ance of a school which was the vogue less than twenty years ago and
which is completely out of touch with the thought which the war has made
world-wide. Nevertheless the line of argument which characterizes this
utterance is still a political factor in China and must be understood.

MEMORANDUM

... "The breach between the United States and Germany is no concern
of ours. But the Government suddenly severed diplomatic relations
with Germany and is now contemplating entry into the war. This is to
advance beyond the action of the United States which continues to
observe neutrality. And if we analyse the public opinion of the
country, we find that all peoples--high and low, well-informed and
ignorant--betray great alarm when informed of the rupture and the
proposal to declare war on Germany, fearing that such a development
may cause grave peril to the country. This war-policy is being urged
by a handful of politicians, including a few members of Parliament
and several party men with the view of creating a diplomatic
situation to serve their political ends and to reap great profits.

"Their arguments are that China--by siding with the Entente--may
obtain large loans, the revision of the Customs Tariff and the
suspension of the Boxer indemnity to Germany, as well as the
recovery of the German concessions, mining and railroad rights and
the seizure of German commerce. Pray, how large is Germany's share
of the Boxer indemnity? Seeing that German commerce is protected by
international law, will China be able to seize it; and does she not
know that the Kaiser may in the future exact restitution?

PERILS OF WAR

"News from Holland tells of a rumoured secret understanding between
Germany, Japan and Russia. The Japanese Government is pursuing a
policy of friendship toward Germany. This is very disquieting news
to us. As to foreign loans and the revision of the Customs Tariff,
we can raise these matters at any time. Why then should we traffic
for these things at the risk of grave dangers to the nation? My view
is that what we are to obtain from the transaction is far less than
what we are to give. If it be argued that the policy aims at
securing for China her right to live as an unfettered nation, then
we ought to ask for the cancellation of the entire Boxer
Indemnities, the abolition of exterritori