Conditions at Dalny since its foundation are minutely described by M. Suzuki, agent of the Japanese Foreign Office in the _Tsūshō Isan_ for April 23 (pp. 39–49), 28 (pp. 32–46), May 3 (pp. 37–49), 8 (pp. 42–55), 12 (pp. 36–42), and 18 (pp. 33–37), 1904. CHAPTER V SECRETARY HAY’S CIRCULAR NOTE It is unnecessary for us to describe how, between 1897 and 1899, other so-called spheres of influence and of economic concessions than those already mentioned were marked out in China by the Powers, for, important as they are in the general history of the modern East, they have little bearing upon our immediate subject. It suffices to recall that the process was begun by the German seizure of Kiao-chau; that unfortunately Great Britain felt obliged to have recourse to the policy of the balance of power; and that no other “sphere” had the grave significance and the evil forebodings of the Russian territory of the Kwan-tung in Manchuria. It was during this period that a Power whose position was so unique as to justify the act appealed to the other interested Powers, in September, 1899, to make declarations that they would observe the principle of the equal economic opportunity for all nations in their respective spheres of interest in China. The principle thus proposed by the United States was stated to imply (1) non-interference with the treaty rights and vested interests of each other; (2) the maintenance of the Chinese treaty tariff, except in “free ports,” under the Chinese management; and (3) no differential treatment in the harbor duties and railway charges, in the spheres. The phrase “leased territory” was used in connection with only the first of these three points, while the words “spheres of interest” were applied to all three, so that it was uncertain whether the second and third points were intended by Secretary Hay to cover the leases, as well as the spheres.[257] In reply to this proposition, Great Britain, which had stronger reason than the United States to indorse a policy which had originated with her and which she had long upheld in China at enormous cost, and Japan expressed their unequivocal adherence to the proposed principle. Germany, France, and Italy also assented, all except Italy, however, with the natural reservation that the desired declarations would be made if all other interested Powers acted likewise.[258] As regards the question whether the three points applied to the leases and spheres alike, it is interesting to note that Germany, France, and Great Britain replied, in effect, in the affirmative, Germany using the expression “its Chinese possessions,” and France employing the phrase “the territories which were leased to her.” The statement used by Great Britain was the most explicit and comprehensive, for she mentioned “the leased territory of Wei-hai-Wei and all territory in China which may hereafter be acquired