The report that the Russian retreat in the matter of
the Manchurian Treaty was due in great measure to Japanese remonstrances gathers strength, and with it the rumour that an alliance between the two countries is now probable. This project is favourably regarded by the Press in both countries, and would, financially, be convenient to both. Its basis, doubtless, would be that Russia should not be hampered in Manchuria, and that the Mikado should be regarded as overlord in Korea, at least up to the fortieth parallel. On the other hand, the Chinese reluctance to form a 'close alliance with Japan and to entrust the Army to Japanese officers is evidently decreasing, and that would suit the Japanese statesmen better than any transaction with Russia. The next few weeks will probably produce a decision, and may settle the fate of the Par East for a generation. We should say the probabilities were in favour of the second solution, the dangers of which to Eurcipean influence we have repeatedly pointed out.
