the Chinese were
compelled to borrow the money from the Japanese Government to be repaid
in fifteen years, with an option of repayment in five years. The railway
was valued at 53,400,000 gold marks, plus the costs involved in repairs
or improvements incurred by Japan, less deterioration; and it was to be
handed over to China within nine months of the signature of the treaty.
Until the purchase price, borrowed from Japan, is repaid, the Japanese
retain a certain degree of control over the railway: a Japanese traffic
manager is to be appointed, and two accountants, one Chinese and the
other Japanese, under the control of a Chinese President.

It is clear that, on paper, this gives the Chinese everything five years
hence. Whether things will work out so depends upon whether, five years
hence, any Power is prepared to force Japan to keep her word. As both
Mr. Hughes and Sir Arthur Balfour strongly urged the Chinese to agree to
this compromise, it must be assumed that America and Great Britain have
some responsibility for seeing that it is properly carried out. In that
case, we may perhaps expect that in the end China will acquire complete
control of the Shantung railway.

On the whole, it must be said that China did better at Washington than
might have been expected. As regards the larger aspects of the new
international situation arising out of the Conference, I shall deal with
them in the next chapter. But in our present connection it is necessary
to consider certain Far Eastern questions _not_ discussed at Washington,
since the mere fact that they were not discussed gave them a new form.

The question of Manchuria and Inner Mongolia was not raised at
Washington. It may therefore be assumed that Japan's position there is
secure until such time as the Chinese, or the Russians, or both
together, are strong enough to challenge it. America, at any rate, will
not raise the question unless friction occurs on some other issue. (See
Appendix.)

The Siberian question also was not settled. Therefore Japan's ambitions
in Vladivostok and the Maritime Provinces will presumably remain
unchecked except in so far as the Russians unaided are able to check
them. There is a chronic state of semi-war between the Japanese and the
Far Eastern Republic, and there seems no reason why it should end in any
near future. The Japanese from time to time announce that they have
decided to withdraw, but they simultaneously send fresh troops. A
conf