Twentieth Century Chronicle

Page 170

Saionji's intention in writing this letter to Ito was to leverage Ito Hirobumi's wisdom to, on the one hand, bring the new generation of naval forces represented by Hayashi Nobuyoshi closer to the Imperial Family, and on the other hand, to foster dissenting voices within the Navy. Saionji knew these were things she couldn't do herself, so she could only pass the difficult task on to Ito Hirobumi.

Prime Minister Saionji viewed Hayashi Nobuyoshi as the next Saigo in the navy, and Yamagata Aritomo felt the same way. On the way back after the meeting, Terauchi Masatake, who was riding in the same carriage with him, expressed his concerns about the navy's movements. Yamagata Aritomo replied uneasily, "Hayashi Nobuyoshi is indeed more dangerous than Yamamoto Gonnohyōe and Ito Sukeyuki. Like Saigo, he has the power to unify the navy... Tanaka is not as good as him."

Terauchi Masatake agreed with Yamagata Aritomo's assessment. Although Tanaka Giichi was capable, he could only make plans. He lacked the mental strength to succeed, which was why he and Katsura Taro were not optimistic about Tanaka. This person lacked the qualities of a leader and could only serve as an advisor or assistant.

Of course, this kind of leadership quality isn't something just anyone possesses. Only those who truly dare to take responsibility and frequently make independent judgments can have that convincing spiritual strength. Therefore, during the anti-shogunate war, the anti-shogunate faction produced many outstanding figures, effectively suppressing the shogunate army, which possessed superior military and human resources. The shogunate army wasn't lacking in talent, but rather in leaders who dared to take responsibility.

As the Meiji Restoration government got on track, the military underwent rigorous ideological and institutional reforms. Consequently, generals with independent judgment became increasingly rare, while officers who blindly obeyed orders became the norm. Those who wanted to rebel against orders and the military system could only use loyalty to the emperor as a fig leaf. Loyalty to the emperor was not a matter of independent thought, but rather a contest of who was more obedient to the emperor's true will.

Even Terauchi Masatake sometimes had to yield to the interests of the army, the Choshu faction, and his own small group. After all, who among them, with such achievements, didn't have a large family to support? Ito Genro's house was practically a geisha house, while Matsukata Genro didn't even know how many children he had. Now was no longer the time for lone wolves to fight for tomorrow; preserving their current positions was the top priority.

After careful consideration of the younger generation in the army, Terauchi Masatake could only nod in agreement, saying, "There may be young people in the army who are not afraid of sacrifice, and there are also young people who are good at planning, but there is really no one who has both and can lead others. At his age of not yet thirty, he can serve in the navy for at least thirty years, which is indeed a big problem for the army."

Yamagata Aritomo remained silent for a long while before slowly saying, "What do you think about letting him enter the palace?"

Terauchi Masatake hesitated for a moment before saying, "Serve as His Majesty's attendant? His Majesty will probably assign him to the Crown Prince, right? Although this would allow him to temporarily leave the Navy, things might become even more complicated after the Crown Prince ascends the throne. It would be better if he could serve as a diplomatic attaché, which would prevent him from expanding his influence in the Navy and also prevent him from establishing relations with the Imperial Household Agency."

Yamagata Aritomo sighed and said, "If Yamamoto Gonbei didn't think highly of Hayashi Nobuyoshi, that might be possible. However, judging from today's meeting, Yamamoto and Ito must have reached some kind of agreement. For Hayashi Nobuyoshi, being a military attaché is tantamount to exile. Unless he requests it himself, it's impossible for such a transfer order to be issued. We can only wait and see..."

On May 9, the Imperial Household Agency responded to the meeting minutes submitted by Prime Minister Saionji. That evening, the Saionji Cabinet sent a long telegram to the Chinese legation in Beijing. The following morning, the Chinese Minister to China, Hayashi Gonsuke, submitted a notice of troop withdrawal to the Chinese government.

However, Hayashi Gonsuke also told Foreign Minister Tang Shaoyi that Japan's withdrawal of troops was not out of fear of war with China, but rather because it could not bear to see East Asia fall into war again, thereby damaging the friendly relations between Japan and China. Therefore, Japan would not give up the interests it should have gained in the war, and Japan also had the ability to protect these interests.

Yuan Shikai did not take Hayashi Gonsuke's threatening words to heart. The fact that the Japanese army was willing to withdraw was the best news for him at the moment, which meant that he no longer had to worry about being attacked from both sides by the Japanese army and Wuhan.

Of course, Yuan Shikai also said to Tang Shaoyi: "The Japanese have lost so many lives in the Northeast, it is unrealistic to expect them to go back empty-handed. Although Japan and China are not the friendly neighbors that the Japanese claim to be, peaceful coexistence is better than having a vicious neighbor who wants to attack us all the time. Territorial sovereignty is non-negotiable, but concessions in other areas are acceptable."

Although the Japanese army left reluctantly and left behind many disputes over the interests of Northeast China, for all levels of Chinese society, the withdrawal of the Japanese army meant that the war was finally over. It meant that for the first time since the Opium War, China had regained the interests that had been forcibly occupied by the great powers. This was truly unprecedented, and for a time, no one cared about the demise of the Qing Dynasty anymore.

Spurred by news of peace, the National Assembly finally passed a resolution on the composition of the new nation: 22 provinces, 2 prefectures, 5 special administrative regions, 4 localities, and 3 districts. The status of Outer Heilongjiang, the coastal region, the Ryukyu Islands, and the South China Sea islands was to be determined. The two prefectures refer to Beijing and Wuhan, and the five special administrative regions are Sichuan-Bian, Rehe, Suiyuan, Chahar, and Shannan.

Regarding the naming of the country, the Republic of China, proposed by the Tongmenghui (Revolutionary Alliance) led by Sun Yat-sen, won the support of the majority. Firstly, Sun Yat-sen first used the term "Republic of China" in a speech in the United States, thus the revolutionaries had developed a radiating instinct to overthrow the Qing Dynasty and establish a Republic of China. Secondly, Zhang Taiyan from Wuhan published an article entitled "An Explanation of the Republic of China," which proved from historical documents that this name best represented China. Thirdly, Yuan Shikai was unwilling to accept the People's Republic proposed by Wuhan as the new national name because he considered Wuhan to be the primary adversary of the Beiyang government.

After internal discussions, the Workers' Party ultimately compromised on the name of the nation in order to expedite the process of establishing a new country and facilitate discussions on the direction of national development. On this issue, Wuhan and the Tongmenghui (Revolutionary Alliance) in Guangdong, led by Sun Yat-sen, reached an agreement: heavy industry and railway construction should be prioritized.

Although the Tongmenghui was nominally an organization, it had actually fragmented after the fall of the Qing Dynasty, returning to a state of independent struggle. Apart from the Tongmenghui members in Jiangsu, Zhejiang, Shanghai, and Guangdong, which still maintained some cohesion, the members in other provinces couldn't even unite within their own provinces. After the collapse of the Qing Dynasty, the Tongmenghui lost its common goal; everyone was now vying for a position in the new government, and naturally, no one wanted to be represented by anyone else, only by others.

Therefore, after the establishment of the Republic of China, the representatives of the Tongmenghui from various provinces had differing opinions on how to develop the country. Many even favored the Beiyang government's approach of maintaining the old system and encouraging industry and commerce, but without government intervention in business operations. Representatives from the Jiangsu and Zhejiang regions, on the other hand, advocated for a peaceful transformation of agriculture, prioritizing the development of the textile and grain processing industries.

Only figures like Sun Yat-sen in Guangdong, having witnessed the rapid pace of industrial development in the United States, proposed a railway-first industrial development strategy. However, their understanding of American industrial development was superficial; they hadn't conducted in-depth research. Therefore, they only knew that developing the steel industry and railway construction was important, but didn't know how to implement it effectively.

In this regard, Wuhan truly possesses construction experience and has genuinely proposed a concrete industrialization path prioritizing heavy chemical industries. This includes establishing four national-level industrial centers to ensure national defense security and maintain the nation's technological leadership in industry; and setting up a number of local industrial centers to drive local economic development. The plan also involves constructing railway trunk lines to connect these industrial centers with resource-producing areas, markets, and ports.

Of the four national-level industrial centers, Wuhan advocates for the locations of Harbin, Shenyang-Liaoyang, Beijing-Tianjin, and Wuhan. The railway trunk lines are planned as follows: three horizontal lines: Dalian-Harbin-Hailanpao; Tianjin-Beijing-Zhangjiakou-Kulun-Lake Baikal; Lianyungang-Luoyang-Xi'an-Lanzhou-Urumqi-Tacheng; and four vertical lines: Vladivostok-Harbin-Kulun-Urumqi-Yili; Hunchun-Jilin-Changchun-Chifeng-Zhangjiakou-Datong-Xi'an-Hanzhong-Chengdu-Guiyang-Kunming; Dandong-Shenyang-Tianjin-Beijing-Zhengzhou-Wuhan-Changsha-Guangzhou; and Tianjin-Jinan-Nanjing-Shanghai-Hangzhou-Jinhua-Nanchang.

The three horizontal and four vertical railway trunk lines have already covered most of China's inland areas, except for Qinghai, Tibet, and Shannan. However, this is already a rather large-scale construction plan. The railway lines built by the Qing Dynasty and the Russians could at most only meet one horizontal and one vertical requirement. Nevertheless, this is still more reasonable than Sun Yat-sen's national railway network plan, which connected all major and medium-sized cities in the country with railways in a fair and just manner.

Ultimately, Wuhan's proposed industrial priority development plan was approved. However, relying solely on domestic capital was insufficient to sustain such a massive industrial and infrastructure development effort. Therefore, Wuhan introduced three plans to raise construction funds: the first was to reduce the military and conduct budget and final account audits on military spending; the second was to promote land and tax reforms; and the third was to establish a national industrial investment fund and issue construction bonds both domestically and internationally.

Except for the second point, which was opposed by the majority, the first and third points received majority support. Yuan Shikai had mixed feelings about the military downsizing. Although he didn't expect to be able to command the troops in Wuhan, at least the reorganization of the army meant that all regular troops were nominally under the control of the state, allowing him to at least interfere in the personnel matters of troops in other regions. Moreover, Wuhan's finances were much better than Beiyang's; if the army were to expand arbitrarily, Beiyang would certainly be no match for Wuhan. Wuhan's willingness to reduce its army greatly relieved his pressure. However, his concern was that this would prevent him from expanding the army to enhance Beiyang's strength.

However, after careful consideration, Yuan Shikai decided to reach a compromise with Wuhan. He would accept Wuhan's proposal to reduce its army to the same size as the Beiyang Army. This was exactly what Wuhan wanted. Unlike Yuan Shikai's emphasis on regular troops, Wuhan actually focused more on training the militia. The reactionary behavior shown by the professional officers had led the Workers' Party to believe that only the militia was the most reliable force for the proletariat. If it weren't for the fact that many technical units needed professional troops to maintain their combat effectiveness, the Workers' Party had once attempted to maintain only a small number of professional officers and logistics departments in peacetime, and only expand the army in wartime.

Yuan Shikai's desire to reduce the number of troops in Wuhan was not necessarily a bad thing for the Workers' Party. Many troops could be converted into construction corps on the spot, building and defending their homeland on the frontier. So the two sides quickly reached an agreement: the Beiyang Army and Wuhan would each retain six divisions, and other areas would retain seven divisions, for a total of 19 divisions, nearly half the number of the Qing Dynasty's 36 divisions plan.

As a result, the military expenditures of the army and navy were reduced to less than 7000 million yuan, which is less than 12% of the national fiscal revenue. The news of China's military downsizing further provoked the Japanese people. Many people believed that Japan, with only one-tenth of China's population, had an army with almost the same strength as China, which was really a case of militarism.

Chapter 586

Toyota Teijiro grabbed a passing worker and asked, "Where is Lieutenant Colonel Hayashi Shinji?"

The worker pointed to a bamboo shed behind him and said, "Oh, the lieutenant colonel is over there talking to the painting crew."

Toyota let go and turned to walk towards the shed. When he got close to the shed, he saw Lin Xinyi, who was wearing work clothes that were no different from the others, helping the workers and chatting with them.

He couldn't help but sigh inwardly. This method of investigation was far different from what he had imagined, and it seemed rather improper. However, he dared not oppose Lin Xinyi's decision. Moreover, Lin Xinyi did not simply mingle with the workers; he also had contact with the factory's management and business partners. It was just that he spent more time with the workers and immersed himself in their work.

According to Toyota's own thinking, Hayashi Hsin-yi's actions were actually self-inflicted trouble, because decisions are made from above, not below. No matter how much he talked to these lower-level workers or how close his relationships became, it seemed to offer no benefit to Hayashi's career. If he were in Hayashi's position, he would have simply socialized with President Matsukata and his ilk, enjoying the company while building personal relationships with these high-society figures—that would have been a wiser move for his future.

Stop and listen to the conversation inside the workers' shed. It's really just casual chatter about everyday life. As I've gotten closer to the workers, their conversations are no longer limited to factory matters. They've also touched on the workers' family lives, such as where they like to have a drink after get off work, or whose son is doing well in school, and they're asking Lieutenant Colonel Lin about the possibility of getting into the naval academy.

Lin Xinyi was not impatient with such questions. Instead, he would inquire in detail about the children's studies and provide information on schools that were affiliated with the naval academy, telling the workers that their chances of getting into the naval academy would be higher if they were admitted to these schools.

Toyota seized an opportunity to interrupt the conversation in the work shed and greeted Lin Xinyi. Lin Xinyi told him to wait a moment, finished his work, and then wiped the sweat from his brow with the towel around his neck. He walked to the tea table in the corner of the work shed, drank some water, and asked Toyota why he had come to see him.

Toyoda Teijiro quickly handed over the telegram, saying, "It's from Tokyo. The Oriental Culture and Arts Foundation will officially hold its founding ceremony the day after tomorrow. Vice Minister Togo wants you to go back and attend the ceremony."

After glancing at the telegram, Lin Xinyi suddenly realized that it had been almost three weeks since he left Tokyo. After the meeting of elder statesmen and ministers, he took Mu Zi to Atami for three days of relaxation, and then set off for Osaka and Kobe to begin factory research.

In both China and India, Lin Xinyi conducted social surveys. Without in-depth investigation into the actual operation of society, it is impossible to carry out reform work. The so-called revolution is essentially a practice of reforming social relations.

Generally speaking, the more backward an agricultural society is, the easier it is to transform it. This is because interpersonal relationships in agricultural societies are quite simple, and the oppressors and the oppressed are very clear. In order to permanently oppress the lower class, the oppressors even use social class to define the status of each class. Therefore, as long as the class system is overthrown, the entire society can be revitalized.

The more modern a society is, the more difficult revolution becomes. This is not because the oppressors are too powerful, but because they employ a series of political means to transform direct oppression into invisible oppression through systems, consumption levels, and ideologies. If the oppressed do not have a certain level of political common sense, they may not even be able to figure out who is oppressing them. They can only feel that the whole society is full of malice towards them.

Japan's situation is in a transitional phase between backwardness and advancement. We can see both direct oppression of one person by another and the propertied class using money as a moat to prevent the proletariat from interfering with their lives.

For example, the public expects political parties to speak for them, reduce taxes, increase income, and relax control over thought. However, the Democratic Party has essentially separated itself from ordinary people by its tax standards. They do not actually represent the interests of the people; they are merely using the name of the people to fight for power with those in power.

Therefore, when Saionji Kinmochi came to power, although it was a government formed by the Democratic Party and bureaucrats, and it could be said that the Democratic Party had its first opportunity to govern, the Democratic Party did not propose any solutions to issues that the people cared about, such as tax cuts and increased revenue. Instead, it focused its energy on replacing the prefectural governor and promoting the nationalization of private railways. The former was to repay the support of local prominent families for the Democratic Party, and the latter was to repay the financial assistance of the zaibatsu for the Democratic Party.

Ito Hirobumi supported the Democratic Party in an attempt to expand the legitimacy of the government's rule. This approach was not suitable for the social reforms that Hayashi Shinji wanted, because both bureaucrats and the Democratic Party belonged to the ruling class. It was only because the latter had lost in the internal struggles of the Meiji Restoration Government that they had to become out of power. Their interests were not fundamentally different from those of the bureaucrats. Therefore, what the Democratic Party wanted was not large-scale social reforms, but rather to ensure its place in the government.

As Lin Xinyi was reading the telegram, Toyoda Teijiro couldn't help but advise, "Section Chief, you should go back quickly. We can handle the research. If you're not in Tokyo, the Minister-General and Vice Minister won't see you, and the relationship will become strained. Besides, you can't really talk to these workers. They only care about whether their wages have increased and the price of rice in the market is high. How can they discuss national affairs?"

Lin Xinyi put down the telegram, looked at him with a smile, and asked, "Oh, so what exactly constitutes a matter of national importance?"

After regaining his spirits, Toyoda Teijiro said, "What the country's international standing is, and how its interests overseas are protected—these are the things that truly matter to the nation."

Lin Xinyi shook his head and disagreed, saying, "I don't see it that way. I think maintaining the existence of the country is the most important thing. If the country doesn't exist, what important things are there? And for a country to survive, it must first ensure the survival of its citizens and make their lives better and better. A country that only makes its officials live well cannot survive. Isn't that how the shogunate collapsed?"

Just as Toyoda Teijiro was pondering Hayashi Nobuyoshi's words, Hayashi Nobuyoshi turned around and looked at the workers in the shed and continued, "Japan is still too backward. Many jobs are done by manpower rather than machines, which is actually no different from the work of farmers in the countryside."

One works in the fields, the other in a factory, with the latter's work intensity and hours far exceeding the former's, yet the latter's earnings are not much higher than those of a tenant farmer. Can the navy expect such small workshops to compete with the machine industry of Europe and America? We need large-scale industry, which requires more workers; without understanding the workers' work and their thoughts, Japanese industry cannot develop.

Lin Xinyi said this simply out of his own feelings, not to persuade Toyoda Teijiro. Because Japan at that time was indeed a dwarf wearing heavy armor. In 1908, there were only 700,000 to 800,000 workers in Japan's modern industrial sector. Of these, 60% were in the light textile industry, and the majority of the remaining workers were in the mining sector. In other words, there were not many real industrial workers.

Judging from the size of Japan's military, its industry was actually unable to support the current size of its army and navy. The fact that much ammunition and large-caliber artillery had to be imported during the war proves this point. The army's high command was well aware of this situation, which is why they appeared outwardly tough but inwardly weak in negotiations with China and Russia. When Russia and China showed a willingness to continue the war, Japan immediately backed down.

This is the biggest weakness of resource-poor island nations against continental countries with their superior population and territory. Continental countries can use their vast hinterlands to wage a protracted war of all-out confrontation, while island nations can win short-term decisive battles with their superior armies and advanced equipment. However, protracted wars are a contest of resources and population size, which is an inherent disadvantage for island nations.

In the Hundred Years' War, the British won almost every key battle, but were ultimately forced to withdraw from the continent. Similarly, despite strong French support, the independence of the thirteen North American colonies ultimately forced the British to abandon the war against their refusal to submit. Furthermore, Canada, which leaned towards Britain, was far beyond the reach of the newly independent thirteen colonies.

Only after Britain completely conquered the Indian subcontinent could it afford to wage wars of attrition around the world. The British victory in the Boer War was not due to the British army's fighting spirit being stronger than that of the American Revolutionary War, but rather because the Indians made sacrifices in place of the British. Therefore, the Earl of Witte refused to cede territory and pay reparations to Japan, and the Japanese dared not declare their intention to continue the war. The Japanese high command understood that continuing the war would only lead to Japan's collapse.

However, Russia does not dare to be too tough when facing China, because China, like Russia, has the ability to wage a protracted war. If the two sides were to engage in a war of attrition, China would not be in a worse position than it is now, while Russia might become a third-rate country.

In the past, the great powers were able to bully China because the Qing Dynasty quickly surrendered in foreign wars. To maintain its rule over China, the Qing Dynasty was even less willing than the great powers to wage a war of attrition, exhausting its forces to suppress the Han people, which led to its inevitable collapse. However, now a new nation with the Han people as its main ethnic group has begun to take shape. Foreign wars will only strengthen the cohesion of this new nation. Russia suffered losses first, and Japan naturally cannot afford to repeat that mistake.

Terauchi Masatake understood this, which is why he advocated withdrawing troops from Manchuria to secure the Korean Peninsula, a territory already in their grasp, before considering anything else. The suddenly deceased Kodama Gentaro also saw this point. He believed that Han-ruled China would never allow Japan to re-enter Manchuria, and therefore insisted on forcing the other side to cede Manchurian interests before Han-ruled China had become strong enough to discuss peace.

The reason why the Navy's plan to strengthen the heavy industry base was able to gain the support of most people was because Wuhan's rapid industrial development had indeed put considerable pressure on the Japanese ruling class.

When Zhang Zhidong established the Hanyang Ironworks, the Japanese upper echelons were already quite worried. After all, China was rich in coal and iron resources, and if it fully developed its steel industry, China would be able to produce its own ironclad warships within a few years. Now, Wuhan, under the control of the Workers' Party, was much more aggressive in its industrial development than during Zhang Zhidong's time. Building on the foundation laid by Zhang Zhidong and with the support of the Germans, in just a few years, Wuhan was no longer just a facade for the Hanyang Ironworks and Hanyang Arsenal, but had truly established an industrial framework centered on heavy industry.

Like Japan, preparations for war against Russia greatly boosted the scale of Japan's modern industry. Similarly, Wuhan's military-industrial development spurred investment in modern industrial sectors. By 1908, Wuhan's industry was only slightly behind Japan's. Japan held an advantage in textiles and shipbuilding, but there was little difference between the two in machinery. Wuhan's electricity and communications industries developed faster, and Wuhan held an absolute advantage in the automobile industry, as Japan had not yet established this industrial sector.

However, in education, Japan was 20 years ahead of China. Due to the Qing Dynasty's resistance to modern education systems, China didn't truly begin establishing one until after the Boxer Rebellion, with each phase lasting ten years. This means Japan was two generations ahead. Of course, China's large population meant that once it started implementing a modern education system, its advantage would only grow stronger over time.

Today's elite in Japan still include some elderly people who experienced the late Edo period and the Meiji Restoration. They are much more knowledgeable than the ordinary citizens who have been brainwashed by the divine education. They know that Japan's rise was due to the Meiji Restoration, not the special nature of the imperial state with its unbroken imperial line. Once China also embarks on the path of reform and self-strengthening, China's appearance will soon change. In fact, the Wuhan area has already become very different from other parts of China.

Without the pressure of positive changes in China, how could these Japanese elites have so easily given up their enormous interests to support the navy's industrial development plans? It's just that Lin Xinyi's desired path to industrialization differed from that envisioned by these Japanese elites, which is why he needed to understand the true state of Japanese society.

To be honest, this investigation was much worse than he had expected. He had originally thought that Japan's modern industrial sector should possess some advanced features and not be as conservative and stubborn as small-scale artisans, but based on the current investigation, Japan doesn't really have any modern industry. These factories that can manufacture machines, warships, and cannons are essentially just collections of small workshops, rather than production sectors truly organized in a modern factory model.

In reality, all workshops consisted of one or a few master craftsmen leading a group of apprentices. This master-apprentice relationship replaced the factory's internal management system. The master's word carried weight over the factory's requirements, and the factory couldn't even interfere when a master dismissed an apprentice. Therefore, the most pressing desire of ordinary workers was to complete their apprenticeship rather than to resist the exploitation of the employers.

Japan's military-first industrial model led to the rapid expansion of its machinery industry, directly resulting in a shortage of skilled workers. Therefore, for employers, the turnover rate of skilled workers is currently the biggest problem. This supply-demand imbalance means that every apprentice who completes their training can quickly be hired as a master craftsman. Instead of working for a single factory, it's more efficient to start a small workshop or contract a factory's workshop, training a group of apprentices, and quickly join the ranks of the new middle class.

Therefore, the master craftsmen among these workers actually opposed any reforms. On the contrary, both the factories and the apprentices hoped to change the current production organization. State-owned factories built technical schools and seniority-based systems to cultivate and retain skilled workers, while the apprentices hoped to shorten their apprenticeship period and become independent workers as soon as possible.

Hayashi Shin-yi's belief that Japanese society was backward was indeed a genuine feeling. Toyoda Teijiro, however, immediately changed his stance and echoed Hayashi Shin-yi, saying, "The lieutenant colonel is right. If we want to build a world-class navy, we really need to thoroughly transform our country's industry. I will definitely convey your words to others."

Lin Xinyi snapped out of his reverie, glanced at Toyota, and patted him on the shoulder encouragingly, "Toyota, let's work together. Book me the overnight bus to Tokyo for tomorrow night. Today and tomorrow, let's summarize our three weeks of research and see if we can develop a standard procedure so that our subsequent research can be more efficient..."

Although Toyoda Teijiro didn't quite understand what standard procedures meant, he readily agreed. This time, he wasn't the only one accompanying Hayashi Shin-yi on his factory research trip to Osaka and Kobe; in fact, it wasn't just the General Staff. Hayashi Shin-yi had also recruited some social activists in Osaka to assist with the investigation.

That evening, thirty or forty people appeared at Lin Xinyi's residence in Kobe and gave brief reports on their respective investigations. The meeting continued until the afternoon of the following day. At Toyota's urging, Lin Xinyi gave a brief outline of precautions for the investigation work, which was approved by everyone and designated as the working guidelines for each investigation team. Only then did he end the meeting and hurriedly leave Kobe.

At Kobe Station, Lin Xinyi was about to board the train when he was stopped by the ticket inspector. The inspector told him that his seat was in the first-class carriage and invited him to follow him. Lin Xinyi followed without making a sound. After seeing the people in the first-class carriage, he lowered his guard and greeted them, "President Matsukata, are you also going to Tokyo?"

Kawasaki Shipyard President Kojiro Matsukata rose to return the greeting and introduced the man to those around him: "This is Mr. Goro Inoue, Managing Director of Hokkaido Coal Mine Railway. He heard you were returning to Tokyo today and wanted to keep you company. As for me, I won't be going this time. Let's meet again next time you come to Osaka..."

Chapter 587

Matsukata Kojiro didn't get off the train immediately, but stayed with the two for one stop, helping them to get closer before finally disembarking. During this time, Inoue Kakugoro carefully observed the young naval lieutenant commander.

The Hokkaido Coal Railway was established in 1889, primarily to transport high-quality coal from Hokkaido to ports. In 1871, the new government overthrew the Republic of Ezo (Hokkaido), and to prevent Hokkaido from becoming a base for opposition, the new government devised a plan to develop Hokkaido—the Ten-Year Development Plan.

However, at the time the Republic of Ezo was established, the entire Hokkaido region had a population of only 5. This refers to the population under Japanese rule; the Ezo people who hid in remote mountainous areas were not included in the population statistics. With such a small population, developing Hokkaido was simply a pipe dream. Moreover, Hokkaido's climate is actually very similar to that of Siberia, with frequent heavy snowfalls and almost six months of winter, so few people were willing to go to Hokkaido to pioneer new lands.

The Republic of Ezo fled to Hokkaido because remnants of the shogunate refused to pledge allegiance to the new government; no normal person would willingly come to Hokkaido to pioneer development. Therefore, the population the new government used to develop Hokkaido consisted mainly of domestic criminals and laborers tricked from Korea and Taiwan. These slave laborers were clearly incapable of revitalizing Hokkaido. As a result, the ten-year development plan, aside from constructing some transportation arteries, left almost no profitable projects. Ultimately, Kuroda Kiyotaka had no choice but to sell off government-run businesses at low prices to merchants to get rid of this burden.

Kiyotaka Kuroda was disgraced because of this deal, and the Kansai Trading Company, which bought the state-owned businesses in Hokkaido, did not actually gain any profit. This was because Kuroda's main plan for developing Hokkaido was mining and land reclamation, but Japan's heavy industry did not start until after 1901, and the demand for coal was not large. Although the coal in Hokkaido was of good quality, the mining cost was much higher than that of Kyushu coal mines. Who would choose to use expensive coal when they had cheap coal?

If Hokkaido cannot develop, the Hokkaido Coal Railway will naturally not be profitable. Therefore, the Hokkaido Coal Railway naturally strongly supports the nationalization of private railways. The Kansai Trading Company acquired the Hokkaido government-run business at a near-free price. If they can sell the railway to the state at market price, they will naturally make a fortune.

The Kansai Trade Association is not worried about anyone blocking the nationalization plan for private railways. The Mitsubishi Group, which opposes the plan, is weak and cannot resist the alliance of political bigwigs behind the All Japan Private Railways. After all, the plan has already received the support of veterans such as Matsukata Masayoshi, Ito Hirobumi, and Inoue Kaoru. At most, the military will only get a share of the profits, but will not destroy everyone's livelihood.

However, something unexpected happened: the Navy resolutely destroyed everyone's livelihood, and veterans such as Matsukata Masayoshi, Ito Hirobumi, and Inoue Kaoru actually acquiesced to the Navy's actions. This meant that the nationalization plan for private railways would be difficult to continue in the short term, which was a terrible blow to the shareholders of Hokkaido Coal Railway.

Unlike other merchants who could complain about the navy's actions, the Kansai Trading Company couldn't attack them. This was because the Kansai Trading Company was the Satsuma Clique's financial backbone, and antagonizing the navy would only lead to greater losses. However, what shocked the Kansai Trading Company most was that the navy hadn't informed them of anything, which was essentially a form of alienation.

Although the Kansai Trading Company had aligned itself more closely with the Satsuma bureaucratic system represented by Matsukata Masayoshi since Godai Tomoatsu's death, this did not mean they neglected communication with the navy; it simply meant that contact between the two sides was not as frequent as during Godai Tomoatsu's time. Of course, this was also related to the formalization of the national system after the promulgation of the Meiji Constitution and the establishment of parliament. The military's influence on national economic issues weakened, so people naturally didn't revolve around the military as much.

Therefore, the army always wanted to pursue a continental policy because in places like Korea, which are not Japanese territory, the army could expand its power without worrying about being constrained by the government and political parties. The navy was far inferior to the army in this regard. Even though the fifth naval district was established in Southeast Asia, the navy rarely interfered in the local area and almost entrusted the management of the local area to overseas Chinese in Southeast Asia.

The reason why the army and navy behave so differently is that the army has a large number of personnel and does not mind exercising military control over local areas, while the navy is reluctant to send its elites to land. If those incompetent people are sent ashore, it will not only create conflicts with the local natives, but also fail to achieve the navy's goal of developing Southeast Asia. In the end, the navy adopted the practice in line with Southeast Asia and relied on overseas Chinese to deal with these natives.

Furthermore, Mindanao, which Japan occupied in Southeast Asia, was a Muslim rebellion zone that even the Spanish had failed to conquer for centuries. The Americans also felt that losing Mindanao would reduce their burden, which is why they easily handed the island over to Japan. Japanese merchants, of course, were not interested in taking risks in places with vastly different languages ​​and customs. In comparison, the conditions in Korea were far superior, so the merchants naturally preferred to be close to the army rather than the navy. Only the shipbuilding factory owners needed to closely follow the navy.

Therefore, when the Navy's plan to strengthen its heavy industry base was revealed, Mitsubishi and Kawasaki were the first to respond to the Navy and actively invited the Navy to conduct investigations at their shipyards, hoping to gain the Navy's support for their upcoming heavy industry development plans.

As for other businessmen involved in private railways, they once tried to turn the tide, but as the army withdrew from the mainland and the war officially ended, the army also supported prioritizing the development of heavy industry to strengthen the country's industrial base. Only then did everyone realize that the situation was already difficult to reverse.

Since they couldn't stop it, they had to join in, or they would be left behind—this was the common mindset of businessmen in that era. Thus, businessmen like Inoue Kakugoro were eager to get a share of the profits from new heavy industry projects.

While Inoue Kakugoro was observing Hayashi Shin-ichi, Hayashi Shin-ichi also learned about Inoue's background from Matsukata Kojiro. Inoue Kakugoro, a graduate of Keio University, was a prized student of Fukuzawa and once participated in the Enlightenment Faction's plot to seize power in Korea. However, with the failure of the Enlightenment Faction, he turned to industry and, along with Ozaki Saburo, Amemiya Keijiro, and others, was an important figure in advocating the nationalization of railways.

However, before getting off the train, Matsukata Kojiro secretly told Hayashi Shin-yi that Inoue could be considered one of the Satsuma clique's own people, and this time he was representing the Kansai merchants who had always supported the Satsuma clique to seek communication with the navy.

After Matsukata Kojiro disembarked, Inoue Kakugoro naturally shifted the conversation from the scenery of Hokkaido to its coal and iron resources. His goal was clear: he hoped the Navy would establish its heavy industry base at Muroran Port, thus utilizing the coal from Yubari and the iron ore from Muroran. Inoue also stated, "...Muroran's iron ore is of very high quality; if it could be processed into steel, it would fully meet the Navy's needs. Muroran's proximity to the coal and iron producing areas would also result in very low steel production costs..."

Listening to Inoue Kakugoro's development plan for Muroran, Lin Xinyi had to admit that the Japanese of this era did indeed want to do something. Although they wanted to get rich and enjoy themselves, they still thought about expanding production and pursuing greater undertakings after they had money, rather than being satisfied with just keeping their money at home and being rich.

This fervent pursuit of capital accumulation is indeed more like that of capitalists than traditional landlords. In contrast, the landlord class on the mainland at this time was clearly conservative and reactionary. Not only were they unwilling to move forward themselves, but they also desperately tried to hinder the progress of others, as if they could enjoy their wealth forever as long as the whole society remained unchanged.

Japan's rapid rise and its subsequent defeat of its former colonial power, the Russian Empire, often referred to as the "gendarme of Europe," was largely due to figures like Inoue Kakugoro, who were the pillars of the Meiji Restoration era. In contrast, even the most capitalistly minded Sheng Xuanhuai, upon acquiring wealth, prioritized purchasing land in his hometown to secure his future.

Faced with Inoue's persuasion, Lin Xinyi thought it over and over again before tactfully saying, "Mr. Inoue, your views are indeed very insightful, but shouldn't such a proposal be more appropriate for Elder Matsukata? I am just a lowly lieutenant colonel. Are you asking me for advice on such a construction plan?"

After a moment of contemplation, Inoue Kakugoro said frankly, "It seems that Lieutenant Commander Hayashi still doesn't trust me. However, it is thanks to Elder Matsukata's guidance that I am able to sit here and have this conversation with you. Elder Matsukata believes that although there are a few people in the Navy who can make decisions, only Lieutenant Commander Hayashi truly has foresight, and the future of the Navy will inevitably be in your hands."

"We're establishing contact with you now so that we can maintain friendly relations in the future. Furthermore, the Navy's plan to strengthen its heavy industry base requires manpower, technology, and funding. While we can't compare to conglomerates like Mitsui, Mitsubishi, Yasuda, and Sumitomo, we still constitute a considerable force. Are you really unwilling to befriend us?"

Lin Xinyi glanced at Inoue Kakugoro's face and noticed that the other man wasn't avoiding his gaze, but rather calmly meeting his eyes. After a moment's thought, he smiled and said, "Elder Matsukata was referring to the future of the navy. The current navy is not for me to decide. If you insist that I give any opinion on behalf of the navy, then I can only express my regret."

Looking into Lin Xinyi's clear eyes, Inoue Kakugoro couldn't help but feel suspicious. After all, Lin Xinyi didn't seem like the arrogant young man Matsukata had described. When Matsukata instructed him to meet Lin Xinyi, he specifically told him not to argue with him, as that would only push the navy further away from merchants like them.

Inoue Kakugoro, who had been frowning, hesitated for only a moment before immediately following Lin Xinyi's lead and asking, "So what is your personal opinion on this proposal?"

After a moment of silence, Lin Xinyi finally spoke up: "If it's just my personal opinion, then I think the plan is actually quite good, it's just a little late."

Kakugoro Inoue couldn't help but press, "Why is it so late? The government hasn't even officially approved the heavy industrialization plan yet."

Lin Xinyi shook his head regretfully and said, "What I mean is, this plan was advanced 30 years ago, but now it's outdated."

Although he didn't agree with Lin Xinyi's judgment, he still earnestly asked, "Why do you say it's outdated now?"

After organizing his thoughts, Lin Xinyi said, "The closer the steel mill is to coal or iron ore deposits, the better. This is an experience the Germans gained when developing the Ruhr industrial region. Why? Because 30 years ago, sea transport was not as convenient or fast as rail transport, and steamships did not have an advantage in terms of cargo capacity. Especially for long-distance voyages, large cargo ships took up a lot of space just to carry their own coal."

However, today's technology has made ships larger and faster. Thirty years ago, merchant ships of five or six thousand tons were the mainstream of maritime transport, but today, ten-thousand-ton ships have become the stars of the shipping industry. As ships get bigger and bigger, shipping costs have become cheaper and cheaper. Therefore, the location of steel mills in areas with concentrated coal and iron ore resources is no longer the first choice. Compared with the distance from coal and iron ore producing areas, steel mills now care more about whether the site is located in a convenient transportation location.

I just heard you mention the iron ore mines in Muroran, but the reserves of high-quality iron ore there are not abundant. You believe Muroran can at least support a steel mill with a capacity of 100,000 tons per year, but from the Navy's perspective, an annual output of 100,000 tons is negligible. To consider moving the core steel mill to Muroran for such a small amount of steel production is clearly putting the cart before the horse.

Kakugoro Inoue then pressed further, "So where do you plan to locate the steel mill?"

Lin Xinyi thought for a moment and said, "I think Osaka and Tokyo are both good choices. Of course, there isn't much land left to develop in these two cities, so we should look for places to build in their less populated suburbs."

When Inoue Kakugoro pressed him for answers, Hayashi Shin-yi refused to give a direct response. Inoue then turned to Hayashi for advice on heavy industry planning, still not entirely convinced that Hayashi was the architect of the project, and thus attempted to test him with specific details. If Hayashi was truly stumped, it would mean he lacked the ability to lead such a large-scale industrial construction project.

Lin Xinyi answered these questions readily. After hearing a few answers, Inoue Kakugoro was somewhat frustrated to find that the other party indeed understood what industry was better than he did. Sometimes he even had to think about it to understand what the other party was talking about.

Although Kakugoro Inoue sought to transform Muroran into a true industrial city in order to revitalize the mineral resources and railway transportation along both sides of the Hokkaido railway line, he did not have much theory on how to build a steel city.

However, when Lin Xinyi talked about industrial and urban planning, he was quite eloquent. This taught Inoue Kakugoro a lot, but it also dampened Inoue's confidence. He thought that dealing with such a young man wouldn't take too much effort, but even when the train arrived in Shinagawa, Inoue Kakugoro couldn't persuade Lin Xinyi. Instead, he was persuaded by Lin Xinyi to first go to China and India to investigate the situation of coal and iron mines.