File No. 893.01/88
Minister Reinsch to
the Secretary of State
No. 931
American Legation,
Peking,
February 9, 1916.
Sir: I have the honor to report that, as an
engagement had been made for me to see the President on Thursday,
January 20th last, I took occasion at that time to present to His
Excellency the message from the President of the United States,
communicated in your telegram of January 17, 5 p.m.4 President Yuan Shih-kai received this courtesy with
a warm expression of his appreciation of the friendship of the American
President, Government and Nation.
I also have the honor to enclose, for your information, a memorandum of a
conversation, concerning a constructive policy for China, which took
place on the occasion of this visit; together with a copy of an informal
memorandum, regarding the use of foreign experts in the Chinese
administration, which I dictated at the request of President Yuan and
for his use, to embody the substance of part of the conversation.
I have [etc.]
[Inclosure 1]
Memorandum of conversation between His Excellency,
President Yuan Shih-kai and the American Minister on January 20,
1916
After communicating to President Yuan the message of President
Wilson, and receiving a warm expression of his cordial appreciation
thereof, the conversation turned upon the need of a constructive
policy, energetically pursued, in order to gain the support of all
parts of China and to render the Government efficient. The American
Minister expressed quite frankly the impression which he had gained
from confidential reports from the south and center of China, that
there was widespread dissatisfaction with the Government: he stated
that, in his opinion, the only way to overcome this feeling lay in
the early creation of a representative Parliament, and the pursuance
of a truly
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constructive
policy in the public administration. The President stated that the
Committee that was engaged in drawing up a Constitution was
following the injunction of President Goodnow that the Constitution
of an Oriental State should be adapted to the character and the
traditions of its people, and that, for that reason, he had
designated Professor Ariga, the Japanese Adviser, to assist the
Committee on the Constitution with systematic suggestions. The
President expressed himself as fully convinced of the necessity of
the early formation of a Parliament, and he signified assent when
the American Minister dwelt on the two-fold usefulness of a
Parliament in a modern State, as a source of information through
which the Government could ascertain the real needs and desires of
the public and as an organ through which the measures of the
Government, after full discussion, could be explained and rendered
acceptable to the people, thus gaining for the Government a broad
basis of support. While the President is always inclined to hark
back to the failure of the first Parliament, he has apparently
become convinced of the necessity of instituting a legislative body
with real power and responsibility, from which, however, it is
likely that he would desire to withhold full budgetary authority, as
is the case in Japan.
The conversation then turned upon methods of administrative
efficiency, especially auditing and accounting reform, and the need
of thoroughly overhauling the system of taxation, with due regard to
simplifying the forms and guarding the incidence so as not to
discourage the development of commerce. The President was inclined
to fall back on the usual argument that as long as China was not
permitted to raise a larger amount of revenue through import duties,
a thorough reform was impossible and the Government was forced,
through its necessities, to take recourse to every available form of
taxation. He admitted, however, the faultiness of the present
system, and agreed that a thorough reform of the land tax, together
with a simplified system of consumption and stamp taxes should be
established, with a view to eliminating all taxation on the
movements of commerce within the country which now does so much to
retard development. The importance of a great practical program of
improvements in the fundamental conditions of life, through the
building of more railways and better roads, through the development
of forestry and agriculture, and the reclamation of various areas
subject to floods, was then touched upon.
The conversation then turned upon the use of foreign experts in
China. The American Minister stated that the failure of the
foreign-educated Chinese to make the most of their education for the
benefit of China lay in the fact that when they returned from abroad
they did not find in responsible positions any men trained in the
practical administration of public and economic affairs, according
to modern standards of science and efficiency. Therefore, having
only a theoretical education in so far as its application to China
is concerned, they were unable to do really efficient service. The
remedy must be sought in using high class foreign experts in all the
technical branches of the administration: such as accounting and
auditing, railway administration, mining, and scientific
agriculture. These men should be animated with a desire to serve
China and to train the younger Chinese for leadership in efficient
administrative work. A further summary of this part of the
conversation is contained in a separate memorandum.
(His excellency, Mr. Liang Tun-yen, Minister of Communications,
stated to Mr. Reinsch subsequently that the President had fully
discussed the matter of employment of foreign experts in a cabinet
meeting early in February.)
[Inclosure 2]
Memorandum on the use of foreign experts by the
Chinese Government
The Need:
The efficient organization of the methods and processes of the
Chinese Government, and the training of younger officials in these
methods of efficiency require the presence in the Chinese
administration of thoroughly trained foreign experts. There is no
other way in which the Chinese administration can be organized to
fulfil the needs of modern government, and thus to preserve the
power and integrity of the Chinese State. Foreign experts serving in
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China should be devoted
primarily to the interests of the Chinese Government and should aim
to educate men among the younger and older officials to take the
place of such foreign experts in the shortest possible time.
The Use of Experts:
In order that definite and fruitful use of experts may be made, the
following method is suggested: Foreigners are employed for various
purposes under the designation of “Foreign experts in the service of
the Chinese Government.” When the qualifications of such an expert
have been ascertained, he will be assigned by special order, which
may be confidential, to give his attention and assistance primarily
to a certain official, ministry, department or bureau. He is
provided with a good interpreter, and is held responsible for seeing
that the affairs of the bureau to which he is assigned are conducted
in accordance with the standards of modern administrative
efficiency. The Chinese official in charge, to whom he is assigned,
would be instructed to invite the full cooperation of the foreign
expert, to discuss with him all matters of organization, work and
personnel, and to accept his mature advice unless specific reason
could be assigned for not so doing. The foreign expert will receive
instructions to cooperate in the same complete and frank way with
the official in charge and, at stated intervals, to make a report on
the organization and workings of the department to the Ministry, the
Secretary of State, or the Head of the State himself.
In this manner great assistance might be rendered, for instance: in
the organization of municipal services, the stamp tax, the land tax,
electric water power, river conservancy, codification of laws,
systematic accounting, technique of railway management, etc.
Result:
Official responsibility and efficiency will be developed. The
official in charge knows China, its special conditions and needs;
the expert knows methods of efficiency necessary in modern
government. The combination of the two will give to the Chinese
Government the organization it requires. Younger officials will be
trained.
Direct Employment of Foreigners:
Foreigners may also be employed directly, as Chinese executive
officials. Foreigners knowing China and the Chinese language
intimately, and having the other necessary qualifications may be
employed directly with good results as officials in various
departments. Technical experts, dealing with details of scientific
method and management could be employed in subsidiary positions as,
for instance, mechanical and mining engineers, mint assayers, health
experts, etc.
Method of Employment:
The experts should not owe their appointment to the foreign Legations
at Peking, nor feel any special responsibility towards them,
although in special cases the Legations might be consulted. The
following would recommend itself as a general system for selecting
experts: The Chinese Legations in the capitals of the principal
countries should put themselves in touch with the great institutions
of learning and technical associations (such as engineering
associations, associations for economic and statistical work, etc.).
The Legation should endeavor to discover men of exceptional
training, with a spirit of devotion to their work and an interest in
the welfare of China. Such men should have in all cases the
recommendation of the first authorities in their respective subject
or line of work. When the Legation has satisfied itself on these
points, it should notify the home Government of its selections, who
might then be employed as occasion demanded. The Government might
also have in Peking a number of trusted foreigners in high
positions, who might be informally consulted as to the character and
qualifications of men considered for expert service. In some
countries there are organizations such as, for instance, the
Carnegie Endowment for Peace at Washington, which have the means of
being helpful to the Chinese Government in making proper
selections.
