defence against the "white peril," materialistic civilisation, and misrepresented Christianity. The only "yellow peril" that I have been able to diagnose is the peril to the trade of Europe and the United States of America with China--a peril that appears to me to be imminent. That Japan intends to capture a large, indeed the largest, proportion of that trade I am firmly convinced. That she will succeed in effecting her object I have not the slightest doubt. At the present moment only about 5 per cent. of the imports into China are from Japan, the remainder being either from India, Europe, or America. Situated in close contiguity to China, having assimilated everything of importance not only in regard to the employment but the manufacture of machinery from Europe and the United States, possessing an industrious and intelligent population, Japan is quite obviously in a magnificent position to supply China, and supply her on much better terms, with the greater number of those commodities which China now has to import either from Europe or America. Japan, as I have said, intends to lay herself out to capture the major portion of this trade; she is quite justified in doing so, and there is every reason to suppose that she will attain her object. That the Chinese students who have come to Japan and are flocking there month by month in increasing numbers, with a thirst for knowledge and a desire to assimilate all those Western influences and ideas and aids that have placed Japan in her present prominent position among the nations, when they, in due course, return to their own country, will of a certainty exercise a considerable influence therein, there can be no doubt. I also feel sure that Japan will render considerable assistance to China in regard to the remodelling and reorganisation of the Chinese Army and Navy. It is as certain as anything in this uncertain world that before very many years have elapsed the naval and military forces of China will undergo as great a transformation as those of Japan have undergone. I believe, and I may say that this belief is shared by a number of naval and military men who have had practical opportunities for forming an opinion in the matter, that the raw material existing in China for the making of an effective and efficient Army and Navy is as good as that in Japan. We know that the late General Gordon, who had excellent opportunities for arriving at a sound conclusion in the matter, expressed himself in glowing terms in regard to the capabilities of the Chinaman as a soldier were he properly trained, organised, and officered. But that China, any more than Japan, entertains ambitious military projects I utterly disbelieve. The only aspiration of China as regards Europe is--to be let alone. She fears, as she has every reason to fear, European aggression. She has had ample experience in the past that the flimsiest pretexts have been utilised for the purpose of filching her