There is no doubt that to carry on an energetic offensive is our best protection. But our power to do this does not depend upon the action of our War Department alone: it depends upon the relative national efficiencies. The more fully developed and efficient a nation is, the more numerous are its war resources of every sort. But the one factor which nowadays determines more than all else the nature and direction of operations is the railways. In this connection we have noted the large number of lines at the disposal of our neighbours in the west, and that is precisely the front upon which we are handicapped almost to actual impotence by our backwardness. There are so many other urgent calls for the expenditure of money that the construction of purely strategic and economically unremunerative lines seems wasteful and the cost prohibitive. For this reason our strategy on this side calls for the greatest care and thought in order that we may conduct as active a defence as possible. The next thing to do after admitting our present disadvantages is to realize that it is upon this frontier that the largest portion of the funds available for military purposes should be spent, while the remainder can be apportioned between all our other frontiers. It is clear that we were in no position to spend money on the Far East, and after the forward moves made in that direction from 1896–1900, it was realized that in that quarter the purely defensive was our best policy. The _communiqué_ of our Government of June 24, 1900, informed the whole world of our intention not to annex the territory we were then occupying in Manchuria, and gave us every reason to suppose that if we kept our engagements no trouble with China and Japan was likely. 13. Even in the concluding years of the last century Russia was not preparing for any further advance in the Far East, but was fully occupied with the defence of her western front and with the maintenance of internal order. Thus, our unexpected forward movement, first in Manchuria and then to the shores of the Pacific Ocean, found the War Department as surprised as it was unprepared. In such circumstances our promise not to annex Manchuria was a very necessary one, not only on account of our desire not to disturb our friendly relations with China, but because we were aware of our military unreadiness in that part of the world. In the report I submitted in 1900 regarding the duties of the Department in the early future, I said: