China S Destiny And Chinese Economic Theory

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China f s destiny

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KAN S AS C ITY , M O . PL) BUG LI BR , AR Y

CHINA'S DESTINY

CH INK'S
DESTINY

&

CHINESE ECONOMIC THEORY

by

CHIANG fKAI-SHEK

With Notes and Commentary
by

PHILIP JAFFE

ROY PUBLISHERS NEW YORK

COPYRIGHT, 1947, BY
OY PUBLISHERS, A.N., NEW YORK

PRINTED AND BOUND IN THE U. S. A. BY
KINGSPORT PRESS, INC., KINGSPORT, TENN.

CONTENTS

PAGE

THE SECRET OF CHINA'S DESTINT n

BY PHILIP JAFFE

CHINA'S DESTINT

BY CHIANG KAI-SHEK

CHAPTER

i. Growth and Development of the Chinese
Nation 29

n. The Origins of National Humiliation and

Sources of the Revolution 44

/. Political, Social, and Cultural Decline in the
Ch'ing [Manchu] Dynasty and Fundamental
Errors of Its Domestic Policy 44

2. The Conclusion of the Unequal Treaties and

the People' s Reaction 5 1

3. Lessons from the Accomplishments and Fail-
ures of the 191 1 Revolution 67

m. The Deepening Effects of the Unequal Trea-
ties 76

/. Their Effects on Government and Law 76

2. Their Effects on Economics 83

3. Their Effects on Society 87

4. Their Effects on Ethics 90

5. Their Effects on Psychology 94

6. National Self-Examination and Self-Criti-

cism

5

CONTENTS

PAGE

i the Northern Expedition to the War of
Resistance 108

1. Reorganization of the Kuomintang and Steps
for Carrying Out the Three People's Prin-
ciples *o8

2. The Success of the Northern Expedition and
Lessons of the Revolution 1 1 6

3. Internal Difficulties and External Perils Fol-
lowing the Transfer of the National Capital

to Nanking 124

4. Internal Effects of the War of Resistance 1 36

5. The International Setting of the War of Re-
sistance An Account of the Military Strat-
egy and Diplomatic Battles before and Dur-
ing the War of Resistance 1 40

v. Contents of the New Equal Treaties and the
Essentials of the Future Work of National Re-
construction 149

1. The Abandonment of the Unequal Treaties

and the Meaning of the New Equal Treaties 149
. Future Direction of the People's Efforts and

Essentials in the Work of Reconstruction 157

vi. Fundamental Problems of Revolutionary Na-
tional Reconstruction 1 83
j. The Problem of Establishing a Philosophy of
Revolution and Reconstruction 183

2. The Problem of Reforming Social and Aca-
demic Traditions 1 90

3. The Problem of Fostering the Concepts of
Freedom and Government by Law 205

vn. The Artery of China's Revolutionary Recon-
struction and the Critical Questions Deter-
mining Her Destiny 2 1 4

CONTENTS 7

CHAPTER PAGE

vm. China's Destiny and the Future of the World 230

Conclusion 236

CHINESE ECONOMIC THEORY

BY CHIANG KAI-SHEK

Introduction 241

i. Definition and Scope of Chinese Economic

Theory 243

n. Differences Between Chinese and Western

Economic Theories 251

i. Economic Theories of Ancient China 251

. Western Economic Theories 259

in. Economic Duties of the State in Ancient

China 264

1. Satisfying the People's Wants 267

2. Restricting the People's Wants 270
5. Protecting the People 273

IV. Economic Principles of the Min Skeng Chu I

The People's Livelihood 277

1. Laissez-faire and Marxism 278

2. Sun Yat-sen's "Industrial Plan" 285

v. China's Future Economic Ideals 289

COMMENTARY ON

CHINA'S DESTINT AND CHINESE

ECONOMIC THEORT 295

BY PHILIP JAFFE

Guide to the Pronunciation of Chinese Names 333

Chronology of Chinese Dynasties 334

Index 337

"THE SECRET OF
CHINA'S DESTINY"

By Philip Jaffe

THE SECRET OF "CHINA'S DESTINY 9

NEARLY fifty years ago, an American Secretary of State
declared that "the world's peace rests with China, and
whoever understands China . . . holds the key to world
politics during the next five centuries." John Hay's appraisal
of China's role in world affairs can be made with even
greater validity today. For the first time in more than a
century, the four hundred and fifty million people of China
have a chance to become real masters of their own destiny.
The renunciation of the "unequal treaties 33 by the United
States and Great Britain in 1942 officially ended China's
humiliating semicolonial status and marked her emergence
as a potential political equal among the other great powers.
But whether China succeeds in converting her hard-won
formal independence into actual freedom from foreign
domination is certain to exercise a profound influence on
the future history of Asia and the world.

It is easy enough to demonstrate that what happens to
China is of vital importance to world peace and prosperity,
but it is not so easy to evaluate the conflicting forces and
contradictory trends in present-day China, or to predict
the path that China will follow in the future. Invariably
certain pertinent questions readily come to mind. How are
we to reconcile the courage and endurance displayed by
the Chinese people during more than eight years of devas-
tating war with the existence in China of one of the most
corrupt governments of modern times? What weight can
we give to that government's claim that it intends to in-
troduce democracy, when in practice it has followed a
policy of bloody suppression of civil liberties and has made
extensive use of secret police and concentration camps to
enforce its system of "thought control?" Can we accept at

ii

12 THE SECRET OF "CHINA'S DESTINY 55

their face value the ambitious plans for China's future in-
dustrial development put forward by the Central Govern-
ment when that same government has shown itself strongly
opposed to the basic agrarian reforms that alone can create
a sound economic foundation for such industrialization?

Admittedly, the situation in China is confusing and com-
plex. For every hopeful and progressive trend, it is possible
to cite an example of extreme reaction and social demorali-
zation. How, then, can we hope to understand China? What
standard or guide shall we use to interpret conflicting reports
of the state of affairs in a country that was our valued ally
in war and that must of necessity play an important role in
the winning of the peace?

One essential key to such understanding is to recognize
that China is a nation in revolution a revolution precipi-
tated more than a century ago by the impact of the West
on China's ancient civilization. The Chinese people fought
an exhausting war for national survival for more than eight
years. But for a far longer period, they have been struggling
to free themselves from the fetters of an outmoded and op-
pressive political and economic system, and to build a sound
foundation for national freedom and economic progress. In
this second phase of their revolution, the people of China
have been opposed not only by the foreign interests that
have sought to keep them in semicolonial subjection, but
also by their own officials, warlords, and landed gentry,
who have frequently sided with the foreign powers against
their own people. Even today, when China is well on the
way to winning permanent freedom from foreign domina-
tion, this same bureaucratic hierarchy, fearful of losing its
privileges and power, is again seeking foreign aid in order
to retain that power.

The many seemingly contradictory aspects of the current
situation in China are reflections of this continuing struggle
between those that are working to build a new and inde-
pendent China based on a democratic system of government

THE SECRET OF 6 CHINA'S DESTINY 53 13

and modern methods of production, and those that have a
vested interest in preserving the semicolonial and traditional
social structure of ancient China with its system of rule by
a privileged bureaucracy and its preindustrial economy sup-
ported by the hand labor of millions of peasants living in a
status of virtual serfdom. This struggle has shaped the course
of Chinese political history during the past twenty-five years;
it explains the acute internal strains and tensions that de-
veloped during the war; it is responsible for the existence
of two sharply differing schools of thought regarding China's
future political, economic, and cultural structure. It is a
conflict between old and new philosophies of government
and human rights, and it is being waged not only between
the Kuomintang and opposition parties and groups, but
also within the Kuomintang itself. Only in the light of this
conflict is it possible to understand the real nature of the
internal struggle in China.

The agents of reaction in the China of today are distin-
guished by their championing of China's ancient culture,
particularly the political and social concepts embodied in
the Confucian feudal philosophy of life. They maintain that
these concepts are far superior to the doctrines of Western
liberal thought and that they must remain the basis of
Chinese society. They paint a highly idealized and romanti-
cized picture of the beauty and harmony that arise from a
faithful adherence to the "ancient virtues" of a paternalistic,
agrarian society. They write rapturously of the moral pre-
cepts of Confucianism which for more than two thousand
years enabled the emperors and mandarins of China to keep
the people in subjection and enforce unquestioning obedience
to the rule of the "scholar-gentry." They understand fully
that the Confucian theory of personal government by "gen-
tlemen" justifies the monopoly of power by a privileged
elite. They know only too well that the Confucian doctrine
of "social status," with its emphasis on authority and sub-
servience, provides the perfect dogma with which those that

14 THE SECRET OF CC CHINA ? S DESTINY"

have acquired a monopoly of power may oppose popular
demands for democracy and equal civil rights for all.

Indoctrination in Confucian ethical principles has replaced
independent thought and teaching in the schools and colleges
of Kuomintang China. The educational principle of "train-
ing the people to be leaders of the nation' 3 has been sup-
planted by the rules laid down by the Kuomintang, one of
which reads: "Obedience is the basic spirit of responsibility.
. . The people must obey absolutely the orders of the Gov-
ernment and the commands of the Leader. 33 Agents of the
Kuomintang's secret police keep close supervision over the
activities and "thoughts" of both students and teachers, and
those that dare to disobey the dictates of the Party's Min-
istry of Education do so at the risk of their careers, if not
their lives.

A similar philosophic outlook characterizes the official
Kuomintang attitude toward economic reconstruction. The
comprador-landlord-merchant-usurer class, which today holds
political power in China, is naturally in favor of preserving
the semicolonial semifeudal land and tax system that is the
basis of their wealth and power. These successors to the
mandarins and landed gentry of imperial China do not
want a program of genuine economic modernization and
industrial development that would free millions of peasants
from the land and necessitate basic reforms in the present
system of landlord-tenant and semicolonial relations. Though
ambitious plans have been outlined for the establishment of
modern industries under state supervision, in none of these
is there any mention of measures to raise the living stand-
ards of the people by freeing them from the burdens of
extortionate rents, usurious interest charges and insupport-
able taxation, so that they may constitute a prosperous
market for the products of these new industries. Instead, the
peasants of Kuomintang China are offered lofty moral dis-
quisitions on the Confucian virtues of obedience to authority,
righteousness, harmony, frugality, and the simple life.

THE SECRET OF "CHINA'S DESTINY" 15

These reactionary forces are the living symbol of the old
China the China that revered tradition and abhorred ex-
periment and innovation; the China that identified literacy
and a knowledge of the classics with governing ability and
the right to power; the China of the ancient family system
that made protection of the family's interests the highest
virtue, encouraged nepotism and official corruption in the
name of "filial piety/' and thus discouraged the growth of
social responsibility and national consciousness; the China
of Confucius, who said that "courtesy is not extended to the
commoners and punishment is not served up to the lords/*
and of Meneius, who argued that "without the gentleman
there would be no one to rule the common people, and
without the common people there would be no one to feed
the gentleman." As the dominant political power in Kuo-
mintang China, these representatives of the old China have
enforced their reactionary philosophy in the fields of educa-
tion, government, and economic administration, in a de-
termined effort to counteract the increasingly powerful for-
ward drive of the new China the China that believes in
democracy, in full independence, and in basic political and
economic rights for all citizens.

The spokesmen for this new China include most intellec-
tuals in Kuomintang China, the members of the Democratic
League, many younger army officers, students, small business-
men, the more progressive-minded industrialists and bankers
who recognize the necessity for national independence and
thorough-going agrarian reforms, and the Communists and
their supporters. These forward-looking groups do not con-
template a complete break with China's past, or the in-
discriminate adoption of foreign concepts of political and
social organization. But they are convinced that the "ancient
virtues 3 ' of feudalism cannot form the basis of a strong and
democratic nation; that China can achieve unity, independ-
ence, and prosperity only on the basis of a political system
that guarantees the people a real voice in their government

1 6 THE SECRET OF " CHINA'S DESTINY 3 '

and on the basis of an economic system that can make full
use of modern methods of industrial and agricultural pro-
duction with the welfare of the people as a whole as its
main goal. These forward-looking groups see no reason why
China should remain "unique" in the sense of rejecting what
is best in Western thought and science. While fully agreed
that the new structure of Chinese society should retain all
that is sound and valuable in Chinese culture and tradition,
they are determined that it shall discard the oppressive
features of a political and economic system that made the
old China a symbol of "supreme changeless magnificence 33
for the few, based upon supreme changeless poverty and
ignorance for the many.

A vivid illustration of the war of ideas that is raging in
present-day China is provided by comments on Confucian-
ism made by Madame Sun Yat-sen, widow of China's great
revolutionary leader, and her brother-in-law, Generalissimo
^Chiang Kai-shek. In Madame Sun's opinion, "the structure
of our present society is radically changing and it is difficult
to solve the many problems that arise from great changes.
Confucianism cannot help to solve these problems; it has
lost every practical value. . . . Confucian teachings are
feudalistic and autocratic from beginning to end. . . . We
must make great efforts to uproot Confucian ideas from every
nook and corner of our life and thought." Chiang Kai-shek,
on the other hand, pays the following tribute to the Con-
fucian way of life in his book, China? $ Destiny: "China's own
philosophy of life, developed by Confucius, amplified and
propagated by Mencius, and further explained by the Han
scholars, automatically became a lofty system that is superior
to any other philosophy in the world. . . . The glories and
scope of our ancient Chinese learning cannot be equaled
in the history of any of the strong Western nations of today/ 5

Viewed in terms of a conflict between the new and the
old, recent Chinese history seems at first glance to represent
a victory for the old. The suppression of civil liberties and

THE SECRET OF CC CHINA 3 S DESTINY 5 ' 17

the persecution of opposition groups; the unbridled specula-
tion in land and commodities while industrial production
is neglected; a rapacious and inequitable taxation system
that serves chiefly to line the pockets of local warlords and
officials all these and many other equally ugly features of
the Chinese scene can be cited to prove that the reactionary
forces are strongly in the saddle in the Chinese Government.

But the philosophy of these reactionaries no longer has
any deep roots in present-day China. The core of the old
Chinese social structure was the feudal family system, but
today millions are homeless, families have been broken up,
and the new concepts of individual initiative, patriotism,
national unity, and collective action have replaced the old
pattern of isolated family units, following obediently in the
paths prescribed by the elders of the clan. The leaders of the
Kuomintang may dwell on the beauties of the old agrarian
society and the virtues of a "pure and frugal life." But millions
of peasants know at bitter cost that this system condemns
them to abject poverty and leaves them at the mercy of the
landlord, tax collector, and usurer. The Kuomintang spon-
sored "New Life Movement" urges the Chinese people to
button their shirts, keep their houses clean, and lead a
righteous life. But the peasants of China have no shirts and
no cleaning materials, and their lives are little more than a
desperate struggle for mere existence. They are in no mood
to accept moralizing as a substitute for constructive reforms.

It is true that China today is ruled by a feudal-minded
oligarchy of compradors, landlords, merchants, and usurers,
but that oligarchy has been obliged to use the most severe
repressive measures to remain in power and even so its
control over the country has steadily weakened. This in
itself is evidence that the Chinese people do not willingly
support semicolonialism and the traditional structure of
Chinese society. Millions of Chinese men and women outside
the sacred circle of the upper bureaucracy know that they
cannot find a solution for their problems by adhering to an

1 8 THE SECRET OF "CHINA'S DESTINY 3 '

autocratic, semifeudal and semicolonial social structure, and
an outmoded and stagnant economic system. These millions
are the true representatives of the Chinese Revolution. It is
they who since the fateful day of July 7, 1937, have been^the
real fighting soldiers in the struggle for national survival
and who at the same time have kept the flames of freedom
within China from being completely extinguished by the
Kuomintang hierarchy.

In this struggle between the old and the new China, Chiang
Kai-shek occupies a position both unique and contradictory.
On the one hand, he is the symbol to the world of China's
unbroken resistance to Japan, the man under whose govern-
ment China threw off the fetters of the unequal treaties, and
thus the logical candidate for the leadership of post-war
China. Yet it is difficult to envisage Chiang as the leader of
a new China, in view of his actions and writings in which he
has consistently aligned himself with the old. His feudal and
antidemocratic political and economic philosophy is given
its fullest expression in the two books, China's Destiny and
Chinese Economic Theory, both shrouded in mystery and secrecy
as far as the American people are concerned, and now made
available for the first time in English in this volume.

It is interesting to consider why two such importan books
have been kept from the American people. For example,
in January, 1946, at the height of a Congressional controversy
over China, the request of six Congressmen to see the State
Department's translation of Chinrfs Destiny was refused by
the Secretary of State on the ground that it was a "top
secret" document and that it was not a propitious moment
at which to make this document public. This was a strange
comment on a book that has sold over a million copies in
China and that since 1944 has been on public sale in this
country in the Chinese language edition, to be translated
and published by anyone who cared to do so.

Why was the State Department so "cautious" about a
book that, though a "secret" to the American people, is no

THE SECRET OF CC CHINA 3 S DESTINY 35 1Q

secret to its millions of Chinese readers? One can only specu-
late as to the reasons, but it is a fact that one of the most
effective sections of China's Destiny is its accurate description
and vigorous denunciation of Western imperialist penetration
of China, and of the crippling effects of the "unequal treaties"
on China's development. It may well be that inasmuch as
the State Department has been playing a very big part in
directing the economic, military, and political life of China
since V-J Day, it wished to avoid any unflattering comparisons
between the earlier days of Western intervention in China
and the post-war policy of the United States. But more than
this, China's Destiny clearly reveals the antidemocratic views
and opposition to all concepts of Western liberalism, not
only of the author but of the entire Kuomintang hierarchy
that has directed the affairs of the Chinese Government for
many years. This is a truth that the State Department may
not have wished to publicize in view of the fact that it has
been throwing its full weight behind that Government. But
whatever the State Department's reasons may have been,
the fact remains that China's Destiny gives clear expression
to the political philosophy of China's ruling clique in fact,
it is widely known as the Mein Kampf of China and as such
is a document of great import to the American people.

China? $ Destiny was first published on March 10, 1943, in
Chungking by the Chung Cheng Publishing House, the
official publishing house of the Kuomintang Party. Despite
an acute paper shortage, the first printing consisted of two
hundred thousand copies, and to insure a wide circulation,
this 213-page book was priced at approximately ten cents
U. S. In the extensive advance publicity given the book, it
was described as the most important book written since the
Three People's Principles of Sun Yat-sen. By the end of 1943,
more than two hundred printings had been issued, many of
these through the facilities of other publishing houses. A
catechism, synopsis, and a book of notes were also published.
When China's Destiny was first issued, it was officially an-

20 THE SECRET OF "CHINA'S DESTINY 33

nounced that it would be used in Chinese schools and colleges
"as the most important extra-curricular reading matter. 5 '
Since then, thousands of students have had to pass examina-
tions on it. It is required reading for all civil servants, all
army officers, all members of the Kuomintang Youth Corps,
and all students at the Central Political Training Institute,
who must not only read the book but must also submit their
notes to group leaders for checking. It is thus fair to describe
China's Destiny as the political bible of the Kuomintang, and
to state that intensive efforts have been made to indoctrinate
the potential leaders of China with its ideology.

The writing of China's Destiny was begun in November,
1942, and it is pertinent here to recall the events of the pre-
vious months. In the summer and fall of 1942, the Nazi
armies were driving forward toward Stalingrad and Alex-
andria, and Japan was continuing her virtually unchecked
advance in Southeast Asia and the Southern Pacific. The
British had been driven out of Burma, and the Burma Road,
China's last means of contact with the outside world, had
been cut off. The position of China's Western Allies appeared
gloomy, to say the least. The "CC" clique, the most reac-
tionary and one of the most powerful groups within the
Kuomintang hierarchy, which had always been more con-
cerned with suppressing any popular challenge to its power
than in promoting a united war effort against the Japanese,
took advantage of this situation to encourage anti-Western
and anti-Communist sentiment in China. It was no secret
that the "GC" clique was preparing the ground for collab-
oration with the Axis Powers had they emerged victorious.
And it is widely believed that the views of this clique greatly
influenced Chiang Kai-shek in the writing of China's Destiny*

There has been considerable controversy as to how much
of the actual writing of China's Destiny was done by Chiang
Kai-shek himself. Some claim that all the writing was actually
done by Tao Hsi-sheng, who only showed Chiang the results
for purposes of checking. Others contend that Chiang spent

THE SECRET OF " CHINA'S DESTINY" 21

three hours a day dictating and discussing the contents of
the book, and that Tao was merely the ghost writer. Which-
ever version is closer to the truth, it is certain that Tao
Hsi-sheng played a prominent part in the compiling of the
book. Formerly a professor at Peiping National University,
Tao was educated in Japan and is generally regarded as
hostile to Western political and economic concepts. Although
in the 1928 period, Tao was secretary to Chiang Kai-shek,
he later became a follower of Wang Ching-wei with whom he
fled to Shanghai to join the Japanese, but broke with him
in January, 1940, and escaped to Hong Kong with the text
of a secret treaty between Wang and the Japanese. The text
of this treaty was published in full in a Chinese newspaper
in Hong Kong and Tao was reinstated in the good graces
of the Kuomintang. In Chungking, Tao lived with Chen
Pu-lei, the Generalissimo's personal secretary, and was re-
ported to be on extremely friendly terms with Chiang.
Though most Chinese believe that Tao was really a traitor,
he was eventually appointed Chairman of the Cultural
Branch of the Second Department of the Generalissimo's
Personal Headquarters, the Chinese name for which is the
"Office to Serve and to Obey." In this capacity, Tao was
a leading figure in the cultural and propaganda activities
of the Kuomintang, and either wrote or edited the majority
of editorials in the Central Daily News., the chief organ of the
Central Executive Committee of the Kuomintang.

Shortly after the publication of China's Destiny, it was of-
ficially announced that an English-language version was
being prepared under the editorship of Dr. Wang Chung-hui,
then Foreign Minister, and that this would be published in
April or May of 1943. No such version, however, was forth-
coming, and it may be that the adverse criticism of the
book voiced in many American newspaper editorials and a
number of important radio broadcasts caused this project
to be abandoned. Another possible explanation is that the
Chinese Government considered the publication in the United

22 THE SECRET OF "CHINA'S DESTINY 33

States of Lin Yutang's Between Tears and Laughter as an
adequate substitute. For this book, with its strongly anti-
foreign tone and its emphasis on ancient Confucian ethics
as the ideal basis for China's future social structure, faith-
fully echoed the philosophic outlook of China's Destiny. Not
only did Lin Yutang indulge in bitter diatribes against war-
time American and British policy toward China, but he also
delivered a sweeping indictment of all Western thought and
science, reserving particular venorn for the cc swine and slop 5 '
economists of the West and their concern for the material
conditions of life. He argued that China's traditional cul-
ture would be debased by preoccupation with such material
considerations, and showed only contempt for the struggles
and aspirations of the Chinese people to achieve the very
things, i.e., rising living standards, adequate housing, public
health measures, etc., that he so curtly dismissed as "swine
and slop" economics. As an alternative to a materialist
Western world, he advocated the teachings of Confucianism,
with its emphasis on "government by music and courtesy,"
and sketched an idyllic picture of Chinese peasants living
"harmoniously" in mud huts, while steadfastly resisting
corruption by "European standards of ease and idleness."
It is easy to see why Lin Yutang was regarded as a fully
qualified spokesman by those in China that were interested
in preserving the "ancient virtues" of an oppressive social
order, and that were entirely willing to place the entire
blame for China's trials and tribulations on the West. In
the United States, however, Between Tears and Laughter re-
ceived severe criticism, and this may well have been an ad-
ditional reason why no official English version of China's
Destiny was issued.

In China, the views expressed in China's Destiny were criti-
cized in intellectual and even in official circles. The Gen-
eralissimo took cognizance of this criticism, but in a very
strange way. He ordered all the leading members of the
Government to write their criticisms of the book and send

THE SECRET OF "CHINA'S DESTINY 33 23

them to him, but he insisted that all such criticisms should
be signed. In view of what is known of the workings of the
Chinese governmental bureaucracy, it was hardly to be
expected that these officials,, over their own signatures, would
have risked saying what they really thought of the book.
The result was virtually unanimous approval of almost every-
thing in the book. Thus, when the revised edition was issued
In January, 1944, the text remained substantially unchanged,
with the exception of a few factual corrections and a slight
toning down of some of the strongest attacks against Western
imperialism. This revised edition (in Chinese) was officially
published by the General Headquarters of the Kuomintang
in the United States and can be bought for one dollar.

Even after the publication of the revised edition, however,
BO official English-language version was forthcoming. Once
again, this may have been due to the appearance of still
another book by Lin Yutang, The Vigil of a Nation, which
was the product of Lin's visit to China in 1943. For in this
book, Lin gave very full treatment to the one subject in
China's Destiny that had not been covered in Between Tears
and Laughter, namely, the issue of the Chinese Communists.
Without even taking the trouble to visit them, he wrote a
scathing attack on conditions in the Communist-controlled
areas that all firsthand observers of Chinese conditions dis-
missed as being based solely on official handouts from the
Kuomintang authorities. Lin himself virtually admits as
much by stating in his introduction that he took to China
"two big i5O-page notebooks and came out again without
writing a single line in them. . . . My whole diary runs under
a thousand words." Yet on the basis of blank notebooks and
a brief diary, he wrote a book of some one hundred and
twenty thousand words, replete with names, dates, facts,
and figures in great detail.

Readers of The Vigil of a Nation found it hard to believe
that this was the same man who in 1935 wrote My Country
and My People, in which he delivered the following scathing

24 THE SECRET OF "CHINA'S DESTINY"

attack on the attempts of the ruling clique in China to
revive Confucianism in order to avoid democratic govern-
ment by law: "What China needs is not more morals but
more prisons for politicians. . . . [Official] privilege is the
antithesis of equality and the officials are the natural enemies
of democracy. . . . The sooner we stop talking about moral
reforms of the people, the sooner shall we be able to give
China a clean government. 53

Thus, in various forms, the ideas voiced in China's Destiny
received world-wide publicity. But there appeared at the
same time, over Chiang Kai-shek's signature, Chinese Eco-
nomic Theory, a book which even more than China y s Destiny
gives a detailed exposition of the theoretical basis of the
economic philosophy underlying the Kuomintang's program
for China's future. While China's Destiny was read by millions
in China, this small book was not released for general circu-
lation, but was published by the Generalissimo's Adjutant's
Office of the National Military Council for use as a textbook
in the Kuomintang's Central Political Training Institute,
where all high Party officials receive training. Except for
its publication in the January 1946 issue of Amerasia, its
existence is thus almost unknown in the United States. As
in the case of China? s Destiny, this book was "ghosted" for
Chiang Kai-shek by Tao Hsi-sheng, with the assistance of
Chen Pao-ying, who reportedly contributed most of the
material on Western economics.

With the war over, one might have expected that both
China? $ Destiny and Chinese Economic Theory would have been
withdrawn from circulation, and that the new world situation
would have inspired a readjustment of the author's approach
to the future of China. But Chiang Kai-shek's speech on
November 26, 1945, when he announced that "it is my
intention to assume personally the general direction of
China's economic reconstruction," plus the fact that both
books are still prescribed reading in China, indicate that the
present Chinese Government is still determined to shape

THE SECRET OF " CHINA'S DESTINY 5 ' 25

China's future development in accordance with the prin-
ciples expounded in China? s Destiny and Chinese Economic The-
ory.

The translations of both China's Destiny and Chinese Eco-
nomic Theory appearing in this volume were done very care-
fully through the combined efforts of two Chinese scholars,
each one checking the other's work. Great pains were taken
to make the translations both accurate and readable. Dif-
ferences between the original and revised editions of China's
Destiny are indicated in the text within square brackets or
in footnotes. Other material within square brackets was
inserted by the annotator for purposes of clarification. The
annotator has also added footnotes of two kinds, explanatory
and critical. Both China's Destiny and Chinese Economic Theory
are so full of omissions,, distortions, and inaccuracies that
ten times the number of footnotes used would be necessary
for an exhaustive annotation, but attention was concen-
trated on the most important textual requirements. A general
commentary on both books will be found at the end of this
volume.

PHILIP JAFFE

CH/NA'S DESTINY

By Chiang Kai-shek

CHAPTER ONE

DEVELOPMENT OF THE
CHINESE NATION

FIVE thousand years ago, the Chinese nation established
itself on the continent of Asia. Other states established five
thousand years ago are now only matters of historical record.
China is not merely the only ancient state still in existence,
but also, in company with other peace-loving and anti-
aggressor states, is fighting an unprecedented war for justice
and righteousness, and for the freedom and liberation of
mankind. We are now advancing on the broad road to a
brilliant victory and everlasting peace.

We know that a nation is formed naturally, while a state
is built by the collective strength of the people. 1 During the
process of natural formation, the Chinese nation was also
established as a state through common resistance against
foreign aggression and collective action for survival. Our
nation is of one stock, and due to its fertility the population
has greatly increased and the nation has become stronger
and bigger. Consequently, the domain of the state has ex-
panded. Nevertheless, the Chinese nation has never over-
stepped the limits required by its natural growth, and at
no time has it used military force to expand. Whenever any
foreign aggressor has forcibly broken through the defense
lines of our state and occupied territory needed for our
nation's existence, the Chinese nation, impelled by a sense
of humiliation and the need for survival, has had no alter-
native but to rise and fight until that territory was restored
to us.

i. Throughout the book, the author pie or peoples within China, while
distinguished between "nation" and "state" refers to the political and gov-
"state." "Nation" refers to the peo- ernmental structure of that nation.

29

go CHINA'S DESTINY

According to its historic development, our Chinese nation
was formed by the blending of numerous clans. 2 This blend-
ing of various clans continued, dynasty after dynasty, but
the motive power was cultural rather than military, and it
was accomplished by assimilation rather than by conquest.
Three thousand years ago, many clans spread along the
valleys of the Yellow, Yangtze, Heilungkiang [Amur], and
Pearl rivers. [In the revised edition, the preceding three
sentences were expanded to read: " According to its historic
development, our Chinese nation was formed by the blend-
ing of numerous clans. These clans were originally branches
of the same race, spreading to the east of the Pamir plateau,
along the valleys of the Yellow, the Huai, the Yangtze, the
Heilungkiang, and the Pearl rivers. They maintained dif-
ferent cultures according to the differences in their geo-
graphical environment. And cultural differences gave rise
to differences among the clans. However, during the past
five thousand years, with increasing contacts and migrations,
they have been continuously blended into a nation. But
the motive power of that blending was cultural rather than
military, and the method of blending was by assimilation
rather than by conquest."]

After the period of the "Five Emperors/' 3 written records
were kept in greater detail so that the organization of the
different clans can be studied historically. Within the Four
Seas, the clans of the various localities were either descend-

2. The Chinese character here both Chinese and foreign, it is impor-

translated as "clan" is sometimes tant to study it carefully since it is the

translated as "race," "tribe," "peo- basis of much of the author's social

pie," or even "nation." Its most lit- philosophy.

eral meaning, however, is "clan," 3. The period of the "Five Emper-

and in this particular instance this ors" is known in the Chinese classics

most accurately conveys the author's as the "Golden Age" when the govern-

romanticized version of Chinese his- ment of the world was perfect. The

tory namely, that the Chinese, Mon- last of the "Five Emperors" Shun

gols, Manchus, Tibetans, Mohamme- was succeeded by Emperor Yu, who

dans, etc., derive from a common according to orthodox Chinese tradi-

stock and are really members of the tion founded the first dynasty, the

same family. Although this thesis is Hsia, in 2205 B.C.
rejected by all modern historians,

GROWTH OF THE CHINESE NATION 3!

ants of a common ancestor or were interrelated through
marriage. The Book of Odes 4 states: "The descendants of
Wen Wang extend to hundreds of generations, but all come
from the same family tree." This means that the main and
branch stocks all belong to the same blood stream. The
Book also states: "He is not an outsider but a cousin or an
uncle." That is to say, among all the clans there were either
blood relationships or connections by marriage. This is how
the Chinese nation was formed in ancient times. Therefore,
all Chinese^, citizens share the same lofty ethical concept
that "within the Four Seas, all are brothers," and possess
the same magnificent spirit of kindness and love. These are
not just empty words.

During the Ch'in and Han dynasties, 5 Chinese military
exploits figure prominently in the historical records. How-
ever, when these exploits are examined, it is found that in
the north they were undertaken for the defense and survival
of the nation, and in the south for the development of the
people's livelihood. Clans from the grasslands of the desert
zone in China's northwest often migrated into the agricul-
tural areas in the Central Plains [the western part of Shan-
tung, Honan, the southern part of Hopei and Shansi, and
the eastern part of Shensi], and both large and small wars
resulted from these migrations. The Government resisted
the migratory clans with military force when they came as
invaders, but accorded them civilized rule when they pledged
obedience. 6 Thus, at that period, China's domain extended
to the desert in the north, to Liaotung in the east, and to

4, A Chinese "classic" consisting of Chinese, who call themselves the
very old poems and songs, allegedly "Han" race,, or "Men of Han.**
dating from the legendary period of 6. The author neglects to mention
Chinese history, the other side of the picture, namely,

5. The Ch'in dynasty was founded that the Chinese were constantly en-
by Ch s in Shih Hwang who reigned croaching on the territories of the
from 221-209 B.C. The name China nomadic tribes in search of new agri-
comes from this dynasty. The Han cultural land, and that this Chinese
dynasty (206 B.C.-AJX 221) occupies a expansion outward was also the cause
special place in the traditions of the of "large and small wars."

32 CHINA'S DESTINY

the Belurtagh Mountains in the west [the mountains that
form the western boundary of Sinkiang Province, known in
Chinese as the Chungling Mountains], At the same time,
the Government developed the agricultural areas in the
southeast, and the high plateau in the southwest was also
linked up economically with the Central Plains. Therefore,
at this period, China's territory in the south extended to the
South Sea [more commonly known on Western maps as
the South China Sea], in the east to Wu-Yueh [Kiangsu
and Chekiang], and in the southwest to Cochin-China, 7
Due to economic interdependence and the spread of a com-
mon civilization, the numerous clans in various localities
had already blended together and formed one great nation.

During the period of the Three Kingdoms [221-265],
although the Central Plains were divided and in conflict,
the governments of the Three Kingdoms each worked for
the survival of the nation. They continued the policies of
the two Han dynasties, either strengthening the frontiers
or developing waste lands. The Western Tsin dynasty [265-
317] suffered from Tartar attacks; the Hans migrated south-
ward; and the clans of Hsiung Nu and Hsien Pei [western
and eastern Tartars] occupied the Yellow River Valley. How-
ever, these clans gradually acquired the civilization of the
Hans. As a result, the Tsin and the Wei [dynasties], though
they established themselves along the Yellow River for longer
or shorter periods, adopted Chinese dress, methods of govern-
ment, and culture. The unification accomplished by the
Sui [589-618] and Tang [618-907] dynasties was the fruit
of four hundred years of nation-blending during the Wei,
Tsin,, and the North and South dynasties. During this period,
the nation was composed of innumerable main and branch

7. In the revised edition, Cochin- tiny included Hong Kong, Outer Men-
China is given as Yuehnan, or Indo- golia, Tannu Tuva, and Tibet, In
China, and Burma is mentioned as the revised edition, this map was al-
the western limit of China. In this tered to include also North Burma
connection, it may be noted that the including the Hukwang Valley, as
map of present-day China appearing well as the Liuchiu Islands,
in the original edition of China's Des-

GROWTH OF THE CHINESE NATION 33

stocks with rich and flourishing cultures. Thus, in the entire
domain east of the Belurtagh Mountains, west of the Yellow
Sea, south of the Gobi Desert, and north of the South Sea,
the many varieties of religion, philosophy, literature, art,
astronomy, astrology, law, institutions, and social customs
were gathered together and synthesized.

During the Sung dynasty [960-1280], national defense
was not adequate to protect the state or assure the survival
of the nation. The Ch'i-tan 8 [Liao] and Nuchen [Chin]
Tartars were clans of China's north and northeast which
had not been completely assimilated. They took advantage
of the Sung dynasty's low morale, political confusion, and
military decline to conquer their neighbors and become a
strong aggressive power. But though they occupied the
Central Plains, they were eventually absorbed by Chinese
culture. The rise of the Mongols to power followed a similar
pattern. The realms trampled by the hooves of Genghis
Khan's horses extended far beyond any domain essential
for the survival of the Chinese nation. But after Kublai Khan
proclaimed himself emperor, those regions beyond China's
original domain were separated away from the state organi-
zation of China, and only the main and branch clans under
Kublai Khan were assimilated into the Chinese nation.
[The revised edition uses the word "blended" instead of cc as-
similated. 35 ] When the Manchus occupied China, they were
assimilated in the same way as the Nuchen Tartars [Chin
dynasty]. Thus, after the Revolution of 1911, the Manchus
and the Chinese were really blended into one body, without
the slightest trace of any difference between them.

From the foregoing, one can discern the steadfastness of the
national consciousness of China, the stoutness of the nation's
strength, and the enduring quality of its culture. This has
enabled the Chinese nation to resist external aggression and

8, The Ch'i-tan Tartars are some- early Russian contact with the

times called "Khitans.'* They held Khitans that the Russian name Kitai y

possession of North China for a con- and hence the English name Cathay,

siderable period, and it was from for China was derived.

34 CHINA'S DESTINY

humiliation, and has made it unwilling to encroach upon
or humiliate other nations. Because it would not yield to
aggression and humiliation, the Chinese nation always rose
together and drove out any alien clans 9 to recover its ter-
ritory when the Central Plains were invaded. Because it
would not encroach upon and humiliate other clans, the
Chinese nation, in the process of eliminating the sufferings
and misfortunes of internal conflict, was able by virtue of
its great and enduring civilization to blend these neighboring
clans into the nation. In short, our Chinese nation has
resisted the armed might of alien clans, but has not resorted
to armed might against others. Instead, it has accepted and
absorbed their civilizations while at the same time imparting
to them on a wide scale the civilization of China. This has
been the outstanding characteristic of the survival and ex-
pansion of our Chinese nation.

In regard to the living space essential for the nation's
existence, the territory of the Chinese state is determined
by the requirements for national survival and by the limits
of Chinese cultural bonds. Thus, in the territory of China
a hundred years ago, comprising more than ten million square
kilometers, there was not a single district that was not es-
sential to the survival of the Chinese nation, and none that
was not permeated by our culture. The breaking up of this
territory meant the undermining of the nation's security
as well as the decline of the nation's culture. Thus, the
people as a whole must regard this as a national humiliation,
and not until all lost territories have been recovered can we
relax our efforts to wipe out this humiliation and save our-
selves from destruction.

Within China's territory, the customs of each clan, and

9. If this phrase is intended to refer that the Chinese nation always ex-

to the Mongols or Manchus, the use of pelled the invaders of the Central

the word "alien" is confusing, since Plains, with the previous argument

the author constantly stresses the view that these invaders were always "as-

that all these clans were actually part simulated" by the Chinese and blended

of the same "family" or stock. It is into the Chinese nation,
also difficult to reconcile the statement

GROWTH OF THE CHINESE NATION 35

the way of life in each locality were different. Yet the cus-
toms of each clan were unified to form China's national
culture, and the combination of the ways of life in each
locality made possible the existence of the Chinese nation.
This outstanding fact of China's history is based on her
geography, her economic structure, the requirements of
national defense, and a common historical destiny, and is
not merely the result of political necessity.

With regard to her geographical configuration, China's
mountain ranges and river basins form a self-contained unit.
Taking a bird's-eye view from west to east, starting from the
Pamir plateau on the "roof of Asia," we have in the north
the Tien Shan and Altai mountain ranges leading to the
Three Northeastern Provinces; in the center, the K'un4un
Mountains extending down to the plains of southeastern
China; and in the south the Himalayas extending down to
the "Mid-South Peninsula [i.e., the Malay Peninsula, that
consists of Indo-China, Siam, Burma, and Malaya]. Within
these three great mountain chains lie the Heilungkiang,
Yellow., Huai, Yangtze, and Pearl river basins. The Chinese
nation has lived and developed within these river basins,
and there is no area that can be split up or separated from
the rest, and therefore, no areas that can become an inde-
pendent unit.

As for China's economic structure, each region within
the geographical setting described above has its own par-
ticular soil and natural resources. The way of life in each
region differs accordingly. It may be one of hunting or of
a nomadic pastoral type; it may have reached the stage of
farming and industry or be adapted to mining; or it may
specialize in salt production or fishing. This division of
labor among the different areas is largely determined by
their physical conditions, while trading among them has
developed as the result of the needs of each area for the
products of others. Long before the invention and use of
railways and steamships, there was a very close commercial

o6 CHINA'S DESTINY

relationship between one area and another. Such a common
economic life was and is the basis of political unity and
harmonious relations among all the people of the nation.

As regards national defense, if any region within this
geographical system is occupied by an alien nation, then
the whole nation and state lose the natural bulwark that
protects them. There are no natural frontiers in the areas
of the Yellow, Huai, Yangtze, and Han rivers where a
strong defense line can be prepared. Therefore, Formosa,
the Pescadores, the Four Northeastern Provinces [Man-
churia], Inner and Outer Mongolia, Sinkiang, and Tibet
are each a fortress [or strategic area] essential for the na-
tion's defense and security. [The revised edition adds ^the
Liuchiu Islands.] The separation of any one of these regions
from the rest of the country means the disruption of our
national defenses. Furthermore, from the point of view of
natural resources needed for the support of the state, the
coal, iron, and agricultural products of the northeast, the
horse hides and wool of the northwest, the copper and iron
of the southeast, and the tungsten and tin of the southwest,
are all essential for the maintenance of our national security.
[The revised edition reads: "the tungsten and lead of the
southeast, and the copper and tin of the southwest."] The
loss of these resources would mean the destruction of the
foundations of the state.

The common historical destiny of the various clans is due
to China's ancient virtues that enabled her to bind them
in friendship toward her, and also to convert [revised edition:
"harmonize"] their original characteristics. In return for
the tribute offered by her neighbors, China responded with
luxurious gifts and favors, and never harbored designs of
economic exploitation. In the conflicts among her neighbors,
China always adhered to the principle of "re-establishing
interrupted dynasties and reviving dismembered states/'
and never adopted the policy of taking advantage of the

GROWTH OF THE CHINESE NATION 37

precarious position of other countries to seize their ter-
ritory. 10 Thus, the neighboring clans that occupied the
Central Plains were assimilated. Those clans that lived in
peace with China evolved from the status of tribute bearers
to feudatories, and from feudatories to self-governing units;
the status of each being determined by its economic needs
and its cultural level. In the case of Mongolia, the process
began with the Yen-Yung [Hsien-yun] n in the Chou dynasty
and continued with the Hsiung Nu in the Ch'in-Han period.
After this, it was continued with the Tu-chueh [Turkis]
during the early T'ang dynasty, and with the Ch'i-tan
[Liao] at the end of the Tang and during the two Sung
dynasties, and with the Mongols themselves during the
Ming [1368-1644] and the Ch'ing [Manchu] dynasties
[1644-1911]. As to Sinkiang, the Hsi-yung 12 came under
the domination of the state of Ch'in during the period of
the Spring and Autumn Annals [722-481 B.C.] and the
process was continued during the Han dynasty and by the
T'ang dynasty which fixed the Tien Shan as its western
frontier. It was finally completed when Sinkiang was opened
up and colonized during the Yuan [Mongol] dynasty [1280

10. Whether ancient China was or fathers constantly employed political

was not an aggressor is only of aca- force to encroach upon weaker and

demic interest today. But what is smaller nations; but economic force

important is this further example of in those days was not a serious thing,

the author's distortion and romanti- so we were not guilty of economic op-

cizing of history to sustain his thesis pression of other peoples. . . . China

that ancient China was perfect in all used peaceful means to influence

respects. In this connection, it is in- others and what was called the 'royal

teresting to quote a few sentences way' to bring the weaker and smaller

from Dr. Sun Yat-sen, to whom the states under her rule."
author so frequently refers to sustain n. The Hsien-yun were a tribe

his own conclusions. In the San Mm that invaded China during the reign

Chu /, Dr. Sun writes that before Asia of Hsuan Wang of the Chou dynasty,

was invaded by European imperial- about 827 B.C.

isrn, "the only power of Asia that de- 12. Hsi-yung is a comprehensive

served to be called imperialistic was term for all the tribes living in the

China, The weaker and smaller na- western part of China on the borders

tions were afraid of China and her of Tibet,
political domination. . . . Our fore-

3 8 CHINA'S DESTINY

1368] and the Ch'ing dynasty. Thus the assimilation of these
two regions [Mongolia and Sinkiang] has been taking place
for more than two thousand years.

Following the conversion of the Tufans in Tibet to Bud-
dhism, the orientation of Tibet's development was toward
China. Under the Sui and Tang dynasties, Tibet looked to
China for direction. 13 During the Yuan dynasty, Tibet was
under the jurisdiction of the Hsuan Cheng Yuan [the gov-
ernment department responsible for Tibetan and Buddhist
affairs], and during the Ch'ing dynasty, it was under the
Li Fan Yuan [the government department responsible for
Mongolian and Tibetan affairs]. Thus, Tibet's period of
assimilation has lasted over thirteen hundred years.

The northeast started its inward orientation [i.e., toward
China] even earlier. The affiliation of the Su-Shen 14 began
in the Chou dynasty. The development of this area by the
Han clan was most extensive in the two Han dynasties.
Through the dynasties of Sui, T'ang, Sung, Yuan, and
Ming, it was a territory in which the Han clan and the
Tung-hu coexisted. 15 By the time of the Ch'ing dynasty,
the development of agriculture, industry, and commerce
in the region depended almost entirely on the efforts of the
Han clan, while the Manchus were assimilated into the
Chinese nation.

Formosa and the Pescadores were originally opened up
by the Hans. They stand firmly in the southeast and have
long been the bulwarks of China. They were invaded and
occupied by the Dutch at the end of the Ming dynasty,
but were eventually recovered by Cheng Cheng Kung
[known to foreigners as Coxinga], whose deeds were epic.
China's relations with the clans of the "Mid-South Penin-

13. The characters translated 14. The old name for the region

"looked to China for direction" mean now known as Kirm, also including

literally "toward the inside," The ex- the district around Vladivostok,

act degree of political dependence 15. A Mongolian tribe known as

implied is not clear. Some translate the Tung-hu in the Ch'in and Han

It as "owed allegiance to" and others dynasties, and as the Hsien Pei in the

as "affiliated with China." Chin dynasty.

GROWTH OF THE CHINESE NATION 39

sula" were even closer. 16 History continuously records the
dispatch of armies "to revive dismembered dynasties/' and
of battles fought "to help the weak and support the fallen."
All in all, China's history during the past five thousand
years is the record of the common destiny of all these clans.
This common record constitutes the history of how all these
various clans were blended into the Chinese nation, and
of the building of the Chinese state by the Chinese nation
for common defense against foreign aggression and to assure
national survival.

[The following paragraph was added in the revised edition.]
Throughout this lengthy historical process, these various
clans, on the occasion of the contact and blending of their
cultures, often traced their respective genealogies and dis-
covered their common origin. For example, the Mongols
are the descendants of the Hsiung Nu, and according to
the Shih Chi and Han Shu y the rulers of Hsia were their
distant begetters. The Nuchen of the Northeast and the
Tufan of Tibet are the descendants of the Hsien Pei, and
according to the Tsin Shu and the Wei Shu, Huang Ti
[first of the "Five Emperors"] was the distant ancestor of
both. Again, when we study the Chou Shu, the History of
Liao, and the Documentary History of Institutions, it is re-
vealed that he [Huang Ti] was the forefather of both the
Manchus and Tibetans of today. As to the so-called Mo-
hammedans in present-day China, they are for the most
part actually members of the Han clan who embraced Islam.
Therefore, the difference between the Hans and Moham-
medans is only in religion and different habits of life. In
short, our various clans actually belong to the same nation,
as well as to the same racial stock. Therefore, there is an
inner factor closely linking the historical destiny of common
existence and common sorrow and joy of the whole Chinese

1 6. In the San Min Chu /, Sun Yat- and that "Siam paid tribute to
sen writes that "Annarrx and Burma China."
were both formerly Chinese territory,"

40 CHINA'S DESTINY

nation. That there are five peoples designated in China
[i.e., Chinese, Manchus, Mongols, Tibetans, Mohammedans]
is not due to difference in race or blood, but to religion and
geographical environment. In short, the differentiation
among China's five peoples is due to regional and religious
factors, and not to race or blood. This fact must be thor-
oughly understood by all our fellow countrymen. 17

This long history is based on the inherent moral character
of the Chinese, which, in turn, has developed China's ex-
alted culture. We know that the ethical tenets of a Chinese
citizen are loyalty, filial piety, benevolence, love, faithful-
ness, righteousness, peace, and harmony, and that the basic
principles on which the Chinese state is founded are propri-
ety, righteousness, modesty, and honor. 18 Under the influence
of these eight virtues and four principles, the Chinese nation
conducts itself by fully utilizing its own resources without

17. This paragraph was added to
the revised edition, presumably in an
effort to counteract the belief, deeply
implanted in the minds of the Chinese
people, that China is a nation of five
peoples, as symbolized by the five-
barred flag of the Republic, and to
give further emphasis to the author's
thesis of common blood ties uniting
all the Chinese people. As pointed
out previously, this theory completely
distorts Chinese history. To cite only
one example, it would follow from this
theory that the overthrow of the Man-
chu dynasty in 191 r was not a nation-
alist revolution, but merely a civil war.
The author himself appears to contra-
dict his own theory in later chapters
where he praises the "nationalist revo-
lution" that overthrew the Manchus.
All scholars recognize that China is
made up of a number of peoples or
nationalities. Moreover, this fact has
been publicly recognized by Chiang
Kai-shek's own party, the Kuomin-
tang. The declaration of the First
Congress of the Kuomintang in 1 924^

for example, specifically stated that
"the right of self-determination of the
various nations within China is recog-
nized, and a free, united China, by the
free association of these nations, will
be organized after the victory of the
anti-imperialist and anti-warlord revo-
lution. 3 '

1 8. It is difficult to translate these
Chinese words accurately. For exam-
ple, the word u jen," here translated
"benevolence" also means "kindness"
or "perfect virtue;" the word "hsin,"
here translated "faithfulness/* also
includes the idea of sincerity and reli-
ability; "li" or "propriety" is an es-
sentially Chinese concept involving
the idea of good manners, good dis-
cipline, obedience to law, etc.; "Hen,"
here translated "modesty," is some-
times translated as "integrity" and
conveys the idea of an ability to dis-
criminate between right and wrong;
"ch'ih" or "honor" means literally
a sense of shame, and conveys the
idea of an awakened conscience.

GROWTH OF THE CHINESE NATION 4!

excess, and it benefits other people by extending its blessing
without demanding concessions. When propriety is required,
it yields to no one in practicing benevolence. When its own
self-interest is involved, it acts without the slightest selfish-
ness. It neither fears the strong nor takes advantage of the
weak.

Through five thousand years of alternate order and con-
fusion and the rise and fall of dynasties, our nation has
acquired the virtue of modesty, a sense of honor, and the
ability to endure insult and shoulder hardships. Because of
its modesty, it is capable of contentment with its lot. Because
of its sense of honor, it is capable of developing its own
power. Because it is contented with its lot, it does not tres-
pass upon other nations. Because it is capable of developing
its own power, it does not tolerate the aggression of other
nations. Because it can endure insults, the strength of the
nation is accumulated inwardly and not exposed outwardly.
Because it can shoulder hardships, the aspirations of the
nation are enduring instead of spasmodic. Because of the
development of these virtues, the various clans and branches
of the Chinese nation axe capable of sacrificing their per-
sonal interests for the benefit of the whole community.
There has thus been produced a spirit that is firm and
determined in self-defense, that is peace loving in its re-
lations to the world a spirit of benevolence that "saves the
lost, restores the vanquished, relieves the weak and supports
the fallen." This spirit puts into practice the great principle
of loyalty and tolerance, and the principle that "in estab-
lishing oneself, one establishes others, and in enlightening
oneself, one enlightens others. 33 Consequently, during the
past five thousand years, all the various nations of East
Asia, whether they have been affiliated with or assimilated
by China, or have joined together for mutual self-protection,
or have remained independent, have each in accordance
with the aspirations and desires of its people, and following

42 CHINA'S DESTINY

its own national temperament and social customs, developed
the best points in its own culture and thus contributed to
the common progress of humanity.

During the last hundred years, China's national position
and the morale of the people deteriorated to such an extent
that an unprecedented situation developed. Territories re-
quired for the survival of the Chinese nation experienced
the painful process of partition. The oppression and bondage
of the unequal treaties further undermined the vitality of
the Chinese state and the nation. A survey of our long
history of five thousand years reveals the alternate rise and
fall of states and the survival and extinction of nations.
Yet the national decay during the last hundred years reached
a point unequaled in our history. The state and the nation
became weakened and encountered inner crises in the po-
litical, economic, social, ethical, and psychological spheres,
until the basis of rebirth and recovery was almost destroyed*

If the Father of our Country [Sun Yat-sen] 19 had not
promoted the Three People's Principles 20 and led our Na-
tional Revolution, China would have suffered the same fate
as Korea, and would have been swallowed up by the Jap-
anese invaders with their methods of "nibbling like a silk-
worm or swallowing like a whale." Fortunately, Sun Yat-sen,
with his prophetic foresight, applied his great courage and
wisdom to the task of establishing China's freedom and
equality, and of arousing the whole nation. He fought for
forty years, directing the common aspirations of all the
Chinese people into the right channels. On his deathbed,
he designated the abolition of the unequal treaties as the
first objective of the Chinese Nationalist Revolution, and

19. Throughout the book, the au- 20. The three principles of Nation-
thor uses this title when referring to alism, Democracy, and the People's
Dr. Sun Yat-sen. In order to make Livelihood were expounded by Sun
him a more recognizable figure in the Yat-sen in a series of speeches deliv-
minds of non-Chinese, this translation ered in Canton between January and
has for the most part rendered the August, 1924, and subsequently pub-
phrase "the Father of our Country" Hshed under the title, San Mm Cku I,
as Sun Yat-sen. or Three Principles of the People.

GROWTH OF THE CHINESE NATION 43

left to us, the comrades who survived him, and to the citizens
of the entire country, the accomplishment of this great task.
We have continued the fight till this day, and have finally
succeeded in the first step. Thus the opportunity for the
recovery of the nation and the hope of the rebirth of the
state are now presented to the citizens of the entire country.
I, Chiang Kai-shek, have been identified from the beginning
with restarting the Republic of China on the road to inde-
pendence and freedom. Surveying the present in the light
of the past, and planning for the future on the basis of the
lessons of history, I am going to describe the experience of
our state and nation during the last hundred years and point
out the direction to be followed from now on by our state
and nation. I especially hope that all citizens of the country
will realize that China's destiny rests on their shoulders, and
that our destiny will be definitely decided by the war situa-
tion as it develops today. There is no room either for hesita-
tion or for an attitude of blind acceptance and reliance on
the help of others. I wish all my countrymen to examine
thoroughly what I have written, and carry these precepts
into practice.

CHAPTER TWO

THE OF

AND OF THE

/. Political, Social, and Cultural Decline in the CKing [Manchu]
Dynasty and Fundamental Errors of Its Domestic Policy

THE deterioration of China's national position and the low
morale of the people during the last hundred years can be
largely attributed to the unequal treaties. The implementa-
tion of the unequal treaties constitutes a complete record
of China's national humiliation. To find the cause of this
national humiliation, one must go back to the political decay,
and especially the academic and social decline in the Manchu
dynasty.

As the Manchus were originally a small clan, how could
they conquer the Central Plains? It was because at the end
of the Ming dynasty politics was corrupt, opinions were
divided, political parties were at loggerheads, and banditry
was rampant. In addition, the eunuchs * usurped power
and the generals were disobedient, with the result that do-
mestic disorder and foreign encroachments steadily increased.
Thus the three-century regime of the Ming was overthrown
by the concurrent blows of the roving bandits of Li Tze~
ch'eng and the "Banner Soldiers" of the Manchus. [The
Manchu troops were divided into groups, each designated
by the color of its banner.] After the entry of the Manchus,

i. Eunuchs were frequently the they were favored for positions of

most powerful section of the bureauc- power and influence because of their

racy in imperial China. Regarded as physical inability to create family

the most trustworthy advisers for an dynasties,
emperor who maintained a harem,

44

SOURCES OF THE REVOLUTION 45

China's national consciousness received a serious blow. Sun
Yat-sen said: " After Emperor Shun Chih [of Manchu] over-
threw the Ming dynasty arid became China's sovereign, the
Ming's loyal officials and heroic citizens rose in various
parts of the country and offered resistance until the be-
ginning of the K'ang Hsi reign. Thus up to that time China
was not yet conquered by the Manchus."

He also said: "During the K'ang Hsi and Yung Cheng
reigns, anti-Manchu sentiment among the followers of the
Ming was still strong. Therefore, during these reigns, many
books were published, such as Great Truth to Dispel Illusions,
stating that the Han people should not object to the Manchus
becoming emperors. Their reasoning was that 'Shun was a
foreigner from the east, Wen Wang was a foreigner from the
west; thus the Manchus, though foreigners, could be em-
perors of China.' During the reign of Emperor Ch'ien Lung,
even mention of the words Han [Chinese] and Man [Man-
chu] was not permitted. Any part dealing with the historical
relation between the Sung and Yuan dynasties, and between
the Ming and Ch'ing dynasties in any book was omitted
or altered. All books concerning the Manchus, Hsiung Nu,
and Tartars were forbidden. They were all destroyed, not
permitted to be read or even kept in any home. 5 '

The rule of the Manchus was certainly oppressive. But
its severity fell far short of the cruel rule of the Japanese in
Chosen [Korea]. Chosen has been conquered for only thirty
years, but its people are already poisoned by the slave-
like education instituted by the Japanese. All the original
history and culture of Korea have been completely destroyed.
Not a trace of national consciousness has been permitted
to be retained by its people. Therefore, the people of Chosen
nowadays, on hearing the term Han-Kuo [the name for
Korea], do not understand its meaning. [In the revised edi-
tion, this sentence reads: "Therefore very few Korean people
nowadays, on hearing the term Korea, would understand
its meaning."] The speed and severity with which contem-

46 CHINA'S DESTINY

porary imperialists subdue conquered states and nations,
and the dire consequences of their rule ought to chill any-
body's heart.

Under the enslavement and brutal repres-sion of the Man-
chus, China's original excellent academic tradition became
greatly corrupted. The [Confucian] school of Chu Hsi, in-
troduced at the beginning of the Ming, developed certain
undesirable tendencies during the middle of the dynasty,
Those scholars taking literary examinations spent their time
studying words and sentences and composing "eight legged 53
[stereotyped] essays. Even those engaged in academic studies
were merely concerned with composing philosophical dis-
courses. Wang Yang-ming [Wang Shou-jen] started the
school of "oneness of knowledge and action" to correct such
tendencies. In his latter years, he advocated the "extension
of conscience" 2 to liberate the scholars from their tortuous
literary studies and confused thinking. This school, however,
also became impractical. When Chang Chiang-ling became
premier, he urged the "practice of practical learning" as a
remedy for the undesirable aspects of both the Chu Hsi
and the Wang Yang-ming schools. During the late Ming
and early Ch'ing dynasties, although Wang's school had
become Buddhistic, and the teachings of the Tunglin scholars
were vague and impractical, there were some students of
science, such as Hsu Kuang-ch'i, Li Chih-tsao, Mei Wen-
ting, and Sung Ying-hsing, who carried on research in the
fields of agriculture, astronomy, and manufacturing. All of
them endeavored to seek the truth through practical action
and to promote continuous progress. The great scholars like
Huang Li-chou, Ku Ting-lin, Wang Ch'uan-shan, Li Ehr-
ch'u, Yen Hsi-chai, and Fu Ch'ing-chu, were versed in both
philosophy and economics, and placed equal emphasis on
theory and practice.

2. This expression is difficult to plete understanding of intangible,
translate into English. It signifies both spiritual values,
knowledge of material things and com-

SOURCES OF THE REVOLUTION 47

The development of nationalist and democratic ideas
aroused the particular hatred of the Manchus. Following a
number of academic inquisitions, the study of government and
economics declined. During the reigns of Ch'ien Lung and
Chia Ch'ing [1736-1820] a new school of research developed,
which had its origin in the teachings of Ku Ting-Iin and
Huang Li-chou, who believed that research was worthless
when divorced from the basic principles of government and
economics. The students of the Ch'ien Lung and Chia Ch'ing
period, however, abandoned the practical approach of Ku
and Huang, and concentrated on the study of terms, words,
and phrases. As a result, learning was separated from human
life as well as from politics. Under such an eclectic and hodge-
podge academic tradition, scholars generally misinterpreted
the teachings of the "mean. 35 They developed a habit of
ambiguity and fence-sitting, and lived in what Tseng Kuo-
fan described as cc a world neither white nor black, neither
itchy nor aching [i.e., a blank and senseless world]."

However, the broad and far-reaching scope of the state
organization and the refined and detailed political institu-
tions and legal enactments of the Ch'ing dynasty were
worthy continuations of the achievements of the Han and
T'ang dynasties, surpassing those of the Sung and Ming,
and certainly leaving those of the Yuan dynasty far behind.
This period of two hundred and sixty years was the period
during which the modern countries of Europe and America
cast off the Dark Ages, began to build their states, and en-
deavored to develop their power. If the Manchu dynasty
had treated the Hans, the Manchus, the Mongols, the Mo-
hammedans, and the Tibetans within the state without
discrimination; if it had recognized the five clans as integral
parts of a single whole and granted equality to all clans
irrespective of religion, occupation, class, or sex; and if the
dynasty had aided the frontier clans to develop their self-
government and had guaranteed them a position of equality,
it can be definitely said that China would have been able

48 CHINA'S DESTINY

to advance together with the contemporary European and
American countries. She would have become healthy, happy,
rich and strong, and would not have been forced either to
suffer the humiliations of the unequal treaties during the
past hundred years, or to tolerate the Japanese invasion of
the continent of Asia.

This, of course, is a question of policy in relation to a
particular historical era, and we cannot be such perfection-
ists as to believe that the Manchus at that time should have
been able to put such a policy into effect. But the Manchus
were not only unable to recognize the desirability of such a
policy; they followed exclusively a policy of slaughter and
enslavement in governing the different clans. Thus during
the two-hundred-and-sixty-year reign of the Manchus, our
people in the whole nation never saw a single day of light.
Although the Ch'ien Lung period was hailed as a period
of good government, the Manchu ministers in power, such
as Ho Shen, were selfish, autocratic, and greedy. From
that period on, open and unrestrained bribery and extortion
became common practice among the Manchu officials, while
Han officials and scholars who offered themselves as slaves
to the Manchu court confined themselves to empty gestures,
seeking self-preservation by closing their eyes to realities.
The truculent, unscrupulous elements took pride in gaining
admittance to the ranks of the Manchu army, where their
duties were to oppress their own fellow countrymen.

Social corruption and academic degeneration became more
pronounced each day. The methods adopted by the Manchus
for dealing with the clans within the country are even more
heartbreaking and hair raising to describe. The vicious policy
adopted by the Manchus was designed solely to divide the
clans within the state and provoke friction and fratricide
among them, so that the Manchus could enjoy the benefits
of their imperial position without fear of united opposition.
Thus, with regard to the Mongolians and Tibetans, the
Manchus made use of the C Lama" religion to destroy their

v SOURCES OF THE REVOLUTION 49

martial spirit, and even endeavored to annihilate these clans
entirely. Against the Hans and Mohammedans, political
and religious restrictions were rigidly enforced, and Manchu
Banner Troops were used extensively to control these clans.
However, the greatest weakness in this policy lay in the
marked distinction drawn between the soldiers and the or-
dinary citizens. The Ch'ing court followed a policy of com-
pelling the Han to pay taxes to support the Banner Troops,
which in turn received military training in order to suppress
the Han and other clans. They did not recognize that when
soldiers are not also farmers, they become loafers and hood-
lums. Although every male Manchu was a soldier, the final
result was that all the Manchus became parasitic loafers.
By the time of the T'ai-p'ing Rebellion, 3 the Banner Troops
as well as the Green Battalions were degenerate and useless.
It was then that the Hsiang [Hunan] Militia and the Hwai
Militia [from northern Anhwei] earned fame as the beginning
of local armed forces [i.e., farmer-soldiers].

These domestic policies of the Manchu Government, de-
structive to others as well as to itself, were pursued through-
out the reigns of Tao Kuang and T'ung Chih, until the spirit
with which the dynasty was founded became lost, together
with its traditional institutions. The result was political dis-
integration and the deterioration of national defense. A
general situation of chaos and collapse developed.

During this period, China, in the face of aggression by the
great foreign powers, underwent ever-increasing national hu-
miliation as a result of the conclusion of a series of unequal
treaties that increasingly weakened the position of the state,
while the imperial house itself found it difficult to escape
total extinction.

Sun Yat-sen saw that the domestic policies of the Manchu
Government would eventually destroy both the state and the
nation. Therefore, beginning with the Hsing Chung Hui
[Society for the Regeneration of China], and continuing with

3. For discussion of the T'ai-p'ing Rebellion, see footnote, p. 194.

50 CHINA'S DESTINY

the T'ung Meng Hui, 4 these policies were made the object
of revolutionary attack. As soon as the Hsin Hai (1911)
Revolution had succeeded, Sun Yat-sen enunciated the great
principle of U A Republic of Five Peoples" in order to elimi-
nate the friction among the clans within the state and bring
them to a status of unity and equality. 5 From that time until
this day, the Nationalist Government has persistently upheld
the testament of Sun Yat-sen and the successive manifestoes
of the Kuomintang. These call for making a clean sweep of
the detestable domestic policies of the Manchus, and for es-
tablishing complete equality among all clans within the state.
They also call for rendering positive assistance to develop the
ability of self-government and to improve the status of the
border clans, granting them religious, cultural, and economic
opportunities for a balanced development, so that all of them
will love, cherish and support the whole state and the central
government through harmonious endeavor and mutual con-
cern, to the end that our Chinese Republic may become
stronger, richer, and happier each day, and that the Three
People's Principles may shine gloriously throughout the world.
This is the underlying spirit of the Revolution of the Kuomin-
tang of China and the one and only mission of its domestic
policy.

4. The predecessor of the Kuomin- thor was apparently trying to recon-
tang, the T'ung Meng Hui (United cile the two conflicting ideas that, on
League of Revolutionaries) was a the one hand, the Manchus were
revolutionary party organized by Dr. alien, oppressive aggressors, and on
Sun Yat-sen in 1 905 by the amalgama- the other, that they were one of the
tion of his own party, the Hsin Chung five clans sharing a common Chinese
Hui (Association for the Regeneration bloodstream. Sun Yat-sen docs not
of China) with the Hua Hsin Hui speak of "eliminating friction among
(organization of Chinese students in the clans," but rather of assimilating
Japan) and the Kuan Fu Hui, a group the peoples of China in a u free assocla-
of intellectuals headed by the noted tion of nations." That the Manchus
scholar, Chang T'ai-yen, The chief were finally absorbed by the Chinese
aim of the T'ung Meng Hui was the nation was due to the numerical supe
overthrow of the Manchu dynasty. riority of the Chinese people, in ad-

5. This entire analysis of the Man- dition to the greater strength of their
chu dynasty is contradictory. The au- cultural and economic institutions.

SOURCES OF THE REVOLUTION 51

2. The Conclusion of the Unequal Treaties and the People's

Reaction

The unequal treaties between China and foreign countries
began with the Sino-British Treaty of Nanking, signed in the
twenty-second year of Tao Kuang [i84s]. 6 The Nanking
Treaty was the result of the Opium War. Defeat in the Opium
War was China's "First National Humiliation" and the Nan-
king Treaty was the result of this humiliation. China's inter-
national relations from the Opium War to the 1911 Revolu-
tion may be divided into three periods.

The first period dates from the Opium War to the war of
[the year of] Chia Wu [Sino-Japanese War of 1894], with the
Treaty of Tientsin [1858] marking a decisive turning point.
During this period, foreign powers opened trading ports in
China, and these became footholds for the establishment of
all forms of special privileges. The first trading ports opened
by them were Canton, Foochow, Amoy, Ningpo, and Shang-
hai, which constituted the so-called "five ports for trade."
The special privileges secured by the foreigners were that the
citizens of their countries could live and trade under the
jurisdiction of their own consuls [extraterritoriality]. Foreign-
ers were also permitted to carry on unrestricted import and
export trade under a conventional tariff. Subsequently, coun-
tries such as England and France opened more commercial
ports in the areas in which they planned to expand their
influence and, taking advantage of the stupidity of the Man-

6. Throughout this section in which "seventh year of Kuang Hsu" as 1881,

there is an extensive listing of treaties etc. Since very few Chinese know the

signed between the Manchu dynasty dates of past centuries in terms of the

and the foreign powers, the dates are years of an emperor's reign, one can

given by the year of the reigning em- only conclude that this is an effort on

peror. To make the translation more the part of the author to inspire his

readable, dates have been substituted. readers to think in terms of ancient

For example, "the fifth year of T'ung China, even though in this case it

Chin" has been translated 1866; the concerns the hated Manchu dynasty.

52 CHINA'S DESTINY

chu diplomatic officials, obtained additional privileges. When-
ever one country obtained a new privilege from its treaty
with China, all the other countries would, under the evil
"most-favored nation" clause, enjoy the same benefits. The
special privileges provided in a treaty were often amplified by
the foreign interpretation of its terms, or a fait accompli was
created to force China to acquiesce in still more far-reaching
privileges. Take the concessions and settlements for example.
There were no provisions in the treaties between China and
foreign powers granting special privileges to the latter, but
through the expansion of the right of consular jurisdiction,
the "guests" gradually usurped the position of the cc host. 53

In what way is the Treaty of Tientsin the pivotal point of
this period? Subsequent to the conclusion of the Treaty of
Nanking, Canton became the most prosperous port for foreign
powers trading with China under the unequal treaties. The
imperialist influence upon China's economic and cultural life
was strongest in the two Kwang provinces [Kwangtung and
Kwangsi], where the people's reaction was also the most
violent. The residents of Canton were vigorously opposed to
the opening of the city as a trading port and to the entry of
foreign steamships. In 1850, nine years after the conclusion of
the Treaty of Nanking, Hung Hsiu-ch'uan [of the T'ai-p 5 ing
kingdom] led an insurrection in Chin T'ien, Kwangsi, and
his forces spread to the Yangtze Valley and almost overthrew
the Ch'ing Government. During the same period, the allied
forces of England and France suddenly attacked Canton,
invaded Tientsin, and entered Peiping. The Ch'ing Govern-
ment, ignorant and confused, signed the Treaty of Tientsin
under the coercion of the allied forces. Prior to this, the
Ch'ing Government had consistently maintained a chauvin-
istic attitude toward foreign nations and adopted antiforeign-
ism as its only foreign policy. But at this point, the Ch'ing
Government, beset internally by popular revolutionary forces
and externally by pressure from the foreign powers, chose to
yield to the demands of the foreign nations. Hence the

SOURCES OF THE REVOLUTION 53

treaties concluded with the foreign powers contained many
voluntary concessions.

The attitude of the Han scholars and ministers toward the
foreign powers had also been chauvinistic. Most of them were
still arrogant and ignorant, despising foreign matters as not
worth a single glance. Some of them, however, understood
and appreciated the mighty effect of Western rifles, cannons,
and steamboats, and began to advocate imitation of . the
West and to promote "Ke-chih" [the study of physical sci-
ences]. Tseng Kuo-fan, Tso Tsung-t'ang, and Li Hung-chang,
who suppressed the T'ai-p'ing Rebellion, were the forerunners
of this "New Deal" of the Manchu Government. What they
advocated, however, was merely the building of factories for
the manufacture of copies of Western firearms and communi-
cations equipment, and the establishment of schools to teach
Western languages. They failed to recognize that a knowledge
of foreign languages does not automatically produce a diplo-
matic expert, and their efforts to build steamboats, coastal
defenses, and railroads, without a comprehensive national
plan, merely indicated their amazement at the strength of
the ships and the effectiveness of the guns of the West. The
funds raised for the government's reforms were freely appro-
priated by the imperial family for extravagant personal ex-
penditure. All officials also regarded the reform program as a
source of remunerative positions which enabled them to in-
dulge in corrupt practices to fill their own pockets. The Navy
Yamen [Office of Naval Affairs] was in reality busily engaged
in the service of the Summer Palace of the Empress Dowager.
The Foreign Affairs Yamen was an office in name only.
Actually, it became a center where powerful princes, dukes,
and ministers divided their spoils. With the Sino-Japanese
War of 1894, China's defeat was complete. Li Hung-chang
was ordered to Japan to conclude the Treaty of Shirnonoseki,
which undermined China's sovereignty and the position of
the state, and added one more national humiliation. The
weaknesses and malpractices of the Manchu dynasty over a

54 CHINA'S DESTINY

period of two hundred years were fully exposed to the world.
And this display of weakness and corruption gave rise to the
Japanese militarists' contemptuous view of China and their
ambitions toward the continent of Asia.

A general survey of the unequal treaties of this period would
place all the treaties made following the Opium War into one
period, and those made following the Anglo-French joint
expedition [1858] into another. The important treaties in the
first period were the Sino-British Treaty of Nanking in 1842,
the Opening of the Five Treaty Ports (the Tiger Gate Treaty)
in 1843, tlie Sino-American Wang-hsia Treaty in 1844, the
Sino-French Huangpu Treaty and the Sino-Swedish-Norwe-
gian Treaty in 1847, and the Sino-Russian Commercial
Treaty in 1851. The chief special privileges received by the
powers from these treaties were as follows:

A. Consular Jurisdiction [Extraterritoriality]

1. Gases involving only foreign subjects may not be inter-
fered with by Chinese officials.

2. Civil cases involving Chinese and foreigners shall first be
mediated by foreign consuls. If not settled, they shall
then be "tried jointly 5 ' by local Chinese authorities and
foreign consuls.

3. In criminal cases involving Chinese and foreigners, the
Chinese shall be tried by local Chinese authorities ac-
cording to Chinese law, while foreigners shall be tried by
their own consuls according to the laws of their own
country.

The establishment of foreign consular jurisdiction in China
undermined the judiciary power of China as well as infringed
upon the sovereignty of the state; moreover, trade and inter-
course between Chinese and foreigners were no longer on an
equal footing. Thus a fatal blow was struck against both the
welfare of the state and the livelihood of the people.

B. Conventional Tariff

i . With the exception of tea, lumber, metal, and spices, the
duties on which shall be ten per cent ad valorem, aH

SOURCES OF THE REVOLUTION 55

imports from and exports to foreign countries shall be
taxed at the rate of five per cent ad valorem.
2. On foreign merchant vessels of over one hundred and
fifty tons entering a port, the duty shall be five cHien
(1/20 taet) per ton, and one cKien (i/ioo taeT) per ton on
those under one hundred and fifty tons. [One tael equals
approximately seventy-five cents U.S.]

Following the conclusion of the conventional tariff agree-
ment, China's economic and financial power fell completely
into foreign hands. The economy declined and the lifeblood
of the state was cut off.

Among the unequal treaties following the Anglo-French
joint expedition, the most important were: the Treaties of
Tientsin in 1858 between China on the one hand and Eng-
land, France, America, and Russia on the other; the Renewed
Treaty^between China and Russia in 1861; the Tientsin
Treaty between China and Germany in the following year;
the Tientsin Treaty between China and Portugal in 1862;
the Sino-Dutch and Sino-Danish Tientsin Treaties of 1863;
the Sino-Spanish Treaty of 1864; the Sino-Belgian Peking
Treaty of 1865; the Sino-Italian Peking Treaty of 1866; the
Sino- Austrian Peking Treaty of 1869; the Sino-Peruvian
Washington Treaty of 1874; the Sino-British Chefoo Treaty
of 1876; the Sino- American Addendum Treaty of 1880; and
the Sino-Brazil Tientsin Treaty of 1881. After the conclusion
of these treaties, the foreign powers opened many commercial
ports along the coast and on the rivers of China, and secured
various special privileges. The most notable ones were as
follows:

Consular Jurisdiction: Under these treaties, in addition to
reaffirming the consular jurisdictional provisions secured pre-
viously, the foreign powers obtained the following two special
privileges:

i. The privilege of attending trials: The phrase "joint trial"
contained in all treaties concluded after the Nanking Treaty

^6 CHINA'S DESTINY

was a mistranslation made by officials of the Ch'ing Govern-
ment. When the Tientsin Treaties were signed, the powers,
taking advantage of this mistranslation, secured the priv-
ilege of attending trials. Whenever a civil or criminal case
between a Chinese and a foreigner arose, the foreign consul
could send a representative to attend the trial.
2. The privilege of joint trial: In 1886, local authorities in
Shanghai and the British and American consuls conferred
and formulated "Regulations for Foreign Representation^ in
Joint Trials." Thereafter, not only were civil cases involving
Chinese and foreigners to be tried by a joint court, but also
all cases involving only Chinese, if they occurred within a
foreign concession. Subsequently, every country followed this
precedent, and as a result there appeared the French Con-
cession's "Joint Court 35 in Shanghai, Hankow's "Foreign
Office," Harbin's "Head Office of Railroad and Foreign
Affairs' 3 and the Kulangsu "Joint Court" [in the Inter-
national Settlement at Amoy] .

After the consuls of the foreign powers in China obtained
the special privilege of attending trials, and of joint trials,
the foreigners not only avoided the jurisdiction of Chinese
law but also interfered with Chinese justice. They were not
only placed outside the jurisdiction of Chinese courts, but
were also given the right to try Chinese citizens.

Concessions: During this period, foreign concessions were
established in different localities. In addition to Shanghai's
International Settlement, established in 1845, and the F r ^ n ^ h
Concession in Shanghai, established in 1849, tliere were ^
British and French Concessions in Hankow, Kiukiang, Chin-
kiang, and Amoy, and the British and French Concessions in
Shameen, Canton, established in 1861; and the International
Settlement in Chefoo, established in 1866, Consular juris-
diction was originally intended to be applied to persons and
not to places or localities. But after the establishment of the
concessions, consular jurisdiction was applied to all desig-
nated areas. This was tantamount to the establishment of
many states within the territory of China.

SOURCES OF THE REVOLUTION 57

The Privilege of Navigation and Anchorage of Foreign Warships:
The right of foreign warships to cruise and anchor along
China's coast and in her inland ports was not explicitly pro-
vided for in previous treaties, but through the misinterpreta-
tion of these treaties, such actions had become established
practices. In the Tientsin Treaties, however., this privilege
was specifically granted, with the result that China's coastal
defenses became nonexistent., and there was not a single
large city that was not dominated by the "gunboat policy 5 '
of imperialism.

The Privilege of Controlling Customs: Prior to the Treaties of
Tientsin, the custom house at Shanghai was in fact admin-
istered by foreigners. The Tientsin Treaties expressly provided
that China should engage Britishers to assist in tariff admin-
istration, and since that time the Chinese customs has had a
British High Commissioner. In 1864, the "General Office for
Foreign Affairs 5 ' of the Ch'ing Government promulgated
"Regulations for the Employment of Foreign Subjects in
Tariff Affairs," permitting the chief commissioner to engage
foreigners, and since then the tariff office in each port has
been headed by a foreigner. After the direct control of our
customs by foreigners, not only were the tariff rates deter-
mined by the foreign powers, but tariff revenues were also
subject to their appropriation; not only was the import of
foreign commodities placed under their control, but exports
of Chinese goods were subject to their inspection and restric-
tions.

Conventional Tariff: The Tientsin and other subsequent
treaties revised the tariff system of China, the salient points
being as follows:

1. Revision of the tariff rate to five per cent ad valorem.

2. Inland port duties fixed at half the regular tariff rate, or
two and one-half per cent.

3. Reduction of duty on ships to four cttien per ton.

4. Revision of tariff convention every ten years.

^8 CHINA'S DESTINY

The purpose of these provisions was to fix the duty on
imports on the basis of actual value, so that the duties would
be reduced when prices fell. The provision fixing inland port
duties was to enable foreign goods to be transferred freely
from port to port in China with no additional payment. In
short, each time the tariff provisions in the unequal treaties
were' revised, foreign goods received more elaborate pro-
tection.

The Right of Coastal Trade and the Right of Navigation: All the
ports opened by the treaties concluded subsequent to the
Nanking Treaty were coastal ports; therefore the navigation
of foreign steamships along the coastline of China was already
an established practice before it was provided for in the
treaties. After the conclusion of the Tientsin Treaties, explicit
provisions to that effect were made. The Tientsin and subse-
quent treaties also opened more ports along the Yangtze to
foreign trade; the powers thereby securing the right of inland
navigation. As the powers had the rights of coastal trade and
inland navigation, it was not only possible for foreign goods
to be marketed in all parts of China, but the control of China's
maritime trade also fell into the hands of foreigners. Not
only were foreign goods transported by foreign ships to dif-
ferent localities, but domestic goods also depended upon
foreign ships for transportation.

The period from the war of 1894 to the time of the Expedi-
tion of the Eight Allied Powers constituted the "second
period" in China's international relations. The powers, taking
advantage of the results of Japanese aggression against us ?
vied with' each other to acquire Chinese territory as conces-
sions or spheres of influence. They built military barracks and
naval bases, and obtained railroad building and mining
rights. The memory of the disastrous loss of Ryukyu [Liuchiu
Islands], Hong Kong, Formosa, the Pescadores, Indo-China,
Burma, and Korea was still fresh, while the final calamity of
the partitioning of the whole country was impending. Then

SOURCES OF THE REVOLUTION 59

a movement for avenging national humiliation and strength-
ening the state sprang up among the Chinese people. In this
period., both the scholar and the statesman were also gradu-
ally learning that China's decline was not only due to the
inferiority of her guns and steamships to those of the West,
but was mainly caused by her political degeneration, the
chief source of which was absolute monarchy. How could
this political system be revolutionized? Those that were aware
of this problem gave different answers. Dr. Sun, responding
to the times and the people, advocated a revolution and or-
ganized the Hsing Chung Hui [Society for the Regeneration
of China] in Honolulu. There he recruited comrades, adopted
the slogan of "Drive out the Tartars [Manchus], recover
China, establish a people's state, and equalize land rights."
[The revised edition very significantly omits the last two
points in Sun Yat-sen's program, i.e., those pertaining to the
establishment of a democracy and the equalization of land
rights.] With the Three People's Principles as the basic pro-
gram, he proceeded actively with the Revolution. No other
parties or political factions achieved this level of understand-
ing. For example, K'ang Yu-wei favored safeguarding the
sovereign position of the monarch, organized the "Protect
the Emperor Party,' 5 and advocated the establishment of a
constitution [in the revised edition, K'ang is credited with
advocating "reform" instead of "the establishment of a con-
stitution"]. This reform movement precipitated the coup (Petat
executed by the Empress Dowager in 1 898 which resulted in
the Emperor's imprisonment and the abandonment of the
reforms. The failure of K'ang's reform movement as a result
of the coup (fitat intensified the reaction of the Ch'ing Gov-
ernment. Rallying around the imperial court, scholars and
statesmen of the conservative clique refused to discuss foreign
affairs and opposed the new reforms. The stupid and stubborn
among them even went so far as to employ amulets to resist
the military weapons of the foreign powers, and sponsored

5 CHINA'S DESTINY

the so-called "Boxers" to mislead and confuse the people. 7
As a result, China suffered national humiliation at the hands
of the Eight Allied Armies in 1900, and signed the Hsin-
Ch'ou Peace Treaty in 1901. [Hsin-Ch'ou is the Chinese
name for the year 1901.]

From a general survey of the unequal treaties concluded
during this period, it is clear that the Sino-Japanese Treaty
of Shimonoseki was the turning point in the relations between
Japan and China, marking a shift from equality to inequality.
The main features of this period were the treaties providing
for the leasing of territories and the agreements for railroad
loans concluded between the Ch'ing Government and foreign
powers, and the unilateral declarations made by the powers,
concerning their respective "spheres of influenced The salient
features may be listed as follows: spheres of influence, leased
territories, rights of railroad construction, rights to land ad-
jacent to railroads, and mining rights.

Great Britain: Before 1894, the powers had already estab-
lished the precedent of setting up spheres of influence in
China. After the ceding of Hong Kong, Great Britain in-
serted in the Sino-British Treaty of 1846 providing for the
return of Chousan Island, the stipulation that the Ch'ing
Government was "not to cede Chousan Island to any other
country." In the Yunnan-Burma Boundary and Commercial
Convention between China and Britain in 1894 it was also
stipulated that "the area of Meng-lien and Kianghung shall
not be ceded to other countries in whole or any part thereof."
After 1894 [in 1898], Weihaiwei and Kowloon became British
leased territories by virtue of the Sino-British Treaties, both
concluded in 1898. In 1899, Great Britain and Russia agreed
that the Yangtze Valley should be a British sphere for rail-

7. In an effort to divert a popular eigners as the "Boxers" because Its

uprising against themselves, the Man- Chinese name was "Fists for the Pro

chu bureaucracy, led by the Empress tection of Public Peace/* changed its

Dowager, succeeded in corrupting slogan from "Down with the Man-

and converting the rising mass revolt chus! Protect the Chinese!" to "Down

into an antiforeign movement. The with the Foreigners! Long Live the

insurgent organization, known to for- Imperial Dynasty!**

SOURCES OF THE REVOLUTION 6 1

road building. At the same time, a British firm, Fu & Co.,
also obtained mining rights in the two provinces of Shansi
and Honan.

France: After occupying Indo-China, France obtained in

1897 the Ch'ing Government's guarantee that "Hainan Island
shall not be ceded to any other country " and, in the next
year, the pledge that "the three provinces of Kwangtung,
Kwangsi, and Yunnan shall not be ceded to any other
country." During this period France obtained the right to
extend the Lungchow Railroad, to build the Yunnan-Indo-
China Railroad, and to exploit the mineral resources of
Kwangtung, Kwangsi, and Yunnan. In 1899, she concluded
the Kwangchowwan Treaty with the Ch'ing Government,
by which Kwangchowwan became a French leased territory.

Germany: Germany concluded the Chiao-Ao Treaty with
the Ch'ing Government in 1898, by which she secured Kiao-
chow Harbor as a German leased territory, with permission
to build the Tsingtao-Tientsin Railroad and to exploit the
mineral resources within thirty li of the railroad. [Three li
equals one mile.]

Czarist Russia: Gzarist Russia concluded the Sino-Russian
Tao-Sheng Bank and the Three Eastern Provinces [Man-
churia] Railroad Agreements in 1896, designating the Three
Eastern Provinces as her sphere of influence. Two years
later, she concluded a treaty leasing Port Arthur and Dairen
Harbor, and by a subsequent agreement she obtained special
rights to railroads, mines, manufacturing, and commerce in
the Port Arthur-Dairen area. In 1899, England and Russia
agreed that the region north of the Great Wall should be a
Russian sphere of influence for railroad building purposes.

Japan: After her occupation of the Pescadores and Formosa,
Japan obtained a guarantee from the Ch'ing Government in

1898 that "Fukien Province and its coastal regions shall not
be ceded to another country."

This division of various Chinese regions among the powers
as their respective spheres of influence was a prelude to the

6s CHINA'S DESTINY

complete partition of China. Although the calamity of par-
tition did not materialize, the powers made extensive use of
their special rights of railroad construction, mining, manu-
facturing, and commerce.

Concessions: The concessions subsequently granted during
this period were: the German Concessions in Tientsin and
Hankow in 1895; the Russian and French Concessions in
Hankow and the Japanese Concession in Hangchow in 1896;
the Japanese Concession in Soochow in 1897; the Japanese
Concessions in Tientsin, Canton, and Hankow in 1898; and
the Japanese Concessions in Amoy and Foochow in 1899.

Rights of Foreign Garrisons: During this period, Czarist Russia
forcibly stationed the so-called "Chinese Eastern Railroad
Guards" along the Chinese Eastern Railroad. Thereafter,
the powers had the right to station troops in China.

The Employment of Foreign Postal Employees and Foreign Post
Offices: In 1898, France forced the Ch'ing Government to
employ foreigners in post offices, and the powers then opened
their own post offices in China. Thereafter, China's communi-
cations fell under the control of the powers.

The Right to Establish Factories: In the Treaty of Shimono-
seki, the Japanese inserted a provision granting Japanese
subjects in China's treaty ports the right "freely to pursue
various lines of manufacturing and freely to ship and import
all kinds of machinery, provided only that a fixed import
duty be paid." All articles manufactured in factories in the
treaty ports were to be treated as imports, and duties and
taxes were to be exempt or reduced accordingly. On the
basis of "the most-favored nation clause," other countries
secured the same privileges.

With the conclusion of the Hsin-Ch'ou Peace Treaty in
1901, China's international relations entered the third period.
In the first period, the imperialist powers competed in China
on a basis of equality; in the second period, this situation
changed into one of imperialist rivalry, which produced the
Anglo-Japanese Alliance and the Russo-French Alliance. At

SOURCES OF THE REVOLUTION 63

the time of the Expedition of the Eight Allied Armies,, in-
ternational policy toward China was hovering between the
Open Door and Concerted Partition. The Open Door Policy
was initiated by the United States and seconded by Great
Britain. But the Japanese aggressors were not satisfied with
their concessions on the Liaotung Peninsula, while Czarist
Russia continued her efforts to monopolize the northeast.
Hence the Russo-Japanese War was fought in 1 904 to decide
their respective spheres of influence in the northeast another
national humiliation for China. Thereafter, the Japanese ag-
gressors laid the foundation of their cc continental policy"
the beginning of the present calamities wrought by them in
Asia and the world.

The unequal treaties of this period, such as the Hsin-Ch'ou
Peace Treaty, the Sino-British Treaty of 1902, the Sino-
American Commercial Treaty of 19033 the Sino-Japanese
Supplementary Navigation Agreement, the Agreement be-
tween China and Japan concerning Manchuria in 1905, and
the Sino-Swedish Treaty in 1908, all contained provisions
for additional special privileges. The chief of these were as
follows:

Legation Areas: The Hsin-Ch 3 ou Peace Treaty provided for
the establishment of a special area for foreign legations in the
then national capital, Peking, to be jointly administered and
defended by the legations. This is the T'ung Chiao Min
Hsiang Legation Area. Within this area foreign troops were
stationed regularly and it was constantly patrolled by special
police, thus becoming actually a "state within a state."

Right to Station Foreign Troops: In addition to the stationing
of foreign troops in the legation area, the Hsin-Ch'ou Peace
Treaty provided that foreign troops should be stationed along
the railroad from Peking via Tientsin to Shanhaikwan, to
protect the communication line from Peking to the sea. Our
fortifications at Taku and between Peking and Haikow were
demolished, and China was deprived of the right to establish
coastal defenses.

64 CHINA'S DESTINY

Japans Sphere of Influence: After the Russo-Japanese War,
the Japanese aggressors occupied Port Arthur, Dairen, and
the southern section of the Chinese Eastern Railway and its
branches. The Ch'ing Government, in the so-called Basic
Sino-Japanese Agreement on Matters Concerning the Three
Eastern Provinces, recognized thhfait accompli by making the
southern part of Manchuria, i.e., the Liaotung Peninsula, a
Japanese sphere of influence, while Port Arthur and Dairen
became Japanese leased territories.

Concessions: Concessions added during this period were the
Russian and Belgian Concessions in Tientsin and the Jap-
anese Concession in Chungking in 1901, the Italian Con-
cession in Tientsin and the International Settlement in Ku-
langsu [Amoy] in 1902, and the Austrian Concession in 1903.

7 he Right to Control Customs: In 1907, the Japanese obtained
control of the Customs House in Dairen.

The Right of a Conventional Tariff: Changes were made with
respect to the tariff system in the Hsin-Ch'ou Peace Treaty
and the Mackay Treaty of 1902. The important points were
as follows:

1 . Import duties were fixed at five per cent ad valorem, supple-
mented by a specific duty.

2. Revenues from inland ports were placed under the control
of the Customs House.

3. It was specified that after the abolition of likin [inland transit
duties] import duties might be increased to twelve and one-
half per cent and export duties to seven and one-half per cent.

These provisions were intended to reduce or remove inland
duties on foreign imports. The Hsin-Ch'ou Treaty had forced
a huge indemnity on China, and in order to pay it, China
was compelled to increase her taxes. But since foreign imports
enjoyed reduced tariff rates and exemption from the likin
tax, the burden of the indemnity payment fell entirely on
native goods. Thereafter, the inability of native goods to

SOURCES OF THE REVOLUTION 65

compete with foreign products in the Chinese market became
increasingly apparent,

Right of Appropriation of Customs Revenues and Custody of the
Surplus: Customs revenues were pledged for indemnity pay-
ments and were placed under the control of the Commissioner
of Customs, who was a foreigner. The surplus, after the annual
payment of indemnity installments, was deposited in foreign
banks and was still subject to the Commissioner's control.
Thus not only was the cream of the Chinese economy drawn
off by the imperialist powers, but even the leftovers were
expropriated.

Right to Clear the Channels of Inland Waterways, Employing
Foreign Pilots., Erecting Lighthouses and Navigation Buoys, etc.: The
Hsin-Ch'ou Treaty granted to foreign countries the right to
dredge the North River [the entrance channel from Taku]
and the Huangpu River [the entrance channel from Wusung],
It also granted them the privilege of employing foreign river
pilots, and erecting buoys, navigating marks, lighthouses, and
watch towers. Thereafter, the conditions and strategic im-
portance of China's principal harbors and inland waterways
became well known to the imperialists and subject to their
control

In this period, there was first the Hsin-Ch'ou Treaty which
not only discredited the Ch'ing Government once and for
all, but also resulted in the continuous decline of the national
economy. Though China luckily maintained her formal ex-
istence as a result of the conflicts and rivalries among the
powers, the Ch'ing Government's fear of the foreign powers
was at its height, leading it to try to curry favor with the
foreigners. Following this, there was the Russo-Japanese War
in which Japan finally triumphed over Czarist Russia a
victory that left a deep impression on both the Government
and the people of China. The Ch'ing Government, sensing
the unalterable trend toward reform, was forced to promul-
gate a "New Deal." It abolished the literary examination,
established [modern] schools, trained new armies, built ar-

66 CHINA'S DESTINY

senals, mints, and shipyards, and prepared for the promulga-
tion of a constitution and the calling of a parliament, in order
to conceal its political corruption and diplomatic humilia-
tions, and thus mislead the people. The people recognized the
impending calamity in the foreign relations of the state, as
well as the ignorance and helplessness of the Ch'ing Govern-
ment. They also saw that the so-called movement for consti-
tutional reform had secured from the Government only a
series of decrees. It was then that the revolutionary program
advocated by Sun Yat-sen took root among the broad masses
of the people who had been secretly cherishing a nationalist
ideology. The prestige of the constitutional monarchists and
royalists was increasingly undermined, while an upsurge of
revolutionary anti-Manchu sentiment rose higher and higher.
The new schools established by the reforms of the Ch'ing
Government became hotbeds of revolutionary ideas, and the
new army became the springboard of the revolutionary move-
ment. Popular belief in Sun Yat-sen 5 s revolutionary program
became stronger. The active movement within the country
was led by secret societies and parties, while financial support
came mainly from overseas Chinese.

Such being the situation within the country and outside,
the revolutionary storm could not be averted. However, as
the revolutionary movement grew, the Ch'ing Government
became increasingly reactionary. It clung firmly to the policy
that "it is better to give to friends than to one's own slaves,"
which made the people realize that they were suffering from
the double oppression of imperialism and autocracy, and
that they must fight for a government of as well as by the
people. The revolutionary movement aimed at strengthening
the state, overthrowing the Manchus, and avenging the na-
tional humiliation. Through the rallying of volunteer armies,
the launching of insurrections, the shedding of blood, and the
sacrifice of lives on the part of the martyrs of the T'ung
Meng Hui, the objectives of the Revolution became clarified
and the will of the people more and more determined.

SOURCES OF THE REVOLUTION 67

Thus the insurrection of October loth, 1911, in Wuchang
brought an immediate response from the whole country.
The Ch'ing Emperor abdicated and the Republic was estab-
lished. Although there were alternately external encroach-
ments and internal troubles, and many obstacles were en-
countered, they all add up to one historical lesson; without
determined effort on the part of the people, humiliation can-
not be avenged and strength cannot be built up; without a
people's revolution, the people's aspirations cannot be satis-
fied and their will cannot be unified for the task of avenging
humiliations and building up the country's strength. Ninety-
three years of history since the T'ai-p'ing insurrection has
proved that the people's revolution and the Three People's
Principles initiated by the Father of our Country are the
only right road for rehabilitating our nation. From the
Revolution of 1911 to the present war of resistance and na-
tional reconstruction, we have followed this road without
hesitation or retreat, advancing with courage and speed, and
we will never halt until the goal is attained.

3. Lessons from the Accomplishments and Failures of the 191 1

Revolution

Although the public supported the people's revolution,
their understanding of its fundamental meaning was not
sufficiently deep. They knew that making copies of guns and
steamships could not strengthen the state. They also knew
that if absolute monarchy and feudal partition were allowed
to continue, the state could not strengthen itself and become
independent. But when the absolute monarchy had been
overthrown and a Republic of Five Peoples had been pro-
claimed, they thought that the Nationalist Revolution was a
success and that democratic government had become a reality.
They only knew how to imitate the form of Western democ-
racy, and were content so long as the Central Government
had a president, a cabinet, and a parliament. They did not

68 CHINA'S DESTINY

recognize that the main objective of the Nationalist Revolu-
tion was to escape from the bondage of the unequal treaties,
and especially to overcome the habits of arrogance, extrava-
gance, immorality, lawlessness, and the attitude of servile
dependence upon foreign powers that had been fostered under
the unequal treaties. They did not know the real meaning of
democracy, nor did they realize that the principle of the
people's livelihood is the basic aim of the Revolution. They
had overthrown the absolute monarchy, but they could not
eliminate the bad habits of idleness, greed, and aimlessness
developed under autocracy, nor the tradition of unrealistic
learning and discussion without regard for practical results.
With such habits and traditions, the copying of Western
firearms resulted in the substitution of sand for gunpowder, 8
and the operation of the parliamentary system was marked
by bribery and the [illegal] revision of the provisional con-
stitution. Even members that joined the revolutionary party
were so governed by bad habits that they lacked steadfastness.
Once they encountered defeat, their faith was shaken, they
became despondent, lacked courage to face difficulties, and
resorted to actions that bore no relation to their verbal
protestations. Thus, although the Chinese Republic was
founded in 1912, there was a period of thirteen years, until
the reorganization of the Kuomintang, in which the Nation-
alist Revolution experienced innumerable difficulties and
obstacles. In retrospect, the history of that period is certainly
a matter for profound regret. The experience of those thirteen
years may be divided into two periods.

The first period dates from the insurrection of 1911 to the
death of Yuan Shih-k'ai in 1916. At the time of the 1911
Revolution, Sun Yat-sen's purpose was to overthrow the
three-thousand-year monarchy, and establish a democratic
state. He did not consider that democracy consisted merely
of a president, a parliament, a provisional constitution, and

8. This is intended to indicate the who substituted sand for gunpowder
graft practiced by Chinese officials and pocketed the difference in cost.

SOURCES OF THE REVOLUTION 69

a cabinet. Because of this, he turned the presidency over to
Yuan Shih-k'ai. He believed that the revolutionists should
constitute a nongovernmental party, devoting their energy
to education and industry, and to implanting the foundations
of the Three People's Principles in the minds and life of the
people. There were very few men in the Party that under-
stood this idea. Attention was generally centered on the text
of the provisional constitution, in the belief that if only a
system of responsible government could be enforced, Yuan
Shih-k'ai could be prevented from abusing his authority as
president. They also thought that if a powerful political
party could be organized to control the parliament, a re-
sponsible cabinet could be maintained to carry out the task
of restricting the authority of the president. They also copied
the form of British and American politics, believing that if
two major parties existed side by side, the mold of democracy
would have been set. However, though two major parties
were organized, they did not help the parliament to increase
its authority. Even though there was a majority party whose
members engaged in legal activities in the parliament, they
could not establish a responsible cabinet, nor could they
prevent a president like Yuan Shih-k'ai from abusing his
prerogatives.

What Yuan Shih-k'ai feared was not the parliament, but
the influence of the revolutionary party in the Yangtze
Valley and the southern provinces. Therefore, after the failure
of the Second Revolution in the provinces of Kiangsi, Kwang-
tung, and Fukien, and in Nanking in the second year of the
Republic [1913], the parliament was dissolved by the presi-
dent it had elected, and the decree of dissolution was counter-
signed by none other than the prime minister of a cabinet
responsible to the parliament. Immediately after the dissolu-
tion of the parliament, the cabinet collapsed. Thereafter, the
so-called parliament, the so-called cabinet, and the provi-
sional constitution itself, were all controlled by Yuan Shih-
k'ai, and were maneuvered at his pleasure.

70 CHINA'S DESTINY

But Sun Yat-sen had long anticipated that Yuan SHh-
k'ai would reject the provisional constitution and attempt to
make himself Emperor. Thus, following the assassination of
Sung Chiao-jen [a leading organizer of the Kuornintang],
Sun Yat-sen immediately advocated the prosecution of Yuan
and the launching of a punitive expedition. Unfortunately,
there were again very few leading members of the Party that
understood this idea. Being low in morale and lacking in
determination., they merely waited for Yuan Shih-k'ai to
complete his preparations for war, thus leaving their own
fate in his hands. As a result, the Revolution met a disastrous
defeat. In the third year of the Republic [1914], Sun Yat-sen
organized the China Revolutionary Party on a basis of strict
discipline for a determined effort to realize the aims of the
Revolution. When Yuan Shih-k'ai declared himself Emperor
Hung Hsien, all citizens of the country once again realized
that our leader had not misled them with his revolutionary
platform. In other words, historical facts once more proved
that the Nationalist Revolution is the most effective means
for the rehabilitation of the Chinese nation, and that it is
also the only correct platform.

With the death of Yuan Shih-k'ai [in 1916], the country en-
tered the second period. Dissension among warlords through-
out the country led to internecine strife. The dream of the
northern militarists to achieve unification through military
conquest failed to materialize. The movement for a federation
of self-governing provinces,, serving as a mask for a feudalistic
partition of the country, produced no results. A political
set-up in which rival warlords and corrupt politicians vied for
power became bankrupt. But even in this darkest and most
miserable stage, the Nationalist Revolution saw a glimmer
of hope.

The First World War took place in this period, and for
four years the strength of the great powers England, France,
Germany, Italy, Russia, and Turkey was concentrated on
the European battleground, and their manpower, materials,

SOURCES OF THE REVOLUTION 7 1

and money were expended there. The United States granted
loans and shipped supplies to Europe, and finally also sent
its troops to participate in the great war. Great hopes were
aroused in the minds of the Chinese people, who thought
that China could now escape from imperialist oppression and
become free and independent through self-help and self-
endeavor. Moreover, China's new industries suddenly pros-
pered, the textile industry in particular undergoing a profitable
expansion. China's balance of trade, which had been un-
favorable since the end of the Ch'ing dynasty, became favor-
able, with an excess of exports. This economic progress
further enhanced the hope and self-confidence of the people.
But the warlords and politicians had no idea of modern
politics or economics, nor could they understand the people's
aspirations or express the people's will. Instead they brought
about an even greater national humiliation. This was, first,
the so-called "Twenty-One Demands" presented by the Jap-
anese imperialists, who took advantage of Yuan Shih-k'ai's
overweening desire to become Emperor. Following this, the
Japanese took advantage of the civil war policy of the Peiyang
clique [northern militarists], granted political loans [to this
clique] and later concluded the so-called cc Sino-Japanese
Military Agreement" whereby their army was sent into
Chinese territory. The Japanese army also unlawfully attacked
and seized Tsingtao and demanded the transfer to Japan of
German rights in the railroads and mines of Shantung.

This national humiliation, so contrary to the aspirations
of the people, gave rise to strong revolutionary sentiments.
The May 4th [1919] Movement was the clearest evidence of
that feeling. Under the pressure of this strong popular revolu-
tionary sentiment, the government of the warlords and poli-
ticians could not hope to survive. Even the various paper
plans for constitutional reform failed to arouse any interest
among the people. The power of the Anhwei clique had
declined, and the Chihli [Hopei] and Fengtien [Manchurian]
cliques could muster no support among the people. The

72 CHINA'S DESTINY

[presidential] election conducted by the Chihli clique was
equivalent to the digging of their own graves. When events
reached this stage, there was no way to fulfill the people's
aspirations, voice their demands, and strengthen their self-
confidence except by a Nationalist Revolution led by the
Kuomintang of China. Thus the power to the Three People's
Principles and the Nationalist Revolution, riding the thunder-
ous tidal waves of world events, rallied the entire country
unitedly beneath the banner of the blue sky and white sun
[of the Kuomintang] with one purpose: to fight determinedly
for the abolition of the unequal treaties, to lay a foundation
for the rehabilitation of the nation, and to secure freedom and
independence.

Of all the unequal treaties of this period the "Twenty-One
Demands" of the Japanese aggressors were the most brutal
and vicious. They demonstrated that the Japanese imperial-
ists' policy toward China had advanced another step, from
partition to monopolistic possession. The main points of
these "Demands" were as follows:

The first group of articles concerned Shantung. Article 4
demanded that the special privileges accorded to Germany
in Shantung be transferred to Japan by the government of
the Peiyang [northern] clique. These included mining and
other rights in Kiaochow Bay and along the Kiaochow-
Tsinan Railroad. Shantung Province, with all territory and
islands along the coast, was "not to be ceded or leased to any
other country." The right to build a railroad connecting
Yen-tai or Lung-kou with the Kiaochow-Tsinan Railroad,
and the opening of all important cities in Shantung as trading
ports were also specified. In short, Japan demanded that
the whole province of Shantung be designated as her "sphere
of influence."

The second group of articles concerned the southern part
of the Three Eastern Provinces [Manchuria] and the eastern
part of Inner Mongolia. Article 7 of Group II demanded

SOURCES OF THE REVOLUTION 73

the extension of the leases of Port Arthur, Dairen, and the
South Manchurian and Antung-Fengtien [Mukden] Rail-
roads to ninety-nine years; the right of Japanese subjects to
own or lease land, reside, travel, engage in industry and
commerce, and to extract minerals in "southern Manchuria"
and "eastern Mongolia"; the employment of Japanese in
these two areas as political, financial, and military advisers
and instructors; the right to administer and operate the
Kirin-Changchun Railway and to forbid other countries to
build railroads or invest capital in these two areas. In sum-
mary, Japan demanded the designation of the southern part
of the Three Eastern Provinces and the eastern part of Inner
Mongolia as her "sphere of influence,"

The third group of articles concerned the Hanyang-Tayeh-
Pinghsiang Iron Company. These articles demanded that
this company be made a "joint enterprise" of Japan and
China, and that Japan be given the exclusive right to operate
all mines adjacent to those owned by the company.

The fourth and fifth groups of articles concerned the whole
of China. The first article of Group IV demanded the ex-
clusive occupation by Japan of all harbors and islands along
the entire coast of China. The seventh article of Group V
demanded that China employ Japanese as political, financial,
and military advisers, and also demanded that Japanese
subjects be given the right to own lands in the interior of
China; joint administration of China's police; the right to
supply China's armaments and joint management of China's
munition works; the right to build railroads between Wu-
chang, Kiukiang, and Nanchang, between Nanchang and
Hangchow, and between Nanchang and Chaochow; the
designation of the entire province of Fukien as a Japanese
"sphere of influence"; and the right of Japanese subjects to
conduct missionary work in China. In summary, Japan in-
tended to monopolize all China as a feudatory or slave colony.

The "Twenty-One Demands" aroused the people of China

74 CHINA'S DESTINY

and shocked the world; yet, if we examine their implications,
they were really no different from all the other unequal
treaties between China and the foreign powers. [The revised
edition omits the preceding sentence.] All political, judicial,
military, police, customs, communications, mining, religious,
and educational matters all the factors of culture, national
defense, and economy essential to the maintenance of China's
statehood had long been sold out through the successive
treaties concluded with the powers. The "Twenty-One De-
mands" were simply intended to transfer the special privileges
separately enjoyed by the powers to the exclusive control of
the Japanese imperialists. Therefore, I have often said that
the spirit of the "Twenty-One Demands" was in reality
nothing more than the grand culmination of all the unequal
treaties. [The revised edition omits the phrase "nothing more
than" in the preceding sentence.]

Sun Yat-sen said: "It is easy to feel the pressure of political
power, but it is generally not easy to feel the pressure of
economic power." We may also say that the people in general
did not readily grasp the effects of the treaties fatal to the
state and enslaving to its people that were concluded piece-
meal as a result of the continuous pressure brought to bear
by the foreign powers on the Manchu and Peking Govern-
ments. But an inclusive and clear-cut set of articles, like the
"Twenty-One Demands" could be easily understood. Because
of their frank and clear-cut character, they aroused the in-
dignation and the united opposition of the entire country.
Yet it should be understood that the piecemeal concessions
previously made by the Manchu and Peking Governments
to foreign countries, whose fatal and enslaving effects upon
the state and its citizens had not been so clearly recognized,
were, just because of this popular apathy, more dangerous
than the "Twenty-One Demands." [For the phrase "more
dangerous than the 'Twenty-One Demands,' " the revised
edition substitutes, "a severe blow to the independence and
survival of the nation."]

SOURCES OF THE REVOLUTION 75

For this reason, the Revolution of the Three People's
Principles, while conducting a life and death struggle against
the monopolistic aggression of the Japanese invaders, has also
maintained equal vigilance with respect to the unequal
treaties and demanded their complete abolition. *

CHAPTER THREE

THE EFFECTS OF THE

UNEQUAL TREATIES

I. Their Effects on Government and Law

OUR Nationalist Revolution had its origin in the state's
distress and the suffering of the people. If the Revolution
fails, the state's distress and the people's suffering will deepen.
During the Revolution of 1911, China was unable to trans-
form destruction into reconstruction. During the First World
War, she was unable to throw off the bondage of the unequal
treaties and attain freedom and international equality. The
Peking Government was unable fully to grasp the oppor-
tunity and wage an active struggle for the reconstruction of
international relations in the Pacific when the chance was
first offered by the Washington Conference of 1 92 1 . Although
the "Nine Power Treaty' 9 established the principles of the
"Open Door" and "Territorial Integrity/' the specific aboli-
tion of privileges specified in the unequal treaties, such as the
recovery of concessions, the abolition of extraterritorial rights,
and the withdrawal of foreign garrisons, were either vetoed
or postponed. In particular, the signing of a treaty between
China and Japan for the settlement of pending problems in
Shantung met with successive difficulties that were not funda-
mentally solved. Moreover, the principles of the "Open
Door" and "Territorial Integrity" only deepened the indolent
psychology of the Chinese people and increased their de-
pendence upon foreign countries, since they now felt confident
that China would not be partitioned.

After the Treaty of Tientsin [1858], the despotism of the
Manchu dynasty and the aggression of imperialism no longer

76

EFFECTS OF THE UNEQUAL TREATIES 77

opposed each other but were in league with one another.
After the Revolution of 1911, the relations between the cor-
rupt warlords and the imperialists advanced another step.
Yuan Shih-k'ai's monarchy and Japan's "Twenty-One De-
mands" were interrelated. Okurna Shisenoba's interview
[published in the press under the title cc Supporting China's
Monarchy"] obviously stimulated Yuan Shih-k'ai's ambitions.
This is a concrete example that is familiar to us all.

The imperialists., in addition to employing all sorts of co-
ercion and bribery to win over the warlords in order to
obtain special privileges, intervened directly against China,
particularly in regard to border questions. Outer Mongolia
was dominated by Czarist Russia, and in 1911 it declared
its independence [of China] and the control of all internal
and external affairs in Outer Mongolia fell into Russian
hands. After the Russian Revolution, the Mongols abandoned
their independence and were planning to renew their alle-
giance to China. At that time, the Japanese, taking advantage
of the so-called "Sino-Japanese Military Agreement," incited
the Mongolian bandits and White Russians to carry out
espionage activities in Outer Mongolia. The Tibetan problem
was similarly subject to foreign influence. The British like-
wise took advantage of the conflicts between the Tibetans and
the Szechwanese and Yunnanese. Their manipulation and
control of the Dalai Lama was exactly the same as the Russian
use of the Panchen Lama. [The last two sentences in this
paragraph were omitted in the revised edition.] *

In the first year of the Republic [1912], I publicly stated
in the magazine, The Voice of the Army: "To conquer and
pacify Mongolia and Tibet, one cannot look only at the ease
or difficulty of the immediate circumstances, the advantages
or disadvantages of the situation, and adhere to a fixed
military strategy. We must carefully examine the present
circumstances of Britain and Russia and their relations to
Mongolia and Tibet and then make our decision accordingly.
When Britain and Russia insist on intervention, our country,

78 CHINA'S DESTINY

though not having the strength to declare war, should oppose
them strongly on a basis of principles, and should demand
the restoration of our sovereignty. Why does our government
not act in this way, instead of repeatedly tolerating this op-
pression, and willingly retreating and withdrawing? There
is no greater loss of our rights, no greater humiliation to our
country than this."

These remarks clearly indicate the situation in China's
border regions at that time. But were not conditions within
the country the same? After the political coup d'etat of 1898,
the Empress Dowager Tsu Hsi lived in fear of interference by
the envoys of the foreign powers resident in China with
regard to the question of whether or not to dethrone the
Emperor Kuang Hsu. At the time when Yuan Shih-k'ai
declared himself Emperor, Japan incited him behind the
scenes, though publicly Japan gave him warnings and repri-
mands. How dangerous and maliciously ruthless were the
intrigues and methods of the imperialists. Although Tsu
Hsi's stupidity and confusion and Yuan Shih-k'ai's treachery
were denounced by the Chinese people at that time, foreign
intervention [in China] set a bad precedent in international
relations. The Peking Legation Quarter, the railway zones
in the Northeastern Provinces, and the concessions in Tientsin
and Shanghai were, under the pretext of protecting foreign
residents and foreign trade, the real bases for interference in
our internal affairs. One of the most illuminating illustrations
of foreign intervention in our internal affairs was the Kuo
Sung-ling affair in 1 924, when the Japanese imperialists dis-
patched troops to the South Manchurian Railway zone and
prevented the passage of Kuo's army. This incident permitted
a further extension of the Japanese warlords' control over the
northeast [Manchuria].

The secret activities of the imperialists were actually the
chief cause of the civil wars among the warlords following
the establishment of the Republic. Extraterritorial rights
made possible the protection of their spies and secret service

EFFECTS OF THE UNEQUAL TREATIES 79

agents. Special areas like the concessions, leased territories,
and railway zones, and the special rights enjoyed by the
powers on the railroads and waterways, afforded facilities for
the powers to store and sell munitions to local warlords, thus
prolonging the internal disorders. We still remember that the
Peking Legation Quarter and the international cars on the
Peking-Mukden Railroad, as well as the Tientsin Concession,
were the main places where the militarists and politicians
plotted their political coups d'etat during the regime of the
Peking Government. The successes and defeats of the mili-
tarists and politicians; their ascension to power and their
downfall, were all based upon these [foreign-inspired and
supported intrigues]. The Manchurian and Mongolian princes
and officials of Dairen, and the defeated warlords and bureau-
crats of Tientsin and Shanghai all bowed their heads shame-
lessly and became puppets of the foreigners, serving as in-
struments for imperialism. Most heartbreaking of all was
that in what was actually China's territory, Chinese laws
could not be enforced, and China's armies could not trespass.
From this, the evils of the unequal treaties can be clearly
seen. They not only rendered China no longer a state, but
also made the Chinese people no longer a nation. They
completely destroyed our nationhood, and our sense of honor
and shame was lost. [The preceding three sentences on the
unequal treaties were omitted in the revised edition.] So long
as the unequal treaties were still in existence, how could
Chinese politics develop along the right lines? How could
China's economy be built up? When one thinks or talks about
this, can one fail to be bitter and enraged? [This sentence was
deleted from the revised edition.]

The unequal treaties even went a step further in destroying
China's national defenses. During the early years of the reign
of Kuang Hsu, Li Hung-chang planned coastal defenses,
trained a navy, and erected fortifications in important har-
bors. In the War of 1894, the North Sea naval squadron
was defeated. The Treaty of 1901 explicitly required China

8o CHINA'S DESTINY

to raze "the Taku Fort and any forts obstructing communi-
cations between the capital and the sea." Thus, the defense
of the capital was destroyed, and China's right to national
defense was completely abolished.

The Tientsin Treaties between China and Great Britain,
the United States, France, and Japan had already provided
that foreign warships could enter any harbor in China, and
also permitted them to anchor in any treaty port. As a result
of the "most-favored nation 55 clause, other countries also
enjoyed these special privileges. Thus any foreign warships
could sail and anchor in Chinese waters and inland rivers;
China became an "open house 5 ' and the imperialists could
do as they pleased. The ports where they concentrated were
either the economically developed cities or the political and
cultural areas. Whenever any issue was to be negotiated, the
foreign navies could take off the gun covers, threaten the
Chinese officials and merchants, and coerce the Chinese
Government or local authorities into recognizing their de-
mands. Under the "Gunboat Policy" China could only ac-
quiesce in whatever they demanded.

The stationing of foreign troops in Chinese territory was
of two categories. In some cases it was based on treaty pro-
visions; in others it was not provided for by treaties. The
stationing of troops in leased territories, and the foreign gar-
risons in the Legation Quarter and along the Peking-Mukden
Railway, were based on the terms of the 1901 Treaty, The
stationing of all other foreign troops in China was not ex-
plicitly provided for in any treaties. As for the Russian gar-
rison on the Chinese Eastern Railway and the Japanese
garrison on the South Manchurian Railway, not only was
there no treaty provision for such garrisons, but the "railway
zones" was a term evolved by a misinterpretation of the
treaties. Garrisons in the concessions were also not provided
for by treaty, but developed from actual practice.

The foreign consular police and the concession police were
also not based on treaty provisions. On the excuse that en-

EFFECTS OF THE UNEQUAL TREATIES 8 1

forcement of consular jurisdiction required a police force, the
consuls of the various countries organized police forces., and
the police department of the "Joint Court" in the Shanghai
Concession was expanded to form the "patrol station" of the
"Department of Public Works."

This equipping of troops and police meant that the "diplo-
matic areas" and "concessions" were definitely states within
a state. Many states and political authorities were established
within Chinese territory, and furthermore, the activities of
foreign troops and police were not confined to these special
areas. The number and duties of these troops were far in
excess of what was required to carry out the Consular Court
decisions. The Japanese garrisons and police in the northeast
[Manchuria] were especially undisciplined. Incidents such
as the Cheng-chia-tun incident of 1916, the Chang-ch'un and
Foochow incidents of 1919, and the Miao-chieh and Huei-
ch'un incidents of 1920 all occurred because Japanese troops
and police stationed in China ran amuck and wantonly shot
and killed Chinese citizens and attacked Chinese soldiers.
In addition, there were innumerable incidents in which con-
cession police and foreign troops intimidated Chinese soldiers
and shot and killed Chinese citizens. For example, the Lao-
hsi-kai incident of 1915, the May 3Oth [1925] incident in the
Shanghai International Settlement, the tragic affairs [June
1925] in the Hankow Concessions and in Shakee [Sha-chi],
Canton will be forever remembered by our people as causes
of shame and humiliation. [In the revised edition, "causes of
shame and humiliation" was changed to "facts."]

In Chinese territory, the troops and police of the imperial-
ists could wantonly fire on Chinese soldiers, police, merchants,
and citizens, while Chinese soldiers and police could not
fight back. If Chinese soldiers and police made any move,
the imperialists would immediately threaten them with war.
Their armies would be mobilized; their navies would get up
steam; and a series of strongly worded diplomatic notes
amounting to ultimatums would follow. The Chinese Govern-

8s CHINA'S DESTINY

ment and the people were conditioned to fear foreigners;
treacherous officials took advantage of the opportunities of-
fered to exploit the people; rich families transferred their
wealth to the concessions and entrusted it to the protection
of foreign troops and police. It became the established custom
for Chinese banks, treasuries, greedy officials, and big mer-
chants to use the concessions as a refuge for themselves and
their fortunes. Thus a few foreign soldiers and police, who
originally were only a symbol of imperialism, became a
mighty power that throttled both the social and political life
of China. As a result, when Chinese soldiers and officials
were threatened by imperialists, they not only lacked courage
to fight back, but did not even think of fighting back. This
was the sad and tragic state into which the nation had fallen !
The soldiers, whose morale had been undermined by the
unequal treaties, completely lost their sense of responsibility
to the state.

Confronted with China's demand for the recovery of all
legal rights, the foreign powers always used the inadequacy
of Chinese laws and prison regulations as an excuse to oppose
it. But, during the past hundred years, Chinese judicial rights
were not exercised in the foreign concessions, and as a result
the concessions became havens for criminals, the prestige and
dignity of Chinese laws were destroyed, and the law-abiding
habits of the Chinese people impaired. Moreover, the courts
and prisons within the concessions,"as far as regard for human
life, law and fair trials were concerned, compared most un-
favorably with Chinese courts and prisons. Specifically, the
inhuman torture of Chinese by the concession police was
without human decency and is unbearable even to describe.
[In the revised edition, this sentence was changed to "The
unfair and unlawful treatment of the Chinese by the con-
cession police is unbearable even to describe."] After a Chinese
had been arrested, there was no way for him to receive a
public trial, and in a [secret] trial, he could hardly receive a
fair sentence. The wealthy were released on large bail, and

EFFECTS OF THE UNEQUAL TREATIES 83

allowed to move about freely, while the poor remained under
sentence and endured cruel treatment, with no opportunity
to prove their innocence. Such cruel methods were seldom
seen even before the reforms in China's judicial and peni-
tentiary systems. Chinese officials had no authority to in-
vestigate a legal case involving foreigners, nor to inquire into
the injuries and tortures suffered by Chinese citizens in the
police stations of the concessions. Nor was there any means
of bringing such Chinese citizens under the protection and
jurisdiction of Chinese law. It is clear from this that the
effect of the unequal treaties upon the administration of
Chinese law not only impaired the virtue and infringed on
the human rights of the Chinese people, but also broke the
world law of justice and humanity. As a result, the recovery
of legal jurisdiction and the attainment of tariff autonomy
became the two basic points in the movement for the abolition
of the unequal treaties. These two points represented the
unanimous demand of the Chinese people, and were also the
most important objectives of the Chinese Nationalist Revolu-
tion.

2. Their Effects on Economics

The effect of the unequal treaties on China's economy also
originated in the foreign concessions and areas where foreign
troops were stationed. The agreement on customs and extra-
territorial rights constituted the two instruments of foreign
economic aggression. Furthermore, the right of the foreign
powers to sail in inland waters, to trade along the coast, to
establish factories in treaty ports, to build railroads, open
mines and issue currency through their own banks, all tended
to increase the effects of their economic aggression and caused
the Chinese economy to suffer inestimable losses.

Sun Yat-sen pointed this out to us, saying: "Oppression by
economic power is more severe than oppression by political
power. Oppression by political power is visible, but when one

84 CHINA'S DESTINY

comes under oppression by economic power, ordinarily one
is not easily aware of it. 55 The Father of our Country was the
first to emphasize the losses incurred from having our mari-
time customs under foreign control, and our customs revenues
determined by agreements with foreign powers. Following
the Treaty of 1 901 , which required China to pay an indemnity
to the foreign powers, receipts from the Chinese Maritime
Customs were mortgaged; control of the customs fell into the
hands of foreigners, and the surplus funds after the payment
O f deb^the so-called cc Customs Surplus" were also under
foreign control. Then too, the tariff, jointly regulated by the
powers, provided for very low rates on foreign imports and
prevented Chinese industries from receiving tariff protection
to safeguard their existence and expansion. As a result, our
markets were flooded with foreign commodities and domestic
products could not be distributed. In consequence, the tradi-
tional handicraft industries declined and the newly estab-
lished machine industries were unable to prosper. China's
unfavorable balance of trade increased with the years, and
her economy became weak and impoverished.

Sun Yat-sen also pointed out that the issuing of currency
notes by foreign banks in China caused China to suffer a
heavy loss. The people of our country, affected by the poison
of foreign economic oppression, trusted these foreign cur-
rencies, thus enabling the foreign banks to use their own notes
for the purchase of Chinese commodities. Deposits in foreign
banks constituted an additional heavy loss for China. Chinese
deposited their money in the foreign banks in the concessions,
and these banks invested this capital in China, thus deriving
both interest and profits. These revenues, together with land
rents and the profits derived from speculative enterprises in
the concessions and from foreign-controlled industry and
commerce in China, all depended upon the special privileges
accorded by the unequal treaties. These combined losses to
China caused our social structure to decay and threatened
our people's chance of survival. The number of unemployed

EFFECTS OF THE UNEQUAL TREATIES 85

and bandits increased steadily, and national distress mounted.

In the course of Chinese history, the key area of China's
economy has shifted three times. During the Ch'in and Han
dynasties, the greatest economic development occurred in
the Yellow River Valley. From the period of the Three
Kingdoms to the Sui and Tang dynasties, economic activity
in the Yellow River Valley declined, and was superseded by
the economic development of the Yangtze River Valley. From
the Sung to the Ch'ing dynasties, the state gradually came to
depend upon the wealth and tribute of the southwest. After
the Yuan dynasty fell, land communications between the
continents of Asia and Europe were broken, and the cities of
western China gradually declined in importance. The sea-
borne commerce of Spain, Portugal, Holland, and England
extended to the China coast, and the southeastern cities
consequently flourished. Thus, the economic pattern of China
for the past one thousand years can, in general, be described
by the saying: "Use the wealth of the southeast to support
the armies of the northwest." However, the basis of our
country's economy was agriculture. And because agriculture
was evenly distributed throughout the country, except in the
border regions, there was a similarly even distribution of
population. The policy of successive governments with regard
to the development of communications was always based on
the principle of paying equal attention to all parts of the
country. And although the trend of economic development
was from the rivers toward the coast, the economic structure
of the country does not appear to have been one-sided.

But after the conclusion of the unequal treaties, the foreign
concessions became the centers of newly developed industrial
and commercial enterprises, and year after year our country's
economic life was increasingly concentrated in these areas.
Railroads and steamship lines originated from the treaty
ports and extended into the interior. Traditional handicraft
industries became bankrupt, and agriculture began to de-
generate. In the impoverished agricultural villages, irrigation

86 CHINA'S DESTINY

ditches went unrepaired, dikes deteriorated, famine spread,
and hamlets became wildernesses. This was all due to the
effects of the unequal treaties, which truly caused "the old
and the weak to die in gutters, and the strong to wander in
all directions [i.e., become bandits]."

Within the concessions, the only ones that prospered were
the compradors [Chinese merchants and officials that became
brokers for foreign capital], who distributed foreign goods and
dealt in raw materials. Therefore, although the markets were
prosperous, the buildings rich and impressive, and the popu-
lation steadily increasing, no productive enterprises developed
in these ports because they could not absorb the wandering
and homeless people from the agricultural villages. Many of
these people then became bandits or wandering brigands, and
when civil war and banditry drove capital out of the interior,
it tended to be concentrated in the concessions. This capital
was invested in speculative activities which, not being based
on productive enterprise, soon collapsed and created panics
in banks, stock exchanges, trust companies, and currency
markets.

Economic reconstruction is the essential first step toward
national defense reconstruction, and must have its foundation
in the national economy. Under the unequal treaties, there
was no way to promote economic reconstruction for national
defense, and the abnormal development of the national econ-
omy could not be adapted to the defense needs of the state.
Our industrial and commercial enterprises were concentrated
in the main coastal centers such as Dairen, Tientsin, Tsingtao,
Shanghai, Amoy, and Canton, which were all under the
control of the imperialists 3 "Gunboat Policy 53 and particu-
larly subject to blockade by the Japanese. The main com-
munication routes were based on these easily blockaded cities
and penetrated from them to all parts of the interior. But the
interior itself lacked modern means of communication and it
was necessary to use foreign railroad routes and steamship
lines to travel from one interior locality to another. As a

EFFECTS OF THE UNEQUAL TREATIES 87

result, the national economy of China was divided into several
areas, each centered around one or more foreign concessions
of leased territories, which served as their economic outlets
and thus controlled them. Under such economic conditions,
if China had endeavored to wage war against the imperial-
ists, they could have blockaded our few ports and this would
have been sufficient to strangle the country's economic life
and cut the arteries of our communications. It is obvious that
this situation left no room for even a discussion of national
defense. Thus, under the effects of the unequal treaties, Chi-
na's economy reached a point at which the state could not
protect itself, and the people could barely exist.

3. Their Effects on Society

The effects of the unequal treaties upon Chinese society
must be studied in relation both to the social structure and
to social traditions and popular morale. Let us first discuss
the effects of the treaties on the social structure.

China's [original] social structure, from the standpoint of
blood relationships, proceeded from the individual to the
family and then to the clan. From the standpoint of regional
divisions, it proceeded from the family clan to the pao chia, 1
and then to the village community. These two sets of relation-
ships were clearly distinguished, and the ancient sages and
scholars devoted most of their efforts to formulating the pre-
cepts governing each of them. From the admonitions and
regulations governing the individual's conduct in the family
there developed the rules of family propriety and clan regu-
lations. In the pao chia, there were pao contracts [for mutual
protection]; in the villages and communities, there were
village agreements and community regulations. The spirit of
self-government was sufficient to ensure individual and family
behavior without depending on legal intervention. The spirit
of mutual co-operation was sufficient to ensure planning for

i. For an account of the pao chia system, see footnote on p. 134.

88 CHINA'S DESTINY

the public benefit without the need for government super-
vision. With regard to education, there were village and
community schools. As for relief, there were free lands and
free storage of grain in community warehouses. With regard
to protection against robbery and the apprehension of crim-
inals, there was the pao chia system of collective responsibility.
As to dikes and irrigation works, roads and rivers, there was
none that was not built or dredged through the joint effort
of villages and communities.

Mencius stated: "Be friends when you are coming in and
going out; co-operate when you are on patrol duty; give
assistance when there is sickness." He also said: "Stress the
observance of ranks and positions [social status], amplifying
it with the doctrines of filial piety and brotherly love." Li
Yun stated: "The aged have their fulfillment; youths have
their usefulness; widowers, widows, orphans, and childless
ones are supported."

Such ideals were traditional in Chinese society and showed
their practical results. But during the past hundred years, as
a result of the oppression of the unequal treaties, the welfare
of the agricultural villages declined, while life in the cities
became extravagant. As a result, the traditional structure of
the family, the village, and the community was disrupted.
The virtue of mutual help was replaced by competition and
jealousy. Public planning was neglected and no one took an
interest in public affairs. Chinese society not only lost the
incentive to encourage the good and eliminate the bad, but
the country also lost the foundation for a strict and uniform
policy of administration and economic development.

During the past five thousand years, our country's sages
and scholars devoted their lives to teaching and advocating
the ideals of social conduct. They realized that changes in
social traditions and morale determine whether there is order
or chaos in the state, and whether the nation survives or is
destroyed. They therefore devoted themselves to training men
of loyalty, generosity, sincerity and honesty, and to cultivating

EFFECTS OF THE UNEQUAL TREATIES 89

the traditions of friendliness, harmony, simplicity, and thrift.
Consequently, though our history was marked by alternate
periods of order and chaos, and of prosperity and decline,
our social traditions and public morale retained their honesty
and sincerity, diligence and modesty, virtue and righteous-
ness, thrift and honor. These were the fundamental reasons
why our nation was able to survive for so long.

But, under the oppression of the unequal treaties during
the past hundred years, these social traditions and popular
morale were gradually destroyed. If we examine the social
habits [of that period], we find that the average citizen be-
came disorderly and lacking in logic, as revealed by his
recklessness and dissipation, his stupidity and confusion. No
one was sincere and practical, and work was not done swiftly
and promptly. The psychology of untrustworthiness, false-
hood, and indolence was everywhere apparent. The people
followed a blind routine; they were hesitant, careless, lacking
in confidence and determination. They benefited themselves
at the expense of others; promoted their private interests and
neglected public affairs; and failed to understand the nature
of the state or of the nation. They possessed no virtue or
righteousness, no sense of thrift or of shame. The decline of
the nation's virtue could not have been more extreme.

One of our ancient sages said: "Do not refrain from good
deeds because they are little, nor proceed with evil ones
because they are small." Every citizen should examine his
thoughts and actions in his daily life; abandon self-interest
and concern himself with the public good; work for the
benefit of others, and at all times place the interest of the
state and the nation above all else; cultivate simplicity and
not extravagance, honesty and not deceit. Only by so doing
can we fulfill our ideal of seeking happiness for society and
the state. We should bear in mind the fact that the sages and
heroes of history were honored and respected by the people
only because each of them performed meritorious service to
society and the state. Their thoughts and actions became

go CHINA'S DESTINY

social standards of right and wrong, good and evil. Therefore
we should emulate the sages, worship the heroes, and follow
the precepts of our forefathers in order to strengthen our own
virtue and integrity.

For the past hundred years under the oppression of the
unequal treaties, the people fell into decadent habits and evil
practices in their daily life. Each person took his own selfish
interests as the basis for determining right or wrong; his
selfish desires as a basis for determining good or evil. As a
result, depraved and frivolous persons attained power in the
villages, and scheming citizens pursued their lawless way in
the towns and cities, sacrificing public welfare and other
people's happiness for their own selfish ends. Furthermore,
literary theories and political writings were used to conceal,
or even to justify the evils of this way of life. These writings
glorified selfish desires and the quest for profit in order to
incite social struggle. The tradition of emulating the sages,
worshiping the heroes, and following the precepts of our
forefathers not only tended to perish but was despised by the
people. They even praised foreign figures and scorned the
history of their own country. Confidence in the state declined,
and the self-confidence of the people lost its center of gravity.
As a consequence, the nation became like a pan of loose sand,
and the state fell into disintegration and disunity; the people
failing to realize that when the nation and the state are in
danger of dismemberment, there is nothing that the individual
can depend upon for his own existence.

The ancient sages said: "Propriety, righteousness, modesty,
and honor are the four pillars of a state. If the four pillars are
not strong, the state will perish." When we think and speak
of the future, must we not tremble? Must we not be ashamed
and disturbed?

^. Their Effects on Ethics

The evil effects of the concessions and consular jurisdiction
upon China's ethics were limitless. The Nanking Treaty was

EFFECTS OF THE UNEQUAL TREATIES 9 1

signed at the conclusion of the "Opium War." That war was
caused when Governor Lin Tse-hsu of Hu-Kwang [Hunan,
Hupeh, Kwangtung, Kwangsi] prohibited the transport of
opium to Canton. The import of opium at that time, valued
at from twenty to thirty million taels annually, was, as Huang
Chueh-tzu said, "using China's money to fill a bottomless
foreign pit and taking in exchange a poison for mankind
which gradually turns China into a sick nation. 55 As Lin Tse-
hsu declared: cc lf opium is not completely prohibited, the
country will gradually become poor, and the people will
gradually grow weaker. After several decades, there not only
will be no source of government revenue, but also no effective
army."

After China's defeat in the Opium War, the maritime
customs had no means of stopping the entry of opium and
other poisonous commodities, and the concessions and con-
sular jurisdiction protected their transportation and storage.
The smoking of opium was strictly forbidden by the laws of
the country, but these laws could not be extended to the
concessions and smoking could still be openly practiced there.
Furthermore, following the Russo-Japanese War, the Jap-
anese imperialists who coveted our territory applied the
"poison policy" as one of their practical methods [of pene-
tration]. Such vicious methods, because of the protection
rendered them by the unequal treaties, could not be pre-
vented by the Chinese Government beforehand, nor their
effects restricted. Japan's plan of poisoning us became more
and more open, and the degree of poisoning increased in
severity. The damage from opium was less than that from the
"red pills," and the damage from "red pills" was less than
that from the "white powder" [various forms of heroin and
other narcotics]. In many towns and villages in the northeast
[Manchuria] and in Hopei and Shantung, the entire popu-
lation was found to be using "white powder." The Japanese
sold the poison along the coast and the Yangtze Valley, and
even penetrated far into Szechwan and Hupei. They also

02 CHINA'S DESTINY

compelled Koreans to violate the law in Peiping and Tientsin,
and Formosans to do likewise in Fukien all of them making
the peddling of poison drugs their exclusive profession, with
a view to poisoning our people until our country could be
dismembered and our race eliminated.

The concessions were not only the source of drugs, but were
also havens for prostitutes, gamblers, thieves, and bandits.
When economic conditions in the interior were poor, the
people migrated to the cities. But it was difficult to find
employment and they were therefore forced to sell their sons
and daughters, and fell into the evil habits of prostitution
and kidnaping. Thus, during the past hundred years, beautiful
and prosperous cities became hells of misery and chaos. As
for gambling, its damage was not limited to the rich., but
also spread to the poor. The rich lost their fortunes and went
bankrupt, and the poor lost their livelihood and met disaster.
Once tainted with the habit of gambling, the social order
became completely lawless. The people's minds were para-
lyzed and their morality destroyed. Moreover, the practice
of gambling was not limited to the gambling dens, but ex-
tended from lotteries to speculative activities in the market
activities that did not follow the laws of production and ex-
change, but depended solely on luck to obtain unmerited
profits. The concessions became the concentration points for
surplus capital, but there were no well-established industries
to employ this capital. Consequently, many people, both rich
and poor, engaged in gambling, spent money lavishly in
houses of prostitution, and became paralyzed with drugs*
After having gone bankrupt and broken up their families,
they degenerated into thieves and bandits, using the con-
cessions as their hideouts and engaging in all sorts of criminal
activities. China's five-thousand-year-old tradition of dili-
gence, thrift, and simplicity, of cotton clothes and a simple
diet, of women weaving and men farming, were completely
undermined by the opium, gambling, prostitutes, and thugs
of the concessions.

EFFECTS OF THE UNEQUAL TREATIES 93

China's ancient philosophy of ethics is based on a careful
and thorough study of the interrelations of human society.
Although social organization is in a state of constant evolu-
tion, yet the principles of the relations between father and
son, husband and wife, elder brother and younger brother,
friend and friend, between higher and lower ranks, the hon-
orable and the humble, men and women, old and young,
down to the duty of neighbors to protect each other and care
for the sick, have remained the unchangeable ethical rules of
social life. During the past hundred years, with the spread of
the wanton customs of the concessions, the people not only
neglected these ethical principles, but discarded and scorned
them. As a consequence, between father and son, husband
and wife, brothers, friends, high and low, old and young,
neighbors and communities, there was no thought of recip-
rocal love and reciprocal friendliness, and above all, the
virtue of co-operation and sense of unity were lost. Everything
was planned for material interest, with a total lack of self-
discipline. Duty was shirked in the struggle for profits. The
high and the low deceived each other, and the people cheated
one another right and left. The old and the weak received
no consideration or relief, and the sick received no help.
The people treated their own blood relations as strangers,
and regarded their fellow countrymen as enemies. And they
failed to recognize the error of such unethical and abnormal
behavior. They transformed China, a propriety-loving and
virtue-respecting country, into a country without modesty or
shame. Such was the evil effect of the unequal treaties. If
this can be tolerated, then what cannot be tolerated?

The steady deterioration of the people's virtue affected
their physical condition, causing them to grow weaker day
by day. The physical strength of the countless numbers of
unemployed in the cities was, of course, completely exhausted,
and as the merchants and ordinary people became accustomed
to a life of luxury and dissipation, their health also deterio-
rated. The most serious danger was the threat to the health

94 CHINA'S DESTINY

of the youth in the schools. Physical training could not include
the entire student body, and ethical training had long been
neglected by the principals and teachers. A life of luxury and
dissipation outside the schools lured the youth and caused
them to become physically weak and mentally decadent,
while contagious diseases and syphilis from the cities further
undermined their health. How could these physically and
mentally weakened youths, after leaving school, promote
scholarship, or reform the people's way of life so that they
could assume the responsibilities of the state and develop
social enterprises? It was indeed impossible to predict when
this degeneration of the state and decline of the nation would
end.

5. Their Effects on Psychology

The effects of the unequal treaties on the psychology of the
Chinese people were as serious and harmful as their effects on
politics, economics, and national defense. Some people argue
that the missionary and educational work carried on by
foreigners in different parts of China constitutes cultural
aggression. Others, recognizing that many of the schools es-
tablished by foreigners in China have been well run and
beneficial to society and the people, deny that China has
experienced cultural aggression. In my opinion, both these
arguments show a lack of clear understanding of the focal
point in the problem of Chinese thought and culture during
the last hundred years.

From the record of history we can see that the character
of the Chinese nation is marked by self-respect but not con-
ceit; humility but not subservience. The statement "to be
upstanding but not boastful, to be humble but not efface
oneself 3 is a correct explanation of our nation's virtuous
character, The attitude of our nation toward foreign religion
and teachings, therefore, should be determined on the basis
of our own character.

EFFECTS OF THE UNEQUAL TREATIES 95

With regard to religion, China's own philosophy of life,
developed by Confucius, amplified and propagated by Men-
cius, and further explained by the Han scholars, automati-
cally became a lofty system, superior to any other philosophy
in the world. 2 Yet the Chinese nation also accepted foreign
religions and was able to select the most profound philosoph-
ical principles of those religions and develop them together
with China's own ancient philosophy of life. Thus, after the
Tsin and Wei dynasties, Buddhism from India and Central
Asia was introduced into China. During the Sung and Yuan
dynasties, Mohammedanism was introduced into China. At
the end of the Ming and the beginning of the Ch'ing dynasties,
Christianity was introduced into China. And all of these have
benefited Chinese thought and learning. Because of this at-
titude toward religion, there were never any religious wars
in Chinese history, such as those that took place in medieval
Europe. During the past hundred years, Christianity in China
exercised a beneficial effect in introducing scientific knowledge
and reforming social traditions. The T'ai-p'ing revolution
was based upon the teachings of Christianity. And even in
the Nationalist Revolution, the principles of Christianity
played an important part.

However, during the last hundred years, the Christian
churches, because of their reliance on the unequal treaties,
enjoyed special privileges and paid no attention to the spirit
of the Chinese nation. As a result, some people came to regard

2. Confucianism is the philosophy fucian philosophy to later stages of
expounded by Confucius, who lived Chinese social development, however,
from 551-479 B.C. Confucius is the inevitably served a reactionary pur-
Latinized version of the title, K'ung pose, since this philosophy provided
Fu-tzu, or "the Master K'ung," the ideological basis for preserving a
K'ung being his family surname. feudal society. The present Kuomin-
Confucius was the leading sage of tang hierarchy has developed an ex-
ancient China a philosopher and tensive propaganda literature sustain-
statesman at a time when the Demerging ing their right to positions of power
feudal society was fighting the en- on the basis of Confucian ideology,
trenched slave society. As spokesman They have even attempted to emascu-
for the new feudal order, Confucius late and pervert the teachings of Sun
played a progressive role in China's Yat-sen to support their adaptation
history. The application of the Con- of Confucianism to present-day China.

g6 CHINA'S DESTINY

foreign missionary work as cultural aggression, and even went
so far as to regard it as an enemy. Thus, the unequal treaties
caused untold harm to the religious teachings of the Christian
church. It is for this reason that I say that the unequal treaties
only damaged the Christian church and brought it not a
single benefit.

As for China's ancient learning, the wisdom and ability
of the Chinese nation have made great contributions to human
progress. For example, the dredging of the Yellow, Huai,
Yangtze, and Han rivers dates back to the time of Ta Yu
[Emperor Yu, legendary founder of the Hsia dynasty, 2205
B.C.]. The magnificent construction of the Great Wall was
completed in the Ch'in dynasty. The Grand Canal was com-
pleted in the Sui dynasty. Other achievements include such
things as the compass, gunpowder, arms, printing, and other
mechanical inventions, and particularly accomplishments in
law, mathematics, music, and medicine. One need only ex-
amine our past history to discover that the glories and the
scope of our ancient Chinese learning cannot be equaled in
the history of any of the strong Western nations of today.
In spite of this, however, the Chinese nation was still able to
absorb and adopt foreign culture and learning for its further
advancement. And because China could absorb other forms
of civilization, her own civilization became even broader and
greater. However, China's culture and learning have their
own ancient standards. China was able to absorb other forms
of civilization and learning precisely because she had her own
standards and her own system by which to judge these other
forms of civilization. Thus, when foreign civilizations were
transplanted to China, they became a part of China's national
economy and of the people's livelihood, and thus could remain
indefinitely as part of China's civilization.

For the last hundred years. Western science has greatly
benefited Chinese civilization. This cannot be denied. After
the Opium War, in the belief that the Western powers were
rich and strong because of their guns and ships, the Chinese

EFFECTS OF THE UNEQUAL TREATIES 97

people began to study the technique of making guns and
ships. After the War of 1894, the Chinese people also began
to study foreign social and political institutions. Famous works
of Western social science were translated into Chinese. Dis-
cussion of Western social and political theories began to
appear in magazines and newspapers. For several decades
after this, as a result of discussion, popular study, comparison,,
and observation, China's applied science, natural science, and
social science all made progress. In some fields, we even made
important new contributions to human knowledge. The power
and prestige of science was fully recognized in Chinese
thought and learning.

On the other hand, during the past hundred years, China's
civilization showed signs of great deterioration. This was
because, under the oppression of the unequal treaties, the
Chinese people reversed their attitude toward Western civili-
zation from one of opposition to one of submission, and their
attitude toward their own civilization changed from one of
pride to one of self-abasement. Carried to extremes, this at-
titude of submission [to Western theories] became one of
ardent conversion and they openly proclaimed themselves
loyal disciples of this or that foreign theory. Similarly, the
attitude of self-abasement was carried to such an extreme that
they despised and mocked the heritage of their own civiliza-
tion. We should bear in mind that from the Opium War down
to the Revolution of 1911, the unanimous demand of the
people was to avenge the national humiliation and make the
country strong, and all efforts were concentrated on enriching
the country and strengthening the army. In other words, it
was our unwillingness to become slaves that first caused us to
study Western civilization. It follows that we should also
study Western civilization for the purpose of winning our in-
dependence and making China strong. Unfortunately, after
the Revolution of 1911, the will to avenge our national hu-
miliation and make the country strong perished with the
failure of the Revolution, and the effects of the unequal

98 CHINA'S DESTINY

treaties were further deepened after this failure. Unconscious-
ly, the people developed the habit of ignoring their own tra-
ditions and cultivating foreign ways; of respecting foreign
theories and despising their native teachings; of depending
upon others and blindly following them. Thus., although the
Chinese people originally studied Western civilization because
of their unwillingness to become slaves, the result was that
they unconsciously became the slaves of foreign theories be-
cause of their studies of Western civilization.

After the May 4th [1919] Movement, the ideas of Liberal-
ism [Democracy] and Communism spread throughout the
country. But those that advocated these ideas had no real
knowledge of the enduring qualities of Chinese culture; they
were simply looking for something new. Moreover, they
merely endeavored to copy the superficial aspects of Western
civilization without attempting to adopt its basic principles
for the benefit of the Chinese economy and the people's
livelihood. As a result, the educated classes and scholars gen-
erally lost their self-respect and self-confidence. Wherever the
influence of these ideas prevailed, the people regarded every-
thing foreign as right and everything Chinese as wrong. [In
the revised edition, the foregoing passage was altered to read:
"After May 4th, two types of thought individualistic Lib-
eralism and class-war Communism were suddenly intro-
duced among the educated classes and spread throughout the
whole country. ... As a result, the educated classes and
scholars generally adopted the superficial husks of Western
culture and lost their own respect and self-confidence lost
their confidence in Chinese culture. Wherever the influence
of these ideas prevailed, the people regarded everything for-
eign as good and everything Chinese as bad."] 3 They wor-

3. The May 4th Movement of 1919 turbulent new forces unleashed by the

was a great movement of students and First World War. In specific protest

intellectuals that marked the begin- against the terms of the Versailles

ning of China's modern revolutionary Treaty as they affected China, and

history. It was both anti-imperialist against the terms of Japan's infamous

and antifeudal, and represented the "Twenty-One Demands/* huge stu-

reaction of Chinese intellectuals to the dent demonstrations were held in

EFFECTS OF THE UNEQUAL TREATIES 99

shiped this or that foreign country in a similar manner. Dif-
ferent cliques existed among them only because there was
more than one country and more than one foreign theory in
the world. Each clique imitated one particular country and
worshiped one particular theory, forming a group around its
particular one, and declaring that all who belonged to that
clique were right and all who did not were wrong. Since the
theories of the various countries were constantly changing,
each of these cliques had to change its theories repeatedly in
accordance with these foreign changes. Their ideas circulated
widely and disturbed the people. But from an objective point
of view, their ideas and proposals did not coincide with our
nation's psychology and character, and from the subjective
point of view, they lacked a solid foundation, since they were
based on foreign theories and were constantly having to
change. Thus, all the movements led by them lasted only a
short time.

If we examine the theories and political proposals put
forward since the Revolution, we find that all of them were
copies of foreign theories. In 1913, the arguments for a par-
liamentary system, a cabinet system, and a presidential system
in reality reflected the differences between the British, the
French, and the American political systems. In 1920, the
opposing theories of a centralized as against a federal state
reflected the differences between the French and the American
systems of local government. The theoretical basis of the

Peking on May 4, 1919 to denounce pedition of the Revolutionary Armies

the pro-Japanese Peking Government. from December, 1926, to March,

This revolutionary tide spread rapidly 1927, triumphed over all warlord op-

throughout China, spearheading a position, but the Revolution sustained

rapid growth of a strong labor move- a serious setback when the right-wing

ment and culminating in the reor- elements in the Kuomintang under

ganization of the Kuomintang in Chiang Kai-shek's leadership, soon

1924 and the establishment of a followed by the faction led by Wang

united front between the Kuomintang Ching-wei, broke the united front and

and the Chinese Communist Party, launched a campaign of severe re-

This united front laid the foundation pression against the Communists,

for the Nationalist Revolution of peasants, and workers.
1925-27. The famous Northern Ex-

ioo CHINA'S DESTINY

monarchy of Yuan Shih-k'ai was provided by an American
editorial, and the constitution of Tsao K'un was an exact
copy of the Weimar Constitution of Germany.

As for the struggle between Liberalism and Communism,
it was merely a reflection of the opposition of Anglo-American
theories to those of Soviet Russia. Not only were such political
theories unsuited to the national economy and the people's
livelihood, and opposed to the spirit of China's own civiliza-
tion, but also the people that promoted them forgot that they
were Chinese and that they should study and apply foreign
theories for the benefit of China. As a result, their copying
[of Western theories] only caused the decay and ruin of
Chinese civilization, and made it easy for the imperialists to
carry on cultural aggression. China's theoreticians and polit-
ical leaders, either directly or indirectly, intentionally or
unintentionally, adopted the theories and interests of the im-
perialists as their own, and forgot their own origin and the
purpose of their study. They even maintained this attitude
in social propaganda and education, thus causing the people
to accept without question the unequal treaties and the ag-
gression and exploitation of the imperialists. This is the
greatest single danger of cultural aggression, and the greatest
threat to the nation's spirit. We citizens must wake up in
time and correct this attitude. Only thus can we save our
country and make China strong and independent, with a
position of equality among the other nations of the world. 4

4. This sharp criticism of those the Third International." When CM-
Chinese leaders that accepted foreign ang became anti-Communist, he went
political theories ignores the fact that to Tokyo to interview the notorious
Sun Yat-sen himself based his political Toyama, and stated that China and
theories primarily on Lincoln's con- Japan must unite. Still later, following
cept of "government of the people, by Hitler's rise to power, he sent another
the people, and for the people," son to study in Germany, and em-
coupled with theories derived from ployed German Reichswehr officers as
the Soviet Union. It is also interesting military advisers. And even today he is
to note that Chiang Kai-shek himself employing a large number of Western
visited the Soviet Union for six months political, economic, and military ad-
in 1923, sent his eldest son to study visers. These actions hardly harmonize
there, and publicly declared that with his professed contempt for foreign
"China's Revolution must be led by theories.

EFFECTS OF THE UNEQUAL TREATIES IOI

6". National Self-Examination and Self-Criticism

[This entire section was added in the revised edition]

The previous chapter outlined the reasons for the imposition
of the unequal treaties, and this chapter has explained the
severity of the damage done by those treaties, with a view to
proving by historical facts the truth that "people insulted you
only because you had insulted yourself," and that "the
country was subjected only because it had subjected itself."
It was written in the hope that our citizens would subject
themselves to self-examination and self-criticism. We must
recognize that nations which become strong through their
own efforts can surely obtain a position of equality and in-
dependence among the other nations of the world. Our
numerous national humiliations of the past all resulted from
the fact that we debased ourselves and scorned our own
cultural heritage. Therefore, every national humiliation and
every clause in the unequal treaties should serve as a basis for
self-examination and self-criticism. The reason that I stress
this repeatedly is because I wish all citizens to recognize our
past sufferings and difficulties, and to understand the heavy
responsibilities that await us in the future, so that we may
free ourselves from past evils and struggle earnestly to become
modern citizens, fitted for the new destiny that is assured by
the abolition of the unequal treaties.

If our citizens fail to practice severe self-examination and
sfelf-criticism, and continue to cherish a narrowly national-
istic viewpoint, nurse grievances, and retain the reactionary
attitudes of conceit and self-satisfaction, then they cannot
live up to the spirit of nation-building and cannot be regarded
as true supporters of the Three People's Principles. Therefore,
at this time when the unequal treaties have been abolished,
our citizens must be especially careful to maintain their self-
respect, to ignore past wrongs and forget old grievances, and
to work together with all friendly powers in sharing the

iO2 CHINA'S DESTINY

responsibility of reforming the world and safeguarding the
peace.

Our Allies have now voluntarily relinquished the special
rights that they enjoyed under the unequal treaties, and have
concluded new treaties with us which respect our freedom
and independence. This fact proves not only that the nation-
alist spirit of China, as revealed in the last fifty years of revolu-
tionary struggle and the five and a half years of the War of
Resistance, has won the sincere recognition of our Allies, but
also that the war which our Allies are fighting against the
Axis powers is a war for righteousness, justice, and the freedom
and equality of the peoples of the world. Thus this [abolition
of the unequal treaties] is not only an epochal event in the
history of China, but it also constitutes the most glorious
achievement of our Allies in their joint effort for the creation
of a new world. At this present decisive point in the war
against aggression, and at this time of the beginning of equal
and free relations between our country and the Allies, our
citizens must further demonstrate the traditional virtues of
our nation, strengthen China's good-neighborliness and
friendship toward all friendly powers, and exert themselves
in working for international co-operation. This is the re-
sponsibility and duty of our citizens.

I explained this point in detail in my broadcast to the
army and the people on January 12th of this year [1943],
which I reprint herewith for purposes of reference:

"To the Armies and the People of China:

cc On the Double Ten anniversary last year [Oct. 10, 1942],
the United States and Great Britain voluntarily announced
their relinquishment of the special rights they had long en-
joyed in China under unequal treaties. Yesterday in Wash-
ington and in Chungking our Government signed new treaties
of equality and reciprocity with these two nations.

"Fellow countrymen, we recall that it was just a century
ago that our country began to conclude unequal treaties

EFFECTS OF THE UNEQUAL TREATIES 103

with the foreign powers, in the later years of the Manchu
dynasty. By fifty years of revolutionary struggle and five
years and a half of sacrifice in the War of Resistance, our
Chinese nation was finally able to transform this heartbreak-
ing anniversary into an occasion of national rejoicing. This
is not only the most important milestone in the history of
China's struggle for survival; today, our Allies, Great Britain
and the United States, have built a new lighthouse to guide
man's progress toward freedom and equality for all the peoples
of the world. Most important of all, our Allies have proved
that the aim of this war is to fight for humanity and righteous-
ness. This indeed is a most glorious and righteous action on
the part of the governments and peoples of Great Britain and
the United States. We are particularly gratified and satisfied
with the United States Government, which is in complete
agreement with the aspirations of our Government, and which
makes no reservations and no demands on us. This action on
the part of our Allies not only strengthens the fighting power
of all of our Allies, but deals a severe blow to the spirit of the
aggressor countries.

"But all our armies and people must recognize that the
status of independence and freedom must be won c by our
effort. 3 I have often said to our countrymen: c We must be
self-reliant before we can be independent; we must be strong
before we can be free. 3 The Chinese Republic must be self-
reliant and strong before it can become an independent and
free country. All the armies and the people of China must
become self-reliant and strong before they can become inde-
pendent and free citizens. Therefore, the abolition of the
unequal treaties and the achievement of a position of inde-
pendence and freedom can only increase the responsibility of
our country, and can only strengthen the sense of duty of our
people. Because one thing has been achieved, we must not
harbor any sense of arrogance, laxity, or self-satisfaction. If
all the armies and the people of our country do not assume
the duties and responsibilities necessary to build the Chinese

104 CHINA'S DESTINY

Republic into a completely free and independent state that
can fulfill its duty to the peoples of the world, then the posi-
tion of independence and freedom that we have gained will
be lost again. Even when the present war ends, we will not
automatically escape from the sufferings and restrictions of
the past. If we do not continue the struggle., there is no
knowing how many centuries it would take for us to regain a
position of independence and freedom, and the tragic destiny
of our children's children would be to live out their lives as
slaves.

"Henceforth, China's destiny rests upon the shoulders of
the citizens of this generation. In order to safeguard the
broad lands bequeathed to us by our ancestors, and ensure
the survival and well-being of our posterity, every one of us
must start today to serve the state loyally and to unite to-
gether so that we can effectively assume the responsibility of
becoming strong and self-reliant.

"Today, we can already see the first signs of victory in the
world war against aggression. The defeat of Japan, Germany,
Italy, and the other aggressor powers is near at hand, and
the determining point of victory in China's War of Resistance
will be decided during this year. There are some who assume
that China's destiny will be decided at international con-
ferences following the end of the war. Others assume that
once we have been victorious in the War of Resistance,
China will be able to enjoy the fruits of righteousness, peace,
and prosperity together with the other countries of the world,
without further effort. These [erroneous] views arise from the
psychology of self-satisfaction, laxity, and dependence upon
others. All our fellow countrymen must realize that this
psychology is wrong. China's destiny must be determined
today when we are striving to become strong; we must not
sit and wait until the peace conference after the war. We must
decide today whether China shall survive or perish; whether
she shall be the master in her own house or the slave of other
powers. Our armies and our people must never again become

EFFECTS OF THE UNEQUAL TREATIES 105

the prey of procrastination, lethargy, and indecision. Hence-
forth we must work still harder and endure still greater
privations than we have suffered in the past five years of war
in order to catch up with other nations. At such a time, there
is no room for laziness or shirking.

"Fellow countrymen: Until today we could rightly claim
that the unequal treaties were the main cause for our failure
to build a nation. For the past hundred years, the oppression
of the unequal treaties caused political disunity, economic
paralysis, and social chaos in China. The people developed a
sense of inferiority; their ethical standards degenerated; and
they were unable to feel a sense of shame. All this was caused,
directly or indirectly, by the influence of the unequal treaties.
In particular, the foreign concessions and the areas where,
foreign troops were stationed became centers of degeneration 1 ;
and corruption. But now that the unequal treaties have been
abolished, the unhealthy phenomena that developed from
them will lose their protection and they will no longer foster
an atmosphere of degeneration and corruption. However,
the bad habits and corruption that have developed during
the past hundred years may still remain latent in our social
structure. We may be unaware of the role that they play in
obstructing progress, injuring the Nationalist Revolution, and
threatening the nation's survival all of which are menaced
by selfishness, greed, and feudalistic ideas. Therefore, all our
countrymen must with one mind encourage self-criticism and
weed out these evils, so that we can unite in support of the
Three People's Principles and devote ourselves to the gigantic
task of winning the war and rebuilding the nation.

"The success of the Nationalist Revolution, which is ttie
aim of all our efforts, is at last in sight. Henceforward, China's
destiny depends upon the efforts which my countrymen unit-
edly devote to the attainment of this aim. We must sincerely
accept the teachings of the Father of our Country, Dr. Sun
Yat-sen, and have faith in the Three People's Principles,
comply with the strategy of the Nationalist Revolution, and

io6 CHINA'S DESTINY

obey the orders of the Nationalist Government. We must all,
each according to his status, devote our intelligence and
loyalty to meeting the requirements of wartime existence by
abiding by the plans for price control, obeying the general
mobilization decrees, esteeming thrift, increasing production,
and thus strengthening the war effort, while at the same time
devoting ourselves to the rebuilding of psychology, ethics,
society, politics, and economics, so that we may as rapidly as
possible carry through the total plan for national reconstruc-
tion, which combines culture, ^economics, and national de-
fense into a single entity and lays the basis for the permanent
survival of our state and nation.

"Fellow countrymen: This turning point in China's destiny
is the opportunity for each of our citizens to swear to work
for his country. It is our good fortune to witness this day the
end of our humiliation and the beginning of a new stage in
our struggle for independence and freedom. Therefore, at
this crossroads of survival or extinction, I urge you to use
caution and vigilance, and especially to cultivate self-respect
and self-esteem. Since our country has attained a position of
equality, the citizens of all friendly powers will enjoy the
protection of our laws. All those that treat us on a basis of
equality and obey our laws should be treated with friendship
and courtesy, regardless of whether they come to China as
tourists, merchants, or missionaries. Only by so doing can
we preserve the original reputation of our country as a nation
that is known for propriety and righteousness. I sincerely hope
that my countrymen will carefully observe the lessons of the
past and perform their present tasks well. In particular, we
must recognize that we cannot sit back and wait for inde-
pendence [to be given us], but must all, regardless of rank,
pay more attention to propriety and righteousness, cultivate
a sense of humility and frugality, work together wholeheart-
edly, and redouble our efforts to secure a genuine victory,
equality, and freedom. Only in this way can we march for-
ward on a basis of equality with our Allies, sharing with them

EFFECTS OF THE UNEQUAL TREATIES

the responsibility of rebuilding the world, securing the peace,
and liberating mankind. To my countrymen throughout the
nation I extend a welcome on this memorial day of independ-
ence and freedom, and express my boundless confidence and
enthusiasm for the task of fulfilling the new destiny of the
Chinese nation. I can only repay with this sincere pledge the
patriotic spirit of my fellow countrymen, who have followed
me, Chiang Kai-shek, from beginning to end, in life and
death, sharing all adversities regardless of the sacrifices and
sufferings involved. With the same sincerity, I pay tribute to
the souls of the soldiers and civilians that died for their coun-
try. Finally, I respectfully salute the common victory of our
fellow countrymen!

"Long live the equality and freedom of the Chinese Re-
public !

"Long live the Nationalist Revolution!

"Long live the Three People's Principles !"

CHAPTER FOUR

FROM THE NORTHERN EXPEDITION
TO THE WAR OF RESISTANCE

i. Reorganization of the Kuomintang and the Steps for Carry-
1 ing out the Three People's Principles

AFTER organizing the China Revolutionary Party in 1914,
the Father of our Country, observing the repeated failures of
the Revolution, recognized that unless the organization of
the Party was strengthened it would be impossible to meet
the demands of the Nationalist Revolution. In October, 1919,
therefore, he changed the China Revolutionary Party into
the Kuomintang of China. [The Kuomintang, or People's
National Party, has been the only legal political party in
China since 1927, and completely controls both the Central
Government and the Central Armies.] In January, 1923, the
Kuomintang issued a public statement of aims; in November,
1923, a Declaration of Reorganization was published; and
in January, 1924, a National Congress was held in Canton at
which it was announced that the reorganization of the Party
had been successfully completed. 1

i. A notable omission in this de- organize the Kuomintang soon after
scription of the reorganization of the the First World War. At first, he
Kuomintang in 1 924 is the absence of appealed to the United States for
any reference to the share of the support. He even wrote his Industrial
Chinese Communist Party in this re- Plan in the English language to under-
organization. Following the overthrow score his appeal. The United States,
of the Manchu dynasty, the Kuomin- however, turned a deaf ear to Dr.
tang became corrupt and was unable Sun. Only the Soviet Union expressed
to play a dynamic role in the face of sympathy for his program. As a
rapidly changing conditions, or to consequence, he proceeded to re-
attract the support of the Chinese organize the Kuomintang on the
peasants and workers. Recognizing basis of his "Three Great Policies":
this fact, Sun Yat-sen began to re- alliance with the U.S.S.R. in foreign

108

FROM THE NORTHERN EXPEDITION IOQ

The Three People's Principles are the basic principles of
the Nationalist Revolution. In his opening speech at the
National Congress, Sun Yat-sen stated: "The Three People's
Principles that we advocate are forever unchangeable; every-
one should put them into practice. These principles were
determined before the organization of the T'ung Meng Hui,
and the reason for forming the T'ung Meng Hui was to carry
out these principles. The subsequent overthrow of the Ch'ing
dynasty and the founding of the Republic were also for the
purpose of putting these principles in practice." Consequently,
during the reorganization of the Kuomintang, Sun Yat-sen
endeavored to outline the methods for implementing these
principles. He said: "No matter what you do, success depends
upon having good methods. How can you achieve a good
method? You get it from learning and knowledge. You must
first have learning, then you will have knowledge; when you
have knowledge, you will have a method. When you have
a good method for revolutionary work, you will attain im-
mediate success as soon as you go into action."

During the reorganization of the Kuomintang, Sun Yat-
sen emphasized that although we were to search for methods
and put them into practice, we should understand that these
methods must be adaptable to changing situations. In 1921,
he gave us clear instructions: "In all matters, to put some-
thing into effect after complete understanding has been
achieved, is very easy. But if one does not understand fully
and wishes to put something into effect, the course one takes
is bound to result in many errors. This is a difficult problem,
Why can we not avoid making errors? Because it is very
difficult to know everything. If we wait until we know, and

affairs; a united front with the Chinese writings, Sun repeatedly stated that

Communists in internal affairs; and it was this united front between the

cooperation with the Chinese workers revitalized Kuomintang and the Chi-

and peasants. Sun Yat-sen asked and nese Communist Party that gave the

received aid from both the Chinese Chinese revolutionary movement the

Communists and the Communist necessary spark and vigor. It cer

Party of the Soviet Union. In his tainly led it to its subsequent victories.

no CHINA'S DESTINY

then act, hundreds and thousands of years will elapse before
we can take action. Therefore, sometimes we human beings
must act even without complete understanding."

At the time of the reorganization of the Kuomintang, there
had already been a thorough discussion of the methods of
revolution, and there was a clear understanding of the revolu-
tionary movement before action was begun. Sun Yat-sen
stated: "If we are determined in our desire to make the nation
rich and strong, a method can be found. If this method is
clearly thought out, and if we do not shrink from difficulties
but consistently go forward, we shall succeed."

From this we see that revolutionary action must follow a
revolutionary method, and that the revolutionary movement
may alter or improve its method. Therefore, one can say:
The Three People's Principles are unchangeable, but the
method for putting these principles into effect is not unalter-
able.

Previously, the members of the Revolutionary Party and
the people as a whole did not clearly understand the theories
of the^Father of our Country," nor had complete confidence
in them; therefore, the Father of our Country took upon
himself the entire burden of reorganizing the Revolutionary
Party. Reviewing the situation at that time, he said: "The
fact that, although our revolution had several military suc-
cesses and yet the revolution itself was not completed, was
because the Party itself lacked a solid foundation. All Party
members did not observe Party rules, but acted independ-
ently. They did not even display the ancient virtue of un-
questioning obedience to their leaders, much less possessing
the new ideal of winning freedom. ... At that time, I had
no alternative but to take up the burden single-handed and
reorganize the China Revolutionary Party." He also said:
"There is one thing that everyone must note. Previously, the
reason that our Party was unable to achieve a solid founda-
tion was not because of the strength of our enemies, but
because we fought among ourselves, and created unnecessary

FROM THE NORTHERN EXPEDITION III

misunderstandings. Consequently, the strength of the Party
was dissipated and the Revolution was often defeated."

Thus, when Sun Yat-sen reorganized the Kuomintang, he
wanted all of us to understand the importance of solid or-
ganization and strict discipline for carrying out our task in
accordance with the aims and methods of the Nationalist
Revolution.

The aim of the Nationalist Revolution was clearly stated
in the Declaration of the First National Congress [of the
Kuomintang]. Regarding politics, the Declaration stated:
"There is not a single warlord that is not connected with the
imperialists. The so-called Government of the Republic is
controlled by the warlords, and the warlords use the Govern-
ment to gain favors from the foreign powers in order to
strengthen their own position. The foreign powers, in turn,
exploit them and have loaned them large sums for military
expenses, thereby prolonging China's civil wars in order to
gain profits and privileges, with each power occupying a
special sphere of influence. Viewed in this light, we see that
China's civil wars were caused by the foreign powers. The
foreign powers have conflicting interests in China, so they
make use of the warlords who kill our citizens to settle their
differences for them. 35 Regarding economics, the Declaration
stated: "Civil wars hinder the development of Chinese enter-
prises, and cause the market to be flooded with foreign goods.
Because of this, Chinese products cannot compete with foreign
goods even within the boundaries of China. The resulting
damage is not confined to the exploitation of our people's
political life, but also involves immeasurable losses to our
economic life."

Therefore, the target of the Nationalist Revolution is im-
perialism and the warlords. Its task is to abolish the unequal
treaties and overthrow the warlords, and thus remove from
China every trace of the present co-operation between the
militarists and imperialism. The methods and progress of the
Nationalist Revolution are from military government to a

112 CHINA'S DESTINY

government of political tutelage, and thence to constitutional
government. Since the T'ung Meng Hui, this policy has
never changed.

The First National Congress made the following statement
concerning our tasks during the period of military govern-
ment: "After the reorganization of our Party, the foundation
of our Party's organization must rest on strict discipline and
spirit. The Party shall employ various suitable methods to
educate and train our members so that they can become
effective in teaching the principles of the Party, mobilizing
the people, and promoting political organization. Simulta-
neously, we should use all the power at our command to
conduct general propaganda work among the people and
induce, them to join the revolutionary movement to obtain
power and conquer the enemies of the people. 55 Concerning
our tasks during the period of political tutelage, the First
National Congress stated: "When political power has been
secured and the Government has been formed, we must make
our Party the center of control of political power in order to
suppress counterrevolutionary movements within the country,
to defeat imperialist plots to crush our people 5 s victory, and
to eliminate all obstacles to the implementation of the Kuo-
mintang's principles."

It is the responsibility of members of the Kuomintang to
see that the Three People's Principles are fully understood
by the people and deeply implanted in their minds. In his
instructions to us, Sun Yat-sen said: "The foundation of a
nation is built on the people's ideas." He also said: "When
there is one purpose, and it is the purpose of the entire people,
and when the people all work to achieve this purpose, it is
easy to succeed. This is the reason for the saying, c the united
will of all can build a wall. 3 The case of the revolutionaries
who wished to overthrow the Ch'ing dynasty and finally
succeeded in founding the Republic is evidence that where
there is a will there is accomplishment. . . . The anti-
Manchu action of the Hans in 1911 was an action supported

FROM THE NORTHERN EXPEDITION 113

by all the people. That is called mass force. This sort of mass
force is very powerful."

To mobilize mass purpose and centralize mass force, we
must first cause the people to have a true understanding of
the Three People's Principles and the Nationalist Revolution.
Only on the basis of real understanding can the people's
thinking be reformed, their purpose unified, and their strength
mobilized. Therefore, Sun Yat-sen said: "The reason for our
previous inability to act was lack of knowledge. . . . The
ancients said that to know is easy, but to act is hard; my
theory is that to know is hard, but to act is easy. That all
Chinese affairs were corrupt in the past was due to wrong
thinking. The thinking of the Chinese people needs to be
thoroughly reformed. Apply my theory and any task can be
accomplished. 53

Carrying out his theory that to know is hard and to act is
easy. Sun Yat-sen during this period wrote: Plans for National
Reconstruction and Fundamentals of National Reconstruction., and
also lectured on the Three People's Principles as the per-
manent guide for the Nationalist Revolution. If our members
will only accept the teachings of Sun Yat-sen, develop a real
sense of responsibility, and learn to work together with one
mind, then the great task of building a state based on the
Three People's Principles and the Five Power Constitution
can surely be accomplished.

With the principles stated, the objectives clarified, the"
stages fixed, and the methods specifically outlined, Sun Yat-
sen hoped that we would make up our minds permanently
and carry out our aims in actual practice. On this point he?
said: "This time we shall definitely succeed in the Revolution,,
But it is essential that we all have this determination and
that we make up our minds permanently to carry on this
work." He wished us to determine to make China the richest
and strongest state in the world within ten years. And he
wished us to persist in our efforts, saying: "If we really under-
stand the principles of revolution, we shall have persistence.

1 14 CHINA'S DESTINY

A revolution has its ultimate goal, and we must not quit in
the middle if we desire to attain that goal."

On this basis was formed the Kuomintang of China, which
has certain special characteristics that differ from the political
parties of other countries. 2 The starting point of the Three
People's Principles is the idea of the "common good" and
the basic impetus of the Nationalist Revolution is "sincerity ."
The greatness of the Three People's Principles lies in the fact
that they combine many different ideas. As to "sincerity"
the members of the Kuomintang must act in conformity with
the strategy of the Nationalist Revolution and abide by the
discipline of the Party. In general, the Kuomintang requires
that the actions of Party members do not violate Party dis-
cipline or conflict with the Three People's Principles, but
it does not impose severe restrictions on the liberty of in-
dividual thought. Therefore, within the Kuomintang, there
are Nationalists, Liberals, Communists, and Anarchists. Even
though persons of differing political views may formerly have
been political enemies^ once they declare their belief in the
Three People's Principles and join the Kuomintang, no
questions will be raised as to their past. As long as they are
members of the Party, working together with one purpose
and assisting and co-operating with each other, they will be
trusted as honest comrades. The K-uomintang has this prin-
ciple of the "common good" because it is organized to ensure
the survival of the entire nation, and to carry through a
revolution for the benefit of all the people. Therefore, every
Chinese citizen has the privilege of joining the Kuomintang,
and should fulfill his duty to join the Party. Because the Kuo-
mintang is the leader of the revolutionary building of the
state, the Party makes not the slightest distinction between

2. The summary of the declaration nor of the provision for the distribu-

of the First National Congress of the tion of powers between the Central

Kuomintang given above is| notable and Provincial Governments, pro-

for its omissions. No mention is made viding for provincial self-government

of the principle of racial and national within a unified state, nor of many

equality within the Republic,fnor of other provisions more meaningful

the program of land to the toilers, than those chosen for quotation.

FROM THE NORTHERN EXPEDITION 115

the citizens of the country and the members of the Party,
and does not discriminate between them. Moreover, it has
the responsibility of training and leading them to devote
their efforts to the Nationalist Revolution, to putting into
practice the Three People's Principles, to national recon-
struction, and to restoring the people's welfare. Therefore
the Kuomintang does not favor any particular occupation
or class, and does not neglect any particular occupation or
class. More specifically, the Kuomintang does not discrimi-
nate among the people on the basis of sex, occupation, re-
ligion, or class; it protects each and every citizen within the
state, and does not ignore a single individual of ability. The
Kuomintang welcomes every one in the country that supports
the Revolution, and urges all citizens to join the Party so
that they may struggle together for the revolutionary building
of the state, in order to fulfill the task of the Nationalist
Revolution. In short, the Three People's Principles are based
upon the principles of equality and sincerity. Therefore, the
Kuomintang, which carries out the Three People's Principles,
is organized in accordance with the ancient virtues of our
nation, and is based upon the spirit of reason, responsibility,
and duty. It is entirely different from the other parties of the
past which resorted to Machiavellian intrigue and cruelty
to consolidate their power.

Thus the Kuomintang, in the fifty-eight years since it was
founded by the Father of our Country, has become like
T'ai Shan [sacred mountain in Shantung] and the North
Star, majestic and unchanging. Its strength is ever increasing,
and it has become the permanent and unique revolutionary
political party of China, differing completely from the nu-
merous other parties that perished as times changed. This
status has not been attained by chance, but by the impersonal,
unselfish, generous, and tolerant spirit of the Kuomintang. 3

3. It is difficult to reconcile this the Kuomintang's secret police, con-
description of the tolerant and benev- centration camps, system of "thought
olent Kuomintang with the well- control," record of political terrorism
known and substantiated history of and assassination, and other measures

u6 CHINA'S DESTINY

2. The Success of the Northern Expedition and Lessons of the

Revolution

After the reorganization of the Kuomintang in 1924, all
revolutionary movements in the country came under the
Party's banner. That was just after the First World War,
when economic crises occurred in rapid succession and revo-
lutionary movements developed in other countries. The
Revolutionary Government of Soviet Russia abandoned the
policy of militant Communism and adopted a New Economic
Policy, thus laying the foundations for the building of the
Soviet state in the midst of watchful encirclement by the
world powers. Turkey, after its successful revolution, estab-
lished a free and independent national government which
further stimulated and aroused the peoples of Asia. Thus our
Chinese Nationalist Revolution occurred in the midst of
world- wide instability. Its aim was to strengthen the people's
morale, unify the will of the nation, clarify the objectives of
the Revolution, build up the revolutionary movement, and
defeat the secret intrigues of the imperialists and feudal war-
lords, who sought to sabotage the Revolution. Although the
headquarters of the Revolution at that time was confined to
the Canton area, the revolutionary spirit spread throughout
the country.

During this period, Sun Yat-sen trained the cadres of the
Nationalist Revolution in Huangpu, Canton, and, after the
fall of Ts'ao K'un [the despised warlord President of China
from October 1923 to October 1924], he went north-despite
his illness and, in response to the popular demand, called
upon all mass organizations to convene a People's Congress.
At the time of his trip north, he told the people that "the
destiny of the state depends on the determination of the

for suppressing all those of whatever Kuomintang bureaucracy. The Chi-

political belief that dared to criticize nese Communists have by no means

or challenge the monopoly of power been the sole recipients of this form of

by a small ruling clique within the treatment.

FROM THE NORTHERN EXPEDITION Iiy

people.' 5 The object of the People's Congress was to have all
the people unite to abolish the unequal treaties and solve
China's internal problems. It was also hoped that the mili-
tarists would respond to the demands of the people and com-
bine their various armies into a national army, which would
become a powerful popular weapon.

The Peking Government had no desire to accept the pro-
posal for convening a People's Assembly. It was deeply
imbued with the psychology of submission to foreigners; it
dreaded intervention by the foreign powers; and it was
therefore fearful of the movement to abolish the unequal
treaties. Sun Yat-sen, even when surrounded by the counter-
revolutionary atmosphere of Peking, was determined to carry
on the struggle regardless of consequences. He was unable
to succeed, and he died on March 12, 1925, with a heavy
heart. But in his final will, drawn up on his deathbed, he
placed the responsibility for calling a People's Congress and
for abolishing the unequal treaties upon all members of the
Kuomintang, and upon all citizens of the country, in the hope
that these two objectives might be attained in the shortest
possible time.

At that time, the Nationalist Revolutionary Army was
attacking Ch'en Chung-ming's rebellious army along the
East River in Kwangtung, and in this moment of deep
sorrow, it suppressed Ch'en, unified Kwangtung, and laid
the foundation for the military stage of the Revolution. 4 In
July 1926, the Nationalist Revolutionary Army, in accordance
with the last will of Sun Yat-sen, took the oath and marched

4. The author here omits an im- though Chiang backed down formally,

portant historical incident that helps and released from arrest some fifty

to explain many subsequent events. military and political leaders, the

On March 20, 1926, occurred the so- coup established him as the military

called "Incident of the Gunboat commander of the Northern Expedi-

Chungshan" The climax of this in- tion. Following the coup, right-wing

cident was a coup executed by Chiang politicians poured into Canton from

Kai-shek at Canton, aimed at weak- their hideouts in Shanghai and Hong

ening the military leadership of all Kong.
Communists and progressives. Al-

n8 CHINA'S DESTINY

northward. The aim of this Northern Expedition was stated
in the Declaration of the Nationalist Revolutionary Army:
"The aim of the revolutionary war is to create an independent
and free state, and to support the state and the interests of
the people by applying the Three People's Principles. There-
fore, we must unite all revolutionary movements under the
Three People's Principles and must crush the warlords and
the imperialists upon whom they depend for their existence."

Wherever the Revolutionary Army went, nationalist move-
ments sprang up with the vigor of storms and cloudbursts.
Nationalist sentiment at that time was stimulated and
strengthened by the disorders following the May 30th in*
cident, and the tragic incidents of Hankow and Shakee.

When the British Government recognized that the strength
of Chinese nationalism could not be suppressed, it made the
following proposal in a memorandum to the Nine Power
Treaty signatories: "As soon as China has established a gov-
ernment with power to negotiate treaties, discussions should
immediately be conducted concerning the revision of treaties.
Before the establishment of such a government, all nations
should adopt a policy in accord with the spirit of the Nine
Power Treaty and applicable to the prevailing conditions,
and one that will respect the wishes of the Chinese nation."

The United States Government, in Secretary of State
Kellogg* s formal note, showed its respect for the unity and
independence of China: "The United States wishes to discuss
with a representative of the Chinese Government, China's
customs and tariff autonomy, and the abolition of consular
jurisdiction."

At the beginning of the reoccupation of Nanking by the
Nationalist Revolutionary Army, the unfortunate Nanking
Incident occurred, and the five powers Britain, America,
Japan, France, and Italy made serious demands. Of these
powers, only the Japanese warlords stubbornly refused to
recognize the strength of China's Nationalist Revolution,
with the result that even by the beginning of the War of

FROM THE NORTHERN EXPEDITION 119

Resistance on July 7, 1937, the Nanking Incident had not
been fully settled. Within these nine months (July, 1926-
March, 1927], the power of the northern warlords in the
Yangtze Valley was destroyed by our Nationalist Revolu-
tionary Army, and in this short period we were able to es-
tablish the preliminary foundation for eliminating both in-
ternal conflicts and foreign aggression.

At this time, we must recall the opening speech delivered
by Sun Yat-sen to the First National Congress of the Kuo-
mintang. In that speech he said: "There is one thing we must
note. In the past, we were unable to achieve unity, not because
of the strength of our enemies but because we fought among
ourselves. . . . Therefore the unity of the Party was very
weak, and as a result the Revolution failed/ 3

This means that if there is no conflict within, no danger
can penetrate from without a fact which applies both to the
state and to the Party. When the aim and the strength of the
Nationalist Revolution was centralized and unified, the
power of the warlords was crushed and China's relations with
the foreign powers progressed favorably. Unfortunately, at
this critical moment, when the success or failure of the Revo-
lution was at stake, internal splits occurred in the ranks of
the Nationalist Revolutionary Army and we almost failed to
meet the heavy responsibilities and to grasp the great oppor-
tunities bequeathed to us by Sun Yat-sen. That was the
darkest and most painful chapter in our history. 5

5. This was indeed a dark and secret society would be given to

painful chapter in Chinese revolu- Chiang. When Chiang's forces en-

tionary history, and one of the darkest tered Shanghai in April, 1927, the

pages in that chapter was the betrayal Ch'ing Pang gangs rose according to

of the workers of Shanghai,; who had plan, and acting in co-operation with

been organized to seize the city and the Blue Shirts of Tai Li, massacred

welcome the conquering heroes of thousands of labor leaders and mili-

the Northern Expedition. Unknown tant workers, broke up the mass labor

to them, Chiang Kai-shek had pre- organizations, and enabled Chiang to

viously reached an agreement with take over the city. Tu Yueh-sheng

Tu Yueh-sheng, powerful Shanghai and other prominent Shanghai as well

banker, opium czar, and secret society as international bankers then helped

leader, by which the support of the to finance Chiang Kai-shek's efforts

powerful Ch'ing Pang (Green Circle) to establish a right-wing Nationalist

120 CHINA'S DESTINY

What almost destroyed the foundation of the Kuomintang,
and nearly extinguished the life of the Nationalist Revolution
was the promotion of factionalism within the Kuomintang
by Wang Ching-wei and the Communist Party during 1926
and 1927. In view of these developrnents 3 the Kuomintang
was forced to re-examine its policy of tolerating Communists
as members of the Party. I am reluctant to recall this past
history, but up to now I still do not know the inside story of
the plot between Wang and the Communists. Did Wang make
use of the Communist Party., or did the Communist Party
make use of Wang, or did they make use of each other? This
is still a question. 6 It is certain, however, that there was a
plot between Wang and the Communists, particularly in view
of the joint statement of Wang Ching-wei and Ch'en Tu-hsiu.
[Ch'en was expelled from the Chinese Communist Party in
1927, and became leader of the Trotsky movement.] If we
look upon Wang Ching-wei as a shameless traitor to his
country, we might conclude that the Communists were used
by him. But the real fact of the matter was that the members
of the Chinese Communist Party within the Kuomintang
violated their pledge to join the Kuomintang as individuals.
Furthermore, they adhered to their theory that the Nation-
alist Revolution was a democratic revolution of the capitalist
class, and that they must take advantage of the development
of this Revolution to change it into a social revolution of the
proletariat. They also maintained that the Kuomintang was

Government in the hope that they known: that Wang Ching-wei fol-

could thus protect their business in- lowed Chiang Kai-shek in breaking

terests against the social and economic the united front in 19127 by only three

reforms advocated by the left-wing months, and that subsequently, Wang

sections of the Kuomintang. To fur- became foreign minister and premier

ther the policy of destroying the power in Chiang's government as well as

of the Communists and labor unions, the closest collaborator of Chiang

so-called "moderate" labor unions Kai-shek in the appeasement of Japan

were established in Shanghai under and in waging civil war against the

Tu Yueh-sheng's control, and by 1 93 1 Communists prior to 1 937. Wang's ap-

the independent Chinese labor move- peasement of Japan continued until it

ment was completely crushed. reached its climax in 1 940 when he be-

6. This may still be a question to came the No. i quisling of China.
the author, but certain facts are

FROM THE NORTHERN EXPEDITION 121

not a political party, but only a political alliance of different
classes, hoping in this way to take advantage of the develop-
ment of the Nationalist Revolution to strengthen the Com-
munist Party.

During this period, the leaders of the Communist Party,
such as Ch'en Tu-hsiu, voiced these theories in New Youth,
Guidepost, and other publications. They also fomented con-
flict between the right and left factions within the Kuomintang
and encouraged class struggle and social revolution. In ac-
cordance with their slogan of the class struggle, they regarded
the peasants and workers as the exclusive instruments of the
Communist Party and encouraged production stoppages. It
is unnecessary to mention the other economic and social
losses caused by them. They even regarded students and in-
tellectuals as counter-revolutionaries, while praising as pro-
gressive elements those who practiced dissipation and de-
bauchery. They encouraged our youth to despise and abandon
the ancient virtues of our nation, and even denounced the
virtues of propriety, righteousness, thrift, and humility as
reactionary, and treated filial piety, brotherly love, loyalty,
and obedience with scorn. The situation resembled a raging
flood that nearly got out of control. Again, during the period
from 1931 to 1936, there was continuous war and disaster in
southern Kiangsi, eastern Honan, western Anhwei, southern
Honan, western Hupeh, Szechwan, and Shensi. 7

All this suffering resulted from the so-called "Split between
Nanking and Hankow," caused by the traitor Wang Ching-
wei. As a result, there was dissension in the ranks of the
Nationalist Revolutionary Army, and the Northern Expedi-
tion encountered difficulties and obstructions. This is the

7. A completely erroneous descrip- not by the Communists, but by his
tion of the events of this period and, own followers who were deeply dis-
at best, a highly euphemistic reference turbed by the destructive civil war in
to Chiang Kai-shek's five major cam- the face of increasing Japanese ag-
paigns against the Communists (with gression. Indeed, it was the Corn-
German, Italian, and American sup- munists that were instrumental in
port) that led finally to Chiang's being securing Chiang's release from his
kidnaped at Sian in December, 1936, captors.

CHINA'S DESTINY

most impressive lesson to be learned from the development
of the Nationalist Revolution, and it is also the saddest and
most tragic page in our history. In summary, the only na-
tional policies that can succeed are those that are based on
the principles of complete sincerity and justice. In other
words, when one person exploits another, or when one con-
nives with others for seditious purposes, or when one is ex-
ploited by others, or selfishly makes use of others to achieve
personal success, he can never escape the established rule
that "only the sincere will succeed" and that "the insincere
will acquire nothing." It is still more true that, the Revolu-
tion, which is the enterprise of the state and the nation, cannot
succeed by mere personal opportunism.

Why is it necessary to make such statements at this time?
Because the lessons that we have learned from the Revolution
have been so bitter, the damage done to the state has been
so great, and the sacrifices made by the people so tragic. If
there had been no civil wars during the years 1931-36, the
condition of the present War of Resistance would be entirely
different, and the Pacific situation as well as the world outlook
would be greatly changed. The enemy would not have dared
to attack us, because he would have been quickly driven
beyond our borders. Therefore, these lessons [of the Revolu-
tion] are pertinent, valuable, and worthy of study, and will
not lose their significance with the passing of time. I want all
patriots within the country to take warning from the past
for the sake of the future, so that our future revolutionary
struggle may be benefited.

In order to put the Three People's Principles into effect,
to further the progress of the Nationalist Revolution, to safe-
guard the morale of the Chinese nation, and to protect our
ancient cultural heritage, the Kuomintang, in the spring of
1927, decided to carry out a thorough purge of the Party.
Although at that time the Nationalist Government was beset
by hardships and disunity, it still continued the Northern
Expedition and established the capital at Nanking. However,

FROM THE NORTHERN EXPEDITION 123

as the foundation of the Revolution had been undermined,
the Northern Expedition was unavoidably interrupted, and
it was not until March of the next year that the army could
continue its progress. The Japanese imperialists, faced with
the threat of Chinese unity, immediately dispatched troops
to Tsinan to obstruct our progress northward. Our Nation-
alist Revolutionary Army, however, continued their deter-
mined advance and in early July [1928] occupied the ancient
capital of Peking, thus attaining the objective of the Northern
Expedition. Toward the end of the year, the Northeastern
Provinces acknowledged the leadership of the National Gov-
ernment and thus the first stage in the unification of the
country ended successfully.

In the Tsinan Incident of May 3, 1928, the Nationalist
Government and the Revolutionary Army were thoroughly
humiliated by Japan and severely criticized by the people.
At that time, I warned the officers and men of the army as
follows: "In order to avenge our country's humiliation, you
must free China from imperialist oppression and must attain
the objectives of independence and liberty. Today you can
only endure insults and prepare yourselves for vengeance.
It will take ten years to train the population in the firm belief
of our forefathers that the lost territories can and must be
recovered and the national humiliation avenged. If you can
do this, it will not be difficult to attain a state of liberty,
equality, and harmony throughout the land." These words
constituted an order to all members of the Nationalist Revo-
lutionary Army, from commanders to privates, to avenge our
national humiliation. For the past fifteen years, our com-
manders and soldiers have never forgotten this.

The success of the Northern Expedition may be described
as a sad and painful, but nevertheless noble and heroic, page
in history, written by the Chinese nation which rose up
against one hundred years of imperialist aggression. It
marked the first step in building up the people's morale,
achieving political unity, and strengthening the army. When

124 CHINA'S DESTINY

we recall the violent and malicious methods used by the
imperialists and the counter-revolutionary forces to destroy
the Nationalist Government particularly their use of all
kinds of false rumors and slanders we realize that they
stopped at nothing. But the people's confidence in the ability
of the National Government to solve all difficulties and build
a new and independent China, and their enthusiastic support
of its policies, gave us boundless and unforgettable encourage-
ment. Therefore, the Nationalist Government determinedly
pursued the aims bequeathed us by the Father of our Country
to call a National Assembly and to abolish the unequal
treaties. Undeterred by obstacles and setbacks, we have
worked to carry out this mission in order to console the spirit
of the Father of our Country as well as those of our heroes
of the past.

3. Internal Difficulties and External Perils Following the
Transfer of the National Capital to Nanking

The first measure of success in the work of the Northern
Expedition was achieved under very difficult and dangerous
circumstances, as well as conditions of great instability. After
this, the Nationalist Government assumed that it would be
able to proceed from destruction to reconstruction, and was
especially hopeful that it could use the strength of national
unity to lay the foundation for the liberation of the nation.
When the Nationalist Revolutionary Army recovered Peiping
and Tientsin, I, Chiang Kai-shek, took an oath to carry out
eight undertakings, and solemnly announced this before the
tomb of the Father of our Country. The last two of these
undertakings were my most treasured hopes.

One of them concerned post-war construction, I said:
"After destruction, reconstruction is urgently needed. The
Plans for National Reconstruction, and Fundamentals of National
Reconstruction [of Sun Yat-sen] have already clearly outlined
the stages and methods, and if all our comrades will sincerely

FROM THE NORTHERN EXPEDITION 125

and earnestly carry them out, there will be no difficulty in
building a state based on the Three People's Principles and
completing the task of the Nationalist Revolution, Now that
the stage of military government is completed, the strength
of revolutionary reconstruction must be demonstrated through
practical political plans. Otherwise, the accomplishments of
our comrades on the battlefields will not easily be preserved
because the people will be disillusioned."

The other undertaking concerned the post-war movement
for national independence, of which I said: "Because of the
stubbornness of the warlords and politicians, our Tsung-li's
[Leader's, i.e., Sun Yat-sen's] policy of national salvation by
peaceful means could not be carried out, and our Party in
its determination to eliminate all obstacles was compelled
to resort to force. But when we turned to war, this caused
great suffering to our fellow citizens in the war-torn areas,
and necessitated heavy sacrifices by our commanders and
soldiers at the front. I have always felt that definite efforts
must be made to eliminate civil war after the success of the
Revolution. The military power of a state should be employed
only to defend the interests of the nation, and civil war is
thus the most humiliating of all kinds of war. In the present
Northern Expedition, over a million troops were mobilized,
fighting back and forth in areas covering thousands of miles.
But the damage was done to Chinese territory, and the dead
and wounded were all our fellow citizens. Hereafter, the
whole country must recognize that civil war is humiliating,
and concentrate its entire energy on the defense of the state.
We should learn the art of war solely for purposes of self-
defense, and we should be prepared by our bitter experience
to carry out the will of our Leader with respect to national
independence and freedom.' 3

Thereafter, the Nationalist Government, under difficult
and dangerous circumstances, proceeded steadily along the
course already adopted. That China has been able to fight
the enemy in such a protracted struggle is due to the strength

CHINA'S DESTINY

originating from this spirit of revolutionary reconstruction.

According to the steps outlined in The Plans for National
Reconstruction, the period of political tutelage follows the
military stage, and its chief task is to introduce local self-
government. The criterion for the practice of self-government
is based on the Regulations for Starting to Practice Local Self-
Government, drawn up by Sun Yat-sen. As for the beginning
of the period of constitutional government., it depends upon
the results of practicing local self-government. The steps in
this program are clear and logical, and provide no grounds
for controversy.

But for ten years after the removal of the capital to Nan-
king, circumstances hindered progress in the basic task of
political tutelage, from both the practical and theoretical
points of view. On the practical side, the greatest political
blow suffered by the Nationalist Government was the op-
position to the unification of the state. On the theoretical
side, the question of how to carry out the work of political
tutelage became a controversial issue and the question of
how long this period of political tutelage should be continued
was also hotly debated. Such dissension not only provided
the feudalists and counter-revolutionists with pretexts [for
opposing the Government], but also gave comrades within
the Party the appearance of wavering, with the result that
arguments became more numerous and there was no unity
of action. We all know that political tutelage is the path
that must be followed to attain democracy, without which
the people's rights cannot be protected, and that otherwise
the constitution to be framed in the future can only become
a worthless piece of paper. After the Revolution of 191 1, our
citizens did not realize the need for revolutionary reconstruc-
tion, and they devoted their efforts to studying the articles
of the constitution and the forms of various political systems,
thus opening the way for the plots of the warlords to seize
control of the state, and giving the imperialists the oppor-
tunity to extend their exploitation.

FROM THE NORTHERN EXPEDITION 127

Plans for Industrialization [written by Sun Yat-sen] is the
classic guide to China's material rehabilitation. However,
during the ten years after the Nationalist Government moved
the capital to Nanking, economic rehabilitation in practice
did not develop according to schedule^ due to interference
by the imperialists and obstruction from counter-revolutionary
influences. From the theoretical standpoint, the economists';
at that time were equally divided between the theories of
Liberalism and Communism. The Communists directed theip
efforts toward a so-called "land revolution" and a "peasants'
revolution," and wherever their armies arrived, thousands
of miles became barren and our peaceful villages were de-
stroyed. They had no desire to preserve or protect the in-
dustry and commerce of the nation, and preached only the
theory of hatred and strife in order to obstruct the increase
in production. As a result, capital fled to the concessions,
thereby encouraging imperialist aggression and intensifying
its effects. Those who favored the theories of liberalism ap-
proached the problems that faced China as a result of the
prolonged oppression of the unequal treaties, without recog-
nizing that the trend in world economics after the First
World War had been from free competition toward monopoly
and centralization. 8 They regarded themselves as new and
modern when they were actually applying the economic
theories of the first industrial revolution to a China that was
faced with the second industrial revolution in Europe and
America. As a result, the Principle of the People's Livelihood
and Plans for Industrialization became obscured.

At that time, the Nationalist Government frankly admitted
that its plans for reconstruction had not achieved the expected

8. The author fails to recognize of landlords and bureaucrats. In the

that there is-'a world of difference be- one/ the step is a logical., historical

tween monopoly and centralization development; in the other, it is retro-

in a highly developed industrial gressive and tends to stifle the only

country, and the same process in a forces that could replace a feudal with

very backward country where the a modern economy,
ruling class consists almost entirely

i 2 8 CHINA'S DESTINY

results. It might be said that the revolutionary work of re-
construction had not been started, and that there was no
way to get it started. It must be realized that after the Tsinan
Incident of May 3rd [1928], the aggressive character of
Japan's "continental policy" became increasingly apparent,
and we were constantly threatened with Japanese military
aggression. China was never able to carry on reconstruction
as planned, nor had she the opportunity to realize the Three
People's Principles and complete the Revolution in a leisurely
manner. The Nationalist Government had to engage in social
and economic reconstruction while at the same time conceal-
ing its preparations for military resistance against aggression.
During this ten-year period, the Nationalist Government,
working under conditions of restraint and silence, and fear
of imminent attack, nevertheless achieved a steady improve-
jnent in the country's economy. Imports of luxury goods
gradually decreased, while imports of machinery and me-
chanical equipment increased, indicating the progress made
in China's agriculture, industry, and mining. The most no-
table results, however, were achieved in the field of communi-
cations and finance. Over a period of forty-eight years pre-
ceding the sixteenth year of the Republic [1927], eighty- three
hundred kilometers of railroads were built, and during the
ten years after 1928, seventy- three hundred additional kilo-
meters were built, while over one hundred thousand kilome-
ters of highways were completed. The construction of tele-
graphic communications was also successful; the most out-
standing achievement being the construction of a nation-wide
network of thirty-three thousand kilometers of telephone
wires. In the field of finance, the likin tax was abolished, tax
rates were lowered, the maritime customs regulations were
revised, and domestic and foreign debts were adjusted. The
tael was replaced by the yuan [Chinese dollar], and the unifi-
cation of the currency system and the adoption of a new
monetary policy were particularly instrumental in laying the
foundation for national unity and independence. That today

FROM THE NORTHERN EXPEDITION I2g

we can fight this War of Resistance and still remain unde-
feated, militarily and economically, is due to these reforms.

The manuscript of Sun Yat-sen's Ten Tear Plan for National
Defense was destroyed during the revolt of Ch'en Chungming,
and only the table of contents remains. But his views on mili-
tary matters may be ascertained from his speech concerning
the establishment of the Huangpu [Whampoa] Academy;
his economic views are set forth in his Plans for Industrializa-
tion; and his views on social psychology may be seen in his
speech on The Spiritual Education of the Soldiers. The Nation-
alist Government, after the removal of the capital to Nanking,
tried earnestly to attain its objective of peaceful unification
and national security. It also recognized that domestic dis-
sension and foreign oppression were interrelated, and that
unification and independence were also interrelated. There-
fore, it did not falter in the face of criticism and attacks by
those that used the crisis in foreign relations as a pretext for
spreading internal dissension. And it was eventually able to
achieve sufficient military preparation to enable the nation
to launch the all-out War of Resistance.

After the success of the Northern Expedition, the relations
between the Nationalist Government and the imperialists 9
reached a climax. The failure of the Nationalist Revolution
would mean success for the imperialists; 9 if the Nationalist
Revolution succeeded, the power of the imperialists 9 would be
forever eliminated within China. During this stage, the in-
ternal difficulties and external perils confronting the Nation-
alist Government were almost beyond control. Moreover,
the various aggressor powers within China intrigued against
each other, and either by direct coercion or secret plotting
stirred up trouble and confusion everywhere. The disasters
caused by them were worse than at any time during the
preceding hundred years. [These two sentences, beginning
with "Moreover," are omitted in the second edition, and

9. In the revised edition, the word word "imperialists," in both these
"Japanese" was inserted before the sentences.

130 CHINA'S DESTINY

replaced with the statement: "The destiny of China now
entered on a period of greater peril than it had experienced
during the past hundred years.' 5 ] Had the Nationalist Gov-
ernment been careless in its handling of the situation, or had
it wavered in its course, the outrageous behavior of the feudal
forces following the Revolution of 1911 would inevitably
have been repeated.

We all know that the united demand of our four hundred
and fifty million compatriots for the past hundred years has
been to avenge our national humiliation and build up our
national strength. Moreover, history has proved that the
most effective way to achieve this purpose is by a Nationalist
Revolution. Yet, at that time, there were some that slandered
the Nationalist Revolution, accused it of being transitional,
reformist, and ineffective, and opposed and obstructed it.
We know too that the united demand of our four hundred
and fifty million countrymen during the last thirty years has
been for unification, and that the Nationalist Revolution is
the most peaceful and most logical way to attain this goal.
Nevertheless, there were some that used the pretense of
"democracy' 9 to cloak their feudalistic ideas and their divisive
activities; employed the slogan of "freedom" to conceal their
reactionary and rebellious actions; and made use of such
insulting terms as "tyranny" and "dictatorship" in their
efforts to discredit the great task of national unification.
Traitors such as Wang Ching-wei even borrowed the names
of the Kuomintang and the Nationalist Government, and the
names of the Three People's Principles and the Nationalist
Revolutionary Army, in an effort to destroy the Kuomintang
and the Three People's Principles and undermine the Na-
tionalist Revolution. Such were the treacherous actions of
those that betrayed the state and revolted against the Party
during the past fifteen years. Every available theory and
slogan were employed by these scoundrels to foment disunity
in the nation and the state. As a result of their propaganda,
the united will of the people was split, with some becoming

FROM THE NORTHERN EXPEDITION 131

radical and others becoming decadent. Those that were
radical became bandits, while those that were decadent be-
came passive and discouraged, with disastrous results for our
culture and social traditions. The difficulties and obstacles
encountered in politics, economics, and national defense were
equally serious. Yet the Nationalist Government, during the
ten years after the removal of the capital to Nanking, was
able by vigorous effort to curb the activities that threatened
to divide our state, our nation, and our culture, as well as
our thought.

Take education for example. The Government's educa-
tional policy was defined as follows in 1929: "The objective
of education derives from the Three People's Principles, and
aims at enriching the people's life, aiding social progress,
improving the people's livelihood, and prolonging the life of
the nation, in order to attain national independence, wide-
spread democratic rights, and rising living standards for the
people, so that peace may prevail."

In 1932, the resolution on education adopted by the Third
Plenum of the Central Committee, elected by the Fourth
Congress of the Kuomintang, stated that the policy on edu-
cation is "to arouse the nation's spirit, cultivate nationalist
thinking, and revive the people's self-confidence in order
to attain the objective of independence, liberty, and equality
for the Chinese nation."

Thereafter, our educational program both in the schools
and in society laid its chief emphasis on cultivating nation-
alist thinking and stimulating a nationalist spirit; making
certain that learning and culture were suited to the economy
of the state and the livelihood of the people; and eliminating
the prevalent habits of disunity, disloyalty, vanity, and in-
stability that had resulted from the effects of the unequal
treaties. That our people have been able to show such great
determination and self-sacrifice for the state during the War
of Resistance is due to their education in the Three People's
Principles during the last ten years.

132 CHINA'S DESTINY

The damage done to the revolution by internal strife had a
profound effect upon China's foreign relations. When the
Nationalist Government established the capital in Nanking
in 1927, the Ministry of Foreign Affairs issued a public state-
ment declaring that there was no ground for the continuance
of the unequal treaties made by the Peking Government with
the foreign powers, and that the Nationalist Government
would negotiate new treaties with the various nations. It also
stated specifically that tariff autonomy would become ef-
fective on September i, 1927, and that the state's temporary
regulations for tariff rates would be put into effect soon.
However, the military progress of the Northern Expedition
was obstructed by both domestic and foreign difficulties, and
the Japanese took advantage of this to declare their opposition
to the new tariff regulations. Their example was followed by
other countries, and our revolutionary diplomacy was thus
brought to a standstill.

After the completion of the Northern Expedition in 1928,
the Nationalist Government again announced its intention
to negotiate new treaties. All countries having treaty relations
with China began to discuss new agreements, with the ques-
tion of tariff autonomy constituting the central problem.
The first treaty completed was that between China and the
United States, regulating the trade relations between the two
countries. Subsequently, other countries also negotiated and
signed tariff agreements with China. Only the Japanese im-
perialists delayed taking action, and it was not until 1930
that the Sino-Japanese Tariff Agreement was signed, with
part of the old provisions still retained.

Negotiations for the abolition of consular jurisdiction [extra-
territoriality] began in 1929, but unfortunately, civil war
broke out and all the foreign powers adopted a policy of
watchful waiting. In December, 1 929, and again in December,
1930, the Nationalist Government set a date for the return of
China's jurisdictional rights, but due to the civil war nothing
was accomplished. In May, 1931, the "Regulations for Con-

FROM THE NORTHERN EXPEDITION 133

trolling Foreign Nationals in China" were published, to
become effective as of January i, 1932, but this date was
subsequently postponed as a result of the "September i8th"
incident [Japanese invasion of Manchuria, September 18,

The Japanese imperialists, in addition to passively delaying
negotiations, actively sought opportune moments to provoke
our country in order to bring pressure against us. During
the ten years following the removal of the capital to Nanking,
the Western powers, although they did not fully understand
our nationalist movement, nevertheless recognized that there
was hope for the political unification of China; the prestige
of the Nationalist Government was heightened; and they
made appropriate concessions. But the more successful China
became in achieving political unity, the more actively the
Japanese imperialists pursued their secret schemes for a mil-
itary offensive against China. Following the May 3, 1928,
incident [of Tsinan], there were the "Wan-pao Shan" in-
cident and the "Nakamura" incident [1931] which led to
the "September i8th" incident. After the "September i8th"
incident, there were the battles of "January 28th" [Shanghai,
1932], "Yu Kuan" [Shanhaikwan area], "Jehol," and "the
Great Wall"; and the "Ishimoto," "Chengtu," and "Pak-
hoi" incidents, leading up to the incident of the "Marco Polo
Bridge" [July, 1937] and the beginning of the total War of
Resistance.

From the "September i8th" incident to the beginning of
the War of Resistance, the main issue in China's foreign
affairs was the problem of Japan, and the main issue in do-
mestic affairs was also what measures to take in order to
resist Japan. We all know that modern warfare is scientific
warfare, and that China's scientific inventions and industrial
skill were in their infancy and inferior to Japan's. Modern
wars are also wars involving the entire population, but China's
feudal and counter-revolutionary forces were still engrossed in
civil strife. Under these circumstances, the Nationalist Gov-

134 CHINA'S DESTINY

eminent could only adopt the following policy: "Not until
there is no hope of peace shall we abandon efforts to preserve
peace, and not until sacrifice has reached its ultimate limit
shall we scorn sacrifice."

r Politically, the Nationalist Government endeavored to be
lenient and to make concessions to all factions in the hope
of stopping all internal strife in order to unite against the
jbreign enemy. Socially, it launched the New Life Movement
to arouse the people's spirit of self-confidence and self-respect.
Militarily, it enforced the pao chia system and trained able-
bodied young men with a view to making every citizen a
soldier. 10 It also expanded war industries and accumulated
munitions and other military supplies. Since China had for
so long been reduced to the status of a subcolony [Sun Yat-
sen's term to describe China's status as even worse than that
of a colony subject to the rule of only one country] and sub-
jected to such intensive exploitation by the imperialists, it is

10. Under the pao chia system, the Its actual purpose, however, is the
population is registered and organized same as in former times: to check
into units for conscripting soldiers and subversive activity by means of the
labor, for taxation;, and for the sup- theory of collective responsibility, and
pression of "banditry." Ten house- to facilitate military and labor con-
holds make up one chia, and^ten chia scription. A modification of this sys-
constitute one pao. Ten pao, or a tern was adopted by the Japanese
thousand households, constitute a after their invasion of Manchuria in
hsiang (rural township) or a chen 1931, when they converted hundreds
(urban town). First instituted in the of Manchurian villages into "concen-
Sung dynasty (960-1279) primarily tration villages" and ruthlessly pun-
as a means of military conscription, ished the entire village for any
the pao chia system was reintroduced opposition to Japanese rule that might
in the Ch'ing (Manchu) dynasty as a have been displayed by one or more
method of suppression by which villagers. The re-establishment of the
groups of households were held col- pao chia system by the Kuomintang,
lectively responsible for any individual coupled with its ruthless destruction
member's opposition to the alien of labor unions, and its continued
government. In 1936, the system was armed campaigns and secret police
re-established by the Kuomintang suppression of all opposition groups,
Government as the basis for county makes the use of the word "lenient"
self-government, and is represented by in the first sentence of this paragraph
Kuomintang spokesmen as the true a bitter mockery,
foundation of democratic government.

FROM THE NORTHERN EXPEDITION 135

hardly necessary to point out how difficult it was for her to
prepare for a war against imperialism. Furthermore, during
those six years, there were not many that showed real con-
sideration for the needs of the Nationalist Government. Our
central organization was naturally different from the gov-
ernments at the end of the Sung and Ming dynasties, but
the severity of the struggles among various factions within
the country and the laxity of morale were far worse. Those
that were decadent and passive wanted to live quietly under
the Japanese and therefore advocated a policy of nonresist-
ance. The militant radicals, on the other hand, urged a
policy of immediate war by which they hoped to strengthen
their own position within the country. The first group forgot
that the policy of appeasement followed at the end of the
Sung dynasty had led the nation to the verge of total destruc-
tion. The second group failed to realize that the policy of
immediate war pursued at the end of the Ming dynasty had
resulted in heavy losses for border troops, whose defeat
finally led to the tragic subjugation of the state. The Nation-
alist Government at that time [1931-37] was unwilling to
explain its position to these various factions, because by so
doing it would reveal to the imperialists its plans for resistance.
What it relied upon was its deep confidence that despite
nearly three hundred years of tyrannical rule by the Manchu
dynasty, the people had preserved their sense of national
consciousness; that after a century of imperialist aggression,
they would be eager to avenge our national humiliation; and
that in their desire for unity and independence, they would,
in the final crisis, vigorously support the Nationalist Revolu-
tion and the Nationalist Government. The Government was
also confident that those counter-revolutionaries that scorned
our ancient virtues and attacked the Nationalist Revolution
would ultimately be rejected by the people, while the cor-
rectness and realistic character of the Nationalist Revolution
would eventually be demonstrated by the final results.

136 CHINA'S DESTINY

4. Internal Effects of the War of Resistance

On July 7, 1937, the Japanese enemy, under the pretense
of maneuvers, forcibly occupied the Marco Polo Bridge and
seized the Wanping District in order to cut communications
between north and south, thus hoping to gain complete
control of Peiping. We recognized that the development of
this incident would determine not only the question of China's
survival or destruction, but also the fate of all mankind. We
also knew that since Japan had long planned to subjugate
us, peace could not easily be obtained, and that China had
reached the final, unavoidable crisis* We further realized
that in this final crisis, there could be no question of com-
promise, for such a compromise would lead only to surrender
and complete extinction. We could only fight to the end, and
only if we were determined to sacrifice everything could we
hope to win final victory. We were, of course, a weak nation
but we could not refuse to fight to preserve our nation, nor
could we refuse to assume the responsibility passed down to
us by our forefathers. We therefore decided upon a policy
of total resistance, and once the War of Resistance was
launched, we were determined to see' it through.

In Chinese history there are many precedents for national
wars. But the present War of Resistance, in its immense scope,
in the sacrifice entailed, in the difficulty of the task, and the
greatness of its importance, is without precedent. The nature
of this War of Resistance differs from the national wars in
any other period of history. We must recognize that the
present War of Resistance is not only an essential part of the
National Revolution, but that' victory in the War of Resistance
will ensure the success of the Nationalist Revolution, the
liberation of the nation, and the building of the state. There-
fore, at the beginning of the war, the Kuoinintang and the
Nationalist Government immediately adopted the dual policy

FROM THE NORTHERN EXPEDITION 137

of resistance and national reconstruction. 11 This policy was
described in the Program of Resistance and National Re-
construction which was approved by the Provisional National
Congress of the Kuomintang and adopted by the People's
Political Council, and which should be strictly adhered to
by all citizens.

There are four main goints in this program: In the field of
international relations, we must unite with all anti-aggressor
nations in support of the principles of independence^anHlseB-
government, and fight shoulder to shoulder against imperial-
ist aggression in order that all the peoples of the world may
live together in peace. In the field of domestic politics, we
must establish .local .^s^^vGri^&CLt as the basis for constitu-
tional government and, prior to the establishment of con-
stitutional government, we must organize a body through
which the people can participate in politics in order to enlist
the support of the entire country for our national program.
With regard to the national economy, we must initiate a
system of planned economy that will combine national defense
with the people's liyelihood and thus transform China into a
strong and unified fighting body. In the cultural and intel-
lectual field, we must cultivate our own ancient virtues,
expand, ,,oiir i( jcientific ^owkdge^ai^
customs, in order that the wisdom of the people may be iiL-
creased. In other words, this program represents, in essence^
the Three People's Principles and the strategy of the Nation-
alist Revolution. Thus, during the past five years, although
both foreign and domestic conditions have constantly changed^
the policies set forth in the program have remained unaltered-
If only all our citizens would unite and co-operate in carrying

1 1 . The literal meaning of the two Nevertheless, to American readers^

characters that are most frequently the phrase "national reconstruction 5 *

translated "national reconstruction," is a more understandable concept

is "state building," which some trans- than "state building" and that phrase

lators take to mean that what the is therefore used throughout this

author had in mind was primarily translation,
the state or governmental apparatus.

138 CHINA'S DESTINY

out this program, our victory in the War of Resistance and
our success in national reconstruction would be assured.

After July 7, 1937? public sentiment was aroused, and
public opinion was unified as a result of the Government's
unfaltering policy. Wherever its influence prevailed, the sup-
porters of a nonresistance policy either disappeared or became
traitors and were rejected by the people, and those that had
previously urged immediate war had no further opportunity
to promote their radical ideas. Popular morale was strength-
ened and national unity increased as the War of Resistance
continued, with the result that great progress was made in
the unification of military command. The enforcement of
orders from the Central Government and local authorities
began to improve, and there was rapid progress in the plan-
ning of production and state control of industries, thereby
establishing the basis for implementing the principle of the
people's livelihood. At the same time, internal dissension
diminished as a result of the growing recognition that "the
state is supreme; the nation is supreme. 5 '

As a result, various organizations and parties pledged their
support to the Government and their willingness to co-operate
in meeting the national crisis. Even the Chinese Communist
Party, in a public statement, made four solemn promises:
f *To fight for the realization of the Three People's Prin-
ciples; to discontinue the policy of violent insurrection, Com-
munist propaganda, and the forcible confiscation of land;
to dissolve the Soviet Government in order to promote the
political unification of the country; and to discard the name
and insignia of the Red Army and reorganize it as part of
the Nationalist Revolutionary Army, under the jurisdiction
of the National Military Council, to await orders to move
into action and assume duty in the front line of the War of
Resistance." 12

12. The author here refers to the preceded by three other points, calling

Chinese Communist Manifesto issued for the immediate establishment of a

on September 22, 1937, but does not democratic form of government, the

mention that these four pledges were convoking of a National Convention

FROM THE NORTHERN EXPEDITION 139

At that time I, Chiang Kai-shek, made known in a public
statement that "the object of the Nationalist Revolution was
to strive for China's freedom and equality." Our Leader
[Sun Yat-sen] had clearly explained that the Three People's
Principles are the doctrine of national salvation, and I had
hoped that every citizen would join in a common effort to save
the country from subjugation. Unfortunately, during the ten
years following the successful completion of the Northern
Expedition, the people as a whole did not sincerely believe
in the Three People's Principles, and did not fully realize the
danger that confronted the nation. As a result, the process of
revolutionary reconstruction encountered many obstacles; the
vitality of the nation was weakened; the people were com-
pelled to endure many sacrifices; foreign aggression was in-
tensified; and the position of the state was imperiled. During
that period, however, the Central Government adhered to
its policy of resistance based upon unification; of tolerating
insults and shouldering heavy responsibilities, without for-

to draft and promulgate a constitu- the Central Armies, to modify their
tion, and social and economic reforms land policy, etc., the Central Govern-
to improve the people's welfare. In ment had agreed to the introduction
his formal statement acknowledging of political reforms in China. The
the Communist Manifesto (September Kuomintang leaders, on the other
23, 1937), Chiang Kai-shek also made hand, refused to admit that the
no reference to these three points, but United Front Agreement involved
merely expressed the hope that the anything more than a recognition by
Communists would carry out their the Communists of the Central Gov-
pledges. These two statements formed ernment's authority, and did nothing
the basis of the so-called United to establish a representative govern-
Front agreement between the Kuo- ment that would give all Chinese
mintang and the Communists, but political parties a voice in determin-
since this agreement was never em- ing Government policy. Under these
bodied in a single document officially circumstances, the Communists sus-
accepted by both sides, interpreta- pected with reason that the Kuomin-
tions of the rights and obligations of tang's demand that they surrender
both parties inevitably differed and a their armed forces to Central Govern-
wide area of controversy developed, ment control was really intended to
The Chinese Communists claimed eliminate them as a political force
that in return for their willingness to a view in which they were confirmed
become a special administrative dis- by the treatment meted out to the
trict under Central Government au- minority parties in Kuomintang Chi-
thority, to incorporate their troops in na which possessed no armies.

140 CHINA'S DESTINY

getting for a single day the need for unity and co-operation
in meeting the crisis confronting the state.

People that had formerly doubted the Three People's
Principles began to place the interest of the nation upper-
most, discarded their previous differences of opinion, and
worked together to achieve unity. This indicated that all
citizens had come to realize that if we live we all live, and if
we die we all die, and that the life or death of the nation as a
whole is more important than the fate of any individual or
group. The declaration made by the Chinese Communist
Party at that time testified to the growing strength of national
consciousness. It also proved that only the Three People's
Principles can increase our national consciousness, and that
the Kuomintang is the only revolutionary party representing
the demands of the entire nation and the interests of all
classes. Any theory that is in opposition to the Three People's
Principles will soon be rejected by the nation. Therefore, the
highest guiding principle in the War of Resistance is the Three
People's Principles, and the highest directing organization is
the Kuomintang. If there was no Three People's Principles,
there would be no War of Resistance; if there was no Kuomin-
tang, there would be no Revolution. No political party and no
political activity can aid the War of Resistance or promote
the revival of the nation if they differ from the Three People's
Principles and from the Kuomintang. This obvious fact
ought to be fully recognized by all the people, and particu-
larly by the intellectuals.

5. The International Setting of the War of Resistance An

Account of the Military Strategy and Diplomatic Battles

Before and During the War of Resistance

The effects of our War of Resistance upon the world may
be divided into two phases. The first phase concerns the re-
lation of China's War of Resistance to the World War and to

FROM THE NORTHERN EXPEDITION

international peace, while the second concerns the under-
standing of China's War of Resistance by the foreign powers.

As to the relation of our War of Resistance to the World
War and international peace, I want to point out first that
our Nationalist Government knows that world peace is in-
divisible. Thus, before the outbreak of the World War, China
refused to shirk her responsibilities toward international peace,
and after the outbreak of the World War, China determined
to do her full part in sharing the burden of the war. During
the past five and a half years, we have shattered Japan's
grandiose dream of dividing the world and caused her to
lose the power of initiative. Hereafter, China must continue
her vigorous efforts and, together with her friendly Allies,
destroy completely the power of Japan and her Axis partners
to disturb the world.

After the September i8th [1931] incident the Japanese im-
perialists, in pursuit of their "continental policy, 55 proposed
the so-called "Three Principles' 5 and tried to force their
acceptance by the Nationalist Government. These so-called
"Three Principles' 5 were "Friendship between China and
Japan, 55 "Economic Co-operation, 55 and "Joint Defense
against Communism. 55 "Friendship between China and Ja-
pan 55 in reality meant the political absorption of China by
Japanese imperialism. "Economic Co-operation 55 meant the
economic monopoly of China by Japanese imperialism. And
"Joint Defense against Communism 55 was a Japanese plot to
use our four Northeastern Provinces as a base from which to
continue their encroachments on Chinese territory, to black-
mail the Chinese Government, and to synchronize their mil-
itary activities with those of the Axis countries in Europe for
a joint attack against Soviet Russia from the East and West.

Our Nationalist Government recognized that these were
the aims of Japan's "Continental policy, 5 ' and adopted a
stern attitude in refusing to accept these "Three Principles. 55
China, then signed the nonaggression treaty with Soviet
Russia in August, 1937, to frustrate Japan's secret plan.

142 CHINA'S DESTINY

Japan immediately abandoned the methods of diplomacy, in
the belief that by using "local incidents 53 as a pretext for
quick action, she could cut the Peiping-Hankow Railway,
occupy Peiping and Tientsin, and establish the area northeast
of the Yungting River as a Japanese base from which to
attack and occupy Siberia. Our Nationalist Government not
only refused to yield to Japanese pressure, but decided to
send troops north to strengthen our garrisons in Peiping and
Tientsin, and to fight the War of Resistance. After the out-
break of the war in Wusung and Shanghai on August i3th
[1937], Japan's plans for rapid aggression on the mainland
were completely frustrated by our policy of protracted re-
sistance. Thereafter, China fought the war single-handed for
two years before the outbreak of the European War; four
years later the Pacific War began. China's policy has been
consistent from beginning to end, and has never wavered.
If one examines Japanese policy, however, one can see that
there has been no such consistency, and that, furthermore,
Japan must eventually abandon the "continental policy"
that she has pursued since the days of Emperor Meiji. There-
fore, we can state that between the incident of July yth [1937]
and the incident of August isth [1937], when China's War
of Resistance was launched, we had already defeated Japan's
traditional policy both politically and militarily, and had
laid the foundation for our own victory.

China's total war and her determination to fight to the
*nd have been clearly made known to the world. The Jap-
anese imperialists, however, are as stubborn as ever, and are
unwilling to abandon their long-prepared plans. The Konoye
Cabinet repeatedly announced its "nonexpansionist" pro-
gram. Its first move was to try to take advantage of the op-
portunity when our capital was in danger to secure a quick
peace, with Germany acting as a mediator. When our Na-
tionalist Government refused to enter into peace talks, and
reiterated its determination to continue the War of Resistance,
Japan's next move was to stop military aggression after the

FROM THE NORTHERN EXPEDITION 143

battle of Wi>Han [Wuchang and Hankow], and to employ
both a peace offensive and a political offensive against China
in the hope of ending the war, while still cherishing her
desire to advance northward [against the Soviet Union],
The incidents of Changkufeng [1938] and Nomonhan [1939]
were evidence of this desire. 13 However, the Japanese weref
forced to change their policy toward China from one of|
gradual encroachment to one of complete annexation, andf
were compelled to devote their entire strength to settling the?
"China incident." Japan's "nonexpansionist" program had^
to be altered to that of a "long-term war" in September 1938- 1
And the "Three Principles" of "Friendship between JapanT
and China," "Economic Co-operation" and "Joint Defense
against Communism," had to be openly announced by
Premier Konoye. Following the Konoye declaration, the
Nationalist Government thoroughly exposed the Japanese
scheme, and the Konoye Cabinet thereupon fell.

In January, 1939, the Japanese Government was reor-
ganized under the premiership of Baron Hiranuma. Germany
demanded that, on the basis of mutual agreement and joint
defense against Communism, Japan conclude a tripartite
alliance [with Germany and Italy] aimed at launching a
world war. But Japan, tied down by China's War of Resist-
ance and having already lost the initiative, was forced to seek
a postponement In the autumn of that year, Hitler suddenly
shifted his strategy and signed a nonaggression pact with the
Soviet Union, and the European War then broke out. The
Hiranuma Cabinet had no alternative but to resign in August,
amidst widespread confusion and apprehension. The two
succeeding cabinets of Abe and Yonai could only adopt a
policy of "staying out of the European war" in order to save
the situation temporarily. During this period, in February,
1939, the Japanese had extended their military activities to
Canton and occupied the harbor of Hainan Island, thereby

13. Border incidents in which Japanese troops attacked Soviet forces and
were defeated.

144 CHINA'S DESTINY

giving the first indication of their plan of military expansion
southward. The war situation in the Pacific then changed
sharply. Japan's policy of expansion northward had been
altered to expansion southward, but expansion southward
was hindered by China's War of Resistance, which caused
Japan to hesitate and delay her attack on Great Britain and
the United States for almost three years. This fundamental
change in Japan's policy was the result of the complete success
of our national policy. That this was the crucial factor in the
failure of Japan's "continental policy" has been generally
recognized by all students of world affairs. [The revised
edition adds the following passage: "The day after the Jap-
anese seized the island of Hainan, I warned the two friendly
nations of Great Britain and the United States that this was
the Mukden incident of the Pacific, and that all Pacific powers
ought to adopt a common policy. But at that time these
friendly nations regarded my warning as an exaggeration to
attract attention, and took no notice. They sat still and
watched Japan prepare a base for her southward expansion,
and allowed her to complete her preparations for war. The
reason why Japan was still not able to advance rapidly, and
take advantage of the opportunity presented by the lack of
preparation on the part of Britain, the United States, Holland,
and France, was because her southward advance was hin-
dered by Chinese resistance, from which she could not free
herself."]

During May and June, 1940, Denmark, Norway, Holland,
Belgium, and France were successively conquered by the
German Army. Japan was amazed. The demand for the
conclusion of a tripartite military alliance was again raised
by the militarists. Konoye took this opportunity to form a
cabinet, and he soon signed the Tripartite Pact. Its first
strategy was to remain on the defensive in the north and
undertake an offensive in the south, and as a consequence,
the Soviet-Japanese Neutrality Pact was concluded in April,
1941. These two documents [the Tripartite Pact and the

FROM THE NORTHERN EXPEDITION 145

Soviet-Japanese Treaty] raised Yosuke Matsuoka to the status
of Japan's "super statesman." Not long afterward [June 22,
1941], the Soviet-German war suddenly broke out; Matsuoka
resigned; and Konoye's second cabinet had to be reorganized.
But the recklessness of the [Japanese] militarists could no
longer be controlled. Konoye's third cabinet, which was
formed after the attempted assassination of Hiranuma, was
forced to sign its own death warrant by resigning in October
of that year. Then Tojo, as war minister, formed a cabinet
committed to the strategy of "southern expansion first, north-
ern expansion afterward/' and on December 8, 1941 [De-
cember 7th, in the U. S. A.], under cover of the American-
Japanese negotiations, Japan suddenly attacked British and
American Pacific possessions and points of strategic impor-
tance.

An examination of the history of this period shows that not
only did the people of the world fail to understand the reasons
for the changes in Japanese policy and strategy, and the
results that these changes inevitably produced, but that even
the Japanese militarists themselves failed to understand their
real significance. Although the Japanese militarists considered
themselves extremely clever, they were really stupid and
stubborn. In their war of aggression against our country,
they thought they had the initiative in their hands, and that
they had China completely under their control, and therefore
they did as they pleased without the least scruple. What they
did not know was that, from the beginning of the war, their
policy and military strategy were entirely under our control.
As a result, their tactics in combat were basically controlled
by us, and they were everywhere placed in a defensive posi-
tion, advancing in the direction that our strategy dictated
and proceeding along the road to inevitable collapse. Japafl
was bogged down at the beginning, and finally became so
hopelessly trapped in our net that she could not extricate
herself.

From this we should realize that, as far as the question of

146 CHINA'S DESTINY

the survival or destruction of the state is concerned, the
correctness or incorrectness of the policy decided upon by
the Government is more important in its invisible influence
than in its visible results in victory or defeat. Therefore our
citizens must pay special attention to, and not for a moment
neglect, the duty of obeying the state's policy and working
to carry out that policy. If there is the least carelessness in
carrying out the correct state policy, or if we permit it to be
destroyed by those who are superficial, dishonest, or radical,
then the future of the state and the nation will be one of a
myriad calamities from which we will be unable to recover.

After the outbreak of the Pacific War, our War of Resistance
and the World War against aggression were merged into a
Igingle giant force. The revolutionary spirit, based on right-
eousness, justice, and the freedom and liberation of mankind,
continuously strengthened this great force. The Joint Declara-
tion against Aggression, signed in Washington on January i ,
1942 by the peace-loving countries of the world, was in
reality the crystallization of the revolutionary spirit of man-
kind in its fight against tyranny. Our Nationalist Govern-
ment, in accord with our already established policy, signed
this declaration with the other anti-aggressor countries, and
our country was recognized as one of the four Great Powers.

At that time, American and British preparations in the
Pacific were inadequate, and Japanese aggression was vic-
torious on all sides. But in the midst of this succession of tri-
umphs, our army dealt a crushing defeat to the Japanese in
the battle of Changsha, and thereby crippled them in the
Chinese theater of war. In this battle, Japanese morale re-
ceived a severe blow and Japan was compelled to recognize
the strength of our army. The result was that on her western
front she did not dare attack India after the occupation of
the Malay Peninsula and Burma; on her southern front she
abandoned her plan to invade the Australian mainland after
the conquest of the Netherlands East Indies and the Philip-
pines; and on her northern front she could not carry out her

FROM THE NORTHERN EXPEDITION 147

long-cherished plan to invade the Soviet Union after the
attack on the Aleutians.

Japan's hesitation and indecision as to her future course
gave Britain and the United States an opportunity to prepare
their battle lines in Western Asia and the South Pacific and
to strengthen the defense of North America, while Soviet
Russia was able to concentrate on the war with Germany.
Since November, 1942, the victories of the United Nations
in all theaters of war have placed Japan in a hopeless position,
surrounded on four sides, and even the Axis powers have
shown their distrust of Japan because she failed to adhere to
the Tripartite Pact and thereby missed a timely opportunity.
It is universally recognized, however, that Japan's inability
to advance on the eastern, southern, western, and northern
fronts to carry out her "Great East Asia War Strategy" was
due to one major obstructing force China's War of Resist-
ance. Thus ? the status of our War of Resistance in relation
to the World War, and particularly to the Pacific War, can
be described without exaggeration in the words of the old
saying: "An anchorage in midstream; a dike to stem the
raging flood."

Because China's War of Resistance has played such an
important role in world affairs, the foreign powers' under-
standing of our state and our nation has deepened as the
war has continued. At the beginning of our war, the Great
Powers assumed that it would surely be over in a short time.
British and American attention was centered on the problem
of how to protect their interests in China from destruction
by Japan, and how to maintain their position in East Asia
after the end of Chinese resistance. Germany and Italy
wanted Japan to extricate herself from the Chinese war and
join with them in prosecuting the World War. But when
China demonstrated her determination to fight to the end,
Germany and Italy had to abandon their hopes, and Britain,
America, and Russia were compelled to recognize the strength
of the Chinese nation. In particular, they were forced to

148 CHINA'S DESTINY

recognize not only that China's War of Resistance repre-
sented the demand of the Chinese people for national inde-
pendence and a stabilizing force in Asia, but also that it
constituted a strong link in the chain of collective security
that could alone ensure world peace. After the outbreak of
the European War, when the Axis Powers and Japan revealed
their monstrous plan to divide the world, Britain, America,
and Russia began to realize that China's War of Resistance
was restraining the world's most vicious aggressor, and that
China had thus assumed one of the heaviest responsibilities
of all the Allied nations. In other words, China's War of
Resistance not only marked the beginning of opposition to,
aggression, but also constituted the Asiatic base for the World)
War against the aggressors. This has been proved by past!
events. .,<

CHAPTER FIVE

CONTENTS OF THE NEW EQUAL TREATIES

AND THE ESSENTIALS OF THE FUTURE

WORK OF NATIONAL RECONSTRUCTION

I. The Abandonment of the Unequal Treaties and the Meaning
of the New Equal Treaties

As STATED above, the Great Powers' appreciation of China
deepened with the development of the War of Resistance.
But to advance from this to the attainment of our major
objective the abolition of the unequal treaties required
vigorous diplomatic efforts on the part of the Nationalist
Government During the past five years, the foreign diplomacy
of the Nationalist Government has been based on the spirit
of nationalism and the objectives of the War of Resistance.
This basic aim has never been altered, either by changes in
the international situation or by internal criticism, and it
has finally achieved the objective of abolishing the unequal
treaties.

Let usifirst discuss the spirit of Chinese nationalism. China
has long be&ra^eak country becauselof the bondage of the
unequal treaties, and she was therefore compelled to obtain
international assistance in order to resist a powerful enemy.
Since the beginning of the war, however, the Nationalist
Government has based its policy on the ancient proverb:
"one must do one's utmost," and has emphasized the prin-
ciple of "salvation through self-endeavor." In five and a half
years of war, the international situation has changed fre-
quently, but the foreign policy of the Nationalist Government
has remained consistent and we have never become pessimistic

149

150 CHINA'S DESTINY

because of discouraging developments, or been dismayed by
precarious situations. We have neither gone out of our way
to make enemies, nor displayed a readiness to compromise.
We have never lost an opportunity to seek help from friendly
countries, but at the same time we have never lost the spirit
<o self-reliance.

Let us next consider the objectives of the War of Resistance.
China is fighting not only for the in3gge^enc^of jthe state
and the survival ofjthe nation, but also for world peace and
righteousness. At the beginning of the war, these two great
objectives were definitely proclaimed. The Nationalist Gov-
ernment firmly believed in the indivisibility of world peace,
and therefore, in the midst of disunity and discord among
the Great Powers, it foresaw the inevitable formation of an
international front against aggression. The Nationalist Gov-
ernment also believed that the righteousness of the world
could not be destroyed, and therefore, during the difficulties
and reverses of the Allied nations, it foresaw the inevitable
defeat of the aggressor nations. [It recognized that] the in-
dependence of the Chinese state and the survival of the
Chinese nation will be assured simultaneously with the res-
toration of justice and peace to the world and the victory of
the principles of human freedom and liberty, which in turn
will depend on the independence of China. Such being the
objectives of the War of Resistance, the Nationalist Govern-
ment pursued a foreign policy of not shirking its own re-
sponsibility or depending exclusively on foreign help, and
at the same time emphasized not only the principle of "self-
help" but also the principle that "to help oneself is to help
others/ 3 From this it is clear that the reason why China
could weather many difficulties and in the end attain a
position of independence and equality among the Allied
nations was not a matter of chance or luck, but was the result
of great suffering and sacrifice on the part of the state and
the nation.
After the incident of September 18, 1931, the Great Powers

CONTENTS OF THE NEW EQUAL TREATIES

ceased negotiations with China concerning the abolition of
extraterritorial rights. In May, 1941, in an exchange of notes
between China and the United States regarding the revision
of the unequal treaties, the United States agreed to abolish
extraterritorial rights and related special privileges, but the
date for negotiations was postponed until "after the restora-
tion of peaceful conditions. 55 In July of the same year, China
and Great Britain exchanged similar notes, and Britain
agreed to abolish extraterritorial rights, return her conces-
sions and revise her treaties in accordance with the principles
of equality and mutual assistance, but the discussions were
also to be postponed until "peace in the Orient has been
restored. 55 On October 10, 1942, the American and British
Governments simultaneously informed our Nationalist Gov-
ernment of the abolition of extraterritorial rights and related
special privileges in China, and announced their readiness
to begin the negotiation of new treaties based upon the prin-
ciples of equality and mutual benefit. On January n, 19437;
the new equal treaties between China and the United States J
and China and Great Britain were signed. At that time, If
told the entire country: ^

"Last year [1942] marked the one hundredth anniversary
of the first unequal treaties with the Great Powers, concluded
in the latter part of the Ch 5 ing dynasty. After fifty years of
revolutionary struggle and five and a half years of sacrifice
in the War of Resistance, our Chinese nation has transformed
this painful anniversary into a glorious occasion, marking the
abolition of the unequal treaties. This is not only an important
milestone in the history of the revival of the Chinese nation,
but is also a brilliant lighthouse erected by Britain and
America to guide men's progress on the road to freedom and
equality for all mankind. It is especially significant that our
Allies have thus demonstrated that the present war is being
fought for justice and humanity. This action on their part
not only strengthens the fighting power of our Allies, but
strikes a heavy blow at the morale of the aggressor nations. 55

152 CHINA'S DESTINY

Because in the revised edition, the full text of Chiang's
speech was added (see Chap. Ill, Section 6), this summary
quotation was deleted, and the following passage substituted:
"All of you should note that the significance of these two
treaties lies not only in the fact that they represent greatly
improved relations between China and America, and China
and England, but also that they will serve as a model for all
future treaties that may be concluded between our country
and other free and independent nations of the world*"]

These new treaties will also be a model for equal and
mutally beneficial treaties between China and other free and
independent nations. Furthermore, after the conclusion of
the present war, China will negotiate additional treaties of
friendship, commerce, navigation and consular jurisdiction^
in accordance with the letter and spirit of these two treaties.
Therefore, it may be said that, beginning today, the letter and
the spirit of the unequal treaties of the past hundred years
have been permanently abolished. [In the revised edition, the
following was added to this sentence: "and the unhappy and
discordant feeling between our country and others was also
completely abolished, with no trace of distrust or suspicion
remaining."]

The special privileges relinquished by these two treaties

1. Consular Jurisdiction [Extraterrtio^lity]: Consular juris-
diction heretofore enjoyed by nationals or organizations of
the United States and Great Britain was relinquished, and
such organizations or nationals residing in Chinese territory
were made subject to the jurisdiction of the Chinese Govern-
ment in accordance with the principles and established prac-
tices of international law.

2. The ,Le^^mi^^'ters and Garrison Areas: The special
privileges obtain^^ Great Britain
in the Peace Treaty of 1901, such as the Legation Quarters
and the right to garrison troops along the Peiping-Mukden

CONTENTS OF THE NEW EQUAL TREATIES 153

Railroad were relinquished. Governmental and administra-
tive functions in the Legation Quarters, as well as all official
property and obligations in these Quarters, were transferred
to the Chinese Government.

3. Concessions: All American and British Concessions in
China were relinquished. Their administration and control,
and all official properties and obligations therein were trans-
ferred to the Chinese Government.

4. Special Courts: The United States and Great Britain re-
linquished the right to special courts in the International
Settlement.

5. FwrignJRii^ 9^L ?P?i a t Navigation Rights:
America and England relinquished their right to employ
foreign pilots in Chinese ports, and the right of their warships
to cruise in Chinese territorial waters. Henceforth, the visits
of naval vessels between China and these two countries are
to be accorded the courteous treatment prescribed by inter-
national tradition.

6. Empjlo^mentof a British Subje&t as Ghuj Commissioner of
Customs: Great Britain relinquished her right to demand that
China employ a British subject as Chief Commissioner of
Customs.

7. Coastal Tr^ The rights of
American and British nationals to conduct coastal trade and
inland navigation were relinquished.

8. Other Matters Relating to China's Sovereignty: Other matters
affecting Chinese Sovereignty that were not dealt with in
these new treaties are to be settled between China and
America and Britain in accordance with the generally recog-
nized principles and practices of international law.

The campaign for tariff autonomy was successful after the
Northern Expedition, and the return of judicial rights has
now been achieved. Furthermore, since the relations between
China and America, and China and Great Britain, have been
established on a basis of equality and mutual benefit, there

154 CHINA'S DESTINY

are no relations and no problems that cannot be settled sat-
isfactorily. We need only compare the new treaties with the
previous unequal treaties to recognize their great significance.
However, there remains a certain cause for regret in con-
nection with the conclusion of these new treaties, namely,
the fact that the question of the leased territory of Kowloon,
which was originally Chinese territory, was not settled in
the new treaty [between China and Britain]. This leaves a
stain on the cordial relations between China and England.
On the day that the new Sino-British treaty was signed,
however, our Government presented a formal note to Eng-
land, reserving the right to recover Kowloon, which means
that negotiations concerning Kowloon can be initiated at
any time. What we must recognize is that there exists a
definite geographical interdependence between Hong Kong
and Kowloon, and that both questions must be settled at the
same time. Obviously, this is the reason for the British delay.
We are confident, however, that the British Government
will not allow the enduring friendship between China and
England to be injured on account of this tiny plot of land.

After the Russian Revolution, the Government of the
Soviet Union, in the "General Settlement of Cases Pending
between China and Russia" [1924], relinquished all special
privileges in China/ However, at that time, the Nationalist
Revolutionary Government was confined to a corner of
Kwangtung Province, and it was not possible to conclude a
formal Sino-Soviet treaty of equality. Because of the inter-
action of external dangers and internal disturbances following
the establishment of the Nationalist capital in Nanking, the
frontier problems between China and the Soviet Union have
not yet been satisfactorily settled. ^But now that the anti-
aggression powers are successively relinquishing their special
privileges in China, there is no doubt that the various prob-
lems between China and the Soviet Union will be equitably
and justly settled, since relations between the two countries
have been traditionally friendly.

CONTENTS OF THE NEW EQUAL TREATIES 155

We have already stated that the virtues of the Chinese"
nation include endurance, responsibility, integrity, and hu-
mility. Because of our endurance and sense of responsibility,
the Chinese nation, though shackled by the unequal treaties
for one hundred years, has been able to achieve a status oi
freedom and independence/ With the determination and
strength born of suffering, we have made our state at last a
free and independent state, and our citizens have again
become free and independent citizens. Because of our in-
tegrity and humility, the Nationalist Government regards
the independent and free status achieved through the re-
linquishment of the unequal treaties, and China's future
role in the world, not as a privilege, but as a duty and re-
sponsibility. Our nation's reaction to the abolition of the
unequal treaties is not to seek material gain. The reaction of
our nation is a heightened feeling of duty and an increased
sense of responsibility. This is a point that I wish to explain
clearly to our people.

We must recognize that the relinquishment of the unequal
treaties is a preliminary step in the success of the Nationalist
Revolution. During the past hundred years, the citizens of
the entire country, suffering under the yoke of the unequal
treaties, were unanimous in their demand that the national
humiliation be avenged, and the state be made strong.
Various proposals and movements, however, either failed
because of differences of opinion, or collapsed because the
time was not ripe, or were not supported by the people, or
were eliminated because their motives were wrong. Thus
some of these movements appeared on the scene for a year
or less, while others lasted for three or five years. Whenever
there was a change in the international situation in America
or Europe, or when there was a change in the domestic
politics of a foreign nation, or when a new theory or philos-
ophy was advanced each of these caused a disturbance in
China. Only the Nationalist Revolution bases its principles
on universal justice, its motives on absolute sincerity, and

156 CHINA'S DESTINY

its spirit on the ancient virtues of the nation. As a result, its
central organization, the Kuomintang, has been able to
unite and centralize the revolutionary elements of the entire
nation. It has been tested by fifty years of countless difficulties
and adversities, and through the development of events it
has been able to win the support of the people at home and
recognition by the foreign powers, and to attain the present
stage of its preliminary success. Viewing the future in the
light of the past, we should be even more vigilant and hard
working.

This preliminary success of the Nationalist Revolution
marks the real beginning of the work of national reconstruc-
tion. This task has two aspects, domestic and international,
from the domestic point of view, it is only after China has
attained independence and freedom that she can realize the
ideals of political and economic reconstruction. In other
words, the work of revolutionary reconstruction must pro-
gress from the realization of the principle of nationalism, to
the realization of the principles of democracy and the people's
livelihood. In regard to democracy, the activities outlined
in "A Law to Begin the Enforcement of Local Self-Govern-
ment" constitute the foundation on which we must progress
from political tutelage to the establishment of constitutional
government. Moreover, we must establish China as a strong,
closely knit state in its foreign relations, so that it will not
slip back into a status of pseudo-freedom and so-called lib-
eralism in which the state and the nation would resemble a
pan of loose sand. We must train all our citizens to exercise
their governing power, without favoring any particular class;
making Chinese politics the politics of all the people, and
not class politics. In regard to the people's livelihood, we
must continue the productive reconstruction begun during
the War of Resistance, and prepare to carry out the In-
dustrial Plan [of Sun Yat-sen]. Production must be the work
of the entire nation, so that it will not degenerate into class
warfare, or result in an unplanned economy that would be

CONTENTS OF THE NEW EQUAL TREATIES 157

unable to survive in the present world of trusts and state
capitalism.

Internationally, China's War of Resistance has become part
of the World War against aggression. Victory in the War of
Resistance and victory in the war against aggression are
interrelated and inseparable. After this great war, the peace
of the world and the liberation of mankind require the joint
efforts of China and the Allied nations. Therefore, in addition
to national reconstruction, China must be prepared to share
heavy responsibilities in achieving world peace and the free-
dom and liberation of mankind.

2. Future Direction of the Peopled Efforts and Essentials in
the Work of Reconstruction

4,

If the people do not thoroughly fulfill their duty toward
the state, the state cannot be established, the nation cannot
survive, and it will be impossible for China to participate in
world affairs. This is an undeniable fact. As stated in the
preceding section, China's future responsibilities will be heavy,
and it is obvious that the duties of the people toward the
state and the world will also become heavier and more com-
plicated each day.

"There is no easy task in the world; there is no difficult
task in the world." The preliminary success of the Nationalist
Revolution is the result of the unceasing struggle of the entire
nation during the past hundred years, and in the bitter and
prolonged War of Resistance during the past five and a half
years. From this it may be seen that "there is no easy task in
the world." But during the last thirty years, the Nationalist
Revolution has been able to overthrow three thousand years
of monarchy, three hundred years of Manchu absolutism,
and even to cause the relinquishment of the most ruthless and
powerful unequal treaties in the world. [Revised edition omits
the phrase "most ruthless."] From this it may be seen that
if our citizens combine their strength and their plans, withl

158 CHINA'S DESTINY

complete faith in the Three People's Principles, and advance
along the broad road of nationalist revolution, there is nothing
that cannot be accomplished.

Sun Yat-sen said: "A state is a collection of men, and a
man is the instrument of the mind. State affairs are the
product of the collective mind. ... If my mind believes that
it can do the work, then the removal of a mountain and the
draining of a sea, though difficult, can be accomplished. If my
mind does not believe it can do the work, then even so easy a
task as turning the hand or breaking a twig cannot be ac-
complished. Mind is the root and source of all events. Success
in the overthrow of the Ch'ing dynasty was a success of the
mind. Failure in building up the Republic was a failure of
the mind.' 5 Relinquishment of the unequal treaties today,
and certain victory and success in the War of Resistance and
national reconstruction in the future will also result from our
faithful adherence to the wishes of the Father of our Country.
Therefore it can again be said that "there is no difficult task
in the world."

The principles of the Revolution are as clear as the sun
and the moon in the sky. Its method and strategy have been
outlined by Sun Yat-sen in detail. Its achievements have also
been proved by present events. Citizens of the country need
only adhere to these principles, methods, and strategy; follow
the road of accomplishment; master the theories and expand
their knowledge; and put their knowledge into concrete prac-
tice through energetic endeavor, in order to deal with the
unprecedented changes in the world situation, and to share
with all mankind the great task of reforming the world. Their
ultimate success will be assured.

Thorough understanding and active endeavor must be
based on absolute sincerity, free from any falsehood or dis-
honest conduct as well as from the slightest opportunistic
motive. The ancients said: "Sincerity is accomplishment. In-
sincerity accomplishes nothing." What is sincerity? Sincerity

CONTENTS OF THE NEW EQUAL TREATIES 159

means not to be false or dishonest; it means to work hard for
better and better results. Without sincerity nothing in the
world can be accomplished, while with absolute sincerity,
there is nothing in the world that cannot be accomplished.
I often say, whence does sincerity come? Briefly, "Altruism
necessarily involves sincerity." The objective of our Nation-
alist Revolution is to destroy individual selfishness, to save
the people from suffering and the state from danger in other
words, an altruistic objective. Therefore, if we wish to carry
out our principles, fulfill our responsibilities as members of
the human race, and seek the most satisfactory living condi-
tions for mankind, we must base all our actions on absolute
sincerity. In this way, the labor and wisdom that we con-
tribute will be creative, constructive, and genuinely beneficial
to the state and the nation, as well as truly fulfilling the
purpose of our life. Hence we should determine our thinking
and our revolutionary course in the light of the Three People's
Principles and the philosophy of the people's livelihood, which
are based on the principles of altruism and sincerity.

We should make full use of our innate virtues to develop
our understanding and act with unity and determination to
overcome all obstacles. We must exert ourselves to the utmost,
and even if this requires us to sacrifice our lives to attain
benevolence and righteousness, we must do so willingly and
without fear. The ancient saying: "One should sacrifice his
own life to achieve benevolence, but not covet life to injure
benevolence," should be the principle of our revolutionary
action. Furthermore, it is only by genuine revolutionary
action that we can give meaning to the idea of creative work.
This is the unique spirit of our revolutionists in carrying out
the Three People's Principles for the salvation of the country
and the world. In short, "sinc^^

. With sincerity, one knows only altruism

and not selfishness. With sincerity, one works to attain benev-
olence, with no thought of difficulties or dangers, and with

160 CHINA'S DESTINY

confidence in ultimate success. This is precisely what our
Leader's theory of "to know is hard, but to act is easy" means
when applied to the revolutionary movement.

I have already stated that the present preliminary success
of the Nationalist Revolution marks the real beginning of
national reconstruction. In other words, the present stage of
the Nationalist Revolution marks the realization of the prin-
ciple of nationalism, from which we must advance to the
fulfillment of the principles of democracy and the people's
livelihood. It should be remembered that the revolution's
destructive operations cannot be accomplished by chance.
Only by determined and unfaltering faith, accompanied by
absolute sincerity and spontaneous endeavor, can ultimate
success be achieved. Constructive revolutionary work requires
that all citizens labor earnestly and humbly, and seek the
truth through concrete endeavor. Then there will be results
according to plan. Sun Yat-sen once said: "Nothing is more
difficult than destruction; nothing is easier than construction."
The failure of reconstruction after 1911 was due to the people's
neglect of construction and their assumption that revolution-
ary methods were not necessary for reconstruction. We must
not fall into this error again, but must make destruction and
reconstruction proceed simultaneously. For reconstruction,
we must apply the same spirit and the same methods adopted
in the Revolution and the War of Resistance.

Sun ^ at - sen ,dmdedj]^j^pcess of revolutionary recon-
sjtruct^^ ^~^^^^^ n ^^ n ^ Political

Tutelage, and Constitutional "5ovSrpbut the funda-

t j ie development

of education, military affairs, and economics. These three
subjects are inherently interrelated and cannot be separated.
It can be said that if progress is achieved simultaneously in
each of these three fields, the state will be rich and strong,
while if any one of them is weak, the nation will decline.
This holds true not only as the basic principle for the building
of a modern state, it also accords with the history of the state

CONTENTS OF THE NEW EQUAL TREATIES l6l

building activities of China's ancient dynasties. Our present"
aim is to build a state based on the Three People's Principles
in order to survive in the world and to carry out our responsi-
bilities to the world. It is necessary, therefore, that we first
achieve the integration of education, military affairs, and
economics, before we can complete the total task of national
reconstruction. We should base our educational program on
the essential principles of China's Six Arts, which means
training our citizens for self-defense, so that each citizen may
devote his energy to production, and offer his body for
national defense; and so that both his hands and his brain
may be exercised, and his wisdom and virtue are practiced.
In this way, we can correct once and for all the defects of
lethargy, weakness, hypocrisy, and boastfulness of the past.
Our economic program, based upon the independence and
freedom that China has attained, must seek a balanced de-
velopment of the national economy as a foundation for state
planning and the people's livelihood, and must correct the
past errors of piecemeal, partial, and unequal development,
which undermined national defense and the people's liveli-
hood. In the conduct of military affairs, our national defense
and culture must be integrated, and national defense and the
people's livelihood must be regarded as a single problem.
Only in this way can China become a strong, nationalist or-
ganization for defense, able to survive in the world, and to
fulfill her responsibility of safeguarding world peace and par-
ticipating in the liberation of mankind.

The fundamental jvvork of natjpi^reco^^
upon the integration of education, military^^
npmics. To ccTm^^

main line^ofjreco^

political, and e^onomic^^^ that these pro-

grams are actually put into effect. In capitalist countries,
politics are affected and even controlled by economics. If
we desire to replace our hundred-year-old, restricted, un-

1 62 CHINA'S DESTINY

balanced, semicolonial economy with a free and independent
economy that will satisfy the requirements of national de-
fense, we must employ political power to guide economic
development. If we wish political reconstruction to be healthy
and effective, we must have social reconstruction to provide
a solid foundation for carrying out political measures. For
the success of social reconstruction, the negative and passive
attitude of the people in the past toward the state and the
nation must be corrected. Therefore, psychological and ethical
reconstruction are the starting points of all reconstruction.
Only whenjJh^e five lines of reconstruction have achieved
results can we succeed in integrating the educational, military,
and economic tasks of reconsH^cHonT"""" ___~ -^~,,. w ^,.

In my booklet, The System and Practical Program of the Three
People's Principles, I have already described in detail the prin-
ciples and program of national reconstruction discussed above.
Here I am going to point out the^^cm^^ai^^^these five
lines of reconstruction, and indicate certam^directions for

" adult citizen, according to his pro-

fession and position, should have a thorough understanding
of one of these central aims in order to promote his work,
and every young person, according to his interest and course
of study, should select one of these directions as a guide to
develop his abilities. Only when each and every citizen does
this can the work of national reconstruction be successful and
the existence of the state be safeguarded.

i. Psychological Reconstruction. The psychological effects of
the unequal treaties upon our citizens were loss of self-con-
fidence^^ on and a blind

fear of and subservien^^

deceit, and the deteriorationj^^ culture. Now

thaT^elm^ual treaties have been abolished, all citizens
should ask themselves: "Has every one of our psychological
weaknesses been corrected?" If the people cannot correct
these weaknesses and develop ideas of independence and

CONTENTS OF THE NEW EQUAL TREATIES 163

autonomy, and begin again to act as free and independent
citizens, then it is inevitable that, psychologically, they will
remain slaves to foreigners, and that politically they will be
vassals and dependents of foreign countries.

Henceforth, therefore, the psychological reconstruction of
the people should be ]t based n pn .the, deyel^^^
pendent ideology, in ^ which the greatest emphasis jmustjbe
placed on a revival of the nation's anc^
cultivation of genuinely scientific knowledge. As to the na-
tion's original culture, its essence is found in China's three
far-reaching virtues of wisdom, benevolence, and courage,
and the sincerity with which these virtues are put into prac-
tice. The teachings of Sun Yat-sen were based on China's
ancient culture, and combined with this the most advanced
theories of the world in order to formulate China's superior
principles of national reconstruction. Among these teachings,
his work dealing with psychological reconstruction, "Sun
Yat-sen' s Theory," was especially applicable to the particular
disease that ailed the nation. This work is the most valuable
guide for psychological reconstruction, and the movement
for the development of an independent ideology should adopt
it as a standard. As to scientific knowledge, we must not only
adopt Western scientific methods and principles, but also
sweep away the century-old habits of servile dependence and
blind submission to others, and thus restore the original
creative power of our nation. In short, our citizens must be-
come actively creative, must use their own initiative, and
must transform their cold lethargy into a warm enthusiasm
for progress. In particular, they must transform their present
attitude of passivity and depression into positive, determined,
and daring action, and cultivate the ancient traditions of
neatness, austerity, practical action, and earnest endeavor.
Only then can we establish the psychology for revolutionary
reconstruction.

^Ll^^ recon^ruction

rests on primary and middle school teachers throughout the

1 64 CHINA'S DESTINY

country. Because they are the guardians and tutors of the
young students' morality, knowledge, and physical condition,
their effect upon our future citizens is deeper and greater than
that of college professors. The character of young students is
not yet definitely molded; their knowledge is still scanty and
easily susceptible to outside influence, like a piece of white
paper that can be painted red, black, gray, or yellow. If the
children are weak or unruly, then the youth will not be easily
molded by state ideology and national virtues. If the young
people lack self-respect and ambition, how can adults shoulder
the heavy responsibility of the building up and rehabilitation
of the state? Thus, order or chaos in the state, and life or
death for the nation, depend upon the multitude of self-
sacrificing, hard-working, "nameless heroes' 5 that teach the
primary and middle school students.

It is essential that the guardians of these young people
realize that they are responsible for the life of the state; .that
they are sowing the seeds for the survival of the state and the
independence of the nation, so that one or two generations
from now there will be a continuous supply of reliable per-
sonnel at the disposal of the state. In the political and social
fields, it is particularly necessary to recognize the importance
of primary and middle school education; to give it special
attention, encouragement and advice, so that it can develop
on a basis of equality with university education in respect to
finance and personnel When primary and middle school
education become more wholesome, psychological reconstruc-
tion will automatically succeed. Then the independence and
freedom won in the War of Resistance will have a solid
foundation, and the psychology of revolutionary reconstruc-
tion will become a reality. The young men of today who
aspire to devote their lives to educational work should not
despise the profession of primary or middle school teaching,
but should rather regard it as a task of first magnitude in the
service of the state and the rehabilitation of the nation. The
greatest contribution to national reconstruction can be made

CONTENTS OF THE NEW EQUAL TREATIES 165

by those young people that aspire to become middle or pri-
mary school teachers, particularly those that take up the
basic task of primary education; that bury themselves in hard
work and devote themselves to cultivating the abilities of
their students; and that refrain from seeking fame, social
reputation, and lofty careers. Only if there are many in this
category will the psychological reconstruction of our people
achieve success.

2. Ethical Reconstruction. The points set forth in the Program
for General Spiritual Mobilization of the People call for the develop-
ment of a spirit of belief and confidence in national recon-
struction, with special emphasis on the moral requirements
for national salvation. Henceforth, ethical reconstruction
should foimdation the

B ^

required for national salvation, which need not be sought
abroad. For five thousand years, we Chinese have been able
to maintain the life of the nation, preserve the existence of
the state, and save the nation and state from dangers, dis-
aster, and chaos, and enable them to rise again because of
these virtues of national salvation that have been accumu-
lated and developed by the people. Therefore, to cultivate
the virtues jgLlL<|tional salvatij^i^bu^^
glorify our original system of ethics. The

,

and on the virtues of integrity, understanding, and srasejof
hgjgi!^ source ~oF the four basic prin-

ciples and the eight virtues, which in turn are based on
"loyalty" and "filial piety." To fulfill the principle of com-
plete loyalty to the state and of filial piety toward the nation;
to be altruistic and not seek personal advantage; to place the
interests of the state ahead of those of the family; such is the
highest standard of loyalty and filial piety.

We must recognize that an individual can survive and make
progress only as part of a state and a nation. Thus the life of
an individual depends upon the life of the state and nation.
The authority of the Government should be based on the

1 66 CHINA'S DESTINY

free and voluntary will of the individual. Moreover, the
demands of the state and the nation should become the free
and voluntary demands of individuals. To avoid or tamper
with the law is, of course, not to be tolerated, and the people
should not seek to avoid heavy responsibilities. Every citizen
that fulfills the principles of loyalty and filial piety must dare
to assume responsibility that others do not dare to assume,
and must endure suffering that others cannot endure. Only
then can the life of the state and nation be maintained and
its future enriched and brightened. In particular, the youth
of the country should stand in the front lines in time of war,
should pioneer in the frontier regions for the development of
the country, penetrate into the rural areas for social service,
and undertake the basic tasks of the state. They must com-
pletely eliminate the present practice of loafing in the cities
in peacetime, and hiding far away in the interior in time of
war. Only thus can a citizen fulfill his loyalty to the state and
his filial duty to the nation. The careers that the youth should
follow hereafter are separately explained in this section. Here
I want especially to point out one objective as a model of
patriotism for our young men. Our forefathers said: "To
fight without courage is not filial.' ' In this war, none can
surpass the pilots of the air corps in daring and importance.
Every young man should make up his mind to be a soldier
and an aviator. Then the people's three-hundred-year tradi-
tion of cowardice and downheartedness can be broken, and
the lofty spirit that has characterized our nation for five
thousand years can be revived. Then we can lay the founda-
tion for a new ethics for a modern state, based on the su-
premacy of the state and the nation. Then we can achieve
the personality of free and independent citizens, and the
Chinese Republic will forever exist in the world and never
again be enslaved or extinguished by any other nation.

3. Social Reconstruction. The New Life Movement is the basic
movement for social recojisfc^ is to mod-

Only when the people are modern-

CONTENTS OF THE NEW EQUAL TREATIES 167

ized will they be fit to be independent and free citizens, and
only then can the state be independent and free. The stimu-
lation of the nationalist spirit and the cultivation of the
nation's virtues will cease to be mere empty phrases only
when they are evidenced in the daily life of all citizens. The
promotion of local self-government and the reconstruction
of the national economy must also be based on the daily life
of the people. Thus the^Jewjyfe Movement^m^^be regarded
as the combmed movement of all five phases of reconstructjonj
and as the foundation ^ for_future social reconstruction. The
most important items in its program are training for local
self-government and planning for the people's recreation and
education.

In rc^^d^^c^^^^^rwa^nty we must remember that
in ancient times the organization of the state began with the
relation of the individual to the family; [progressed] from the
family to the clan, which was held together by blood relation-
ship; from the clan to the pao chia, and then to the village
community, the members of which were bound together by
the system of mutual assistance and joint responsibility. From
the village communities, it extended to the counties and
provinces, thus forming the unified organization of the Chi-
nese state. Thus, alAo^h^the^form of the Ghinese.jtate was
monarchical, the spirit of government of and by the people
jjrvailed. Unfortunately, t&e^'este^ of the

village community fell into disuse during the three hundred
years of the Ch'ing dynasty. 1 Since the latter part of the Ch'ing
dynasty, all thought has been based on foreign theories, and
the fact that the rural districts and villages constitute the
foundation of the state has been forgotten. The social re-
construction of the rural districts and the towns is essential

i . On the contrary, the pao chia sys- the Anhwei and Hunan militia that
tern, first introduced in the Sung dy- finally defeated the T'ai-p'ing Re-
nasty, was re-established and strength- bellion under the leadership of Tseng
ened during the Ch'ing dynasty, and Kuo-fan (with substantial foreign
was used successfully to suppress op- aid), were largely recruited through
position to the government. Indeed, the pao chia system.

1 68 CHINA'S DESTINY

for the development of local self-government. Success in re-
constructing the rural districts and towns will ensure a healthy
development of self-government. When local self-government
is healthy, it will serve as the basis for realizing the principles
of democracy and the people's livelihood.

As for measures for the recreation and edjjcation^oJL the
people^" tKese will necessarily remain activities,, of the rural
districts. Recreation and education^Jiogether^with the four
essentials of cloJGngJ^Sod^ shelter., and employment, are the
funZamental problems of the people's livelihood. Recreation
and education in particular transcend material life and con-
stitute the foundation of spiritual life. Universal recreation
and education for the people can be achieved only by the
independent initiative of the rural districts. Public welfare
projects, such as nurseries, maternity centers, social clubs, and
public hospitals in the rural districts must be developed by
the collective planning and endeavor of the people of these
districts. Only then will it be possible to create a new society
in which there will be "provision for the aged, occupation
for the youth, and support for the widowers, widows, child-
less, orphans, cripples, and invalids."

It is clear that the resgrasibilityfpr social reconciliation
re jt s JBm^ in

tejrural districts. Only these authorities can shoulder the
responsibility of giving guidance to the development of local
self-government and, in addition, promote the establishment
of recreational and educational facilities. It is to be hoped
that all those that are interested in building up the state will
recognize that all forms of service to the state should include
a period of service with such local authorities; they should
practice the work of local self-government, and should recog-
nize that the local authorities in the rural districts and the
chiefs of pao chia constitute the basic occupations in social
reconstruction. Do not linger in the metropolitan areas, and
do not be lured by empty fame; live a simple and frugal life
and engage in the basic work of national reconstruction.

CONTENTS OF THE NEW EQUAL TREATIES 1 69

Then each individual may lay the foundation for a life career,
and the military, educational, and economic reconstruction
of the state will be positively safeguarded.

4. Political Reconstruction. The Program for the War of Resist-
ance and National Reconstruction contains concrete provisions
for political reconstruction which have been carried out one
by one during the past five years. But with regard to the
political system and judicial and legal regulations, the people
must display a^^i^^mtiativejand spontaneous enHeavor
injg^^ a

political system or a legal system to become wholesome and
effectiveT T&eTKequal treaties EareTSovi^
thus the spirit of initiative and spontaneity is even more es-
sential for the citizens of a free and independent state. I have
often said: "Only self-endeavor can bring freedom, and only

citizens of the

state do not develop a spirit of self-endeavor and self-reliance,
then there will come a day when the position of independence
and freedom that we have gained will be lost. The citizens of
the state are, therefore, the motivating power in political
reconstruction, and the spirit of initiative and spontaneous
endeavor must give reality to the foundations of political re-
construction. Only then can China's national structure be-
come healthy, and the administration of the state increase its
efficiency. Therefore, future political reconstruction should
be based on a vigorous cultivation of the spirit of initiative
and spontaneous endeavor, and its most basic aims must be
the development of democratic institutions and the building
of a strong system of national defense.

It should be noted that China's democratic system will
certainly not be patterned on the nineteenth-century demo-
cratic theories of individualism and class consciousness of
Europe and America. The political reconstruction of our
country necessitates laying the foundation for the Five Power
Constitution and a total people's government. We must not
be fooled by empty slogans or by false appearances, but must

170 CHINA'S DESTINY

proceed gradually and according to specific plans. Only then
can China become a modern democracy and attain a position
of equality with other nations in the international com-
munity. 2 In this connection, I hope that all young men in
the country that are interested in political work will deter-
mine their objectives and shape their ambitions in accordance
with the needs of the state and the trends of the times.

Under Jhe hDii^^

an abnormal development^ a few of our metropolitan areas,
wIucKTiaveTecome the centers of population and of political
activity. The result is that the njur^^are^^ve^^m^lMd
waste., ^4,,t^JfcQiifi5k^eSons deserted, thereby causing the
strength^ ofjthe state to decline and inviting frequent foreign
encroachments. Now that the unequal treaties have been
abrogated, political planning must henceforth seek to elim-
inate the one-sidedness and decadence inherited from the
past, so that all sections of the country will be evenly devel-
oped. The development of border regions should be the
objective of the youth throughout the country in deciding
upon their careers. It is to be hoped that our capable young
men of fine character will revive the spirit of Ma Fu-po
[Ma Yuan] and Pan Ting-yuan [Pan Ghao] and direct their
ambition toward the border areas, devoting their efforts to
political reconstruction, submerging themselves in hard work,
and becoming pioneers who employ both brawn and brain.
Sun Yat-sen taught us "to set our ambition on doing big
tasks 3 and not on being big officials." We must recognize

2. In the revised edition, reference modern democracy. . . ." This omis-

to the Five Power Constitution is sion of any reference to the Five Power

omitted, and the passage is altered to Constitution may well be due to the

read: "... laying the foundation for a fact that when the revised edition of

iotal people's government during the China's Destiny was issued, the Draft

period of political tutelage. . . . Only Constitution already drawn up by the

then will the constitution to be pro- Kuomintang was the subject of vig-

mulgated in the constitutional period orous criticism from all sides for its

not become a mere piece of paper, undemocratic character,
and only then can China become a

CONTENTS OF THE NEW EQUAL TREATIES 1 71

that the settlement of the border areas is a task of first im-
portance in national reconstruction, and that the contribution
of a settler in the border areas to the political reconstruction
of the state far exceeds in accomplishment and value that of
city workers and officials. Young men that desire to accom-
plish big tasks for the state and to contribute great blessings
to the nation must neither look for quick results nor be im-
patient for immediate credit, but must decide upon this
objective as their life career, in order to carry out their
obligation to the state and the nation.

5. Economic Reconstruction. In the Program for National Eco-
nomic Reconstruction, I have already indicated the essential
elements in China's economic reconstruction. This program
was based on the essence of Sun Yat-sen's "Industrial Plan"
and outlined the basic tasks that must be accomplished in
order that China's national economy might be adapted to
the requirements of national defense. During the five and a
half years of the War of Resistance, China's national economy
has been moving in the direction of integrating national
defense and the people's livelihood. The abolition of the un-
equal treaties will further enable China to employ her position
of independence and freedom to advance rapidly on the road
to economic independence and "rebirth through self-endeav-
or." Meanwhile, in relation to China's "rebirth through
self-endeavor," ^ar^^^^mgh^^mu^^e given to indus-
trialization. Our future economic reconstruction must be
based on the development of an industrialized economy. In
this program, the most important point is to prepare to put
the "Industrial Plan" into effect, and thereby complete our
basic policy of the equalization of land rights and the re-
striction of private capital. The scope of the "Industrial
Plan" outlined by Sun Yat-sen far surpasses that of the Han
and T'ang dynasties, and its aims are synchronized with the
changing conditions in contemporary international econom-
ics. It is unquestionably the most important guide for China's

172 CHINA'S DESTINY

economic reconstruction. The preparatory work will naturally
be difficult, and therefore all citizens, beginning today, must
make up their minds to work actively in carrying it out.

In this connection, there is one point that must be called
to the attention of our young people that are interested in
economic affairs. The abolition of the unequal treaties has
already removed the multiple bonds from China's industry.
But Chinese industry from now on must progress with the
greatest possible speed, before it can hope to equal the high
degree of skill and centralized management that characterize
the industries of the advanced nations. Therefore, our young
men must aspire to become engineers, to improve their
technical knowledge, and to devote themselves to the develop-
ment of manufacturing industry. They should further seek
creativeness and inventiveness through practical work. Only
then can China's economic reconstruction be assured of
success.

In summary^the scope, the plans, and the determination

m . i . . -w ^^^^^''^^ aa ^ aa ^^'>^e^ m ^^ vtv ^ ial ^^ vn , l ^ f t , i( , , j^ft ,,, tmrtm ,^,, r ,^. r ^a B .sH!Bn^*!^' - " r "* "" '" ' ' "'

and a^^ plaos^shQuJid, be derived

from the lessons of Qhina^sjive thousand years of history, and

evolution of the world situatiqu. As to

practical application, it should proceed from small to large-
scale tasks, and from what is near at hand to what is distant,
and there must be a central point of focus. It should be noted
that, if there is no strong will and discipline, and no able
management, the main task will be forgotten in the course
of working out details. If we do not apply ourselves to im-
mediate tasks, we will find ourselves seeking lofty and distant
goals without any firm foundation for our effort. I am there-
fore going to emphasize the essential points in the planning
and execution of the program for national reconstruction,
and indicate certain directives that should serve as a guide
to the youth of the country in deciding on their careers.
Heretofore, none of the plans for Chinese reconstruction

CONTENTS OF THE NEW EQUAL TREATIES 173

could be easily implemented because of the restrictions im-
posed by the unequal treaties. However, now that the bonds
of the unequal treaties have been loosened, if reconstruction
along various lines does not proceed rapidly, it will be the
responsibility of the citizens, who are the masters of the state.
If our citizens are to shoulder the responsibility for all the
different phases of reconstruction, we must first ask ourselves,
have we the ability? Especially should we ask ourselves, have
we the confidence? Is there any type of reconstruction that
does not require capable and confident personnel? Is China's
present personnel capable of shouldering the responsibility
for the various phases of reconstruction? Reconstruction plans
and their execution must have a point of emphasis and a
foundation. Of course, the five phases of reconstruction that
have been described should be conducted simultaneously,
each one being indispensable. But th^emphasi^^
placed on economics. Sun Yat-sen pointed out to us that the
people's livelihood occupies a place of primary importance
in reconstruction, and that the basis of the people's livelihood
is economics. Economics is not only the point of emphasis,
but also the prerequisite of all phases of reconstruction.
Economic reconstruction on the basis of the people's liveli-
hood stems from the principle of "enjoyment by the people"
[government "for" the people]. We must adopt a planned
ecpnpmy^ai^

survival ^o^verj^^citizen, and it is imperative that we even-
tually accomplish the objective of "transforming [all] capital
into state capital [nationalization of capital], and transforming
[all] enjoyment into enjoyment by the masses," in order to
bring about a peaceful and universal revolution according
to the principle of people's livelihood.

The criterion of economic reconstruction must be the "In-

dustrial Plan"HpH?^^ to complete the

Plan," we must first have

the personnel to carry out the Plan and the material resources

174

CHINA'S DESTINY

for its fulfillment. The following tables show the personnel
and material resources needed for the first ten years of prac-
tical application of the " Industrial Plan."

TABLE I

Table of work to be accomplished during the first ten years of practical appli-
cation of the "Industrial Plan." This table deals only with nine items by quantity:
civil engineering [construction], machinery, electric machinery, aviation, water
utilization, building, textiles, sanitation, and mining and metallurgy. Other
items are omitted.

ITEMS

ULTIMATE GOAL
to Fulfill "Industrial Plan"

Goal for
FIRST TEN YEARS

A. Construction [Civil Engineer-

ing]

Railroads 140,000 km. 20,000 km.

Highways 1,500,000 km. 225,570 km.

Harbors 186,000,000 tons clearance 100,000,000 tons

B. Machinery

Locomotives 24,000 3jOOO

Passenger and Freight Cars 352,000

Automobiles
Merchant Ships
Power Generators
Tooling Machines
Other Machines

7,677,210
14,417,400 tons
40,000,000 h.p.

4,500,000

7,000,000

C. Electric Machinery

Electric Power 20,000,000 watts

(IncludingHydroelectric)
Telegraph Lines 36,000,000 km.

3,000
18,000,000

Wireless Stations
Receiving Sets
Telephones

Aviation
Planes for Civil Use

Water Utilization
Steamer Routes
Junk Routes

New River Steamer Routes
New Trade Ports
Dikes for Flood Prevention
Irrigation

9,000,000

120,000

Water Power

F. Building
Dwelling

30,000 km.
500,000 km.
5,000 km.
1,200

18,660 km.
250,000,000 mow
[6 mow I acre]

10,000,000 watts

50,000,000

44,000
45^570
3*043*300 tons
10,700,000 h.p.

150,000
1,500,000

6,200,000 watts

36,000,000 km. a

3,ooo b

18,000,000

2,250,000 d

12,000

18,000 km.

200,000 km.

1,000 km.

700

18,660 km.
100,000,000 mow

2,000,000 watts
10,000,000

CONTENTS OF THE NEW EQUAL TREATIES 175

ITEMS

ULTIMATE GOAL
to Fulfill "Industrial Plan"

Goal for
FIRST TEN YEARS

G. Textiles

Cotton Spindles e 10,000,000

Cotton Looms 320,000

Hemp Spindles e 277,000

Hemp Looms i5?7oo

Woolen Spindles e 580,000

Woolen Looms 16,500

Silk Spinning Machines 236,700

Silk Looms 94,000
Dyeing and Printing Machines

Type A 114 units

Type B 280 units

Knitting Machines 16,560

Sewing Machines 300,000

H. Sanitation (Public Health)

General Sanitation Centers 200

County Sanitation Centers 2,000
Village and Town Sanita-
tion Centers

I.

160,000

Mining and Metallurgy (Annual Output after Ten Years)
150,000,000 tons
1,774,000 tons
5,560,000 tons
25,000 tons
13,000 tons
2,000 tons
1 1 ,500 tons 8
25,000 tons
20,000 tons

3,000,000
96,000
83,000

4,710
1 74,000 f

4,950
7 1 ,000
28,200

34 units
84 units

4,970
90,000

100
2,000

80,000

Coal

Mineral Oils

Iron and Steel

Copper

Lead

Zinc

Aluminum

Tungsten Ore

Pure Antimony

Tin, Refined

Mercury, Refined

30,000 tons
500 tons

a In the revised edition, the ten-year goal for telegraph lines is reduced to
9,000,000 km.

b In the revised edition/ the ten-year goal for wireless stations is reduced to
2,000.

In the revised edition, the ten-year goal for receiving sets is reduced to
4,500,000.

d No figures for telephones were given in the first edition.

e Some take this to mean bales of cotton thread; similarly with hemp and wool.

f In the revised edition, the ten-year goal has been increased to 420,000, of
which 274,000 are for foreign style woolen cloth, and 146,000 for beiges.

8 In the revised edition, the annual output of aluminum after ten years is
raised to 55,500 tons.

[In the first edition of China's Destiny, no figures were given
for production of chemicals. The revised edition gives the

176 CHINA'S DESTINY

following figures for the annual output of basic chemicals and
other chemical products to be achieved after ten years:]

Sulphuric Acid 2,500,000 tons

Nitric Acid 100,000 tons

Hydrochloric Acid 150,000 tons

Pure Soda 1,230,000 tons

Caustic Soda 625,000 tons

Motor Car Tires 2,000,000

Paper 2,000,000 tons

Cement 63,850,000 tons

Glass 1,500,000 tons

Salt 3,750ooo tons

Sugar 1,500,000 tons

Essential Chemicals 100 kinds

[An even more remarkable omission in the first edition of
China's Destiny was the absence of any figures on agricultural
production. The revised edition gives the following figures as
the goal for agricultural output at the completion of the first
ten-year plan:]

Rice 756,000,000 shih tan [Chinese

bushel i shih
tan equals i oo li-
ters, or 2.8378
American bush-
els].

Wheat 882,000,000 shih tan

Miscellaneous Foods 1,003,000,000 shih tan

Beans 686,000,000 shih tan

Cotton 23,000,000 shih tan

Hemp 2,000,000 shih tan

Wool 1,680,000 shih tan

Raw Silk 300,000 shih tan

Timber 42,500,000 cubic feet

TABLE II

Table of Personnel of all grades required during the first ten years of practical
application of the "Industrial Plan.' 5 This table includes the personnel required
in seventeen categories: railways, highways, aviation, water utilization, loco-
motives, automobiles, electrical power, mining and metallurgy, harbors and
ports, telecommunications, merchant marine, food industry, clothing, housing^
public health, machinery, and printing.
&. Number of university and technical school graduates:

First Edition Revised Edition

Civil Engineering 110,000 9O?ooo

Mechanical Engineering 4 r j9OO same

CONTENTS OF THE NEW EQUAL TREATIES 177

First Edition Revised Edition

Electrical Engineering
Mining and Metallurgy
Hydraulic Engineering
Architecture
Chemical Engineering
Textile and Dyeing
Navigation

Aeronautical Engineering
Geology and Geography
Medicine

Arts and Sciences, Law, Commerce, Eco-
nomics, etc.

Agriculture

12,400

8,600

12,000

25,000

7,200

3,600

7,000

7,200

2,400

232,500

31,000

13,700

same
same
same
19,800
same
same
same
same
same

same

No figures given

77,500

131,700

94,500

same

20,400

27,900

23,300

same

41,200

40,000

12,000

same

25,000

same

25,000

8,100

8,200

same
30,500
same

1 7,000

same

43,200

107,000
18,000

B. Number of graduates from higher or junior grade vocational school courses 1

First Edition Revised Edition
Civil Engineering
Mechanical Engineering
Electrical Engineering
Mining and Metallurgy
Telecommunications
Aeronautics
Hydraulic Engineering
Architecture
Chemical Engineering
Textile and Dyeing
Printing
Agriculture

C. Graduates from Aviation Schools

D. Graduates from General Courses in Senior

Middle Schools and Higher Vocational
Schools

E. Graduates from Junior Middle Schools and

Lower Vocational Schools

F. Graduates of Senior and Junior Schools of

Medicine, Pharmacy, and Nursing

G. Graduates of Midwifery Schools

TOTAL (of All Categories A-G)

TABLE III

Table showing quantities of principal raw materials required during the first
ten years of practical application of the "Industrial Plan." Based on the needs
of the following categories of development: railways, highways, locomotives,
automobiles, aviation, water utilization, merchant marine, electric power, tele-
communications, housing, household utensils, and machinery.

103,400 same

186,600 same

i ,070,000 same

225,000 same

2,481,200 2,704,300

Iron
Steel

First Edition
7,992,000 tons
25,883,000 tons

Revised Edition
9,007,000 tons
28,466,000 tons

178 CHINA'S DESTINY

First Edition Revised Edition

Copper 1,080,000 tons 1,381,000 tons

Lead i , 1 1 9,500 tons i ,41 6,000 tons

Zinc 541,000 tons 542,000 tons

Coal 505,505,000 tons 515,881,000 tons

Gasoline 13,134,200 tons 13,879,000 tons

Fuel Oil 24,824,400 tons 28,815,000 tons

Lubricating Oil 1,073,000 tons 1,184,000 tons

Asphalt 288,000 tons 75i 5 ooo tons

Paints and Varnish 283,400 tons 308,000 tons

Cement 56,546,000 tons 70,734,000 tons

Glass 1,977,500 tons 2,736,000 tons

146,900,600 sq. meters
3,390 cu. meters

Crude Rubber 53>7oo tons no figure given

Rubber Tires 2,709,420 2,710,000
Lumber 39,200,000 pieces

245,000 tons

494,280,000 cu. meters 511,746,000 cu. meters

The completion of the "Industrial Plan" will require a
period of from thirty to fifty years. The above tables list only
the work, personnel, and materials required during the first
ten years. A first glance at these figures may lead some people
to think them too large, and the proposed projects too difficult
to accomplish. These figures, however, when compared with
China's four hundred and fifty million people and her area
of over one billion square kilometers, are in reality too small
rather than too large. Take cotton looms, for example: Even
when we have fulfilled our quota in this category, production
will be only sixteen meters of cotton goods per capita per year,
and the quota to be achieved during the first ten year period
will be only about ten per cent of that amount, which means
only an average of i .6 meters a year for each person. 8 Again,
take automobiles. The complete quota will mean one car for
every one hundred and fifty persons, and after the first ten-
year period, only ten per cent will be available, or only one
car for each fifteen hundred persons. As for personnel, it is
certainly not a large number for a population of four hundred

3. This percentage does not cor- goal for cotton looms is given as
respond with the figures given in the thirty per cent of the total goal,
preceding tables where the ten-year

CONTENTS OF THE NEW EQUAL TREATIES 179

and fifty million to supply 2,460,000 4 graduates of various
grades of schools in ten years.

Take all the officers in the army at present, for example.
Those that have received a general or higher education and
are qualified as full-fledged administrators number over five
hundred thousand. With a short period of special training
after demobilization, these officers would readily become the
personnel framework for economic reconstruction. We need
only consider this one fact to be convinced that we possess an
abundance of personnel, and that what is required is only
confidence to carry on with vigor, and all phases of recon-
struction will be successful. If our citizens should still be
bound by old habits, with the feeling that ec it is hard to suc-
ceed," it will be due to the lack of a firm grasp of Sun Yat-
sen's doctrine that "to act is easy," and the effectiveness of
vigorous effort. Three thousand years of monarchical govern-

overthrown by w p,uyrjggjorglejLS ( a result of common confidence
and unified effort. If we apply the same confidence to "carrying

,. !.. "fKX 'lrtk'"W'<5!^ iA _ j , rf, ,. tw , ,i,, n ,,, '

out the "Industr^ is absolutely no reason for

Comparing China with Japan, I am going to quote a part
of Sun Yat-sen's conversation with me on the battlefield of
San Ho Pa in the seventh year of the Republic [1918] to prove
that the Plan will surely succeed. Dr. Sun said: "Japan's
population and territory are eight to ten times smaller than
China's; therefore, a project that takes Japan eight to ten
years to finish would require only one or two years in China."
If we are true disciples of Sun Yat-sen, with faith in his
superb words and brilliant theories, why should we be hesitant
and afraid of difficulties? The failure of China's efforts Jo
build uRjilS^t^^

that the

'

4. Actual total, as given in first edition, 2,481,200.

180 CHINA'S DESTINY

s, and it is my belief that the ten-year plan described
in the above tables will not fail because the goals are too
large, but rather that these minimum goals will be overful-
filled. If the past experience of other countries is taken into
consideration, plus the fact that railways and highways were
constructed in the midst of internal troubles and external
encroachments during the ten years after the inauguration
of our Nationalist Government, then my estimate would be
that it will not be surprising if the quotas for railways, high-
ways, aviation, harbor construction, dikes, irrigation, and
electric power will be fulfilled by more than one hundred
per cent. [Revised edition adds: "And when the reconstruction
of the first period shows results, the wealth and power of the
people will be increased, improving the power and speed of
succeeding periods and enabling the entire program of the
"Industrial Plan 5 ' to be finished ahead of time. 53 ]

As to personnel, the carrying out of the "Industrial Plan 53
requires the number of college, middle, and other school
graduates listed above. Are our present schools sufficient to
train such personnel to supply the needs of economic recon-
struction? Take our present colleges, technical schools, and
senior and junior middle schools. In the five years from 1 936
to 1941, graduates from all these schools numbered only
47 I >739> whereas in the first ten years of the "Industrial
Plan 55 it will require 2,460,000 [revised edition: 2,700,000]
excluding those not required for the "Industrial Plan. 55 [In
the revised edition, the following was added: "Moreover,
mechanical and civil engineering, mining and metallurgy,
medicine, and other applied sciences cannot be thoroughly
mastered without physics, biology, mathematics, and other
natural sciences as their basis. Therefore, beside the training
of industrial personnel, the schools must also emphasize
natural sciences to provide the basis for applied science. 55 ]
We must, therefore, in the remaining years of the war, speed
up the strengthening of education and expand the schools, in
order fully to prepare for adequate personnel. It may be

CONTENTS OF THE NEW EQUAL TREATIES l8l

noted here that after the War of Resistance, anyone who has
but a single skill will not have to worry about lack of oppor-
tunity to offer his ability for the work of building up the
state. It should further be noted that persons engaged in all
kinds of national reconstruction work should each do the work
of two people and each day perform the work of two days,
before they can meet the requirements of the state and society.
An ancient philosopher said: "Think of emulating the wise
man whom you see." A proverb says: "It is better to go home
and make a net than to stand by the water to admire the fish. 53
We have observed the wealth and might of other nations.
We must then exert ourselves heroically to make the Re-
public of China just as wealthy and mighty, and furthermore,
to make our people's livelihood even more healthy and happy.
In regard to the people's welfare in China's plan of economic
reconstruction, we must reach the standard set in the second
article of the Program of National Reconstruction, drawn up
personally by Sun Yat-sen, which reads: "People's livelihood
occupies the JjtaJ2fj^

In regard to the four great requirements of food, clothing,
shelter, and movement for the people of the entire country,
the Government should endeavor, in co-operation with the
people, to develop agriculture to provide sufficient food for
the people, to develop textiles to provide sufficient clothing
for the people, to construct large-scale housing to provide
the people with comfortable dwellings, and to keep roads and
canals in good condition to facilitate the people's movement."
This is the primary aim of reconstruction, as well as the first
step in realizing the principle of people's livelihood. Since
the Republic of China is going to build such a wealthy,
mighty, healthy, and happy state, everyone of our citizens
should feel that time is too short. Only when a man does not
neglect his own duty will he be protected by the state, and
only when he exerts himself fully can he urge his countrymen
to common endeavor. Therefore, I earnestly expect the citi-
zens of the entire country, each to be self-reliant, to strengthen

1 82 CHINA'S DESTINY

himself, and to stimulate his fellows to common endeavor.
Especially, I hope that the youth of the country will decide
on their life careers, hold fast to their determination, and
fix their eyes on the objective, and devote themselves to
reconstruction in order to fulfill the mission of building up
the state an opportunity that occurs only once in a thousand
years.

CHAPTER SIX

FUNDAMENTAL PROBLEMS OF

REVOLUTIONARY NATIONAL

RECONSTRUCTION

i. The Problem of Establishing a Philosophy of Revolution
and Reconstruction

^^^^^^su^&s^ in thej^^ionalist Rev-
^

* nto t ' ie errors J2lll^

_* ntentmratjwith ajtittle jjgjn" ? n regard to the attain-
meriFof independenc^^^^
hand, and on the ptbi^Jbato -.-a psychology of"4uKning away
for fear of difficulties" and "avoiding the heavy and choosing
g^ie^^

I have clearly explained these two problems in the previous
chapter. In this chapter I am going to point out several basic
problems in building up the state, which are the key to its
success or failure, in the hope of arousing the vigilance of our
citizens as well as encouraging them. The first things to be
pointed out are the lessons from the successes and failures of
the Revolution of 1911. If our citizens can absorb these im-
portant lessons, the work of national reconstruction will cer-
tainly be successful.

We all know that the Revolution of 1911, in a very short
period, completely overthrew more than three thousand years
of monarchical government and two hundred and sixty years
of Manchu absolutism. Thereafter, Yuan Shih-k'ai's mon-
archic rule and Chang Hsun's restoration of the Manchu
throne both ended in failure. From this it would appear that

183

184 CHINA'S DESTINY

the Revolution was extremely successful. But in the ten years
or more after the 1911 Revolution, though the opportunity
of the World War was at hand, China was not only unable
to become self-reliant and strong, but on the contrary, ex-
ternal encroachments greatly increased and the internal situ-
ation grew worse. Must we not then consider the Revolution
as a failure? As faesuccsofhe Revolution was con-

cerned, it was only a success in destruction^ while the failure
wajf^^ That the destructive revolution

could be successful was due to the fact that the citizens were
heart and soul in opposition to the autocratic Manchu Gov-
ernment, which had been undermining the national sover-
eignty and humiliating the state. The failure in the con-
structive revolution was due to the citizens' lack of a clear
understanding that revolutionary reconstruction and destruc-
tion should proceed together; and even when there was such
an understanding there was no unanimity. Thus, as soon as
the Revolution of 191 1 succeeded [in overthrowing the Man-
chus], the citizens were misled by the saying that "the
success of the revolutionary army means the disappearance
of the revolutionary party," and assumed that no revolu-
tionary action was required for reconstruction. This was true
not only of the citizens, but also of comrades in the Revolu-
tionary Party. As a result, the warlords and politicians did as
they pleased. First, they used the provisional constitution as a
mask [to cloak their activities] and then they wrecked it;
first they organized political parties and then partitioned the
country and became self-appointed regional potentates. Dur-
ing this period of great opportunity for the state and the
nation, they lived a life of lethargy, fratricide, and self-
destruction. No punishment would be adequate for their
sins in ruining and betraying the state. But citizens, especially
the intelligentsia, the writers and scholars oppressed by the
warlords on the one hand and confused by the anti-revolu-
tionary propaganda of the imperialists on the other were
unable to understand the aims of the Father of our Country

PROBLEMS OF NATIONAL RECONSTRUCTION 185

or to have faith in the Three People's Principles. Their at-
titude toward the Kuomintang was either that of an apathetic
bystander or of an active antagonist, and they were unable to
recognize the inseparable relationship between the Kuomin-
tang and the life of the state and the people. They should
therefore shoulder a very large part of the blame. That was
why Sun Yat-sen saw that the basis of the success of the revolu-
tion lay in the psychological reconstruction of the people.
The essence of psychological reconstruction is to impart the
doctrine that "to know is difficult but to act is easy" to all
party comrades and to the people in general.

The reason for the success of the destructive part and the
failure of the constructive part of the 1911 Revolution was
entirely due, as pointed out by Sun Yat-sen, to the people's
"knowledge" or "lack of knowledge." He said: "What is the
reason for the success of the destructive revolution and the
failure of the constructive revolution? It was caused by
'knowledge 3 and c lack of knowledge. 3 In the revolution for
destruction, I started ten times and failed ten times, because
the majority of the people in China at that time did not know
that they had been conquered by the Manchus and thus, in
their apathy, they regarded the Revolution as a serious crime.
As the revolutionary movement subsequently spread, more
and more people realized the necessity of overthrowing the
Ch'ing Government and rehabilitating the Han [Chinese]
nation, and thereupon they rose and overthrew the Ch'ing
dynasty with great ease. They did not know anything about
constructive revolution, however, and even the revolutionary
party did not know what it was all about. Yet the hardest
part in revolutionary work is destruction and the easiest is
construction. Why should it be that though the difficult part
was accomplished, yet the easy part failed? Because it was
easy, the people did not realize the necessity for it and neg-
lected it, thereby causing its failure. Why should it be called
easy? Because the completion of destruction meant the dis-
appearance of the forces of resistance, after which nothing

1 86 CHINA'S DESTINY

was impossible and the people were free to act. That situation
was worlds apart from the period of plotting destruction,
when the least negligence would be followed by unpredictable
disaster. When we knew that the revolutionary overthrow of
the Ch'ing dynasty was necessary to save the nation, we
challenged difficulty and defied danger to do it. Subsequent
to the accomplishment of destruction, construction was re-
garded as easy and safe work that could be done in many
different ways without necessarily employing revolutionary
methods. That is why the work of construction failed. 35

How thoroughly and how correctly does this statement
point out the reasons for the success and the failure of the
1911 Revolution! Unfortunately, the party comrades of that
day and the people in general did not fully understand. This
was because our people had been seriously harmed by the
old precept that "to know is not difficult but to act is difficult/'
and did not know the philosophical truth that "to act is not
difficult, but to know is difficult." Sun Yat-sen said: "This
theory was deeply implanted in the minds of the scholars, who
spread it among the people, so that the difficult was regarded
as easy, while the easy was considered difficult. This caused
a decadent China, reluctant to face difficulties, to fear what
should not have been feared, and not to fear what should
have been feared. Therefore, the people neglected and avoided
the easy, and rushed to the difficult. They at first sought
knowledge in order to act, but when they could not obtain
the knowledge, they became despondent and gave up every-
thing in despair. Occasionally there were some courageous
people who spent their whole lives to acquire one item of
knowledge, but assumed that it would be even harder to
act upon it, so they did not dare to act despite their knowledge.
As a result, those who had no knowledge naturally would
not act, and even those who had knowledge still did not dare
to act. Thus nothing could be accomplished. That is the reason
why China became increasingly weak and decadent."

After the 1911 Revolution, the people and party comrades

PROBLEMS OF NATIONAL RECONSTRUCTION 187

in general did not realize the necessity of construction nor
that construction must be carried on by revolutionary means.
Though they had Sun Yat-sen's knowledge as their guide,
they still assumed that to know was easy and to act was
difficult. They neglected reconstruction, and especially could
not understand the doctrine of the people's livelihood. They
were contented with the mere form of nationalism and
democracy, and thus the constructive revolution failed.

The old saying: "To know is not difficult, but to act is
difficult/ 3 was not the traditional psychology of China. [In
the revised edition, this sentence was altered to read: "...
was not a fine and profound philosophy of China."] Every-
body in society acts according to the laws of nature, but very
few understand these laws. Therefore, Confucius said: "The
people may be made to follow a course of action, but they
must not be expected to understand." Those who understand,
of course, act according to the laws of nature, but those who
do not understand also follow the laws of nature in their
actions. Therefore, Mencius said: "There are many people
that act according to the Way [truth] without noticing it,
repeat their action without examining it, and follow the Way
all their lives without knowing it." The "Doctrine of the
Mean" said: "The Way of the superior man is extensive yet
subtle; the unintelligent man and woman can share in the
knowledge of it, but in its utmost reaches there is that which
even the sage does not know. The common man and woman
can carry it into practice; but in its utmost reaches, there is
that of which even the sage is incapable." It is sufficient to
note that it is easy to act in accordance with the laws followed
by all things in the universe, but diffici3FtoTjn3&stand these
laws.

The knowledge of the ancients came from generations of
experience and lifelong endeavor. Thus I often say: "TThere
can be no knowledge without action." Only the knowledge
gained fromjen^^ true

knowledge Js w k easy to act. Confucius taught the people the

1 88 CHINA'S DESTINY

Six Arts, and expected his disciples to acquire true knowledge
by practicing those Six Arts. Cleanliness, correct behavior,
archery, chariot riding, writing, and arithmetic all may
enable the student to acquire true knowledge by progressing
from learning to higher comprehension. Students in later
generations looked upon true knowledge, gained by the an-
cients through generations of experience and lifelong en-
deavor, as an easy matter. They therefore assumed that it
was easy to know and difficult to act. The old saying: "To
know is not difficult, but to act is difficult" has as a conse-
quence been deeply implanted in men's minds, resulting in
the separation of knowledge and action, and the habit of
considering the easy task difficult, and the difficult task easy.
Wang Yang-ming's theory of the "oneness of knowledge and
action" was intended to correct the spread of this evil of the
separation of knowledge and action. But in a scientific age,
the philosophy of the identity of knowledge and action is not
sufficient as a guiding principle of man's life. According to
scientific methods, each man's work must follow the prin-
ciples of division of labor and specialization of duty. Though
those that ,,know ^ and B those, that act should wi o>ogerate ? _ there
should still be a division of labor. JTh^ Yat-

s^t^s

for man's life. 1

The source of knowledge lies in human nature and does not
have to be sought from outside. Speaking superficially, in
seeking knowledge we must accept the experience and teach-
ings of the Chinese people and study foreign science and

i There would seem to be an ex- pie of China were dulled into inactiv-
cessive amount of space devoted to ity by decadent court scholars and bu-
this simple concept of the importance reaucrats. That situation is a far cry
of action with or without full under- from today when the Chinese people
standing. One ca^only^ncludejhat are politically more awakened than
the author is going to"Su^meTejQgths ever before, and are only prevented
' from building up a genuinely modern

state by the oppressive dead weight of
an outmoded Kuomintang bureauc-

w -
choose to leadj&em. Moreover, Sun racy.

VaFsenwrote at a time when the peo-

PROBLEMS OF NATIONAL RECONSTRUCTION 1 89

techniques. But in substance, knowledge that is not "self-
acquired 53 cannot be considered as true knowledge. Only
"self-acquired 53 knowledge is true knowledge, and not only
Is it true knowledge, but also it is easy to practice. Why did
the heroes of the Revolution, at the end of the Ch'ing dynasty
and the beginning of the Republic, go through fire and boiling
water, and regard death as an eternal jest? Since they deeply
believed that only revolution could save the state and the
people, they energetically practiced revolutionary work with
no thought of life or death, honor or disgrace. It was only
because their "knowledge 53 was based on their nature [instinct
or character], and their "action' 3 emerged from true knowl-
edge, that they were able to accomplish the great task of
overthrowing more than three thousand years of monarchy
and more than two hundred and sixty years of Manchu ab-
solutism. After the 191 1 Revolution, why could not the
comrades and theeoIe

ments of our martj/rs^ .^d^accegt" the guidance of Sun Yat-sen?
Because their theories and contentions were merely picked
up here and there, copied from what others had said, and
were not "self-acquired. 35 Their "knowledge 53 did not come
from complete sincerity, and their "actions 55 did not come
from great courage. Therefore, after the first year of the Re-
public, society and government were in a state of conflict and
confusion for more than ten years. The actions of the war-
lords, who mismanaged the state and oppressed the people,
together with those of the counter-revolutionary cliques, be-
came unbridled and ruthless.

Why were the people still unable to recognize the correct
course to be followed after it had been definitely established
by past events? The reason was that, from the theoretical
point of view, they were neither able to "seek the truth
through actual practice 35 in searching for genuine knowledge,
nor to rid themselves of prejudices and admit the truth already
proven by events. From the point of view of action, they were
unable to free themselves from the habit of pretending to be

1 90 CHINA'S DESTINY

right while actually being wrong, nor could they follow the
guidance of those with real knowledge, and act with energy
and decisiveness. In general, theoretical incorrectness was
duetto the inability to know thoroughly, while the lack of
effectiveness irTacSon "'was due to the inability to ,act vigor-
ously. Only with the utmost sincerity can one be free from
falsity and achieve true knowledge; only with the utmost
sincerity can one ceaselessly devote oneself to energetic action.
Only with true knowledge and energetic action can one march
straight forward without hesitation. The "Doctrine of the
Mean' 5 said: "Without sincerity there is nothing." If the
psychology of the people and the habits of society do not
return to purity, reality, and sincerity, the work of national
reconstruction and rehabilitation cannot be successful. There-
fore, after the Revolution of 1911, during the period of
greatest difficulty and depravity, Sun Yat-sen instructed our
comrades and taught the people that the theory, "to act is
easy but to know is difficult, 33 is the permanent, basic philos-
ophy for state building and rehabilitation through nationalist
revolution. Hereafter, the success or failure of national re-
construction hinges upon whether or not our citizens can
comprehend this philosophy. Thejtit^

of 1 9 1 1 ,

understand ^ Yat^ .easy/ ' and

Then the great task of the state,

which is the integration of culture, national defense, and
economy through the completion of the five phases of recon-
struction, will certainly be accomplished according to sched-
ule.

2. The Problem of Reforming Social and Academic Traditions

Previously, the work of national reconstruction could not,
under the restrictions of the unequal treaties, be developed
freely. But now that the unequal treaties have been abolished
and independence and freedom achieved, any failure in the

PROBLEMS OF NATIONAL RECONSTRUCTION

work of national reconstruction will be the responsibility of
the citizens of the entire country. [This paragraph was omitted
in the revised edition.]

Order or chaos in a state, and the rise or fall of a nation
generally depend upon changes in social customs. The in-
fluence of the unequal treaties on our social customs had its
root in the concessions and was manifested in various kinds
of evil and decadent habits. Now that the unequal treaties
have been abrogated, and the concessions are no longer in
existence, in whose hands will the responsibility for changing
social customs lie? If the present social customs are not
changed, and if there is not a spirit of earnest endeavor, then
the work of national reconstruction will be difficult to com-
plete. Changes in social customs are usually dependent upon
the efforts of a few great statesmen and educators. This has
been so in history. But the emergence of these few leaders is
certainly not attributable to a miracle or to fate. If, at the
turning point between order and chaos in the state, and the
rise or fall of the nation, there are a few people that are con-
vinced that the rise or decline of the world is the responsibility
of every individual; that take the attitude, "to worry before
the world worries, and to enjoy after the world enjoys, 55
together with the concept that "the world belongs to all";
that believe that the salvation of the state and the people is
their responsibility they will be the focal point of changes
in social customs.

Mencius said: "Every man can be a Yao or a Shun [a
sage]. 55 Again he said: "Those that wait for Wen Wang
[King of the Chou dynasty] to rise again are ordinary persons;
heroes will rise up without waiting for a Wen Wang.' 5 These
statements show that onceji^^

, if we take it as our own re-

^ in

accordance with our ownjabHi^^

Sun Yat-sen said: "Those with the
and ability should do their best to render

CHINA'S DESTINY

service to millions; those with lesser intelligence and ability
should do their best to render service to one person. 3 * Regard-
less of the extent -of intelligence or ability, if only there is
devotion to the salvation of the people and the state, accom-
panied by vigorous endeavor, then its application to a single
village will change the social customs of that village; its ap-
plication to a county will change the customs of the county;
and if extended to the state as a whole, the result will be the
same. Those few persons need only to take the lead in vigorous
action and the mass of the people of a village, county, or the
entire country will follow their lead as unconsciously and as
naturally as grass bends before the wind. Social customs will
thus be successfully reorganized.

At every period when the rise or fall, the survival or de-
struction of the nation has hung in the balance, there have
always been a few great statesmen and educators that rose
to take the responsibility of reforming social customs. Toward
the end of the Eastern Han dynasty, powerful officials and
large landlords annexed land, breaking up poor households
and depriving the weak of their means of livelihood. The
ideology of the time tended toward Taoism and Buddhism,
and the literature toward frivolity. With the Rebellion of the
Yellow Turban, the Central Plains were devastated, the
warlords set up rival governments, and only the region of
Shu [Szechwan] on the border of the country was stabilized.
Because of the extravagant customs and unruliness of pow'erful
warlords, the situation was even worse than in the period of
the Eastern Han.

Chu-ko Liang, premier during two reigns for a period of
twelve years, adopted a military policy of defense through
attacks [upon the enemy], and an administrative policy that
combined tolerance with severity. He stimulated the people's
morale through expeditions against the usurper [the Wei
Empire] to wipe out the humiliation [of the Han dynasty],
and corrected the customs of frivolity and lack of discipline
by demanding that the officials act in accordance with their

PROBLEMS OF NATIONAL RECONSTRUCTION 193

titles. He was therefore able, from the regions of Pa and Shu 3
which constituted only a corner of China, to resist the Wei
Empire of Ts'ao Ts'ao which was then in full control of the
Central Plains. [Confucian] scholars of later generations ridi-
culed him for promoting government by law. It was ignored,
however, that Chu-ko Liang's personality was one of sim-
plicity, tranquillity, great altruism, and utmost sincerity, and
that his character was far superior to that of these scholars.
Division and chaotic rivalry prevailed for more than two
hundred years during the latter period of the T'ang and the
Five dynasties. Though a unified regime was achieved by the
Sung dynasty, through taking over the military power of the
feudatory garrison districts, the ideology tended toward Bud-
dhism, the literature was restricted to the style of parallel
construction, the literary examinations were confined to com-
mentaries on the Confucian classics, the administrative func-
tions were controlled by clerks [palace underlings], the econ-
omy was characterized by extension of landed estates through
expropriation, and military power was concentrated in the
capital, while the frontiers were indifferently garrisoned, re-
sulting in foreign encroachments and frequent internal revolts.
Fan Chung-yen first wrote the "Four Essays" to correct
decadent thinking, and followed these with a memorial [to
the Emperor] on "Ten Affairs," proposing the establishment
of schools to train economic, administrative, and fiscal person-
nel, and the reform of the civil service examinations in order
to select economists and administrators. In literature at that
time, there were men of the type of Ou-yang Hsiu and Su
Shih; in classical studies, there were men of the type of Hu
Yuan and Sun Fu men of ability came forward in great
numbers, culminating in the establishment of new social
customs. The school of reason of Chang Tsai, Ch'eng I-ch'uan,
and Ch'eng Ming-tao, and the new administrative program
of Wang Ching-kung arose and flourished in succession.
Toward the end of the Ming dynasty, the court and the gov-
ernment were under the control of eunuchs, and society

194 CHINA'S DESTINY

became more and more frivolous. The school of Chu Hsi be-
came too eclectic, while Wang Shou-jen's [Wang Yang-ming]
school gradually tended toward mysticism and nihilism-
Chang Chu-cheng, premier for fourteen years, advocated
""practical learning for practical use/ 3 reformed official ad-
ministration by demanding "practice in accordance with
titles/ 5 and remedied the people's customs by insisting on a
<c return to fundamentals. 55 The strength of his conviction, the
earnestness of his devotion, and the courage of his action,
together with his indifference to personal success or failure^
and disregard for temporary criticism or praise, surpassed the
qualities of Chu-ko Liang and Fan Chung-yen.

During the reigns of Tao Kuang and Hsien Feng in the
Ch'ing dynasty, TsengJ&uoJan, Hu Lin-I, Tsao Tsung-
t'ang. Li Hung-chang. and their like also regarded the

^ ,-, tmtOJ^^HlKunnmvrfmaifflr-jMt* r , Vj?i, i-, ,i *<""<"'< --- >>n ,. , r.,^ c 14lfc .,,,.,, ,,,

reform of socia^^aa^oms^as their w peranal-, 1 xesp,Qnsibility*
Tseng Kuo-fan advocated strict enforcement of the law, and
In selecting personnel, he preferred men of righteous indigna-
tion [literally "hot-blooded 55 ] and talented comprehension.
In regard to scholarship and thought, he adopted the teach-
ings of both the Sung and Han periods and restored them to
the basis of utmost sincerity. As for his personal conduct and
public duties, he based them on the spirit of "moral caution
in solitude, respectfulness as the leading [quality], benev-
olence to be sought after, and diligence to be practiced."
Thus the success jojJi^ not

accidental. 2

2. The "success of the Hunan and \ seizure of large landholdings for divi-
Honan armies" refers to the sup- sion among the farmer-cultivators,
ipression of the Tai-p'ing Rebellion i The chief Chinese leaders against the
(1850-63), a great peasant rebellion T'ai-p'ings were Tseng Kuo-fan,
'stimulated by the intolerable eco- representative of the landed interests,
.Domic conditions o the farmers and ' and Li Hung-chang, leader of the new
precipitated by imperialist penetra- j comprador class. They succeeded in
tion. The T'ai-p'ings swept north- j preserving the Manchu dynasty only
ward from Kiangsu and established | because of Western military and naval
their power in the Yangtze Valley for| aid, their most effective troops being
a period of eleven years. The land! mercenaries trained and led by such
policy of the T'ad-p'ings involved the ' men as Frederick Townsend Ward

PROBLEMS OF NATIONAL RECONSTRUCTION 195

The transformation of social customs by thinkers in Chinese
history has had very great effects on the rise or decline of our
inherent culture and the spirit of the nation. During the early
period of the Warring States, the ideas of individualism and
utilitarianism [profit-seeking] prevailed; "the teachings of
Yang Chu and Mo Ti filled the world" and "the world
rallied either to Mo or to Yang. 35 Mencius arose and dis-
tinguished propriety from utility, and Kingly Ways [con-
version by virtue] from domination by force, according to the
teachings of Confucius. He clarified the theories of "compre-
hension of words" and "nourishing the vital spirit/' and he
explained and developed man's natural sympathies, sense of
shame, deference to others, and distinction between right and
wrong, as the origins of benevolence, propriety, courtesy, and
wisdom, to stress the difference between man and beast. He
denounced Yang and Mo to correct the people's thinking.
And he thereby established the foundation of China's three
thousand years of orthodox ideology.

Subsequent to the declining years of the Eastern Han
dynasty, the teachings of Buddha and Lao-tzu flourished,
and those of the Confucian scholars were in eclipse. Wang
Ch'ung lectured in the vicinity of the Yellow and Fen rivers,
condemning the schools of Buddhism and Taoism, and dif-
ferentiating strictly between the Hsia [Chinese] and the Yi
[barbarian, alien] teachings, so that the grandeur of the
political system and the flourishing state of studies at the
beginning of the T'ang dynasty were also the result of his
influence. In the middle of the T'ang dynasty, Han Yu re-
formed literary style, denounced Buddhism and Taoism,
condemned the partition of the country by warlords, and

and the British General Charles ^to Chinese problems that the social
George "Chinese" Gordon. All stu- *and economic significance of the
dents of Chinese history regard the tT'ai-p'ing movement should be dis-
T'ai-p'ing Rebellion as a genuine garaged, and that Tseng Kuo-fan
popular movement and as the fore- Should be praised as a great "Con-
runner of the Nationalist Revolution- fucian" statesman, although he is
ary movement led by Sun Yat-sen. It Regarded by liberal Chinese as the
is indicative of the author's approach larch betraver of the Chinese people.

196 CHINA'S DESTINY

advocated centralized power, thereby paving the way for the
Confucian school of Tao [the Way] of the Northern Sung
dynasty. With the spread of the [Confucian] Tao School,
scholars became used to nihilistic concepts of nature and
reason, and were shackled by eclectic terminology, so that
Wang Yang-ming championed his theories of the oneness of
knowledge and action, and the expansion of knowledge by
exhausting reason, which gained wide acceptance. By the end
of the Ming dynasty, and the beginning of the Ch'ing, the
great [Confucian] scholars such as Ku Ting-lin, Huang Li-
chou, Wang Ch'uan-shan, Li Ehr-chu, Yen Hsi-chai, and
Fu Ch'ing-chu became prominent and all of them condemned
mystic nihilism, and advocated practical application, urging
the study of economics and administration to save the nation,
and the study of human nature and endowment as a guide
to thinking. From this time on, nationalist and democratic
ideas spread among the people, and after more than two
hundred years came the Revolution of 191 1, which overthrew
the despotic government of the Manchus and established the
Republican People's State.

These statesmen and thinkers all made their enduring con-
tribution to the preservation and cultivation of the nationalist
spirit of China, and the strengthening of her inherent virtues.
They are our models for the reconstruction of the state and
the salvation of the world. It is this group that Sun Yat-sen
described as "using their few score years of life to establish
the immortal foundation of our state." Those of talent and
intelligence that wish to emulate these, statesmen and thinkers
should start with "exhausting reason" and "comprehension
of words." What we revolutionists should constantly bear in
mind is that regardless of the size of the task we are perform-
ing, we should examine it in accordance with the doctrine of
"exhausting reason." We should also, with respect to the
theories and contentions that are brought to our attention,
examine them carefully in accordance with the doctrine of
"comprehension of words." "Exhausting reason" means that

PROBLEMS OF NATIONAL RECONSTRUCTION 197

we should have a clear grasp of realities, analyze the contents
of an event, and firmly grasp the focal point of a problem
without hesitation or error. "Comprehension of words" means
that we should examine the motive, understand the meaning,
study the method, and seek factual verification of the results
of every theory or contention, without ambiguity or blind
acceptance. By so doing, no matter how confused the various
arguments, or how ingenious the phraseology, we will be
able clearly to determine their truthfulness and merits or
lack of them, and whether they will yield benefits or harm,
success or failure: We should bear in mind particularly that
where theories or proposals are harmful to the state and the
nation, the greater the harm, the more ingenious the argu-
ments put forward in support of these theories,

Confucius, seven days after becoming chief justice of Lu,
put Shao-cheng Mou to death, and explained: "There are
five kinds of evil people in the world and thieves and robbers
are not among them. The first are those whose hearts are
rebellious and dangerous. The second are those whose con-
duct is persistently depraved. The third are those whose
words are false but unconvincing. The fourth are those whose
learning is extensive in undesirable fields. And the fifth are
those who are acquiescent and helpful toward misbehavior.
A person with any one of these five faults should not escape
execution by the superior man, and Shao-cheng Mou* pos-
sesses them all; his dwelling serves as a gathering place for
his disciples, forming a party; his theories serve to beautify
unorthodoxy and please the multitude; his stubborn argu-
ments are sufficient to upset the right and constitute a new
and independent theory he is thus a villain among men and
must be eliminated. 333

From this it may be observed that incorrect, superficial and
depraved behavior, and unorthodox contentions, have to be

3. This is an interesting illustration perior man" of all opposition views
of the Confucian political theory that is not only expedient but virtuous,
the definitive suppression by the "su-

198 CHINA'S DESTINY

concealed with ingenious theories and persuasive phraseology
which, however, can never hide their absurdities and evil
consequences. Even if every attempt is made to hide them,
we can discover their faults and mistakes in the hidden points
of argument. Mencius said: "Concealment is seen in sophistry,
demoralization is seen in obscurity, deviation is seen in un-
orthodoxy, and lack of reason is seen in evasiveness. When
these arise in the mind they harm the policy, and when they
ensue from the policy they injure the deeds. 35 For example,
the theories of Nazi-Fascism and of the Internationalists are
eloquently phrased and apparently logical in every way.
Their words are very convincing. But if we track down the
motives that give rise to these doctrines, and examine the
actual instances of the destruction of nationalist thought, we
will immediately know that to advocate these doctrines in
China means "when these arise in the mind they harm the
policy, and when they ensue from the policy they injure the
deeds."

As to the motives of Nazi-Fascism and Internationalism,
Sun Yat-sen said: "Some nations in the world, after their im-
perialist conquest of other peoples, advocate internationalism,
aiming at the subjugation of the entire world, in order to
preserve their special position as masters of the world." As to
actual instances of the submergence of nationalism, Sun Yat-
sen said: "Whenever one nation conquers another, it naturally
does not want the conquered nation to have an ideology of
independence. For example, Korea was conquered by Japan;
Japan is now seeking to change the ideology of the Koreans,
so in the textbooks of Korean schools any sentence relative to
nationalist ideology is being deleted. Thirty years hence
Korean children will not know that there is a Korea or that
they are Koreans."

Therefore, in his third lecture on Nationalism, Sun Yat-sen
compared those that discard the idea of nationalism and talk
about internationalism, to a coolie, who, after winning a
lottery, throws away his bamboo pole in which the winning

PROBLEMS OF NATIONAL RECONSTRUCTION 199

ticket was concealed. From this it may be noted that if we in
China talk about Nazi-Fascism or Internationalism instead
of about Nationalism, we will be in danger of the destruction
of the state and the subjugation of the nation. This single il-
lustration reveals to us the importance of "exhausting reason"
and "comprehension of words." What a pity that during the
last twenty years, innumerable,, intelligent and talented Chi-
nese have been so beguiled by such ingenious theories that
they have misused their intelligence and talents and wasted
their lives. [In the revised edition, the phrase "by such in-
genious theories" was changed to "by such theories, which
are contrary to the conditions in the country and opposed to
the times."] This has been the greatest loss to the state and the
chief misfortune of the Revolution. Let bygones be bygones.
It is hoped that all citizens, and particularly the young men
that have not yet decided on their careers, will hereafter
recognize the importance of "exhausting reason" and "com-
prehension of words." Success or failure in the careers of youth
depend upon this, and therefore they should note this point
in relation to their studies. Only by so doing can they clearly
chart their course, reach sound conclusions, and avoid the
wrong road, so that there will be no cause for vain regrets.

Since the beginning of the Ch'ing dynasty there has been
more than two hundred years' accumulation of depraved
customs and bad habits. In addition, under consular juris-
diction in the concessions of the big cities, there has accumu-
lated one hundred years of extravagant and immoral habits
of life. Under the influence of drugs and disease, the poor were
induced to follow dangerous paths and the rich to become
bankrupt. Wherever these effects prevailed, the civil officials
became greedy for money and the military officials became
cowardly. The people regarded the Government only as a
den of criminals, and the officials comported themselves as
puppets on a stage, making a pretense with documents and
courting favor for their advancement. From the end of the
Ch'ing dynasty to the beginning of the Republic, such habits

2oo CHINA'S DESTINY

grew worse. Up to the present, these patterns have not been
basically changed, nor have such officials fully repented. This
is unquestionably a great political humiliation for us. To wipe
out such humiliation., gain the confidence of the people, and
restore the prestige of the Government, the officials in the
administration and the commanders in the army should ask
themselves whether they are adhering to the testament of Sun
Yat-sen, earnestly practicing the instructions to purge the
heart, and conducting themselves with a clear conscience.
Can they swear that they will not be superficial and seek
shallow notoriety, but will be honest and sincere? If they can
trust themselves after introspection, they need have no concern
for other people's praise or criticism, or for temporary honor
or disgrace, which would lead them to concentrate on ap-
pearances while neglecting practical work. Otherwise, they
must take pains to repent, and to avoid the pitfalls of failure
that trapped the warlords and politicians in the past.

We should also realize that although the more we have
fought the stronger we have become, and although the un-
equal treaties have been relinquished, the enemy is still in our
territory and it will require our utmost endeavor and the
greatest sacrifice to regain our lost territory, liberate our
fellow countrymen, and secure genuine freedom for the nation
and independence for the state. Since the outbreak of the
European and Pacific wars, the international military, polit-
ical, and cultural situation has been undergoing violent
changes. China's future, whether bright or dark, will be in-
fluenced by these international circumstances. At the present
time, the strength of the Allies has been sufficient to accom-
plish the change from the defensive to the offensive, and signs
of the aggressors' ultimate defeat are evident. The glory of
China's victory in this War of Resistance is within sight, and
the winning of a position of independence and freedom will
increase China's responsibility to the world. It can be pre-
dicted that the conclusion of the war will not be deferred

PROBLEMS OF NATIONAL RECONSTRUCTION SOI

beyond two years, and that this year is the decisive, critical
stage of the war. 4

Whether China's position will be that of master or slave,
glory or humiliation, survival or extinction, will not be de-
termined, as at the conclusion of the First World War, by a
Washington Conference. Frankly speaking, China's destiny
of mdependence orjlavery, glory or humiliatio^"s^ival or
extinction, will not '

conference at jhe^dosje.rfjthe war, but will bejdecided in the
jSnal^ critical J>tage of the war, which is today. VVhether the
whole state, from top" to bottom, can be reftorn through its
own endeavor depends particularly on whether or not social
customs and tKe people's way of life ! can be cleansed, of the
old and changed 1 TcHEe 'new,* so that the people, may be fully
qualified as citizensjof the modern age. We must make sure
oFvicto? y in the War of Resistance and lay the foundation for
national reconstruction before we can determine our destiny
as well as carry out the Three People's Principles. If we are
hesitant, servile, and indolent, as we were at the close of the
First World War, then our lost rights may not be recovered,
and the rights already recovered may not be retained. In sum-
mary, China]^^ by the ability or in-

a bjy^

and to fulfilljhe^mission of the War of Resistance^and national
reconstruction. To make China strong and independent, it is
necessary that all citizens, from the highest to the lowest, must
be united in one purpose; that we rouse ourselves for thorough
reform, eliminate frivolity by insisting upon honesty, and dis-
courage indolence by upholding active endeavor. Our think-
ing must be realistic, our living disciplined; our duties must be
performed with a sense of responsibility, and our actions must
be orderly; and we must seek the truth through practical

4. The prediction that the war not changed in the revised edition,
would end in two years, and that the published about a year after the
current year was the decisive one, was original.

2O2 CHINA'S DESTINY

work, and progressively strive for improvement. Only in this
way can the foundations of a modernized state be established,
and only in this way can China stand on a footing of equality
in the Family of Nations and share the responsibility for per-
manent world peace and the liberation of mankind.

The change in political customs depends especially upon a
chjmge^ is tKe primary

movuagk JorceT'lt" shoufd be noted tliat "academic teaching
directly affects political change. It is not only ideological
reform that influences social and political customs; important
results also ensue from cultural reform. There is no lack of
historical evidence for the ancient saying: "Change in culture
affects politics/ 5 During the transition from the Han to the
Wei dynasty, painstaking work was despised, while sophistry
flourished and academic traditions deteriorated. At the end
of the T'ang dynasty and the beginning of the Sung [in the
revised edition, this was changed to "in the middle of the
North Sung dynasty"], literary standards reverted to sim-
plicity and reality, and the tradition of vigorous effort and
practical action was revived. During the Ming and Ch'ing
dynasties, thinking was shackled by the "eight-legged" [stereo-
typed] essays, and officials were uninformed in administrative
matters, with the result that the actual authority of the Gov-
ernment was exercised by clerks [palace underlings]. In gen-
eral^lrij^^ the destiny of a state

is linked to academic teaching. ^^>

"njnqul^^^^ result

of the present war will be its effect on culture. Ther3bre, it
rc_

success or failure, survival or extinction, of three hundred
and fifty years of Nationalism, Democracy, and Socialism
in Europe and America will be decided by this war. The rise
or fall of China's five-thousand-year-old culture, and her
ancient virtues, will also be subjected to the war's acid test*
If this war is not lost to the devilish aggressors, the civilization
of mankind will emerge greatly refined, and China's culture

PROBLEMS OF NATIONAL RECONSTRUCTION 203

will be further brilliantly developed. It is earnestly hoped
that our academic circles will thoroughly understand that
today is the most critical moment for the continuation of
China's ancient culture and its development in the future,
as well as for its very survival.

Following the reformation at the end of the Ch'ing dynasty,*,
there came in succession the 1911 Revolution, the May 4th
Movement, and the Nationalist Revolution. During these
periods, academic traditions underwent changes in unison
with the changes in academic teachings, and all the ideologies
of the nations of the world, such as Liberalism, Nationalism,
Communism, and Anarchism, were subject to experimenta-
tion. If examined closely, it may be observed that although
quite a large degree of progressiveness was diffused in the
social structure, a tradition of genuineness, sincerity, stability,
and honesty failed to materialize. Scholars did not seek truth
through practical effort. Some concentrated on thinking with-
out learning, closing their eyes to facts, and engaging in hollow
discourse and setting up rival schools of thought. Others
learned without thinking, uncritically selecting a theory here
and there. Those that admired Westernization abandoned
China's own culture in favor of allegiance to foreign theories.
Those that upheld the national culture reverted to an isola-
tionist chauvinism. The scholars were careless and irrespon-
sible in their lectures, uncritically echoing the popular trend
in order to court favor with the people. Their concept of
"liberty" was based on their own selfish desires, while their
theory of "democracy" was based on their desire to advance
their own material interests. Observance of the law was re-
garded as humiliating, and resistance to orders as clever.
They took advantage of the ignorance of youth and called
themselves "Tutors of Youth." They wantonly spread super-
ficial propaganda and called themselves "Academic Torch
Bearers." The ultimate consequences were turmoil in the
state and the decline of the nation to the point of extinction^
While such trends existed, it was difficult to find many persons

204 CHINA'S DESTINY

the rise and fall of the state

&^^ being the

condition of educ^ipnjLnd academic teaching, tEe attempt

tc^dJS

ajtree to look for fish.

In this period of the Nationalist Revolution, what should
educators, professors, and college students do to fulfill their
revolutionary obligations? In the section dealing with "Psy-
chological Reconstruction," I have set forth the outlines,
urging the scholars of our country to make their studies fit
the needs of daily life; to recognize that culture is the founda-
tion of national reconstruction; to appreciate the truth of
Sun Yat-sen's philosophy that "it is easy to act, 5 ' and carry
out the revolutionary doctrine of active effort; to give equal
emphasis to moral and physical training; to co-ordinate
civilian professions and military science; to exercise both
brain and brawn; and to integrate knowledge and practice.
Only thus can social and academic traditions be fundamen-
tally changed, and the evils of demoralization, pretense, ex-
travagance, and boastfulness be completely eliminated. This
is necessary before the inherent virtues, wisdom, and ability
of our nation, and the original status of the state can be gen-
uinely restored, and the foundations for national reconstruc-
tion be consolidated and strengthened.

Sun Yat-sen stated: "The construction of a house cannot
be accomplished with one stroke. This is true in building a
state, which requires a spirit of extreme perseverance and
supreme patience." Such perseverance and patience will not
be developed without an academic tradition of practical
action and earnest endeavor, and social habits of simplicity,
tolerance, and generosity. The officials are the craftsmen in
the building of a state, and teachers ought to supply talented
personnel in abundance for the same task. These two kinds
of people have a more direct and heavier responsibility in the
changing of academic, social, and political customs than or-
dinary citizens. Only if each official and each teacher develops

PROBLEMS OF NATIONAL RECONSTRUCTION 205

his sense of duty and strengthens his sense of responsibility,
taking upon himself the role of a devotee or scholar in the
reform of customs, will the spirit of perseverance and patience
for state building ensue, and the great task succeed. Sun
Yat-sen said: "By success is not meant that of one man or one
party, but that the Republic of China should progress from
dangerous instability to safety, and then to glorious develop-
ment." In order to enable China to pass from instability to
safety, it is necessary that education throughout the country
focus on the concept of statehood, and place the ideology of
nationalism before everything else. The teachers of the entire
country should first strive for this, before they can urge the
people in general to change the political traditions in order
to lay a primary foundation capable of developing and per-
petuating the task of national reconstruction.

3. The Problem of Fostering the Concepts of Freedom and
Government by Law

In changing social customs,jwe must fundamentolly change
the citizen's cpnc^FoITaw and freedom, jt^^^b^jaature of
mag Jo^gather -in groups. When an individual is separated
from the group he cannot survive. Since the beginning of
mankind the individual has been born into the group and
has grown up in the group, and there has never been a time
that he could leave his group and become completely isolated.
The life of an individual thus resides in the life of a group.
Orfly^when a group develops can an indiviI3u3 ll T[e^op.

QSfiJki^

governedjb^jniles, so that the lifiLSO^
served and dexdOEC*^

and iaw^jm-thex^ther. The organization of men proceeds from
the family to the clan, and from the clan to the nation. The
more individuals there are, the more closely knit are the ethics
and the laws. The safeguard for a belief in ethics is provided

2o6 CHINA'S DESTINY

by the public opinion in a given society. The sanctions of the
law are enforced by the government, which administers public
affairs.

Chinese^golitical philosophyjanalyzes the relation J)etween

ethics

nese political philosophy jadypcates_ the joint
^^

, though distinguishing between them in their
o7(T^ ^application. Chia I said: "Etiquette [ethics] prohibits
a misdeed before it happens; law prosecutes after the occur-
rence." Tung Chung-shu said: "Virtue first, punishment after-
ward." These statements mean that ethics comes before the
law, but do not imply that there are only ethics to the ex-
clusion of the law. Sun Yat-sen's Three People's Principles
discussed this subject even more thoroughly, j^^j^^i^ fj' e
noted that the Three People's Principles stem from China's
hereditary [orthodox] moral concepts. Briefly, "altruism" is
the basic .principle of the Revolution, "benevolence and love"
are the foundation of world salvation and, in the final analysis,
there is nothing more altruistic or beneficial for world salva-
tion than the principle that "the world belongs to all," which
is the basic rule for social reform and the highest ideal of
revolutionary action in the Three People's Principles. Prac-
ticaJN^^ however,

mu^Beaccording to law. During the stage of military gov-

; .during

tutelage we should rule according to the
provisional constitution; ancl during the period of constitu-
tion^

law. From this it may be seen that the^^gQv^^m^^of the
ThreeJI^ out

bjjaw.

Chinese political philosophy also defines minutely and
clearly the relation between rule by man and rule by law.
Mencius said that a state must have "legal regulations" and
"jurists and assistants," and also that "law cannot be enforced
by itself." This means that a state without law is unmanage-

PROBLEMS OF NATIONAL RECONSTRUCTION

able, but law enforcement still depends upon man. Wang
An-shih's statement that it is law that defines institutions and
functions, and it is man that promotes and carries them out,
and Chang Chu-cheng 3 s statement, "enforcement of the law
rests on man," have the same meaning. The jgurg_ose of -our
Nationalist Revolution jgjto build jQlmaj^p^a^statje ruled by
law, but its fQundaiiPA^ffiust rest on the _peogle^s jnental
ability. {public opinion]. Sun Yat-sen said: "People generally
say that China's four hundred millions are really equivalent
to a pan of loose sand. What should be done to gather these
four hundred million loose grains of sand together to form
them into an organic whole? A state ruled by law. We must
first take a sincere vow to do this. Only then can we expect to
discipline the individual, harmonize the family, govern the
state, and stabilize the world." Again he said: "That a state
is established is due to nothing else but the joint mental ability
of the citizen. The power to govern a state, and the persons
that exercise this governing power, are constantly subject to
the collective mental force [public opinion] of the citizens,
which is the master that directs them." This means that the
Nationalist: Rej^^tion represents the joining together of the
citizens 3 mental fgrc^to^stablish a tt stete < ggyjarg^jby, law, and
tKelipplication ofjhatj^^ fgrjthg, vigorous

eniorcement of the law.

to

j^^ that

justicec^

acco^wth B ^AL-Chu-ko Liang said: "Gratitude follows law
enforcement." He also said: "My mind is like a scale it
cannot be lighter or heavier in weighing different persons."
Chinese political philosophy also maintains that law must be
based^on emotion and reason before it is suitable for practical
use. Lu Hsin-wu said: "Law is enacted on the basis of reason
and human emotions." He also said: "Law is the form within
which reasoning is applied." Our Three People's Principles
synchronize emotion, reason, and law, and give equal weight

so8 CHINA'S DESTINY

to each. In my essay. The System and Practical Program of the
Three Peopled Principles, I said: "The reason we human beings
differ from and are superior to other animals, and are able
continuously to seek progress and development, is that we
have emotions that can be aroused, and rational natures that
can be disciplined by law each being indispensable for
human survival and evolution. In our daily existence, we
regard things as satisfactory only when they are in accord
with all three emotion, reason, and law. Let us examine the
Three People's Principles in turn. From the standpoint of the
principle of Nationalism: nationalist emotion is the most
meritorious of all human emotions, because a nation is formed
by natural forces, and the consolidation of a nation must
depend upon the instinctive emotions of man. From the
standpoint of the principle of Democracy, the best legal form
of human organization is government of the whole people,
which is democratic government, and this depends entirely
on a government by law and discipline in order to designate
the duties and privileges of each individual. From the stand-
point of the principle of the People's Livelihood, the most
reasonable form of organization is one in which all the people
are economically equal, without oppression or exploitation;
in which the interests of the majority are satisfied; in which
there is an absence of poverty because of equal distribution,
an absence of strife because of harmony, and an absence of
instability because of satisfaction." This cannot be achieved
by emotion alone, nor by law alone, but must be based on
reason, which differentiates right from wrong, benefit from
harm. Therefore I say, Nationalj^^
Democracy on law^ and the People's Livelihood on reason.

,. tin-- * . """-"'*""""' "** * ' '*"*!- wTwvmnnwo. ,*wmwrais*w^

We secure national independence through increased national
emotion; we lay the foundation of democracy through the
firm establishment of government by law, and we solve the
problems of the people's livelihood through the adjustment
of the surpluses and deficiencies in the public and private
economy according to fair and uniform lines of reason. In

PROBLEMS OF NATIONAL RECONSTRUCTION

this way, emotion, reason, and law are each assigned their
proper place. This is how and why the Three People's Prin-
ciples are comparatively more complete and enduring, and
more far-reaching yet easier to carry out, than other doctrines.

It may thus be noted that the Three People's Principles
emphasize emotion, reason, and law equally, giving each its
proper place. Thus it is clearly an error for some scholars to
assume that Chinese political philosophy stresses government
by ethics or by men, and is opposed to government by law.
Government by law occupies an important position, plays
an important part, and possesses important functions in the
Three People's Principles.

After the conclusion of the unequal treaties, China's aca-
demic and intellectual circles lost their self-confidence and
blindly echoed foreign theories. As a result, some quoted
European theories of the eighteenth and nineteenth centuries
to destroy our people's concept of government by law. [In the
revised edition, the phrase cc to destroy our people's concept
of government by law" is changed to "as the theoretical basis
of China's Revolution."] They came across Rousseau's doc-
trine of "the natural rights of man" and then maintained that
China's Revolution and the European Revolution of the
eighteenth and nineteenth centuries were part of the same
fight for "freedom." They did not realize that Rousseau's
theory did not fit the historical facts. Sun Yat-sen told us:
"By the logic of historicalj^Qiulion, the^n^ ^are not
born of^a^ureT^uF^eated by the trend and ci^umstances

is

no l?!a^ '

But although Rousseau's theory lacked historical basis, it
nevertheless flourished in the Europe of the eighteenth and
nineteenth centuries as the principal theory of Europeans in
the fight for "freedom." This was "because absolute monarchy
had developed to its fullest extent in Europe at that time.
The people had long been subject to ruthless absolutism and
were suffering deeply from the consequences of lack of free-

2io CHINA'S DESTINY

dona. Their only solution, therefore, was to fight for 'freedom*
in order to eliminate such sufferings, and upon hearing the
word 'freedom' they immediately welcomed it."

If we examine the government of China under successive
dynasties, it will be observed that it generally adopted a
magnanimous attitude toward the people, and that, aside
from paying the grain tribute, the people had almost no
contact with officials. According to Sun Yat-sen, "The Chi-
nese people had long had great 'freedom' and it was not
necessary for them to fight for it." Therefore, he said that the
objective of the Chinese Revolution was opposite to that of
the European Revolution. "Because ^the ^Eurogeans were in
such dire need of freedom, they had to fight for it by revolu-

C free3om ? 'China has had no or-
^ of loose

^ ^ e encroachment of
, we

must curtail 'individual freedom 3 and f ormj^ .solid ^organiza-
" into loose sadtoaaaket a solid

^^

Chinese nation must crystallize

into a solid, rocklike body of national defense, and needless
to say, no individual may enjoy the "freedom" of a loose grain
of sand. To be more explicit, to win the war we must establish
a nationalist body of defense, and the same solid organization
will be required to safeguard permanent international peace
and to secure the liberation of mankind in co-operation with
other free and independent nations of the world. Therefore,
in the relation between the individual and the state, whether
during or after the war, "individual freedom" of the type of
loose grains of sand cannot be tolerated.

From the point of view of the relations between individuals,
freedom and government by law cannot be separated. China
is a state made up of four hundred and fifty million citizens.
Our state demands that each of its four hundred and fifty
million citizens have "freedom." Therefore, the boundary of
the "freedom" of each individual must be drawn, and no in-

PROBLEMS OF NATIONAL RECONSTRUCTION 211

dividual must be permitted to encroach on the "freedom" of
others in the exercise of his own "freedom." Only such free-
dom can constitute genuine freedom. This concept of freedom
must be thoroughly instilled during the period of nationalist
reconstruction in order that each citizen can enjoy his right
to freedom. Thus freedom as such must be within the confines
of law, beyond which lies licentiousness. If everyone is per-
mitted to be licentious, then the strong will bully the weak,
and the majority will encroach upon the minority. Only when

,-

can each individual enjoyj;]^ bm^^ a

state in which^^each^ ^person, -1 ^jQys,,Jiis.,/ltoedQJ3llLj3i2^ be
called a state governed Jbj^ Jaw. Therefore, a state governed
by law will never permit a situation in which the citizens are
licentious, the strong bully the weak, or the majority en-
croaches on the minority. In this connection, it must be noted
that it will not be reasonable for any individual to ask for the
protection of the law if he breaks the law, or to criticize the
state for not upholding government by law if he does not ob-
serve the law himself. Such an unreasonable point of view
can only confuse the people's concept of government by law
and strengthen the people's tendency to disregard the law,
and if it is not completely discarded, the building of a state
governed by law cannot succeed.

The most licentious people in the world are the "gypsies."
We all know that the "freedom" of the gypsies amounts to
nothing but indulgence and wandering. Internally, they have
no concept of law and no sense of national consciousness, and
externally they cannot form into an organized body to protect
their own safety. Therefore, they have become the lowest and
most backward group in the world, scorned and forsaken by
others and mistreated wherever they go. We Chinese citizens
cannot adopt the free behavior of the gypsies on the one hand,
and on the other, talk grandly about modernization and the
establishment of government by law. We

the state is the source and foundation of ten thousand genera*

212 CHINA'S DESTINY

tions of descendants. The JiVar of^ Resistance is a sacred task,
and the recpjistr^di^ We

must never entertain any idea of temporizing with or ignoring
the law, nor undertake any childish action, but must accept
laws, decrees, and orders with a consecrated mind and solemn
purpose, and carry them out in a voluntary and active spirit.
Dare we put ourselves in the same category as the gypsies?

During the last one hundred yeara^ Jiie-jexisteaee 1 of the
cor^ssions^ndTthe foreign garrison areas, together with the
feudal^.rtitioning ofj^he country, were tKe cEief causes for
the development of a disdain for government by law, and a
negligence in its observance in China. Concessions and gar-
risoneH' areas" cbiilct' lioifBe reached by Chinese law, and the
people there, who were beyond the reach of the laws of their
own country, generally became licentious and violated the
laws and discipline of the state in words or action. After a
long period, they formed the negative habit of irresponsibility
and the positive habit of law-breaking. These habits spread
to the people as a whole, who not only failed to realize that
these habits were wrong, but actually considered them to be
right. The feudal partitioning of the country further destroyed
the idea of government by law and the custom of law ob-
servance. The warlords and politicians, who supported one
leader to overthrow another and shifted their allegiances
overnight, not only did not comprehend the meaning of gov-
ernment by law, but considered it an honor to break the law
and upset discipline. Under such conditions, how could the
idea of government of law be instilled? How could the habit
of observing the law be formed?

Today the unequal treaties have been abolished, the foreign
concessions and the garrisoned areas are no longer in exist-
ence, and the feudal partitioning of the country has been
gradually disappearing. Our citizens must awake and repent,
mutually encouraging each other to regard the observance of
law as a virtue and the shouldering of responsibility as an
honor. We must never permit individual interest to interfere

PROBLEMS OF NATIONAL RECONSTRUCTION 213

with the common interest of the state, nor allow individual
"freedom" to encroach upon the "freedom" of others. To
seek "freedom" we must first understand its intrinsic nature;
to uphold government by law we must first form the habit of
obedience to law. Our four hundred and fifty million citizens
must each be instilled with this idea of freedom and govern-
ment by law. Only then can China be established as a state
governed by law, and only then will It exist as a solidly or-
ganized body of national defense, capable of sharing the
responsibility for world peace and the liberation of mankind
along with other free and independent countries of the world.

CHAPTER SEVEN

THf ARTERY OF CHINA'S REVOLUTIONARY
RECONSTRUCTION AND THE CRITICAL
QUESTIONS DETERMINING HER DESTINY

FROM the foregoing analysis, it is clear that the juccess_ or
failure of nationajjreconstruction hinges ujpon the transforma-

t^^f^sssLs^! ^ s.ijp^His morale. ^This H a ^^ rmat * on

depends UEgnjiiase^ieapleJnjh^

.Jhoita^JWWIinfcjrf***"** 111 "*"^"^^^ * * *-JWMfc-mBt"w. x* +.

and the whole country Jhat have knowledge, will power, de-
ter^mniation, and a sense of responsibility. They must assume

carry out their mission

constantly and unquestioningly, so that the successful reform
of social customs may be achieved. It was pointed out in the
previous chapters that the youth of the entire country should
make it their ambition to undertake work that others dare
not undertake and to endure sufferings that others cannot
endure; to overcome difficulties and dangers, and become
pioneers in frontier and other isolated regions, in order to
serve the needs of the state and society and to enrich the life
of the state and the nation. If these things are done, the re-
forming of the state and society will be an easy task.

I want here to carry this discussion a step further. It should
be understood that the transformation of social customs and
public morale and the practical work of national reconstruc-
tion are the most important enterprises in the rehabilitation
of the nation, and require constant effort. If a single individual
struggles along in isolation, his achievements cannot be great
or enduring. Therefore, all adult citizens and ambitious young
men in every village, district, province, and the entire country
must be part of a common structure and a general organiza-

214

CHINA'S REVOLUTIONARY RECONSTRUCTION 215

tion for national reconstruction and individual effort. Only
"when ea<ijmdiyidual works ,. wtMn^s^pji a general organiza-
tion can we accomplish what Sun Yat-sen described as: "Use
caclTindividuars few , years of mortal life to establish the im-
inortal .foundation for jfoe countless ages of the state/'

If China's adult citizens cannot unite on a large scale, our
unity cannot long endure, and we shall experience the hu-
miliation and shame of being a "pan of loose sand" and be
laughed at for our "five minutes of boiling blood." We should
recognize that if we cannot unite together, it is because of
selfishness, and that in order to avoid selfishness, there is
nothing better than to become public spirited. When unity
cannot long endure, it is because of dishonesty, and to avoid
dishonesty nothing is better than being sincere. A single
thought directed toward the public good will enable us to
reach the stage of "all men are brothers and oneness with all
things." A single thought of sincerity will enable us to see
clearly through a project from beginning to end. And only
the Three People's Principles are based upon absolute public
good and developed from absolute sincerity. Thus the ideology
of the Kuomintang is all-embracing, and the activities of the
Kuomintang are "a choice of the best and a retention of the
original." These facts have already been demonstrated in my
discussion of the process of reorganization of the Kuomintang.

f ^eJundamOTgd ra reason for the_gstfej^^
today, their individu^

lives, is~ pjjbou^ its

proper mission- Because yput^
oftKeir teacj^ers^jil^ con-

nection bet\weni^ or

" of

and

Upon entering so-

immediately display their lack of ability to take
nip practical work, let alone the task of reforming society and
building the state. Therefore, young people should become

216 CHINA'S DESTINY

industrious and able to endure suffering, and should under-
take heavy and far-reaching responsibilities as leaders in the
reformation of society and the building of the nation., in con-
nection with which their thinking must be trained by science
and their activities controlled by strict discipline. Because of
this, after the beginning of the War of Resistance, I immedi-
ately organized the San Mm Chu I Youth Corps to serve the
urgent needs of the youth of the country, to open a new life
for the Kuomintang, and to serve as the source of a new
motivating force for the Chinese nation.

With regard to the relation between the people of the entire
country and the Kuomintang, Su^Yat-sen^earlj stated;

" Ev DL^ f

joining the Party, but also the 'dutylo "joir^jt. 33 The youth of

^"^^^^^^^^^^^^^n^l^t and similar duty to
join the San Min Chu I Youth Corps. We must recognize that
revolutionary reconstruction is a

,^
Kuomintang and the

Corps are the general directing agencies

for the carrying out of revolutionary reconstruction. Adult
citizens must join the Kuomintang and youthful citizens must
join the Youth Corps only then will the happiness of the
entire nation be safeguarded, the interest of the state pro-
tected, and permanent security for the nation and the state
be assured. Therefore, joining the Party and the Corps is both
a privilege and a duty. At the same time, the Kuomintang
and the San Min CkuIYouth Corps have the power to demand
and the duty to urge all ambitious and zealous adult citizens
and youths to join the Party and the Corps. The heritage left
us by our ancestors through hundreds and thousands of gener-
ations will be reformed and administered by the Party and the
Corps. The foundation upon which our descendants for count-
less years to come will depend must also be created and en-
riched by the Party and the Corps. Our Party and our Corps,
in order to fulfill their responsibility for preserving the past
and building for the future, therefore have the power to de-

CHINA'S REVOLUTIONARY RECONSTRUCTION 217

mand that all our citizens come forward and unitedly take up
the task, and also have the duty to permit them to come for-
ward and unitedly carry on the Revolution.

^ of the entire country already under-

^

stand ttemOTraoavm the nationaT^humiliation and

he^^ still dw^5aFrHevra <1 as ri fo the

direction tojbejyig^^ recontmct!o^aFjn the

establishment of private enterprises. We have today attained

^wj.i-1 -..'i- -xr-r'fvr ~'-~ f^^Axe*-tnvr*..^ * '''">>>-- *<*"*> * " J

the first step in the abolition of the unequal treaties, and the
accomplishment of the Three People's Principles and the
Nationalist Revolution is now an immediate prospect. I think
that, beginning today, patriots of all groups that have the will
to revolution ought to think deeply, subject themselves to a
thorough self-examination, and then shoulder to shoulder and
hand in hand, go forward with faith in the Three People's
Principles, join the Kuomintang, and become close and sin-
cere comrades. It should be recognized that the present is an
opportunity that occurs "only once in a thousand years," but
it is also without question a situation so critical that it may
be likened to "an enormous weight hanging by a single hair."
Speaking specifically, China's former destiny, her rise or fall,
her prosperity

unequal treaties could bejabolished. But now that the unequal
treaties have been abolished, China's destiny hereafter will
depend .

In^other words, Chma^^ ex-

ternal ^^^^^^^^ n ^ CQ ^ t ^ i ky f ore igjQ^erialists. But

her jiestiny Jbu^^

rests^Jn^ the hands of our entire citizenjry. If our internal

affairs are unified, if the strength of our state is centralized,

and if, in addition, all the citizens can join in a united effort,

then CWftai&jissl^

words: "Be sincerej^

oEey"lK<riaw"; and in that event, China's destiny will be

in5epS3lence and liberty. Otherwise it will be epitomized

2i8 CHINA'S DESTINY

by another set of words: "Cheating, dishonesty, violation of
the law, and chaos," and will be characterized by a return
to feudal warlordism and military partitioning, thus destroy-
ing unity and preventing reconstruction. In such an event,
China's destiny will decline and become extinct. China will
not merely continue to be a subcolony, but the descendants
of the Chinese nation for generations to come will be per-
petually enslaved, with no chance to regain independence
and with no hope for revival.

This is the turning point in China's destiny; the decision
will be made during the present War of Resistance within
the next two years. But China's revival has already become a
predestined fact; it cannot be shaken by any reactionary
force. [In the revised edition this sentence was modified to
read: "The fifty years of our National Revolution and the
five and a half years of total resistance have already laid the
foundation for China's revival,"] China today is really in
that period which Chinese philosophy has described as "at
the end of misfortune comes prosperity." We all know that
it is one hundred years since the conclusion of the Treaty of
Nanking; that the national humiliation of 1900 is nearly fifty
years old; and that it is already a generation since the failure
of the Second Revolution of 1913. With any nation, so long
as its mind is not dead and its spirit has not perished, then
the law of the universe that "when things are at their worst
they begin to mend," and that "at the end of a revolution
oixe returns to the beginning" can be relied upon to continue
unchanged. Nevertheless, the working out of this natural law
will still depend upon the degree of exertion and awakening
of our people, particularly of the revolutionary elements.
In other words, "things depend on how men do them."
Nothing can be accomplished by sitting and waiting; no
opportunity can be seized by those that are fearful and weak;
opportunities must be created by ourselves. If we proceed
with courage and exert our full strength, there will be no
natural conditions that cannot be overcome, and no social

CHINA'S REVOLUTIONARY RECONSTRUCTION 219

conditions that cannot be reformed. Otherwise, by sitting back
we shall lose the opportunity, and we shall have "things at
their worst" without the possibility of their beginning to mend*
Therefore the rise or fall, survival or extinction of the state
and the nation; the success or failure, happiness or misfortune
of the group and the individual, still depend upon our own
decision and our own choice, and cannot be left to heaven
or fate, which would be to neglect our own future and even
forget the purpose of life. Therefore, my philosophy , of life is,
as I have always said: "The p^^j^^JM^^^^^^ suc "
ceedmg lives in thejyyggj^

te"!v33Sre of mankind/ 5 This means that all new life in the
umvers? must be created by man and decided by man. And
there is no doubt that the destiny of our state must be created
and decided by our entire people. All the unequal treaties
signed since 18423 which forced our people into decline and
the degradation of slavery, were brought about by our citizens
themselves; the present abrogation of the unequal treaties,
which has permitted the state and the nation to obtain
equality and freedom, has also been achieved by our citizens
themselves. The purpose of life is so great, and the force of
the people is so immense, how can we fail to have courage,
self-respect, self-reliance, and strength? I firmly believe that
today there is no doubt about our nation's surviving and our
state's becoming rich and strong. Furthermore, hereafter,
military partitioning and feudal reactionary forces which
violate the interests of the nation and are opposed to current
trends will not only have no chance but also no ground for
existence. Otherwise, the destiny of the state would be de-
stroyed by them. Can you not see that a country of four
hundred and fifty million people in the present great age,
with Dr. Sun's Three People's Principles as its guiding revolu-
tionary doctrine, cannot be subjugated?

My Compatriots ! With the survival or destruction of the
state, and the happiness or misfortune pf the nation thus
clearly placed before us, we must choose our course now.

22 o CHINA'S DESTINY

The international situation and the trend of the times do not
permit us to hesitate and remain undecided. Therefore, our
whole citizenry, particularly those revolutionary fighters that
wish to serve the state for the sake of independence and
freedom for the nation, for the elimination of our humilia-
tion 3 for strengthening the state, and for the sake of preventing
future generations from falling into the tragic condition of
slavery, should all join together within the Kuomintang in
order to fulfill our responsibilities and duties.

Furthermore, all our country's youth should especially have
a correct understanding of the San Min Chu I Youth Corps.
Hereafter, youths throughout the country, if you really wish
to fulfill your great revolutionary ambitions and carry out
the great enterprise of national reconstruction, you must join
the Youth Corps as the only course and the absolutely essential
road to establish your careers and serve your country. After
the abolkiQBu^ War

oFEesistance, China's only object i^<^Jbuil^a sM new state
^^

Tli tesia program -of- national recon-

tiqn^ up by

Sun Yat-sen. The vast personnel required by the "Industrial
Plan" has been indicated by the few examples given above.
These key workers in fundamental tasks are to be chosen
from youths now in school or just graduated. Therefore, every
minute of study and every minute of training of each youth
today is the source of new life and new strength for our state
and nation. How lucky are our youths to live during the
Second World War! How lucky to be able actually to par-
ticipate in this unprecedented era of great change! How
lucky to be able to participate in this great and incomparable
work of national reconstruction and place yourselves on the
front page of this history of independence and liberty! You
young people who are at the beginning of your careers are
already faced with an opportunity that comes only once in a
thousand years. You should calmly ponder your personal

CHINA'S REVOLUTIONARY RECONSTRUCTION 221

future, and fully understand the needs of a modern state, so
that you will not again blindly follow others, as in the past,
and mistakenly fall into the wrong course and ruin your lives
to your everlasting regret. You should understand that the
ThreePeople's Principles are not only the crystallization of

*t< , " S*>>^^ -MSWSW. Jb^*"= " 't^^S^maKxanasut^j^^^j ^^ -ssa-sjk- fft "^

ChinaJ^j^ of the nation, but

ako^jepres^^

Since thejfo^^

th$joj^oJbe entire
Only then

can they decide upon a correct course, follow the right road,
and not injure the state by injuring themselves. Only under
the plan of action of the Youth Corps can they follow the
right course and decide their life careers. The training re-
ceived by members of our Youth Corps is very strict and the
regulations they must obey are very rigid. What it cultivates
is a wholesome life for the nation, and what it preserves is
the interest of all the people. Its task is to arouse the decadent
and aid the crippled; to eliminate humiliation and foster the
rehabilitation [of the state]. The utmost loyalty to the state,
the utmost filial piety toward the nation; to be saints and
sages and heroes; to become the bloodstream of the nation
and the backbone of the state all these are involved in the
mission of the Youth Corps. Therefore, the youth of the entire
country should not only recognize that their entry into the
Corps is the beginning of their personal careers, but should
also feel that their joining the Corps is the starting point of
their glory. Therefore, the youth of the entire country should
further recognize that the orders of the Youth Corps are the
life of the nation's youth; that the strengthening of the Youth
Corps means the strengthening of the country's youth. Only
the new life and the new motivating power of the state and
the nation created in this way can enable us to fulfill our
mission in this great age. [In the revised edition, this passage
has been rewritten to read: "The youth of the entire country
should recognize that the regulations of the Youth Corps are

222 CHINA'S DESTINY

what hold together the whole life of the nation's youth; that
the strength of the organization of the Youth Corps is what
makes possible the completion of the common purpose of all
our young people the reconstruction of the state. The suc-
, cess of our National Revolution for the revival of the nation
is the practical expression of the San Min Chu /."]

In summary, the^Ku^

Corps are tSejgg^ nation

into^one body a fact that is shown by history and does not
require further explanation. But there is another point that
ought to be repeated to our citizens, namely that the Kuomin-
tang is the principal organization for the building of the state,
to be shared and enjoyed by the citizens of the entire country.
So long as the Kuomintang remains in existence, so long
will 'C^^^Tontinue^to^ exist! IT China today did not have
the Kuomintang, there would be no China. Had the Revolu-
tion of the Kuomintang been defeated, it would have meant
the complete defeat of the Chinese state. Briefly speaking,
China's destiny rests entirely with the Kuomintang. If there
was 'no Kuomintang, or if the Kuomintang should fail in its
task, China would have nothing on which to depend. [In the
revised edition, the passage from "So long as" to "depend"
has been rewritten to read: "If the Kuomintang Revolution
is brought to a successful conclusion, then and only then can
China be independent. If China no longer had the Kuomin-
tang there would be no more China. Briefly speaking, the
destiny of China rests entirely with the Kuomintang. If
by any mischance the Kuomintang Revolution should fail,
the Chinese nation would have nothing on which it could
depend. 55 ] Without the Kuomintang, not only would China
not have been one of the four Great Powers in the world, but
she would certainly have been partitioned by the other
powers, and the name of China would not be seen on the
map of the world.

We should all recognize, therefore, that from the standpoint
of the state's organic life, if there had been no Three People's

CHINA'S REVOLUTIONARY RECONSTRUCTION 223

Principles, China's work of national reconstruction would
have lost its guiding principle. Thus, the Three People's
Principles are the soul of the state. From the standpoint of
the state's organic activity, if there was no Kuomintang,
China's work of national reconstruction would have lost its
motivating power. The Kuomintang is, therefore, the state's
blood stream [artery], and the San Min Chu I Youth Corps
provides the new corpuscles in that blood stream. If all the
revolutionary elements and the ambitious youth of the country
really wish to live and die with the state, share the glory and
humiliation with the nation, regard the enterprise of the
state as their own enterprise, and the life of the nation as their
own life, they should, as a body, join the Kuomintang and
the San Min Chu I Youth Corps. Only then can they fulfill a
citizen's supreme responsibility and attain the most well-
rounded life. And only then can we fulfill our great mission
of jointly building the state.

The above explanation may draw two kinds of reactions
from people. One reaction may be that this is nothing but an
inducement for the people outside the Kuomintang to join
the Party. The other reaction, advancing a further step, may
be that this statement is designed to warn other parties and
organizations outside the Kuomintang that there is some
positive plan for action against them, or that, negatively,
obstacles will be put in their path. Toward the first reaction,
I frankly reply: I hope the country's revolutionary elements
and ambitious youth will join the Kuomintang and the San
Min Chu I Youth Corps, because they have that privilege and
that duty. If they have the will to save the nation and the
state, they should voluntarily join the Party and the Corps
without any request or advice from me. Toward the latter
reaction, I can also give a frank answer: With regard to all
other ideologies and organizations I only wish that they should
not partition territory and oppose the Revolution; that they
should not organize armed forces and sabotage the War of
Resistance. If they are really of benefit to the country, the

224 CHINA'S DESTINY

nation, and the revolutionary building of the state, I not only
would have no thought of hampering them, but would even
hope that they might also develop and succeed.

Myopimgns.regarding the state, titejiatisasuJfflir^olu-
tionary reconstruction are fixed and ^unalterable-JBut,,.!. Jhave
no*3i^Ete" pginion _ regarding^ any_theqry_ or^joijguQiMtion.
[The^first two sentences in this paragraph are omitted in the
revised edition, presumably because they are contradictory.]
For the sake of the state and the Three People's Principles,
and also for the sake of the people and my friends, whether
public or private, I cannot but open my heart and fulfill my
divinely ordained responsibility to warn, sincerely and hon-
estly, the followers of all types of ideologies and organizations
within the country: First, I must humbly ask to learn from
those friends that now hold an attitude of opposition to the
Kuomintang: "Do you oppose the Kuomintang because its
principles are not good? Or is it because the Kuomintang' s
policy is unsuitable? If you feel that its policy is right and its
principles are good, and that its revolutionary program is
beneficial to the state and the nation, but feel that in its
actions or attitudes it has made some mistakes, you should
then come forward and correct it and remedy its mistakes.
But you should not, because of them, oppose it, destroy it,
and through its destruction, destroy the entire life of China
as a state. Everybody knows that to destroy the life of the
state means the destruction of your own life and the lives of
your descendants through countless generations this is a
very serious matter!

I believe that if we all take an objective attitude toward the
Kuomintang, use the facts of past history as evidence and
analyze it in the light of the present changeable international
situation, and examine it in reference to the country's future,
we shall then realize that in^jQhiss^^

Pmcig^^ ;

that theNa^^ bright

road^^ the

CHINA'S REVOLUTIONARY RECONSTRUCTION 225

tivating power th^lU^^ the

:^ artery for jhe^exiYal , of the

Aside from this, during the period of military rule and
political tutelage, those that endeavor to organize armed
forces and to partition territory, no matter under what name
or with whatever strategy, may be described if not as war-
lords, then at the very least as feudal. 1 Are those disguised
warlords and new feudalists beneficial or harmful to the
nation and to the Revolution? Everyone severely condemned
those that formerly controlled armies and the territory-
grabbing warlords as counter-revolutionary. Can we now call
these disguised warlords and new feudalists genuine revolu-
tionaries? If the anti-revolutionary forces based upon the
partition of territories by force and feudal warlordism remain
in existence for a single day, then for that day the politics of
the state cannot be placed on the right track and the period
of military rule also cannot be ended. Not only is there no
way to inaugurate the period of constitutional government,
but the work of political tutelage also cannot be carried out.
The hindrance and damage to the state and the Revolution
caused by such a situation is immeasurable.

Moreover, the Great Powers Soviet Russia, Great Britain,
the United States, and other nations all hope that our

i. This is obviously me^^^^pi entirely willing to surrender the con-
attacif* against """fEe" 1 * Oommunist-led trol of their armed forces to a demo-

cratic Chinese Government that repre-

the more one is led to the conclusion sents all sections of Chinese life. A

^|[*Yi5^^ comparable situation would exist in

a ^^^^^^^^^^^^^^^rojl| fc ,to the United States if the American

the oneopjition group , in phina Army was exclusively controlled by

Kai- the Democratic Party, and the Re-

Kuomintang leadership publican Party's only chance of ex-

have repeatedly argued that no gov- isting as an effective political organi-

ernment can tolerate the existence of zation lay in its control of its own

an army controlled by a political troops. Under such circumstances, it

party. The Communist reply, and a is not hard to imagine that the Re-

just reply, is that (i) the Central publicans would oppose a demand

Armies are also political party armies, that they turn their troops over to the

being controlled exclusively by the control of the Democrats.
Kuomintang, and (2) that they are

226 CHINA'S DESTINY

nation will be liberated and become progressive; that our
state will become independent and free. Therefore, they have
voluntarily agreed to relinquish the special privileges and
extensive influence that they had enjoyed for the past hundred
years under the unequal treaties. How is it then that our own
internal parties and groups are not willing to abandon their
evil habits of partitioning territory by armed force and give
up their attitude of feudal warlordism? How can they still be
called Chinese citizens? How can they be spoken of as a
political party? In what country in the world is there a polit-
ical party that follows a policy of armed force and illegal
seizure of territory, obstructs the unification of its own coun-
try, and prevents the governmental system from entering
upon its proper course? [In the revised edition, this sentence
was expanded into the following passage: "In what country
in the world is there a political party that at the very moment
when the government was engaged in resisting foreign ag-
gression and was fighting for the nation's life and the survival
of the state would use the opportunity to expand its own mil-
itary forces and seize fresh territory, and by disobeying gov-
ernment orders ruin the plans for national resistance, create
dissension within the country, make unity impossible, and
prevent politics from following the right path? It should be
realized that the continuation of this situation can only result
in our losing our position as a state and the curtailment of
our life as a nation, until both state and nation have been
destroyed. Is this not tragic?"] Is this not counter-revolution-
ary? Is it not an obstacle to the Revolution? If such obstacles
to the Revolution are not voluntarily withdrawn, will they
not ruin the state and harm the nation? They will not only
ruin the state and harm the nation,, but eventually will ruin
themselves by ruining others.
IbuavejJ^^
ldjax^^

"!!^^ seek to

^ IS

CHINA'S REVOLUTIONARY RECONSTRUCTION 227

no willingness thoroughly to alter the habit of feudal war-
lordism, and abandon completely the partition of territory
by force of arms, then no matter how lenient our attitude may
beTTt cannot produce any result and no reasonable solution

M^. _**..- -*-"' i*.JU_^J* l-J-^WJ, U . I ^U-"-l-~-Jt "--.- " . . _ L',, . . , ,

can Jbejound. 2 I believe that we are all patriots who love our
country, and that no matter how much we may have fought
each other in the past, there is no reason why we cannot give
up our personal prejudices and animosities for the sake of
the life of the state and the future of the nation. This would
allow our internal politics to be unified and our Government
to proceed along the right road, so that foreigners would not
look down upon us as a backward nation and inferior people.
We should further hope that the period of political tutelage
may be speedily completed so that constitutional government
may become a reality that the state may become a demo-
cratic and independent one, and every person, in it an inde-
pendent and free citizen. Only then shall we not be ashamed
of being the descendants of the Chinese nation, and only
then can a party achieve the status of a political party in a
democratic country.

We revolutionaries must speak the truth and perform real
work. We should always remember the saying: "Sincere re-
proofs grate on the ears, and good medicine is bitter to the
mouth." You who gather together in organizations that pur-
port to be revolutionary but in fact destroy the Revolution,
that purport to be patriotic but in fact injure the country,

2. It was this thinly veiled threat
and virtual promise of civil war that
aroused the bitterest criticism, from
all shades of political opinion, par-
ticularly the Communists. It must be
remembered that when this threat
was made, the Central Government
forces were sustaining serious defeats

the Eighth Route and New Fourth
Armies, and was openly making
elaborate plans for a full-scale civil
war against these armies. It was this
chapter that received the severest
criticism in a very lengthy Chinese
Communist reply to China's Destiny,
written by Chen Pai-ta, which was

at the hands of the Japanese, and I published in the United States in the

that despite these defeats, the Kuo-
mintang bureaucracy was using its

f January, 1944, issue of the Communist,

best troops and equipment to strength- j

and was incorporated in a book en-
titled The Chinese Communists by Stuart

en and enlarge its blockade against LjgWer, published in London in 1946.

228 CHINA'S DESTINY

are not only harming the state and the nation and injuring
the revolutionary reconstruction of the state, but are also
harming your own futures and dooming your personal enter-
prises to failure. I wish most honestly and frankly to warn
everyone again: If you cling to your old habits and maintain
your past attitude, you will only obstruct your own future,
hinder your own enterprise, prevent the strength of the state
from being completely centralized, and the work of national
reconstruction from being satisfactorily carried out. This will
not be of the slightest benefit to you and will cause incal-
culable damage to the state and the nation. We should realize
that today the destiny of our country hangs in the balance
between life and death. Not a single person can be permitted
to throw himself away; not a single ounce of strength can be
wasted. I hope, therefore, that everyone, for the benefit of
the state and the survival of the nation, with one mind and
one purpose, will join together with faith in the Three People's
Principles, and unite together within the organization of the
Kuomintang.

This is because it is the privilege and the duty of us all,
and is certainly not because the Kuomintang has any im-
proper or harmful purpose toward you. Everyone should
also know that, for the past fifty years, the Kuomintang has
never abandoned any of its revolutionary work because of
the opposition or obstruction of other parties or groups. That
is why today we have achieved the preliminary stage of suc-
cess [in the Revolution], Hereafter, the Kuomintang will
certainly not delay its revolutionary work because of the
opposition or sabotage of other parties, but will determine
to continue until success is achieved. We all know that during
the past fifty years every party that opposed the Kuomintang
was defeated, no matter how big it was and no matter how
powerful the military forces it controlled. This was especially
true of the warlords and parties that had the backing of Jap-
anese imperialism. [The word "Japanese" was deleted in the
revised edition.] We ought to realize that this was not due

CHINA'S REVOLUTIONARY RECONSTRUCTION 229

to any special strength of the Kuomintang, but to the mission
entrusted to us by time and history. This mission is something
that cannot be opposed or destroyed by any force. The
stronger the opposition,, the sooner has been the victory; and
the more violent the attempt to destroy it [the Kuomintang],
the greater its strength has become.

Therefore, I have always said that if the Kuomintang itself
contains the seeds of self-destruction, then it will certainly be
defeated without waiting for opposition from others. Other-
wise, no opposition or obstruction to it can be effective. Thus
the opposition of other parties will be unable to damage or
halt the revolutionary work of the Kuomintang, but it will,
I am afraid, have a bad effect upon China's work of national
reconstruction, in which case a most unfortunate blow would
be dealt to our position of independence and equality, which
has been achieved through the suffering and sacrifice of our
entire nation. This would also mean that the able and in-
telligent people within the country would not be able to work
together in the great task of national reconstruction. They
might even misuse their ability and intelligence, and miss
this great opportunity. For the individual, this would be a
most regrettable matter, and for the Kuomintang it would
mean that it had not fulfilled its responsibilities or performed
its duties toward the people. I^cannot^lrj^ therefore, but_ask
thDeopleagain and again towoAjogetherinunity. I trust
alloFyou^ my words

are from the bottom of my heart.

CHAPTER EIGHT

CHINA'S DESTINY AND THE FUTURE
OF THE WORLD

WE KNOW that our backwardness in science and technical
skill were the obvious reasons for China's decline and weak-
ness. During the past hundred years, the Chinese people,
desiring to study foreign sciences and technical skills, wor-
shiped all foreign civilization and did not understand the
innate spirit of the Chinese nation or the virtuous character
of the people, both of which have their fine points. China's
native political philosophy was especially the product of the
nation's innate spirit. China's political philosophy believes
that warfare and production should serve men and opposes
the idea that man is the servant of war and production.
Mencius said: "Like material things but love the people,"
which means that the state should dispose of material things
for the benefit of the people, and should not make the people
the servants of material things. The "Great Learning" 1 said:
"Where there is man, there is land; where there is land, there
is wealth; where there is wealth, there is usefulness." This
means that the productive system should be based on the
people's livelihood, and that productive skill should not be
permitted to dominate man's nature.

For three thousand years, this political philosophy and the
economic principle determined the psychology of the Chinese
nation, and the virtuous character of the people was affected
by and existed simultaneously with this political philosophy
and this economic principle. It has been previously stated

i. The "Great Learning" (Ta philosophers in the thirteenth century
Hsueh) is part of The Book of Rites A.D. as a source of the later Confucian
(Li Chi) and was used by the Sung philosophy.

230

THE FUTURE OF THE WORLD 23!

that the inherent virtues of the Chinese people consist of the
ability to endure humiliation, accept responsibility, under-
stand thrift, and possess a sense of honor. Because the Chinese
people possess these virtues, they are not afraid of strong
enemies, and do not take advantage of minorities and the
weak, but rather apply their traditional principle of mag-
nanimity, and treat others as they wish to be treated them-
selves. For this reason they have been for thousands of years
the leaders of the people of Asia in "preserving the perishing
and sustaining those that might be destroyed," and in "help-
ing the weak and assisting the fallen." As a consequence,
there is no historical evidence of economic exploitation or of
political domination of the peoples of Asia during the period
when China was strong and prosperous; nor was there any
imperialism or colonialism. This political philosophy and
political virtue was despised and not practiced by modern
European nations. Their capitalists subordinated human life
to techniques of production and strove for profits. Their im-
perialists subordinated human life to the techniques of war,
and sought to develop colonial possessions. Due to these inter-
related ideologies, internal class conflicts and international
wars fill the pages of modern world history.

At the close of the First World War, when the human race
was painfully reflecting on its past sufferings, war-weary phi-
losophers placed the blame on science, stating that science
had improved the instruments of killing and had thereby
caused the havoc of war to spread to all mankind. They did
not realize that the ending of warfare depends upon elimi-
nating the sources of war, and not in limiting the instruments
of war. Mencius said: "Is there any difference between killing
a man with a club or with a sword?" If mankind cannot
develop its concepts and moral character sufficiently to put
an end to war, what difference does it make whether people
are killed by bows and arrows or by airplanes and big guns?

The war-weary philosophers also failed to recognize that
science is motivated by service to mankind. The misuse of

232 CHINA'S DESTINY

scientific discoveries causes man to become more cruel as
science progresses, but this is not the fault of science. The
fault rests in the fact that China's exalted political philosophy
has not been popularized, and her profound and eternal
political philosophy has not gained wide acceptance. I feel
that the termination of the Second World War must at the
same time terminate the system and concept under which
man is now subordinated to techniques; only then can per-
manent peace be established and a step be taken in the
direction of a truly cosmopolitan world. This must be done
if our war against aggression is to have real value and real
purpose.

A political scientist of England once said: "If we do not
end war, war will end us." This is absolutely true. Nearly
three thousand years ago, Lao-tzu made the statement that
"it is a misfortune to have good soldiers." Chinese sages of the
past all maintained that military virtue consisted of "helping
the weak and restraining the strong/' and all considered that
"war to end war" was the real objective of war. According
to the ancient doctrine that "it is a misfortune to have good
soldiers," those advocating militarism are certain to bring
destruction upon themselves in the face of the righteousness
and justice of mankind. According to the principle of "war
to end war," and the military virtue of "helping the weak and
restraining the strong," the antimilitarist and anti-aggressor
Allies must, at the conclusion of the present great war, jointly
exert all their efforts to eliminate the cause of the war. If the
cause of war cannot be eliminated, a Third World War will
follow on the heels of the Second World War, exactly as the
Second World War followed the First.

What is the cause of war? Whenever among nations and
states there are any political, economic, or military ideas or
actions of an aggressive nature, or any relations or systems
based on such ideas or actions, there will be a cause of war.
Frankly speaking, the cause of warjs^jmg^ialism. Therefore,
I believe that the end of tKJTSecond World War must also

THE FUTURE OF THE WORLD 233

mark the end of imperialism. Only then can the permanent
peace of the world be firmly assured.

China has suffered the longest and the most deeply as an
oppressed nation. Therefore, China's demands for national
freedom and equality among nations are also the most urgent.
When China raises these urgent demands, it does not mean,
as those that are suspicious of China claim, that China "wants
to lead Asia." It should be noted that for the past five thou-
sand years China's wars with her neighbors have been only
"righteous wars" for self-defense and for the "preservation of
the perishing and the sustaining of those that might be de-
stroyed," and she has never had "good soldiers" to invade
other countries. During the past hundred years, the movement
to eliminate our national humiliation and become strong arose
from the unanimous demand of the Chinese people. There
are two meanings in this movement which we ourselves and
all other countries of the world should recognize. First, after
China has become independent and strong, she will definitely
not wish the sufferings she has endured to be inflicted upon
other countries, and furthermore, after the overthrow of Jap-
anese imperialism, she will not even consider assuming the
mantle of Japanese imperialism with the idea of "leading
Asia." Secondly, the goal of independence and rehabilitation,
strictly speaking, means that China must first become self-
reliant. In order for China to become self-reliant, she must,
spiritually and materially, seek freedom and independence,
and she must also seek progress and development in the fields
of national defense, economics, politics, and culture. China's
desire for independence and strength does not arise from
selfishness. In seeking freedom, independence, progress, and
development, China's objective is to stand "shoulder to
shoulder" with the other countries of the world, and to share
with other nations the responsibilities for the maintenance of
permanent world peace and the liberation of mankind. In
other words, China's desire for independence and strength is
motivated by a feeling of duty and responsibility, and not by

234 CHINA'S DESTINY

greed for power and ideas of material gain. Therefore, since
China opposes the existence of imperialism in the world, she
surely will not follow a policy of imperialism.

During the last hundred years, while experiencing bitter
sufferings, China has adhered to her traditional feeling of
duty and sense of responsibility, and has observed that the
existence of imperialism is the real cause of world war. China,
therefore, is forced to give double consideration to the question
of freedom and equality for the nations of Asia. Asia occupies
a quarter of the globe. Asia's population is more than half
that of the world. The nations in Asia have been, on the whole,
subjected to bitter sufferings from oppression similar to those
of China, and their sufferings have been equally deep and
long lastiner. If China cannot be free and independent, the

ft ' ' " niT ** "WW**!^ MMMWK^^ "

other nations of Asia will each fall under the iron heel of the
enemy, and world peace cannot ^^^^^^^Younciatiou.
The^ rehabilitation are es-

sential for the stabijizatipiijof ^ Asia; and f r e?eHom and equality
for the nations of Asia are essential for permanent peace in
the world and the elimination of the causes of war, so that
the evil of war will not again be let loose in the world to
destroy the security and happiness of mankind.

The principle of self-determination and equality among
nations ought to be applied to the organization of inter-
national peace after the war. The eventual failure of the
League of Nations, formed after the end of the First World
War, was due mainly to the ignoring of this principle. The
concepts of "World Powers" and "Spheres of Influence" and
the system based upon such concepts ought not to be allowed
to reappear in the organization of international peace after
the Second World War.

The principle of self-determination and equality among
nations should, moreover, be applied to the revival and de-
velopment of post-war world economics and culture- With
respect to world economics, the principle of co-operation in
[control of] natural resources and freedom of trade should be

THE FUTURE OF THE WORLD 235

observed by all nations, but it is even more important for all
nations to achieve equilibrium in the development of pro-
ductive power. The Japanese imperialists hope to put into
effect in Asia their ambitious program of "Industrial Japan
Agricultural Asia/ 3 and its poisonous effect would be the
same as that of Nazi Germany's so-called "Plan for Greater
Europe." If the productive power of all the nations of the
world cannot be developed equally, then political freedom
and equality will be affected by economic differences, even
to the extent of being destroyed by economic exploitation.

With respect to world culture, cultural freedom and inde-
pendence are essential to the freedom and independence of
nations and states. The "Pan-Japanism" advanced by the
Japanese imperialists and the Nazi "Theory of the Superiority
of the Aryan Race 55 are both concepts that are destructive in
world peace. Hereafter, theories of superior civilization and
superior races must be forever eliminated from the world if
international peace is to be guaranteed.

The aims and ideals outlined above were first formulated
when China began her War of Resistance. Since the outbreak
of the European War and the Pacific War, the co-operation
among the Allies in the military, economic, and diplomatic
fields, together with the interpenetration of their cultures and
ideas, have caused them [these ideals] to advance to the eve
of concrete realization. However, t^jultiix^^ of

these ideals still requires that the entire dtizrary^ of phina
* adhere^ jhe

of the War of Resi^^

IN SUMMARIZING the discussion contained in the foregoing
chapters, its important theme may be divided into two phases.

1 . From the historical point of view, the unequal treaties
concluded during the past hundred years aroused the unani-
mous demand of the people of our entire country for a move-
ment to rid ourselves of humiliations and become a strong
nation. The Revolution to overthrow the Manchus occurred
because of this, and the War of Resistance and the movement
for national reconstruction also occurred because of this.
The events that took place during the course of the movement
to rid ourselves of humiliation and become strong have proved
that the road of the Nationalist Revolution is the most ef-
fective and the most correct. Today, the Nationalist Revolu-
tion has achieved preliminary success. Hereafter, our Chinese
citizens must follow this successful road to attain their ob-
jectives in the War of Resistance, and to carry into effect the
program of national reconstruction.

2. From the standpoint of the changing international situa-
tion: While the Second World War is in progress, it is only
through China's War of Resistance that the various nations
of Asia can become firm in their opposition to aggression; and
victory in the World War depends on the efforts of the Asiatic
nations. After the close of the Second World War, the attempts
made to secure permanent world peace and the freedom and
liberation of mankind must take as their starting point the
national freedom and equality of status of the nations of Asia.
China's independence and freedom are the forerunners of the
liberty and equality of other Asiatic nations. That is, only
when China obtains her independence and freedom can Asia
be stabilized and advance into the realm of liberty and equal-
ity. Asia's stabilization is the guarantee of world peace, and

236

THE FUTURE OF THE WORLD 237

the liberation of the peoples of Asia will also mean the libera-
tion of all mankind,

China's status of independence and freedom today has
been obtained by the abrogation of the unequal treaties.
But the proper reaction of the Chinese people to this should
be a heightened feeling of duty and a strengthened sense of
responsibility. The responsibility of the state and the duties
of the citizens will become heavier hereafter. Completion of
the work of national reconstruction and the realization of
this ideal depend on a vigorous struggle and great sacrifice
on our part.

"There is no easy task in the world; there is no difficult
task in the world." Our people need only have absolutely
sincere confidence in our own state and nation enthusias-
tically supporting and actively carrying out the Three People's
Principles and the building of the state; unanimously recog-
nizing and jointly struggling for the purposes and objectives
of the Nationalist Revolution. Then, even though future
difficulties are as great as removing a mountain or emptying
the sea, there is no reason why we shall not succeed.

My Compatriots! The unequal treaties have been abro-
gated! Looking back at the sufferings of the last hundred
years, we should be even more eager to carry out the am-
bitions of our soldier comrades and revolutionary martyrs
who gave their lives to the state. We should be eager to per-
petuate the spirit that has upheld this country during the
last five thousand years; revive our ancient virtues; be de-
termined and practice what we believe; strive to advance
from better to best, and sincerely follow Sun Yat-sen's revolu-
tionary philosophy that cc to know is difficult, but to act is
easy. 5 ' Each person, according to his profession and position,
each according to his intelligence and ability, must aid in
the work of reforming social customs, modernizing political
practices, and cultivating the concept of freedom and govern-
ment by law, and must unite in the work of national recon-
struction that is, reconstruction in the five fields of psy-

238 CHINA'S DESTINY

chology, ethics, society, politics, and economics. We must
exert all our efforts to carry out the total plan of reconstruc-
tion which combines culture, economics, and national defense,
in the hope of sharing with the Allied nations the responsi-
bilities of reforming the world, safeguarding the peace y and
liberating mankind.

CHINESE ECONOMIC THEORY

By Chiang Kai-shek

INTRODUCTION

CHINA'S economy during the past century was influenced by
Western industry and commerce, and in consequence under-
went a great change. As a result, many people were inspired
to study Western industrial and commercial organization as
well as Western economic theory. Orthodox Western schools
of economics and Marxist theory have been the most popular
with Chinese students. No one, however, is studying China's
own economic principles. If, today, one were to refer to Chi-
nese economic principles, he would not be understood. More-
over, there is a type of person that adheres so stubbornly to
the principles of Western economics that he is unable to
accept or understand the economic principles and theories
that are traditionally Chinese.

A study of the real nature of recent economic changes in
China, an estimate of future economic developments, and
any attempt to work out the objectives toward which our
economic development should be directed, all reveal the
reasons why current economic theories are not related to the
historical economic theories of ancient China. This is because
during the past century China was under the bondage of the
unequal treaties.

Most so-called scientific thinkers tend to disparage things
of their own country and to esteem highly everything foreign.
Our economists, moreover, have been influenced by our semi-
colonial status and thus have lost their independence and
initiative. They lack the spirit of invention and discovery.
The most economically developed cities of China are the
Treaty Ports, especially the foreign concessions. And the
chief objects of study by Chinese economists are these same
Treaty Ports, particularly the industrial, commercial, and
financial concerns in the foreign concessions. Since these are

241

242 CHINESE ECONOMIC THEORY

merely appendages of foreign industrial, commercial, and
financial enterprises, our economists have learned nothing
except to copy the accepted foreign theories. They have for-
gotten that China herself has had a long historical develop-
ment, her own special geographical environment, and her
own economic laws and principles, upon which the country
developed. This tendency is very regrettable. We have now
lived through fifty years of National Revolution and six years
of sacrifice in our War of Resistance. We have been successful
in abolishing the unequal treaties. If all our people will main-
tain their firm stand and continue their determined efforts to
defeat Japanese imperialism, China will become a free and
independent country. Our economic development can then
be based on independent and free plans, which must be
worked out now. And still more important, we must establish
our own free and independent economic theories as the basis
for these plans,

We must bear in mind that current economic theories are
merely imitations of those accepted in the West, which are
based on economic conditions in the West. And these condi-
tions constantly change. The most important recent change
occurred at the beginning of the twentieth century when free
industrial and commercial competition in Europe and Amer-
ica was transformed into monopolistic concentration. This
change was particularly apparent after the First World War
the late Father of our Country [Sun Yat-sen] called it the
"Second Industrial Revolution/ 5 Today, twenty years later,
the Second World War is being fought on a larger scale than
the First* It will result in even more radical changes. World
economics has again come to a sharp turning point. At this
time, we must reconsider both Chinese and Western economic
theories to find the right path for our own economic develop-
ment and for world economic reform.

CHAPTER ONE

DEFINITION AND SCOPE OF CHINESE
ECONOMIC THEORY

FROM the standpoint of the relations between men and ma-
terial things, Chinese theory defines economics as "the study
of managing men and adjusting things. 5 ' As for the relations
between the parts and the whole, economics is defined as
"the study of national planning and the people's livelihood. 33
The basic principles of Chinese economics are therefore the
management of human activities and the adjustment of goods,
and the study of national planning and the people's livelihood.
In more simple terms, economics is the study of how to make
the nation rich and strong to build a nation into a wealthy,
powerful, healthy, and contented state. In essence, it is the
Study of national development. From this it is clear that the
scope of Chinese economics is much broader than that of
Western economics. 1

There is a reason for the creation and existence of every-
thing in the universe. The Book of Odes* states that "God

i . It is difficult to translate many supply were the chief if not the only

terms from Western languages into problems in China's ancient agrarian

ideograph languages such as Chinese feudal society, but they are far from

and Japanese without distorting or constituting an accurate definition of

restricting their meaning. This is the scope of modern economics. From

particularly true of scientific termi- such a restricted definition of "eco-

nology. Throughout this book, "eco- nomics" it is easy to deduce the need

nomics" is expressed by the Chinese for a paternalistic government cen-

ideographs, ching chi, which mean tered in a self-perpetuating bureauc-

Hterally "management and supply" racy. In Hitler Germany, such theo-

and which are used by the author in rizing led to the Nazi regime; in

their literal sense. Such a definition China it can lead only to a feudal-

of "economics" is in no sense com- fascist bureaucratic system,
parable to the content and methods 2. See China's Destiny, footnote, p.

of modern economic science as devel- 31.
oped in the West. Management and

243

244 CHINESE ECONOMIC THEORY

created men and for everything created, there is a reason."
Since man was created, there is a reason for his existence,
and that reason lies in man's nature. Like all other creatures,
man wishes to live, but unlike other creatures, he can reason
and think. This is the special characteristic of man's nature.
According to the Book of History* "Man is the cleverest among
creatures." This refers to his thinking and reasoning powers.
Chinese economic theories, whether Confucian or Legalistic, 4
all base their discussion of the relation between men and
things on the rational nature and wants of mankind. The
Confucianists wished to develop man's rational nature, while
the Legalists advocated the control of man's desires. Con-
fucianist theories were therefore based on benevolence and
love, while the Legalist theories were based on rules of law.
This is the distinction between the two schools of thought.
The benevolence and love advocated by the Confucianists
are predicated on man's rational nature, while the legal
restrictions of the Legalists are primarily concerned with
human desires. Both schools, however, are in reality concerned
with man's rational nature: one aiming to develop it and the
other to control it. Thus the basis of Chinese economic theory
is man's rational nature not his wants. 5

Everything in the universe fulfills the purpose of its creation-
Each has its own place. If this law is recognized, we can enable
everything to attain its own proper place. This is what is
meant by the statement in the Doctrine of the Mean: "All

3. The earliest literary source for and wished to replace it with govern-
Chinese history, comprising ancient ment by law as a more efficient way
documents and speeches. Only part of maintaining the authority of the
of the book has survived, and there state.

is considerable debate over the au- 5. This is merely one of many il-

thenticity of the present text. lustrations of the wholly unscientific

4. The Legalistic School (also character of "Chinese economic the-
known as the Juristic) developed in ory" as developed in this book. To
the fourth century B.C., in opposition start from the premise that man is
to the idealistic teachings of the Con- "rational" and from this deduce the
fucians. The Legalists rejected the answers to all social and economic
idea of government by "morality" problems is completely contrary to
and "benevolence" as impractical, the methods of modern social science.

DEFINITION AND SCOPE 245

things will flourish when equilibrium and harmony have been
achieved, and when heaven and earth are in their proper
positions." This is the traditional Chinese philosophy, based
on the idea that men are not individual separate entities, not
each a single "I," but each a part of the plural "We." Sim-
ilarly, things are not divisible; each thing constitutes a part
of the whole. The relations between men and things should
therefore be studied and controlled from the standpoint of
the whole. Thus Chinese economic theory does not base itself
on the individual or single unit. It is based on the study of
mankind and society as a whole. This is quite different from
the theories of all Western economists.

According to Western economists, capital, labor, and land
are the three chief factors of production. They therefore devote
themselves to the study of these three factors. Chinese eco-
nomic theory, on the other hand, begins its study of the im-
portant factors of production with man himself. The "Great
Learning 5 ' 6 states: "Where there are men, there is land.
Where there is land, there is money. Where there is money,
there is use for it." This simply means that manpower and
land are the two important factors of production. If man-
power is used to develop the land, there will be goods and
money. Goods are of two kinds: the agricultural and mineral
products that are taken directly from the land, and the
products of agriculture and mining to which labor has been
added to make manufactured goods. Money is not regarded
as an essential factor of production in Chinese economic
theory. Chinese economists regard goods as the products of
manpower and the land, and money simply as a medium of
exchange.

To return to the central theme of our discussion: man is
man because he wishes to live and has the ability to think.
Man differs from other creatures because he is able to use his
mind and his rational nature to guide his activities in making
a living. Manpower comprises both physical strength and

6. See Chintfs Destiny, footnote, p. 230.

246 CHINESE ECONOMIC THEORY

mental power, or wisdom, which guides physical strength.
Human skill in production is characterized by uninterrupted
progress, while the productive skill of all other creatures is
limited to their claws and teeth. Ancient man's bow and arrow
for hunting, his hook and net for fishing, and his plow and
harrow for farming, and modern man's steam and electric
machinery and tools for industrial use are all the inventions
of his wisdom. These inventions, and the natural science that
produced them, constitute an important factor in man's
ability to increase his productivity.

Secondly, men are able to form groups. They do not have
claws or teeth like other animals, but because they have this
social nature, they have conquered all other animals and are
able to live on a much higher level. The reason that men are
capable of living together peaceably in large groups is their
ability to think and their rational nature. The highest and
most important grouping of men is society or the nation. The
strength of the nation-society is much greater than the sum
' total of the strength of each individual member. Each in-
dividual's strength can be best employed only as part of the
unified strength of the nation-society. Separated from this
society, man as an individual cannot exist much less utilize
his mental and physical powers to increase production. The
organization of this nation-society, and the rules established
for its preservation, thus constitute another factor in man's
ability to increase his productive power.

If man ignores the laws of nature and of society, he will not
only be unable to exist, but will also lose the special charac-
teristic of a human being. The way of living in accordance
with the laws of nature and society is called "culture." Other
animals do not know these laws, and are thus unable to im-
prove their livelihood. Only man knows these laws, and
knowing them, can take steps to improve his way of life.
These steps constitute cultural development and result in
continuous progress.

All inventions are based on natural laws. The ancient em-

DEFINITION AND SCOPE 247

perors, kings, sages, and wise men, venerated by the Chinese,
were all capable of understanding the laws of nature, and
hence of making inventions and discoveries that improved
man's livelihood. It is for this reason that the Emperors Fu
Hsi and Shen Nung, who invented nets, plows and harrows,
and Emperor Huang Ti, who invented bows and arrows and
Chinese characters, have been worshiped for five thousand
years. 7 These inventions were all designed for the improve-
ment of the people's livelihood and the attainment, in suc-
cessive steps, of the ideal state. Because of this, these inventors
are still honored by the Chinese of today. To speak of culture
without reference to clothing, food, shelter, and transporta-
tion, to think that there is such a thing as culture apart from
these, or to believe that only such arts as literature constitute
culture, is seriously to misunderstand the term. In Chinese eco-
nomics, culture and the people's livelihood are inseparable.
There is no culture apart from the people's livelihood, and no
people's livelihood apart from culture.

As stated above, the nation-society is the highest form of
human grouping. In ancient times, production in China de-
pended solely on handicraft industry and agriculture, and
communications depended on human and animal power.
Nevertheless, China grew into a great nation and a unified
country, because of the great knowledge of the ancient sages
and wise men in "managing men and adjusting things" and
in "national planning and the people's livelihood." The an-
cient statesmen and economists took great care to distinguish

7. These "Three Sovereigns" of human ruler who, with his four suc-

legendary Chinese history are credited cessors, Chuan Hsiu, Ku, Tao, and

in the Chinese classics with being the Shun, were the founders of Chinese

inventors of all the arts and crafts. civilization. The period of the "Five

They were supposedly divinities with Emperors" is known in the Chinese

the bodies of serpents and human classics as the "Golden Age" when

heads. However, according to Ssu-ma the government of the world was

Ch'ien, who compiled the first gen- perfect. The last of the "Five Em-

eral history of China in the first perors" Shun was succeeded by

century, B-C., Huang Ti was not one Emperor Yu, who according to ortho-

of the "Three Sovereigns" but the dox Chinese tradition founded the

first of the "Five Emperors" a first dynasty, the Hsia, in 2205 B.C.

248 CHINESE ECONOMIC THEORY

between man's rational nature and his wants, to adjust and
balance the relations between the government and the people,
and to co-ordinate the civil and military services. Their most
important discussions and theories emphasized that national
planning and the people's livelihood must be considered as a
single problem.

According to Chinese economic theory, the government's
duties are to support the people on the one hand and to pro-
tect them on the other. National plans for the support of the
people are plans for the people's livelihood. But since this
livelihood must also be protected, plans for livelihood become
plans for the national defense. The people's livelihood^ and
national defense are thus inseparable. From the Chinese
standpoint, therefore, Western economics is merely the study
of private enterprise or of market transactions, whereas Chi-
nese economic theory is not confined to private enterprise or
market transactions, but is a combination of the people's
livelihood and national defense. It may thus be said that there
is no national defense without the people's livelihood and no
people's livelihood without national defense. 8

In summary, it may be stated that the principles of Chinese
economic theory are to study and administer the relations
between men and goods and to enable man's rational nature
to improve his livelihood. These principles allow for both the
possibility of war and the fundamental unity of all races and
nations. In the light of these principles, we can understand
the dictum: "Where there are men, there is land; where there
is land, there is money; where there is money, there is use
for it." We will then have a clear knowledge of the objectives
of economics.

Chinese economists regard manpower and land as the im-

8, This is an example of the un- Therefore, culture equals national

scientific and inexact reasoning and defense a concept that perhaps sat-

terminology that characterize this isfies the military mind, but can

book. Culture is identified with the hardly be regarded as the product of

people's livelihood, and the people's scholarly or scientific analysis,
livelihood with national defense.

DEFINITION AND SCOPE 249

portant factors of production: the former develops the latter
and produces goods. The aim of economics is to make the
most efficient possible use of manpower, land, and goods. The
late Father of our Country said: "Men should develop their
ability, land should be made to produce to the limit of its
productivity, things should be used to the fullest, and goods
enabled to move freely." This means that we must make the
best possible use of manpower, land, and goods, and to achieve
this aim, there are certain laws, methods, and objectives.

Laws: We must recognize the reasons for the creation and
existence of all things. The reason for the creation and ex-
istence of a particular thing may be termed the nature of that
particular thing. In order to make the best use of manpower,
land, and things, we must abide by the natural laws of men,
land and things, because before we can make use of anything
we must understand its true nature. Thus, in Chinese eco-
nomic theory, it is maintained that in order to exploit man-
power and the utility of things, we must first understand their
nature.

Methods: We know that the principles of Chinese economics
begin with men and then turn to things. Mencius advocated
"kindness to man and regard for things.' 5 The Doctrine of
Mean states that only after man's nature is thoroughly under-
stood can we understand the nature of things. If we wish to
make full use of the fertility of the land, we must first under-
stand man's nature and make the best use of it. The two most
important ways to understand and utilize man's nature are:
First, to preserve the inherited ethics of the nation and restore
its traditional wisdom and ability; second, to master the ad-
vanced science of the West and introduce the newest Western
technical skills. This is essential if we are to exploit the nature
and utility of things.

Objectives: On the basis of our traditional culture coupled
with modern science, we must aim, in the shortest possible
time and with the least possible effort, to make the best use
of our manpower, land, and goods to improve our livelihood

250 CHINESE ECONOMIC THEORY

and strengthen our national defense. In other words, the two
objectives of Chinese economics are to support and to protect
the people. Western economic theory is based on wants, es-
pecially personal wants, but if this theory is carried out in
practice, the techniques of production and national defense
would not serve the people's livelihood on the contrary,
they would enslave men and even destroy man's nature.
Chinese economic theory is different, in that it takes the
people's livelihood as its objective. All economic systems and
policies must be in accord with man's nature and of service
to the people's livelihood. Mencius's saying, "kindness to men
and regard for things" means exactly this. We must love and
cherish things and expand their utility for the sake of man.
The people need the support of the nation, and the nation
should therefore, as quickly and easily as possible, make the
best use of manpower, land, and things, in accordance with
its traditional culture and modern scientific methods, in order
to achieve its economic objectives, namely, the people's liveli-
hood and national defense.

CHAPTER TWO

DIFFERENCES BETWEEN CHINESE AND
WESTERN ECONOMIC THEORIES

I. Economic Theories of Ancient China

THE objectives of Chinese economics are derived from the
principles common to the theories of all Chinese economists.
All sound economic theories must conform to the nation's
natural, geographic, historic, and climatic conditions, and to
its racial spirit and social phenomena. Theories differ in dif-
ferent countries and at different times. The ancient sayings,
"find reasons according to things," "suit the time, suit the
place," mean that theories and policies should conform to
( the time and circumstances and must be flexible. For this
reason, the economic theories in ancient China were both
varied and flexible.

Thirty centuries ago, during the Chou dynasty, people
migrated from the upper reaches of the Yellow River to the
valleys of the Yellow, Huai, Yangtze, and Han rivers, and
agriculture, industry and commerce flourished. During that
period, China produced a great economist the Duke of
Chou. There are disputes over the date and text of the Chou
Book of Rites [Li Chi], but the greater part of the book is con-
firmed by the Chou dynastic annals. Other sources are the
Book of Odes, especially the chapter entitled "Seventh Moon"
and the poems, "Ta Tien" and "Pu Tien," and the comments
of Confucius and Mencius concerning the Chou dynasty. All
these sources indicate that the Chou dynasty developed the
"well-land" farm system as the basis of conscription, govern-

251

252 CHINESE ECONOMIC THEORY

ment, and taxation. 1 The foundation of the state on this
merging of culture, the people's livelihood, and national
defense was originated by the Duke of Chou. During the next
five hundred years, Chinese agriculture and commerce made
considerable progress, but each influenced the other and this
gave rise to certain problems and differences in economic
thought. These issues were discussed by Kuan Chung, Chi
Jan, and Pai Kui of the Ch'un Ch'iu period [722-481 B.C.],
and also by economists during the period of the "Warring
States" [481-221 B.C.]. The most important point about these
discussions was that both the Confucianists and the Legalists
regarded agriculture as the basic economic activity, although
they differed with regard to commercial policy. Mencius and
Hsun Tzu [Confucianists] advocated the supervision of trade
without the imposition of taxes a laissez-faire policy while
Kuan Chung and Shang Yang [Legalists] urged the control
of trade and the stabilization of prices an interventionist
policy. It was not until the period of the West Han dynasty
[206 B.C.-A.D. 6] that a detailed chronological record [of these
economic discussions] was kept the "discourses on Salt and
Iron/ 3 which is comparable to the disputes among European
economists eighteen centuries later concerning the relative
importance of commerce and agriculture.

Following the period of the West Han dynasty, Chinese
economic theories, systems, and policies were gradually uni-
fied in accord with the teachings of the Confucianists. But

i. The "well-land" system (ching- first described by Mencius (372-289
fieri) derived its name from the fact B.C.) and elaborated on by later
that the land was supposed to be writers in the Chou Li, a book corn-
divided into square units, each unit piled during the Han dynasty, pur-
being divided into nine equal squares, porting to give a detailed account of
the inner boundary lines resembling ancient Chinese society. Though it
the shape of the Chinese character presumably never existed in such an
ching, meaning "well," (similar to the artificially perfect form, modern schol-
diagram for the game, tick-tack-toe.) arship accepts the fact that some such
The eight outer squares were cul- system formed the basic administra-
tivated by eight individual families, tive and economic unit in ancient
who jointly cultivated the central, or China,
"public" square. The system was

CHINESE AND WESTERN ECONOMIC THEORIES 253

the Confucianists themselves divided into two groups: one
emphasizing nature and reason and the other stressing "merits
and gains." The former group included Chang Tsai, Cheng
Hao and Cheng Yi of the Northern Sung dynasty [960-
1125] and Chu Hei and Lo Chiu-yuan of the Southern Sung
dynasty [1125-1280]. In the latter school of thought were
Su Hsin, Su Shih, and Su Che of the Northern Sung, and
Chen Tung-po (Chen Liang) and Yeh Ping-hsiang (Yeh
Chih) of the Southern Sung dynasty. Other economists com-
bined certain features of all these schools nature and reason,
merits and gains, and the common ideas of the Confucianists
and Legalists into theories of their own. Fan Wen- Cheng
(Fan Chung-yen) and Wang Chiang-kung (Wang An-shih)
of the Sung dynasty and Wang Yang-ming (Wang Shou-jen)
and Chang Chiang-ling (Chang Chu-cheng) of the Ming
dynasty [1368-1644] were important economists of this
type who were noted both for their theories and for their
success as practical administrators.

These various schools of thought can be illustrated by a few
examples. Among the kingdoms of the Ch'un Ch'iu period,
the kingdom of Ch'i was noted for the prosperity of its fishing,
salt, ironware, cocoon raising and silk industries. Its commerce
therefore exercised a dominant influence on the livelihood of
the farmers within the kingdom and also monopolized the
market in other states along the Yellow River. In the eco-
nomic writings of Kuan Chung 2 there is a detailed discussion
of the relation between agriculture and commerce, and the
system of conscripting farmers. Kuan maintained that man-
power and land were the only important factors of production,
and that the first was the more important because it was the
basis of production. In his Eight Viewpoints he stated: " People
cannot eat unless there is grain; grain cannot grow unless
there is labor; land cannot produce without men; men cannot
make a living unless they work so whatever heaven creates
is created by the use of manpower." This thesis is identical

2. Premier of Ch'i under Duke Huan, who ruled from 685-643 B.C.

254 CHINESE ECONOMIC THEORY

with: "Where there are men, there is land; where there is
land, there is money; where there is money, there is use for it."

Kuan endeavored to solve the question of prices from the
standpoint of the relations between agriculture and commerce.
He argued that gold is useful to the people only in business
transactions, whereas grain is a necessity of life. The more
gold there is, the lower prices will be, and vice versa. Sim-
ilarly, the more expensive grain is, the cheaper other com-
modities will be, and vice versa. Low prices discourage the
production of goods, and a scarcity of gold hampers trade.
High prices for grain causes popular suffering, and cheap
grain causes loss to the farmers. Kuan maintained that the
government must stabilize the price of gold and grain before
it could stabilize prices in general, and that to do this it was
essential to prohibit hoarding and facilitate the transport of
goods. Supplies of gold and grain must be controlled by the
government and kept out of the hands of the nobles. If prices
rose, the supply of gold should be reduced. If grain became
costly, the supplies in government granaries should be sold at
reduced prices. Such a policy would facilitate the free circula-
tion of all goods.

Kuan also advocated that to build up the power of the
State and prevent the people's livelihood from being controlled
by the nobility, the government should monopolize salt, iron,
and the products of mountains and rivers, and should also
control foreign trade. These monopoly and control policies
exercised considerable influence in later centuries. Kuan's
most famous policy, however, was that relating to the con-
scription of farmers. His theory was to "use civil government
to cover up military orders." With the disintegration of the
"well-land system," the distribution of land had become un-
equal and farmers had become distinct from soldiers. Kuan's
. policy was to organize the farmers and give them military
training, and by this means he made the entire population of
Ch'i potential soldiers. The people's livelihood and national
defense were thus provided for simultaneously. The "farmer-

CHINESE AND WESTERN ECONOMIC THEORIES 255

soldier" policy of Shang Yang was based on this policy of
Kuan's, and was used in the kingdom of Ch'in, whose troops
ultimately succeeded in conquering all other kingdoms [in
221 B.C.]. Of all Kuan's theories, this policy exercised the
greatest influence in later centuries.

From the foregoing, it is clear that as early as 600 B.C.
China possessed an outstanding economist in the person of
Kuan Chung. In subsequent generations, other famous econ-
omists emerged and economic systems and policies varied
from time to time. In the first century A.D. China was reunified
after a period of feudalistic division lasting well over two
hundred years. Problems such as the concentration of land
ownership, commercial prosperity, financial difficulties and
aggression from abroad were far more serious and complex
during the Sung dynasty than in the Ch'i kingdom of the
Ch'un Ch'iu period. At that time, Fan Chung-yen was the
first to urge that the educational and civil examination systems
be reformed in order to train the youth in economics. Wang
An-shih 3 followed Fan's lead and revised the laws. Wang

3, As prime minister during the labor when needed; revised the land
reign of Emperor Shen Tsung (A.D. tax laws; established state pawnshops;
1068-85), Wang An-shih instituted and instituted a system of official
various reforms known as the "New price fixing and limitation of profits
Laws." Wang's aim was to improve on the sale of property. All these
the lot of the peasantry, curb usury, measures were violently opposed by
and revise the system of administra- powerful vested interests among the
tion, which he considered wasteful, landowning and official classes, who
inefficient, and needlessly oppressive. denounced Wang as an "unorthodox
Though a Gonfucianist, he did not Confucianist." Their enforcement was
believe that the Confucian virtues also hampered by the lack of an ef-
were sufficient to ward off foreign in- ficient civil service capable of ad-
vasion or to relieve peasant discontent. ministering them, and they were
He revised the most oppressive fea- eventually repealed in 1086.
tures of the system of tribute, by Because of his emphasis on the
which grain and other produce had need to improve the lot of the peas-
to be transported to the capital from antry, Wang is often called a Socialist
distant provinces; instituted a system statesman, but this description is mis-
of state loans to farmers to free them leading. Wang believed in the ac-
from dependence on local money- cepted form of government auto-
lenders; substituted a system of graded cratic monarchy. His reforms were
taxation for the former system of inspired by the need to counteract
forced labor on public works the the threat of peasant uprisings, and
proceeds of the tax being used to hire were based on a return to the au-

256 CHINESE ECONOMIC THEORY

based his economic theories on the doctrines of Confucius and
Mencius. He stated: "The ways and means set forth in the
classics were meant for the management of practical affairs.
But present-day scholars are mostly incompetent, so they
regard the classics as no longer applicable to such manage-
ment/ 3 Wang held that the classics were studies of economics,
but that economic policies should conform to the "changes of
circumstances and trends"; that people in later centuries
might follow the principles set forth in the classics, but should
not slavishly copy the methods for carrying them out. His
views thus differed from those of the ordinary Confucianists
who emphasized the economy of consumption; Wang was
more interested in increased production. He wrote: "With
the world's labor we earn the world's money, and with the
world's money we meet the world's expenditures." His policy
was based on agriculture and water conservancy. He urged
economy and thrift, the prevention of further land concentra-
tion, equalizing taxes and services, and furnishing rural credit
in order to enable everyone to develop his resources. With
regard to domestic trade, he prohibited the organization of
centralized firms and broker shops and established the so-
called "marketing administration" and "brokerage exemp-
tion" so that the market could not be monopolized and goods
were enabled to move freely. His views also differed from those
of the Confucianists with regard to foreign trade. At that time
there was an embargo on coins that limited foreign trade
along the sea coast and the borders [of China], In spite of
opposition, Wang removed the embargo and encouraged im-
ports and exports. With respect to national defense, he urged

thoritarian concepts of the Ch'in and "reformer," and it is interesting to
Han dynasties. It is significant that note that the present leaders of the
he instituted the pao chia system to Kuomintang have reinstated the pao
curb internal disorder and to serve chia system (see China's Destiny, foot-
as a basis for military conscription of note, p. 134) and that Wang's the-
the farmers a system based on the ories are singled out for special men-
theory of strict authoritarian control. tion in this book.
Wang was in reality a Confucianist

CHINESE AND WESTERN EGONOMIG THEORIES 257

the conscription of farmers and established thepao chia system 4
to ensure that all the people would receive military training.

By the middle of the sixteenth century, the laws of the early
years of the Ming dynasty were largely ignored. The land
[of the poor and weak] had been annexed [by the rich and
powerful], taxes and service had become unequal, the cultiva-
tion of land by the frontier garrisons was inadequate, and
foreign aggression was an increasingly serious threat. At that
time, another great economist emerged, Chang Chiang-ling.
His economic theories involved the study of both the laws of
nature and of merits and gains, and included both Con-
fucianist and Legalist principles. He wrote: "Study that fails
to study the doctrines of life is not study; doctrines other than
economic are useless." He held that practical studies are
necessarily of practical use, and require a thorough knowledge
of the laws of nature and the economics of existence, the man-
agement of men and the adjustment of things. The chief
features of Chang's policy were: "Doing things right, listening
to no unconfirmed reports, encouraging the good, punishing
the evil, distinguishing the genuine from the bogus, discover-
ing the facts after hearing reports, and correctly giving re-
wards or inflicting punishment." His objectives were to in-
crease the country's wealth and build up a strong army.

The Confucianists for the most part criticized Chang's
policy as that of "might." In reply, he stated: "Confucius, in
discussing government, spoke first of adequacy of food and
soldiers. Emperor Shun [last of the legendary c Five Emperors']
instructed his twelve administrative assistants to take steps to
produce foodstuffs. Duke Chou in his political writings em-
phasized military power. People today are not familiar with
these fields of study and, instead of pursuing concrete studies,
indulge in vague discussions in high-sounding terms. They
take such terms as 'faith 3 and 'sincerity' and call them 'right/
and regard anything connected with 'wealth' and 'strength 3

4. See China* $ Destiny, footnote p. 134,

258 CHINESE ECONOMIC THEORY

as 'might. 5 They do not realize that the distinction between
'right 5 and 'might' and the distinction between 'faith' and
'gains' depend on human nature and not on ways and means.
We must recognize that 'benevolence' and c faith' are steps to
'wealth' and 'strength' they are basically interrelated. To
become wealthy and strong by acting in conformity with
man's nature is 'right: 3 to do so by using measures contrary
to man's nature is 'might.' That which is based on 'faith' is
'right' and that based on 'gains' is 'might.' So I say that the
distinction depends on man's nature and not on ways and
means." On the basis of this theory, Chang achieved notable
success in preventing further concentration of land ownership,
surveying farm land, equalizing taxes and services, developing
trade and reorganizing the military system.

The theories of the aforementioned economists differed, but
their origins and objectives were similar. None was based on
man's wants particularly on the wants of any special in-
dividual or individuals. All were based on man's nature and
all their objectives were national planning and the people's
livelihood. To attain these objectives all of them centered their
efforts on economic planning and control. They revised their
policies as conditions changed, but these revisions did not
alter the theories on which their policies were based. Their
policies centered around the land problem, and the methods
proposed for solving the land problem were all thought out
from the standpoint of agricultural-industrial and agricul-
tural-commercial relations. The monopoly of the market by
merchants and the annexation of land by the rich and power-
ful were interrelated each being the cause of the other. The
concentration of land holdings not only affected national
finances and the people's livelihood, but also conscription,
the military system, and national defense. For this reason,
Sun Yat-sen proposed the "Equalization of Land Rights"
policy during the time of T'ung Meng Hui 5 [United League
of Revolutionaries], The foregoing is sufficient to demonstrate

5. See China's Destiny, footnote p. 50.

CHINESE AND WESTERN ECONOMIC THEORIES 259

that the land problem occupies a central place in the economic
problems of China, and that land policy is basic in our eco-
nomic theories.

2. Western Economic Theories

Western economic theories may be divided into several
categories. Natural resources, geographic setting, climatic
conditions, historical background, racial spirit, and social
phenomena vary in different countries, and their economic
theories differ in consequence. The medieval agricultural
economics of Western Europe developed into modern com-
mercial-industrial economics during the seventeenth and
eighteenth centuries, and this gave rise at different times to
different theories, some giving more importance to commerce
and others attaching greater weight to agriculture. Those who
believed that commerce was the more important urged the
government to intervene for the protection of trade and the
development of industry. Those who emphasized the impor-
tance of agriculture advocated a laissez-faire policy and con-
centration on agriculture as the only productive enterprise.
The former were concerned with money, while the latter
stressed the importance of products. During the eighteenth
and nineteenth centuries, the Industrial Revolution occurred
in Western Europe. At that time, the English economist,
Adam Smith, wrote his Wealth of Nations [i 776] in which he
discussed both commerce and agriculture. The book won wide
popularity in Europe, and for a considerable period individ-
ualistic and laissez-faire economic theories were widespread.
Toward the middle of the nineteenth century, however,
German economic thinking developed into an independent
system. Friedrich List, in his System of National Economy,
opposed Smith's individualism and advocated a nationalist
approach. He also urged a protectionist policy in opposition
to Smith's theory of free trade. By the beginning of the
twentieth century, as a result of [Othmar] Spann's Foundation

260 CHINESE ECONOMIC THEORY

of Economics and other similar works, German economic theory
began to concentrate on [national] self-sufficiency in every
respect.

Though American economic thought had the same origin
as English, American economic theories advocated protection-
ist policies with regard to foreign trade and tended toward
planning in the domestic economy a tendency that was par-
ticularly marked after the First World War. Great Britain
alone continued to adhere to the theories of Adam Smith,
though these also had undergone many changes. During the
nineteenth century, David Ricardo's ec theory of economic
rent" exercised a greater influence than the Wealth of Nations,
and early in the twentieth century, the theories of mathe-
maticians like [Alfred] Marshall 6 displaced those of Adam
Smith and Ricardo, while the welfare economics of J. A.
Hobson also gained popularity. The economic theory of Karl
Marx, although he himself considered it to be a branch of
orthodox economic theory, is the product of German idealism
and differs in origin from English economic theory. Lenin's
theory was based on that of Marx, but his political and eco-
nomic theory and policies differed radically from those of
Kautsky. Before and after the Russian Revolution, the dis-
putes between Lenin and Kautsky represented the disagree-
ment between the proletarian politicians and the social demo-
crats among the Marxists, and indicated the fundamental
differences that existed between the Marxists of Germany
and of Russia.

Although Western economic theories differed, their origin
was similar. All of them sought to explain existing economic
phenomena in terms of human wants. When the Wealth of
Nations was published, the disputes among economists cen-
tered on the problem of value. Adam Smith maintained that
society is a collection of individuals, each of whom produces
goods for their exchange value on the market; the exchange

6. Alfred Marshall was not a math- and one of the greatest of the utili-
ematical^economist; he was the last tarian classical economists.

CHINESE AND WESTERN ECONOMIC THEORIES 26 1

value and the freedom of exchange of these goods being main-
tained by the market. He also held that money is only an ex-
pression of the exchange value of commodities; that eco-
nomics is the study of these exchanges and transfers; and that
economics, therefore, is the study of values or of exchanges
among a great number of people. Marx's Das Kapital opposes
the theories of the Wealth of Nations^ but it too starts with an
analysis of the value of commodities. Marx regarded capitalist
economy in terms of the sum total of commodities, and the
commodities themselves as a synthesis of the contradictions
between use value and exchange value. Thus his theories,
too, did not extend beyond the scope of the theory of value.
There are different views about the origin of "value" in
Western economics, but every school believes that it derives
from human wants. At the end of the nineteenth century,
the Austrian economists began to discuss "marginal utility"
on the theory that value depends upon human wants. For
example, to a hungry man, the first bowl of rice is more valu-
able than the second and third, and successive bowls will
approach "marginal utility" as their value decreases with each
additional bowl. This theory became popular in the United
States, and at the beginning of the twentieth century, the
American economist, J. B. Clark, expanded it to explain the
phenomena of interest, wages, and rent. Karl Marx's labor
theory of value is contrary to the "marginal utility" theory
and derives from the classical theory of value. According to
this theory, commodities possess use value because they are
able to satisfy human wants, and exchange value because
they are the products of a measurable amount of labor. For
example, five pieces of cloth are exchanged for one picul of
rice; this means that the amount of labor represented in five
pieces of cloth is equivalent to that contained in one picul of
rice. Even today, the Communists maintain this rigid theory
of value with little if any change. Although these two theories
are opposed to each other, their point of origin is the same
human wants.

262 CHINESE ECONOMIC THEORY

During the nineteenth century, the newly industrialized
states that were competing with the advanced industrial
nations of Western Europe adopted a protectionist trade
policy. Though American economic theories had the same
origin as those of England, the United States pursued a pro-
tectionist policy contrary to the free trade policy of Great
Britain. This tendency exercised a strong influence on the
development of economic theory. The German economist,
Friedrich List, was apparently influenced by American pro-
tectionism when he wrote his System of National Economy, and
with the end of the nineteenth century and the beginning of
the twentieth, the basis of industrial and commercial organi-
zation in American and European countries shifted from free
competition to monopoly and concentration. Following the
First World War, this trend became even more pronounced,
and the economic theories of various countries underwent
similar changes.

During this period, the American economist, Thorstein
Veblen, strongly criticized both individualism and Marxism
and endeavored to formulate rules for the economic develop-
ment of mankind based on human nature. He stressed the
unselfish characteristics of mankind, such as the love of
parents and the willingness to serve, as the basis for social
progress and racial existence. Lester Ward, the American
welfare economist, like Spann of Germany, criticized eco-
nomic theories that emphasized materialism and profit-
seeking. He argued that the value theory only pertains to
problems of personal property, and that the highest goal of
economics can be attained only on the basis of social welfare
theories. Similarly, Hobson, the English welfare economist,
criticized the post-Ricardian economists for their preoccupa-
tion with the production, accumulation, exchange and con-
sumption of wealth. In his view, such economics was merely
the science of commerce, and he argued that the objectives of
economics should not be limited to the increase of wealth;
that emphasis should also be placed on the rational control of

CHINESE AND WESTERN ECONOMIC THEORIES 263

labor and the equitable distribution and consumption of com-
modities, in order that society might gradually attain op-
timum welfare.

From the foregoing analysis, it is clear that the most recent
trend in Western economic theory is to seek an understanding
of human nature over and above mere human wants, and an
understanding of social organization over and above private
individuals. The scope of economics has thus risen above the
value theory, and the objectives of economics have similarly
transcended profit-seeking. I am confident that the present
World War will strengthen this trend, and that after the war,
Western economists will abandon their selfish individualism
and materialism and, starting from human nature and aiming
at the people's livelihood, will strive to attain the same goal
as that prescribed in the economic theories of ancient China. 7

7. All students of modern eco- seeking. Spann is generally regarded
nomics will recognize the total in- by Western economists as a "clerical
adequacy and striking inaccuracy of Fascist" who derived his theories of
this "analysis" of Western economic the complete subordination of the
theory and Western economists. It individual to the state from the ro-
does not indicate even a grammar mantic medieval concepts of Adam
school acquaintance with Western JMuller, an extreme German nation-
economic thought. It is a complete alist of the early nineteenth century,
perversion of the true facts in order Spann's "universalism," with which
to reach a conclusion that suits the he sought to oppose the "individual-
author's own purpose. As for the ism" of current economic theories, is
comments on individual economists, based on the idea of authoritarian
it is worth special note that the author control by a feudal state, translated
comes closest to accuracy in consider- into modern terms of "National So-
ing Othmar Spann a "praiseworthy" cialism" or Fascism,
critic of materialism and profit-

CHAPTER THREE

ECONOMIC DUTIES OF THE STATE
IN ANCIENT CHINA

THE principles of Chinese economic theory were not merely
the discoveries of a few scholars and great economists. They
also formed the basis of activity of great men of the past who
used their abilities and wisdom, and even sacrificed their lives
and property to put these principles into practice. 1 In addition
to studying the economic theories of ancient China, we should
pay particular attention to the actual constructive economic
activities of various dynasties, in order to understand thor-
oughly the principles of Chinese economics. The economic
duties of the nation are twofold to support the people and
to protect the people. Let me explain the constructive eco-

i . This seems as appropriate a place in the oppressive system of landlord-
as any to include a general comment tenant relations and for the develop-
on the author's discussion of "Chinese ment of industry free from the stran-
economics." In the first place, it is gling restrictions of bureaucratic con-
based on quotations from the classics troL Secondly, the fact that individual
and ancient dynastic histories, ar- Chinese scholars and statesmen com-
bitrarily removed from their his- mented on or dealt with the specific
torical context and applied to modern economic problems of their day does
conditions of which their authors were not support the conclusion that there
naturally ignorant. The dictums of exists a Chinese "school of economics"
Confucius, Mencius, and other ancient superior to modern or "Western"
sages, no matter how pertinent to economic theory, with its systematic
conditions in a feudal, agrarian so- and scientific analysis of economic
ciety, can hardly be regarded as ap- data. Here, as in China's Destiny, the
propriate guides to the solution of main object appears to be to glorify
modern economic problems. In fact, " ancient China," with its autocratic
it is impossible to avoid the conclusion government and feudal agrarian
that this glorification of the wisdom economy, together with the political
of "ancient times" is designed to and social concepts of Confucianism,
obscure the real nature of the present which provide an ideal philosophical
agrarian problem in China, and the base for a feudal-fascist state.
urgent need for democratic reforms

264

DUTIES OF THE STATE 265

nomic activities of ancient times from these two standpoints.

Men desire to live and thus have wants which give rise to
demands. There is a limit to the things that men need to
exist, but there is no limit to their wants and demands. Since
it is impossible to satisfy unlimited wants and demands with
a limited supply of goods, human conflicts develop. The land
problems of an agricultural community and the disputes be-
tween capitalists and workers in industrial centers are ex-
amples of such conflicts. Is there any way to end such conflicts?
Yes. Since human nature is naturally benevolent and loving,
there must be principles and methods for stopping them.

As an individual, every man wishes to listen to pleasing
sounds, look at beautiful colors, eat good tasting things, wear
comfortable clothing, live in a good house, and ride in good
vehicles. If he subjects himself to the "wants" and "demands"
of his ears and eyes, he is serving and is controlled by material
things. This is what the Analects of Confucius mean by saying:
"The mind of the small man is fixed on advantages. 35 It is
also what is meant by the statement in the "Great Learning 55
that "unkind men procure riches by bodily health, 55 which
means the same as "sacrifice one's life to gain possessions. 53
We recognize that money and possessions are necessities of
life, but it is extremely "unbenevolent 55 to die for possessions
or riches simply because our ears, eyes, mouth, and body have
been attracted by them. Appetites must be controlled by the
mind, which is able to think, to consider, and to make dis-
tinctions. A man should consider his wants: which cannot and
which should not be satisfied. He should also consider material
possessions: which are not obtainable, and which it is not
desirable to obtain. Furthermore, he should learn to differen-
tiate between the things that should be consumed and those
that should be saved, and between those that are for the good
of the public and those that are private and harmful. If a
man does all these, his activities will be well planned and he
will be able to save money and use it to expand his enterprises.

266 CHINESE ECONOMIC THEORY

In any group of men, personal demands will, unless lim-
ited, result in disputes. Hsun Tzu 2 in his "Chapter on Rites"
stated: "Everyone from birth has wants. If he fails to satisfy
them, his desires persist. If there is no fixed limit to personal
wants, strife will arise. Fighting will disturb order and in [the
course of the] disturbance, commodities will be scarce. The
late King, fearing that such disturbances might occur, enacted
rules for the distribution of things in such a way as to satisfy
wants, meet demand, prevent the government from exhaust-
ing [the supply of] goods, and protect goods from being the
slaves of individual wants, in order to balance the two [de-
mand and supply]." This explains clearly how a group of
men should be organized. The mind should control the ap-
petites, and there should be rational machinery to enable each
individual to sustain his life. A government, therefore, should
be organized to satisfy the people's wants on the one hand, and
to restrict them on the other. Once such rules are established
and the necessary limitations made clear, the people will no
longer find it necessary to resort to fighting to satisfy their
wants, and society will not be impoverished for failing to
satisfy the wants of individuals.

Aside from meeting or restricting human wants, there is a
need for a government that manages the people's affairs.
This is the basis of the philosophy of national economics.
European laissez-faire economics holds that the government
ought not to interfere with the people's economic activities,
and advocates economic freedom and lack of restraint. The
Marxists, on the other hand, believe that the government
must be controlled by the proletariat to eliminate personal

2. Hsun Tzu was a philosopher of ment of law rather than a government
the Chou dynasty, living in the fourth by "benevolence." The fact that Hsun
century B.C., who differed with Con- Tzu's teachings are emphasized, to-
fucius and Mencius in believing that gether with those of Wang An-shih
the principle of authority should be and Chang Chiang-ling, supports the
based not on human "morality" but conclusion that the author has selected
on the legal power of the state. Hsun classical sources that justify the doc-
was thus the forerunner of the Legalist trine of authoritarian control,
school, which believed in a govern-

DUTIES OF THE STATE 267

economic freedom. From the standpoint of Chinese economic
principles, neither is right. 3 If a government does not impose
restrictions on, or devise plans for the people's economic ac-
tivities, and if it allows the people to drift into conflicts, the
result will be social disorder and national poverty. If the gov-
ernment fails to control the people's wants and to protect
their livelihood, it does not fulfill its duties; the people will
not be able to live a comfortable life and there will be no in-
crease in production. The following paragraphs discuss con-
crete activities to be undertaken by the government to meet
or restrict the people's wants.

/. Satisfying the People's Wants

Confucius advocated: "Adequacy of food," and "first sat-
isfy, then enrich." Mencius stated: "In the control of property,
they should be able to support their parents, wives and chil-
dren, to enjoy a happy year without fear of hunger, and to
avoid death from starvation in years of poor harvest." Hsun
Tzu said: "Everything under the sun and on the earth should
be best used to support the people and make them happy."
From this it is clear that the economic theories of ancient
China considered the duties of the government to be of a
positive nature, on the basis of which the governments of
ancient times developed comprehensive economic plans and
policies, of which the following are some of the most impor-
tant:

Land Holding: The production of the farmers depends on
land. The economic theory current in ancient China was that

3. This conclusion appears over were something magic and decisive

and over again in all current Kuomin- about not being like something. Aside

tang literature. China* s Destiny fre- from the fact that the characterization

quently points with pride to the fact of laissez-faire economics and the

that China's future does not lie in theory of the Soviet State is inac-

imitating either the West or the curate, the conclusion that follows

Soviet Union. Even such a liberal from this reasoning, as throughout

Kuomintang leader as Sun Fo often the book, is for the adoption of a

repeats this shibboleth, as if there system of benevolent autocracy.

2 68 CHINESE ECONOMIC THEORY

everybody should have land to cultivate. Mencius repeatedly
said: "Five mow of house, a hundred mow of farm land." A
land allotment system was enforced by the government, of
which examples are the "well-land" system of the Gh'un
Ch'iu period and the cc equal-land" system after the Wei and
Tsin dynasties [220-420]. After the T'ang dynasty [618-906],
the "equal-land" system gradually disappeared, but certain
features of the land allotment system continued.

Water Conservation: Irrigation is necessary for farming. To
irrigate all the farm land requires planning and construction
on the part of the Government. Emperor Yu [legendary
founder of the Hsia dynasty in 2205 B.C.] was the first and
greatest economist in ancient China, and his major contribu-
tions were water conservation and construction [of irrigation
works], Confucius said: "I cannot but laud Yu. He main-
tained a poorly built palace and gave all his energy to water
conservation." Since the days of Yu, Chinese history contains
a long record of conservation works and irrigation control.
Why should water conservation and construction activities
related to it be undertaken by the Government? Conservation
plans must aim at the benefit of all farmers and not merely
that of a limited number of persons especially, they should
not be solely for the good of one or two wealthy gentry. 4
Unless consideration is given to all farmers in the area, the
building of dikes and the demarcation of farm land to be in-
cluded will inevitably cause the soil and sand to block the
river, or to accumulate on the river bed, thus causing a flood
in the lower reaches. With streams containing a limited
quantity of water, the distribution and storage of water re-
quires control by dams* Since fishing and irrigation are apt
to come into conflict, there must also be rules to restrict fishing
in order to facilitate irrigation and vice versa. Also, since the

4. The author fails to note that to enable the bureaucracy and the
the primary purpose of these "benev- wealthy gentry to collect their un-
olent" water-conservation plans was earned tribute of grain.

DUTIES OF THE STATE 269

needs of irrigation and transport sometimes conflict, there
must be a system to preserve enough water in the rivers to
permit transportation and also to restrict transportation to
facilitate irrigation. This has been the practice among the
people, and there have also been detailed ordinances and laws
enacted by the Government. But [present-day] students of
economic principles and policies have been confused by West-
ern theories and are unable to understand practical eco-
nomics, much less to further these basic economic principles.
This is very much to be regretted.

Granary Storage: To support the people, it is essential to
accumulate savings. The Book of Rites advises: "Save one
year's crops from every three years' harvests." The ancient
sages also said: "Kings rely on their people, and people rely
on food." The governments of the various dynasties of China,
therefore, devoted much thought to the storage of grain, and
the national wealth was determined by the amount of grain
stored in granaries. This theory is opposed to the economic
theories advocating free trade. The free-trade economists
consider the export of surplus products and the import of
money as national wealth. Not until the present time have
foreign nations understood the necessity of developing and
saving resources as a means of increasing national wealth.

Communications: Agricultural products must be exchanged
for other commodities, and this exchange depends on trans-
portation. China is a continental country and her mountains
and waterways run mainly from west to east. There is no
natural waterway between the south and the north. On the
plains north of the Huai River, communications are hampered
because the Yellow River is easily flooded. Under these geo-
graphic conditions, the construction of transport facilities and
the care with which communications were systematically pro-
tected must be attributed to the greatness of our ancient
rulers. This has enabled China to become a great and unified
nation. The roads built during the Ch'in, Han, Sui, and

270 CHINESE ECONOMIC THEORY

T'ang dynasties began at the principal cities and spread in
all directions like a spider's web. During the period of the
"Warring States/ 3 human labor was employed in digging
the Grand Canal, which was connected with the Yangtze,
Huai, Yellow, and Sze rivers during the Sui and T'ang dy-
nasties. The canal is still the most famous engineering project
in the world., and we cannot but praise our ancestors for the
achievement of such a great work by an agricultural society.
Climate and Soil; In ancient times, the preparation of the
calendar was an important task. We know that agricultural
work must proceed in accordance with weather conditions,
and in the past, the governments not only supplied the people
with calendars but also prepared agricultural books giving
the farmers directions for each season. We also know that soil
conditions are^a relatively new field of study in Western coun-
tries. But if we would only read the writings of Emperor ^Yu
and Kuan Chung, we would realize that detailed soil research
was carried on in ancient China. The governments of various
dynasties taught the farmers how to select crops according
to the productivity of the local soil. All these facts can be
found in our historical records.

3. Restricting the Peopled Wants

In addition to advocating "adequacy of food," Confucius
also urged the equalization of wealth, saying: CC I am not
worrying about shortage; I am worrying about unequal dis-
tribution." Similarly, Mencius advocated "support for the
people" on the one hand and "economic supervision" on the
other. According to him, "good government must begin with
economic supervision." Since that time, the scholars of various
dynasties have .constantly discussed the demarcation and dis-
tribution of land, and the governments have issued various
ordinances connected with this problem. The most important
points in this connection are as follows:

Equalization of Property: The equalization of land holdings

DUTIES OF THE STATE 2jl

was enforced on numerous occasions in ancient China. 5 When-
ever the concentration of land ownership occurred on a large
scale, there was always a movement for the equalization of
property. History teaches us that the equalization of land
holdings by compulsory means is certain to fail, e.g., the
"land order" of Wang Hang 6 and the "farm land system' 5
of the T'ai~p 5 ings 7 both failed when an effort was made to
carry them out. A detailed study of history reveals that the
land problem cannot be solved by distributing the land by
force. We must first support the people, for unless and until
the farmer's livelihood is improved and farm production in-
creased, no policy for equalizing property will be successful.
The statesmen of ancient China therefore adopted the fol-
lowing measure.

< Equalizing Taxes: The ancient rules and ordinances with
regard to the tax system in China called for the allotment of
land to male citizens and the collection of taxes according
to the number of allotments. In subsequent periods, the land
was not allotted in this way, but taxes continued to be levied
on the basis of the number of persons. The equalization of
taxes therefore required that farm land be surveyed. In the
late years of the Ming dynasty, the tax system was changed,
and taxes were computed on the basis of the area of farm land.
This also required a land survey. The methods used for sur-
veying land were "owners' evidence" in the Han dynasty,
resembling the present day "applicant's report;" Wang An-

5. It would be more "accurate to a family with eight or less male mem-
say that land was periodically redis- bers, on the grounds that the ancient
tributed, as a result of antidynastic ching for eight families consisted of
upheavals, changes of dynasty, and 900 mow. Wang ordered that all fam-
the emergence of a new ruling bu- ilies owning more than 900 mow
reaucracy. should give the surplus to neighbors

6. Wang Mang, a member of the or relatives, but this action was op-
Empress's family, usurped the throne posed by all the wealthy and power-
of the Han rulers during the period ful families, and he was forced to re-
A.D. 9-25, but failed to found a dy- scind the law and decree that land
nasty. The "land order" referred to could once more be freely bought and
was an attempt to restore the ancient sold,

"well-land" or ching-t'ien system by 7. See China's Destiny, footnote, p.
limiting landholdings to 900 mow for 194.

27 2 CHINESE ECONOMIC THEORY

shih's "square land" calculation, similar to the present "land
survey 55 ; and the method developed by Chu Hsi 8 which was
comparable to the current method of checking applicant's
reports with the survey reports of local officials. These various
methods have both advantages and disadvantages, but can
in no way be compared with the Father of our Country's
method of equalizing land rights which is excellent in every
way.

Transport: The collection and distribution of agricultural
products depend on merchants, but if the merchants are
allowed to manipulate prices, this will harm either the farmers
or the people. To prevent this, there was developed in ancient
times the method of equalizing supplies by transport. The
general theory was to transport goods from any locality where
prices had dropped because of a surplus, to places where
prices had risen because of shortages. This method was suc-
cessfully adopted by Liu Yen in the T'ang dynasty, whose
theory was to "facilitate the transport of goods as a fundamen-
tal principle, and to use the government's power to devise a
general plan for the distribution of goods that would deprive
the merchants of all power and opportunity to manipulate
prices. 35

Government Monopolies: An agricultural community endeav-
ors tc be self-supporting, but there are certain commodities
that cannot be produced everywhere. Salt, for example, is a
necessity that can only be made by using sea water in the
southeast or the water of the salt wells in the northwest. If
salt is marketed by merchants, the farmers will be subjected
to extortion. The salt laws have been changed many times
since ancient days, but have always returned to the principle
of government monopoly. Similar monopolies were also es-
tablished for iron and tea.

Rural Credit: If the financing of agricultural production de-
pended on the merchants, it would involve high interest rates.
Ancient laws, therefore, placed strict restrictions on the rate

8. A leading Confucianist scholar and statesman of the Sung dynasty.

DUTIES OF THE STATE

of interest on loans, and many statesmen and scholars dis-
cussed the theory that the Government and not the merchants
should provide rural capital.

In summary, the economic duties of the Government are
twofold: to satisfy the people's wants and at the same time
to restrict them. The former involves positive support, and the
latter precautionary control. The former may be regarded as
an act of " benevolence 3 * and the latter an act of "justice."
It is thus clear that benevolence and justice were not vague
teachings in ancient times. The application of these prin-
ciples in social, political, and economic organization will re-
sult in correct systems and policies.

3. Protecting the People

The economic duties of a government are to support the
people the people's livelihood on the one hand, and to
protect the people national defense on the other. The
people's livelihood and national defense are a single problem.
In actual practice, the ancient land system was in itself a
system of conscription a very important point that should be
clarified. Confucius repeatedly stated: "Adequacy of food
and sufficient soldiers;" Mencius declared: "In economic
control no reference is made to conscription," meaning that
the land system was the conscription system. The Book of
Rites provides a very clear explanation of the imperial policy
with regard to this question. To combine soldiers and farmers
has been a traditional ideal in Chinese history but the motives
may differ. There is the kingly way or the tyrant's way.
Hsun Tzu said: "To cherish the people is the way of the king;
to cherish the soldiers is the way of the tyrant." This means
that to support the people with land is "right," while to sup-
port soldiers with land is "might." The Confucianists ad-
vocated the former, while the Legalists supported the latter
theory. If the people are supported with land, this will protect
the farms by making all the people themselves soldiers the

274 CHINESE ECONOMIC THEORY

way of "right" To support the soldiers with land will enable
them to fight vigorously, but will inevitably impoverish the
people t h e way o f "might/ 5 Mencius on several occasions
stated that "benevolence is invincible/' and that "good gov-
ernment must start with economic supervision." Economic
supervision was the foundation of conscription. Once eco-
nomic supervision is established, all the people will become
soldiers and will be able to "take up arms to beat the soldiers
of the Ch'in and Ch'u kingdoms 55 [a metaphorical phrase
signifying any strong enemy]. These ancient teachings are
very direct, very definite, and not mere abstract generalities.
Since ancient times, these concrete systems and policies
have been discussed. The "well-land 55 system, though it had
its strong supporters, was never adopted after the Ch'un-
Ch 5 iu period. Those who tried to reinstitute it failed. Now
that China, an agricultural country, wishes to become an
industrialized country, our agricultural policy is to equalize
land rights and improve agricultural techniques. Plows and
harrows should be gradually replaced with farm machinery
and the present small, parcelized farms should be consolidated
into collective farms in order to save labor and increase pro-
duction. There are already co-operative organizations of
various kinds in China, as well as the custom of labor exchange
during the busy seasons [one man with special skill doing the
work for another, and vice versa], and it should be easy to
develop such co-operation still further. It is not necessary to
go back to the "well-land 55 system, but the collective farm 9
system might easily be adopted in its place. With regard to
national defense, the farmers of each unit of nine farms [under
the "well-land" system] made up a military unit in ancient
times. In the future, the farmers of each collective farm could
be considered as a group of soldiers assigned to cultivate the

9. It must be noted the term "col- countries. It signifies purely and

lective farming" is not used in the simply a modernized version of the

same sense as it is in Soviet Russia, ancient feudal system of economic-

nor does it correspond to capitalist military village units,
or co-operative farming in Western

DUTIES OF THE STATE 2^5

land. Thus, a production unit would also be a military unit.
This combination of the land and conscription systems could
be realized by the adoption of a system for its practical en-
forcement.

The interrelation of national defense and the people's
livelihood is obvious from the foregoing explanation. History
teaches that the combination of the two makes a country
strong and their separation makes it weak. That this has al-
ways been true is demonstrated by the following analysis of
three periods: (i) The conscription system of the Han dy-
nasties [207 B.C.-A.D. 221], though not precisely an enforce-
ment of the principles of "supporting the people/ 3 was an
ordinary militia system. Every subject was compelled to do
military service for a period of two years. "Even the premier's
son must do garrison duty on the national frontier. 3 ' Since
most of the people were farmers at that time, the soldiers were
chiefly farmers, and the government was very successful in
military conquests. (2) The Southern and Northern Empires
[A.D. 316-589] and the Sui and T'ang dynasties [A.D. 589-
907] adopted the "equal-land" and "farmer-soldier" systems,
but the characteristic features of these systems had already
altered. After the middle of the T'ang dynasty, the army was
composed chiefly of the sons of noble families., who enlisted
to escape paying taxes and performing public services, with
the result that pride, idleness, and slackness developed in the
ranks. Ever since then, the farmer-soldier system of China
has been a failure. The military conquests of the early years
of the T'ang dynasty and the division of the empire by high-
ranking military officers in the later years of the T'ang il-
lustrated the results of combining and of separating the farm
and conscription systems. (3) After the Sung dynasty, the
mercenary soldier system was adopted, and the farmer-soldier
system disappeared. The old system of training the people as
soldiers did not endure because land ownership had become
too concentrated, despite efforts to restore it [redivide it]
by Wang An-shih, T'ai Tsu [first Emperor of the Ming dy-

2^ CHINESE ECONOMIC THEORY

nasty, 1368-98], and Chang Chu-cheng [Minister of the
Ming dynasty]. The fact remains, however, that the recapture
of Linchow by Wang An-shih 3 the defeat of the Japanese in-
vaders by General Wei Chi-kuang [commander of the Ming
armies that defeated Hideyoshi in Korea, 1592-8], and
the suppression of civil war by Tseng Kuo-fan 10 were accom-
plished chiefly with the aid of farmer-soldiers. But with social
economics and national defense economics separated, the
country was inevitably weakened and was subject to constant
aggression from abroad.

Since modern wars are fought by the entire nation, we
must re-establish the system of combining soldiers and farmers.
Only in this way will there be an ample supply of recruits and
reinforcements. Only in this way will the people realize that
they are fighting for the protection of their own homes. Only
in this way will we be able to fight a prolonged and extensive
war. Henceforth, we must strictly enforce this system, not
only to correct the mistakes made in the Sung and Yuan dy-
nasties, but also because this system is essential to enable the
nation to fight a modern war.

10. This reference is to the T'ai- reserves, since this system had not

p'ing Rebellion. It is incorrect to existed since the early T'ang dynasty,

refer to Tseng Kuo-fan's troops or Furthermore, as noted previously, the

those of Wang An-shih and Wei Chi- mercenaries that were primarily re-

kuang as "farmer-soldiers" in the sponsible for the defeat of the T'ai-

sense of farmers trained as military p*higs were foreign-led.

CHAPTER FOUR

PRINCIPLES OF THE "MIN
CHU I" THE PEOPLE'S
LIVELIHOOD

THE traditional economic principles of former dynasties may
be summarized as follows:

Supporting the People: The basis of economics is human nature
and its fundamental purpose is to support the people. Sun
Yat-sen said: "The Principle of the People's Livelihood is
designed to support the people, while capitalism seeks profits."
He also said that "social progress should be measured by the
people's livelihood and not by material production." In other
words, the basic principle of Chinese economic theory is that
commodities are valued not for their own sake but for the
sake of the people. This is what is meant by the saying, "be
kind to men and have regard for things," which also refers
to the people's livelihood.

A Planned Economy: Inasmuch as economics is based on
human nature, it calls for "supporting wants and supplying
demand" on the one hand, and on the other, for developing
man's rational nature and mental powers so that he may
distinguish between and restrict his wants. Economic develop-
ment must therefore be planned, and that planning must rest
on a basic theory. The basic theory of the Principle of the
People's Livelihood is to develop national enterprises and
aid the people in order to improve their livelihood, while at
the same time controlling private capital and equalizing land
ownership in order to prevent the capitalistic control of the
people's livelihood. Chinese economic principles are not those
of laissez-faire, nor of promoting the class struggle. They call

277

278 CHINESE ECONOMIC THEORY

for economic plans to "nationalize capital for popular enjoy-
ment 55 to realize the ideal of [government] "for the people/ 3
whereby China may become a wealthy, healthy, and happy
state.

Combining the People's Livelihood and National Defense: Since
the basic purpose of economics is to support the people, the
Government should develop natural resources, improve trans-
portation, and accumulate national wealth, and at the same
time, make certain that the farmers and the wealth of peace
time will be transformed into soldiers and military supplies in
time of war. Only if a program of economic development is
based on the people's livelihood will it suit the needs of na-
tional defense.

/. Laissez-faire and Marxism

Only if China's economic reconstruction is based on these
three principles will she achieve success. There are some who
do not understand the principles contained in the Principle
of the People's Livelihood, and who have proposed different
plans in accordance with Western economic theories. Without
exception, their proposals are unsuited to the present needs
and social structure of China. The most important defects and
disadvantages in their proposals may be summarized as
follows:

The laissez-faire economists propose that China should^ be
industrialized according to the laissez-faire policies and free
trade doctrines of Western Europe, on the ground that only
in this way can industrial progress be facilitated. They fail to
realize that the laissez-faire theory is based on a system of free
competition such as developed in Western Europe after the
First Industrial Revolution. At that time, the industries of
England, France, and other countries enjoyed markets both
at home and abroad, and as a consequence, English and
French manufacturers supported the policy of free competi-
tion and free trade as the best means of achieving industrial

MIN SHENG GHU I 279

prosperity. Subsequently, Germany and the United States
became strong industrial powers and began to compete with
the Western European nations. As this competition became
more and more severe, free trade was replaced by protection.
In order to strengthen their competitive power abroad, the
entrepreneurs combined the strength of individual factories
producing similar goods by forming trusts or cartels, and even
centralized this power through government operation of in-
dustry. This trend has been called the Second Industrial
Revolution. And today it may be said that there is basically
no reason for laissez-faire economics.

! Because she has been subjected to the bondage of the un-
equal treaties and is industrially backward, China cannot
compete with the advanced industrial nations. She must
therefore adopt a protectionist policy with regard to foreign
trade, and a policy of economic planning with respect to her
industrial development. Private capital alone will not be suf-
ficient to operate on a large scale, or to compete with the
trusts and government-operated enterprises of foreign nations.
This is the great weakness of laissez-faire economic theory, and
it is this that makes it unsuitable for China. Having long ago
recognized this defect, the Father of our Country said: "The
tendency of modern economics is to substitute economic con-
centration for free competition." His plan for dealing with
this situation was: "In China, two revolutions must be
launched simultaneously: the replacement of hand labor by
machinery, and unification under government-ownership."
Only if this policy is adopted can Chinese industry hope to
achieve unimpeded progress.

The Marxists advocate the overthrow -of the capitalists by
class struggle and the organization of a Communist society.
This theory is based on a belief in class selfishness a funda-
mental error. In pointing out this error, Sun Yat-sen said:
"In the past and present, man devoted his energies to the
sole purpose of maintaining existence. Since man seeks un-
interrupted existence, there must be unceasing social prog-

28O CHINESE ECONOMIC THEORY

ress. Thus the established rule of social progress is the effort
of mankind to maintain existence, which is the real reason for
such progress. Class struggle is not the cause of social progress,
but a disease arising in the course of social progress. The
reason for this disease is the failure of certain men to maintain
their existence, and for this reason wars occur. 35 On the basis
of this analysis, Sun Yat-sen described Karl Marx as a social
pathologist rather than a social physiologist.

Marxists consider labor the only important factor in pro-
duction. [They hold that] all value is produced by labor, and
that profits and land rent are surplus value produced by
labor. They do not recognize that manpower and land are
basic requirements of production, and that manpower in-
cludes mental as well as physical strength. Industrial goods
are not only the product of the labor of factory workers,
technicians, and managers, but also of the inventors and
manufacturers of the machinery used in the factories con-
cerned. Similarly, the profits of industry are not only due to
the labor of the workers, but also to the management of the
enterprise, the blueprints of the technicians, the transport of
the commodities by rail or highway, and the activities of
commercial houses. Each step in the process of the production
and consumption of goods is a source of industrial profit. Sun
Yat-sen declared: "The surplus value of industry should not
be attributed solely to the labor of workmen in the factory.
All members of society possessing usefulness or ability have
more or less, directly or indirectly, contributed to production
or consumption. 3 ' We must recognize that each man's ac-
tivities are only a part of the activities of all members of
society, and that the production of each article is the result of
the activities of all members of society. In view of this, Sun.
Yat-sen stated: "Social progress is due to the harmony of a
majority of economic interests in society and not to their
conflict. The harmony of economic interests in society works
for the good of the majority of the people. Only if the majority
of the people receive the benefit will there be social progress."

MIN SHENG CHU I 28 1

As for wars among mankind, the greatest wars are those
between nations and not between classes. In the First World
War, the workers of the European countries rejected the
resolution of the Second International and fought for their
respective countries. In the present World War, not only are
the workers of Britain and the United States fighting for their
own countries*, but Soviet Russia is co-operating closely with
Britain and America. Thus conflicts between capitalism and
socialism have not harmed the united front among various
nations because every man naturally wishes to protect his
own existence, and the existence of an individual is insured
by and depends on the strength of his nation. This may be
explained from two standpoints, as follows:

First, from a political point of view, if one nation is con-
quered by another, the laborers as well as the capitalists suffer
the fate of national destruction and racial extinction. This
explains why [government] "of the people" precedes "for the
people." No matter what theories the workers or the labor
parties of various countries may claim to have adopted, they
are all aware of this point. Therefore they abandoned the
class struggle and joined forces [with the capitalists] when
their countries were at war. Furthermore, in the countries
defeated and conquered [by Germany] during the present
European War, the workers, like the capitalists, were en-
slaved by the "Fascists." To engage in class struggle at such
a critical time simply means the destruction of one's own
country. Only a fool would think that it is unnecessary for a
nation to use all its energies to lay the basis for economic re-
construction while it is fighting for national existence, or that
the proletariat can, after national destruction, seize the oppor-
tunity to fight a revolution for the attainment of proletarian
government. 1

Second, from the economic point of view, the industrial
development of a country enables the capitalists to make

I. It would be interesting to know statement with the Russian Revolu-
tiow the author would reconcile this tion of 1917.

282 CHINESE ECONOMIC THEORY

profits, increases employment opportunities, and improves
the people's livelihood. If industry does not progress, or if it
declines, or is completely destroyed, not only will the cap-
italists have no factories to operate, but the workers will have
no factories in which to work. Today, industrially backward
nations are suffering because of their undeveloped industries,
while the industrially advanced nations are threatened with
the danger of total industrial destruction. If a nation is de-
feated in war, all industries will be destroyed by the enemy.
The workers will have no work to do; they will be unemployed
and unable to earn a living. For this reason, all workers re-
gardless of their nationality, fight for their own countries.
This is a definite, self-evident fact. Karl Marx failed to under-
stand this basic feature of human nature and saw only tem-
porary defects. His theory is a medicine that does not suit the
disease, and Chinese who believe in his theory suffer from the
symptoms of an imaginary ailment.

China is suffering because her industry is undeveloped. As
Sun Yat-sen said, the economy of the nation consists of poor
and poorer people. No real class struggle can exist between
the poor and the poorer. In future, after the abolition of the
unequal treaties and the achievement of a free and inde-
pendent status, if industry in China should develop according
to laissez-faire principles, it is probable that industrial develop-
ment would be followed by class conflicts or even class strug-
gle. But China does not intend to adopt laissez-faire principles.
She has adopted an economic system based upon the Prin-
ciple of the People's Livelihood, which aims at the simul-
taneous achievement of the social and industrial revolutions.
The Principle of the People's Livelihood is based on human
nature and its objective is the people's livelihood. On the
one hand, national industries must be developed, and on the
other, private capital must be brought under control. Thus
there will be no real motive for class struggle, since the
workers will only enjoy increasing opportunities for employ-
ment and the improvement of their livelihood, and will not

MIN SHENG GHU I 283

suffer from capitalistic oppression. The industrialization of
China can succeed without suffering from the effects of the
cc class struggle," as the Communists call it.

Another important feature of the Principle of the People's
Livelihood is the equalization of land rights. This is the
correct way to solve the land problem, which has a long
history in China. Chinese history teaches us that the land
problem cannot be solved by force, and that efforts to solve
it by force or compulsory means are bound to fail immedi-
ately. Chinese economic theory regards man as basic. "Where
there are men, there is land' 3 means that land has no value
by itself, and that its value is created by adding manpower
to it, i.e., farming or cultivation. In sparsely populated areas,
everyone has sufficient land and no land problem arises, but
such areas will gradually diminish in China. In densely popu-
lated areas, or in areas where industry and commerce are
prosperous, agriculture will be seriously affected by industry
and commerce. Because of that effect, there is a natural
tendency toward the sale and purchase of land. Rich men
invest their money in the purchase and sale of land, thus
causing an unequal distribution of land ownership. Since the
feudal system of China was destroyed several thousand years
ago, the unequal distribution of land is not inherited from
feudalism, but must be attributed to the influence of industrial
and commercial economics. Unless attention is paid to the
relations between agriculture and industry, and between agri-
culture and commerce, any forcible equalization of land
ownership will not last long. After a short period, the dis-
tribution will again become unequal. Will not a poor farmer
who kills a rich farmer today become rich tomorrow? Such
[forcible] methods misinterpret the nature of the land prob-
lem, because they are based on material conditions and not
on human nature. If such a policy is followed, a repetition of
the failures of history is certain.

Why should the land problem be considered in terms of
agricultural-industrial relations? The characteristic feature of

284 CHINESE ECONOMIC THEORY

the ancient Chinese economy may be expressed by the saying:
"Men cultivating, and women spinning." In every family,
agricultural and industrial production were combined, and
this combined agricultural and industrial economy was self-
supporting. With the exception of salt, iron, and other com-
modities of a special nature, farmers did not have to buy goods
originating outside the locality. For this reason, the monopoly
of the sale of salt and iron was an important economic prob-
lem in ancient China. In modern times mechanized industry
has gradually affected the [self-sufficiency of the] farms be-
cause many forms of industrial production have been taken
over by factories in the cities. The self-supporting economy of
the rural districts has been gradually destroyed, and in order
to buy goods from outside, the farmers have found it necessary
to sell their products. Thus the commercial economy has
tended to dominate the rural economy. As mentioned above,
many economists of various dynasties studied the relation
between agriculture and commerce and worked out policies
to deal with this problem. What must be emphasized here is
that Chinese commercial capital has always been invested in
land. The more prosperous the commercial market, the more
land has been concentrated in the hands of a few individuals.
Instead of investing in industry, commercial capital has con-
tinued to be invested in land. In cities, the accumulation of
capital results in hoarding of goods; in rural districts, in the
acquisition of land.

The land policy embodied in the Principle of the People's
Livelihood starts with the stabilization of land values. It
prohibits the investment of commercial capital in land and
this prevents land from being an object of speculation. The
inability of rich men to invest their money in land will auto-
matically equalize land ownership and will prevent these
equalized land rights from becoming unequal. In addition
to enforcing this policy, the Government should also take the
necessary measures to finance agricultural production, adjust
the prices of farm products, and improve agricultural tech-

MIN SHENG CHU I 285

niques and the farmers' livelihood. In this way, the land
problem will be solved.

Once the land problem is solved, commercial capital will
no longer be invested in land, but will be invested in industry
instead. The industrial policy expressed in the Principle of
the People's Livelihood is to "abandon hand labor for ma-
chinery, and to unify industry under Government owner-
ship." Government-owned industry will need the raw ma-
terials produced in the rural districts and will also need the
rural districts as markets for manufactured goods. Thus the
prosperity of large-scale Government-owned industry and
the development of agriculture are interrelated and not con-
tradictory.

To summarize the foregoing analysis, we may say that the
land problem should be considered in terms of agricultural-
industrial, and more especially of agricultural-commercial
relations in order to achieve a real solution. The solution of
the land problem will not only put an end to commercial
profiteering and the enlargement of land holdings, but will
also facilitate the industrialization of China and lay a founda-
tion for national defense and future constructive enterprises
related to the people's livelihood.

Sun Yat-sen commented in detail on the economic theories
of laissez-faire and of Marxism. Everyone should study this
question thoroughly and ponder it carefully. The above are
only a few of the more important points.

2. Sun Tat-sen's "Industrial Plan"

Since the people's livelihood is the basis of all our economic
thinking, economic planning and the identification of the
people's livelihood with national defense are fundamental
features of the Principle of the People's Livelihood. To de-
velop this statement in greater detail: Sun Yat-sen adopted
the essence of the industrial, social, and economic theories of
the West, corrected their errors, remedied their shortcomings,

^86 CHINESE ECONOMIC THEORY

and transformed them to suit the principles of Chinese eco-
nomics, so that they emerged as the ideals of the Principle of
the People's Livelihood. On the basis of these ideals, Sun Yat-
sen wrote his great and all-inclusive "Industrial Plan/ 3 which
is the basis of the national-defense economic plans of China.
It is highly regrettable that he only drafted an outline of the
Ten- Year National Defense Plan and was unable to complete
the text of the plan itself for our guidance, but the principles
and measure of national-defense economics may be deduced
from his "Industrial Plan."

The scope of the "Industrial Plan 5 ' is more extensive than
the highway and water-conservation plans of the T'ang and
Han dynasties, and its outline is more detailed than the eco-
nomic laws and ordinances of those dynasties. Unfortunately,
there seem to be very few people who really understand the
essence of the Plan, so I wish to make some simple explana-
tions at this point.

In the first place, the basic idea of the "Industrial Plan 55 is
to formulate measures for the economic development of China,
with her vast land area as a base and with prosperous sea
harbors as outlets for exports. Foreign trade is to be carried
on via the seaports [while trade in the products of] agriculture
and mining should be conducted overland. In time of peace,
trade with foreign countries is to be carried on through the
seaports, while in time of war the inland area will serve as a
base for [military] operations. The basic idea of combining
the people's livelihood and national defense is especially
evident and important in the Plan. And if one reads the Plan
from the standpoint of this combination, one will find that
each section and each category contain measures of far-
reaching importance.

Second, the "Industrial Plan" considers communications,
agriculture and mining as the basic economic enterprises.
People in general refer only to industry when they discuss the
industrialization of China. They fail to recognize that in
order for China to become industrialized, it is first necessary

MIN SHENG GHU I 287

to develop the resources of the interior, carry out rural eco-
nomic reforms, improve the farmers' livelihood and make the
rural districts a market for industrial products. In order to
develop the resources of the interior, it is necessary to build
railways and increase the number of waterways throughout
the country. In order for China to become industrialized, it
is necessary to develop agriculture and mining, since these
are the main sources of raw materials for industry. Once com-
munications, agriculture, and mining have been developed,
there will be raw materials for industry and a market for
finished products. Naturally, economic conditions will then
be improved.

Third, the "Industrial Plan" emphasizes the equal dis-
tribution of the population. The trend toward the concentra-
tion of the population in the southeast during the past century
is much more serious than it was during the Sung and Ming
dynasties. The "Industrial Plan" calls for the emigration of
the people in the southeast to the northwest and southwest in
order that the population of the country may be equally dis-
tributed. Special emphasis is given to the necessity of in-
creasing the population in the northwest and southwest in
order to make these areas the bases for armed resistance and
national development.

Fourth, the industry to be developed under the "Industrial
Plan" should of necessity be distributed among the farms and
mines. According to the Plan, the interior should not only
possess modern means of communications and prosperous
agriculture and mining, but industry should also be dis-
tributed equally. Chinese industry, in order to be near the
areas producing raw materials, to find markets for finished
products, and to meet the needs of the people, should be
located at inland centers. From the standpoint of national
defense, industry scattered throughout the interior will de-
velop the potential material strength of all parts of the coun-
try. As far as the people's livelihood is concerned, cities and
rural districts will be brought into equilibrium, and will not

288 CHINESE ECONOMIC THEORY

be separated or radically different, as is the case with the
present gap of one or two centuries between living conditions
in the coastal cities and those in the rural districts of the
northwest and southwest.

Fifth, the "Industrial Plan" calls for the equal development
of China, both in the interior and on the coast, and also for
the equal development of all localities. The various chapters
of the Plan reveal that the late Father of our Country con-
sidered every district of China and wished to utilize each one
to the best possible advantage. During the Sung, Ming, and
later dynasties, the activities of the government were on a
reduced scale. Even during the Han and T'ang dynasties,
when the scope of government activities was extensive, the
central provinces were overemphasized and the border regions
were neglected. The "Industrial Plan, 35 however, is sufficiently
broad in scope to enable China to become a strong nation.

The "Industrial Plan" is extremely complex, and the above
are only some of the most essential points. A study of the full
text of the Plan, after grasping these central points, enables
us to understand not only the truth contained in the Prin-
ciple of the People's Livelihood, but also the validity of the
general principles of national-defense economics embodied
in Sun Yat-sen's Ten- Year National Defense Plan.

CHAPTER FIVE

IDEALS

WE HAVE discussed the most important, present-day eco-
nomic principles of China, but these are still not the ultimate
ideals of China. The ancient scholars studied the truth em-
bodied in the economic principles that Sun Yat-sen under-
stood so clearly. During his lifetime, he discussed both policies
and methods, and he praised the chapter, "The Great Har-
mony/ 5 [Ta Tung] in the Book of Rites, which embodies the
final economic goal of the Three People's Principles, i.e., the
economic ideals that China should strive to realize.

Though world development cannot be foreseen in detail,
its abstract principles should be thoroughly understood. The
same holds true for economic development. No one can fore-
tell the details, but everyone should understand the prin-
ciples. Some of these principles have already become facts,
while others have not yet been translated into practice. But
these principles are not altered simply because all of them
have not yet been put into effect. The ancient wise men of
China understood all the principles of economic development,
and the chapter "The Great Harmony" in the Book of Rites
pictures a world in which all these principles are actually
enforced.

In the world of the "Great Harmony" when human nature
is developed to the highest point, no one will be able to earn
a living by sitting idle and none will be unable to find work.
All adults should work, and the social system will be such as
to provide every adult with the opportunity to fulfill his
obligation. This is what is meant by the saying: "Adults shall
be of service." Moreover, everyone should strive to earn a

289

2 go CHINESE ECONOMIC THEORY

living for mankind and not for himself. Thus the "Great
Harmony 5 ' states: "It is regrettable if one does not work.
What he does is not necessarily for himself."

The people's livelihood as described in the world of the
"Great Harmony " is entirely satisfactory. All resources must
be developed for the people's use, and the failure to develop
these resources is a fault. The development of production will
result in surplus products, but these should not be privately
owned or used for satisfying private wants. Hence the state-
ment: "It is regrettable if any resources are not developed.
Such resources when developed are not necessarily for per-
sonal use."

The economic activities proposed in the world of the "Great
Harmony" provide a most satisfactory basis for progress. The
producers produce for the welfare of mankind and the dis-
tributors distribute according to the needs of each individual.
The people as a whole have the responsibility and ability to
support those who have passed or have not yet attained work-
ing age, as well as those who are unable to work. This is what
is meant by the statement: "Old enabled to work, minors
enabled to grow, and widowers, widows, orphans, and dis-
abled given support."

The economics of the world of the "Great Harmony" are
based entirely on the people's livelihood. In this ideal world,
there are no punishments because no one commits crimes.
There is no war because no nation adopts an aggressive
policy. Thus the book states: "No plots, no robbers, no thieves,
no rebels, and consequently no doors necessary." As explained
in the Book of Rites, economic policies based on the people's
livelihood constitute the only correct road to the "world in
harmony." There is no other way to realize our economic
ideals. 1

i. This passage on the "Great economics, and (2) to assert the su-

Harmony" is perhaps the most striking periority of all things Chinese over

example of the book's attempt (i) to all things Western. The author

portray the ancient sages of China as blandly ignores the fact that the au-

omniscient guides to the principles of thors of the "Great Harmony" had

CHINA'S FUTURE ECONOMIC IDEALS 291

Although the economic ideals set forth in the Book of Rites
cannot be attained at an early date, I am confident that the
present war will advance world economic theory to a point
nearer such ideals. This war will mark the life or death of the
policy of economic aggression. That policy is bound to fail.
All nations may., by their own spiritual and material strength,
achieve equality and freedom. The aggressors brought about
the calamity of war because they failed to use science and
technology to serve men according to human nature and,
instead, allowed science and technology to control men.
Unless this mistake is rectified, mankind will be doomed to
total destruction. The aggressors may, by an extravagant use
of science and technology, achieve temporary victories, but
the final result will be either the destruction of the world or
their own destruction. Science and technology are the prod-
ucts of human effort and are developed for the sake of man-
kind. The principles of Chinese economics are "true virtue/ 3
the utilization of resources, and increased production. They
are based on human nature or the people's livelihood, and
their objective is that commodities should serve and not
enslave men. This basic point has long been understood by
the Chinese people, and the Three People's Principles have
won nation-wide support because they are based on this
highest ideal. Today, men everywhere have experienced suf-
fering and have begun to realize the validity of this ideal.

After the present war, all peace-loving nations and races
will surely reform their economic systems and theories, and
will make certain that the development of science and tech-
nology will serve mankind. Only when this is done will the
post-war world have advanced one step nearer to our eco-

no knowledge of the problems of a even recognize the existence of foreign

modern industrial society. Their the- nations as coequal to China; much

ories were formulated at a time when less think in terms of world organiza-

China was divided into numerous tion. The term "foreigner" was used

feudal states, and thus expressed to denote Chinese from other Chinese

simply the desire for greater centrali- feudal states. All non-Chinese were

zation or federation. They did not regarded as uncivilized barbarians.

CHINESE ECONOMIC THEORY

nomic ideals. Adherents of the Three People's Principles and
all Chinese citizens that have understood this truth should
not only work for the further development of Chinese eco-
nomic principles, but should also strive to realize China's
economic ideals.

Commentary on

CHINA'S DESTINY

and

CHINESE ECONOMIC THEORY

By Philip Jaffe

COMMENTARY ON "CHINA'S DfST/NY"
AND "CHINESE ECONOMIC THEORY"

IT is assumed that the reader of the following commentary
will bear in mind the points already made in the numerous
footnotes included in the texts of China's Destiny and Chinese
Economic Theory, as well as in the introductory essay on
"The Secret of China's Destiny."

A noteworthy feature of both China's Destiny and Chinese
Economic Theory is that they appear to have been designed
particularly to reach and influence the students of China.
Great emphasis, for example, is placed on the important role
of the San Min Chu I Youth Corps, and on the duty of all young
Chinese to join that Corps. This intensive effort to win the
support of Chinese youth is easily explained by the fact that,
more than in any other country, the students of China par-
ticipate actively in politics. For the past twenty-five years,
they have taken a prominent part in the movement to free
China from her semicolonial status and to modernize her
social and economic structure. At critical times, the entire
Chinese student body has flared up in open revolt against
repressive or reactionary Government policies. In 1919, in
the years from 1923 to 1927, again in 1934-36, and once again
in 1 946, the students of China broke the bonds that tied them
to the ruling bureaucracy and took the lead in organizing
great mass protests and demonstrations.

Because the Kuomintang regime is well aware of the po-
tential power and influence of the student movement, its
leaders have carried out a rigorous system of "thought con-
trol," under which both the activities and the "thoughts' 3
of students and teachers are closely supervised by the various
secret police organizations. Independent thought and teach-

295

296 COMMENTARY

ing are banned in favor of blind adherence to "orthodox"
Kuoniintang doctrines, such as those expounded in China's
Destiny. In view of the vigor and ruthiessness with which this
"thought-control 55 program has been pursued in recent years,
it is easy to see how a young Chinese student, living under
the "protective custody" of the Kuomintang and kept in
ignorance of the true history of modern China, would find
it difficult to judge the validity of the conclusions reached in
China's Destiny and Chinese Economic Theory.

It is undoubtedly true that a certain percentage of students,
as well as other sections of the Chinese population, have suc-
cumbed to the emotional spell of these two books. Neverthe-
less, most observers of the Chinese scene believe that the
majority of students are critical of the theories and conclusions
expressed in these volumes, and that they are deterred from
openly voicing their criticism only by a knowledge of the
dangers involved in such action. It is significant that since
V-J Day, the Chinese student movement has again become
articulate in its opposition to the ruling regime, and that
such cities as Kunming, Chengtu, and Shanghai have become
the centers of what may prove to be another great student
uprising. The Chinese student movement today is opposed
to civil war and selling out China to foreign powers. It is
opposed to foreign aid to a regime that is openly bent on
civil war. And it is particularly vehement in its opposition
to the corruption of a regime that even goes so far as to con-
vert UNRRA supplies, intended to feed starving millions,
into personal profits for a few strategically placed bureau-
crats. Chinese students have demanded the immediate forma-
tion of a democratic coalition government free from foreign
domination, and the substitution of a democratic constitution
for the undemocratic one proposed by the Kuomintang. In
general, the student movement supports the position and
program of the Democratic League the combination of
"little parties" that has so far successfully withstood the efforts
of the Kuomintang' s secret police to destroy it. Under these

COMMENTARY

circumstances, it is not difficult to understand why the Kuo
mintang leaders should try desperately to persuade China's
youth to accept the views and policies advocated in China's
Destiny and Chinese Economic Theory.

No one that has followed the course of recent Chinese
history would deny that the views expressed in these two
books represent the political and economic aims of China's
present rulers, yet there is the danger that a casual Western
reader may fail to recognize their significance. He may come
to the erroneous conclusion that the ways of the Oriental mind
are hopelessly mystifying, and that to make a serious effort to
follow what he would term the " Chinese" lines of reasoning
In these books would be a purely academic exercise and of
no particular relevance to his life. If this is the way the Chinese
nation decides to live, an unwary reader might ask ? why
should it be a matter of concern to anyone else, so long as
China is not an aggressor nation and does not seek to foist this
philosophy on other peoples against their will?

It is this commentator's contention that such a detached
attitude is not valid on the following grounds: (i) that the
philosophy expressed in these books is not mystifying or pe-
culiarly "Chinese/ 3 that it is not the natural outgrowth of
China's past, and that the Chinese people can be made to
accept this philosophy only by the repressive methods of a
police state; (2) that for the past twenty-five years the Chinese
people have vigorously opposed the imposition of such a
philosophy upon their economic and social lives; (3) that the
Chinese Government's attempt to impose an oppressive polit-
ical and economic philosophy upon its citizens by force has
subjected China to disunity, civil war, and general demorali-
zation; and (4) that such a China has been and will continue
to be an object of penetration by outside forces, thus pro-
moting aggressive ambitions among imperialist powers and
constituting a serious danger to world peace. If these con-
tentions are correct, then every peace-loving non-Chinese
as well as Chinese in the world has a stake in China's future,

298 COMMENTARY

and the struggle of the old against the new in China, so clearly
illustrated in these two volumes, becomes a matter of vital
concern to all.

Both China's Destiny and Chinese Economic Theory paint a
seriously distorted picture of Chinese history a picture par-
ticularly notable for its glaring omissions. China's Destiny^ for
example, almost completely ignores the struggles of the Chi-
nese people against the oppression of their own rulers. The
author is lavish in his praise of the cc Confucian' 3 virtues of
such statesmen as Tseng Kuo-fan and Li Hung-chang, who
enlisted Western military aid to preserve the foreign Manchu
dynasty against the native T'ai-p'ing Rebellion. He also por-
trays the ancient Chinese society as an example of ideal social
organization that was only undermined by the impact of the
West. But he does not explain why, if ancient China was so
perfectly organized and her people so harmonious and con-
tent, she succumbed so easily to Western imperialism, or why
so many of her officials readily became the lackeys of foreign
interests and co-operated with them in suppressing the spon-
taneous uprisings of the Chinese people.

As far as the treatment of more recent Chinese history is
concerned, the bitter and bloody struggles that China ex-
perienced in the years from 1931 to 1936 are dismissed in the
following sentence: "Again, during the period from 1931 to
1936, there was continuous war and disaster in southern
Kiangsi, eastern Honan, western Anhwei, southern Honan,
western Hupeh, Szechwan, and ShensL" There is not a word
about the extensive and costly military campaigns conducted
by the Kuomintang against the forces of a resurgent revolu-
tionary movement as well as bitter armed struggles between
Chiang and many of his Kuomintang generals, and no men-
tion of the most dramatic incident of that era of civil strife
the kidnaping of Chiang Kai-shek at Sian in December, 1936,
by a group of his own Kuomintang followers.

Another example of the calculated omissions that charac-

COMMENTARY 299

terize China's Destiny is its treatment of the May 4, 1919,
Movement. The author criticizes the May 4th Movement
sharply for encouraging the spread of "the ideas of Liberalism
and Communism. 53 He attacks its leaders for "losing their
confidence in Chinese culture" and for worshiping foreign
theories that were "opposed to the spirit of China's own civili-
zation." And he declares that this "copying of Western the-
ories" only caused "the ruin and decay of Chinese civiliza-
tion," Yet it was this great student and intellectual rebellion
that gave a powerful impetus to the struggle for national in-
dependence and democracy. It was this movement that made
it possible for the Kuomintang to become the leader of the
Chinese Revolution from 1924 to 1927, and that gave Chiang
Kai-shek himself the opportunity to become the leader of the
Northern Expedition.

In this connection^ it is pertinent to recall that the T'ai-
p'ing Rebellion (1850-63) was the earliest manifestation of
the Chinese people's revolt against both alien subjugation
and the rule of the landed gentry. This great peasant uprising
established its government in the Yangtze Valley for a period
of eleven years, and though its leaders inevitably came into
contact with foreign interests, they never concluded any "un-
equal treaties." The T ? ai-p'ings were finally crushed chiefly
as a result of the armed support given to the Manchu dynasty
by the Western powers, which intervened actively to prevent
the overthrow of a regime that had proved so amenable to
their demands. Many Chinese believe that if the T'ai-p'ings
had succeeded in maintaining their power and overthrowing
the Manchu dynasty , the Western powers would never have
succeeded in obtaining such extensive concessions and special
privileges in China. They therefore regard the suppression of
the T 7 ai-p 5 ings as a critical defeat for the Chinese people and
a notable victory for foreign imperialism. Yet the man who
played the most prominent role in the suppression of the T s ai-
p'ings, Tseng Kuo-fan, is praised in China's Destiny as a great
statesman and patriot.

COMMENTARY

It Is significant that China's Destiny analyzes the 1927-28
period in much the same manner as it deals with the T'ai-
p'ing Rebellion. One would never gather from China's Destiny
that the split of the right-wing Kuomintang from the left
wing, and the establishment of a right-wing government at
Nanking, was followed by one of the greatest campaigns of
repression in modern history., second only to Hitler's campaign
to destroy every vestige of liberalism,, intellectual freedom,
and labor organization in Europe. The author of China**
Destiny also sees fit to explain the 1927 split entirely in terms
of Wang Ching-wei and the Chinese Communists. With ex-
ceptional "modesty" he omits all reference to his own leading
role in winning the battle of reaction against the Chinese
people. The story of the Shanghai massacre of April 12, 1927,
which Chiang Kai-shek organized in co-operation with Tu
Yueh-sheng, the gangster leader and opium czar, and with
foreign powers, has been so fully told that it need not be
detailed here. But it is important to recognize that the use of
foreign gunboats in the "Nanking incident" preceding the
Shanghai affair, the use of foreign munitions obtained from
the French Concession's chief of police in staging the Shanghai
massacre, and the financial support given by both Chinese
and foreign bankers to Chiang Kai-shek in his campaign to
block the domestic effects of the revolution, bear a significant
resemblance to the circumstances surrounding the suppression
of the T'ai-p'ing Rebellion. As described in China's Destiny,
the heroes in both instances are the suppressors of the people's
movement, and the villains are the people.

From 1 93 1 to 1 936, there was increasing organized resist-
ance to the Kuomintang Government's policy of appeasing
Japan. But the author of China's Destiny dismisses this move-
ment with a contemptuous reference to "militant radicals 3 '
that had no appreciation of the "needs of the National Gov-
ernment," and he insists that the Kuomintang was actually
doing everything possible to build up China's powers of re-
sistance. He also argues that the Kuomintang could not ex-

COMMENTARY 30 1

plain its policy to the various opposition groups because this
would have entailed revealing its plans to the Japanese.
Actually, the Central Government armies were considerably
strengthened during this period as a result of substantial aid
from the United States and Great Britain. But these armies
and their foreign-supplied equipment were expended in a
series of costly and ineffective civil war campaigns,, while the
Government went on yielding to the successive demands of
Japan. Chiang Kai-shek may argue that it was necessary to
keep the Government's plans a "secret," but they were no
"secret" to the thousands of Chinese that were killed during
these years by Central Government troops.

Moreover, the "militant radicals" to whom Chiang Kai-
shek so scornfully refers, comprised men and women of all
classes of Chinese society, including students, intellectuals,
industrialists, bankers, and even important sections of the
Kuomintang Party membership, all of whom joined in de-
manding an end to civil war and the beginning of united
national resistance to Japan. This opposition movement
reached its climax in the December, 1936, kidnaping of
Chiang Kai-shek by Kuomintang Generals Chang Hsueh-
liang and Yang Hu-ch*eng and the troops under their com-
mand. The last straw that precipitated the Sian kidnaping
was Chiang Kai-shek's order to these troops to attack the
Communist-led forces in Shcnsi, at a time when it was obvious
that Japan was making final preparations for a full-scale in-
vasion of China. Both Chang Hsueh-liang and Yang Hu-
ch'eng are still in jail, more than ten years after the kidnaping.
Furthermore, there is not a word in China's Destiny about the
fact that Chiang Kai-shek's release from Sian was conditional
upon his verbal promise to end the civil war, a factor that soon
led to the formation of an anti-Japanese united front. Al-
though this united front was broken by the Kuomintang early
in 1939 even this brief period of unity enabled the Chinese
people to offer heroic resistance to the Japanese, and was
chiefly responsible for the organizing of millions of guerrillas

302 COMMENTARY

behind the Japanese lines who, in the long run, proved the
decisive factor in preventing Japan from consolidating her
conquests in China. It is easy to see why Chiang chose to omit
any discussion of these eventful months.

As presented in China's Destiny, the story of China from 1 928
on is one of important constructive activities by a "new and
revivified" Kuomintang. The author is certainly correct when
he emphasizes the changed character of the Kuomintang.
But when he expresses regret that the Chinese people were
unable to understand or accept the leadership of the Kuomin-
tang, he fails to give the true reason, namely, that the Kuo-
mintang had ceased to be the broadly inclusive and progres-
sive movement that it had been in the 1924-27 period. The
dominant influence in the Party after 1928 was exercised by
the landed gentry, the Shanghai bankers, and other reaction-
ary elements. This period witnessed the growth of the Blue
Shirts, a secret terroristic Government organization that was
later transformed into the secret military police headed by
General Tai Li. The main job of Tai Li's operatives, who
numbered some three hundred thousand and whose network
extended not only throughout China but also to all Chinese
communities overseas, was to discover and wipe out all forms
of opposition to the Kuomintang regime.

The years following 1928 were also notable for the growing
influence of the ultra-reactionary "CC" clique, headed by the
Chen brothers, Chen Li-fu and Chen Kuo-fu. This clique
exercised complete control over the Kuomintang Party ma-
chinery and was responsible for the system of "thought con-
trol" and surveillance by the Party's secret police that
inaugurated a reign of intellectual terrorism throughout
Kuomintang China. Another important development during
this period was the establishment of the San Min Chu I Youth
Corps, which Chiang Kai-shek praises so highly. This or-
ganization, bearing a marked resemblance to the Hitler
Youth, is the principal means by which the Kuomintang
hierarchy seeks to impose its doctrines and its control on the

COMMENTARY 303

youth of China, and also to ferret out any tendencies toward
"unorthodox" thought in student circles by means of Youth
Corps spies and informers.

Behind all these various developments was a highly or-
ganized effort to restore the Confucian doctrines of political
and social organization as the basis of Chinese society. In
1 9363 the pao chia system was reintroduced as a means of mil-
itary and labor conscription, and also as a method for check-
ing "subversive 5 * activity by means of the undemocratic prin-
ciple of collective responsibility (see footnote, page 1 34) . After
1938., the system of forced conscription for military and labor
service became so pernicious and corrupt that it constituted a
national scandal and even precipitated large-scale rebellion
in three provinces.

As a popular movement to instill in the people a respect
for the "ancient virtues" of frugality, cleanliness, and a pure
and simple life, the New Life Movement was launched in
1934. This movement was at first received by the average
Chinese with respect, but by 1936 it had become a general
laughing stock, as the people saw that its protagonists were
leading far from pure and frugal lives. It was well known that
the same officials who wore cheap cotton gowns in public and
ordered "frugal" meals in restaurants, led very different lives
in private, where they dressed and dined luxuriously and
squandered huge sums on gambling and other amusements.
Even before the outbreak of the war, it was clear that the
New Life Movement had failed to win the respect and support
of the Chinese people. Yet its sponsors continued their efforts
to get the people to take it seriously. During the war, when
the country-wide devastation made it inevitable that the
people lead a life of the utmost simplicity and frugality, there
was hardly a need for such a movement, but from time to
time the New Life Movement would reappear with its wholly
unnecessary decrees forbidding permanent waves, dancing
parties, and other features of a frivolous and extravagant life.
To the homeless and destitute millions of China, such moral

304 COMMENTARY

precepts seemed little more than a mockery. Certainly, they
failed to evoke the desired loyalty to the "ancient virtues" or
to divert popular attention from the demand for democratic
government and economic reform.

One cannot help noting in this connection that the Jap-
anese made use of much the same tactics in their efforts to
subdue the Chinese people. Not only did they adopt a form
of the pao chia system in Manchuria, jDut they also selected the
Analects of Confucius as their principal weapon of psycho-
logical warfare in China, and made every effort to revive the
Confucian system of social ethics in the areas under their
control, in order to encourage unquestioning obedience to
authority. In their view, Confucian principles had proved
themselves the ideal method of combating nationalism and
democracy.

After Japan's invasion of China on July 7, 1937, a new
factor began to play an important part in China's political
life. With the spread of the war, the Chinese were not only
driven back from the industrial centers along the coast, but
were even forced to abandon the embryonic industrial enter-
prises that had been begun in the Yangtze Valley provinces
of Hunan, Hupeh, and Kiangsi. By the end of 1938, Japan's
advance to the line of the Peiping-Hankow-Canton Railway
had resulted in the loss of virtually all of China's industrial
plants and compelled the Chinese Government to rely more
and more upon feudal barons. This loss of China's industrial
centers caused a sharp decline in the economic power and
political influence of the native Chinese industrial and bank-
ing class, which had absorbed some Western ideas of indus-
trial progress and was, in some respects, a relatively progres-
sive-minded group. As a result, the feudal-minded landed
gentry, whose power depended on maintaining China's back-
ward and oppressive agrarian system, became the undisputed
leaders of the Kuomintang. And as the power of this cc sedan
chair" gentry grew, so grew the repressive character of the
Kuomintang regime.

COMMENTARY 305

The climax of the reactionary policy of this new Kuomin-
tang hierarchy was the wartime blockade of millions of Chi-
nese in the guerrilla areas and the open preparations for civil
war at the earliest possible moment. The landed gentry of
Kuomintang China were deeply alarmed by the growing
popular support for the agrarian reforms and democratic
electoral procedures that had been introduced in these guer-
rilla areas, and they were determined at all costs to prevent
the spread of this program to the rest of China,, since this
would inevitably spell the end of their own monopoly of
power. Their preparation for the destruction of this growing
popular movement even included a close alliance between the
Kuomintang Government and several hundred thousand
Chinese puppet troops serving under the Japanese. These
puppets were encouraged to go over to the Japanese, ostensibly
to maintain as much Chinese control as possible in the occupied
areas. Actually, there were two reasons for this Kuomintang
strategy. In the first place, the puppet troops joined with the
Japanese in fighting the Communist-led guerrilla forces. The
second and more long-term objective was to ensure that there
would be Kuomintang military control in these areas follow-
ing Japan's defeat. The whole strategy of these "Chungking-
planted' 3 puppets became clear following V-J Day, when
Chiang Kai-shek called upon the puppet troops to "maintain
order" in the occupied areas pending the arrival of Central
Government troops, and refused to permit Communist-led
Chinese forces to accept the surrender of Japanese troops. It
was at this point that the puppets suddenly became knownln
official Chinese statements as the "underground," although
for years there had been nothing "underground" about their
activities as instruments of the Japanese.

The Kuomintang excuse for the military blockade against
the most active defenders of Chinese soil a blockade in which
the Central Government employed its best troops and equip-
mentwas that the guerrillas were Communist-led, But, as
everywhere throughout the world, the use of the term "Com-

306 COMMENTARY

munist" to identify all opposition has been employed assidu-
ously as a shield to cover the suppression of all people's rights.
If Chiang Kai-shek explains the blockade as an anti-Com-
munist move,, how does he explain the suppression of all mi-
nority parties within Kuomintang China, the suppression of
all civil liberties, the suppression of those groups within the
Kuomintang itself, that opposed the policies of the ruling hier-
archy, the suppression of students and teachers, of the more
progressive-minded industrialists and bankers, and even of
some important Kuomintang military leaders that dared to
advocate a unification of all China's fighting forces? Such ac-
tions can be explained only on the ground that the Kuomin-
tang bureaucracy was the arm of a landed gentry that had be-
come all-powerful and that used both force and propaganda to
preserve and enhance its power the force consisting of an
elaborate network of secret police organizations, and the
propaganda involving both "thought control" and intensive
efforts to revive the Confucian philosophy of government by
a privileged feudal elite.

In an effort to make his analysis of the history of the past
one hundred years plausible, Chiang Kai-shek blames vir-
tually all of China's trials and difficulties on Western im-
perialist penetration. Unquestionably, he paints a vivid and
damning picture of the havoc wrought by Western imperial-
ism on China's civilization and economy. This is perhaps the
section of China? s Destiny where history is least distorted, a
judgment that must be tempered by the knowledge that
China's Destiny was written at a time when it suited the pur-
poses of the ruling bureaucracy to attack the Western powers
(see p. 20). The story Chiang tells constitutes only half the
history of that period. A full account would have to include a
description of the corruption and decay of China's economic
and social structure that made her such an easy prey. The
author does criticize the Manchu Government for its yielding
to foreign pressure, but his criticism is more in the nature of

COMMENTARY 307

deploring the unwise actions of a blood brother than a recogni-
tion of the fact that the Manchu dynasty represented the
final era in a long period of decline of a feudal and oppressive
social system. This decline was part of a historic process in
which an unhealthy and repressive autocracy finally gave
way before the rising strength of popular opposition. As Sun
Yat-sen himself declared, "the former weakness and decline
of China was due to the harsh oppressions of absolutism. 3>
It is significant that this statement is not one of those chosen
for quotation by the author of China's Destiny.

Much criticism has been leveled against China? s Destiny for
the racial theory expounded in the first chapter, in which the
author seeks to prove that all the peoples of China share a
common blood stream. This idea of a national blood relation-
ship is similar to that expounded by Hitler, though, in its out-
ward manifestation., it has no important resemblance to Hit-
ler's doctrine, which was used as the basis for the literal
destruction of other peoples and as a tool of aggression. There
is no such implication in China's case, except insofar as this
theory governs the Kuomintang's attitude toward China's na-
tional minorities* But the theory itself is certainly one to arouse
the scorn of all modern historians, who can hardly accept the
thesis that the Chinese, the Mongols, the Tibetans, etc., are
really branches of the same racial stock because they are all
descended from the same legendary emperor.

As pointed out in the footnote on page 40, this racial
theory completely distorts Chinese history, since it would
mean that all the bitter wars fought by the Chinese against
the Mongols, Tartars, Manchus, and other invaders were
really not wars for national independence but merely in-
ternal struggles within a single nation. One can only conclude
that the author's purpose in elaborating so unconvincing a
thesis was to instill in the Chinese people a belief in the
"unique" quality and vast superiority of Chinese civilization
over all "foreign" cultures, so that they might accept every-
thing about their past as valid and admirable. It would not

308 COMMENTARY

suit Chiang Kai-shek's purpose to recognize that China's
history was a process of constant struggle and adjustment, and
that the social ethics and political organization advocated by
China's ancient sages did not produce a golden world of
complete harmony. But if it were possible to secure widespread
acceptance of the thesis that ancient China was virtually
perfect, that all the peoples of China were really one, and that
the authoritarian doctrines of the ancient sages provided the
correct answer to all problems of social and political relation-
ships, then of course the present ruling clique would find it
far simpler to secure popular acceptance of the thesis that its
"paternalistic" control over the lives of the Chinese people
is based on hallowed historical precedent.

Although China's Destiny is the book intended for popular
consumption, Chiang Kai-shek's more fundamental book is
Chinese Economic Theory, for this purports to give a theoretical
basis for the conclusions reached in both books. Like China? $
Destiny, one of the most notable features of Chinese Economic
Theory is its strongly paternalistic and feudal outlook. The
social and economic concepts that it develops can, in fact,
best be described as Fascist theory applied to a semifeudal
agrarian economy. Individuals and individual "wants 55 are
treated with cc benevolent 3 ' contempt. The whole emphasis is
on the subordination of the individual to a paternalistic and
authoritarian government cc which manages the people's af-
fairs." There is nothing in the book to support the allegedly
democratic aims of the Kuomintang program. On the con-
trary, the character of the government that is envisaged in
Chinese Economic Theory seems to differ very little from the
autocratic landed bureaucracy that ruled feudal and imperial
China.

Chinese Economic Theory also resembles China? s Destiny in its
strongly chauvinistic tone. There is a repeated emphasis on
the vast superiority of the ancient Chinese civilization over
"Western" culture, coupled with fulsome praise of the wisdom
of China's ancient sages. The book even goes so far as to credit

COMMENTARY , 309

the wholly legendary cc Flve Emperors" with being the in-
ventors of the major arts, crafts, and social policies.

The thesis that there is a system of "Chinese" economic
theory, distinct from and superior to "Western" economic
theory, is wholly incompatible with modern scientific thought,
which regards economic science as a system of analysis that
can be applied with equal validity to the specific economic
problems of every country, with due regard for the differences
in the levels of their development and their historical and
political backgrounds. As for the alleged superiority of "Chi-
nese" over "Western" economic theory,, this claim is made
solely on the basis of morality or ethics. The author contends
that Western economic theory is materialistic and based on
profit-seeking, and that it is therefore inferior to the teachings
of the ancient Chinese sages who were concerned with far
higher ethical values. But even if he had provided adequate
proof for his contention that China's ancient economic the-
ories were less materialistic than those of the West, which he
does not and cannot because It is net true, there would still
be no basis for his conclusion, because the validity of an eco-
nomic theory obviously cannot be judged solely in terms of
ethics or morality. The inescapable conclusion is that the
book's emphasis on the ancient moral virtues of feudalism is
deliberately designed to provide a philosophical justification
for preserving the traditional social structure of ancient China,
with its monopoly of wealth and power by the ruling bureauc-
racy, and its emphasis on authority and subservience as the
basis of social order and harmony.

It is difficult to appraise the specific economic policies ad-
vocated in Chinese Economic Theory because they are phrased
in such vague and ambiguous terms. In general, the book
advocates economic and political control under a centralized
feudal-fascist government, based on the traditional system in
which the village formed the basic economic and military
unit. Its main arguments apparently favor a protectionist
tariff policy, an emphasis on armaments and strategic com*-

COMMENTARY

munications, the development of a few large-scale modern
industries under bureaucratic control, and the wide decen-
tralization of small-scale industry in order to prevent any
serious disruption of the present agrarian system.

Chinese Economic Theory lays great emphasis on what the
author terms "national-defense economics 55 and on the subor-
dination of private enterprise to bureaucratic control. Foreign
observers of Chinese economic development during the war
were unanimously agreed that such bureaucratic centraliza-
tion in an industrially backward country like China served
only to obstruct economic progress and to stifle much-needed
private initiative. It was generally recognized that the re-
strictions, regulations, and bureaucratic red tape to which
private industry was subjected in Kuomintang China during
the war were largely responsible for the fact that the few in-
dustries that China possessed operated at only a small per-
centage of their full capacity, and that private capital was
reluctant to invest in industrial enterprises confining itself
almost entirely to speculation in land and commodities. And
what was true during the war will remain true so long as the
dominant class in Chinese society is feudal minded and there-
fore opposed to an industrialization program that would free
large numbers of peasants from the land.

Perhaps the most discouraging passages in Chinese Economic
Theory are those dealing with the land problem. As noted in
the footnote on page 274, the suggestion that "collective
farms" may provide the solution to this problem means noth-
ing more or less than a return to the feudal system of village
units as the basis for labor and military conscription, and the
enforcement of the pao chia system of collective responsibility.
Though the book makes a general reference to the need for
prosperous "rural districts" as markets for industry, and an
equally general comment on the evils of "land annexation"
in ancient times, there is no comment whatsoever on the rapid
concentration of land ownership during the war, nor on the
other serious economic problems confronting present-day

COMMENTARY 31 I

China. The reader will search in vain for any mention of
measures to deal with the immediate need for agrarian re-
forms, and for the control of inflation, speculation, and
hoarding. The Kuomintang's agrarian policy, if judged by
Chinese Economic Theory, would seem to consist solely of ref-
erences to an ideal past and a still more ideal future, coupled
with a complete disregard for the grim realities of the present.

In general, Chinese Economic Theory may be regarded as yet
another contribution to the systematic campaign that has been
waged in recent years by the Kuomintang to assert the su-
periority of the ancient Chinese cc way of life" over everything
"Western," i.e., liberal. The proponents of this thesis make
no attempt to prove their unsound and historically inaccurate
contentions. Their tactics consist solely of reiterating the claim
that all Western culture is c 'materialistic 3 * and that the ancient
sages of China understood all the "true principles" of eco-
nomics and social organization.

Though Tao Hsi-sheng, the "co-author" of both China's
Destiny and Chinese Economic Theory, is apparently one of its
leading "theorists," the real master-minds of this campaign
are Chen Li-fu and Chen Kuo-fu, the leaders of the CC CC"
clique. Though their official positions have shifted from time
to time, the Chen brothers have retained their control over
the Kuomintang Party personnel and the secret Party police,
and their main activity has been to ensure the acceptance
of orthodox Kuomintang doctrine by all Party officials, stu-
dents, teachers, editors, etc. Thanks to their all-pervading
influence, the teaching of Western liberal doctrines and demo-
cratic principles has been virtually banished from Chinese
schools and universities. And in accord with their theory that
only the technological achievements of the West have any
value for China, students selected for study abroad are com-
pelled to confine themselves strictly to technical subjects-

This type of nationalism is deeply disturbing to all genuine
scholars and liberal thinkers in China. They are contemptuous
of the distorted version of Chinese history presented in such

3 1 2 COMMENTARY

books as China's Destiny and Chinese Economic Theory., and dis-
agree completely with the disparagement of the contributions
of Western culture. They recognize that modern Chinese
political and social thought has drawn inspiration from West-
ern liberal doctrines as well as from China's own cultural
heritage, and they are fully aware of the dangers inherent in
the type of chauvinistic nationalism promoted by such men
as Chen Li-fu and Tao Hsi-sheng.

Thus, despite the machinations of a gestapo-like system of
secret police, recent Chinese history is filled with instances of
courageous opposition on the part of the Chinese people.
Imprisonment, torture, and even assassination have failed to
halt the increasingly vigorous criticism of the Kuomintang
regime. The leaders of the Democratic League and men like
Dr. Ma Ying-chu, China's leading economist, have literally
taken their lives in their hands to voice such criticism. Lest
this statement appear to be an exaggeration, it may be noted
that although Dr. Lo Lung-chi, head of the Democratic
League and a prominent Catholic editor, was still alive in the
autumn of 1946, two important members of the League
Professors Li Kung-po and Wen I-to were assassinated in
Kunming in July, 1946. Both Li and Wen had been outspoken
advocates of a coalition government, and their deaths were
regarded in Chinese intellectual circles as proof that the ad-
vocates of civil war were resorting to organized terrorism in
their efforts to prevent a peaceful settlement of internal polit-
ical issues.

One of the most daring and persistent critics of Chiang
Kai-shek and the regime of which he is the leader has been
Professor Chang Hsi-jo, head of the Political Science Depart-
ment at China's famous Southwest Federated University in
Kunming. Professor Chang is a Kuomintang member of
many years 5 standing and one of the few Chinese professors

Southwest Federated University migrated from Peiping and Tientsin
is composed of three universities after the Japanese occupation of those
Tsinghwa, Peita, and Nankai which cities.

COMMENTARY 313

that are members of the People's Political Council. Early in
19445 he was removed from his post for having made the
"revolutionary" statement that a system of law without de-
mocracy is an empty shell, but was restored because of his tre-
mendous following among the student body. Undaunted,
Professor Chang again made serious charges against the Ku-
omintang regime in a speech delivered before a large student
assembly on November 24, 1944, in which he accused Chiang
Kai-shek of subordinating China's welfare to his personal
ambitions and to building up his personal political machine
-the Kuomintang of seeking to deify himself before the
Chinese people, and of attempting to regiment thought and
stifle criticism.

But perhaps Professor Chang Hsi-jo's most important
speech, not only because of what he said but because of the
circumstances in which he said it, was made on January 13,
1 9465 before an audience of some seven thousand students and
visitors. At a time when students and professors were being
arrested en masse. Professor Chang boldly expressed for the
students and intellectuals of China what the vast majority of
them had believed for many years. His speech so ably ex-
emplifies the all-inclusive opposition to the Kuomintang
regime and to the philosophy embodied in Chine?* Destiny and
Chinese Economic Theory that the full text is included herewith:

"It is not easy to see through political difficulties. But it is
the duty of all who study and teach in universities to stick to
the truth. In discussing how China's problems can be solved,
I am going to state the truth without consideration for the
vested interests of any party, or the c face 5 of any person. A
solution for our political problems is tied up with a solution
to our social problems. Society frequently becomes sick. In
cases of serious sickness a doctor must be called, prescriptions
written, and medicine taken. This is the situation that China
is facing today. China is suffering because political power has
been monopolized by an extremely reactionary and exceed-
ingly despotic political faction, dominated by a group of

314 COMMENTARY

stupid, corrupt ignoramuses. This conglomeration is the Ku-
omintang, the Nationalist Party. I do not say that the Kuo-
mintang has always been such a body. It has developed into
such a body, and today thinks only of its own interests. It
shouts high-sounding slogans such as c for the nation and the
people. 3 It professes to 'bring happiness to the nation and wel-
fare to the people. 3 But these are mere words, and it really
plunges the nation into ruin and the people into misery.

"The Kuomintang still claims that it is a 'revolutionary
political party,' but in reality it has long since become some-
thing to be revolted against. Its members still talk about
revolution, but their words are mere parrot's mimicry. They
do not know what they are talking about. How does this
political faction continue to exist? The Kuomintang claims
that it is the legal government. That is correct, but legality is
not enough for a government. It must have the support of the
people. Legally, the Kuomintang can be said to be a govern-
ment. Morally, it is simply a bandit. The Kuomintang holds
political power by force and guns. It is charitable to call its
members bandits, for when one meets a robber one can call
the police. What can one do when one meets these people?
They have the law on their side. They are legally recognized
bandits. This was clearly demonstrated in the November 25th
and December incidents in which one professor and four
students were killed. It is unfortunate for China's future that
power has been monopolized by an ignorant, stupid, corrupt,
reactionary and despotic group. It is also unfortunate for the
future of the Kuomintang itself. We honor Dr. Sun Yat-sen
as c the Father of the Nation/ but his principles have been ex-
ploited for selfish gain. How his spirit must protest this cruelty
and shame!

"The conclusions that I have drawn may be profoundly
disturbing to some people. These conclusions are supported
by facts, but some people see these facts and others do not.
Still others see them and then, not liking them, turn away and

COMMENTARY 315

pretend that they haven't seen them. I ask you to let the facts
speak for themselves.

c i. The Three People's Principles: The Kuomintang talks
about these day and night. In the May 6th Draft Constitution
[1936] it is provided that c China shall be a Republic of the
Three People's Principles.' The first of these principles is na-
tionalism, which means to help each national group to obtain
independence and freedom. But the only positive achievement
of the Kuomintang has been to recognize the independence
of Outer Mongolia. The second principle is that of the people's
rights. But the people have no rights. The only right the people
have is the right to attend the weekly Kuomintang memorial
meetings, to bow to the Kuomintang flag, and to read Kuo-
mintang principles. They have nothing else. I need not talk
about the Principle of the People's Livelihood. The streets are
filled with beggars. The soldiers live worse than the beggars.
The streets are filled with them for everyone to see.

"2. Limitation of Capital and Equalization of Land Ownership:
The Kuomintang has been talking about this for twenty years.
But look at the war profiteers! Did anyone ever try to limit
their capital? How do they propose to equalize ownership of
land? Maybe they are waiting until the peasants can no longer
afford to plant their crops because of the heavy land tax. Not
only has nothing been done ? but w r hen I asked the Chairman
of the Kuomintang and other responsible people about it
they all said that they do not yet have any plan*

<C 3- The Period of Tutelage: It has always been said that this
period is intended to train the people for the assumption of
their political rights. Who has heard of any training being
done? The real purpose of c tutelage* is to postpone constitu-
tional government indefinitely.

"4. The People 9 s Assembly: So far we have heard only about
the construction of buildings for the Assembly. Dr. Sun's will,
which called for the convocation of a People's Assembly c in
the shortest possible time/ was written in 1925, 'The shortest

316 COMMENTARY

possible time 3 is already twenty years. No wonder that for-
eigners complain that the Chinese idea of a unit of time is
very long.

"5. Thought Control: This is the only thing that can be said
to have been a really successful undertaking.

"6. The Two-Tear Plan: At the beginning of the War of
Resistance, the Government suddenly became energetic and
every ministry published a plan. But there was no co-ordina-
tion among the different ministries. The Ministry of Com-
munications wanted to build railroads, the Ministry of War
an army, etc. No one stopped to ask if the Ministry of Finance
would be willing to foot the bill. Now no one knows what
became of these plans. In the second year of the war, I at-
tended the People's Political Council at which the Govern-
ment produced a new three-year plan. I asked the head of
one of the Yuans whether this three-year plan included the
foregoing two-year plan, or was to be started after the two-
year plan was concluded. This Government official replied:
c You're asking me. Whom shall / ask?' Then he added: "Pro-
fessor Chang, why be so particular?' The plans were nothing
but a display of 'intentions' by the Government to impress the
People's Political Council.

"7. Military Affairs First: Victory First: These Government
slogans were correct for the war period, but they did not cor-
respond to actual practice. Newspapers boasted that c the
more our army fights, the stronger it becomes. 5 But as late as
the summer of 1945, the moment our armies were attacked
they started to retreat. Was this a sample of their increased
strength?

CC 8. Those with Money Give Money; Those with Strength Give
Strength: This was one of the popular Kuomintang war slogans.
Those with strength certainly gave strength. They could not
do otherwise when guns were held over them. But those with
money became profiteers. When victory came, the Govern-
ment appropriated several billions of dollars to subsidize them.
But when better treatment was asked for soldiers and higher

COMMENTARY 3 1 J

pay for white collar workers, the Government replied that
c it was difficult to get funds and it just couldn't be helped. 3

"9. Administration in Formerly Occupied Areas: The scandal of
the taking over of Shanghai was excused by the Government
on the grounds that Japan surrendered so suddenly that it
had not been possible to make proper preparations. But there
was plenty of time to make plans for the taking over of Peiping
and Tientsin; yet conditions were exactly the same. Officials
arriving from Chungking entered these areas like conquerors,
confiscating money, automobiles, gold, and women. News-
paper reports from Peiping said that the local authorities
prohibited people from telling these stories to Chiang Kai-
shek when he visited the city.

C io. 'Victory* Decorations: So many of these were awarded
that it took the papers several days to complete publication
of the list. Only one person received a First-Class Decoration
Chiang Kai-shek. First in the Second Class was Ho Ying-chin,
former Minister of War, who was followed by a number of
officers and commanders. In the Third Class were members of
the Central Committee of the Kuomintang, headed by Wu
Chih-hui. The Seventh Class consisted of women, headed by
Madame Chiang Kai-shek and Madame Kung. I only know
a few of the people named. What these ladies did for resistance
only their husbands know. And what their husbands did, I
suppose is known to those who happened to be their wives.
Those who fought and won victories in Burma, such as Gen-
eral Sun Li-jen and General Liao Yao-hsiang, were not men-
tioned in the Victory Medal lists. They were only given
Chung-chin medals (Chung loyalty; Chin industriousness).
This is an excellent example of Kuomintang bureaucracy.
Titles but not men count; rank but not deeds. This accounts
for the fact that some of those who ran away and spent the
eight war years in the United States received Victory Medals.
Apparently our gallant soldiers who fought at the front and
our munition workers in the rear are without merit.

c * 1 1 * e T*urn the Government Over to the People; the Army to the

COMMENTARY

Nation!': This is now the most loudly shouted slogan. But
the words are empty. To whom is the Government to be
turned? What is meant by the people? If the 'people' means
Chiang Kai-shek and the two Chen brothers, of course it could
be done. If 'turning the army over to the nation' means turn-
ing it over to Chiang Kai-shek and the Chen brothers, it also
could be done. Slogans pleasing to the ear are one thing;
what is done in practice is another.

"12. The Massacre of Kuoming Students: This was a good
example of the Kuomintang Government which c is filled with
good words, but has not done one good deed. 3

"What can be done? First, we must abolish one-party rule
so that the whole attitude of the Government can be changed.
I will suggest concrete steps that might be taken. For the sake
of our country and for his own sake, I advise Chiang Kai-shek
to resign. If I were to meet Chiang Kai-shek I should say to
him: c You are responsible for all our evils. You should be
punished. The lightest possible punishment is to ask you to
get out and make way for good and worthy people.' For many
years, Chiang Kai-shek has been exceedingly presumptuous.
Isn't it right to ask him to be unpresumptuous for once? Here
is his chance to act nobly and resolutely: to resign before the
day of his downfall. Not only should Chiang Kai-shek resign,
but also all his lieutenants. They bear their share of responsi-
bility and should be punished. A coalition government should
be formed which might include enlightened and liberal-
minded Kuomintang elements. When formed, the coalition
government should call a convention to draft a constitution
for the nation.

"The above would be the ideal solution. However, I realize
that it might not be practicable and so I suggest the following:
To abolish one-party rule and tutelage, but to allow Chiang
Kai-shek to stay. This does not mean that we want him, but
merely that since he will not get out, we will suffer him under
certain conditions: (a) The 'Supreme Leader/ 'Chief of
State, 5 or 'President 5 must come within the law. This means

COMMENTARY 3 1 9

that Chiang Kai-shek must abide by the law, shall have no
part in legislation, and cannot change laws at will, (b) Policy
making must be removed from Chiang Kai-shek and given
to the policy-making body. Chiang Kai-shek could partici-
pate, but he would have only one vote. If this is not done,
the Political Consultative Council will be impotent, (c) The
responsibility for putting agreed policies into practice must be
vested in a group and not in one man. Only when this is done
will ministers become responsible officials, (d) The number of
posts held by Kuomintang members must be limited to
twenty-five per cent of the total or at most thirty-three per
cent. This is necessary because of the poor record of Kuo-
mintang officials in the past, and because the Kuomintang is
badly in need of a purge. If this were done, there would not
be many members left qualified to hold official posts.

"I realize that the Political Consultative Council might
think it impossible to put these suggestions into practice.
What then would be the future? If the despot [Chiang Kai-
shek] refuses to accept these demands, all non-Kuomintang
members of the Council should resign en bloc immediately.
They would be better off at home taking care of the babies
than sitting at such a conference. Sun Fo has suggested that
a few members from parties other than the Kuomintang be
added to the present Central Political Committee. There are
at present about a dozen or so members of this committee,
and in the past they have never held a meeting. But members
were entitled to rice subsidies and free automobiles. The pres-
ent suggestion is merely an attempt to satisfy the popular
demand for a coalition government without giving up one
iota of power.

"It has been suggested that a few ministers without port-
folio be appointed under the Executive Yuan. A few unwanted
ministerial positions will be doled out! The ministers so ap-
pointed would be handed over to vice-ministers who would
spy on them and block anything they tried to do. Could this
be called a coalition government? The Kuomintang and its

COMMENTARY

spokesman Sun Fo are just trying to set a trap to entice mem-
bers from other parties to nominal participation in the present
Kuomintang Government, so that they can loudly proclaim
that they have formed a coalition. They are seeking for a
deceptive solution to our problems. With regard to the Na-
tional Assembly, delegates must be elected by the people
under a coalition government. The present delegates were
appointed by Chiang Kai-shek and the two Chen brothers,
and cannot be recognized. After the coalition government is
formed., it should promulgate an electoral law, and the new
delegates should be elected according to that law.

C In conclusion I want to tell you a story. General Kuan
Lin-cheng once told me that Professor Ch'ien Tuan-sheng
was a Communist. I asked him how he knew this. He replied
that in one of his speeches. Professor Ch'ien had referred to
Chiang Kai-shek as Mr. Chiang instead of c The Leader' and
had described him as 'senile. 5 If this makes Professor Ch'ien a
Communist, I do not know what I shall be called after this
speech. But we who love our country and the truth, and who
do not wish to be slaves, must not hesitate to speak up. Our
consciences, our education, and all that our great teachers
have taught us, leave us no other course but to speak loudly
in this time of serious national crisis."

No appraisal of Chinese Economic Theory can fail to point out
that if the theories expressed in this book remain the directives
for China's future development, the Chinese economy can
only become a duplicate of the pre-war economic structure of
Japan. Japan also limited her "borrowing" from the West to
the technological field, and succeeded in grafting a bureau-
cratic, government-controlled heavy industry upon a semi-
feudal agrarian base. In modern Japan, the interlocking of
landlordism, banking, and government resulted in highly
centralized control by a small ruling oligarchy, and Japan's
industrial achievements were accomplished at the cost of an
impoverished peasantry, a large surplus agricultural popula-

; COMMENTARY 3 2 1

tion, a severely limited internal market, and low living stand-
ards for the vast majority of the Japanese people. It is now
generally recognized that the pressures of this unhealthy in-
ternal economy were among the major forces that launched
Japan on her campaign of world conquest.

Admittedly, conditions in China today are very different
from those in which Japan undertook to modernize her eco-
nomic structure at the end of the last century. But to retain
a backward, semifeudal agrarian base, which in turn supports
a landed bureaucracy that dominates the government and
controls economic development to suit its own ends, cannot
solve China's problems nor promote the peace and prosperity
of the world. It can only serve to develop an economy as un-
balanced and unhealthy as that of pre-war Japan. Only when
the stranglehold of the landed bureaucracy is broken by a
radical modification of her present land system can China
hope to develop a free and modern industrial and agricultural
system. Only then can she profitably undertake such projects
as the harnessing of the Yangtze River for power, and the
large-scale construction of railroads, public utilities, and mod-
ern factories. And only then can the economy of China com-
plement the economies of the United States and other indus-
trial powers to the mutual benefit of all countries.

The program of economic development envisaged in Chi-
nese Economic Theory cannot possibly achieve the genuine mod-
ernization of China's economic structure, nor provide the
basis for an expanding trade between China and such in-
dustrial nations as the United States. There is ample evidence
that private American business interests are hopefully plan-
ning to participate in the future industrial development of
China. What is surprising is that these interests continue to
envision vast industrial opportunities in China, without regard
for the fact that China cannot possibly provide a prosperous
market without fundamental changes in her agrarian system.
So long as the great majority of the Chinese people are con-
demned to abject poverty by an outmoded and oppressive

322 COMMENTARY

land system, there can be no adequate market for the products
of modern factories; no extensive use of power or transport
facilities; and no consumers' market in any way commensu-
rate with the size of the Chinese population. To embark on
such an ambitious project as the Yangtze River dam in China
today,, before the land system has been sufficiently modernized
to ensure consumers for the proposed output of electric power,
is putting the cart before the horse.

This is all the more true in view of the fact that the eco-
nomic philosophy of the present rulers of China openly calls
for the preservation of the existing agrarian system as the
basis of China's future economic structure. Although spokes-
men for China's ruling bureaucracy are constantly emphasiz-
ing that their country would be a profitable field for American
capital investment, the cold facts of the case indicate that
these landed gentry have no real interest in promoting Chi-
nese industrialization. How else can we explain their re-
luctance to invest their own wealth in their own country?
Reliable estimates place the total of Chinese cash deposits in
American banks, including both open and hidden accounts,
at approximately two billion American dollars. It is also well
known in Washington that almost all of the proceeds from
wartime and post-war American loans to China have either
found their way into the pockets of high-ranking Chinese
bureaucrats or have been used to support civil war. These
facts suggest that the members of China's ruling clique have
no desire to bring peace to China nor to facilitate industriali-
zation, but prefer to keep their wealth abroad, or use it to
speculate in land, currency, and commodities.

Harley Stevens, writing in the Far Eastern Survey for Sep-
tember 26, 1946, on the basis of a recent trip to China as repre-
sentative of a major American oil company, points out that the
growth of what he describes as "bureaucratic capitalism" in
Kuomintang China has already caused "many Chinese busi-
nessmen and industrialists to side with the Chinese Communist

COMMENTARY 323

party In the struggle for the democratization of the National
Government. 3 ' Mr, Stevens reports that "new government
corporations have been organized during the past few months
at the rate of one or more a week. As soon as they are organ-
ized, private interests tend to be either prohibited by law from
participation or frozen out by the politicians in control of the
purse strings." In his view, "unless present tendencies are
checked and Chinese private capital obtains greater influence
in government policies through participation in a more widely
representative government, peace in China will find bureau-
cratic capital firmly entrenched in all strategic industries in
areas other than Communist. These strategic economic posi-
tions will be employed to further the growth of bureaucratic
economic interests at the expense of a broad national economy
dominated by private enterprise. These developments and
their significance appear to be neither appreciated nor under-
stood, except in China, by those who insist on all out support
of the Kuomintang. 53

As noted previously in this commentary, the Chinese landed
gentry gained their dominant political power as a result of
Japan's capture of the industrial centers along the Chinese
coast and the Chinese Government's forced retreat into the
backward, rural areas of the interior. With the end of
the war and the re-establishment of Chinese control over the
coastal areas, one might have expected a resurgence of the
power and political influence of the native industrialists and
bankers that would lead the Government to adopt a more
realistic approach to China's economic problems. As of the
autumn of 1946, however, the native industrial-banking group
had not made much headway in breaking the monopoly of
power acquired by the landed gentry during the war years.
The latter had been quick to move in on the coastal areas and
take over Japanese and puppet-controlled enterprises, and
those native industrialists that managed to salvage some of
their pre-war properties found themselves confronted with

324 COMMENTARY

the competition of Government-subsidized concerns, con-
trolled by the landed gentry and the comprador class or their
representatives.

Whether or not these landed gentry and compradors will
be able to keep the upper hand over the native industrialists
and financiers of the coastal cities remains an open question.
But it is certain that if they do, it will constitute a serious set-
back for China. Only a decisive change in the Chinese political
and economic structure that will remove the landed gentry
and compradors from political power can open the sluice
gates for large-scale investment in the industrialization of
China, in which all native as well as friendly foreign capital
can play a progressive role. It is surprising that American busi-
ness does not see through the deception behind the constant
appeals of China's ruling bureaucracy for American capital
investment in China. For even the die-hards in American busi-
ness circles must be aware that they cannot sell much to a
poorhouse, regardless of the extensive privileges granted them
in the new China- America trade treaty.

If China? s Destiny and Chinese Economic Theory were merely
academic exercises in writing Chinese history, they would be
no more of a menace than thousands of Ph.D. theses, now
gathering dust in the libraries of the world. But the fact is
that these books are being taught in the key political training
centers of China; that thousands of Chinese students are being
examined and tested for their acceptance of this ideology; and
that China's Destiny specifically states that anyone that does
not accept these theories must be destroyed. The statement
in China's Destiny that if the opposition forces do not submit
to Kuomintang control, "no reasonable solution can be
found/' is a very thinly veiled threat of civil war.

As a matter of fact, the Central Government of China
began its war against all opposition forces immediately after
V-J Day; against Communist-led forces by military opera-
tions, and against opposition in Kuomintang areas by terror-

COMMENTARY 325

Ism and assassination. Prior to the Japanese surrender, the
vast majority of foreign civilian and military observers in
China were of the opinion that, left entirely on its own, the
Chinese Government would be compelled to yield to the
overwhelming demand for the institution of a democratic
coalition government, and that there would be no civil war
because the Kuomintang regime could not command suf-
ficient popular support for such a project. But the leading
militarists of the Chinese Government, together with a few
high-ranking American generals, thought otherwise. They
felt confident that the Central Government armies were
strong enough militarily and had sufficient popular support
to win quickly in a civil war.

The events of the first few months after V-J Day proved the
fallacy of this belief. In the province of Shansi, the Japanese
surrendered their forces to General Yen Hsi-shan, whose
troops had actually been under Japanese direction since
February, 1944. General Yen then launched an attack against
the Communist-led Eighth Route Army and suffered a severe
defeat, losing about four thousand killed and eleven thousand
captured. In the Hopei-Honan area, the Kuomintang armies
also attacked Communist-led forces and captured considerable
territory with Japanese assistance, but the Eighth Route
Army counterattacked and surrounded three Kuomintang
armies the New 8th, the i3th and the i4th. The New 8th
Army, including both officers and troops, promptly went
over to the Communists, and the i3th and I4th armies sur-
rendered. It is estimated that the Kuomintang lost fifty thou-
sand troops in this Honan battle (October 30, 1945)- Kuo-
mintang forces and Mongolian puppet troops under General
Fu Tso-yi were also badly defeated in the North Shansi-
Suiyuan-Chahar campaign, and were forced back from Kal-
gan, which the Communist-led Eighth Route Army had cap-
tured from the Japanese on August 1 7th. In fact, on all occa-
sions when the Kuomintang forces fought on their own against
the Communist-led troops, whether in Manchuria, Shantung,

326 COMMENTARY

Hopei, Suiyuan, or elsewhere, they were defeated. Only when
they were supported by American troops, munitions, and
transport facilities did they make any headway.

In China's Destiny, Chiang Kai-shek criticizes the Manchu
Government because when it was "beset internally by popular
revolutionary forces and externally by pressure from the for-
eign powers, it chose to yield to the demands of the foreign
nations." He also attacks the Manchus for clinging to the
policy that "it is better to give to friends than to one's own
slaves." Yet what are he and his followers doing, if not so-
liciting foreign (i.e., American) aid in suppressing popular
opposition to the Kuomintang dictatorship? It may come as
a surprise to most Americans to learn that the total American
financial aid given or earmarked for China during the first
year following V-J Day amounted to approximately three
billion American dollars a sum far greater than the assist-
ance given China during the entire war. This total included
an estimated one billion dollars of lend-lease, which China,
alone of all our wartime allies, continued to receive on war-
time terms. It also included an ear-marked five-hundred-mil-
lion-dollar Export-Import bank credit, and further loans
scheduled to enable the Kuomintang Government to pay for
surplus American military equipment and supplies, valued at
from seven hundred to eight hundred million dollars, that
were to be turned over to the Chinese. This is exclusive of the
plan to turn over to the Chinese Government two hundred and
seventy-one U. S. Navy combat vessels, with American navy
personnel to train Chinese crews to man these vessels, as well as
the $800 million worth of surplus military goods on Okinawa*
Another example of American support of the Kuomintang
regime which has not received sufficient publicity in the
United States is the fact that in the first year following V-J
Day, the American Government trained and equipped forty
Kuomintang divisions, as compared with twenty divisions
trained and equipped by the United States during the entire
war. It is against the background of such facts that one must

COMMENTARY 327

evaluate Chiang Kai-shek's criticism of the Manchu dynasty
for its supine reliance on foreigners, and his exhortations to the
Chinese people to cultivate a spirit of independence and self-
reliance.

Any commentary on China's Destiny and Chinese Economic
Theory would not be complete without a very positive state-
ment that the author has completely perverted the teachings
of Sun Yat-sen. Both the books under discussion consistently
quote Sun Yat-sen out of context, and without reference to
one of his two major aims. Sun Yat-sen was determined to
free China from foreign domination, but he was equally de-
termined to free the Chinese people from the stranglehold of
feudalism that the present Kuornintang leadership is trying
desperately to revive, even though in a modernized form.
Chiang Kai-shek's effort to picture Sun Yat-sen as a staunch
and enthusiastic exponent of the teachings of China's ancient
sages has no foundation in fact.

A well-known scholar of the Kuomintang, T. C. Woo, in
his book, The Kuomintang and the Future of the Chinese Revolution,
comments on Dr. Sun's attitude toward the philosophies of
Confucius, Mencius, etc., as follows: "He was not in the habit
of picking up the doctrine of any great author for discussion.
Perhaps their power over him was mainly negative, in afford-
ing ground for his attack on the existing social order. . .
His work was to overthrow the then existing government, and
he found no support from the philosophers whose views had
been adapted to support a regime that he intended to over-
throw. To popularize the work of revolution, he needed to
have an intellectual basis. It is evident that this new intel-
lectual basis of his must go contrariwise to the old one. As we
all know, he was a revolutionist in thought as well as in
action."

More recent appraisers of Sun Yat-sen's political views,
notably Stephen Chen and Robert Payne in their book, Sun
Tat-sen: A Portrait, point out that from the beginning, Dr.

328 COMMENTARY

Sun "appears to have feared the emergence of a nonrevolu-
tionary group" because "when the revolution is exchanged
for politics, the vision perishes." They also note that in Sun
Yat-sen's time, the Chinese nationalist movement was based
primarily on an appeal to the needs and interests of the peas-
ants and workers, and that its program emphasized economic
and social reforms with particular stress on the freeing of
peasants from the oppression of their landlords. The implica-
tion of this and other appraisals of Sun Yat-sen's aims and
beliefs is that if he were alive today, he would have great
difficulty in recognizing the Kuomintang as the same party
that he founded and led. Certainly the knowledge that the
landlords are strongly entrenched in the seats of power, while
peasants and workers are harried and oppressed by the
Party's secret police would be enough to make the late Father
of his Country turn over in his elaborate tomb*

It is also worth noting that nowhere in China" *s Destiny or
Chinese Economic Theory is there any reference to the "Three
Great Policies" which, together with the Three People's
Principles, were bequeathed to the Kuomintang by Sun Yat-
sen. These three policies were: Alliance with the U.S.S.R. in
foreign affairs; a united front with the Chinese Communists
in internal affairs; and assistance to the Chinese workers and
peasants. At the time Sun Yat-sen advocated these three
policies, the Soviet Union was the only power that had re-
nounced its "unequal treaties" and was willing to aid China
in her efforts to attain national freedom and a modernized
social structure, while the Western powers and Japan were
trying desperately to maintain their control over China's
economic and political life. Were Sun Yat-sen alive today,
when both Great Britain and the United States have joined
the Soviet Union in relinquishing their extraterritorial rights,
he might well have expanded the first of his three policies to
include an alliance with all three powers in foreign policy.
The present Kuomintang leadership, however, has chosen to

COMMENTARY 329

substitute the United States for the Soviet Union as far as its
foreign orientation is concerned, and has completely aban-
doned the second and third of Sun Yat-sen's three policies.
Moreover, in seeking exclusive American aid for its own
regime, the Kuomintang bureaucracy has promoted the
thesis that without such aid,, China would overnight become
a Communist state.

In this connection, it is pertinent to recall that even during
Sun Yat-sen's lifetime, the Soviet Union had no thought of
trying to "communize" China. As Borodin, chief Russian
adviser to Sun Yat-sen, declared: "The only Communism
possible in China today is the Communism of poverty, a lot
of people eating rice out of an almost empty bowl. At present
and for many years to come. Communists and capitalists alike
in China must have the same ideal of a prosperous and much
more highly developed industrial China and a general rise in
Chinese standards of living. China is neither the producer
nor the consumer that she could be. The Chinese Nationalists
want an agrarian revolution, but they want it in order to
clear the way for China's economic development. Intellectuals
used to think that by reminding the world of China's long
civilized history, they would get her a place in the family of
nations. China has learned, since Versailles, that that family
tolerates no poor relations, even with four thousand years of
a respectable past."

Honest students of the Chinese political and social scene
recognize that Communism is not the issue in China and
that no human power can convert today's backward Chinese
economy into the basis for a Communist state. A prominent
Chinese Communist spokesman recently stated that he did
not foresee Communism as an issue in China for a long time.
And just twenty years after Borodin's statement, a similar
appraisal of China's economic needs was made by the leader
of the Chinese Communist Party, Mao Tse-tung, in his book,
On Coalition Government, published just prior to V-J Day. In

330 COMMENTARY

this book, Mao explains the Chinese Communist attitude
toward the development of private capital in China as follows:
"Some people do not understand why Chinese Communists
do not fear capitalism, but on the contrary promote its de-
velopment. Our answer is simple: to replace foreign imperial-
ist and native feudalist oppression with capitalistic develop-
ment is not only progress but also an inevitable course, for
it benefits the capitalist class as well as the proletariat. What
is superfluous in present-day China is foreign imperialism and
native feudalism, and not native capitalism. On the contrary,
our capitalism is indeed too little/'

Mao also emphasizes that the Chinese Communists will not
only "struggle for the independence, freedom, democracy and
unity of China, but will also struggle for the industrialization
of China and the modernization of her agriculture. . . . To
develop industry, enormous capital is needed. Where will it
come from? It can only come from two sources, namely the
capital accumulated by the Chinese people themselves and
from foreign loans. On condition that they abide by the laws
of China and are of advantage to the economy of China, for-
eign investments are welcome."

Today, when all the major powers have renounced their
unequal treaties, the Chinese people, if permitted to speak
freely, would undoubtedly seek and welcome the co-operation
and assistance of all friendly powers, but only on condition
that such foreign aid would have as its main purpose the
building of a politically democratic and economically inde-
pendent China. As a matter of fact, President Truman him-
self, in his statement of December 15, 19455 outlined accu-
rately those conditions. In that statement, the President de-*
clared that the United States would give economic assistance
only if China took steps to solve her internal conflicts through
the institution of a "broadly representative government" that
would give "all major political elements in the country ... a
fair and effective representation in the Chinese National Gov-

COMMENTARY 33 1

ernment." When China had demonstrated that she was ad-
vancing toward peace and unity along these lines, the United
States would be prepared to consider loans and credits that
would "contribute to the development of a healthy economy
throughout China and healthy trade relations between China
and the United States."

Unfortunately, this stated policy was not observed in prac-
tice, as evidenced by the extensive financial aid extended to
the Chinese Government by the United States before any of
the conditions stipulated by the President had been fulfilled.
But the American people can still hope that their Government
will realize, before it is too late, the dangers inherent in back-
ing a regime that by its own words and actions stands re-
vealed as the proponent of all that is antidemocratic and as
the major obstacle to the development of mutually beneficial
relations between China and the United States a regime
that is doing everything possible to foment discord between
the United States and the Soviet Union, and a regime, more-
over, that has aroused the vigorous opposition of all liberal
elements in China, and that maintains its power only because
it has managed to secure American military and financial
support.

It is not easy to forecast the future development of China.
But if the Kuomintang regime obtains the necessary aid to
continue its undemocratic system of repressive government
and its civil war policy for any prolonged period, China can
only become once again a football among the, powers; her
freedom from the bondage of the unequal treaties will be
more theoretical than real; and the development of a healthy
Chinese economy will once more have received a serious set-
back. Chiang Kai-shek maintains in all his writings that
China's destiny "rests with the Kuomintang." But the truth
is that China's destiny rests with all the people of China, who
alone can form a genuinely representative government in-
volving the participation of every section of Chinese society,

332 COMMENTARY

and thus give reality to Sun Yat-sen's dream, which he chose
to express in the words of Lincoln a "government of the
people, by the people, and for the people.' 3 Only such a gov-
ernment deserves support, and only such a government can
fulfill China's real destiny as a major factor in building world
peace and prosperity.

GUIDE TO THE PRONUNCIATION OF
CHINESE NAMES

The Chinese differentiate between the following aspirated and
imaspirated consonants: p, t, k, ch, ts. For f read b; for t read d;
for k read g; for ch read j; and for ts read &. For />', * 5 , F, cA 5 , ?/,
read/?, ^, k, ch, ts, as in normal English pronunciation* For example,
for Cffing, read ching, and for CMng, readjfn^. Also 3 read j as r,
As 1 as sh, ih as , <^A as er> en as wn, eng as wn^, OM as oh, and as qy.

333

CHRONOLOGY OF CHINESE DYNASTIES

Hsia Dynasty (legendary) c. 2205-^;. 1523 B.C.

Shang or Yin Kingdom c. 1523-^. 1027 B<G -

Chou Dynasty c. 1027-221 B.C.

Clfun Ch'iu Period 722-481 B.C.

Ch'in Dynasty, 221-207 B.C.

Han Dynasty 207 B.G.-A.D. 221

Three Kingdoms (San Kuo) 221-265

Tsin Dynasty 265-316

Northern and Southern Empires (Nan Pel Chao) S 1 ?^^

Wei Dynasty 386-556

Sui Dynasty 589-618

T'ang Dynasty 618-906

Five Dynasty Period (Wu Tat) .907-960

Sung Dynasty 960-1 127

Chin and Southern Sung Dynasties 1 127-1280

Yuan (Mongol) Dynasty 1280-1368

Ming Dynasty 1368-1644

Ch*ing (Manchu) Dynasty 1644-191 1

Republic 1911-

33S

INDEX

(Because of the numerous Chinese names, this index is strictly alphabetical,
with the chief section of each entry regarded as a unit. Thus hyphens, apos~
tropheSy and spaces between parts of names have been disregarded in deciding
alphabetization,)

Abe, Genki, 143

Addendum Treaty, Sino-American

f (1880), 55

Amerasia (New York), 24

Analects (Confucius), 265, 304; see

also Confucius
Anarchism, 203
Anglo-Japanese Alliance (1902,

1905), 62
Anglo-French Expedition (1858),

54>55

Anhwei clique, 71
Antung-Fengtien Railroad, 73
August i ath (1937) incident, 142
Axis (German-Italian-Japanese tri-
partite alliance), 143, 144, 147,
148

Banner Troops (Manchu), 44, 49
Basic Sino-Japanese Agreement on

Matters Concerning the Three

Eastern Provinces (1905), 64
Between Tsars and Laughter (Lin

Yutang), 22, 23
Blue Shirts, 119 , 302
Book of History, quoted, 244
Book of Odffs, 3 r and n; quoted, 243-4;

251
Book of Rites (Li CM), quoted, 230

and n, 245, 251, 265; quoted, 269;

273, 289-91

Borodin, Mikhail Markovich, 329
Boxer Rebellion (1900), 60 andn
Buddhism, 46, 95, 192, 193, 195

CC CC" clique, 20, 302, 311

Central Armies, 108, 225 n

Central Daily News, 2 1

Central (Nationalist) Government,
11-12, 14, 17, 19, 21-2, 24-5, 50,
67, 76, 79, 81-2, 99 >2, 106, 1 08,
117, 122, 123, 124, 125, 126, 127,
128, 129, 130, 131, 132, 134, 135,
138 andn, 139, 141, 142, 146, 149,
*5> i5 x *54> *55> *So, 226-7,
^97> 3> 3 OI 34> 35> 3 2 3>

Central Political Committee, 319
Central Political Training Institute,

20,24
Chang Chiang-ling (Chang Chu-

cheng), 46, 253; quoted, 257, 258,

266 n

Chang Chu-cheng, 194, 207, 276
Chang-ch'un incident (1919), 81
Chang Hsi-jo, 312; quoted, 313-20
Chang Hsueh-liang, 301
Chang Hsun, Chinese Emperor, 183
Changkufeng, incident of (1938),

*43

Chang T'ai-yen, 50 n
Chang Tsai, 193, 253
"Chapter on Rites" (Hsun Tzu),

quoted, 266
Chefoo Treaty, Sino-British (1876),

55

Chen, Stephen, 327-8
Ch'en Chung-ming, 117, 129

337

338 INDEX

Cheng Cheng Kung (Koxinga), 38

Cheng-chia-tun incident (1916), 81

Cheng Hao, 253

Cheng I-ch'uan, 193

Ch'eng Ming-tao, 193

"Chengtu" incident, 133

Cheng Yi, 253

Chen Kuo-fu, 302, 311, 31 8, 319

Chen Li-fa, 302, 311, 312, 3183 319

Chen Pai-ta, 22772

Chen Pao-ying, 24

Chen Pu-lei, 21

Ch'en Tu-hsiu, 120, 121

Chen Tung-po (Chen Liang), 253

Chia Ch'ing, Chinese Emperor, 47

Chia I, quoted, 206

Chiao-Ao Treaty, Sine-German
(1898), 61

Chiang Kai-shek, 16, 18-25, 4 n >
43> 98/2? 11772, 11972? 12072,
121 72, 138 72, 225 n, 298, 300, 301,

32, 35> 3 6 > 38, 3 12 , 3*3 3 3*7*

318-19, 320, 326, 327, 331

broadcast (January i, 1943)9

quoted, 1027

Chiang Kai-shek, Mrne., 317
Chia Wu, Chinese Emperor, 51
Ch'ien Lung, Chinese Emperor, 45,

47, 48

Ch'ien Tuan-sheng, 320
Chihli (Hopei) clique, 71, 72
Chi Jan, 252
China Revolutionary Party, 70, 108,

IIOII

China's Destiny (Chiang Kai-shek),
16-17, 18-25, S 2 fl, 170*9 I75-6*
227 72, 243 72, 245 72, 255 72, 257 TZ,
25872, 26472, 26772, 27177, 295-
302, 306-8, 311, 312, 324, 326,

327, 3 2 8

Chin dynasty, 38 n

Ch'in dynasty, 31 and 72, 37, 85, 96,
255 72, 269-70, 274

Chinese Communist Party, see Com-
munists, Chinese

Chinese Communists, The (Gelder),

227 72

Chinese Eastern Railroad, 62, 64, 80

Chinese Eastern Railroad Guards,
62

Chinese Economic Theory (Chiang Kai-
shek), 18, 24-5, 295-8, 308-13,
320-1, 324, 327, 328

Chinese people (racial group), 30 n,
33, 40, 50 72

Ch'ing dynasty, see Manchu dynasty

Ch'ing Pang (Green Circle) secret
society, 1 1 9 n

ching fien system, 271 n

Ch'in Shih Hwang, 31 n

Ch'i-tan (Liao) clan, 33 and n, 37

Chou, Duke, 251, 252, 257

Chou dynasty, 37 n, 38, 191, 251-2,

266 72

Chou Li, 252 72

Chou Shu, 39

Christianity, 95-6

Chuan Hsiu, Chinese Emperor,

24772

Ch'u dynasty, 274
Chu Hei, 253
Chu Hsi, 46, 194, 272
Chu-ko Liang, 192-3, 194; quoted,

207
Ch'un Ch'iu period, 252, 253, 255,

268, 274
Chung Cheng Publishing House

(Chungking), 19
Clark, John Bates, 261
Commercial Treaty, see Sino-Ameri-

can Commercial Treaty; see also

Sino-Russian Commercial Treaty
Communist (United States), 227 n
Communist ideas, 98, 100, 127, 203,

261, 279, 299, 329
Communist (Chinese) Manifesto of

1937, 13872
Communist Party (U.S.S.R.), 108 ,

116, 329
Communists, Chinese, 15, 23, 98 ,

10872, 11572, 1x771, 11972, 120

and n, 121 and 72, 127, 138 and n,

140, 225 72, 227 72, 300, 301,

322-3, 3 2 4> 325> 3 s6 * 3 28 > 3*9>
33

Concerted Partition Policy, 63
concessions, foreign, 56, 62 , 64, 76,
78, 79, So, 81, 82, 86, 92, 127, 153,

igOj 212, 241, 300

Confucius (K'ung Fu-tzu) and his
teachings, 13-143 15, 16, 22, 46,
95 and n; quoted, 187; 193, 19412,
195, 196; quoted^ 197 and n; 230/1,
244* ^51, 252-3, 255 n, 256, 257,
264 n, 265, 266 n, 267; quoted^ 268,
270, 272 n; quoted, 273; 298, 303,
304, 306, 327

"continental policy" of Japan, 128,
141, 142, 144

coup d y Sta (1898), 59, 78

Cultural Branch (Second Depart-
ment, Chiang Kai-shek's Personal
Headquarters), 21

Dalai Lama, 77

Democracy, 202, 208

Democratic League, 15, 296, 312.

"Discourses on Salt and Iron," 252

"Doctrine of the Mean," quoted, 187,
190, 244-5; 2 49

Documentary History of Institu-
tions, 39

Draft Constitution (Kuomintang),
17071,315

economic theory, ancient Chinese,

251-9, 264-76

economic theory, Western, 259-63
Education Ministry of (Kuomin-
tang), 14

Eighth Route Army, 227 n, 325
Eight Viewpoints (Kuan Chung),

quoted, 253

Empress Dowager, see Tsu Hsi
"Equalization of Land Rights"

(Sun Yat-sen), 258
Expedition of the Eight Allied

Powers (1900), 58, 60, 63
Export-Import Bank (U. S.)> 3^6
extraterritoriality, 51, 54, 56, 76,
151, 152, 328

INDEX 339

29, Fan Chung-yen (Fan Wen-Cheng),

*93? *94? ^55
Far Eastern Survey, 322
Fascism, 198, 199, 263 n, 26472, 281,

308

Fengtien (Manchurian) clique, 71
First World War (1914-18), 70-1,

76, 98/2, 108 ra, 116, 127, 184, 201,

231, 234, 242, 260, 262, 281
"Five Emperors," period of, 30

and n, 39
Five Power Constitution, 113, 169,

170/2

Foochow incident (1919), 81
Foreign Affairs, Ministry of, 132
Foreign Affairs Yamen, 53, 57
Foundation of Economics (Spann), 259
"Four Essays" (Fang Chung-yen),

193

Fu & Co., 6 1
Fu Gh 3 ing-chu, 46, 196
Fu Hsi, Chinese Emperor, 247
Fundamentals of National Reconstruction

(Sun Yat-sen), 113, 124
Fu Tso-yi, 325

Gelder, Stuart, 227 n

"General Settlement of Cases Pend-
ing between China and Russia"
(1924), 154

Genghis Khan, 33

German-Soviet nonaggression pact
(1939), 143

Gordon, Charles George ("Chi-
nese"), 194/2

Government of China, see Central
Government

Grand Canal (Sui dynasty), 96

"Great East Asia War Strategy"
(Japanese), 147

"Great Harmony, The" (Ta Tung),
see Book of Rites

"Great Learning, The" (Ta Hsueh),
see Book of Rites

Great Truth to Dispd Illusions, 45

Great Wall of China, 96

Green Battalions, see Banner Troops

INDEX

Green Circle, see Ch'ing Pang

Guidepost, 121

"Gunboat Chungshan^ incident of

the" (1926), 117
"Gunboat Policy," 80, 86

Han dynasties, 31 and n, 37, 38, 39,
45, 47, 48, 49, 53, 85, 171, 192,
194, 195, 202, 252 and 72, 255 n,
269-70, 271 and n, 275, 286, 288

Hankow Concessions incident
(1925), 81, 118

Han scholars, 16, 48, 53, 95, 112

Han Shu, 39

Hanyang-Tayeh-Pinghsiang Iron
Company, 73

Han Yu, 195-6

Hay, John, 1 1

Hideyoshi, Toyotomi, 276

Hiranuma, Baron Kiichiro, 143, 145

History of Liao, 39

Hitler, Adolf, 100 n, 143, 243 n, 300,
306

Hitler Youth Corps, 302

Hobson, John Atkinson, 260, 262

Ho Shen, 48

Ho Ying-chin, 317

Hsia dynasties, 30 n y 32, 39, 96,
247 n, 268

Hsiang (Hunan) Militia, 49

Hsien Feng, Chinese Emperor, 194

Hsien Pei clan, 32, 38 n, 39

Hsin-Ch'ou Peace Treaty (1901),
60, 62, 63, 64, 65, 79-80, 84

Hsing Chung Hui (Society for the
Regeneration of China), 49, 59

Hsin Hai Revolution, see Revolution

(I9 11 )

Hsiung Nu clan, 32, 37, 39, 45
Hsi-yung tribes, 37 and n
Hsuan Cheng Yuan (government

department), 38
Hsuan T'ung (Henry Pu-yi), Chi-

nese Emperor, later known as

K'ang Teh, Emperor of Man-

churia, 67
Hsuan Wang, Chinese Emperor, 37 n

Hsu Kuang-ch'i, 46

Hsun Tzu, 252, 266 and n; quoted,

267, 273
Hua Hsin Hui (society of Chinese

students in Japan), 50 n
Huan, Duke, 253 n
Huang Chueh-tzu, quoted^ 91
Huang Li-chou, 46, 47, 1 96
Huangpu (Whampoa) Academy,

129
Huangpu Treaty, see Sino-French

Huangpu Treaty
Huang Ti, Chinese Emperor, 39,

247 and n

Huei-ch'un incident (1920), 81
Hu Lin-I, 194
Hung Hsien, Emperor, see Yuan

Shih-k'ai

Hung Hsiu-ch'uan, 52
Hwai (Anhwei) Militia, 49

Industrial Plan (Sun Yat-sen), io8n,

156, 174-82, 220, 286-8
Industrial Revolution, 259, 278
Internationalism, 198, 199
"Ishimoto" incident, 133

Japanese, 42, 45, 48, 54, 63, 71, 72-
5, 77, 78, 80, 81, 86, 91-2, 121 n,
123, 129 n, 132, 133, 134 n, 135,
141, 142-8, 228, 233, 235, 242,
300-2, 304, 305, 312 n, 317, 320-

x 323

Joint Declaration against Aggression
(1942), 146

K'ang Hsi, Chinese Emperor, 45
K'ang Yu-wei, 59
^Capital, Das (Marx), 261
Kautsky, Karl Johann, 260
"Ke-chih" (study of physical sci-
ence), 53

Kellogg, Frank Billings, 1 18
Kiaochow-Tsinan Railroad, 72
Kirin-Changchun Railway, 73
Konoye, Prince Fumimaro, 142,

143, 144, 145
Konoye declaration, 143

INDEX

341

Koreans, 45, 198
Ku, Chinese Emperor, 247 n
Kuan Chung, 252, 253, 254-5, 270
Kuan Fu Hui (society of intel-
lectuals), 50 n
Kuang Hsu, Chinese Emperor, 51 n,

59 73, 79

Kuan Lin-Cheng, 320

Kublai Khan s 33

Kung, Mme. H. H., 317

Kuomintang (People's National
Party), 13, 14, 15, 17, 18, 19, 20,
21 j 23, 24, 40 n, 50 and n, 68, 69,

7 7 2 > 95 9 8 *> * 8 and *9>
1 10, 1 12, 1 14, 1 15 and n, 1 16, 117,
11971, 120, 121, 122, 125, 126,
130, I34H, 136, 1381?, 140, 156,

185, X88, 215, 2l6, 217, 222,

223, 224-5, 228-9, 2 55 %$7 n
295, 296, 297, 298, 299, 300-1,
302, 304, 305, 306, 307, 308, 310,
30, 312, 313, 3:4, 315, 316, 317,

3*8 3*9 32> 3 2 ^ 3 2 3 324* 3*S

326, 327, 328-9, 331

Central Executive Committee, ax,

3*7

Declaration of Reorganization
(1923), 1 08; quoted) in

First Congress (1924), 4012, 108,
109, ixa, 114 n y ng

General Headquarters (U. S.), 23

Provisional National Congress,

*37
Third Plenum of the Central

Committee, elected by Fourth
Congress, 131
Kuomintang and the Future of the Chinese

Revolution, The (Woo), 327
Kuomintang Youth Corps, see San

Min Chu I Youth Corps
Kuo Sung-ling, 78
Ku Txng-lin, 46, 47, 196
Kwangchowwan Treaty, see Sino-

French Kwangchowwan Treaty

labor unions, ugn, 134*2
zrjaire, 277-9, 282, 285

"Lama" religion, 48

Lao-hsi-kai incident (1915), 81

Lao-tzu, 195, 232

"Law to Begin the Enforcement of
Local Self-Government, A," 156

League of Nations, 234

Legalistic (Juristic) School, 244
andn, 252, 253, 257, 273

Lenin, Nikolai, 260

Liao Yao-hsiang, 317

Liberal (Democratic) ideas, 98, 100,
127, 203, 299

Li Chih-tsao, 46

Li Ehr-ch'u, 46, 196

Li Fan Yuan (government depart-
ment), 38

Li Hung-chang, 53, 79, 194 and n,
298

Li Kung-po, 312

Lincoln, Abraham, 100 n; quoted,

332

Lin Tse-hsu, 91
Lin Yutang, 22, 23
List, Georg Friedrich, 259, 262
Li Tze-ch'eng, 44
Liu Yuen, Chinese Emperor, 272
Li Yun, quoted, 88
Lo Chiu-yuan, 253
Lo Lung-chi, 312
Lu Hsin-wu, quoted, 207
Lungchow Railroad, 61

Mackay Treaty (1902), 64
Ma Fu-po (Ma Yuan), 170
Manchu (Ch'ing) dynasty, 37, 38,
40 n, 44, 45, 46, 47, 49, 51-2, 53-
4> 56, 57* S9> 60, 61, 64, 65, 67, 71,
76, 85, 95, 103, io8n, 109, 112,
134 n, 135, 151, 157, 158, 167
andn, 179, 183, 184, 185, 189, 194
andn, 196, 199, 202, 203, 236, 298,
299, 306-7, 326, 327
Manchuria, Sino-Japanese Agree-
ment concerning (1905), 63
Manchus, 30 n, 33, 34 n, 37, 38, 39,

40 and n, 44-50, 307
Mao Tse-tung, 329-30

342

"Marco Polo

INDEX

incident

Bridge"

$> 142

Marshall, Alfred, 260 and n
Marx, Karl, and Marxism, 241, 260,

261, 262, 266, 279, 280, 282, 285
Matsuoka, Yosuke, 145
May 4th (1919) Movement, 71, 98

and n, 203, 299
Ma Ying-chu, 312
Meiji (Mutsuhito), Emperor of

Japan, 142

Mein Kampf (Hitler), 19
Mei Wen-ting, 46
Mencius (Meng-tzu) and his teach-

ings, 14, 1 6; quoted^ 88; 95; quoted,

187, 191; 195; quoted, 198, 206,

230, 249, 250; 251, 252 andn, 256,

264 n, 266 n; quoted, 267, 268; 270;

quoted, 273; 274, 327
Miao-chieh incident (1920), 81
Ming dynasty, 37, 38, 44, 45, 46, 47,

95, 135, 193-4, 196, 202, 253, 257,

271, 275-6, 287, 288
Min Sheng Chu I, see People's Liveli-

hood
Mohammedans and Mohammed-

anism, 30 n, 39, 40, 47, 49, 95
Mongol dynasty, see Yuan dynasty
Mongols, 30 n, 33, 34 n, 37, 39, 40,

47> 48, 77, 37

"most-favored nation" policy, 80
Mo Ti, 195

Miiller, Adam Heinrich, 263 n
My Country and My People (Lin

Yutang), 23-4

"Nakamura" incident (1931), 133
Nanking Incident (1926), 118, 119,

300
Nanking Treaty, see Sino-British

Treaty of Nanking
National Congress (1924), see Kuo-

mintang, First Congress
Nationalism, 199, 202, 203, 208
Nationalist Government, see Central

Government

Nationalist Revolution, see Revolu-
tion of the Kuomintang

Nationalist Revolutionary Army,
117, 118, 119, 121, 123, 124, 130,

138

Declaration of, 118
National Military Council, 24, 138

Adjutant's Office of, 24
Navy Yamen (Office of Naval

Affairs), 53
Nazis and Nazism, 198, 199, 235,

243 n, 263 n
New Economic Policy (U.S.S.R.),

116

New Fourth Army, 227 n
"New Laws," 255 n
"New Life Movement," 17, 134,

166-7, 303
New Touth, 121
"Nine Power Treaty" (1922), 76,

118

Nomonhan, incident of (1939), 143
nonaggression treaty between China

and the Soviet Union (1937), 141
Northern Expedition of the Revolu-
tionary Armies (1926-8), 9872,

116-24, 125, 129, 132, 139, 153,

299
Nuchen (Chin) clan, 33, 39

"Office to Serve and to Obey," see

Cultural Branch
On Coalition Government (Mao Tsc-

tung), 329-30
Open Door Policy, 63, 76
opium, 91-2
Opium War (1840), 51, 54, 91, 96,-

97

Outer Mongolia, 77, 315
Ou-yang Hsiu, 193

Pai Km, 252
"Pakhoi" incident, 133
Panchen Lama, 77
Pan Ting-yuan (Pan Chao), 170
pao chia system, 87-8, 134, 167 andn
168, 255 n, 257, 303, 304, 310

INDEX

Payne, Robert, 327-8
Peiping-Hankow-Canton Railway,

142, 304

Pciping National University, 2 1

Peiyang clique (northern mili-
tarists), 71, 72

Peking (Peiping) -Mukden Railroad,
79, So, 152

Peking Treaty, see Sine-Austrian
Peking Treaty; see also Sino-Bel-
gian Peking Treaty; see also Sino-
Italian Peking Treaty

People's Assembly, 315

People's Livelihood, Principle of the,
127, 277,278, 282-8,315

Peopled Political Council, 137, 313,
316

Plans for Industrialization (Sun Yat-
sen), 127, 129, 171,173-4

Plans for National Reconstruction (Sun
Yat-scn), 113, 124, 126

Political Consultative Council, 319

Port Arthur-Dairen Treaty, see Sino-
Russxan Port Arthur-Dairen
Treaty

Program for General Spiritual Mobiliza-
tion of the People, 165

Program for National Economic Re~
construction (Chiang Kai-shek), 171

Program for the War of Resistance and
National Reconstruction} 169

Program, of National Reconstruction
(Sun Yat-sen), 181

"Protect the Emperor Party," 59

Rebellion of the Yellow Turban, 1 92

re-construction, problems of revolu-
tionary national, 183-229

Red Army (Chinese), see Com-
munists, Chinese

Reform Movement of 1898, 59

"Regulations for Controlling For-
eign Nationals in China/ 3 132-3

"Regulations for Foreign Represen-
tation in Joint Trials" (1886), 56

"Regulations for Starting to Practice
Local Self-Govcrnment," 125

343

"Regulations for the Employment of
Foreign Subjects in Tariff Af-
fairs" (1864), 57

Reichswehr, loon

Renewed Treaty, Sino-Russian
(1861), 55

"Republic of Five Peoples," prin-
ciple of, 50, 67

Resistance and National Recon-
struction, Program of, 137

Revolution (1911), 18, 33, 40 , 42,
51. 59. 66, 67-75, 76, 77> 83, 95,
97, 99, 126, 130, 183, 184, 185,
186, 189, 190, i94, 196, 203,

206 5 2IO

Revolutionary Party, 184

Revolution (Nationalist) of theKuo
mintang (1925-7), 50, 98 n, 105,
107, 1 08, 109-12, 113, 114, 115,

Il6, 117, Il8, I2O, 121, 122, 125,

I2 9* 13* *35> *3 6 > *37> *39> 1 55~
6 *57> *5 8 > i59> l6o > l8 3> *99>

203, 204, 207, 217, 2l8, 222, 223,
224, 225, 226, 228, 235, 236, 237,

242, 299

Ricardo, David, 260, 262
Rousseau, Jean-Jacques, 209
Russian Revolution (1917), 76, 154,

260, 281 n

Russo-French Alliance (1897), 62
Russo-Japanese War (1904), 63, 64,

San Min Chu I (Sun Yat-sen), see

Three People's Principles
San Min Chu I Youth Corps, 216,

220, 221-2, 223, 295, 302, 303

"Second Industrial Revolution,"

242, 279

Second International, 281
Second Revolution (1913), 69, 70,

218
Second World War, 140-1, 142,

143, 146, 147, 157, 200, 220, 232-

3, 234, 236, 242, 263, 281

344 INDEX

"September i8th" incident (Japa-
nese invasion of Manchuria,
1931), 133, 141, 150

Shakee (Sha-chi), Canton, incident
(1925), 81, 118

Shanghai International Settlement
incident (1925), 81

Shanghai massacre (1927), 300

Shang Yang, 252, 255

Shao-cheng Mou, 1 97

Shen Nung, Chinese Emperor, 247

Shen Tsung, Chinese Emperor,

255"

Shih Chi, 39

Shimonoseki, Treaty of, see Sino-
Japanese Treaty of Shimonoseki

Shisenoba, Okuma, 77

Shun, Chinese Emperor, 30 n, 247 rc,

257

Shun Chih, Chinese Emperor, 45
Sino-American Commercial Treaty

Sino-Austrian Peking Treaty (1869),

55
Sino-Belgian Peking Treaty (1865),

, 55
Sino-Brazilian Tientsin Treaty

(1881), 55, 56, 57, 58
Sino-British Treaties (1898), 60
Sino-British Treaty (1846), 60
Sino-British Treaty (1902), 63
Sino-British Treaty (1943), 151, 154
Sino-British Treaty of Nanking

(1842), 51, 52, 54, 55-6, 58, 90-

1,218
Sino-Danish Tientsin Treaty (1863),

i 55.56,57558

Sino-Dutch Tientsin Treaty (1863),

55> 56, 57, 58
Sino-French (1847) Huangpu

^ Treaty, 54

Sino-French Kwangchowwan
Treaty (1899), 61
Sino-German Tientsin Treaty

(1862), 55, 56, 57, 58
Sino-Italian Peking Treaty (1866),

55

"Sino-Japanese Military Agree-

ment," 71, 77
Sino-Japanese Supplementary Navi-

gation Agreement (1903), 63
Sino-Japanese Tariff Agreement

(1930), 132
Sino-Japanese Treaty of Shimono-

seki (1895), 53, 60, 62
Sino-Japanese War (1894), 51, 53,

58, 79. 97
Sino-Peruvian Washington Treaty

(1874), 55
Sino-Portuguese Tientsin Treaty

(1862), 55, 56, 57, 58
Sino-Russian ( 1 85 1 ) Commercial

Sino-Russian Port Arthur-Dairen

Treaty (1898), 61
Sino-Spanish Treaty (1864), 55
Sino-Swedish Treaty (1908), 63
Sino-Swedish-Norwegian Treaty

(1847), 54
Smith, Adam, 259, 260
Socialism, 202
South Manchurian Railroad, 73, 78,

80
Southwest Federated University

(Kunming), 312 and n
Soviet Government (Chinese), see

Communists, Chinese
Soviet-Japanese Neutrality Pact

(1941), 144-5

Spann, Othraar, 259, 262, 263 n
Spiritual Education of the Soldiers^ The

(Sun Yat-sen), 129
"Split between Nanking and

Hankow," 121
Spring and Autumn Annals, period

of >37

Ssu-ma Ch'ien, 247 n
State Department (U. S.), 18-19
Stevens, Harley, quoted, 322-3
Su Che, 253
Su Hsin, 253
Sui dynasty, 32, 38, 85, 96, 269-70,

275
Sun Fo, 267 /2, 319, 320

Sung Chiao-jem, 70

Sung dynasties, 33, 37, 38, 45, 47,

85> 95. *34 > *35> 167 ^> *93> *94>
196, 202, 230 a, 253, 255, 272 ft,
275, 276, 287, 288
Sun Yat-sen, 16, 37 n, 39 n, 42-3;
#wto, 45; 49, 50 <z^ n, 59, 66-70;
quoted, 74, 83-4; 9512, looa, 105,
loB and n; quoted, 109-10, ixo-n,
112, 113-14; 115, 116, 117; quoted,
119; 124, 125, 126, 127, 129, 134,
*39> i5 6 " quoted, 158; 160, 163,

170, 171, 173; quoted, 179; 181,
184; quoted, 185-6; 187, 188 andn,
189, 190; quoted, 191-2; 194^
196; quoted, 198; 200; quoted, 204,
205; 206; quoted, 207, 209-10, 215;
219, 220, 237, 242; quoted, 249;
258, 272; quoted, 277, 279-80; 282,
285, 286, 288, 289; quoted, 307;

3H> 3*S> 327-B, 3^9* 332
"Sun Vat-sen's Theory" of psycho-
logical reconstruction, 163
Sung Ying-hsing, 46
Sun Li-jcn, 3 1 7
Sun Yat-sen, Mmc.; quoted, 16
i&a Tot-sen: A Portrait (Chen and

Payne), 327-8
"Supporting China's Monarchy"

(Shisenoba), 77
Su Shih, 193, 253
System and Practical Program oj the

Three Peoples Principles (Chiang

Kai-shek), 162, 208
System of National Economy (List), 259,

262

Tai Li, 11971, 302

Tai-p*ing Rebellion (1850-63), 49

mdn, 53, 67, 95, 167 n, 194 n, 271,

276 a, 298, 299, 300
Tai Tsu, Chinese Emperor, 275
Tang dynasty, 32, 37, 38, 47, 85,

171, 193, 195, 202, 268, 270, 272,
375, 276 n, 286, 288

Tao, Chinese Emperor, 247 n
Tao Hsi-sheng, 20-1, 24, 31 1, 312

INDEX 345

Taoism, 192, 195, 196

Tao Kuang, Chinese Emperor, 49,

5*> *94
Tao-Sheng Bank Agreement, Sino-

Russian (1896), 61
Tartars, 32, 33, 45, 307
Ta Yu, see Yu, Chinese Emperor
"Ten Affairs/* memorial on (Fang

Chung-yen), 193
Ten Tear Plan for National Defense

(Sun Yat-sen), 129, 286, 288
Territorial Integrity, principle of, 76
Third International, 100 n
Three Eastern Provinces (Man-
churia) Agreement, Sino-Russian
(1896), 6x

"Three Great Policies" (Sun Yat-
sen), 1 08 a, 328, 329
Three Kingdoms, period of, 32
Three People's Principles (Sun Yat-
sen), 19, 37 n, 39 a, 42 and n, 50,
59> 6 7, % 72, 75> 101, 105, 107,
109, 1 10, 112, 113, 114, 115, 122,
125, 128, 130, 131, 137, 138, 139,

140, 158, 159, 161, 185, 201, 206,

207, 208, 209, 215, 217, 219, 221,

222-3, 224, 228, 237, 289, 291-2,
3*5> 328
Three Principles proposed by Japan,

141, 143

Tibetans, 30 a, 39, 40, 47, 48, 77
Tientsin treaties, see Sino-Brazilian,
Sino-Danish, Sino-Dutch, Sino-
German, and Sino-Portuguese
Tientsin Treaty
Tientsin, Treaty of (1858), 51, 52,

55> 56, S7> 5** 76
Tiger Gate Treaty (opening Treaty

Ports, 1843), 54
Tojo, Hideki, 145
Toyama, Mitsuru, 100
treaties, "equal," 149-81
treaties, "unequal," 51-67, 76-107;

see also under Sino-
Treaty of 1901, see Hsin-Ch'ou

Peace Treaty

346 INDEX

Treaty Ports, opening of, see Tiger

Gate Treaty
Tripartite Pact, see Axis
Trotsky movement, 120
Truman, Harry S., quoted, 330-1
Tsao K'un, 116

constitution of, 100
Ts'ao Ts'ao, 193
Tsao Tsung-t'ang, 194
Tseng Kuo-fan, 47, 53, 167 n 9 194

and n, 276 and n, 298, 299
Tsinan Incident (1928), 123, 128,

133

Tsin dynasties, 32, 95, 268
Tsingtao-Tientsin Railroad, 61
Tsin Shu, Chinese Emperor, 39
Tso Tsung-t'ang, 53
Tsu Hsi, Chinese Empress Dowager,

53> 59> 6o n > 7 8
Tu-chueh (Turkis), 37
Tufans, 38, 39
T'ung Chih, Chinese Emperor, 49,

51

Tung-hu tribe, 38 and n
Tunglin scholars, 46
T'ung Meng Hui (United League of

Revolutionaries), 50 and n, 66,

109, 112, 258

Tung Chung-shu, quoted, 206
Tu Yueh-sheng, 11972, 300
"Twenty-One Demands," 71, 72-4,

77, 98 n

United Front agreement (Kuo-

mintang-Communists), 138 n
United Nations, 147
UNRRA, 296

Veblen, Thorstein, 262

Vigil of a Nation, The (Lin Yutang),

23
Voice of the Army, The, 77

Wang An-shih (Wang Chiang-
kung), 207, 253, 255-6, 266 n,
2712, 275, 276 and n

Wang Ching-kung, 193

Wang Ching-wei, 21, 98 n, 120
andn, 121, 130, 300

Wang Ch'uan-shan, 46, 196

Wang Ch'ung, 195

Wang Chung-hui, 21

Wang-hsia Treaty, Sino-American
(1844), 54

Wang Mang, 271 and n

Wang Yang-ming (Wang Shou-
jen), 46, 188, 194, 196,253

"Wan-pao Shan" incident, 133

Ward, Frederick Townsend, 194/2

Ward, Lester Frank, 262

War of Resistance (against Japan),
102, 103, 104, 118-19, 122, 129,
i3 J > X 33> 136-48, i49> I5> ^^
*5 6 > *57> *5 8 > l6o > l6 4> I7 1 * l8l >

200, 201, 212, 2l6, 2l8, 220, 223,
235, 236, 242, 316

Warring States, period of the, 195,

252
Washington Conference (1921), 76,

201
Washington Treaty, see Sino-Peru-

vian Washington Treaty
Wealth of Nations (Smith), 259, 260,

261

Wei Chi-kuang, 276 andn
Wei dynasty, 32, 95, 192, 193, 202,

268
Weimar Constitution (Germany),

100

Wei Shu, Chinese Emperor, 39
Wen I-to, 312
Wen Wang, 31, 45, 191
Woo, T. C., quoted, 327
Wu Chih-hui, 317

Yang Chu, 195

Yang Hu-ch'eng, 301

Yeh Ping-hsiang (Yeh Chih), 253

Yen Hsi-chai, 46, 196

Yen Hsi-shan, 325

Yen- Yung (Hsien-yun) tribe, 37

and n
Yonai, Mitsumas, 143

INDEX 347

Youth Corps, see San Min Chu I Yuan Shih-k'ai (Hung Hsien),

Youth Corps; see also Hitler Youth 68-70, 71, 77, 78, 100, 183

Corps Yung Cheng, Chinese Emperor, 45 :

Yu (Ta Yu), Chinese Emperor, 30 n, Yunnan-Burma Boundary and

96, 247 n, 268, 270 Commercial Convention (1894),

Yuan (Mongol) dynasty, 37-8, 45, 60

47, 85, 95, 276 Yunnan-Indo-China Railroad, 61

The momentous events tL are shaking
China to her very foundations are closely
related to a carefully worked out blueprint,
drafted four years ago by Generalissimo
Chiang Kai-shek. That blueprint consti-
tutes the text of his now world-famous book*
entitled CHINA'S DESTINY, but better
known as the Mein Kampf of China. It is
by far the most widely circulated book in
China. Long shrouded in secrecy and mys-
tery in the rest of the world, it is now pre-
sented for the first time in English to the
American reading public.

CHINA'S DESTINY is a political testa-
ment of the most profound implications in
international relations. In it we find Chiang
Kai-shek's version of the "leader" principle
and the theory of "racial" supremacy. Here
we learn of his deep conviction of the supe-
riority of all things Chinese; his scorn of
Western political concepts; his plan for
maintaining the Kuomintang dictatorship
even at the cost of civil war; and his views
concerning China's future foreign relations,
CHINA'S DESTINY is required reading
in Chinese schools and colleges; for civil
servants, army officers, and members of the
Kuomintang Youth Corps; and for all stu-
dents at the Kuomin tang's Central Political
Training Institute.

The importance of a book that has been
so intensively used for the indoctrination of
the future leaders of China can hardly be
overemphasized. No book currently in cir-
culation exercises a more direct influence
on Far Eastern and even world politics. Yet
as late as January, 1946, at the height of a

controversy over our China
policy, ii was considered such political dyna-
mite that the Secretary of State refused to
make a translation of the book available to
interested Congressmen.

Another important book by Chiang Kai-
shek, entitled CHINESE ECONOMIC
TH" RY, is also included in this volume,
Written at about the same time, CHINESE
ECONOMIC THEORY differs from
CH I X\YS DESTINY in that it was kept
from the Chinese public and used solely as
a textbook in the Central Political Training
Institute. It is here that we find the theo-
retical basis for the program outlined in
CHINA'S DESTINY.

This first English-language edition of
these nvo books will go a long way to make
clear the real nature of the present struggle
in China. The combined efforts of two Chi-
nese scholars have made the translation
both accurate and readable. The differences
between the original and revised edition of
CHINA'S DESTINY have been carefully
indicated,

An introductory chapter describing the
origin and history of the txvo books, exten-
sive annotations of the texts themselves, and
a concluding commentary have been pre-
pared by Philip Jaffe.

Through his work as editor of Amerasia
for I he past ten years, as well as through his
recent, highly praised book, New Frontiers
in Asia, Philip Jaffe has won a wide reputa-
tion as a keen and well informed student of
Far Eastern affairs. Ever since his student
days at Columbia, he has been convinced
that the welfare of the American people is
closely related to the welfare of the people
of Asia. Many years of work as a .student,
writer and lecturer concerned with the com-
plex problems of the Far East, supple-
mented by travel in Asia, make Mr. Jaffe
exceptionally well qualified to interpret the
significance of CHINA'S DESTINY to the
American people.

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