Our Foreign Relations: China and Bulwer

Then commenced for China the difficult lesson of learning how to manage foreign affairs. The foreign ministers came to reside permanently in Pekin. The Tsung-li Yamen was organized, and foreign affairs were controlled by this new board. The foreign trade of China began to increase rapidly. It has now reached the figure of about three hundred millions of dollars annually.

Great Britain has 75 per cent. of China's foreign trade, and two-thirds of the foreign population. It must be said that the policy of England in the far East is just to other nations. She asks nothing but equal rights, and grants equal rights to all nations. She opens treaty ports where all flags are equal. She can readily afford to do this, because she is sure of holding 75 per cent. of all the trade that is developed. Even in Cochin-China, a French province, England does nearly as much trade as France.

Much has been written about our relations with England in the far East. I am glad that those relations are friendly, and on proper and suitable occasions this country and England should act together. They should both protest against the further partition of China. It must be remembered, however, that the American merchant finds in the East no stronger competitor than the British merchant.

It is idle to say China can grant mining or railroad concessions to whom she pleases. That is exactly what she cannot do. In her unpreparedness for war, she must do whatever any other nation demands of her. The inclination of China has always been to turn to America in all industrial enterprises. The recommendations of Sheng Taotai in this regard could not be carried out because the competition of the European powers was too serious and influential.

Let the world assist the most ancient of nations in her efforts to enter worthily into the family of civilized peoples. Let the world respect her autonomy, and she will pay back its services by giving to its commerce the boundless riches of her mines, and the hoarded wealth of centuries."]

While our relations with Great Britain are officially declared to be quite friendly, a cloud, no bigger than a man's hand, is hovering in the diplomatic horizon. The commercial importance of the proposed Nicaragua canal has been alluded to in preceding pages. In this place it is to be considered in its aspect as a possible disturber of international harmony.

Omitting details, it may be stated that an inter-oceanic waterway has long been desired by American statesmen and the commercial world. Schemes have been set afoot to accomplish the work, and, from various causes, have failed. In his message to the Fifty-sixth Congress the President states the situation of affairs as follows:

"The all-important matter of an inter-oceanic canal has assumed a new phase. Adhering to its refusal to reopen the question of the forfeiture of the contract of the Maritime Canal Company, which was terminated for alleged non-execution in October, 1899, the government of Nicaragua has since supplemented that action by declaring the so-styled Eyre-Cragin option void for non-payment of the stipulated advance. Protests in relation to these acts have been filed in the state department and are under consideration. Deeming itself relieved from existing engagements, the Nicaraguan government shows a disposition to deal freely with the canal question in the way of negotiations with the United States or by taking measures to promote the waterway.

Overtures for a convention to effect the building of the canal under the auspices of the United States are under consideration. In the mean time the views of Congress upon the general subject, in the light of the report of the Commission appointed to examine the comparative merits of the various ship-canal projects, may be awaited.

I commend to the early attention of the Senate the convention with Great Britain to facilitate the construction of such a canal, and to remove any objections which might arise out of the convention commonly called the Clayton-Bulwer treaty."]

This convention, known as the Hay-Pauncefote Canal Treaty, from the names of the American and English negotiators, contained the following provisions:

Article I. It is agreed that the canal can be constructed under the auspices of the government of the United States, either directly at its own cost, or by gift or loan of money to individuals or corporations, or through subscription to or purchase of stock or shares, and that, subject to the provisions of the present convention, the said government shall have and enjoy all the rights incident to such construction, as well as the exclusive right of providing for the regulation and management of the canal.

Article II. The high contracting parties, desiring to preserve and maintain the "general principle" of neutralization established in Article VIII. of the Clayton-Bulwer Convention, adopt as basis of such neutralization the following rules, substantially as embodied in the convention between Great Britain and certain other powers, signed at Constantinople October 29, 1888, for the free navigation of the Suez Maritime Canal. This is to say:

First -- The canal shall be free and open, in time of war as in time of peace, to the vessels of commerce and war of all nations, on terms of entire equality, so that there shall be no discrimination against any nation or its citizens or subjects in respect of the conditions or charges of traffic or otherwise.

Second -- The canal shall never be blockaded, nor shall any right of war be exercised nor any act of hostility be committed within it.