The Northern military faction, which controlled the Peking Government, was completely dependent upon Japan, and could do nothing to resist Japanese aggression.  All the other Powers were fully occupied with the war, and had sold China to Japan in return for Japanese neutrality—­for Japan can hardly be counted as a belligerent after the capture of Tsingtau in November 1914.  The Southern Government and all the liberal elements in the North were against the clique which had seized the Central Government.  In March 1918, military and naval agreements were concluded between China and Japan, of which the text, never officially published, is given by Millard.[78] By these agreements the Japanese were enabled, under pretence of military needs in Manchuria and Mongolia, to send troops into Chinese territory, to acquire control of the Chinese Eastern Railway and consequently of Northern Manchuria, and generally to keep all Northern China at their mercy.  In all this, the excuse of operations against the Bolsheviks was very convenient.

After this the Japanese went ahead gaily.  During the year 1918, they placed loans in China to the extent of Yen 246,000,000,[79] i.e., about L25,000,000.  China was engaged in civil war, and both sides were as willing as the European belligerents to sell freedom for the sake of victory.  Unfortunately for Japan, the side on which Japan was fighting in the war proved suddenly victorious, and some portion of the energies of Europe and America became available for holding Japan in check.  For various reasons, however, the effect of this did not show itself until after the Treaty of Versailles was concluded.  During the peace negotiations, England and France, in virtue of secret agreements, were compelled to support Japan.  President Wilson, as usual, sacrificed everything to his League of Nations, which the Japanese would not have joined unless they had been allowed to keep Shantung.  The chapter on this subject in Mr. Lansing’s account of the negotiations is one of the most interesting in his book.[80] By Article 156 of the Treaty of Versailles, “Germany renounces, in favour of Japan, all her rights, title, and privileges” in the province of Shantung.[81] Although President Wilson had consented to this gross violation of justice, America refused to ratify the Treaty, and was therefore free to raise the issue of Shantung at Washington.  The Chinese delegates at Versailles resisted the clauses concerning Shantung to the last, and finally, encouraged by a vigorous agitation of Young China,[82] refused to sign the Treaty.  They saw no reason why they should be robbed of a province as a reward for having joined the Allies.  All the other Allies agreed to a proceeding exactly as iniquitous as it would have been if we had annexed Virginia as a reward to the Americans for having helped us in the war, or France had annexed Kent on a similar pretext.