of the country. In my International Development Scheme, I intend to make all the national industries of China into a Great Trust owned by the Chinese people, and financed with international capital for mutual benefit. Thus once for all, commercial war will be done away with in the largest market of the world. Class war is a struggle between labor and capital. The war is at present raging at its full height in all the highly developed industrial countries. Labor feels sure of its final victory while capitalists are determined to resist to the bitter end. When will it end and what will be the decision no one dares to predict. China, however, owing to the backwardness of her industrial development, which is a blessing in disguise, in this respect, has not yet entered into the class war. Our laboring class, commonly known as coolies, are living from hand to mouth and will therefore only be too glad to welcome any capitalist who would even put up a sweat shop to exploit them. The capitalist is a rare specimen in China and is only beginning to make his appearance in the treaty ports. However, China must develop her industries by all means. Shall we follow the old path of western civilization? This old path resembles the sea route of Columbus' first trip to America. He set out from Europe by a southwesterly direction through the Canary Islands to San Salvador, in the Bahama Group. But nowadays navigators take a different direction to America and find that the destination can be reached by a distance many times shorter. The path of western civilization was an unknown one and those who went before groped in the dark as Columbus did on his first voyage to America. As a late comer, China can greatly profit in covering the space by following the direction already charted by western pioneers. Thus we can foresee that the final goal of the westward-ho in the Atlantic is not India but the New World. So is the case in the economic ocean. The goal of material civilization is not private profit but public profit. And the shortest route to it is not competition but coöperation. In my International Development Scheme, I propose that the profits of this industrial development should go first to pay the interest and principal of foreign capital invested in it; second to give high wages to labor; and third to improve or extend the machinery of production. Besides these provisions the rest of the profit I should go to the public in the form of reduced prices in all commodities and public services. Thus, all will enjoy, in the same degree, the fruits of modern civilization. This industrial development scheme which is roughly sketched in the above six programs is a part of my general plan for constructing a New China. In a nutshell, it is my idea to make capitalism create socialism in China so that these two economic forces of human evolution will work side by side in future civilization. APPENDIX I