MIA > Archive > Arthur Rosenberg
From International Press Correspondence, Vol. 2 No. 54, 28 June 1922, p. 401.
Transcribed & marked up by Einde O’Callaghan for the Marxists’ Internet Archive.
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The surprising victory of American Capital in Pekin has called forth its expected repercussion in Japan. The Japanese Takahachi Cabinet collapsed. Japan in fact stands at a momentous crossroads. Shall she simply accept the fact that America’s supremacy in China seems to be assured by Wu-Pei-Fu’s victory, or shall she use every means in order to defend her position? The downfall of Takahatchi was an expression of the dissatisfaction with the fact that the Premier had not the necessary steps in order to support the friend of Japan, Chang-Tso-Lin, who up to then had held power in Pekin. The events of the Japanese cabinet crisis show once again the absolute insignificance of so-called Japanese parliamentarism. The Japanese bourgeoisie still leaves the political guidance of the state in the hands of the old feudal nobility. The little military clique gathered about the throne decides on state policy and appoints Ministers or removes them, just as it chooses. Of course the pronouncedly imperialist section of the Japanese bourgeoisie goes hand in hand with the militarists, whilst the liberal pacifist groups count for very little and the proletariat is brutally trampled down. Takahachi’s successor is Admiral Kato, who as a member of the Japanese delegation in Washington proved himself to be a very astute diplomat The appointment of Kato shows that the definitely imperialist section is in control just as before. Kato will make use of amiable phrases as occasion requires, but he will not give way on essentials.
The Japanese cabinet crisis has influenced the civil war in China. After his defeat near Peking, Chang-Tso-Lin fled into Manchuria and sought to conclude an armistice with the Wu- Pei-Fu. As soon however as Kato’s ministry had assumed power in Tokio, Chang proclaimed an end to the armistice and again advanced against Wu. Chang had doubtless received sufficient money and promises from his Japanese friends to give him fresh encouragement. At the time, fighting is going on along the borders of Manchuria. Wu, it is true, holds his own, but at any rate, the position of the protégé of American capital in the North is not undisputed. And that above all, is the chief thing for the Japanese capitalists.
In the meantime Wu has commenced his expected military activities in Southern China against Sun-Yat-Sen, the President of Southern China. The democratic government of Sun which was supported by the peasants and workers and was hostile to foreign capitalists, was a stumbling rock in the path of American speculators. As soon as Wu had comfortably established himself in Peking he began the necessary preparations to remove Sun from Canton. The approaching overthrow of Sun was predicted for some weeks in the American and English capitalist press. The action was entered upon in the true Chinese manner. American money circulated in Canton and caused a part of the troops stationed there to transfer their adherence. A General Chen, who up to to then had served in the Southern Chinese Army, suddenly went over to Wu. In that city of millions of inhabitants, Canton, bloody struggles are now proceeding. The fleet, which remained faithful to Sun, bombarded the positions of the rebels in and around Canton. The followers of Wu, like true mercenaries of American capital, began to plunder the shops. There are no authentic reports to hand upon the issue of these conflicts. The reports which appear in the English and American press claiming a complete victory for Wu should be accepted with caution.
It would of course mean a great success for American capital if it obtained a free hand in Canton, the most important commercial city of Southern China. At the present, the English capitalists follow in the steps of America in all Chinese affairs. What the American abhors the Englishman will also execrate, but in spite of the general satisfaction which is manifested in English capitalist circles over the course of events in China, an appreciable blow has recently been sustained in their most vulnerable part. The Chinese Government has declared that it cannot pay the interest on the well known Vickers loan. This loan was contracted in 1919. At that time the English armament firm of Vickers Ltd. supplied the Chinese government with great quantities of war material, paid for with this loan. The firm of Vickers and its business associates in the banks then succeeded in foisting this rotten paper on the English public. Since April 1st 1922, the English holders of this Chinese loan have not received a penny of interest.
Chinese finances are in a desperate condition. China’s national debt amounts to $500,000,000. The strange part about it is that a portion of the capitalist creditors of China are quite assured of their interest whilst another portion gets nothing. A part of the Chinese loans are secured upon the most important of the state revenues, the customs, the yield from the salt tax, and the proceeds from various railways. These revenues are received directly by the agents of the foreign bankers. The payment of interest on the loans which are covered by these revenues is therefore in good order. The Japanese and American capitalists have succeeded in reserving these securities for themselves whilst the English with their Vickers loan are left in the lurch.
The assumption of power in Peking by Wu has not changed the wretched condition of Chinese finances. American capital had to advance enormous sums in order to bring the Chinese budget into something like order. The following course has been recommended in Washington in order to render possible the payment of all the interest. The Chinese customs duties and other taxes are to be greatly increased, and the task of getting in this revenue shall be assigned to the foreign capitalists. The ways and means by which the foreign capitalists are to come by their money affords an interesting parallel to the German reparations problem, China is almost at the extremity towards which Germany is also steering if the Entente capitalists have their way. It is the intention of American capitalists by means of new indirect taxes upon taxes, to plunder the broad masses of China. These sums will be immediately handed over to the agents of America and thus the interest on China’s debt to America will be met. If Wu should prove successful in the North and in the South it will involve a terrible enslavement of China by American capital.
But the other capitalist competitors will not permit themselves to be shut out so unconditionally. Japan takes up the struggle. France, which has likewise invested a good deal of money in China is prepared to back Japan. And the English in spite of their good intentions also come by reason of their real interests, into conflict with America. The Chinese witches’ caldron bubbles and hisses louder than ever. The time is not distant when there the grouping of the European powers in the East and in the Far East will take place. Then there will really set in the struggle for the world market and for opportunities of exploitation between the different capitalist groups. The United Slates is arming itself in any event. In spite of the Washington disarmament agreement the Senate voted $294,000,000 for naval expenditure for the current year. America intends to spend 14 million dollars for seaplanes. In addition to this, a considerable sum will be devoted to the erection of an American naval base in the Hawaiian Islands. In Washington disarmament was preached. But in Canton there preach the machine guns financed by America.
Last updated on 27 December 2018