In conclusion, the main reason for our military inefficiency was the inadequate funds granted by the Treasury. Funds for the War Department were stinted— (_a_) Owing to the greatly increased expenditure on the fleet. (_b_) Owing to the large expenditure upon the projects of the Minister of Finance in the Far East, and owing to the underestimation of revenue. But in spite of this, I think it will be allowed that from 1898–1903, during which time it distributed its money according to a strictly defined plan, the War Department attained, on the whole, remarkable results in the strengthening of our military position in the Far East. The results in this direction of the ten years preceding the Russo-Japanese War can be gauged from the following figures. We had in the Pri-Amur district, Manchuria, and in Kuan-tung: In 1884 … … 12 battalions In 1894 … … 20 „ In 1903 … … 63 „ In 1904 … … 140 „ [Illustration: SKETCH MAP OF EASTERN ASIA, SHOWING POSITION OF THEATRE OF WAR WITH REFERENCE TO NEIGHBOURING TERRITORIES.] FOOTNOTES: [43] [As chief of the Headquarter Staff.—ED.] [44] [Russia is divided into thirteen military districts.—ED.] [45] Besides the allotments for artillery re-armament and house allowance. [46] 96 battalions, 57 squadrons, and 236 guns. [47] [Of the thirty-six East Siberian Rifle Regiments in the Far East when war broke out, all had two battalions except those of one brigade, which had three.—ED.] [48] [_Sic._—ED.] [49] The proposals as to Kronstadt were approved before I became War Minister. [50] Of this number, 8 East Siberian Rifle Divisions, 96 battalions; 1st, 2nd, and 3rd Siberian Reserve Divisions, 48 battalions; independent reserve battalions, 12; 2 brigades, 31st and 35th Divisions, 16 battalions—total, 172 battalions. All these troops were in April, 1904, in Siberia, in the Pri-Amur district, and in Manchuria. Of them, 27 battalions constituted the garrison of Port Arthur; 21 battalions the garrison of Vladivostok and the South Ussuri district; the 1st Siberian Division was kept in rear; while the independent reserve battalions guarded the railway. In April, 1904, of these 172 battalions, there were only 108 in the Manchurian army, distributed from the Ya-lu to Newchuang, and from Ta-shih-chiao along the railway to Omsk, as the 4th Siberian Corps was still on the way out. [51] [See p. 121.—ED.] [52] [In addition to the ordinary Quinquennial Budget.—ED.] [53] [M. Sergius de Witte.—ED.] [54] [Literally, “A man’s own shirt is nearest his own skin.”—ED.] CHAPTER VI The War Minister’s opinion on the Manchurian and Korean questions from the year 1900 to 1903—What he did to avoid a rupture with Japan.