Twentieth Century Chronicle

Page 42

Yamagata then asked Ito, "So, who do you think is the one who seeks personal gain in the eyes of the people?"

After a few seconds of contemplation, Ito said, "The number one choice in the public's mind is definitely the zaibatsu (financial conglomerates). However, they are also the economic pillars of the country, so we naturally cannot exclude them. The second choice in the public's mind is the nouveau riche. These nouveau riche have made money through land and stock speculation, but have caused us financial losses. How can we not hate them? Among them, the Genyosha is the worst. They not only speculate on land, but also use force to force landlords to sell their land at low prices. Throwing them out should quell the public's anger."

Ito's suggestion was very reasonable, and all the elders except Yamagata and Oyama nodded in agreement. The yakuza were originally there to do shady things for political bigwigs; even Ito Hirobumi had used the Genyosha to eliminate some figures he couldn't suppress with his power. However, as Japan's system continued to improve, Ito Hirobumi had gained the power to make laws, and he no longer needed the Genyosha, yet he couldn't openly demand the elimination of this ever-expanding monster.

Ito Sukeyuki's suggestion was exactly what Ito wanted to do, something he couldn't, because the Genyosha had leverage over him. But now, with the Navy leading the effort and using public anger to push for the elimination of the Genyosha, it would be tantamount to erasing his own dark history as well.

Only Yamagata truly resisted the proposal, because the Genyosha was practically under the control of the army. When Saigo Tsugumichi was alive, the Genyosha was politically closer to the navy because of the Saigo family's prestige among the ronin. However, after Saigo's death, the connection between the Genyosha and the navy was severed. Those ronin might obey the Saigo family, but they clearly had little affection for the navy without the Saigo family's leadership.

In this way, the Army, whose interests were closely intertwined with those of the Genyosha, became the new master of the Genyosha. The Army had finally managed to control the Genyosha and hadn't even recouped its costs yet, and now the Navy was about to take action against it. This was practically a slap in the face to the Army, and it was also a warning to the ronin that betraying the Navy would come at a price.

Yamagata hesitated for a long time before finally saying, "The Genyosha is not a small organization. Uprooting it entirely might cause unrest in Japan."

Ito Sukeyuki smiled and said, "Would things be even more turbulent than they are now? If the people don't identify an enemy to vent their anger on, I think they will soon turn their anger toward the government. Oh, it has already turned toward the government, otherwise we wouldn't be sitting here."

Furthermore, as far as I know, the newspaper that initially incited these people to criticize the government was owned by Genyosha. If we don't take action against them, and Genyosha uses public opinion to guide the public to continue attacking the government and incite nationwide riots, is the army planning to declare martial law then?

Inoue Kaoru and Matsukata Masayoshi both looked at Yamagata and Oyama with suspicion. Even Meiji was watching Yamagata. Faced with such pressure, Yamagata could only defend the army, saying, "The army has no intention of waiting for the situation to escalate further. The army is just worried that if social unrest continues, it will shake the national system, so it hopes to handle this matter peacefully."

Matsukata Masayoshi couldn't hold back any longer and said, "If there were no external problems, we could naturally persuade the people slowly. But right now, aren't there problems outside? The army is advocating for war against Russia, and the navy is advocating for a propaganda war against the United States. If we don't act decisively now, are we going to let foreign enemies take advantage of our weakness?"

Yamagata fell silent once again. Making the decision to cut off the army's hand wasn't easy. But Emperor Meiji finally intervened, specifically addressing Yamagata and Oyama, asking, "If the army is dissatisfied with Count Ito's suggestion, it can propose a new plan. Remaining silent like this won't solve the problem."

Under pressure from the Emperor, Oyama was the first to back down. He said, "If the target is only Genyosha, then I think there is no problem. But after dealing with Genyosha, can the situation really be calmed down?"

The other elders turned their gazes to Count Ito again, to which Ito Sukeyuki retorted, "Is it really certain that Chief of Staff Ōyama's plan for the Russo-Japanese War will be victorious? If Chief of Staff Ōyama can make such a guarantee, then so can I."

Yamagata stopped Ōyama Iwao, then addressed Emperor Meiji: "In such extraordinary times, extraordinary measures are necessary. The army will absolutely obey the Emperor's orders..."

The meeting then concluded. After leaving the Imperial Palace, Yamagata approached Ito and said, "At this critical juncture for the nation, it would be the nation's good fortune if the Army and Navy united. The Army will support the Navy's decision regarding the United States, but we also hope that the Navy can exercise some restraint and prevent the situation from escalating to a point where Japan cannot cope."

Ito Sukeyuki nodded in acknowledgment to Yamagata and replied, "The Navy, like the Army, has only unwavering loyalty to the Empire and no selfish motives. The Navy also protects the interests of the Empire, so Lord Yamagata can rest assured."

After saying goodbye to Ito, Yamagata and Oyama got into a carriage. Once inside, Yamagata said to Oyama, "Have Katsura Taro, Terauchi, and Genyosha cut off all contact. Also, check if Togo is in Tokyo and when he arrived there."

Oyama Iwao accepted Yamagata's order, but couldn't help asking, "Don't you plan to meet with Katsura Taro and Terauchi and have them report the whole story to you in person?"

After a long silence, Yamagata said, "If I see them now, I'm afraid I won't be able to control myself. Let me have a few days of peace and quiet to sort out how this happened before I see them."

On October 2nd, Ito Hirobumi announced his resignation. Following custom, the Imperial Household Department tried to persuade him to stay, but Ito again submitted his resignation. On October 4th, the Imperial Household Department accepted Ito's resignation. That afternoon, the Imperial Household Department issued a decree to Ito Sukeyuki, ordering him to form a cabinet to stabilize the situation. The Navy had finally seen a turnaround.

Chapter 143 Formation of a Cabinet

When Ito Sukeyuki received the order, Yamagata Aritomo finally met with Katsura Taro and Terauchi Masatake at his residence in Chinzanso, Tokyo. In the main hall, Katsura Taro sincerely apologized to Yamagata, explaining that he had pushed through the incident because he could not tolerate the navy's autocracy and dictatorship. Terauchi Masatake, however, was still somewhat resentful.

Yamagata Aritomo didn't say much when he saw this, but said to Katsura Taro, "Admitting your mistake is easy, but knowing where you went wrong and not repeating it next time is the most important thing."

Moreover, this is not the end of the story. Although the Navy has gained the power to form a cabinet, it remains to be seen whether Ito will actually succeed. The sharp internal and external contradictions currently facing Japan are so acute that even Ito and I find them difficult to handle.

Therefore, we now have only two things to do: quietly await the navy's self-defeat, and consider how to handle the situation after the navy's failure. Therefore, you will serve as the Minister of the Army in the Ito Cabinet. Only through close observation can you clearly see what kind of person your opponent is, and avoid making the same mistakes next time.”

Faced with Yamagata's domineering attitude, Terauchi held his breath for a long while before exhaling, but ultimately remained silent in protest. Katsura Taro hesitated for a moment before saying, "Since Ito may not be able to form a cabinet, do we still need to replace the Minister of the Army?"

Yamagata picked up his tea and took a sip before saying, "Regardless of whether Ito can form a cabinet, the army needs to show some cooperation. Otherwise, if the navy blames the army for the failure to form a cabinet, how can the army and navy cooperate in the future?"

When Ito Sukeyuki received the imperial decree, he was momentarily lost in thought. The events of the past six months had exceeded his expectations. He had originally thought this imperial decree was far from his reach, since some things had already been decided. If nothing unexpected happened, Yamamoto Gonnohyōe would remain at the core of the Navy, and therefore no one in the Navy could surpass him to become Prime Minister.

However, he quickly regained his composure and summoned Kawahara Yoichi and Togo Masamichi to his home. The two congratulated Ito as soon as they entered, with Kawahara, somewhat carried away, saying, "The Navy has finally made it! The era of the Navy producing no prime ministers is finally over. Now the Army can no longer treat the Navy as a stronghold of rebels."

Togo Masamichi was equally overjoyed. His efforts in running around had greatly contributed to Ito's advancement, and the position of Vice Minister of the Military Affairs Department should be a sure thing. After all, Ito didn't have many confidants, otherwise he wouldn't have needed Hayashi Shin'ichi to support him as an elder statesman.

When Saigo Tsugumichi's condition worsened, some naval officers realized that the navy would be missing a representative of the imperial court after Saigo's passing. However, they were also afraid of offending Yamamoto Gonnohyōe, and their relationship with Itō was not close enough to warrant a life-or-death bond, so they naturally did not mention this issue in front of Saigo.

This is why, after Ito was promoted to the rank of elder statesman, Kawahara immediately became one of Ito's confidants, as Ito had not previously needed to. What constitutes a confidant? A confidant is someone who would stand against Minister Yamamoto for Ito's sake; someone who obeys both Ito and Yamamoto is merely a subordinate. Therefore, Ito's advancement naturally excited Kawahara and Togo. In their eyes, Ito's advancement was also their advancement; now they were all in the same boat.

However, Ito was much calmer than the two. After coughing a few times to quiet them down, he said, "Although the imperial decree has been issued, the formation of the cabinet and the implementation of policies are still issues. What are your thoughts?"

Kawahara was speechless. He was thrilled about Ito's cabinet formation, but he couldn't come up with any solutions. Forming a cabinet wasn't something the navy could handle alone; it required the approval of the elders and the support of the major parties within the cabinet. Although Japan's attempt to learn from the Western constitutional system had resulted in a hybrid, it was still more advanced than the Qing Dynasty's system. At least the elders acknowledged that the parliament had certain powers.

This is why the Genyosha was able to gradually expand. Because the Genyosha members could not be too concerned about the law in local elections, they could coerce and entice people to vote for certain people. In addition, a large number of Genyosha members had a certain influence in the local area, so many Genyosha members were actually elected as members of parliament, such as the founder of Genyosha, Hiraoka Kotaro.

After being elected as a member of parliament, Hiraoka Kotaro wanted to form a cabinet. People from Genyosha were worried about the candidates for Minister of the Army and Minister of the Navy. He immediately said arrogantly, "As for the Army, I can manage it; as for the Navy, Toyama Mitsuru is so-so. So, there's nothing to worry about."

These gangsters, after colluding with conglomerates, have entered parliament and even dare to openly provoke the army and navy. Therefore, as long as the army and navy do not want to break off relations and maintain the facade of constitutional government, they will have to consider how to appease the parliament.

However, just as Ito and Kawahara were struggling with their dilemma, Togo said, "Politics is nothing more than rallying a group of people to do something together. Although one party is currently dominant in the parliament, the Constitutional Seiyukai doesn't really have any political ideology. If it does, it's just obeying the party leader's decisions."

Therefore, we can completely win over the Constitutional Seiyukai to our side without worrying about them obstructing the government. As long as you, Minister, propose a political platform that is acceptable to Ito and endorsed by the majority of the Constitutional Seiyukai, then forming a cabinet will not be a problem.

Ito pondered for a moment, then asked Togo, "Let me see it."

Togo was taken aback by the sudden question. It took him a while to react. He took out a notebook from his pocket, placed it on the tatami mat, and said respectfully, "Lin Xinyi was worried that you, Chief of Staff, might have your own ideas about governance, so he asked me to offer a few suggestions. It was not my intention to influence you, Chief of Staff."

Ito thought that was a good point, but looking at the well-organized cabinet formation plan in his notebook, he couldn't help but say, "How long has he been preparing for this? You're not telling me he only came up with this idea after you went to Kyoto, are you?"

Togo lowered his head and replied, "Actually, these governing philosophies are the topics discussed at the naval seminars since last year. This time, Lin Hsin-yi simply summarized them. The part about dealing with political parties and the people is his latest idea."

Ito Sukeyuki silently read through the pages that Togo had shown him, then paused to think for a few seconds before asking, "Aren't these governing philosophies too accommodating to the lower classes? I'm afraid the zaibatsu and landowners would find it difficult to support such philosophies."

Togo looked up at Ito and said, "The Chief of Staff is close to the zaibatsu and landlords. Does that mean they will take money out of their pockets to support the country? The biggest problem right now is who will pay to fill the fiscal hole left by the sharp drop in land prices. The people don't have any money in their pockets. The money is all in the pockets of the zaibatsu and landlords."

Therefore, if the Chief of Staff wants to get things done, he will inevitably offend them. So it's better to win over the lower classes and put pressure on these tycoons and landlords. Even if he fails, at least the people will still support him.

Ito thought about it and immediately understood. Togo was right. If he didn't crack down on the zaibatsu and landlords, he probably wouldn't even be able to form a cabinet, because no one would support him. After all, he only had some prestige in the navy and was considered an outstanding soldier in the eyes of the public. They didn't have any connection with each other. He couldn't possibly place naval officers in various cabinet positions.

Therefore, rather than refusing the mandate because he couldn't form a cabinet, he might as well take a gamble. If the tycoons and landlords successfully stopped him, it wouldn't be a shameful thing. If he did succeed in forming a cabinet, then he would have made a profit.

After a moment's thought, Ito decided, "Togo, go and contact the people from the Constitutional Political Friendship Association and see how much they actually support our political ideals. Kawahara, go and visit Kōji, and see if they agree on any of our political views."

On October 9th, Yamagata unexpectedly learned that Ito had already sent his cabinet candidates to the palace. He quickly obtained Ito's list of cabinet members and couldn't help but chuckle as he looked at it. He said to Oyama Iwao beside him, "Ito really doesn't have any talent in his pocket. He actually pushed such a group of young people to the top. Isn't he afraid of crashing and burning?"

After reviewing the list, Oyama Iwao also found it somewhat unbelievable. The Minister of Education, Makino Nobuaki, was born in 1861; the Minister of Agriculture and Commerce, Shiga Shigetaka, was born in 1863; the Minister of Justice, Hara Yoshimichi, was born in 1867; and this one was even more outrageous: the Minister of Posts and Telecommunications, Ogawa Heikichi, was born in 1870.

According to current cabinet formation rules, it would be reasonable to select ministers born in the 40s and 50s. Although a group of young people were in power in the early days of the Meiji Restoration, these young people are now old, so they naturally can't stand the young people rising too fast and seem eager to push them, the old folks, off the stage.

Oyama Iwao shook his head and said, "The Imperial Household must be having a huge headache over this too. However, Shibusawa Eiichi has actually taken on the role of Finance Minister, which means that Ito has already gained the support of the old shogunate faction. Looking at it this way, apart from being a bit young, this cabinet isn't really acting recklessly."

However, the Imperial Household Agency ultimately did not reject Ito's application to form a cabinet. Although the market had stopped its sharp decline in the past two days, everyone was waiting for the new cabinet to come up with a way to save the market, so they were in a wait-and-see state. If the Imperial Household Agency rejected Ito's application to form a cabinet, it would inevitably make people more bearish on the market. The Imperial Household Agency was unwilling to take on this responsibility, so it simply approved it.

On October 10, Sukeyuki Ito officially moved into the Prime Minister's official residence. The new prime minister held a press conference at the beginning of his term, which was hosted by his newly appointed press secretary, Isoo Abe. At the press conference, Sukeyuki Ito announced to the reporters: "I have been ordered by the Emperor to form a cabinet. The cabinet will complete the following policy tasks."

First, this Cabinet will continue to promote the Tokyo Metropolitan Area development plan and address the series of problems that have emerged during the development process; second, it will promote the nationalization of railways to end the vicious competition among private railways; third, it will support independent farmers to stabilize the rural economy and promote legislation on minimum wage and worker sickness protection to alleviate labor-management conflicts; fourth, it will support the electricity industry…”

Chapter 144 Not satisfied

Ito Sukeyuki's governing philosophy was quickly published in major Japanese newspapers, winning the support of liberals and leftists. Even right-wing newspapers controlled by Genyosha only dared to criticize the new prime minister's governing philosophy as too liberal, but dared not openly oppose the provisions for supporting self-employed farmers and providing certain protections for the working class.

Because a large portion of the supporters of the Genyosha came from low-level office workers and self-employed farmers, the so-called mainland ronin actually only made up a small portion of the Genyosha. The external expansion advocated by these mainland ronin had only one core idea: as long as Japan became a great power, then the Japanese people could live a prosperous life.

Seeing no hope for domestic political change, these low-level employees and self-sufficient farmers naturally had no choice but to support foreign expansionism, because it represented a change that seemed capable of breaking the rule of domestic warlords and tycoons, giving them something to look forward to.

However, after the Sino-Japanese War, this illusion was somewhat shattered. Some intellectuals were shocked to discover that the idea that Japan would become a great power and its people would become rich was a lie. The large sums of money that the Qing Dynasty paid in reparations were not used to improve people's livelihoods, but were instead invested in the construction of the military. This meant that Japan's strength only benefited the feudal lords and zaibatsu, while the people continued to live in misery.

These intellectuals began to awaken and embarked on two paths: one was to seek truth abroad, ultimately discovering Marxism; the other was to attempt to retreat to the Shogunate era, using nationalism to counter capitalism. In other words, the unity of the Japanese people before the Sino-Japanese War had been shattered, and three factions—left, center, and right—had emerged in the Japanese cultural sphere. The contradictions between the proletariat and the bourgeoisie, and between peasants and landlords, had overwhelmed the contradictions between the Japanese nation and other nations.

Politically, this manifested as the rise of the Kuomintang (KMT). Public resentment towards the feudal lords and zaibatsu (financial cliques) made even organized crime groups like the Genyosha (玄洋社) a beacon of hope against them. Without the support of these lower-level officials and independent farmers, the Genyosha would merely be a more powerful organized crime group, not a political entity.

However, for all levels of Japanese society, Ito Sukeyuki's political manifesto was still acceptable. The bourgeoisie heard about economic development, while workers and farmers heard about improving people's livelihoods. The manifesto made no mention of external conflicts, thus stabilizing the confidence of a segment of the population. The public believed that the rise of the navy was different from that of the army; an army victory would inevitably mean war, while the navy seemed unprepared for war, otherwise it wouldn't have focused its energy on economic development and ensuring people's well-being.

Amidst this skepticism, Tokyo land prices and the Japanese stock market began to rebound, and the economy started to stabilize. However, far away in Etajima, Hayashi Nobuyoshi was dissatisfied when he saw the new prime minister's declaration published in the newspaper. In front of the club members who were jubilant about the naval victory, he openly criticized: "Commander-in-Chief Ito still lacks ambition and courage. This cabinet may bring him great honor, but it is hopeless to break the land-dominated, naval-subordinate situation and to reshape Japanese politics."

Lin Xinyi's accusations were not unfounded. The new cabinet policy research report submitted to President Togo by the naval seminar had a core direction of actively promoting Japan's industrialization, stabilizing rural areas and improving workers' treatment, and establishing the necessary food security and a stable skilled worker group for Japan's industrialization.

Therefore, the new cabinet should promote the policy of "land to the tiller" in rural areas and establish an education, training, and security system for the working class in cities to curb the unrestrained exploitation of the working class by chaebols and their spending of profits on personal extravagance, waste, and speculative ventures, thereby strengthening the foundation of the nation and providing material support for the navy's development.

However, Prime Minister Ito's political declaration took a significant step backward from the political line advocated at the naval symposium, retreating from the political stance of reforming Japan to one of stabilizing the situation.

Surprisingly, no one felt any resentment towards Hayashi Nobuyoshi's public criticism of Prime Minister Ito. Instead, they subconsciously felt that Hayashi Nobuyoshi had the right to criticize the naval prime minister. Of course, they still tried to defend the naval leader. For example, Shigetaro Shimada said, "Although Elder Ito didn't fully present the route we proposed, he at least retained most of the content. This result is already a great success for the naval seminar. Perhaps we shouldn't criticize His Excellency Ito too much; perhaps His Excellency Ito has his own difficulties..."

Shimada Shigetaro's statement did indeed resonate with many members. As a military academy student who had not yet graduated, being able to participate in national policies was an honor that most people would find satisfying. As for whether Prime Minister Ito did not completely copy their research results, did that matter?

Seeing the attitude of the commune members, Lin Xinyi could only shake his head and say, "This kind of complacent mentality is the worst thing we can have. Political struggle is just like a battle between two armies. One side cannot declare victory until it has eliminated the other. If we hadn't blockaded Port Arthur after winning the Battle of the Yellow Sea, would the navy have been able to achieve final victory?"

The same applies to political struggles. If we cannot completely defeat our political opponents, we shouldn't dream that they will willingly accept our demands. The zaibatsu and the army will certainly find a way to make up for the losses they suffered in this struggle. Will the navy have such a favorable situation for attack next time?

Lin Xinyi's admonition silenced the club members, but since they were all young students, they didn't think it was a big deal. Inoue Tsunomatsu quickly broke the silence and said, "It's okay. As long as we still have Lieutenant Lin, the Navy will definitely be in an advantageous position."

Inoue's words elicited a burst of laughter, and the matter was dropped. Meanwhile, the Labor Party was also dissatisfied with the Qing government's perceived weakness towards the Americans. Despite holding the upper hand, the Qing government suddenly began talking about Sino-American friendship simply because the Americans had made a statement about returning the Boxer Indemnity.

The Labor Party was utterly baffled. The Boxer Indemnity was an insult to the Chinese people. The foreign powers had committed murder and arson on Chinese soil and demanded reparations. Now, the Americans were saying that the money could be returned to China under certain conditions, and that was considered a sign of friendship? The Americans had also stolen the rights to the Kaiping Mining Bureau and the Yuehan Railway. Where was the friendship in that?

The only area where the Labor Party can exert influence is the negotiation for the redemption of the Yuehan Railway rights. It is powerless to do anything else and can only watch helplessly as the Qing government squanders the political advantage over the United States that China has worked together to achieve, turning national interests into American support for the Qing Dynasty's rule.

The Qing government's subservient attitude towards foreign powers caused the so-called New Policies to lose their luster in the eyes of Han Chinese intellectuals. If the Qing government still barely resembled an independent regime before the Boxer Rebellion, then a series of decisions in 1903 further solidified the notion that "this is nothing more than a foreigner's court."

The Labor Party's expansion within a year was so rapid that even Tian Junyi and others were astonished. The number of members in Wuhan alone surpassed the size before the purge the previous year, and the total number of members nationwide, including those among overseas students, exceeded 1. All of this was caused by the various domestic and foreign policies implemented by the Qing government itself over the past year.

If, during the Hundred Days' Reform, Chinese intellectuals adopted an evasive attitude towards the Manchu-Han conflict, believing that the issue could be temporarily set aside for the sake of national prosperity, then after the failure of the Hundred Days' Reform, the Manchu-Han conflict had overwhelmed all domestic conflicts, because Han intellectuals no longer trusted the Manchu court.

In 1902, Empress Dowager Cixi announced the implementation of the New Policies in Xi'an, which greatly encouraged the Manchu people in Beijing, who believed that the Qing Dynasty could finally recover. However, in 1903, the Qing government's suppression of progressive forces on the issues of rejecting France and Russia, as well as its strict monitoring of overseas students, led intellectuals who originally advocated national strength to turn towards anti-Manchuism and revolution.

In the past, few of the Qing government's overseas students were inclined towards revolution, and even those who sympathized with revolutionaries dared not openly express their views. However, the situation changed after the Hundred Days' Reform, and voices criticizing the Qing government and the Manchus began to emerge among the overseas students. After the Boxer Rebellion, there were also those who openly advocated for anti-Manchu sentiment.

The student associations in Japan included groups like the Motivational Society to foster camaraderie among students; these were not originally political organizations. However, after the anti-Russian and anti-French movements began, these student groups started to become politicized. Initially, the majority of students supported the Qing government and considered themselves moderates. At the beginning of the movements, they were very dissatisfied with the anti-Manchu sentiments put forward by the radicals and even disbanded the student associations.

However, the Qing government's weakness in its foreign policy during the anti-Russian and anti-French movements, coupled with its attempt to silence overseas students instead of trying to salvage national sovereignty, led most of the students in Japan to lean towards revolution. Those considered moderate among the students either changed their political stance or were seen as lackeys of the government and isolated by radical student groups.

Under these circumstances, the influence of the revolutionaries expanded almost daily. Not only did the influence of the Workers' Party surge, but revolutionary groups such as the Revive China Society also expanded their organizations. A group of Manchu students studying abroad witnessed these events and lamented deeply. They were probably among the first to realize that the court had lost the hearts of the people.

A Manchu lamented, "Why did the Manchu-Han conflict arise? It arose from the special military system of the Eight Banners. Why did the special military system of the Eight Banners arise? It arose from a non-constitutional system, which then extended to racial issues. In recent years, Han people have been advocating anti-Manchu sentiment, while Manchus have been advocating anti-Han sentiment, using this to incite the people. There is no distinction of rank, age, or gender."

The woman's mind was consumed by the Manchu-Han conflict, the impending destruction of both sides, leaving her with no room for thought or ambition.

Under the Qing government's order, Duanfang sent his private secretary Shi Zhaoji to persuade Tian Junyi to accept the conditions offered by Hexing Company in the negotiations for the redemption of the Yuehan Railway. Duanfang's statement was, "Xiangshuai said that we don't need to worry about a little profit. Let's get the right to return the railway first."

However, Tian Junyi replied to Shi Zhaoji: "In the current market, 3 taels of silver can be exchanged for 2 US dollars. Hexing Company's total investment is no more than 100 million US dollars, and the cost of building the Yuehan Railway will not exceed 167 million US dollars. In other words, they initially offered a price of 667 million US dollars to make a net profit of 500 million US dollars, and now they are offering 467 million US dollars, which still leaves them with a net profit of 300 million US dollars."

Three taels of silver is roughly equivalent to a month's salary for a sailor on the Yangtze River's Three Gorges Dam, and three million US dollars is equivalent to a month's salary for 1.5 million people. That amount is enough to repair the Jingzhou Dam entirely; how can it be considered a mere surplus? I absolutely cannot agree to such a demand. Since Commander Xiang has entrusted me with the matter of redeeming the return rights, I will handle it myself.”

Chapter 145 Diplomacy

Shi Zhaoji went abroad at the age of 16, spent the longest time in the United States, and was the first Chinese student to obtain a master's degree in the US. He admired Tian Junyi's answer, but was also very worried about him.

"China is weak and bullied. If we can reclaim some rights for the country, we should do our best. However, the United States is relatively friendly to us among the great powers. If we antagonize them, we may suffer even greater losses on the Manchurian issue. I wonder if Brother Tian agrees?"

Moreover, the imperial court, the governor-general, and the viceroy all want to resolve the Yuehan Railway issue as soon as possible. I fear that Brother Tian's insistence at this time will not only fail to gain the court's approval but will also arouse their suspicion. With Brother Tian's great talent, wouldn't it be more beneficial for the people of Huguang to preserve him for a more productive period?"

After nodding his thanks to Shi Zhaoji, Tian Junyi said, “I appreciate Brother Shi’s kindness. However, I really cannot compromise on the matter of redeeming the return rights. If this precedent is set, foreign powers will be able to extort our country simply by signing a contract. Who wouldn’t want to try? I’m afraid that cases like the Kaiping Mining Bureau will become increasingly common.”

Shi Zhaoji hesitated for a moment, knowing that Tian Junyi was indeed right. If other countries saw through China's weakness, they would only become more demanding. After thinking for a while, he asked, "So, what is Brother Tian's bottom line? The Americans certainly won't agree to this $167 million. They can't possibly pay back the interest for the past two years. Right now, public opinion is on our side, but once that public opinion fades, the Americans might not give in so easily. We still need to seize the opportunity."

After a few seconds of silence, Tian Junyi said, "Two million dollars at most, or we'll just wait it out. At worst, we'll build another line. Anyway, they haven't finished planning it. How we build it is up to us."

Shi Zhaoji could only give a wry smile and say, "How about I first find out the Americans' bottom line, and then we can sit down and talk? I think anything under 300 million is achievable..."

After greeting Zhan Tianyou, Shi Zhaoji took his leave. Zhan Tianyou, who had been sent to the United States as a child student, was considered his senior. Through his father-in-law Tang Shaoyi, the two were not strangers.

Having overheard Shi Zhaoji and Tian Junyi's conversation, Zhan Tianyou was momentarily at a loss for words, unsure where to begin. He had returned home in April for his father's funeral and was only now returning to Wuhan from his hometown in Guangdong. He had been invited by Sheng Xuanhuai to oversee the construction of the Pingxiang-Liling Railway, which was completed in July of this year. Logically, his contract with the Pingxiang Coal Mine should have expired, but the Hanyeping Company still strongly urged him to come to Wuhan for a meeting, which is why he had returned to Hankou.

Before he could exchange more than a few words with Tian Junyi, Shi Zhaoji rushed over to convey Duanfang's message. Tian Junyi did not ask him to leave, so he had no choice but to listen in on the conversation.

Just as Zhan Tianyou was pondering whether the conversation could continue, he saw Tian Junyi, who had seen Shi Zhaoji off, return as if nothing had happened and continue speaking to him: "Where were we? Oh, right, it was about the matter of railway standard setting. I've seen your proposal for a unified railway gauge, and I also saw the Xiangdong Bridge, which you oversaw the construction of, on my way to the Pingxiang coal mine."

I believe you are well-suited to oversee the construction of the Huguang Railway. Therefore, on behalf of the Huguang Economic Development and Urban Construction Committee, I would like to appoint you as the Director of the Huguang Railway Bureau, responsible for overseeing railway construction and management in the Huguang region, and for preparing for the establishment of the Huguang Transportation School.

"Huguang Railway Bureau?" Zhan Tianyou was quite unfamiliar with this name; he seemed to have never heard of this government office before.

After thinking for a moment, Tian Junyi said, "Currently, most of the railways built in our country are for the convenience they provide. Therefore, most of these railways do not form a railway network plan. Each railway is owned by a separate company, which seems to be a dedicated use of funds, but for a country, this way of building railways is actually unreasonable."

Based on international railway construction experience, especially Germany's, railway networks not only boost a country's economy but also enhance national defense. Therefore, railway construction is not for the railway itself, but for developing local economies and strengthening national defense.

If our railways are fragmented and controlled by private individuals and foreigners, they will become a shackle hindering our country's development. Therefore, I requested that General Xiang establish the Huguang Railway Bureau to construct and manage railways to meet the needs of economic development and national defense in Huguang and the central Yangtze River region.

The Yuehan Railway and Luhan Railway are major north-south arteries, but the construction of railways connecting east and west should also be prioritized. For example, railways connecting Pingxiang to Nanchang and then into Zhejiang, Wuhan to Jingmen and Yichang, Wuhan to Xiangyang, Nanyang and Xuchang, Wuhan to Nanjing, and eventually connecting with the Tianjin-Zhenjiang Railway, etc.

In this way, Wuhan would become the most important heavy industrial base in central China. Through these railways and the Yangtze River waterway, resources from the central region would be concentrated in Wuhan, transformed into machinery and various industrial products, and then transported back to other areas, thus resisting the dumping of foreign goods in China. With such an industrial center, it would become the most powerful bulwark against foreign invasion…

Shi Zhaoji took a ferry across the river and returned to the Governor's Mansion in Wuchang. He briefly relayed Tian Junyi's reply to Duanfang. Although he had tried his best to conceal some of the less-than-respectful words in Tian Junyi's speech, Duanfang still felt offended. He slammed his teacup on the table and said angrily, "What is he? Does he think this is his own money? This is the money of the Qing Dynasty. Why should he be so stingy? Does he really think that I, the Governor, can't handle him?"

Shi Zhaoji could only try to smooth things over, saying, "Commissioner Tian probably doesn't want to go against the court. He genuinely wants to save money for the development of Huguang. The Economic Development and Urban Construction Committee is making a huge effort, building water conservancy projects and roads in various places, as well as factories, power stations, and waterworks in Hankou... The railway bridge over the Han River has already started construction, and money is needed everywhere. Commissioner Tian can't afford not to be frugal. Besides, he's very honest and upright. He still rents a house, and he donates all the money people give him to schools. Everyone in Wuhan praises him. Why should Your Excellency offend the entire Huguang region over one person?"

Duanfang, still furious, said, "Could a mere committee member be more difficult to deal with than Liang Jie'an?"

Shi Zhaoji realized that this seemingly enlightened Manchu official was actually quite concerned about the distinction between Manchus and Han Chinese. The greater Tian Junyi's reputation and abilities as a Han official, the more sinful it seemed in Duanfang's eyes. He suddenly felt disheartened with the court, but still explained, "Liang is ultimately an outsider, while Tian is a local gentry. Dealing with Liang only requires a transfer order. However, even if Tian resigns from his position, he will still be a local notable and will ultimately stand up for the local area, making him even more difficult to control."

Furthermore, Commissioner Tian is currently negotiating with the consuls of various countries regarding the return of road administration in the concessions. The Governor-General's dismissal of him would likely incite discontent among the local merchants and gentry. If the local merchants and gentry demand that the Governor-General's office take over the negotiations with the foreign concessions in place of Commissioner Tian, ​​we would be in a difficult position.”

Duanfang hesitated upon hearing this. After the Boxer Rebellion, everyone knew that foreigners were not to be trifled with. Even Manchu nobles would lose their heads if they encountered foreigners. So who would be willing to oppose foreigners?

After a moment's thought, Duanfang finally spoke up and asked, "Those foreign devils really think they can hand over the road administration back to us? Impossible. These foreign devils are probably only afraid of taking advantage of us; why would they give back what they've already taken?"

Without looking up, Shi Zhaoji replied, "Both the Germans and the British have significant interests in the urban development of Hankou, and the plan for the new city of Hankou is gradually becoming apparent."

The concession area will soon become an ordinary neighborhood. If the roads, water and electricity in the concession area cannot be connected with other areas, then the concession will soon be excluded from the core of Hankou city.

The Germans believed that the concessions should be abolished altogether, allowing the entire city to be integrated. This would not only facilitate urban planning and construction but also enable the wharves located within the concessions to play a greater role. Currently, the various concessions, drawing their own lines, were effectively hindering the development of Hankou…

In the summer of 1903, Krupp and Siemens finally announced their withdrawal from the Jiaozhou Bay leased territory. However, they did not withdraw from China, but instead shifted their investment focus to the Hubei and Hunan regions, especially Hankou, Hanyang, and Huangshi.