the Conference. But the
unexpected happened. At an informal gathering of Administration
leaders at the White House on Saturday night, January 7, stock was
taken of the work of the Conference, and some of the senators present
expressed the opinion that if it adjourned without doing more for
China, there would be little hope of getting the treaties ratified. As
a result Secretary Hughes persuaded the British and Japanese delegates
to cancel their sailings, and with characteristic energy and
determination took personal charge of the Far Eastern situation, which
up to this time had been left mainly to Mr. Root. After a little
pressure had been brought to bear on the Chinese by President Harding,
and probably on the Japanese by Mr. Balfour, Secretary Hughes was
finally able to announce at the plenary session of February 1 that
China and Japan had reached an agreement as to the terms on which
Shantung was to be restored. At the same session the agreements in
regard to China reached by the Committee on Far Eastern Affairs were
announced. These agreements were finally embodied in two treaties, one
dealing with the tariff and the other with the open door, and a series
of ten resolutions.

Since the middle of the last century Chinese tariffs have been
regulated by treaties with foreign powers, the customs service
organized and administered by foreigners, and the receipts mortgaged to
meet the interest on foreign loans. China has never been permitted to
levy duties in excess of 5 per cent., and, in fact, as a result of the
methods of valuation the duties have not averaged above 3 1/2 per cent.
This has been an unjust state of affairs, and has deprived the Chinese
Government of what would naturally be one of its main sources of
revenue. By the new agreement there is to be an immediate revision of
tariff valuations so as to make the 5 per cent. effective. China is
also to be allowed to levy a surtax on certain articles, mainly
luxuries, which will yield an additional revenue. It is estimated that
the total annual increase in revenue derived from maritime customs will
be about $150,000,000 silver. It is claimed by some, with a certain
degree of truth, that any increase in Chinese customs duties will be
immediately covered by liens to secure new loans, and that putting
money into the Chinese treasury just now is like pouring it into a rat
hole. As soon as China is able to establish a stable and honest
government, she shou