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be allowed to gain the upper hand, and the great capitalists of Shanghai be expropriated as it was proposed to expropriate the gentry? Or should the right wing prevail, an alliance be concluded with the capitalists, and limits be set to the expropriation of landed estates? Chiang Kai-shek, through his marriage with Sun Yat-sen's wife's sister, had become allied with one of the greatest banking families. In the days of the siege of Shanghai Chiang, together with his closest colleagues (with the exception of Hu Han-min and Wang Chying-wei, a leader who will be mentioned later), decided on the second alternative. Shanghai came into his hands without a struggle, and the capital of the Shanghai financiers, and soon foreign capital as well, was placed at his disposal, so that he was able to pay his troops and finance his administration. At the same time the Russian advisers were dismissed or executed.

The decision arrived at by Chiang Kai-shek and his friends did not remain unopposed, and he parted from the "left group" (1927) which formed a rival government in Hankow, while Chiang Kai-shek made Nanking the seat of his government (April 1927). In that year Chiang not only concluded peace with the financiers and industrialists, but also a sort of "armistice" with the landowning gentry. "Land reform" still stood on the party program, but nothing was done, and in this way the confidence and co-operation of large sections of the gentry was secured. The choice of Nanking as the new capital pleased both the industrialists and the agrarians: the great bulk of China's young industries lay in the Yangtze region, and that region was still the principal one for agricultural produce; the landowners of the region were also in a better position with the great market of the capital in their neighbourhood.

Meanwhile the Nanking government had succeeded in carrying its dealings with the northern generals to a point at which they were largely out-manoeuvred and became ready for some sort of collaboration (1928). There were now four supreme commanders—Chiang Kai-shek, Fêng Yü-hsiang (the "Christian general"), Yen Hsi-shan, the governor of Shansi, and the Muslim Li Chung-yen. Naturally this was not a permanent solution; not only did Chiang Kai-shek's three rivals try to free themselves from his ever-growing influence and to gain full power themselves, but various groups under military leadership rose again and again, even in the home of the Republic, Canton itself. These struggles, which were carried on more by means of diplomacy and bribery than at arms, lasted until 1936. Chiang Kai-shek, as by far the most skilful player in this game, and at the same time the man who had the support of the foreign governments and of the financiers of Shanghai, gained the victory. China became unified under his dictatorship.

As early as 1928, when there seemed a possibility of uniting China, with the exception of Manchuria, which was dominated by Japan, and when the European powers began more and more to support Chiang Kai-shek, Japan felt that her interests in North China were threatened, and landed troops in Shantung. There was hard fighting on May 3rd, 1928. General Chang Tso-lin, in Manchuria, who was allied to Japan, endeavoured to secure a cessation of hostilities, but he fell victim to a Japanese assassin; his place was taken by his son, Chang Hsüeh-liang, who pursued an anti-Japanese policy. The Japanese recognized, however, that in view of the international situation the time had not yet come for intervention in North China. In 1929 they withdrew their troops and concentrated instead on their plans for Manchuria.

Until the time of the "Manchurian incident" (1931), the Nanking government steadily grew in strength. It gained the confidence of the western powers, who proposed to make use of it in opposition to Japan's policy of expansion in the Pacific sphere. On the strength of this favourable situation in its foreign relations, the Nanking government succeeded in getting rid of one after another of the Capitulations. Above all, the administration of the "Maritime Customs", that is to say of the collection of duties on imports and exports, was brought under the control of the Chinese government: until then it had been under foreign control. Now that China could act with more freedom in the matter of tariffs, the government had greater financial resources, and through this and other measures it became financially more independent of the provinces. It succeeded in building up a small but modern army, loyal to the government and superior to the still existing provincial armies. This army gained its military experience in skirmishes with the Communists and the remaining generals.

It is true that when in 1931 the Japanese occupied Manchuria, Nanking was helpless, since Manchuria was only loosely associated with Nanking, and its governor, Chang Hsüeh-liang, had tried to remain independent of it. Thus Manchuria was lost almost without a blow. On the other hand, the fighting with Japan that broke out soon afterwards in Shanghai brought credit to the young Nanking army, though owing to its numerical inferiority it was unsuccessful. China protested to the League of Nations against its loss of Manchuria. The League sent a commission (the Lytton Commission), which condemned Japan's action, but nothing further happened, and China indignantly broke away from her association with the Western powers (1932-1933). In view of the tense European situation (the beginning of the Hitler era in Germany, and the Italian plans of expansion), the Western powers did not want to fight Japan on China's behalf, and without that nothing more could be done. They pursued, indeed, a policy of playing off Japan against China, in order to keep those two powers occupied with each other, and so to divert Japan from Indo-China and the Pacific.

China had thus to be prepared for being involved one day in a great war with Japan. Chiang Kai-shek wanted to postpone war as long as possible. He wanted time to establish his power more thoroughly within the country, and to strengthen his army. In regard to external relations, the great powers would have to decide their attitude sooner or later. America could not be expected to take up a clear attitude: she was for peace and commerce, and she made greater profits out of her relations with Japan than with China; she sent supplies to both (until 1941). On the other hand, Britain and France were more and more turning away from Japan, and Russo-Japanese relations were at all times tense. Japan tried to emerge from her isolation by joining the "axis powers", Germany and Italy (1936); but it was still doubtful whether the Western powers would proceed with Russia, and therefore against Japan, or with the Axis, and therefore in alliance with Japan.

Japan for her part considered that if she was to raise the standard of living of her large population and to remain a world power, she must bring into being her "Greater East Asia", so as to have the needed raw material sources and export markets in the event of a collision with the Western powers; in addition to this, she needed a security girdle as extensive as possible in case of a conflict with Russia. In any case, "Greater East Asia" must be secured before the European conflict should break out.

4 The Sino-Japanese war (1937-1945)

Accordingly, from 1933 onward Japan followed up her conquest of Manchuria by bringing her influence to bear in Inner Mongolia and in North China. She succeeded first, by means of an immense system of smuggling, currency manipulation, and propaganda, in bringing a number of Mongol princes over to her side, and then (at the end of 1935) in establishing a semi-dependent government in North China. Chiang Kai-shek took no action.

The signal for the outbreak of war was an "incident" by the Marco Polo Bridge, south of Peking (July 7th, 1937). The Japanese government profited by a quite unimportant incident, undoubtedly provoked by the Japanese, in order to extend its dominion a little further. China still hesitated; there were negotiations. Japan brought up reinforcements and put forward demands which China could not be expected to be ready to fulfil. Japan then occupied Peking and Tientsin and wide regions between them and south of them. The Chinese soldiers stationed there withdrew almost without striking a blow, but formed up again and began to offer resistance. In order to facilitate the planned occupation of North China, including the province of Shantung, Japan decided on a diversionary campaign against Shanghai. The Nanking government sent its best troops to the new front, and held it for nearly three months against superior forces; but meanwhile the Japanese steadily advanced in North China. On November 9th Nanking fell into their hands. By the beginning of January 1938, the province of Shantung had also been conquered.

Chiang Kai-shek and his government fled to Ch'ung-k'ing (Chungking), the most important commercial and financial centre of the interior after Hankow, which was soon threatened by the Japanese fleet. By means of a number of landings the Japanese soon conquered the whole coast of China, so cutting off all supplies to the country; against hard fighting in some places they pushed inland along the railways and conquered the whole eastern half of China, the richest and most highly developed part of the country. Chiang Kai-shek had the support only of the agriculturally rich province of Szechwan, and of the scarcely developed provinces surrounding it. Here there was as yet no industry. Everything in the way of machinery and supplies that could be transported from the hastily dismantled factories was carried westward. Students and professors went west with all the contents of their universities, and worked on in small villages under very difficult conditions—one of the most memorable achievements of this war for China. But all this was by no means enough for waging a defensive war against Japan. Even the famous Burma Road could not save China.

By 1940-1941 Japan had attained her war aim: China was no longer a dangerous adversary. She was still able to engage in small-scale fighting, but could no longer secure any decisive result. Puppet governments were set up in Peking, Canton, and Nanking, and the Japanese waited for these governments gradually to induce supporters of Chiang Kai-shek to come over to their side. Most was expected of Wang Ching-wei, who headed the new Nanking government. He was one of the oldest followers of Sun Yat-sen, and was regarded as a democrat. In 1925, after Sun Yat-sen's death, he had been for a time the head of the Nanking government, and for a short time in 1930 he had led a government in Peking that was opposed to Chiang Kai-shek's dictatorship. Beyond any question Wang still had many followers, including some in the highest circles at Chungking, men of eastern China who considered that collaboration with Japan, especially in the economic field, offered good prospects. Japan paid lip service to this policy: there was talk of sister peoples, which could help each other and supply each other's needs. There was propaganda for a new "Greater East Asian" philosophy, Wang-tao, in accordance with which all the peoples of the East could live together in peace under a thinly disguised dictatorship. What actually happened was that everywhere Japanese capitalists established themselves in the former Chinese industrial plants, bought up land and securities, and exploited the country for the conduct of their war.

After the great initial successes of Hitlerite Germany in 1939-1941, Japan became convinced that the time had come for a decisive blow against the positions of the Western European powers and the United States in the Far East. Lightning blows were struck at Hong Kong and Singapore, at French Indo-China, and at the Netherlands East Indies. The American navy seemed to have been eliminated by the attack on Pearl Harbour, and one group of islands after another fell into the hands of the Japanese. Japan was at the gates of India and Australia. Russia was carrying on a desperate defensive struggle against the Axis, and there was no reason to expect any intervention from her in the Far East. Greater East Asia seemed assured against every danger.

The situation of Chiang Kai-shek's Chungking government seemed hopeless. Even the Burma Road was cut, and supplies could only be sent by air; there was shortage of everything. With immense energy small industries were begun all over western China, often organized as co-operatives; roads and railways were built—but with such resources would it ever be possible to throw the Japanese into the sea? Everything depended on holding out until a new page was turned in Europe. Infinitely slow seemed the progress of the first gleams of hope—the steady front in Burma, the reconquest of the first groups of inlands; the first bomb attacks on Japan itself. Even in May, 1945, with the war ended in Europe, there seemed no sign of its ending in the Far East. Then came the atom bomb, bringing the collapse of Japan; the Japanese armies receded from China, and suddenly China was free, mistress once

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