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LEFT CHINA 474 CHINA compose the quarrel, and the President, Hsu Chi-Cheng, ordered both sides to retire to their barracks and enter upon negotiations. The effort was ineffective, however. Tuan Chi-jui was surprised by Wu Pei-fu's troops south of Nanynau and retreated toward the capital. In the severe fighting that followed July 15-18 the forces of Wu Pei-fu were victorious. The demoralized troops of Tuan Chi-jui were reported as retreating toward Peking. The diplomatic corps in that city served notice on the government that Peking must not be bombarded and that the safety of foreign residents must be assured. The gates of the city were closed and martial law declared. Mem- bers of the old imperial family appealed to the foreign legations for protection as they feared that they would be made the victims of propaganda, alleging that General Wu Pei-fu was carrying on a movement for the restoration of the monarchy. A few days later the forces of Tuan were defeated and their leader made an ineffectual attempt to commit suicide. On Aug. 28, 1920, Dr. Sun-Yat-sen, the first President of the Chinese Republic, Governor Wu-Ting-Fang and other lead- ers of the Southern Government, issued a proclamation that they looked for the overthrow of the illegal government of Peking through the forces of General Tang, who was holding control over the provinces of Yunnan, Kwei-Chow, and Sze-chuen. Military headquarters for the new government were established in the eastern part of Sze-chuen, In spite of this, however, the Premier announced on Aug. 28 that peace with the Southern Government was an accomplished fact. On Aug. 28 Dr. Paul S. Reinsch, former minister to China, and for several years legal adviser to the Chinese government, resigned his position. A new cabinet was appointed on Aug. 11, 1920. Relations with Japan. — Shortly after the formation of the Chinese Republic, Japan sought to enforce demands on China that practically robbed her of a large part of her sovereignty. The march of the Japanese on Tsing-tao at the out- break of the World War had been made through 150 miles of Chinese territory. Against this violation of her neutrality China had protested, but as she had no army or navy that could cope with the Japanese, her protests were unheeded. On Jan. 18, 1915, the Japanese Minister to Peking presented 21 demands on the part of his government. They were made under the plea of "maintaining the peace of eastern Asia and of further strength- ening the friendly relations existing be- tween the two neighboring nations." Space forbids the statement here of all the demands, but, besides, the arrange- ments regarding Shantung elsewhere alluded to, they included the demands that the leases of Port Arthur, Dalny and the railroads should be extended for 99 years, that Japan should have an equal voice with China in matters relat- ing to south Manchuria and inner Mon- golia, that Japanese instructors and ad- visers should be employed by China and that 50 per cent, of war munitions needed by China should be bought from Japan. Foreign governments were alarmed at the sweeping character of these demands and asked for explanations. They were told in reply that only ten of the articles were really demands, while the rest were requests. Under pressure from her ally, Great Britain, Japan eventually modified some of the demands but remained firm on others, and, on May 6, 1915, issued an ultimatum to China and began to mo- bilize against her. Under the threat of invasion, China acquiesced and signed away her sovereignty, giving to Japan important concessions that in some cases extended beyond the year 2000. The Chinese were helpless in the pres- ence of physical force, but they had a potent weapon in the buying power of over 300,000,000 people, and this they proceeded to utilize at once. A boycott was instituted against Japanese goods which resulted in the loss of many mil- lions of dollars by Japanese traders and in many cases led to their bankruptcy. In certain districts goods were burned and widespread disorders occurred. Japan protested, and the instigators of the out- breaks were punished. China in the World War. — The part taken by China in the World War was a peculiar one, and was largely influenced by her relations with Japan, which had never been cordial since the close of the Chinese-Japanese War. As early as 1914, China had expressed a desire to join in the Anglo-Japanese operations against Tsing-Tao, but an intimation was con- veyed to her that her participation might cause complications with other powers. China had especial reason to be incensed against Germany, whose troops had dis- played great brutality during the Boxer troubles and who by force majeure had extorted valuable possessions and con- cessions from her in Shantung province. Again in November, 1915, she sought to range herself upon the side of the Allies, but again she was held in check by the objections of Japan. The motives that actuated the latter nation have been variously explained. By some it was thought that Japan looked with aj)pre- hension upon the development of China