For a few years it looked as though the first of the three Powers to be eliminated would be Russia. The Russian Revolution of 1917 was followed by the break-down of orderly Russian adminis tration in the Far East. The situation was complicated by the dis patch of troops to Eastern Siberia by Great Britain, France, Japan, the United States, and China. In numbers of troops Japan out distanced the others and for a time it appeared that Japan might supplant Russia in that region. That would, of course, have led to Japanese ownership of the former Russian holdings in Northern Manchuria. Partly to prevent this development, the C.E.R. was placed under the control of an inter-allied commission with an American at its head. In 1919, after the Communists had gained control in Russia, they announced their renunciation of all special privileges acquired by the Tsarist Government in China and promised the restoration to China of the C.E.R. and of the mines and forests acquired by the Tsarist regime. When it came to actual negotiations with China, however, by an agreement signed May 31, 1924, Soviet Russia, while surrendering extraterritorial ity and the former Russian concessions and agreeing in principle to the eventual repurchase by China of the road, insisted upon retaining a share in the administration of the C.E.R. A somewhat similar agreement regarding the C.E.R. was signed between Russia and Chang Tso-lin, the ruler of Manchuria, Sept. 20,1924. Fric tion followed, accentuated by the anti-Communist, anti-Russian. reaction in China after 1927. In 1929, under the youthful suc cessor of Chang Tso-lin, Chang Hsiieh-liang, and impelled by the rising tide of nationalism, the Chinese attempted to oust the Russians from their participation in the C.E.R. The Russians struck back, and in a sharp, brief, undeclared war compelled the Chinese to restore the status quo.
In various ways the Chinese were attempting to restrict the Japanese. Notable was the progress in constructing a system of railways which would be independent of the islanders and have an outlet to the sea through the port of Hulutao, free from Japa nese domination. Friction, too, developed between Koreans and Chinese in Manchuria, the former being Japanese subjects. On the night of Sept. 18-19, 1931, the Japanese military forces struck, giving as the reason what they alleged to be the blowing up by Chinese of a part of the South Manchurian railway just out side of Mukden. In the following few weeks they occupied a num ber of strategic centres. At the time Chang Hsileh-liang had most of his forces south of the Great Wall and before the Japanese Army his rule in Manchuria quickly collapsed.
China appealed to the League of Nations. That body ap pointed a commission, headed by the earl of Lytton, which, after investigation, in the autumn of 1932 reported in the main un favourably to the Japanese. Geneva proved unable to implement its decision, but its action led to Tokyo's withdrawal from League membership.
In the meantime the Japanese, faced with the necessity of maintaining some kind of order in the provinces where they had destroyed Chang Hsiieh-liang's regime, were stimulating the erec tion of a new administration. Local and provincial provisional governments were set up, mostly by resident Chinese (and, in some areas, Mongols) with Japanese advisers. Early in 1932 a Manchuria-wide government was organized and on February 18 of that year this declared the independence of the Three Eastern Provinces under the name of Manchoukuo. Pu Yi, who with the title of Hstian T'ung had been the emperor of the Ch'ing (Manchu) dynasty when it abdicated its control of China in 1912, and who had since been living in retirement in Peking and Tientsin, be came the regent. This seemed to connect Manchoukuo ("The State of Manchu"), or Manchoutikuo ("The Empire of Manchu"), with its historic past and to give it an air of legitimacy. A step further was taken when, on March 1, 1934, Pu Yi formally an nounced his ascent to the throne under the title of Kang Te. His residence was established at Changchun, renamed Hsinching, or Hsinking ("The New Capital"), and here extensive building oper ations produced an impressive physical emblem of the new State. In Jan. 1933, Japanese and Manchoukuoan forces invaded Jehol, the easternmost province of what is often known as Inner Mon golia, and soon added it to Pu Yi's domains. Conjointly with the Japanese, Manchoukuo has undertaken extensive projects for the economic development of its resources. Railways have been built rapidly. Currency and banking have been reorganized. Efforts have been made, sometimes successfully, to repress banditry.
The Japanese have poured capital into Manchoukuo in an at tempt to develop the land and to realize economic profit on their huge investment in military expenditure. They have sought to encourage Japanese immigration. They have endeavoured to knit Manchoukuo into an economic bloc with the other parts of their empire. Even so late as 1939, however, their success was in doubt. Some of Manchoukuo's products, including coal, compete with those of Japan. World economic conditions have diminished the demand for one of the former chief exports, products of the soya bean. Japanese immigration has not taken kindly to farming and has been confined chiefly to soldiers, businessmen, and Govern ment employees. Manchoukuo may long be an unprofitable in vestment and a heavy load on Japan's already heavily strained economy.