The Hunghuses and outlaws of Manchuria are more likely than the Formosan natives to appreciate a liberal government, and laws administered with justice. All nations should support Japan in her endeavour to free the enslaved Manchurian peasant. The Chinese coolie is capable of being made into a law-abiding, sober, industrious, frugal labourer, and if the experiment succeeds in Manchuria it may lead to a reform in the government of the eighteen provinces of China Proper. Possibly the moral, social, and physical welfare of the people count for less than the correct division of the territorial spoils of war among the conquerors; but this issue is fraught with such gigantic potentialities, that it is to be hoped Japan will obtain her end, and be the means of freeing the Chinese peoples from the tyranny of a corrupt mandarin rule. The real opening up of Manchuria to foreign settlement and trade will effect more than centuries of missionary effort to the enlightenment of the people and the amelioration of their lot. This opportunity must on no account be missed, whatever the opinion of the Chinese Court may be on the subject. The spoils of war which will go to the victors will include government, freehold and leasehold estate; fortresses, dockyards, armaments and munitions of war. The Chinese Eastern Railway may be regarded as government property, and such rights as Russia legally possesses in it will pass to the Japanese. There will be a war indemnity, but in the Far East it is believed that whichever side wins, the war indemnity, whatever its amount, will have to be paid by China. Should the Japanese prove ultimate conquerors the war indemnity levied upon Russia will be collected of China on account of the territory returned to the dominion of the Chinese Emperor. Should Russia win, Japan will be unable to pay a heavy indemnity, and China will be required to reimburse Russia for the expense to which she will have been put in repelling the Japanese invasion of Chinese territory. China’s protests will be futile in either event. The material gain Japan expects to win by the war may be summarized as follows:-- (_a_) Saghalien and the sealing islands to become Japanese territory. (_b_) The port and harbour of Vladivostok to be occupied by Japan indefinitely. (_c_) Port Arthur to be dismantled and made over to China on conditions. (_d_) The rights of Russia in the Chinese Eastern Railway and in the territory leased from China by Russia. (_e_) The opening of Manchuria to Japanese trade and exploitation. (_f_) The opening of the Amur and its tributaries to international navigation. (_g_) A war indemnity of unknown amount, to be paid by China. These requirements are for the most part immaterial to European Powers. The supporters of Japanese policy may expect to share in the privileges Japan secures for her own people as traders in Manchuria, and in the right of way in Siberian waters.