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CHINA
Imperialist success at Hankow there were overtures for peace, and negotiations were opened at Shanghai on December 18th between Wu Ting Fang, as the representative of the Revolutionaries, and Tang Shao-yi, as the envoy of the Imperial Government; but the conference came to an end almost as soon as it opened, because on behalf of the Revolutionaries the abolition of the monarchy was insisted upon as the basis of negotia- tion. This was firmly opposed by Yuan Shih-kai, but on December 28th the Throne announced that it was prepared to leave the question of the future constitution of China to the decision of a national convention. That was the position at the end of the year. Meanwhile Prince Chun had resigned the regency, and by Imperial Decrees the monarchy had been made a limited monarchy on British lines. The Republican con- vention had elected Sun Yat Sen as President of the Republican Military Government, and upon his installation at Nanking on January 1st, 1912, he appointed a Ministry and issued an appeal to the Powers to recognise the Republican Government. Terms of abdication were offered to the Court at Peking, and Yuan Shih-kai was invited to assume the position of Provisional President of the Republic. After many Palace conferences a Decree of abdication was issued by the infant Emperor, as having been respectfully received from her Imperial Majesty the Empress Dowager Lung Yu. The terms of abdication provided that the Emperor may retain the title of Emperor of Ta Ching and shall be treated in accordance with the etiquette which would govern relations with a foreign monarch on Chinese soil. An annuity of four million taels is payable to him, and His Majesty was per- mitted to continue in occupation of the Palaces in the Forbidden City until the Summer Palace should be ready for him. The nation undertook to maintain the tombs of the Imperial dead. In due course Dr. Sun Yat-sen resigned the Presidency in favour of Yuan Shih-kai, who was practically unanimously appointed by the National Assembly at Nanking. It was expected of him that he would journey to Nanking to be installed; but after much discussion this ceremony was performed in Peking. The ambition of the Republicans was to make Nanking the capital of China, but there was much opposition to the proposal, and Peking continues to be the seat of government. Early in 1913 the National Assembly gave place to a Parliament of two Houses, and after the abortive second revolution, against what was regarded as dictatorship by Yuan Shih- kai, the "provisional" government was brought to an end by Parliament duly electing Yuan Shih-kai as President of the Republic for a period of five years, with General Li Yuan Hung as Vice-President. The year 1913 closed with Parliament suspended, owing to a mandate by the President cancelling the seats of over 300 members for treasonable conspiracy, and, pending a new election, an "Administrative Conference," representative of the whole of the provinces. was formed to consider a number of legislative projects including a revision of the law.
This was succeeded in 1914 by the creation of the Tsan Cheng-Yuan or State Council composed of men of official and administrative experience, mostly, of course, of the old school. The year was notable for the operations of a notorious robber chief, known as the White Wolf, who commanded a large following, and for months terrorised almost the whole of mid-China. The marauding band traversed several Provinces, plundered cities and laid waste whole districts. He defied all the efforts of the. Military for quite a long time, but was ultimately killed and his followers dispersed. This was not the only misfortune in that year, for floods greater than have been known in China for the last 50 years devastated Kwangtung and took a heavy toll of life. Similar disasters took place in the North, causing many deaths and much damage to property, Though not actively participating in the European War, China suffered very severely in consequence of the outbreak of hostilities. Not only was her foreign trade dislocated, but the money markets of Europe, from which she expected to draw supplies necessary for administration and for the development of the country, were closed to her; while a portion of her territory was overrun by the Japanese in the course of their military operations against Tsingtao, the last-mentioned factor interfering considerably with local trade. Troubles with the Mongols added to the difficulties of the Government, and a mutiny of the Chinese soldiery at Kalgan caused some anxiety for a time. Fortunately, these disturbances were only of a temporary or a local character. Perhaps the outstanding feature of 1914 was the new-born financial confidence of the Chinese in their own Government, an internal loan for $24,000,000 being successfully floated, while an issue of Premium Bonds amounting to $10,000,000 was no less successful.
The year 1915 will be memorable in China for the Japanese ultimatum following the non-acceptance by China of the "Twenty-one Demands" presented by the Tokyo Government. China had, of course, to bow to force majeure and the 7th of May was to
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