ECONOMIC IMPERIALISM [Sidenote: Evil of “spheres of influence.” “Spheres” become “dependencies.”] The evils of an unrestricted competition for concessions and monopolies between rival financial groups backed by their Governments, are so notorious that diplomacy has found several typical formulæ for bringing them to an end. The obvious method of resolving such conflicts is the demarcation of spheres of “influences,” “interest” or “penetration” within which each of the competing Powers enjoys a monopoly respected by the others. This method is open to two grave objections. In the first place, it is rarely adopted before a ruinous conflict has exhausted the competitors. For years or decades they carry on a trial of strength which affects not merely their local relationship, but their attitude to one another in Europe, and is measured year by year in their military and naval estimates. If we were to take the sum by which British and German armaments have increased in the present century, it would be possible to allocate the increase, roughly, somewhat as follows: 50 per cent. or less for the settlement of the question, Who shall exploit Morocco?; 25 per cent. or more for the privilege of building a railway to Bagdad and beyond it; 25 per cent. or more for the future eventualities which remain unsettled—the fate of the Portuguese colonies in Africa, and the destinies of China. In the second place, the delimitation of spheres of interest is almost inevitably fatal to the national existence of the country partitioned, and as inevitably adds a vast burden to the commitments of the Imperial Power. Persia furnishes the obvious illustration. Sir Edward Grey is clearly resolved that he will not allow himself by the march of events to be drawn into the assumption of any direct responsibility for the administration of the British sphere. It is a laudable resolve, but Russia may at any moment frustrate it. She deals with her own sphere on the opposite principle, and her sphere happens to include the seat of the central government. That government is already a puppet of Russian policy, enjoying only a simulacrum of independence. How much longer can a government which is not a government continue to rule the southern sphere? Sooner or later a choice must be made. Either Russia must withdraw, or some separate government under British protection must be created for the south. Turkey is drifting rapidly towards a dissolution in which the spheres which the Great Powers already claim will be formally delimited. It is easy to predict what that will mean. There will be first provincial loans, then provincial advisers, and finally a military control, under which each of these “spheres” will become what Egypt already is, a dependency of a European Power. [Sidenote: How to avoid the evil. Must preserve peace without destroying victim nationality.]