Working of Parliamentary Government—Grouping of Parties—Government and Opposition—Formation of _Seiyūkai_—Increasing Intervention of Throne—Decrease of Party Rancour—Attitude of Upper House 197 CHAPTER XXI Treaty Revision—Great Britain takes Initiative—Difficulties with China 204 CHAPTER XXII China and Korea—War with China—Naval Reform—Defeat of China—Treaty of Shimonoséki—Peace Terms 214 CHAPTER XXIII Militarist Policy—Liaotung Peninsula—Intervention of Three Powers—Leases of Chinese Territory by Germany, Russia, Great Britain and France—Spheres of Interest 223 CHAPTER XXIV American Protest against Foreign Aggression in China—Principle of “Open Door and Equal Opportunity”—Financial Reform—Operation of Revised Treaties—The Boxer Outbreak—Russia and Manchuria 234 CHAPTER XXV Agreement between Great Britain and Germany—The Anglo-Japanese Alliance 245 CHAPTER XXVI War with Russia—Success of Japan—President Roosevelt’s Mediation—Treaty of Portsmouth—Peace Terms 254 CHAPTER XXVII Weakening of Cordiality with America—Causes of Friction—Expansion and Emigration—Annexation of Korea—New Treaties 265 CHAPTER XXVIII Rise of Japan and Germany Compared—Renewal of Anglo-Japanese Alliance—Japan and the Great War—Military and Naval Expansion—Japan and China—The Twenty-one Demands—Agreement with Russia regarding China—Lansing-Ishii Agreement—Effects of Great War on Situation in Far East 274 CHAPTER XXIX The Japanese Family System 283 CHAPTER XXX Education 292 CHAPTER XXXI The Makers of Modern Japan—How Japan is Governed 300 Index 307 LIST OF ILLUSTRATIONS PRINCE IWAKURA _Frontispiece_ PAGE ŌKUBO ICHIZŌ 72 KIDO JUNICHIRŌ 80 MARQUIS INOUYÉ 104 MARQUIS ŌKUMA 104 PRINCE ITŌ 176