the reign of the 
Czar the Chinese rights to the road and their sov 
ereignty over the Province of Manchuria had been 

Outside Powers Excluded. 

The 1924 Treaty restored this railroad to Chi 
nese control. A supplementary agreement provided 
that until China exercised its right to buy back th« 
line with its own money (to guard against its pal 
ing into the hands of an unfriendly nation by be 
coming security for a loan to China) the manage 
ment of the railway should be vested in an Executive 



department comprising three Russians and two Chi- 
nese who have charge of the maintenance of peace 
and order in the territory traversed, and an operat- 
ing department consisting of a Russian director, 
with a Chinese and Russian assistant. The treaty 
specifically excludes all other nations from a voice 
in the administration of the railroad. 

All of the influences which the other Powers 
could muster was used to prevent China's ratifying 
the Treaty. Why? 

The new agreement practically confirmed the 
existing status, with the significant exception that 
men designated by the Soviet Government were to 
replace previous appointees of the Russo-Asiatic 
Bank. In combination with the clauses forbidding 
the harboring of groups conspiring to overthrow 
by violence either government, these provisions de- 
prived the extensive "White" Russian bands of a 
base of operations against the Soviet Government 
and thus led to the breakup of those gangs of cut- 
throats and murderers. 

France in particular objected, claiming that be- 
cause her financiers owned a majority of the shares 
of the Russo-Asiatic Bank, the successor to the 
Russo-Ghinese Bank, they should dictate the policy 
of the railroad. These shares, as a matter of fact, 
had been stolen from the Russian State Bank. Tlie 
Washington Conference of 1922 supported the 
French demands, the United States, Great Britain, 
Japan and Italy signing such a resolution. The 
United States and Japan each" advanced the line 
$5,000,000 during 1918 and 1919 when they were 
trying to overthrow the Soviet Government thru the 
invasion of Siberia from the Pacific. In addition, 
the South Manchurian Railway, a Japanese corpo- 



ration formed to manage that part of the ori; 
road taken over after the Russo-Japanese Win 
claims a debt of several millions. 

Chinese Control of Mongolia. 

The Treaty also recognized the vast territOTJ 
of 'Outer Mongolia as an integral part of China. In 
1912 the Czar had concluded a secret agreement 
with the "Living Buddha," the real ruler then ol 
that area, making the country a virtual dependent 
of Russia. The Chinese protested vigorously with Urn 
final result that a joint protectorate by China and 
Russia was established. The 1923 agreement endnl 
this state of affairs. 

Agreement Most Significant. 

We have gone at length into the provisions of 
this Treaty because it represents a revolution in tho 
relations of other Powers to China and has tlnni 
contributed greatly to the demand for national 
equality which is sweeping this ancient country, and 
because it reveals the Workers and Peasants R<" 
public as the only nation to treat China fairly. Thisi 
arrangement was not a mere coincidence. It hap 
pened because the workers and their peasant allied 
are the only classes in society which have nothing to 
gain by the brutal policies of economic imperialism 
and territorial conquest. 



Charles Dailey, special correspondent in China 
for the Chicago Tribune, in an article in the Novem- 
ber 8, 1925, issue, stated the United States had at 
that time a force of 1,400 soldiers stationed on Chi- 
nese soil, besides its warships in Chinese waters. 
"America maintains at enormous cost a great 
Asiatic fleet, which spends most of its time in Chi- 
nese waters, and also has on active duty in sov- 
ereign Chinese soil a military force under the com- 
mand of a major general, which includes the Fif- 
teenth infantry, with machine gun, howitzer and 
other essential elements; in addition to two battal- 
ions of riflemen, a command and a regimental head- 

"In addition to the 800 soldiers on duty in China 
with headquarters in Tientsin, there are in Peking, 
as a legation guard, two battalions of American ma- 
rines, under the command of a colonel and subject 
to the orders of the American minister. More than 
that, they are subject to the orders of the SENIOR 

'Tn addition to the army of 1,400 men main- 
tained by the United States in China there are at 
the moment sixteen warships, either on the Chinese 
coast or far inland on the great, broad rivers, and 



especially the Yangtze. In the summer the entirw 
Asiatic fleet is in Chinese waters, basing on Chef on. 
on the northern coast of the Shantung peninsula, 
but in the winter the major ships of this powerful 
fleet, which is under the command of Admiral Wil 
Hams, base on Manila. 

"Even this fleet is divided, for there is a per 
manent division of gunboats strung along thfl 
Yangtze under the command of a rear-admiral ami 
known as the Yangtze patrol, in addition to station 
ships at the more important ports, reporting direr i 
to the commander-in-chief. The total number oi 
men required for these ships runs into more than 
2,000, and these are not reckoned with the land 
forces. . . . 

Protecting Standard Oil Exploiters. 

"Chicago is roughly 1,000 miles from the A I 
lantic seabord and St. Louis about a similar dtH 
tance from the Gulf of Mexico. How would Chi 
cagoans or St. Louisans feel if a French warship 
were stationed off Lake Shore Drive or moored in 
the Mississippi near the Bads Bridge for the protec 
tion of French nationals who might run counter 1 1 1 
a traffic cop or be the victim of a holdup man? Yel 
the United States maintains at Ichang, in Szechw;m 
province, 1,000 miles up the Yangtze from Shang 
hai, the gunboat El Cano. The power launch of t In 
El Cano, with a crew and a pair of machine gun 
often goes a full 500 miles further inland for tin 
rescue of a missionary from bandits or for the pro 
tection of a Standard Oil man whose stocks havi 
been seized by ruthless militarists. 

"There are at the present time further Ameri 
can warships stationed in Chinese waters — the flafi 
ship Huron and destroyers Hart and Rizal ;ii 



Shanghai; flagship Isabel and gunboats General 
Alava and Penguin at Hankow, known as the Chi- 
cago of China, 600 miles from the sea; the Asheville 
at Hongkong, Aberanda at Amoy, Sacramento at 
Swatow, and Helena at Canton. The Monocacy is 
at Anhsien, 900 miles inland; the Palos at Luchow, 
also far up the Yangtze; the Villalobos at Changsha' 
800 miles from the sea; the Pigeon at Nanking, 250 
miles inland from Shanghai, and the Pampanga on 
the river beyond Canton. 

"Congress has authorized the construction of 
three additional gunboats in Chinese waters for use 
on the Yangtze. These are not to increase, but to 
replace, obsolete vessels captured from Spain in the 
war of 1898, and their size and draught are so 
slight that if constructed in the United States they 
would have to be dissembled and reassembled after 
reaching China." 

k Dailey makes the categorical statement that 
armed forces were established in China first at the 
request of the missionaries. When their services 
are required even at the present time the majority of 
the requests come from missionaries." 

The War Danger. 

The seriousness of the situation lies in the fact 
as pointed out by him, that while in the United 
States itself only Congress can declare war, in China 
the American admiral in command of the fleet can 
precipitate war, as can also the American Minister 
to that country. Or war may be entered upon thru 
the action of the military head of the Peking lega- 
tion guards, not an American, or the Senior Min- 
ister, a Dutch subject, or, if the Japanese raise their- 
Mimster to an Ambassador, at his orders. 

8 225 



Increase in number by year (Chinese Informa 
tion Bureau, London, 1925) : 

1880 4,000 

1899 17,000 

1913 164,000 

1917 220,485 

(mainly due to Japanese im- 
migration into Manchuria) 

1922 282,491 

of whom 152,848 were Ja- 
panese; 96,727 Russians; 11,- 
855 British; 9,153 Americans. 
Statistics for Shanghai (census 1925). Total 
foreign population 43,251, divided into 

18,901 Japanese 
8,400 Russians, principally White Guard refu 

7,657 British 
1,100 French 
930 Germans 
680 Portuguese 
3,418 Americans, besides 614 residing els< 
where within the Shanghai Consul: ,, 
District. This is the largest American 
colony in point of numbers anywhQfl 
outside of the territorial limits of thl 
United States. 




(Compiled by the British section of the Interna- 
tional Workers' Relief, January, 1926) : 

At Peking— A total Legation Guard of 949 

At Tientsin, including small detachments along 
the Peking-Mukden Railway, to ensure communi- 
cation with the capital: 

British 834 

Americans 955 

French 1,530 

Japanese 400 

Italian 400 

a total of 4,119, besides a force of 1003 British 
Volunteers, including officers, with an equipment of: 
170 machine guns 
9 Stokes mortars 
12 75-mm. guns 
6 80 " 
9 37 " 

In Manchuria the Japanese maintain the 6th 
Division, ostensibly to guard the South Manchurian 
Railway, but in reality occupying the key positions. 




While modern large-scale production take! 
place chiefly in the Treaty Ports and large citioH 
of the coast the interior places, even those of groj.i 
importance and size, may, like Peking, be charac 
terized by a large number of small establishment', 
in which a few workers and apprentices work undei 
the direct supervision of the master. Indeed in the 
majority of cases the owner toils side by side will. 
his employees. 

Rug Industry of Peking. 

Out of the thousands of workshops in Peking 
designated as factories, there are hardly a score 
which are of any consequence. Most of them em 
ploy under 100 workers and are only partly modern 
ized In the rug industry, for example, there were 
in 1920 a total of 354 establishments. Of the nine 
teen of these which were well-known to the public 
the largest employed 200 operatives and 130 ap- 
prentices. The next most important had 100 opt- 
atives and 80 apprentices. The use of a very large 
number of apprentices as compared to skilled 
workers is shown in the fact that the third in size 
hired 300 apprentices to 30 trained weavers. An- 
other place employed five operatives with 70 ap 
prentices and another had but one craftsman to 
31 apprentices. 

The apprentices were from 13 to 20 years old 
and their term ran for three years. They received 
their board and lodging and a meager allowann 



at the end of each year. The operatives were paid 
20 to 30 cents for each kung they finished, being 
required to complete 30 kung a month. (A kung is 
a square foot of rug woven in 90 warps and the 
same number of woofs). This would make a wage 
of $6 to $9 a month and their lodging. 

The simplest rug factory requires a capital of 
less than $100 and is operated by the proprietor 
with a few apprentices in a native shack. 

The rug industry is centered chiefly at Peking 
and Tientsin. Investigations showed that all but 
two of the establishments gave their employees 
one holiday each month. Apprentices were taken 
in from ten to seventeen years of age for a term 
of Sy 2 years. They received no wages in that 

Many of the workers not only receive too small 
wages to cover the increased cost of living but are 
also working under unsanitary conditions. "On the 
average four persons herd together in one small 
room which is poorly ventilated and lighted and in 
which they work, sleep, and eat." On account of 
these intolerable conditions there recently occurred 
the first strike in Peking in the history of that 

Other Industries. 

Other industries in Peking are in the same 
intermediate stage. Out of over 100 cotton mills 
only three have over 100 employees including the 
apprentices. There are innumerable printing plants 
but only two of any size. Of the seven iron works 
the most important had 450 operatives and 170 ap- 
prentices. Only one other had over a hundred 



The making of clossonne ware is an importanl 
business. There was one large factory with 350 worii 
ers. The rest were very small family affairs using 
hand labor only. The manufacture of glassw.n* 
has been known to the Chinese for countless ceil 
turies yet the plants are generally small, using thl 
crudest and most primitive methods. The largei I 
employed 20 craftsmen to 110 apprentices. TWO 
hosiery knitting mills out of the 76 were of any 
size. At that time the four modern flour mills wer« 
closed because the imported flour from mills In 
America was cheaper, an interesting illustration ol' 
the way in which the more efficient highly paid 
labor of our own country, scientifically exploited 
with capitalist control of huge sources of supply, 
can drive out of a native market its own homi 

Child Workers Preferred. 

The largest industrial establishment seems It- 
have been a branch of the Tanhua Match Co. Hero 
over 1,000 were employed. Of these one-half wern 
children engaged in the packing department where 
it was stated they were preferred to adults "noj 
because of the cheapness of their labor but becauso 
of the deftness of their hands." However, the fact 
of their working at less than half what the adultH 
got very evidently played a considerable part in 
their selection. The Sonhoshin Brewery, the only 
Chinese-owned one in northern China, had 270 
operatives and 200 apprentices. The Peking Elec- 
tric Light Company, which employed 290 men, ac- 
corded the best working conditions and wages. ItH 
employees received from $10 to $70 a month with 



their meals. There was a pension for the injured and 
30 per cent of the net profits went to the workers 
as a yearly bonus. 

Tsinan Shows Same Stage. 

Tsinan, another city, shows much the same 
picture tho at a more advanced stage. It has about 40 
industrial establishments, more or less modernized. 
There are nine flour mills employing between 60 
and 120 workers, two match factories having to- 
gether 1500 workers, a large cotton factory with 
3,000 workers and several hairnet establishments 
employing that many more. Other miscellaneous 
factories employ approximately 10,000. 

The ricksha pullers number 10,000 and there 
are 5,000 wheelbarrow men. The streets in Chi- 
nese cities are so narrow that most of the travel 
is on foot or in these primitive contrivances. 
Freight is transported generally in the same fashion. 
• It is estimated there are 30,000 men and wom- 
en in the retail shops and as many more in the 
small shops which produce the articles there sold. 
In addition there are some 70,000 girls and women 
working in their homes in smaller occupational 

Most Oppressive Labor Conditions. 

The factory workday is usually from 11 to 12 
from $2 a month for the unskilled child to $20 for 
a trained man. 

The official report estimates the cost of living 
for a single worker at $7.50 a month and for a 
family of five at $15. Rentals run from 80 cents to 
$3 a month for a room. The low wages compel the 



working class to live in the most crowded quart n: 
under the worst imaginable conditions. Their food 
generally consists of dry unsweetened cakes of 
grain flour, salted vegetables, and a grain gnn-i 
usually of millet. It is supplemented with steamed 
bread, macaroni of wheat, and sometimes a lit lie 
fruit in season. 

Other Victims of the Shameen Massacre. 




A treatise on China, however limited, could 
hardly be complete without some mention of the 
traffic in opium, forced upon the Chinese people by 
the British in the war of 1839. 

Ever since its importation became legalized the 
Chinese government authorities have sought to sup- 
press it. Its ravages have been terrible. It is esti- 
mated that by 1907 there were 25,000,000 addicts. 
The drug had then become so plentiful that even 
the coolies could afford it. Mothers gave it to their 
babies to soothe them. 

The efforts of the Peking authorities were 
for a long period of years nullified by the fact that 
under the right of extraterritoriality the Treaty 
Ports had become havens of refuge for Chinese 
smugglers of the drug. Thus in 1913 when the 
Provincial governors were going so far as to kill 
Chinese farmers who persisted in growing the 
poppy, Sanghai foreign language newspapers, re- 
ferring to the opium traffic there, reported that 
"The merchants are looking forward to a big boom 
in trade, owing to the present satisfactory deliver- 1 
ies — thanks to the Consular authorities of Shang- 
hai, under whose aegis the trade is flourishing at 
the present moment. Recently prices have gone up 
and a strong combination was formed to sell the 
remaining stock under one joint account." 

Their Ounce of Blood. 

An appeal for international aid in suppressing 
the traffic was issued in that same year by the 
Chinese. "The actual cost price," the statement 
reads, "of the stock (of opium) is about seven or 
eight million pounds sterling (approximately $35,- 



000,000). If the world will help us we can raise 
enough to burn it all up and put an end to the 
cursed traffic. . . . There seems no other way (bui 
that of paying) as the traders and hanks demand 

"Today (1913) in Shanghai there is some $80,- 
000,000 to $90,000,000 (Mexican dollars equal to 
about one-half in U. S.) of this black drug. It is 
in a foreign concession where China's laws cannot 
touch it. It can be legally sold in spite of China's 
efforts, in large or small lots to any smuggler wlm 
wishes' to take the chance of getting it into the 
country. One million dollars worth was recently 
sold in Shanghai in three weeks' time, and it iH 
being imported into Foochow, Hankow, and other 
ports because of the Opium Treaty." 

The 1907 Agreement. 

In 1907 England had agreed to reduce the ex- 
portation of opium from India to China by 10 per 
cent annually, the traffic to be ended March 31, 
1917, provided Chinese production was in a like 
measure curtailed. At a huge cost Chinese carried 
out its part of the program. Peasants who refused to 
discontinue poppy growing and merchants who in 
sisted on dealing in the drug were bastinadoed or 
beheaded as an example to the rest. Tens of thou 
sands of little farmers were ruined by the destruc 
tion without compensation of their crops. Mfflionn 
were in agony thru the sudden deprivation of the 
drug. Suicides were innumerable. 

The stricter the enforcement of the Chinese 
laws against the trade, the more profitable it be 
came to smugglers and the greater the prosperity 
of the Treaty Ports which harbored them. At tin 
end of 1916 a combine of wealthy opium dealers 



induced the President of China to extend the agree- 
ment to December 31 of the following year, to per- 
mit them to dispose of their large unsold stock. 
The conference at which the promise was given had 
been secret. When the people heard about this ex- 
tension the popular outcry was so great that the 
agreement was publicly ordered cancelled. In fact 
it was merely pigeonholed. 

The next summer, 1918, another arrangement 
was made whereby the remaining stocks to the 
value of $20,000,000 were to be paid for by a bond 
issue subscribed by British capitalists and the Chi- 
nese government was to take over the rest in be- 
half of a syndicate composed of Peking officials 
and Cantonese opium merchants. The syndicate 
was then to retail the drug to the Chinese people. 
Owing to the prolonged and numerous civil wars 
which have rent China in the last decade and the 
varying policies of the powerful military governors 
of the different provinces the opium question has 
not yet been solved. 

British "Whitewash" Drug Traffic. 

The depths of hypocrisy and avarice to which a 
ruling class can sink in its thirst for profits is illus- 
trated in the official report of the infamous Royal 
British Commission of 1895 on opium. It approved 
the traffic on the ground that "in the present cir- 
cumstances the revenue derived from opium is in- 
dispensable for carrying on with efficiency the gov- 
ernment of India." It refused to recommend the 
sale be stopped, pointing out that the "discontin- 
uance of the export trade in Bengal opium from 
Calcutta to China and elsewhere would inflict a 
very heavy loss in public revenue on the govern- 
ment and the people of India." 



British Still Supplying Opium. 

A year ago, however, the Indian, govemmcni 
experienced a change of heart. Sir W. J. Collinn. 
British delegate to the last International Opium 
Congress (1925) declared that since 1924 "the con 
ception that opium was harmful to the people o\ 
the Burman race" had been accepted. Burma is 
British possession. Nevertheless he reported thai 
the acreage of the poppies from which opium i 
derived had increased in both the Native States and 
British India Proper during the last three yea] 
He estimated the world production at not less than 
2,500 tons yearly, while the world's requiremen In 
for legitimate medical purposes has been various! \ 
estimated at from 5 to 125 tons yearly. 

According to this authority, along with its him 
dreds of missionaries, England thru its Indian Go\ 
ernment annually exports "some thousands 01 
chests, of 140 pounds each, to Singapore, Hon; 
kong, Batavia, Bangkok, as well as to Saigon, Mm 
cao, and Bushire." Thus the British are direct h 
responsible for the doping with this most deadlj 
drug of countless millions in the Par East. A wri I - • ■ 
in The New Republic (1917) estimates the profltl 
on Bengal opium imported into China from 177:'. W 
1906 at over $2,000,000,000. 

Revenue derived from the growth and salo 
Of this poison furnish a substantial part of fin 
Indian Government's income, amounting in 1924 
to 28,870,398 rupees. In Brunei, 18 per cent of 1. 1 ■ ■ 
governmental, income was derived from this sour< ■<• 
in the Federated Malay States, 17 per cent; in thfl 
Straits Settlements^ 45 per cent, and in India, 3 i><i 



Refuse to End Traffic. 

The Opium Conference called by the League of 
Nations, at Geneva, Switzerland, January, 1925, was 
an utter failure because Great Britain and Japan 
would not give up the enormous profits their mer- 
chants have been making in this traffic. Holland, 
France, and Portugal, having large interests also 
in the drug trade, helped to block any effective ac- 
tion. Great Britain and Japan have the principal 
responsibility because they control the markets and 
are the real traffickers of the opium raised in the 
possession of the other Powers. 

More Asiatics die every year from the effects 
of this drug, it was declared by delegates, than 
there were soldiers slain in the World-War. It was 
estimated that nine mlilion men, women and chil- 
dren would be doomed to die in the next two years 
unless the traffic were suppressed. There are over 
90,000 opium dens in the cities of the Far East, 
showing the great extent and profitableness of the 
business. There are over 200 vessels' engaged in 
this trade which constitutes an enormous source of 
revenue for the Oriental steamship lines. Most of the 
ships are owned by English corporations. The. sup- 
pression of the opium traffic would entail a loss of 
$3,000,000,000 annually to poppy growers, and the 
drug manufacturers, distributors, and merchants, 
figured on the basis of wholesale prices, according 
to statistics presented at the Conference. 

Morphia Sales to Drug the Orient. 

Of late years another most deadly drug, mor- 
phia, has added to China's troubles. The British 
and the Japanese chiefly handle this trade. Vast 
quantities of this poison have reached the country 



thru the postal system which Japan compelled 
China to allow her to operate on the continent and 
thru the thousands of Japanese peddlers who travel 
thru China, protected by the rights of extra-terri- 
toriality and the superior military power of their 
country, and often difficult of detection by the 
Chinese authorities because of the similarity of 
physical appearance. The revelation that the Jap- 
anese government derived a direct revenue from 
the traffic has compelled that government officially 
to divorce itself from the business. 

The medical dose is from % to % a grain. Yet 
the British exports of morphia have increased of 
late to an enormous amount, pointing to its sub- 
stitution in many cases for the previously used 

"Everyone at all acquainted with the history of the En- 
glish in Asia knows that the highest authorities in China have 
always strenuously opposed the opium traffic and that until 
forced they never sanctioned its admission into the country. 
The trade was contraband up to 1862, and the opium used to 
run the gauntlet of the Chinese customs boats up the Canton 
River in defiance of all national rights. Englishmen gloried 
in the iniquitous defiance of law and of course made colossal 
fortunes in the trade, perhaps about the most ill-gotten gold 
that Englishmen ever pocketed. We not only defied the laws 
by carrying on this traffic, but we corrupted Chinese officials 
and weakened the internal administration of the empire 
(China was then an empire — Editor) by heavy bribes which 
we either paid their officials or were content that "they should 
exact."-^Alexander Johnstone Wilson, in his "The Resourcefl 
of Modern Countries," printed in London, 1878. 


Most prominent of the" leaders of the Kuominchun or na- 
tionalist armies, the military arm of the Kuo Min Tang. Dur- 
ing the civil wars of 1925 and the winter of 1926 his troops 
controlled Peking, and the northwest part of China in general. 






Sir Frederick Lugard, one of England's greatest 
Empire builders, wrote the following in 1905 in 
eulogizing the part played consciously or uncon 
sciously by missionaries in preparing the way for 
capitalist development of the most backward sec- 
tions of the earth. What was true of their work 
in Africa is equally applicable to similar efforts in 

"There is one agency which has done more, 
perhaps, than any other for the development of 
British possessions. That is the pioneer work of 
the missionaries — of such men as Livingstone and 
Moffatt: I put aside the spiritual aspect of such 
work, and am now looking at its economic advan- 
tages to a State. 

"Missionaries are usually active agents in 
teaching industrial work among the natives and in 
creating within them new habits and desires, all ol 
which tend to the increase of commerce. In mis 
sionary enterprises of today the necessity of teach 
ing the native some industry whereby he can obtain 
his living after conversion, is more and more recoi; 


"I feel convinced that that Government is wise 
that will foster and encourage missionary effort for 
the sake, not only of spiritual advantages, but also 
of temporal. Mr. Rhodes (Cecil Rhodes, the greal 
agent of British imperialism in South Africa- 
Editor) gave free access to missionaries of all deno- 
minations into Nashowaland when that countrj 
was first taken over by the Chartered Company and 
thereby I consider he showed his wisdom 



Shanghai, China. 

Dear Hank:— Just before the battle, fellah I'll 
write you a few lines from Shanghai-Li'l 'oie 
Shanghai, where we spend the morning designing 
bridges, the noon fighting booze in the Astor House 
bar and the afternoons and evenings shooting 
blood-thirsty Chinese. Yeah, even the wildest of 
us soon get tired of war, and even the most cold- 
blooded of us soon tire of seeing the streets gorv 
and veritable shambles. y 

I told you some time ago that I had joined the 
Shanghai Royal Police, didn't I? Well the after 
noon of the outbreak here I was Called out— and 
arrived in front of the Louza Barracks, to which I 
am assigned, just after the shooting— in fact I 
was within a block of the gate fighting my way 
thru the mob and getting stoned doing it, when the 
volleys were fired. Eight blown apart, four dying 
within the very gate, and any number lying dvine 
and wounded in the street. 

Street Slippery with Blood. 

The police were wholly justified in shooting 
into the mob, for many of the raving maniacs were 
already within the gate, and the main police arsenal 
and defense of Shanghai was in danger of falling 
Blood was splashed eight feet high on the gate, and 
the street was really slippery with blood. The first 
ones killed were fairly blown to little bits by the 
Colt 45's we are armed with. 



Imagine three white policemen, with a half 
dozen sfkhs and a dozen faithful Chinese police, 
nghtog single handed against a mob of five or more 
thousand enraged Chinese and ^deut^ghtog 
until their uniforms were torn to shreds, their faces 
torn by long nails, bloody and battered, fighting 
for three solid hours, slowly giving way until with 
backs against the last defense they shot into the 
solid mass of bodies. _ 

Can you imagine any of onr police force , in the 
States fighting against a crazy moh .which they 
knew was out to murder and loot, fight for three 
hours and then only open fire when the very arsenal 
was invaded? 

Soft Nosed Bullets. 
I arrived on the scene, and with the newly 
arrivinr P olice and civilians and soldiers helped to 
Sr^mf^nd ammunitions to the dJ^^J 
— huse supplies of pistol ammunition to each man, 
Ww riot dubs, lead loaded, Enfield rifles with sol. 
nos7b™lets that spread. Before nightfall every 
able bodied man in Shanghai was preparing to 
his stuff— and within one hour after the slaugh 1.. 
"za Barracks, long ^"^f"^ ' 
tion had heard of the uprising, the streets we! 
packed with foaming, frenzied Chinese. 

And so, in order to maintain — ^ 
with the residential districts we had to clear 

n „* +i 10 nripnt" of the mobs; and roi 

"Broadway of the Orient o> uic 1in lucta 

three hours we poor cops who had been unhu 

:i'S>,-:~rj-"s.=. i 



truncheons of the Royal Irish Constabulary (heavy, 
and unbreakable). 

Imperialist Bone Breakers. 

I had already broken two of the "old issue," and 
was damn glad to get a hold of the "new issue," 
held in reserve for just such as this. We broke 
scores of collar bones, fractured a dozen or more 
skulls, broke one Chinese back, and ruined faces, 
broke noses and arms and legs. 

Never in my life have I been so brutal, 
so utterly given over to the lust for blood 
as I was that day, unless it be on the many 
fights since then these past two weeks. 

Hank, it may seem incredible to you, eighteen 
white men fighting a mob of ten thousand hand to 
hand, but I ask you only to come out here, to see 
the Chinese, to live here awhile and realize that 
with the foreigner here it is "get in the first blow 
make it final, or perish with wife and children." 
Extreme means are necessary in dealing with a 
Chinese mob-^shoot first and talk later, or, else you 
go "Up the Bubbling Well." Only that morning 
we had been carrying on the works of peace — and 
this afternoon we were armed for a long campaign, 
had killed ten Chinese, crippled many for life, and 
had spilled blood all over Nanking Road— to protect 
our interest, the city we had built, the' system and 
order we had produced, against the looting, crazy 
mob of Chinese. Well, when we were about to open 
lire again, and this time to perhaps kill hundreds, 
two of our armored cars arrived, each with 1 inch 
Bteel walls, turrets, and machine guns mounted like 
In tanks — and these cars drove full speed into the 



Christians at Work. 

The injury was appalling, two crushed to 
death their guts spurting all over the street, broken 
legs ribs, and battered bodies caused by the mad 
rush for safety. And the street cleared, and the 
motor cars of the foreigner were able to pass, the 
large majority of the occupants rode up unaware 
of the trouble— and Anally driving off madly to arm 
themselves, and once more gird their loins, forgrt 
their work, don their uniforms and venture forth 
to protect their homes. In. a way it's like the de 
velopment of the west, the Indian warfare. 

All night long we patroled, in groups of fom 
or five, now and then fired upon by hidden snipers, 
now and then the target for well-placed housr 
bricks thrown by hidden devils. We dared not 
into the Chinese quarters, for sudden death lay the- 
—at least we had orders not to venture -into 11- 
quarter. During the next few days I had repeated l 3 
gone there, with a dozen or so Sikhs each time 
and each time, when deep in the heart of the Chi 
nese quarter, was attacked in force and had to 
shoot it out. Total darkness, only the flash of thi 
enemy guns, only the shouts of the Chinese to fln 
at Well, to get back to chronological order, dawn 
came and found us nervous wrecks with worry and 
thinking. What was coming next? No man knew 

Preparatory Disarming. 

And at the first streak of dawn the heathen 
devils emerged from their foul dens, and soon tin 
streets were fairly reeking with Chinese, sum. 
armed with knives, some with clubs, some wll 
scythes, but none with arms— because due to <>.,. 
raids carried on all the time, summer and wmi< > 



no arms were to be had by the Chinese that we 
hadn't seized already. And, once again we had to 
fire into the mob. We first played fire hoses on 
them, but to no effect, which thus demonstrated 
the temper of the Chinese. For ordinarily, the only 
thing that is able to drive a Chinese off the street 
is rain--and, soaked to the skin, these devils bom- 
barded us with house bricks. I was cut badly about 
the head, my uniform torn off my back by a scythe 
just missing my skin— so I killed the devil and the 
dirty work began. I wasn't the first one to fire for 
the firemen were knocked out by bricks and had to 
quit, and the first to open up the ball was the Lewis 
gun outfit. 

The slaughter was pretty, seven at the 
first session, with the usual street full of 
heathens crawling on all fours, bleeding 
and screaming, and the usual street full 
of gore. 

The devils at the far end of the street had stop- 
ped a tram car, poured oil all over it, pulled out the 
white people, women and children, and stripped one 
English girl naked. And, some day, when I can 
speak to you, Hank, I'll give you the story of what 
was done to the Chinese present who were sur- 
rounded in one mob by us, while they were parad- 
ing this poor woman down the street to the laughter 
of their comrades. 

Some day I'll tell you things, things 
that aren't written in history, nor pub- 
lished in papers, and are not talked about 
in police barracks. And, I put you on your 
honor not to let this stuff get out. Talk if 
you want to, mention not my name, but 
show this not to a soul. Honor. 



I'll never to my dying day forget the burning 
tramcar, the screaming children, the moaning 
shamed woman, the raving, screeching Chinese— 
and the terrible retribution that overtook them sud- 
denly and quietly. And I feel proud of the fact, in 
view of what sights I've seen, that I took part in it. 
Every so often these filthy devils need 
a regular wholesale slaughter brought 
home to them, a looting and raping, a tor- 
turing and murdering like the allied armies 
brought home to them at the relief of the 
legations in the Boxer. 

Every generation needs to be taught its respect 
for the foreigners, needs to appreciate the fact that 
violence cannot be done the white man or woman 
without punishment and manifold. Without that 
teaching the foreigner must needs pack up and 
leave, or remain and see his wife violated in some 
anti-foreign uprising such as this. 

Teaching Another Generation. 

So, having in mind the awful slaughter of for- 
eigners' here in 1905, we descended suddenly and 
with violence, attempting to nip it in the bud. But 
these last two weeks we've been nipping, and to 
date, after 16 solid days of fighting and policing 
and shooting, the situation is as bad as ever. 

For one week I went without sleep, without 
seeing a bed, without washing, and what little cat- 
naps I got were never of more than an hour's dura- 
tion in eight, and soon broken by some sudden 
alarm. And later, even our catnaps were broken 
by sniping into our barracks by snipers posted in 
high points, who fled when we stormed these points. 
The question on all tongues, heard and speculated 



on all hands, was "When will the 'Awkins arrive. 
When will the Huron and the gobs arrive? When 
will the Loyal Irish regiment come from Hong- 
kong? Will they arrive in time?" 

Sailors Bring Fear of God. 

And, let me tell you, Hank, the prettiest sight 
I've seen was the first landing party of British sail- 
ors, in full war kit, marching thru the massive iron 
gate of our Louza Fort, to take over some of our 
work and put the fear of God into the heathens that 
we hadn't sent west. Yet, they arrived even too 
late, and let me tell you about the worse fight of 
the uprising: 

I'll skip over the shooting I had gotten into in 
the Chinese quarter while posting martial law proc- 
lamations. I had a squad of these fine, husky Sikhs, 
of the British army, with me, and was posting proc- 
lamations of martial law in the heart of the worst 
district in Shanghai. We got into a tight mess, 
had over five thousand crazy rioters surrounding 
us, and throwing stones at us. 

Bayonet Work of Sikhs. 

The Sikhs took at the mob with bayonets, I 
commanded them not to fire, but to stick the ring- 
leaders. We beat five up badly, one with a fractured 
skull. And, to avoid shooting and therefore more 
diplomatic complications, we broke into a tea house 
and barricaded ourselves. The mob broke into the 
rear, and we had to shoot to defend ourselves. But 
we killed none, wounding only a few — never stayed 
to count them. 

Then, far in the distance we heard firing, many 
rifles and machine guns in action. And, in order 



to be where we were needed, we beat a retreat, 
heading to the scene of action. And as we went 
up the wide paved street, into which we debauched 
we were greeted by a storm of bullets, hundreds 
of them, whizzing all about us. We stuck close to 
the house walls, and went on the double. At the 
most well-known corner of the Far East, at an 
intersection where the finest silversmith shops, and 
finest diamond merchants' shops are; and where 
the largest amusement house in the Orient is 
located, a fierce gun battle was going on. 

Up the street was charging a company 
of Scottish, and two troops of American 
cavalry; and three armored cars were 
slowly driving up the street, bullets splash- 
ing all over their thick armour, their Lewis 
guns playing on the mobs and raising 

From the windows of the amusement house, 
the New World, came a heavy rifle fire, while from 
the windows of one of my buildings under construc- 
tion came the fire of several automatic rifles. My 
Sikhs disappeared, going into a small house from 
whcih several Chinese were shooting— and the 
shooting soon stopped. 

A Crack Shot. 

I went into another house where Chinese were 
sniping, and we soon killed the snipers at their 
posts, and took over their positions— myself, an- 
other cop and a man who later turned out to be 
one of the best shots in Shanghai. Two hard look- 
ing coolies emerged from the back entrance of one 
of the storm centers and started to make their get- 
away, but this crack shot put a bullet in the eye 



of one of them, and shot the other thru the head- 
all m a twinkling. 

For two hours we fired on the storm centers 
and at dusk we mopped up. I, because I knew the 
Nmgpo GmM from basemem to wag & the 

the structure-which I had designed. It was my 

uck to go up the back stairs, with a hard crowd of 

landed gobs from one of the permanent patrol in 

roo^hff^ ^ heelS ' S °' When we ** to the 
roof the fun was over; for the other party storm- 
ing the first floor and then going up the front way 
had caught plenty redhanded, and blown them to 
smithereens while yet they worked their guns. 
And, of import and with a meaning 
only to be grasped out here where it means 
something close, many of the snipers were 
Reds, Soviet agents. Russians, Reds who 
had supplied these Chinese with arms and 
the egging on to loot, to rise. But, along 
with what few Chinese we caught they 
were sent west. 

And, as darkness fell, the streets cleared where 
troops were sent, and an ominous feeling pervaded 
us all—we awaited only dawn, prayed for rain to 
drive these heathens in doors. But no rain came 
and instead only renewed local sniping, sudden out- 
burst m unexpected quarters on unprotected women 
and men, sudden attacks on armed isolated patrols. 

The Genteral Strike. 

A general strike had been called at the verv 
outset, and servants and clerks, laborers, and sea- 
men, wheelbarrow men and coolies, all walked out 
But, even tho the servants at all the hotels walked 
out at the first sign of trouble, the boys at the 



American club stayed, stayed all thru the fightin 
and the trouble, faithful to the end. 

Jack and I lined up our boys when the 
general strike was called, and told them 
that if they dared to go outside except for 
food or on orders, they would be followed 
and beaten to insensibility. 

And, only because they had worked for Korii 
for five years, and had been into every part of 
China with him, they stayed — nor did they once go 

At first, the feeling of impending death gave 
me a queer sensation in the stomach; and you can 
fully realize it, for it's not that feeling when a man 
is hot, is in a battle like on the front, but it is thai 
feeling out here of being shot from behind, being 
killed while walking down the street late at night, 
shot from some rabbit-warren by some coolie who 
is worth, life value, little more than a dollar Mex. 
But one soon grows used to even the greatest of 
dangers, and I now go places alone, or with another 
man, where I know that sudden death might any 
moment light on me. And I've broken into the 
foulest dens, filled with foaming agitators and anti- 
foreign organizers, with drawn gun, and without 
firing a shot, any of our raiders, taken into custody 
the whole mob— but not without a cruel bloody 
beating of each. 

A Soft Side. 

I've seen China in its worst, and I've seen 
places during this trouble, that never before has 
white face been seen. I've lived, really lived; but 
I don't want to die yet. Dolly, the misses, is in the 
hospital being operated on for appendicitus, very 



low; and I'm crazy with the worry of it. Boy, boy, 
I wish you could see the little girl. Sweet as an old 
etching, and as good-natured a little black-eyed 
devil as a man could wish for. And, Hank, I'm the 
first beau, and the last, that she ever had — first one 
to kiss her. 

A four day romance and she returned to Hong- 
kong with the Tiffany stamp on her finger; then 
she got lonesome, for she's alone in the world and 
had been all her life in the convent at Hongkong. 
So, a cable to me, I sent an answer — and here she 
is, the queen -of the Smith roost, Mrs. Smith, if you 
please. Yeah, we all splice up sooner or later. She 
worked night and day during this trouble, and broke 
down the other day. Tonight — aw hell! 

I got to change the subject, or stop where I 

No Man Knows. 

Some day, Hank, I'll tell you all about this 
trouble — and it may be that I may have lots more 
to tell you about it. For it's not over yet. The 
crisis hasn't come yet, the country is rising, and 
not a man here knows or pretends to know what 
the future may bring. 

My outfit has been in touch with the 
men who are all-powerful here; even as 
my outfit is all-powerful in finances here. 
Only the other night I met the man who 
is considered advisor to the most powerful 
man today in China, Baker, American, 
advisor to Marshal Chan Tso-lin — and his- 
tory is based on what his decision is, and 
I, poor I, had the honor of sitting in the 
American Club bar and airing my version 



of the situation with him. Shanghai is sur- 
rounded by Chinese troops, and whether 
they are friendly or hostile no man really 
can say. 

I wish some of the Chicago police could come 
out here in peace time; believe me they'd see serv- 
ice that they never would see in a lifetime bacK 
Home. They'd get in on nearly nightly raids m 
quarters where to breathe deeply means probable 
suffocation, and in rabbit-warrens where human 
beings living in the most disgusting and foul cir- 
cumstances, manage to eke out a bare existence, 
just one short jump from starvation. 

The Imperialist Moralizes. 

They'd see dens and dives, where the foulest 
of practices are daily rites, where small boys are 
used for immoral purposes, and where pr ettj 'little 
Sing-song girls are sold into slavery, where babies 
are sold ly their mothers, for a few coppers cash 
They'd see China, the China that the tourist and 
the longtime resident never sees, the China seen 
by the police only. 

This country is fairly seething, and 
whether the fires of wrath and unrest are 
finally quenched or die out, or whether 
they are unwittingly allowed by the wrang- 
ling foreign governments (our own being 
the most responsible, yet the most vacillat- 
ing out here) to grow, and feed upon the 
millions here and upon the foreigners until 
another bloody Boxer arises— upon this 
present day state of affairs, upon the atti- 
tude of the powers in enforcing order even 
at the point of the bayonet and at the 



mouth of the machine gun, depends really 

the future of the world. 

For, let but China arise, let her once become 
Bolshevik, and straightway the course of history 
will change, and soon the greatest war since the 
beginning of time will be fought out here. I speak 
of Asia, and not of the Chinese as fighters. I fully 
believe that the next war will be fought out here, 
out here in this maelstrom of racial hatred, this 
fiery region where Jap, and Chino, Russki and Mon- 
golian, all hate each other — and are united against 
the "foreigner." 

Slaughter House Diplomacy. 

The worst kind of a policy toward China would 
be for a conciliatory policy, in view of the lessons 
we should have learned from the Boxer. It took 
only three days for the Boxer to descend upon the 
legations in Peking, four days from the first sign 
of unrest and the legations were fighting for dear 
life, and they fought for three months until the 
allies rescued them. 

The looting of Peking, the raping of 
Chinese women, the bloody slaughter of 
men, women and children when the armies 
were turned loose after the relief, has kept 
China quiet these years — and now the 
younger generation, not remembering 
the Boxer reprisals, is rising again, in fact, 
has arisen. 

Up country the foreigners are fleeing for their 
lives. Even as I write my friend of the China press 
tells me that at Kuling 600 missionaries are ma- 
rooned, helpless, and surrounded by hostile Chinese 
looters — and the Japanese and American destroyers 



are speeding madly there in the hope of arriving 
there before it's too late. A toss of the coin- 
shake of the dice box — and either peace or bloody 
war. On one hand we see another Boxer, will* 
wholesale slaughter seldom seen except here In 
China, with reprisals in the ratio of a thousand 1 1 1 
one; or a pacification, a reorganization. 

The government, the sham govern- 
ment, the government in name only, is 
acceding to the vile, crazy, lunatic de- 
mands of the university students — these 
foul little wretches, educated by foreigners, 
and now biting the hands that have fed 
them — and these little devils, half-educat- 
ed, half fanatic, demand that the foreign- 
ers leave China. 

Hank, as an Al, member of the Shanghai Uni- 
versity Club, to which belongs many returned stu- 
dents of our American Club schools, and as an 
employer of students returned and educated here, 
I feel qualified to speak on the traits, the charac- 
teristics of the breed. I utterly and unqualifiedly 
despise the so-called "returned student," the Chi- 
nese educated in America. You probably have sev- 
eral in your class. You probably are chummy with 
them, or at least are friendly with them. 

"Democratic Discipline." 

You know me, Hank, I'm one democratic cuss 
— and you know in what a mood I came here, how 
I thot I'd like the Chinese. The best education for 
the Chinese is this: discipline, teach him, to respect 
his instructors, obey them as we obey our profes- 
sors at home. Discipline in Chinese schools is en- 



tirely unknown, and the students nearly run the 

Then, allow none of them' to go abroad to be 
educated, for in America or England they learn "all 
of the white man's vices and shortcomings, and 
none of his virtues." Such as told me by Old Mister 
Wong, the wise man of North China, head of the 
Kailan Mining administration, who sent his son to 
Yale, spent a quarter of a million on him there, and 
then watched him degenerate to a common coolie 
upon his return here. 

Really Benefit — By Turning Traitor? 

Such things are common here, and the Chinese 
is exceptional, who, upon his return here can keep 
his head above water and really benefit by his learn- 
ing. They land here with a handful of dogmas, 
and a hearty sense of their superority over their 
brothers; they scorn to work, and are cocksure in 
all the damnable senses of the word. They soon 
lose their moral fibre, their sense of proportion, and 
finally end up within a step of where they left off 
when they went abroad. 

The oriental mind is queer — I don't care what 
your medical men say, I have observed the intricate 
ramification and modes of oriental reasoning, and 
I marvel at some of the processes turned out. The 
Chinese mind is subjective; the occidental is ob- 

Degenerate Missionaries. 

And I doubt if there has ever lived a man who 
really understood the Chinese; for such is the influ- 
ence of this country, that when a man lives among 
them for years, cut off from his kind, he ceases to 





be white, as it were, and soon degenerates to a 
being lower than ever a white man elsewhere could 


And, altho he might savvy the Chinese view- 
point, speak their tongue— he is thereupon unfit, 
for use as an analyst. Many of our missionaries 
go native, wear cues, and are little more or less 
than White Chinese. In the interior such are found, 
having lost their occidental ways and really become 
Chinese, living in foul, indescribable dens, and still 
drawing funds from the Altogether-Missed Old 
Maids and Widows. 

Holy Parasites. 

I firmly believe that the missionaries should 
beat it out of China, they do no good, and are para- 
sites in the full sense of the word. The Y. M. C. A. 
is doing good work here— but they also are moiv 
needed in the States, in a white man's country, 
'more than they are here. Hank, use your imagi- 
nation; imagine a foul district in Shanghai, narrow 
streets' in the native quarter, crooked on purpose 
to stop devils, a network of alleys and runways; 
and then imagine yourself being on a raid theiv 
busting into a house in quest of opium. 

You burst in the front door and rush in, yon 
kick in the obstructing- doors and kick the opium 
sodden occupants out of their filthy beds. Deep 
in the interior of the den you bring up in front oi 
a door upon which in big character is written tftfl 
word; ''Wai Kuo Kren," "White Man." 

"Gone (Native." 

You blow your whistle, and when help comm 
you bust in the door, and there, streched on hli 



filthy bed you discern thru the darkness what once 
had been a white man. Sodden and crazed with 
opium, "gone native" and having lost all his foreign 
ways, this wreck lies— gibbering in Chinese hot 
even able to speak his mother tongue. Such, such, 
is what China does to him who weakens and goes 
Chinese. Happily few, few, fall so low; the code 
out here is to jail them and ship them away before 
the chance arises, before they are able to make 
such gloomy, drooling spectacles of themselves. 

Opium? Plenty of it here, in fact seldom do 
I patrol the more dangerous quarters these days 
without smelling incessantly that queer, heavy 
smell, of burning opium. But the supply is com- 
paratively scarce in Shanghai, on account of police 
vigilence. But large, as compared to other cities 
at home. Since this trouble we have swooped down 
on many a large store of opium. 

A Hundred Per Center. 

God grant that we keep the oriental out of our 
fair home country/that we keep this foul wretch 
here, here where he is best fitted to remain. For 
once we let the teeming millions of Asia gain a 
foothold on the American continent, all is lost They 
multiply like rabbits, even more so, and live always 
m the foulest and most revolting of ways. Their 
ways are not ours, and the East and West will 
never, never, never meet— in spite of Japanese prop- 

The Japanese is never more hated by 
Americans in America than he is hated out 
here by British. The hatred is cordial and 
hot, and upon that one ground we meet, 
as we do out here on many others. ' „, 

9 257 


Hank, we Americans out here effect to dislike 
the Ume- we do. But, at the same time we like 
him in spite of the difficulty of meeting him and 
fraternizing. Since this trouble we have met, as it 
were upon a common field, with common aims and 
troubles; and I sincerely apologize for whatever 1 
have said against the breed. The ways of the 
Briton are not our ways. He is hard to approach 
and when once made your friend, much comes out 
that is never dreamt of. 

The Great Dispersion — Of Snobs. 
I've been cut like hell out here, and felt a per- 
fect grievance because of it. But, once I was real- 
ly acquainted with the better natured and finer 
ones I soon found out what a sporting race they 
were' Their lives are bitter, bitter with longing 
for the home country. They are members of the 
great dispersion, forever doomed to spend their lives 
away from their home country. ^ < 

And their ways and habits and thoughts being 
not our ways and thoughts, we naturaly misunder- 
stand them; and they misunderstand us. The po ice 
are ^^11 Ume; and I had a fairly difficult time 
of it at first until the crust was broken. 
An Initiate Snob. 
But I acted natural, swore in American, kidded 
them, took a lot of good-natured trash about wild 
west Indians, and two gun cowboys roaming Broad- 
wav etc and now I number many a difficult bime 
Imong my best friends out here. And this uprising, 
Lwhfch men of many nations fought side b, ^ side 
without thought and without taring about ^ 
traits, land and birthplace, has served to create a 
better feeling out here among us foreigners. 



American destroyers have landed to rescue 
British residents up country; and British gunboats 
have repeatedly rescued American residents since 
this outbreak. The American gobs, I may add, are 
the pride of Shanghai; they took the place by storm 
with their hardboiled ways. 

Shanghai has seem them many times 
before; but never in such a way that the 
banker would unbend to speak to them. 
Now the Taipan, the banker, is in uniform, 
and on duty must needs speak to the gob ; 
and the gob, pulls his wise cracks, spits 
succently and says, maybe, "Fellah, when 
I spit it bounces, get muh?" And the 
banker, now turned soldier, laughs and 
says, "Jolly well said, old deah, jolly well 
turned, y'know?" "Yeah, lad," returns 
the gob, "You said it fellah. What duh 
these Chinks think they are, tough or 

Boy, the Italian sailors, the wops, and the gobs 
have always been the best of friends, going on 
booze parties together; and even the gobs and the 
British bluejacks get along fine here— altho in 
Hongkong, the official fighting place for the two 
breeds, they bust loose and tear the town wide 
open when they meet. 

Usually Not a Proper Animal. 

As is usual in peacetime, the sailor is not con- 
sidered a proper animal to mix with; but now many 
a staid old resident has come, seen, and been con- 
quered. The gobs covered themselves with glory 
no sooner had they landed. I'll tell you about it. 

We raided a certain Dung Dah Medical College 



and kicked all the fairly lousy and filthy imitation 
students out into the streets. Hank, you'd quit 
medicine if you saw this place where Chinese are 
-supposed to study medicine. And the next day our 
patrol was relieved by a company of gobs who were 
to billet there in order to utilize the place as a 
strategic point— it overlooked one of the most 
dangerous points along the border, the Markham 
road bridge. 

Civilization's Messengers, 

No sooner had the gobs arrived than they set 
to work, broke out big holes in the two-foot walls, 
and set up scores of machine guns and a radio 
installation. They sent four men up the approach 
of the bridge, and these men, not knowing just 
where the border was, walked out on the bridge and 
thru a line of about thirty Chinese infantry with 
fixed bayonets. 

These Chinese soldiers tried to stop the wan- 
dering gobs, and one of the Chinese was promptly 
knocked down by the truculent gob in the lead. 
The pals of the Chinese thereupon brought their 
rifles to the ready, and the gobs, with rifles still 
slung, set to work with their fists and broke one 
jaw and several faces. 

Extending the Border. 

The rest of the gobs thereupon came 
running up about twenty strong, and in 
about three seconds the Chinese border 
moved fully two hundred yards from the 
settlement— and there it stays today, for 
the gobs refuse to let a Chinese soldier 
within a hundred yards of the north ap- 



proach, whereupon the south approach is 

really the Chinese foreign border. 

The WiaoChiauPu has lodged a protest with 
the diplomatic body, saying that the foreigner has 
used armed force in infringing upon Chinese soil. 
Hell, and the commandant of the Chinese force also 
lodged a violent, protest with the naval officer, say- 
ing that the gobs made his soldiers run away. No 
fooling, I was there at the time the protest came 
in. In fact I went on a likker party with the naval 
officer in command, he, I and a North China Daily 
News correspondent went into Chinese territory 
where the Chinese soldiers had orders to shoot uni- 
formed and armed foreigners on sight. 

Officers on a "Likker Party." 

I wore civies, but carried my 45 Colt automatic. 
Before the party got far we all were wild and 
wooley, and we kicked down the doors of a row 
of places in which lived a bunch of Soviet agents; 
I had the only gun in the party, so I used it in 
shooting thru the ceiling. The Chinese soldiers 
and police soon appeared, but accidently I shot one 
round thru a window, and they soon disappeared. 

And, left in possession of the neigh- 
borhood and its contents, we raised hell 
until broad daylight. The Soviet agents 
surely caught hell — and one big Russian 
beast, whom we caught in bed with a hand- 
some Russian woman, was given three 
minutes to get out into the street. Boy, 
we were drunk, and all the stored up devil- 
ment of the past two weeks was breaking 
out; and this boy spent two of the three 
minutes in walla- walla, and the last minute 



flying down the nearly vertical stairs, with 

several 45 cal. bullets after him. 

He was later picked up in Shanghai and found 
to be a general in the Soviet Red army, down here 
to stir up anti-foreign feeling. And so, dawn came, 
we returned to the settlement, with no prisoners, 
three hangovers, shattered nerves, and a captured 
Mauser pistol taken off the Russian, also a Soviet 
flag, the same which now decorates the Louza can- 

All China is Aroused! 

Canton is aflame with war; Hongkong is in 
the throes of unrest; Tsingtau is having one hell of 
a time; Peking is in rebellion and the petty, sham 
government there is about to fall; Tsinin is in grave 
danger, and foreigners there are imperiled. All 
China is aroused! And overnight, as usual. 

Our Hankow office turned out in force there, 
and as members of the volunteer units which are 
always maintained and equipped by the British and 
American forces out here, used their Lewis gun in 
the fight there of the other day, in which ten were 
killed and an unknown number wounded and dy- 
ing later. Our Tsinan office is barricaded with the 
rest of the foreigners there with the British consular 
compound, armed and equipped and supplied with 
three months food — awaiting the inevitable fight. 

Going Bolshevik? 

Our Canton office was evacuated the last week 
and the entire female population of the foreign colo- 
ny there has fled to Hongkong for safety, the men 
sticking to fight it out if necessary. An American 
small gunboat there was shelled the other night, 
but soon silenced the fire of the enemy. South 



China is in grave danger of going Bolshevik, altho 
men of experience here have said for years that 
Chj^a would never go Bolshevik. She may not 
accept the dogmas of the Soviet, but she may easily 
accept their anti-foreign prattle, and that only as 
means to an end. The Chinese always were, and 
perhaps always will be, anti-foreign, hating change, 

Tientsin alone of all our offices here in China, 
remains active, not participating in any of the 
trouble — simply because Tientsin is the headquar- 
ters of large bodies of American, Japanese, British, 
and French and Italian troops, kept there as a result 
of the Boxer lesson. 

All Oriental. 

Since the revolution of 1911 China has known 
no stable strong government, always in the throes 
of some inter-provincial war, always in the grip of 
grasping officials — and the Chinese have never been 
a patriotic people, nor will they be. Conditions are 
against patriotism such as we know it ; one hundred 
or more distinct tongues, a million prejudices of one 
provincial people against the other. 

Yet, they are all oriental, have the inertia and 
oriental mind and viewpoint, and consequently may 
act in unison against the hated foreign devil — even 
as they did in 1900. 

The Incomprehensible Native. 

Their demands on the Shanghai consular body 
are funny, preposterous, the products of cruelly 
distorted minds, the product of weak, incapable in- 
tellects. Last winter tens of thousands of Chinese 
refugee^ sought shelter within the international 




settlement from the shells and bayonets of their 
own soldiers; now these self-same refugees are de- 
manding that the foreigner who was willing te : .;lay 
down his life last winter to protect him should give 
up his settlements^ -let it be run by Chinese and 
that he should thereupon become subject to ••Ohi-r 
nese law — which is the worst mess Christ ever 

I, for one, and every other foreigner 
here, lose my temper every time I think of 
the utterly absurd demands made by the 
government, by the students, by the popu- 
lace. They remind me of a bunch of boys, 
of children. And with such thoughts in my 
mind, I set to work upon the slightest 
provocation, to bust Chinese skulls. 
Out here,, where the foreign population is in- 
finitesimal in comparison one must act quickly and 
with force or perish. Swoop down, spare no one 
or perish by the most excruciating of torture. I've 
seen the Chinese Hundred Cuts, I've seen prisoners 
slowly cut to pieces — and I, for one, intend to kill 
my share if it comes to a showdown. I sincerely 
hope it doesn't. Shanghai is perfectly safe, at least 
we can defend it until relief arrives. . 

Japan is only a day's sail from here, 
and help may easily originate there with 
the Japs who are only too glad to come 
here. Then, try to get them out, try, try. 


months, the passive resistance of the Chinese at 
wL'ch they are adepts; and which resistance soon 
drives the foreigner mad and into bloodshed, as has 
happened out here many a time. Write me soon, 
damn it. I haven't gotten a letter from you for 
ages, and I'm wondering what I could have done to 
you to cause your silence. 

Please forget not that I am 

Your best friend and Tsai Chien, 


Author's Note: 

The letter reprinted above came from an American in 
Shanghai. It was written during the time of the General Strike 
there and is reprinted because of the light which it throws 
upon the foreign exploiter's attitude towards the native Chi- 
nese in their own country. 

Driven to Bloodshed by Passivity! 

When next I write, old pal, much may have hap- 
pened, much may have come to pass; perhaps his- 
tory may be written in the next few days. Yet, on 
the other hand, this may drag along for weeks, for 


•j lib 


"The vast development of our industries imperatu. ely 
demands that we shall not only retain and confirm our hold on 
our present markets, but seek constantly, by all honorable 
means, to extend our commercial interests in every practical 
direction."— Former Secretary of State, John Hay, at dinner 
of the New York Chamber of Commerce, I? 01 -, 

"We have got to have foreign trade— it is a necessity. 
Half the wheat raised in this country is sold abroad, about 
half the copper, a very considerable portion of the coal, two- 
fifths of the cotton, and twenty to twenty-five per cent of our 
manufactured products."— Wm. C. Redfield, former Secretary 
of Commerce. (Quoted by James H. Collins, in article m 
Hearsts International, 1924). 

"In order to preserve for ourselves conditions of a well- 
balanced prosperity, foreign markets absorbing our surplus 
production are an imperative necessity,"— Advisory Council, 

United States Federal Reserve Board, (in justifying loan to 
Bank of England, 1925). - - 

"With our exports showing a decreasing percentage of 
raw materials and an increasing percentage of manufactured 
commodities, and our import figures revealing the opposite 
tendency, the significance of Asia as a source of raw materials 
and a market for our manufactured articles needs no em- 
phasis . . • There can be no question as to what it means 
to the United States of America."— Howard T. Lewis, Dean 
of College of Business Administration, University of Wash- 
ington (in American Bankers Ass'n Joitrnal, August, 1925). 


Wu Pei Fu and Chang Tso Lin are 
both military dictators. Wu Pei Fu is 
the agent of Anglo-American imperial- 
ism in China and Chang Tso Lin is the 
representative particularly of the Jap- 
anese. Sun Yat Sen, until his death 
in 1925, was the acknowledged leader 
of the anti-imperialist movement in 
China and is recognized as the great- 
est statesman the country has yet pro-