In Outer Mongolia Russian interests predominated.  In 1911 there were diplomatic incidents in connection with the Mongolian question.  At the end of 1911 the Hutuktu of Urga declared himself independent, and the Chinese were expelled from the country.  A secret treaty was concluded in 1912 with Russia, under which Russia recognized the independence of Outer Mongolia, but was accorded an important part as adviser and helper in the development of the country.  In 1913 a Russo-Chinese treaty was concluded, under which the autonomy of Outer Mongolia was recognized, but Mongolia became a part of the Chinese realm.  After the Russian revolution had begun, revolution was carried also into Mongolia.  The country suffered all the horrors of the struggles between White Russians (General Ungern-Sternberg) and the Reds; there were also Chinese attempts at intervention, though without success, until in the end Mongolia became a Soviet Republic.  As such she is closely associated with Soviet Russia.  China, however, did not quickly recognize Mongolia’s independence, and in his work China’s Destiny (1944) Chiang Kai-shek insisted that China’s aim remained the recovery of the frontiers of 1840, which means among other things the recovery of Outer Mongolia.  In spite of this, after the Second World War Chiang Kai-shek had to renounce de jure all rights in Outer Mongolia.  Inner Mongolia was always united to China much more closely; only for a time during the war with Japan did the Japanese maintain there a puppet government.  The disappearance of this government went almost unnoticed.

At the time when Russian penetration into Mongolia began, Japan had entered upon a similar course in Manchuria, which she regarded as her “sphere of influence”.  On the outbreak of the first world war Japan occupied the former German-leased territory of Tsingtao, at the extremity of the province of Shantung, and from that point she occupied the railways of the province.  Her plan was to make the whole province a protectorate; Shantung is rich in coal and especially in metals.  Japan’s plans were revealed in the notorious “Twenty-one Demands” (1915).  Against the furious opposition especially of the students of Peking, Yuean Shih-k’ai’s government accepted the greater part of these demands.  In negotiations with Great Britain, in which Japan took advantage of the British commitments in Europe, Japan had to be conceded the predominant position in the Far East.

Meanwhile Yuean Shih-k’ai had made all preparations for turning the Republic once more into an empire, in which he would be emperor; the empire was to be based once more on the gentry group.  In 1914 he secured an amendment of the Constitution under which the governing power was to be entirely in the hands of the president; at the end of 1914 he secured his appointment as president for life, and at the end of 1915 he induced the parliament to resolve that he should become emperor.