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Finding that on the surface an Imperial Decree enjoyed the majesty of an Ukaze of the Czar, Europeans were ready enough to interpret as best suited their enterprises something which they entirely failed to construe in terms expressive of the negative nature of Chinese civilization; and so it happened that though the government of China had become no government at all from the moment that extraterritoriality destroyed the theory of Imperial inviolability and infallibility, the miracle of turning state negativism into an active governing element continued to work after a fashion because of the disguise which the immense distances afforded.

Extraterritoriality, by creating the "treaty port" in China, had been the most powerful weapon in undermining native economics; yet at the same time it had been the agent for creating powerful new counter-balancing interests.

Finding that on the surface an Imperial Decree enjoyed the majesty of an Ukaze of the Czar, Europeans were ready enough to interpret as best suited their enterprises something which they entirely failed to construe in terms expressive of the negative nature of Chinese civilization; and so it happened that though the government of China had become no government at all from the moment that extraterritoriality destroyed the theory of Imperial inviolability and infallibility, the miracle of turning state negativism into an active governing element continued to work after a fashion because of the disguise which the immense distances afforded.

The empire, torn by internecine warfare, surrendered many of its essential prerogatives to foreigners, and by accepting the principle of extraterritoriality prepared the road to ultimate collapse. How in such circumstances was it possible to keep alive absolutism? The answer is so curious that we must be explicit and exhaustive.

Its chief clauses provided for the opening to British trade of Canton, Amoy, Foochow, Ningpo, and Shanghai, at which all British subjects were to enjoy the rights of extraterritoriality, being subject to the jurisdiction of their own officials only; also, for the cession to England of the island of Hongkong, and for the payment of a lump sum of about five million pounds as compensation for loss of opium, expenses of the war, etc.

So far back as 1902, when Great Britain negotiated with China the inoperative Mackay Commercial Treaty, provision was not only made for a complete reform of the Tariff import duties to be made two and a half times as large in return for a complete abolition of likin or inter-provincial trade-taxation but for the abolition of extraterritoriality when China should have erected a modern and efficient judicial system.

During previous years a number of Japanese police-stations and police-boxes had been established in defiance of the local authorities in these regions, and although China in these negotiations recorded her strongest possible objection to their presence as being the principal cause of the continual friction between Chinese and Japanese, Japan refused to withdraw from her contention that they did not constitute any extension of the principle of extraterritoriality, and that indeed Japanese police, distributed at such points as the Japanese consular authorities considered necessary, must be permanently accepted.

So far back as 1902, when Great Britain negotiated with China the inoperative Mackay Commercial Treaty, provision was not only made for a complete reform of the Tariff import duties to be made two and a half times as large in return for a complete abolition of likin or inter-provincial trade- taxation but for the abolition of extraterritoriality when China should have erected a modern and efficient judicial system.

In accordance with promises made at the Washington Conference, we have urged the calling of and are now represented at the Chinese Customs Conference and on the Commission on Extraterritoriality, where it will be our policy so far as possible to meet the, aspirations of China in all ways consistent with the interests of the countries involved.

In accordance with promises made at the Washington Conference, we have urged the calling of and are now represented at the Chinese Customs Conference and on the Commission on Extraterritoriality, where it will be our policy so far as possible to meet the, aspirations of China in all ways consistent with the interests of the countries involved.