1. _War with China, 1894–95._—In this war Japan was forced to put forward the whole of her military strength. Each of the seven divisions which then existed were mobilized and despatched from Hiroshima to the theatre of war as operations developed. Half of the 5th Division was sent to Korea in the middle of June before war had actually been declared, followed in August, after hostilities had commenced, by the other half and the whole of the 3rd Division. These two divisions constituted the 1st Army, which defeated the Chinese forces at Pingyang in September, forced the passage of the Ya-lu in October, and moved on Mukden through South-East Manchuria. After a naval engagement at the mouth of the River Ya-lu, the 2nd Army, consisting of the 1st Division and half of the 6th, was, by September 30, concentrated at Hiroshima. This army landed north of Pi-tzu-wo, and fought its way into Port Arthur. Towards the end of 1894, three and a half divisions, of a total strength of 52,600 men, were in Southern Manchuria. In the beginning of 1895, the 2nd Division and the other half of the 6th Division were landed on the Shan-tung Peninsula; these troops composed the 3rd Army, numbering about 24,000 men. Thus, by the beginning of 1895, more than 75,000 men had been landed in China. Thirty vessels of a steamship company, subsidized by the Japanese Government, were chartered for the conveyance of these troops. On account of the roughness of the country in the theatre of war the land transport consisted mostly of carriers organized into corps, the majority of whom were recruited in Japan; the remainder were coolies collected in Korea and Manchuria. For the preliminary expenses of the war the Japanese Treasury allotted £4,500,000; later, an internal loan of £15,000,000 was raised. When the whole of the extraordinary expenditure was totalled, it was estimated that the war cost Japan about £20,000,000, of which £16,420,000 was chargeable to the War Department and £3,580,000 to the Navy Department.