Twentieth Century Chronicle

Page 41

Chapter 139 The Wind Rises

Terauchi Masatake couldn't stand being insulted by Yamamoto Gonbei. The two were not only the same age, but also had the same seniority. The reason Yamamoto was able to rise to prominence was simply because the Navy had no one else, while Terauchi had a group of Army veterans above him. As for Ito, although he was considered a senior, his seniority among the veterans was too shallow, and he was really not comparable to Yamagata and Oyama. Therefore, Terauchi was not afraid to quarrel with Yamamoto Gonbei, since Yamagata and Oyama would definitely support him.

However, at this moment, Ito Sukeyuki suddenly spoke up, "The Naval General Staff merely made a suggestion to the Cabinet and the Army based on the analysis results of the intelligence analysis team, believing that there might be an anti-Japanese sentiment in the United States. How did the Army come to see this as a provocation against the United States? If the Army does not accept the Naval General Staff's analysis results, then it can publicly clarify to the public that the Naval General Staff does not object. But what is the Army's current statement? Is it avoiding the issue, or rejecting the suggestion?"

Terauchi Masatake was stunned. He looked at Ito, who was unable to utter a word of refusal. He was dissatisfied with the Navy's unauthorized decision, but he wasn't truly foolish. The possibility of an anti-Japanese sentiment sweeping the United States was very high, given that the US had already refused to allow Japanese to relocate to Hawaii and the Philippines. If he dared to publicly endorse the US government, it would be tantamount to issuing a political death sentence to the nation. The public would certainly see him as a traitor to the US, and the Army's reputation would suffer a severe blow.

Knowing that Terauchi couldn't respond to Ito's words, Oyama Iwao spoke up, saying, "Even if the Naval General Staff's intelligence analysis is completed, shouldn't it be submitted to the Cabinet and the Army for review before a decision is made? Why should it be released to the public first?"

Without even blinking, Ito replied, "Chief of Staff Oyama seems to have misunderstood something. The Information Analysis Team is a subordinate organization of the General Staff Headquarters, and it is only responsible to the General Staff Headquarters. I think the Information Analysis Team's suggestion is very feasible, so I naturally allowed them to start some preliminary work. After all, with public opinion, once the opportunity is missed, there is no chance to add fuel to the fire."

As for the specific plan to pressure the US, isn't that precisely the point of our discussion today? If the cabinet disagrees, a simple clarification announcement won't have any lasting consequences. After all, we're only supporting China as an ally; we haven't said we're going to war with the US, have we? Since when did the General Staff have to get its statements censored by the Army?

The army was not only dissatisfied with Ito's statement, but even Prime Minister Ito was quite uncomfortable. What did he mean by issuing a clarification statement, igniting the public's anger with the navy, and then having the cabinet put out the fire? How would the public view the cabinet in the future?

Oyama could only stare speechlessly at Ito. He wasn't afraid of Ito going head-to-head with him, given his far greater experience. But if Ito was digging a pit for him like this, only a fool would actually jump in.

Hirobumi Ito coughed lightly to interrupt the argument, then turned to Ito and said, "So, Chief of Staff Ito, do you have any specific plans for everyone to consider? Or, to what extent does the Navy intend to carry out this propaganda offensive against the United States?"

Ito Sukeyuki glanced at the now quiet army opposite him and thought that this was probably the true atmosphere of the navy being the master and the army the servant. Despite these thoughts, he calmly said, "The navy's goal is actually very simple: to take this opportunity to contact countries around the Pacific Rim to organize a multilateral conference to discuss Pacific affairs, such as the American actions of harming civilians in the Philippines, and the inhumane treatment of people of color by the Dutch in Sulawesi, Java, Sumatra, Borneo, and other islands. The navy believes that Japan has a responsibility to care about the survival of people of color, which is also the benevolence of the emperor."

Terauchi wanted to say something, but ultimately gave up. Oyama Iwao looked at Ito with a surprised expression and asked, "The Navy has such ambitions to realize the Emperor's benevolence, and the Army certainly has no objection. However, how many countries in the Pacific Rim will support Japan? Do you really think that what Britain, Germany, and France did in their colonies was any more noble than what the Americans and Dutch did?"

Ito nodded slightly and said, "Indeed, the various powers did pretty much the same thing in their colonies; it was all about the survival of the fittest. However, this was just an excuse to let the world know why Japan was opposing the United States."

The navy's true objectives were twofold: to gauge China's support for the Allies and to assess Britain's support for Japan. A war between Japan and Russia would be far larger than the Sino-Japanese War; it would be a truly all-out war.

Japan is going to gamble away all the achievements of its Meiji Restoration. Shouldn't they at least try to understand what our allies are thinking? While we don't expect the Chinese to contribute much in the war, they should at least hold out until the end. If we haven't even mobilized our forces, and Beijing has already surrendered to Russia, what's the point of fighting?

Secondly, the British attitude will determine the extent of our postwar gains. If we rashly place our bets without even understanding the British stance, how will we secure the spoils of victory after Japan's sacrifices? Will we try to move the British with our loyalty? We all know that the British are only loyal to their own interests; they will not be loyal to their allies.

Oyama Iwao quieted down. He could discuss with Ito why and how to fight Russia, but he couldn't discuss issues like securing post-war benefits; that wasn't the job of the army.

Foreign Minister Kato finally spoke up, saying, "The British did say that, but they are serious about the alliance. I think Chief of Staff Ito need not worry too much."

Ito glanced at Kato and said, "What do I have to worry about? It's the British siding with the Americans that worries the people. Can you, Foreign Minister Kato, guarantee the people that Britain will never side with the Americans?"

Kato was about to say something when he suddenly realized that nothing he said would be appropriate. As soon as the invitation to the Rim of the Pacific Conference was sent out, he would immediately know what the British were thinking. Anything he said now would be pointless.

Seeing that Ito Sukeyuki had single-handedly suppressed the Army and the Ministry of Foreign Affairs, Ito Hirobumi thought for a moment and asked, "So what is the theme of the Navy's proposal to invite various countries to the Rim of the Pacific Conference? We can't just say that Japan only cares about the survival of people of color in the Philippines, which is obviously meant to provoke everyone to target the United States, can we? I am firmly opposed to such a theme that would provoke the Americans."

Ito pondered for a moment, opened his notebook, looked at it for a few seconds, and then looked up and said, "The Pacific and Atlantic Oceans are two oceans with different sea levels. This is different from the Red Sea and the Mediterranean Sea, which have the same sea level."

Therefore, the Suez Canal was not particularly difficult to excavate, but the Panama Canal was much more challenging. Of course, I'm not emphasizing the construction difficulty of the Panama Canal; what I mean is that there was no precedent for excavating a canal under such uneven sea levels, meaning the risks were very high, not only for the host country but also involving the natural ecological issues of Pacific island nations and the surrounding Pacific region.

Therefore, we believe that the construction of this canal should not be permitted without the consent of all participating countries. The Rim of the Pacific Conference will adopt a one-country-one-vote system, emphasizing equality between large and small nations. Only after Colombia and the Panama Canal Company have completed their investigation reports and disaster response plans, and have compensated all participating countries for any losses incurred due to the canal's construction, and with the unanimous consent of all countries, can Japan accept the construction of the Panama Canal.

If the United States and France disregard the security and freedom of action of other Pacific nations, then Japan will also have the right to act freely in the Pacific to defend its own interests.

The Ministers of the Army and Navy finally realized what Ito wanted: the right of the Japanese Navy to operate freely in the Pacific. This was indeed something the Navy had long dreamed of. With its current size, the Navy could only operate between Taiwan and Japan, unable even to cross the Philippine Islands—a truly disheartening situation. If Ito could truly help the Navy secure this right, then he, as a naval elder, would no longer be merely a representative of the Navy, but a true naval elder with his own authority.

Yamamoto Gonnohyōe's first thought was that even if Ito was a senior, he had gone too far this time, completely disregarding the Navy's unspoken rules and sidelining him, the Minister of the Navy. Shouldn't such a matter be submitted by the Naval General Staff to the Ministry of the Navy for review first, and then reported to the Cabinet by the Ministry of the Navy?

Now he could only look down at the table, desperately suppressing his emotions. If he said such things here, the Navy would never forgive him.

Terauchi Masatake looked at Oyama Iwao with some concern. He realized that in this situation, the rule of land dominance over sea subordination was completely ineffective, because the army couldn't refute the plan. If the army refuted the plan, it would mean a complete break between the navy and the army. Just as if the navy opposed the army's takeover of Manchuria, the army would also break with the navy. These were matters concerning the future of both sides, and there was absolutely no possibility of compromise.

Oyama sighed and asked, "If China is unreliable and Britain doesn't approve, what do you plan to do?"

Ito Sukeyuki stared at Oyama Iwao for a while before saying, "If the current Chinese government is unreliable, then we should support a new government that can stand with Japan against Russia. Isn't the army's support for the Chinese revolutionaries exactly what we should be doing here?"

If Britain does not approve of this conference, then Britain should provide us with more compensation. In the eyes of the British, the Anglo-Japanese Alliance was solely for countering Russia; once Russia is driven back to Europe, Japan will lose its purpose. Therefore, Britain should pay us first before we can work for them.

"To risk Japanese lives and the nation's savings to fight the Russians, just for the sake of British praise—what meaning does such an alliance truly hold for Japan? It's either the Panama Canal or the Philippine Islands. Britain will always have to pay one price. That's the navy's opinion."

Yamamoto Gonbei remained silent at first, but as the room suddenly fell silent and everyone's eyes turned to him, he realized what was happening and said, somewhat choked up, "Yes, that's the Navy's opinion."

Chapter 140 The American Response

Mori Taijiro delivered the revised Chinese poem to Ito Hirobumi, only to find Ito studying a book of Shusaku's chess moves. He couldn't help but smile and ask, "What brings you to such a refined mood today, my lord? How about we play a game?"

Ito Hirobumi put down the chess manual and replied to Mori Taijiro in a way that seemed irrelevant: "I once thought that with Honinbo Shusaku gone, it would be difficult to see a player like him again, one who could open up the board with such grandeur and force the opponent with overwhelming force. But today I have seen such a player again. I really shouldn't have agreed to Saigo's request."

Mori Taijiro didn't respond to Ito's regret, because he knew that Ito simply wanted someone to confide in, not to seek advice. Ultimately, Ito always made his own decisions. However, there was one person who could persuade Ito to listen to his advice—the boy Saigo had taken away.

Americans are already extremely cautious about Japan's movements. Secretary of State John Hay has been worried that Japan might use this as an opportunity to incite unrest among Japanese residents in Hawaii or California, thereby provoking a conflict between Japan and the United States. The Philippine Islands could also become a target for Japanese naval attacks. Therefore, he ordered local U.S. officials to closely monitor the actions of Japanese residents.

However, he did not expect that Japan would propose a multilateral meeting of the Rim of the Pacific (RIMPAC) to address the construction of the Panama Canal. The most troublesome thing was that the Colombian Senate immediately accepted Japan's suggestion, announced the indefinite suspension of the Panama Canal construction plan, and rejected the John Hay-Erland Treaty.

On January 23 of this year, the United States and Colombia signed an agreement to build, operate, and control the Panama Canal, transferring control of the area within three miles of both banks of the canal to the United States. The treaty is valid for 100 years and can be renewed for roughly the same period. The United States will pay $10 million, plus an annual canal rent of $250,000 starting in 1912.

On March 23, the John Hay-Erland Treaty was ratified by the U.S. Senate, but Colombia has yet to pass it. Colombians feel they are not getting enough, and they are also worried that the opening of the canal will exacerbate separatist tendencies in Panama.

Even before the Japanese raised their concerns about the Panama Canal, Colombians were already nearly inclined to reject the treaty. Now, taking advantage of the Japanese concerns, Colombians have logically rejected the treaty signed by their government and the Americans.

Moreover, the Mexican and Chilean governments also responded positively to the Japanese invitation. There is a general distrust of Americans in South American countries, but they dare not take the lead because of the United States' strength.

Chile, in particular, is most averse to the Panama Canal because it brings the United States closer to them. Chileans are well aware that to live a good life, they must stay away from the Americans.

When Secretary of State John Hay reported the Colombians' decision to the President, he specifically pointed out: "Using the opposition to the Panama Canal, Central and South American countries are uniting in an attempt to build an anti-American alliance, and Japan has also found a pretext to interfere in American affairs. I believe that it is inappropriate to proceed with the original plan at this time, because Japan can intervene by force. We cannot go to war with the Colombians and Japan; it is legally untenable."

Although Roosevelt resented Japan's interference in the Panama issue, he at this time agreed with the Secretary of State's view that they could incite the Panamanians to launch a war of independence, and Japan could assist the Colombian government in suppressing the Panama. The French would certainly not endorse the Americans for this, because French Indochina was still within the attack range of the Japanese navy.

After a long silence, he asked the Secretary of State, "What do the British mean?"

John Hay said with a wry smile, "The British were forced to agree to let us build the Panama Canal. After all, the US Navy cannot be confined to the East Coast and the Gulf of Mexico. If the British don't allow us to freely enter and exit the Atlantic Ocean, then at least they should give us a way to enter the Pacific Ocean. The Panama Canal is a compromise made to ease the maritime disputes between the two sides."

However, the British could not risk antagonizing Japan over this canal, because Japan was currently a linchpin for stabilizing British East Asian order. If we wanted Britain to destroy this linchpin, we would have to pay them a much higher price. That would mean the United States would have to become a British vassal and assist Britain in its involvement in European affairs.

Roosevelt shook his head and said, "That's impossible, of course. The British will take this opportunity to drain us dry. The British's goal is to eliminate all their enemies in one European war."

Therefore, we should do our utmost to prevent the establishment of this multilateral conference, or at least ensure that Japan cannot target our country at the conference. At the same time, we should weaken the Japan-China alliance; if such an alliance emerges in East Asia, the United States will have virtually no say in Asian affairs.

Although John Hay agreed with Roosevelt's view, he still cautiously asked him: "To divide the Sino-Japanese alliance, does that mean we must make concessions on the issues of the Yuehan Railway and reparations?"

Roosevelt nodded and replied, "While $2000 million in reparations is not a small sum, it is not actually in the best interest of the United States. We cannot use it for the military or for domestic purposes."

Since the outbreak of the American Revolutionary War, every war launched by the United States has been based on patriotism. The reason why we initially refused to allow the United States to participate in this war of riots lies here, because the imperialist flavor of this war was too strong.

Many people in China may believe that the wars we waged in the Philippines and China were for the benefit of the United States, but this is only the view of a small minority. In the United States, the majority of people are only concerned with their jobs and wages; they are not concerned with America's foreign wars.

Once socialists link imperialism with the United States, American patriotism will suffer a severe blow. Without a shared sense of patriotism, the United States will cease to be a complete nation.

John Hay understood Roosevelt's thinking. After all, the American workers who fell under the machine guns of the Pinkerton Detective Agency were unlikely to fight for American capitalists. There was only one reason that could get these American workers to participate in America's foreign wars: to defend American liberalism. The wars between the United States and Mexico, and between the United States and Spain, were both based on this call to action.

However, global public opinion is now exposing the image of the US military in the Philippines, Cuba, and China to the American public, showing them an American army indistinguishable from that of imperialist forces. The so-called defense of freedom and America's call for war are becoming a lie. If this rhetoric continues to escalate, the already divided American society will naturally experience a major split.

In the United States today, the conflict between the propertied class and the proletariat has become quite intense. A segment of the propertied class has begun to advocate progressivism, attempting to ease tensions between the working class and capitalists, hoping to gain public support in recognizing them as masters of the country and thus encouraging them to limit the lawless behavior of corporations. Roosevelt appears to have leaned towards progressivism, although he did not completely oppose some of the imperialist policies left by McKinley.

After a moment's thought, Roosevelt continued, "We cannot allow Japan to take any action against Hawaii and California, but if a conflict breaks out between the United States and Japan, we certainly cannot hold onto the Philippine Islands. Therefore, our bottom line is to give up a portion of the Philippine Islands, such as Mindanao, to Japan in exchange for concessions on the Panama issue. Once Japan accepts this bait, the countries of the Americas will lose a leading anti-American force, and we can then conquer them one by one."

John Hay nodded slightly, but quickly added, "The Germans have hinted to our ambassador that if we support them on the Morocco issue, they will support us at the Rim of the Pacific. Furthermore, the Russians have suggested that Russia and the United States could negotiate on Pacific issues. How should we respond to them?"

Roosevelt dismissed the suggestion, saying, "The fact that the Germans oppose us on the Panama issue is in our best interest. As for Russia, their presence in East Asia is the greatest threat to the United States. Japan is merely a resource-poor island nation; as long as they cannot occupy the mainland, the Pacific will ultimately belong to the U.S. Navy after the completion of the Panama Canal."

But if Russia were to gain an ice-free port in the Pacific, we would face the same problem as in the Atlantic: without a foothold for the United States on the other side of the ocean, the United States would truly be isolated from the world…”

In 1902, the Marquess of Salisbury relinquished the position of Prime Minister to his nephew, Arthur James Balfour, an imperialist and Scottish nationalist, due to health reasons. Upon taking office, Balfour believed a European war was inevitable and thus created the Imperial Defence Council, directly under the Prime Minister, to reform the British military.

Balfour was unwilling to intervene in the conflict between Japan and the United States, because Britain would offend the other side no matter which side it took, and for Britain, neither Japan nor the United States was currently an enemy. Foreign Secretary, the Marquess of Lansdowne, did speak frankly to the Prime Minister: "The Japanese seem to have grasped the crux of the matter, and this conflict should end with an American compromise."

The Marquis of Lansdowne was right. When the Japanese pushed the anti-American sentiment in Asia to a new level and attempted to unite their American nations in a substantive confrontation with the United States, the Americans chose to back down.

The American minister told the Qing government that, in order to defend Sino-American friendship, the United States was willing to return the Boxer Indemnity, but that the funds should be used for education in China. The United States also made concessions on the issue of the Yuehan Railway, preparing to allow China to redeem its right to the railway. This move by the United States received an enthusiastic response from the Qing government, and the anti-American sentiment within the country began to gradually subside.

Chapter 141 Financial Storm

Although the Army was suppressed by Ito Sukeyuki at the expanded cabinet meeting and ultimately had to agree to the Navy's demands, after all, the Navy's request was not to go to war with the United States, but only to hold multilateral talks on Pacific affairs. If such a request was not agreed to, the Navy would probably really be going against the Army on the issue of the Russo-Japanese War.

The Navy's reasons are readily available. Since the Army is afraid of the United States, which has less than 100,000 soldiers, where does it get the courage to challenge a continental superpower with a million soldiers and millions of reserves?

If this were to get out, the army would become the target of public criticism, because the army's propaganda rhetoric about easing Japan's population pressure by encouraging emigration overseas is precisely what it uses to promote its continental policy. Now that the safety of overseas Japanese is not guaranteed, and the army is only thinking about going to war with Russia, how will the public view the army?

Although the army conceded at the cabinet meeting, it did not truly intend to follow the navy's lead and provoke the Americans at this time. The army believed that the navy was merely trying to curry favor with the public and that damaging Japan-US relations would only isolate Japan in the upcoming war.

Army Minister Masatake Terauchi was a major supporter of this view, and he also contacted Katsura Taro to exchange opinions on the decision of this expanded cabinet meeting. Katsura Taro was a key figure in the second generation of the Choshu clique that Yamagata planned to promote. In order to give Katsura Taro a prominent position, Yamagata also made Katsura Taro relinquish his position as Army Minister, preparing to form a cabinet during the war.

However, due to the repeated diplomatic maneuvering of the Ito cabinet, the Russo-Japanese War, which the army initially thought would soon be launched, now seems to be a long way off.

Previously, the army's objectives were relatively modest, primarily aimed at repelling the Russians on the Korean issue. However, with Russia's forceful occupation of Manchuria, the army's objectives rose slightly, intending to expel Russia from Manchuria, or at least southern Manchuria. But with the changing circumstances, the army, seeking a more glorious victory, chose to push Russian forces back west of Lake Baikal. Thus, whether war would break out before the completion of the Trans-Siberian Railway was no longer a certainty; forcing Russia to fight China first was the best opportunity for Russo-Japanese War to occur.

Yamagata Aritomo and Oyama Iwao were leaders who determined the direction of the army, so they were naturally calm and collected. But Katsura Taro was different. He was originally going to succeed Ito in forming a cabinet, but now the Russo-Japanese War was far off, and the Ito cabinet was surprisingly stable. It was unlikely that he would step down unless war broke out. He was essentially hanging in mid-air, feeling somewhat adrift.

Terauchi Masatake's dissatisfaction, coupled with Katsura Taro's unwillingness to change the original plan, led the two to quickly reach a consensus: to bring Japan back to the right track. What was the right track? Naturally, it meant prioritizing the Russo-Japanese War, rather than letting the Ito cabinet and the navy make a mess of things. If the best opportunity to start the Russo-Japanese War was missed, the army would be trapped on the Korean Peninsula and unable to venture out. What would be the point of a land-dominated, naval-supported regime?

With Katsura Taro's support, Terauchi Masatake brought in Sugiyama Shigemaru. Although he was a key figure in the Genyosha, Sugiyama Shigemaru was actually a political broker. His specialty was connecting the political and financial worlds to facilitate behind-the-scenes deals.

Most of the political ideologies of the Genyosha originated from Sugiyama Shigemaru, which is why he was referred to as the "second-in-command" of Toyama Mitsuru. After the end of the Sino-Japanese War, Sugiyama Shigemaru believed that Japan's future inevitably lay on the mainland, because apart from the corrupt and decadent Qing Dynasty, Japan would not encounter any real rivals on the mainland.

Before the Sino-Japanese War, Russia was generally considered a European country, and therefore Japan was very dissatisfied with Russia's interference in East Asian affairs. This explains the strange incident of the Japanese attacking the visiting Russian Crown Prince; if Russia had been an Eastern country, the Japanese would not have taken such drastic action.

It was only after the Triple Intervention that Japan realized Russia also had a presence in East Asia. This was because Russia's occupation of the Kwantung Leased Territory and its commencement of the construction of the Chinese Eastern Railway, an attempt to consolidate its influence in Manchuria, forced Japan to take Russia's interests in the Far East seriously.

Genyosha was originally a ronin organization that made its fortune by developing coal mines in Kyushu. After becoming wealthy, Genyosha became very interested in mining. However, at this time, most of Japan's mineral resources had already been divided up by major conglomerates. If Genyosha wanted to find a new mineral resource to develop, it had to look to the mainland. This was the fundamental reason why Genyosha advocated a mainland policy.

Genyosha's thirst for continental mineral resources led it to shift from a Satsuma-affiliated ronin organization towards the Choshu faction. After all, only the army could drive the continental policy, and the navy's southward advance was clearly hopeless, given the numerous powerful nations in the south.

Terauchi Masatake and Katsura Taro summoned Sugiyama Shigemaru, naturally to urge him to take action and push forward the Russo-Japanese War to suppress the current anti-American sentiment. Sugiyama Shigemaru had long had a plan to promote the Russo-Japanese War, but it had been shelved due to the obstruction of Ito Hirobumi as Prime Minister.

Sugiyama Shigemaru was not afraid to oppose Ito Hirobumi; his only concern was that the army had not reached a consensus. Therefore, he specifically asked the two men, "Has Yamagata Genro already agreed? Once this arrow is shot, it cannot be taken back."

Katsura Taro, seated in the main seat, remained silent, while Terauchi retorted with a cold laugh, "Don't the two of us sitting here represent Marshal Yamagata?"

Sugiyama Shigemaru hesitated for a moment, then quickly raised his glass to apologize to Katsura Taro and Terauchi Masatake. On August 27, a group of seven PhDs from Tokyo Imperial University—Hiroto Tomizu, Masaaki Tomii, Nobuyuki Kanai, Toru Terao, Shingo Nakamura, Sakue Takahashi, and Kiheiji Onozuka—submitted a letter of opinion to Prime Minister Itō, criticizing the government's weak diplomacy towards Russia, advocating for war against Russia, and creating public opinion for war through newspaper and magazine articles and lobbying activities.

Following the publication of the Seven Doctors' letter, the Genyosha and army-controlled newspapers began to hype up the atmosphere of war against Russia, temporarily suppressing public opinion regarding the formation of the Rim of the Pacific Conference. Compared to the atrocities committed by the United States in China and the Philippines, and the plight of Japanese residents in the United States, the Japanese were ultimately more concerned about affairs on their own doorstep.

In early September, seeing that the situation might spiral out of control, the Americans, who had initially softened their stance, adopted a wait-and-see attitude. Ito Sukeyuki had no choice but to summon Kawahara and ask, "Did Lord Saigo leave behind a contingency plan?"

Kawahara nodded in agreement to Ito, then asked, "Does the Chief of Staff mean that we can activate this contingency plan?"

Ito was still somewhat undecided, and after a while he continued, "Shouldn't we meet with Lord Yamagata first? Doing this seems to be disregarding the overall situation."

After thinking for a few seconds, Kawahara said, "The Army didn't consult us, nor did they afterward. If we bow down to the Army first, no matter what problems arise later, the Army will assume it's the Navy's doing. Chief of Staff, everyone should know the truth about this; there's no need to give them any ammunition."

Ito Sukeyuki slowly clenched his fist, finally slamming it heavily on the desk in front of him with a loud thud. He then calmed down and ordered Kawahara, "Let's begin. Have Togo control the wired telegraph lines at the military academy. Report the situation there promptly, and make corrections immediately if anything changes. If you get caught, I can't protect you, you understand?"

Kawahara bowed deeply to Ito and replied sincerely, "Please rest assured, Commander-in-Chief, this matter will at most fall on my shoulders, and will definitely not escalate further..."

On September 9th, a tabloid suddenly published a report that a naval admiral suggested the Emperor should temporarily relocate to Kyoto until after the Russo-Japanese War ended, at which point he could return to Tokyo. On September 10th, another tabloid reported that the Imperial Palace in Kyoto appeared to be undergoing renovations. That afternoon, land began to be sold off.

On September 11, a tabloid published a report that the Mitsui zaibatsu had suspended factory construction in the Tokyo area and intended to sell a batch of land in the suburbs of Tokyo. In the afternoon, a large number of investors began to sell their Tokyo Metropolitan Government Development Bonds at the Tokyo Stock Exchange, and a financial earthquake suddenly broke out.

In less than a week, Tokyo land prices wiped out a year's worth of gains. But that wasn't the worst part. The massive sell-off of Tokyo Metropolitan Government development bonds caused a rapid decline in the national treasury's gold reserves, triggering a depreciation of the yen and a stock market crash. The prosperity Japan had created over the past two years through land development was, with the combined efforts of the army and navy, bursting this bubble of false prosperity.

At this point, no one cared about whether the Russians would occupy Manchuria and Korea; everyone was worried about losing their savings. Those who had championed the Russo-Japanese War became the targets of hatred for those who suffered heavy losses in the financial crisis. People didn't care who created the bubble; they hated those who burst it.

The once-renowned Seven Doctors have now fallen silent, no longer advocating for war against Russia. In fact, the windows of several of their homes were smashed by angry citizens, who suspected that the Seven Doctors had been bribed to use war as a ploy to intimidate the market and allow the tycoons to make a fortune.

On September 13, public opinion began to point the finger at Prime Minister Hirobumi Ito, arguing that he should take responsibility for the collapse in Tokyo's land prices. Ito was forced to petition the Imperial Household Department for permission to resign.

On the evening of the 13th, the Imperial Household urgently summoned the senior officials to discuss the current situation. Ito Hirobumi knew perfectly well that the incident was orchestrated by the Army and Navy, but he couldn't reveal it, otherwise the Army and Navy would be forced into a true state of hostility, as neither could bear the responsibility. Therefore, aside from apologizing to Meiji, he offered no further comment.

Yamagata looked at Ito, and the two stared at each other for a moment before looking away, remaining silent. The situation had escalated to such an extent that neither the army nor the navy had anticipated it. Both sides were seasoned veterans; they knew that political infighting couldn't possibly bring a country down so quickly. Unless a major incident like the Sakurada Gate incident occurred, the sky wouldn't fall.

But neither of them expected that publishing a few articles in the newspapers would almost cause the country to collapse; it was just too shocking. Since things had come to this point, silence was of the essence. Yamagata was truly uncertain about the current situation, so he remained silent. Ito had some confidence, but he couldn't voice it.

Chapter 142 Emergency Meeting

It was not appropriate for Ito Hirobumi to speak at this moment, but his ally Inoue Kaoru could speak frankly before the Emperor: "Things have come to this point entirely because the division between the Army and Navy has caused public unrest. Shouldn't the Army and Navy clarify their positions? Otherwise, no one can resolve this issue."

Faced with Inoue Kaoru's questioning, Yamagata had no choice but to speak up: "The army is concerned about the safety of the Empire. The root of the Russo-Japanese problem lies not with us but with Russia. If Russia could take care of our country's interests on the continent, why would the army have to fight a war with the Russians?"

Ito Sukeyuki was quite respectful to Inoue Kaoru, after all, he was a generation younger than these true elders, so he didn't put on any airs. He sincerely said, "Russia originally did not belong to Asia. This country relied on annexation and took less than a hundred years to occupy the wilderness of Siberia. Now it has its eyes on Korea and Manchuria."

This insatiable appetite will eventually turn all of East Asia into part of Russia, so the navy does not oppose going to war with Russia. However, the navy opposes going to war for the sake of war; Japan is just a small country, and its population, resources, and land area are insufficient to compete with the great powers.

For Japan, every war is a drain on our reserves. Only the Franco-Prussian War can compare to the Sino-Japanese War. Looking at the entire history of warfare, such a war might not occur even once in 100 times. Therefore, if the army believes that defeating the Russian army will recoup its military expenditures, then the navy is firmly opposed to this war.

The navy viewed this war with only one objective: to expel Russian influence east of Lake Baikal. Achieving this objective constituted victory; reparations were out of the question. Furthermore, to ensure the expulsion of Russian influence east of Lake Baikal, the navy was even willing to support national autonomy in Russia's Far East territories. This was the navy's perspective.

Yamagata's face remained calm, and no one could tell what he was thinking. Matsukata Masayoshi echoed his own men, saying, "I think the Navy's position is sound. If we can really drive the Russians out of the Far East, then any price we pay will be worth it."

Even Inoue Kaoru nodded slightly and said, "Compared to the goal of seizing Manchuria, it is naturally more in Japan's interest to expel the Russians from the Far East. Otherwise, given Russia's size, it will recover quickly after a defeat, and we cannot afford not to be wary of its retaliation. The Russians and Turkey fought ten major wars over the Balkans and the Straits. I do not believe that they will give up Manchuria and Korea after just one defeat."

Ito Hirobumi finally spoke up, saying, "I support the Navy's position; this can be considered the optimal solution. As for the Army's position on Japan's security and continental interests, that can be considered Japan's bottom line. Now, the only remaining question is: who will handle the current domestic situation?"

After a moment of silence in the room, Yamagata finally spoke: "This whole incident was caused by the tabloids publishing the Navy's words. I think the Navy should stand up and give the people confidence."

Oyama Iwao and Inoue Kaoru both nodded in agreement with Yamagata's statement. Whether the Russian fleet could reach Tokyo Bay depended on the navy's capabilities. If anything went wrong, it would be the navy's responsibility, and the people would at least have someone to vent their anger on.

Ito Sukeyuki, naturally, wouldn't fall for Yamagata's trick and jump out to guarantee that the Russian fleet wouldn't approach Tokyo Bay. He calmly said, "Isn't the root of this incident the issue of the Russian fleet approaching Tokyo Bay? Isn't it someone using this news to manipulate Tokyo real estate prices for personal gain? If this problem isn't resolved, what does it matter whether the Russian fleet approaches Tokyo Bay or not? Those profiteers will definitely spread rumors again."

Yamagata was speechless for a moment, while Oyama Iwao, standing beside him, looked at Ito Sukeyuki with a solemn expression and asked, "Count Ito, who do you think these profiteers are?"

Emperor Meiji, seated in the main seat, unconsciously frowned. Matsukata Masayoshi also carefully observed Ito's expression. Ito Sukeyuki, seemingly oblivious to all this, said, "The important thing is not who they are, but whether the people believe that the people we have found are those who seek profit. If the people do not believe us, then it is useless no matter who we say it to. They will hold onto their money tightly, and there will be a money shortage in the market."

Both Masayoshi Matsukata and Kaoru Inoue agree with this view, believing that Japan is not truly short of money, but rather that the current bank run is caused by people holding onto their money. They argue that once public confidence is restored, Tokyo land prices will stabilize, which in turn will stabilize the bond and stock markets, preventing further depreciation of the yen.