. The 'Daily Mail on Monday contained a striking article
from its correspondent, Mr. F. A. Mackenzie, on the future of Manchuria. The question which Chinese statesmen are asking themselves is whether or not Japan wishes to annex it. Almost before the ink was dry on the Treaty of Portsmouth, says the writer, a secret diplomatic battle had begun. Japan's policy is effective occupation. A few weeks ago service between the Japanese and Russian spheres of influence was begun, and already between five hundred and a thousand Japanese are settled in Kharbin, making a living where a European would starve. When the Russian military authorities give up their control, Japan must take it over unless anarchy is to be the result. Moreover, the Japanese are taking upon themselves the regulation and punishment of the Hung-hutzes, and in general performing all the tasks of government which China has neglected. Japanese are settled all along the main road, the railways are in Japanese hands, and most of the chief police duties. Statesmen in Peking are well aware what is taking place, and distrust Japan far more than any other Power. - They see Manchuria slipping from them, and they believe that Mongolia may follow, and that then their great Empire will be dissolved.
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