Australasia, even, might become the ultimate aim of Japanese Imperialism and commercialism. The climatic conditions of the northern parts are such that Europeans find it difficult to settle there, and in the limitless sugar and coffee plantations the employment of white labour has always been unsuccessful, in spite of every effort. The number of the white inhabitants is still very small, although the continent was first occupied over a hundred years ago. The original native tribes have slowly died out; but the new settlers, over this whole extent of enormous territory, do not number as many as the population of London. Sparsely peopled, she stands there isolated and unfortified, defenceless, so to speak, in the midst of the sea. The actual guarantee for her independence is offered by the circumstance that she forms part of the British Empire. This dominion is of course nominal; still, it is enough, at any rate at present, to protect the continent from foreign attack. But it is not hard to foresee what would happen to Australia, with the adjacent islands, Tasmania and New Zealand, should she be severed from Great Britain. Indeed, it is much to be feared that if ever the present alliance between England and Japan were to change into hostility, the former pupils and friends might be obliged to turn their arms against their instructors and allies. Now, however, a truce has been declared in Eastern Asia. The Peace of Portsmouth has been concluded, and the consequences of this recent event will undoubtedly be greater than the bloodiest battles of the past few months, although it occasioned less noise. I must acknowledge that I am somewhat astonished that the world which welcomed with such jubilation Japan's victories at sea, seems to fail to understand her greatness in the field of diplomacy. Yet nothing was harder than to find such a solution of the various antagonistic problems as should ensure a free path for progress in the future. After such glorious battles, after the unchecked progress of an army intoxicated with success, it must have been very hard to halt, and to utilize this interlude for future strengthening and eventual expansion. Nothing could really have hindered the march to Harbin or to the Baikal district. Even the occupation of Vladivostok was merely a question of time. But, as has already been stated, it was not to Japan's interest to press northwards, and still less to carry the day by sowing the seeds of a yet greater hatred, and exciting the conquered country to a policy of revenge. That, probably, was the reason why the Japanese gave up the war indemnity, and hope to refund it themselves from the agricultural wealth of the strip of land annexed, instead of from the Russian coffers. Japan did not desire either to increase the animosity of her enemy or to lose the sympathy of her allies. Above all, she abstained from rousing hostility and jealousy on too many sides before the definite attainment of her goal.