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The frontier line of Russian control forms a large crescent from the foot of the Persian Gulf around to Port Arthur. The western horn of this crescent has been added in the short time since the Russian loan was made to Persia.

order. If this be confirmed it would point toward Tsi-An's definite acceptance of foreign influence as her guide. Two edicts on January 14 point in the same direction. One admonishes all officials to protect native Christians and maintain their rights; the other dismisses from office several officials for complicity in Boxerism. An edict previously issued directs the officials of Han-Lin college to study Western political science, and to prepare themselves within five months for examination.

Two Court Functions. January 22 may stand as an era in China's international relations. The ministers of foreign powers were received in an audience as representatives of sovereigns equal in rank to the emperor of China, no longer

as messengers from barbarous inferiors to whom favor was granted.

The audience was held in the innermost large hall of the Forbidden City. Emperor Kwang-Su sat behind a table, four princes at his back, officials at each side. The empress-dowager was concealed behind a screen. Secretaries translated the addresses of the ministers to the emperor, and copies were handed to him. His replies were delivered by Prince Ching. Formerly the emperor had replied in Manchu to the ministers, and his words had been interpreted by Prince Ching. On this occasion he is said to have appeared as an automaton, weaker and more childish than before the great outbreak. He was silent throughout.

On January 28, at a reception of the foreign ministers, with the chargés d'affaires, and the secretaries of legations, the empress-dowager, Tsi-An, made her formal appearance on a throne. On a low dais before the throne the emperor was seated. Still the fiction was maintained of recognizing the emperor as sovereign. Before his dais the ministers alighted from their chairs, bowing to him thrice. The Austrian representative, the doyen of the diplomatic corps, addressed the emperor, whose reply was uttered in a weak, high-pitched voice and then handed in manuscript to Prince Ching kneeling; and by him it was delivered to the Austrian minister. The empressdowager was seated above the emperor, not as denoting her higher rank, but in accordance with the Chinese custom of giving the higher place to a relative of an older generation.

The foreign ministers, since the court's return, are tending to accept the policy, which they strongly opposed before, of recognizing the empress-dowager as actual sovereign. The emperor's incapacity has been more plainly manifested.

United States Fiscal Agency.-The sec

retary of the International Banking Corporation (pp. 643, 715) received from the secretary of state at Washington, January 8, the official designation of that corporation as the United States fiscal agent to receive at Shanghai the payments of the Chinese indemnity. The charter of this corporation, granted by the Connecticut legislature, June 14, is the most liberal and extensive ever granted by that state. The corporation will be represented in China by James S. Fearon, of the firm of Fearon, Daniel & Co., of New York and Shanghai, who was appointed by the secretary of state, January 8, the fiduciary agent of this government. On completion of the organization in Shanghai, branch offices for an exchange business will be established in Manila, Tien-Tsin, and Yokohama.

Manchurian Affairs.-Treaty Negotiations. Until the latter part of January negotiations concerning the proposed.

treaty with Russia made little progress. The Russian minister to China was reported, January 5, as insisting that under no circumstances would Russia consent that other powers have a hand in the construction and operation of railways in Manchuria without first obtaining Russia's permission. Ten days later, China was reported as particularly opposed to giving Russia complete control of railway and mining concessions; and Russia, notwithstanding her protestations of firmness, as disposed to some compromise. On January 27 the Russian minister had conceded verbally all the important points to which China objected in the treaty. But with Russian shrewdness this yielding on the treaty was countervailed by insisting on a new agreement with the Russo-Chinese bank which was kept secret as far as possible, securing for Russia, through the bank, exclusive mining and other privileges in Manchuria-Russia thus compensating herself for her seeming compromise.

Concerning this new situation, Prince Ching is reported as saying in effect: Russia has our territory; we have been compelled to buy it back; and we have made the best bargain that we could,

securing material reductions for our concession originally proposed.

The interest of foreign diplomats in China was thus transferred from the governmental treaty to the bank agreement. Russia as a nation was no longer on the field of open action. Russia, now appearing as the Russo-Chinese bank, was dealing with both Russia and China, and was receiving from them both, through secret agreements, all the desired preferential privileges in railway and mining. Nobody is deceived by this sleight-of-hand. Whether Great Britain, Japan, and the United Statesthe three powers chiefly interested—will accept it, is a question for a subsequent month.

Trouble at New-Chwang.- Early in the month there occurred at NewChwang, a treaty port in Manchuria, several fights between the American and British sailors of two war ships (the Vicksburg and the Algerine) in winter

THE EUROPEAN SITUATION.

quarters there, and the soldiers of the Russian garrison. The fights, such as occur when sailors long closely confined on shipboard are given liberty on shore, occurred when social relations had been somewhat strained between the naval officers and the Russian shore commanders. A Russian force, sent to arrest a few disorderly British soldiers, arrested a party of Americans by mistake, in doing which they had a sharp fight. Thereafter, when American or British sailors met Russian soldiers in the streets, fist fights occurred, usually to the damage of the Russians who are little accustomed to that style of warfare.

Ambassadors at Washington and St. Petersburg were promptly in conference with the respective governments. Orders were sent for caution and restraint at New-Chwang, and the disquieting incident is said to have occasioned no lasting disagreement.

Relations.

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THE EUROPEAN SITUATION. Anglo-German Charges. In newspaper utterances, and seemingly in popular feeling, for several months Anglo-phobia has been prevalent in Germany. That nation's recent and rapid ascent in manufactures and seaborne trade, till only Great Britain remained a successful rival in Europe, is judged by some to have made it specially easy for Germans to see British faults and weakness. All accusations of British cruelty, oppression, and ravage, toward a brave little people in South Africa seem in Germany to have been popularly accepted to the full; so that, though the acts of the Berlin government have been studiously correct, and the kaiser has been at pains to show personal friendliness, an immense mass of the German people, with a large portion of the press, have for months been overflowing with anti-English bitterness.

Meanwhile, England, as is her usual slow and perhaps provoking way, showed no great stir of anger and entered little of counter-plea.

The English Defense, Offensive.-This first stage of the jangle ended suddenly.

BARON LUDOVIC MONCHEUR BELGIAN MINISTER TO THE UNITED STATES.

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Mr. Chamberlain defending himself and his government against oft repeated charges of actually murderous inhumanity, quoted, in a public address at Edinburgh, the history of Germany's invasion of France, instancing not only specific acts, but also official orders, as severe as the severest of those in South Africa which had been denounced as showing English inhumanity.

The jangle now burst into its second stage-Germany, in at least a large portion of its press and a very active portion of the reichstag, in a flaming anger at insults to its army by a British cabinet minister; England, for the first time, stirring with profound indignation, even assuming in some quarters a tone of menace, warning Germany, as in the St. James Gazette, that "both eastward and westward of her there is a menace which holds her armed to the teeth in sleepless vigilance," and that in her day of trial she may bitterly regret throwing

away" England's good will." The "menace is, of course, France and Russia.

At Berlin, in the reichstag, after a fierce invective by Count von StolbergWernigerode, the German chancellor spoke. Count von Bülow said:

The last speaker alluded to a reference an English minister recently made to the German army's conduct in the Franco-German war. ! believe we are all agreed, and I think all sensible Englishmen agree with us, that when a minister considers himself called on to justify his policy, and such a thing may happen, he does well to leave foreign countries out of the discussion. Should he however, wish to adduce examples from abroad, it is advisable that he should proceed with caution, as otherwise he may incur the risk of not only being misunderstood, but also of hurting foreign feelings, even though, as I am ready to assume, there was in the case of the present instance, no intention of so doing. This is more regrettable when it happens in the case of countries which have always maintained their friendly relations undisturbed, a continuance of which is equally to the interest of both parties. It is quite comprehensible that a people which become so thoroughly part and parcel of its glorious army, as in Germany, should revolt at any appearance of the history of our glorious struggle for national unity being misrepresented. But the German army stands much too high and its escutcheon is too bright for them to be affected by warped judgments. Such a critic, in the words of Frederick the Great, concerning traducers of himself and the German army, is "simply biting on granite."

This rebuke of Mr. Chamberlain caused in England widespread irritation. Little more note, however, seems to have been taken in England than in Germany that Mr. Chamberlain's main line in his speech was not an offensive charge of inhumanity on the German army in France, so much as a defensive statement from official reports that the British army accused by Germans had not gone beyond German example. The prudence of his doing even this, in view of the recent excited mood of the German people, may of course be questioned. He, however, in a speech at Birmingham, January 11, declared himself as follows:

What I have said, I have said. I withdraw nothing; I qualify nothing; I defend nothing. As I read history, no British minister has ever served his country faithfully and at the same time been popular abroad. I, therefore, make allowance for foreign criti

cism. I will not follow the example that has been set me. I do not want to give lessons to a foreign minister, and I will not accept any at his hands. I am responsible only to my sovereign and my countrymen.

The sharpest British criticism of Count Von Bülow sets forth the fact that while he knew that his countrymen's anger against Britain had as its chief basis a calumny, he lacked courage to declare that fact.

A Basal Accord.-Those who know the deeper current of international feelings and interests in Europe, declare that whatever bitterness may be caused by commercial rivalry, Britain and Germany will be likely to do more fault-finding than fighting with each other. Not only are there racial affinities; there are also outside pressures constantly liable to emerge on various international lines, which tend to bring the two into courses of reciprocal helpfulness.

Visit of the Prince of Wales.-On January 25, the Prince of Wales arrived in Berlin to represent King Edward at the celebration of the anniversary of Emperor William's birth, January 27. Not the least sign of estrangement of the kaiser from the British court has been The prince on his arrival was received with elaborate public ceremony and with all possible attentions from the imperial family. His passing through the streets was without applause. The populace, though giving no indications of disrespect, showed the chilling effect of the recent disagreement of officials.

seen.

The Dreibund in Question.-A Situation Vague and Delicate.-The delicate balancing which is characteristic of the European international situation is seen in the questions, suspicions, suggestions, and prophecies which have been heard in Rome, Vienna, Berlin, London, and St. Petersburg, as echoes from the German chancellor's intimation in the reichstag, January 8, that the triple alliance (Germany, Austria, Italy) had no longer the significance for Germany which it had at its foundation by Bismarck at Andrassy in 1870. As the dreibund has not yet been renewed for another term and awaits Italy's action

THE EUROPEAN SITUATION.

Germany's light estimate of its necessity, though of course acknowledging it to be a valuable guaranty of peace, throws some doubt on its continuance. The question is suggested whether this avowal by the chief power of the three powers in alliance indicates some new combination.

Possible New Combinations. Among the possible combinations suggested, Italy's accession to the dual alliance (Russia, France) seems most in view Italian friendliness to France having shown recent increase; while at St. Petersburg the Novoye Vremya goes so far as to call on Italy to free itself "from the strangling toils of Germany and Austria." The closer relations between Italy and France found official statement in the French chamber of

deputies, January 20, in a speech by the premier, M. Delcassé, who said:

The Franco-Italian accord of November 2, 1898, and the African convention of March 21, 1899, have happily modified the character of the political relations of France and Italy. These have become so friendly and confiding that they have allowed the two governments directly to exchange to their equal satisfaction complete explanations on all their interests in the Mediterranean. These explanations have led them to certify the perfect agreement of their views on all points calculated to interest their respective situation, and led in April last to the Toulon demonstration, greeted on both sides as the end of too long a period

of needless misunderstanding.

It is not evident that Great Britain's interests would cause her to desire Italy's renewed adhesion to the dreibund, inasmuch as Italy's joining Russia and France would take into that

powerful union one power amicably disposed toward England, and that power with a strong navy. A prominent London journal, however, seems to deprecate any change in that direction as "an unmitigated disaster." "Europe cannot wish to be dictated to by the hotheads of Paris or the vindictive obscurantists of Moscow."

In Italy all the industrial and commercial classes are said to demand the dropping of the alliance. The agrarians see a menace in the new German tariff, and the nationalists have no liking for

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any league with Austria whose grasp of Italy's ports they hope to unloose.

France and Italy. In the press of Berlin and Vienna there is keen discussion of " the new understanding "between France and Italy.

Intrigues in the Balkans.--That the Balkan provinces were not seething with plots would be a rare item of news. Reports at present are viewed as indicating a Russian intrigue to unite in one or another indirect way Servia and Montenegro- a union which would soon involve the establishment of a Russian protectorate over both, in dereliction of Austria's interests recognized in the Russo-Hungarian agreement of 1897. Details may wait for further developments, but the movement has reached a

stage worthy of notice when the Vienna Fremdenblatt, organ of the Austrian foreign office, uses such language as the following:

This country is prepared to play a strong solo part whenever the status quo in its immediate neighborhood is likely to be disturbed, or whenever Austro-Hungarian traditional policy is involved."

She

Russia's recurring scheme to establish a protectorate over the Slav states in the Balkan peninsula cannot fail to rouse British antagonism, unless Britain's policy in this region has changed. has always regarded Austria-Hungary as warden of the Balkans; and Lord Rosebery, when premier, remarked that Britain's interests in all this region were not distinguishable from Austria's. How far she would now go in maintaining the status quo in this inflammable region remains to be seen.

Britain and Russia.-Very noticeable of late has been the recurrence in the Russian press of the topic of an AngloRussian agreement. At first no basis was discovered for such agreement; but in the first week in January the Novoye Vremya, in an article headed England or Germany," brought forth this:

The possibility of joining the FrancoRussian alliance as greater for England than for Germany. At a third party is far all events, so far as we are concerned also, an alliance with England is much more

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