THE SECOND REVOLUTION 23I
The revolutionaries' position, then, was not without potential strength
in the spring of
1913.
But the contest with Yuan was not entered into out
of overweening confidence in the result. Rather, it was forced by the
president. Having chosen not to retreat before the KMT electoral victory,
he went on the offensive.
Following the assassination of Sung (20 March) and the military invest-
ment of Hupei (beginning in early April), Yuan's next major move was the
conclusion of
a
large foreign loan. A consortium of foreign banks, guided
by their home governments (Great Britain, France, Germany and the
United States, soon joined by Japan and Russia), had been negotiating a
large loan to the Peking government since the conclusion of the 1911
Revolution. The declared purposes were, chiefly, to refinance delinquent
and imminently maturing payments on China's inherited debts, including
foreign damage claims arising out of the 1911 Revolution, and to cover
immediate governmental expenses. The consortium governments, led
by Great Britain, set as a condition the injection of more foreign personnel
into the Chinese government. Most dramatically, a foreign staff was for
the first time to enter and thereby 'reorganize' the administration of the
official salt monopoly, whose revenue was to guarantee the loan. Mean-
while, the consortium governments worked, largely successfully, to
prevent the Chinese from getting substantial loans outside the consortium.
The Peking authorities faced a most unpleasant facet of China's semi-
colonial condition: a solid front of
the
major capitalist nations, demanding
a larger role in the Chinese polity in exchange for expensive loans. Even
when Woodrow Wilson withdrew the United States from the consortium
in March 1913, the Americans respected the consortium-enforced boycott
of large lending to China until the consortium loan was concluded.
One need not have been a member of the KMT to see the dangers and
to belabour Peking over the loan issue. In early 1913 K'ang Yu-wei,
leader in the 1898 reform movement gnd veteran enemy of Sun Yat-sen,
likened the proposed agreement to offering poisoned food to a starving
man. K'ang argued that some way of avoiding the consortium's death-
dealing bounty could surely be found. And what would the next step be
after trading the salt administration for a £2 5,000,000 loan, which would
in fact provide the Chinese government with little more than £10,000,000
after deductions for past debts and the expenses of floating the loan?
Would not another government agency, or the land tax, have to be offered
up for the next infusion of foreign money, K'ang asked. 'Truly, China
would expire spontaneously, without foreign troops partitioning the
country.' And how curious, he wrote, to be borrowing money from
Russia and England at the very moment they are contending with Peking
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