308 SIBERIA 



the staple industry of Lancashire. The reasons for 

 this increase in Chinese trade are not far to seek. 

 The Japanese are able to speak with the Chinese in 

 their own language, they are intimately acquainted 

 with the conditions of native trade, and they are well 

 endowed with the energy and enterprise that are 

 necessary. In 1896 Japan imported cotton yarn to 

 the extent of £1,243,812, and exported £436,522 

 worth ; but in 1903 she only imported to the extent 

 of £78,225 and exported £3,205,233. These figures 

 are significant, and clearly show that Japan will 

 shortly dominate the cotton trade of Asia. Her power 

 over Asiatic tra:de, if recent developments are any 

 evidence, will become very harassing to us, and will 

 enable her to benefit by the open-door policy in 

 China very much more than we shall be able to do. 

 In any case it is obvious that she has secured a very 

 powerful hold on the commerce of China, while 

 Japanese teachers and publicists are labouring hard 

 to remodel the Chinese language, and Chinese 

 military officers are being trained in Japan. It is 

 our duty, in our own interests, to watch Japan very 

 carefully, although we are on friendly terms with 

 the country. For instance, a Chinese law encourages 

 Japanese merchants to enter into business partner- 

 ships with Chinese. The result of a piece of 

 favouritism of this nature can only be that Chinese 

 business will be conducted according to Japanese 

 methods and invariably in favour of Japan. Ever 

 since the last war the Chinese and Japanese have 

 been growing increasingly friendly, and, although 

 China may wish to be left alone, it is quite certain 

 that if her isolation is broken at all she will prefer 

 to have it broken by the Japanese rather than by any 

 nation of Western Europe. At present Japan is 

 certainly the most favoured nation in China ; she is 

 also the best represented, numerically speaking, and 



