In the meantime, however, difficulties had arisen between Russia and Japan, over the former country's refusal to evacuate certain parts of Manchuria, occupied as a result of the Boxer uprising in the suppression of which Japanese troops had participated successfully with those of the other great nations. Japan sent an ultimatum to Russia which did not receive prompt enough attention and war was declared in 1904. For the second time the world's attention was centered on Japan, and to the amazement of the western world the eastern empire defeated the Russian Colossus most severely and consistently both on land and on sea. The financial burden of the war, however, was a severe strain on the limited resources of the young world power and it was forced to accept mediation proffered by the United States at a time when not all its objects had been accomplished. Peace was concluded at Portsmouth in the United States. Japan was very moderate in the consideration of the terms as we have already seen during the review of the history of Russia. In 1907 both France and Russia signed agreements with Japan in regard to the independence and integrity of China and acknowledging the "open door" policy in commercial matters for all nations alike. In 1910 Korea was annexed, much against the desire of the natives who made Japan's task a difficult one by means of many uprisings and conspiracies. Internal affairs during the last ten years also have given cause for anxiety. The two great wars in rapid succession have put a heavy financial burden on the shoulders of the great masses and socialistic tendencies have found a fertile soil in Japan. Labor disturbances have sometimes assumed serious proportions and so have demonstrations against other nations who had aroused the animosity of the Japanese people by some acts. In general, however, the progress of the country continues. Japan's attitude in the Great European War was, of course, influenced chiefly by its alliance with Great Britain. Its general attitude toward Germany had always been a friendly one. For as Germany has played the successful schoolmaster along military and scientific lines for many nations, it has also done for Japan. The efficiency of the Japanese army is due chiefly to what Japanese officers have learned in German regiments and military schools. CHAPTER IX THE NEUTRAL STATES--PORTUGAL AND SPAIN