This attitude of Japan is undoubtedly correct. By it she proves to the powers that she has been fighting Russia on their behalf, and probably she believes that she will have their moral support in obtaining her end. But moral support may prove insufficient. Already the Chinese know that Russia is not the great invincible military power they believed her to be. They think that they are capable of doing what Japan has done, and the northern viceroys talk of fighting Japan in preference to having only a limited authority granted them in Manchuria. Their attitude must be taken into account when the conditions of peace are ripe for decision. The next point profitable to consider is the intention of Japan with reference to the immediate exploitation or development of those portions of China she is winning back from Russia. As already stated, Port Arthur is to be dismantled. No foreigners will in any circumstances be allowed to stay there until after the conclusion of the war. The same rule will apply to Dalny and Talienwan, for the whole of the Kuan-tung peninsula is required by Japan as a naval and military base. After the war, if it ends in favour of Japan, it is improbable than any European firm will desire to become established there, other places offering greater inducements. For sufficient reasons, which need not be set forth in detail, the Japanese will object to any Russians remaining longer on Manchurian territory in their military occupation. They will object also to persons of French, German, and Scandinavian nationality. Both French and German subjects in the Far East, and especially those in Manchuria, Siberia, and the quondam treaty port of Newchwang, have shown themselves sympathisers with Russia, if not actual partisans in the war. The Scandinavians, chiefly through the Danish East-Asiatic Company, are still more closely identified with Russians, and the Japanese even go so far as to say that the Danish and the Russian flags are for all practical purposes identical. Throughout the Far East Denmark is represented by the Russian Consuls; some of the Danish East-Asiatic Company’s steamers were owned in their entirety and absolutely by Russians, a fact the Japanese do not overlook, and will not forget. Manchuria therefore will be open first to persons of British and American nationality. If they are quick to establish themselves there, other nationals will be subject to the same adverse conditions as British subjects endured under Russian rule and occupation. Another point upon which Japan has decided is the future rule of Manchuria. Japan does not intend that the three provinces shall revert to the cruel despotism that obtained there under Chinese sovereignty. Japan has proved in Formosa that brigands, outlaws, and the savage natives the Chinese exploited, have become industrious law-abiding peasants under the just administration of equitable laws.