Twentieth Century Chronicle

Page 166

However, the challenges that the navy will face next, whether it is Britain, the United States and Germany, are all advanced industrial countries with strong industrial bases. If we are in conflict with these countries, we will not only be subject to industrial and technological blockade, but also lose one ship for every one we lose, while the other side can build two or three ships for every one they lose. In such a confrontation, Japan will undoubtedly lose.

Therefore, the navy can no longer continue with the previous model of building ships first and then upgrading industry. Instead, it must first improve its industrial base and then seek to replenish its warships. In short, Japan's future maritime competitors are true maritime powers and industrial giants. It can no longer expect to win in a single battle; it must consider a long-term confrontation, continuously replenishing its lost warships to force these maritime powers to acknowledge Japan's maritime rights. As for the idea of ​​completely eliminating the naval power of a maritime power, that is nothing but a child's fantasy.

Among the current maritime powers—Britain, France, Germany, the United States, and Japan—Japan is the weakest. Any attempt to use some extraordinary strategy to completely defeat the fleet of any one of these powers, even if a miracle occurs, will ultimately only result in Japan becoming cannon fodder for the others. Therefore, Japan's naval power will enter a phase focused on survival rather than victory, forcing other nations to recognize Japan's maritime rights. This will be the primary objective of the Japanese Navy going forward.

While the navy needs to upgrade Japan's industrial base, the people also need industry to provide more jobs to absorb the surplus labor force in rural areas. Once people can support themselves through labor, their dissatisfaction with the government will gradually disappear. This is what the navy considers the most urgent task at hand—developing heavy industry and energy sectors to enhance Japan's overall industrial capacity.

Upon hearing that the Navy's future goal was to maintain its existence rather than defeat a particular adversary, Matsukata Masayoshi couldn't help but glance at Ito Sukeyuki again. However, the Navy veteran remained calm and composed, which greatly surprised Matsukata Masayoshi.

Matsukata had not shown any talent in the war before, because he was a page to Shimazu Hisamitsu during the Tokugawa shogunate war. He did serve as the supervisor of the Satsuma army in the campaign against Choshu, monitoring the Satsuma army's execution of orders as a confidant of the lord. However, he stayed away from the battlefield after the outbreak of the Tokugawa shogunate war.

Even so, as a Satsuma samurai, he knew that an army needed an adversary to make targeted improvements, which was why the military immediately regarded Russia as an adversary after the Sino-Japanese War. The fact that the navy could not declare a fixed adversary and instead only aim to maintain its own existence was, frankly, quite lacking in samurai spirit, so he highly doubted how the navy had passed this decision.

However, the calmness of Ito Sukeyuki beside him made Matsukata Masayoshi feel that he had not misheard. He withdrew his gaze and looked at Hayashi Shin'ichi, saying, "If the Navy believes that Japan needs to improve its industrial capacity rather than a larger fleet in the future, I will naturally support it. Strengthening national power and reducing the burden on the people is certainly a good thing."

However, can the Navy truly be certain that Japan's defense will not encounter problems in the coming years? Furthermore, what is the initial scale of the Navy's call to prioritize the development of heavy industry and energy sectors? Could this really hinder the plan to nationalize private railways?

After a moment's thought, Lin Xinyi replied, "As long as the army doesn't provoke trouble on the mainland, we can completely join forces with China to deal with Russia's retaliation. Therefore, it's unlikely that Russia will start any new war in the East in the short term."

Regarding maritime threats, France and Germany are locked in a standoff, and Britain, needing to maintain peace in Europe while also defending its global interests, will only utilize the Anglo-Japanese Alliance to safeguard peace in East Asia, not undermine it. Until the Panama Canal is completed, the United States cannot simultaneously defend against both the Atlantic and Pacific Oceans.

Therefore, the next ten to twenty years will be the most peaceful period in East Asia. There may be some local conflicts, but no country will launch an attack on the Japanese mainland.

As for the Navy's initial goals for heavy industry and energy, the United States, with a population of less than 2200 million, produces more than 8 million tons of crude steel annually, while Japan, China, India, and the Southeast Asian region combined have a population of about 5 million, but produce less than 50 tons of crude steel annually.

Using the United States' steel production as a benchmark, the annual crude steel production needed to meet the needs of Japan's domestic industrialization would be at least 500 million tons; to meet the needs of industrialization in Japan and overseas regions, the annual crude steel production would be between 500 million and 1000 million tons.

To have a strong voice within the Asian Economic Community, Japan's annual crude steel production should not be less than a quarter of Asia's total annual crude steel output. Using the United States as a benchmark, Asia needs at least 2 million tons of crude steel annually to complete initial industrialization; this means Japan would need at least 5000 million tons of crude steel annually to be appropriate.

Matsukata Masayoshi was stunned for a moment, while Makino Nobuaki, who was standing next to him, couldn't help but interject, "Hayashi-kun, do you know what it means to produce 5000 million tons of crude steel per year?"

Chapter 576

Lin Xinyi certainly knew the reason for Makino Nobuaki's suspicion. At that time, almost 90% of Japan's steel production came from the government-run Yawata Steel Works. Although the war's demand for steel had led some private enterprises to enter the steel industry, they were all small workshops built on low-quality iron ore mines in Japan. Costs remained high and the quality was poor. Even the pig iron produced by the government-run Yawata Steel Works had to be processed again at the naval shipyard. Therefore, steelmaking was a money-losing industry that the government was afraid to engage in, and it was only under pressure from the military that it had no choice but to do so.

The government-run Yawata Steelworks was established in 1897 and officially started construction in November 1901. However, problems arose with the first batch of molten iron, and production did not get on track until 1904. The planned capacity at the time of construction was 60,000 tons per year, which increased to 90,000 tons in 1906. With the outbreak of war, capacity was expanded and steelmaking capacity was increased. In 1907, crude steel capacity was less than 100,000 tons, which was about one-third of the capacity of Wuhan Iron and Steel Company.

A plan to increase crude steel production from 10 tons to 500 million tons annually is still something to be boldly envisioned, but an annual crude steel production of 5000 million tons is clearly beyond Makino Nobuaki's capacity to accept. However, for Hayashi Shinichi, although he was not a professional in the steel industry in his previous life, he understands the future development path of the steel industry. Currently, the limiting factors for steel production are technology and resource integration capabilities. As for technology, perhaps we still have to wait, but in terms of resource integration, apart from the United States and Germany, almost all countries are still using agricultural-era thinking to develop industry.

After World War I shattered the remnants of feudal hierarchy in Europe, European countries began to re-plan and develop their industries using the mindset of the industrial age, thus creating the powerful industrial base of Nazi Germany and the Soviet Union. Those countries that were still mired in the old era were destroyed by the true industrial society in World War II.

Of course, Hayashi Shin-yi did not propose industrial development to strengthen militaristic Japan's industrial power; his aim was to prevent the further concentration of social resources in the upper echelons of society. The nationalization of private railways essentially strengthened the economic control of the Japanese upper class. When one percent of the population controls more than thirty percent of the nation's wealth, it becomes extremely difficult for the lower classes to escape exploitation, regardless of their actions. The society is left with no choice but to either revolt or wage war to bring in a new lower class; there is no other path forward.

Japan at present is not a country suitable for revolution because Japan has won a series of wars against foreign powers and has lost powerful rivals that threaten its survival. This means that the ruling class can focus all its efforts on internal affairs without worrying about any external threats. The victory in the anti-shogunate war was not due to the shogunate's weakness, but because the shogunate had to deal with domestic rebellions while also dealing with the threats from foreign powers.

Victories in foreign wars not only alleviated some of the discontent among the domestic populace but also provided a path for the lower classes to rise through the ranks. This allowed them to demonstrate their abilities in war and eventually ascend to the ruling class. This explains the growing power of the military; impoverished youths in rural areas had no other avenues for advancement besides military service. The improved education system meant that rural youths could no longer compete with urban youth in terms of education. The educational resources of the industrial age could not be obtained through individual effort or ordinary talent alone.

Furthermore, to change the course of Japan's progress, it is not enough to rely solely on one's position and past achievements. Without control over substantial social resources, even Meiji elders like Ito Hirobumi and Yamagata Aritomo would soon be swept away by the tides of time.

In fact, Ito Hirobumi's personal influence was far less than it had been during the period from the promulgation of the Meiji Constitution to the First Sino-Japanese War. During that time, he could not only forcibly promulgate the Imperial Constitution to purge political opponents who supported the People's Covenant Constitution from the government, but he could even dissolve the Diet to focus all his efforts on the war against the Qing. However, in this war, not only was his Choshu comrade Yamagata Aritomo obstructing him, but even Foreign Minister Komura Jutaro was able to deceive him on diplomatic issues. Even though Ito's analysis of the international situation gained the approval of many, he still failed to regain control of the war effort.

Hirobumi Ito's sense of powerlessness actually served as a warning to Shin-Yi Hayashi: don't expect to gain the support of others by taking the right path. The current ruling class in Japan does not decide who to support based on right or wrong; they only support politicians who can satisfy their own interests. That's why Takashi Hara was so eager to push for the nationalization of private railways, which marked the beginning of transforming the Seiyukai from a political club into an interest group.

To deal with such an interest group, the only option is to establish another interest group. The steel and energy industries are capital- and labor-intensive sectors. As long as the heavy industry supply chain is established, at least this alliance of the navy, government, and industry will be solidified.

Despite these thoughts, Lin Xinyi replied to Makino Nobuaki with no change in expression: "The cost of each ton of crude steel produced by the government-run Yawata Steel Works is close to 400 yen. A crude steel production capacity of 5000 million tons would require an investment of at least 200 billion yen."

However, based on the construction history of Wuhan Iron and Steel Company in China and various steel plants in Europe and America, the cost of building a steel plant is actually closely related to local infrastructure. In the Great Lakes region of the United States, where infrastructure is well-developed, the cost per ton of crude steel can be less than 160 yen. In contrast, in the East, where there is no infrastructure, the cost can double. If the lack of expertise among engineers and skilled workers is also a factor, then additional expenses will be incurred.

Therefore, the past construction experience of the government-run Yawata Steel Works and Hanyang Ironworks will become a valuable asset for the large-scale construction of the steel industry in the future. As long as we can absorb these lessons, and with the cheaper labor in the East compared to Europe and America, the cost per ton of crude steel production capacity will eventually be reduced to less than 200 yen. A crude steel production capacity of 5000 million tons would require an investment of 100 billion yen.

There's a saying in the West that Rome wasn't built in a day, and neither can a production capacity of 50 million tons of crude steel be built in a day. In 1860, the United States produced just over 10,000 tons of steel. By 1899, annual steel production had reached its first 10 million tons, but only six years later, U.S. steel production had surpassed its second 10 million tons.

This shows that new steelmaking technologies are making large steel mills increasingly common. We don't need to spend 40 years to follow the path the US steel industry took in its first 40 years, but we also won't be able to complete the US steel industry's development to its current state so quickly. Therefore, I believe that if we spend 20 years increasing crude steel production to 10 million tons, and then double that every ten years thereafter, then a 50 million ton crude steel production capacity can be built in less than 50 years.

The actual investment required is for 10 million tons of crude steel production over the first 20 years; subsequent capacity expansion can be achieved entirely through the steel mills' own profits. The investment for 10 million tons of crude steel capacity is only 2 billion yen, or 500 million yen every five years. If the nationalization of private railways is suspended, the funds for the first five-year investment plan will be sufficient.

Makino Nobuaki listened, somewhat stunned. There were quite a few boastful people in this era. For example, those mainland ronin liked to make grand promises, such as conquering Korea and Russia to establish a Greater Japanese Empire, or Japan and China joining forces to establish a Greater East Asia Alliance. However, these promises usually did not involve any specific plans. They just asked everyone to donate money to them or obey them. Although the Greater Japanese Empire and the Greater East Asia Alliance could not be seen, everyone could still see the leader finally rise to prominence.

Lin Xinyi proposed a steel production capacity of 5000 million tons. He thought the other party was just another big talker, but he didn't expect that this young man had actually thought about how to achieve it. He didn't know how to criticize him. After all, he was not in the steel industry and couldn't tell whether the plan was reasonable or not. He could only observe the expressions of Shibusawa and Matsukata.

Of the people in the room, Shibusawa was the one who knew the industry best, since he had been involved in real businesses since leaving the Ministry of Finance. However, Shibusawa had already communicated with Hayashi Shinji many times, so he wouldn't raise any more questions here.

Matsukata glanced at the silent Shibusawa and, drawing on his experience working in the Ministry of Finance, asked, "5 million yen, that's exactly the amount of government bonds the nationalization plan for private railways intends to issue. But where will Japan get so much iron ore and coal to smelt even 100 million tons of steel? Do you know how much gold it would cost to buy so much coal and iron ore from overseas? We can't just build a steel plant and leave it there to bask in the sun, can we?"

Faced with Matsukata's doubts, Hayashi Shin-yi confidently replied, "India has the best grade iron ore, even better than the ore selected from the Daye Iron Mine. And China, Southeast Asia, and Australia all have excellent coking coal. Therefore, as long as Japan, China, and India establish a coal and iron production community, Japan's steel industry will have its raw materials and markets solved."

The question raised by Elder Matsukata is indeed crucial: the gold standard in international trade. If intra-Asian trade were to also be settled in gold, fluctuations in international raw material prices would cause the collapse of the coal and iron ore production community among Japan, China, and India. This is because none of these three countries are major gold producers, and the majority of the world's gold reserves are in Europe and America. Increased production capacity in these three countries would not lead to an increase in the amount of gold in Asia; instead, it would result in finished product prices falling below those of raw materials.

Therefore, to establish a coal and iron production community among Japan, China, and India, it is necessary to bypass gold and the British pound for transactions. If we base the production and trade of the three countries on the needs of their people, then gold will become merely a transaction currency rather than wealth for the three countries. Only then can the coal and iron production community based on the resources and labor of the three countries operate steadily.

Based on this coal and iron production community, the rules established for coal and iron trade among the three countries can be extended to other trade, eventually forming a trade alliance among Asian countries, similar to commercial alliances in European history, and further similar to the German Customs Union.

Therefore, along with the establishment of the coal and iron production community among Japan, China, and India, we also need to establish close ties between the governments and economies of these three countries to create a pricing currency for internal trade. This currency will be based on the productivity of each country, with the ultimate goal of replacing the international gold standard in Asian intra-regional trade. Perhaps we can call it the Asian Currency.

Although Makino Nobuaki couldn't understand the steel planning proposal, he quickly grasped the Asian Yuan plan. After all, he had been a diplomat in London and had naturally heard the British say that the British Empire's hegemony had two loyal friends: the Royal Navy and the pound sterling.

As long as the pound sterling can still purchase goods worldwide, the hegemony of the British Empire will never be lost, and behind the pound sterling is the international gold standard. While other countries are racking their brains to find gold mines, London can simply turn on its printing presses and exchange worthless paper for gold. Faced with a country that can turn blank paper into a gold mine, who wouldn't feel fear?

Makino Nobuaki's composure crumbled once again; he suddenly realized that his composure wasn't as good as he thought. Matsukata Masayoshi's performance wasn't much better either. Lin Xinyi's words were beyond his comprehension. Having worked in the Ministry of Finance for decades, he was deeply ingrained in the gold standard. Upon suddenly hearing that Lin Xinyi planned to bypass the international gold standard and establish an Asian currency, he was momentarily stunned.

After a long pause, Matsukata Masayoshi finally spoke slowly, "Are you planning to get Japan to abandon the gold standard?"

Lin Xinyi shook his head and said, "Japan is not yet capable of setting the rules for world trade. Seventy percent of global trade takes place in Europe. Abandoning the gold standard will only cause Japan to lose trade opportunities with Europe and the United States."

However, this does not mean that Japan cannot resist the exploitation of my country by the international gold standard. Japan is a small country with scarce resources and a large population. If the Japanese want to solve their basic needs, they have to seek opportunities for foreign trade. However, the international gold standard severely restricts the competition between Japanese and foreign industries.

Because Japan's industries are not focused on expanding production, but on acquiring gold, if China and India cannot pay in gold, then no matter how much demand there is, Japan cannot provide it, since Japan's raw materials are purchased in gold, and without gold in return, it cannot continue production.

Similarly, the landowning classes in China and India didn't care about the price of products because they could export raw materials in exchange for gold, and then use that gold to buy goods from any country. Therefore, those in China and India who could afford gold wouldn't use Japanese goods because of their extremely low quality, while those who couldn't afford gold couldn't afford them.

The best way to solve this problem is to stop settling trade between China, India, and Japan in gold. This would allow Japan to leverage its cost-effectiveness to access the lower classes in China and India, thereby expanding its industrial production capacity and ultimately absorbing surplus rural labor, thus resolving current domestic social conflicts.

I believe this is far better than continuously increasing military spending and ultimately forcing the entire country down the path of war. Without providing opportunities for rural youth, Japan will either destroy peace in Asia through war or be destroyed by war itself—this is a foreseeable prospect.

Matsukata Masayoshi fell into deep thought, but Makino Nobuaki was clearly convinced, nodding in agreement: "From the perspective of solving domestic problems, rural issues are indeed the most dangerous. The nationalization of private railways will certainly not solve rural problems, but if Japan, China, and India could establish a coal and iron production community, that would be one way..."

On the carriage ride back, Matsukata Masayoshi sighed and asked Makino Nobuaki beside him, "What do you think of that young man?"

Makino Nobuaki was clearly a little distracted, and it wasn't until Matsukata Masayoshi asked him again that he came to his senses and said, "He's very good. At least he's not a boastful person. He also seems to have a good personality and doesn't have that arrogance that you'd expect from a top student at Tokyo University."

After a few moments of silence, Matsukata Masayoshi said, "He may not be arrogant, but he's certainly not lacking in arrogance. He's just a greenhorn, yet he's already plotting how to change the national policy. I've only seen someone like that in the late Edo period."

Makino Shinji opened his mouth but didn't know how to respond. Indeed, there were many ronin on the mainland who tried to change the country's policies, but there was not a single person who could devise a plan. Their biggest plan was nothing more than to remove someone from power and put someone else in power. They tried to change the direction of the country through personnel changes, but they could not come up with a feasible plan. They could only push the country forward with brute force.

Matsukata Masayoshi was clearly not asking Makino a question; he was merely speaking on a whim. He quickly answered himself, "Okubo, Saigo, Sakamoto, Kido, Itō—they were the same when they were young. If you can't keep up with them, you'll be left behind. Makino, have you made up your mind?"

It took Makino Nobuaki a while to understand Matsukata Masayoshi's question. He replied hesitantly, "The plan is good, but can the Navy really reach a consensus on it? Yamamoto, the Minister of the Navy, was previously planning the Eight-Eight Fleet with the Army. If the Navy can't reach a consensus, can Ito, the elder, really support his plan? Perhaps it would be more appropriate for him to spend ten years in the Navy before proposing such a plan."

After a few seconds of silence, Matsukata said, "There's a rumor in the Navy that Saigo once wanted to adopt a son before he passed away, but ultimately chose to promote Ito as a veteran of the Navy..."

After a pause, Matsukata continued, "This rumor is true. The son who wanted to be adopted by Saigo was Hayashi Shinichi. And it wasn't Saigo who changed his mind; it was Hayashi Shinichi who suggested that Saigo change his mind."

Makino Nobuaki's eyes widened instantly. This was a secret he was unaware of, which also showed that the relationship between the Satsuma faction within the Navy and the Satsuma faction on the government side had become estranged.

Matsukata had already drawn his conclusion: "Ito Sukeyuki will not sit idly by and watch Hayashi Shin'i fall into the trap he dug. If the Navy does not reach a consensus, he will not allow Hayashi Shin'i to speak on behalf of the Navy at all. In that case, Hayashi Shin'i will become a victim of the struggle between him and Yamamoto, and his reputation within the Navy will be ruined."

Therefore, a consensus should have been reached within the Navy that Minister of the Navy Yamamoto will withdraw the budget proposal for the Eight-Eight Fleet. This is why Ito had Hayashi Nobuyoshi appear before us today. The Navy has a new core, and the question is whether we should support him…”

Chapter 577

Makino Nobuaki already had the answer in his mind to Matsukata's question. Although he was regarded as the new generation leader of the Satsuma clique in the political world, this title could only fool outsiders and make people think that the Satsuma clique was still a whole. In reality, the internal connections of the Satsuma clique had become nothing more than a facade.

If the Satsuma clique's rallying cry before the fall of the Tokugawa shogunate was to overthrow it—a slogan chanted almost from the Battle of Sekigahara until the end of the Edo period—it was deeply ingrained in the hearts of the Satsuma people; the prevailing sentiment was that any misfortune they suffered was due to the shogunate's oppression. However, after the establishment of the Meiji Restoration government, the power to maintain Satsuma clique unity shifted to the allocation of official positions.

Those old members of the Satsuma clique did indeed miss Okubo, after all, without Okubo they would not have their current status. Their resentment towards Saigo Takamori was genuine. If Saigo Takamori had not launched an anti-government rebellion, the Choshu clique would not have been able to seize control of the Meiji Restoration government, and they would not be stuck in their current positions.

However, for the second generation of the Satsuma clique, Okubo and Saigo were merely history. They didn't benefit from Okubo's promotion, nor were they willing to bear the historical responsibility for Saigo. They were more concerned with how to advance further by standing on the shoulders of their fathers. They respected Matsukata Masayoshi, a senior figure, because Matsukata, as a senior figure, could provide them with a shortcut into politics. However, after Ito Sukeyuki formed his cabinet, there were also many younger members of the former Okubo faction who tried to gain Ito's approval.

Although Makino Nobuaki was regarded as Matsukata Genro's successor, his status did not only come from the older generation's high regard, but also from his close relationship with the Miyauchi faction. Therefore, everyone believed that he would definitely rise to prominence in the future, which is why they were willing to follow him.

However, the Navy has now appointed a Chief Representative and outlined its political goals. This means the Navy no longer needs the Satsuma clique in politics to defend its interests; they can now seek new supporters based on their own political stance. In other words, if they don't support the Navy's political line, the Navy will ignore them, even if they have Satsuma connections. Without the Navy's support, can the so-called Satsuma clique still exist?

Although Matsukata Masayoshi is a veteran, he doesn't actually have much say in the selection of the prime minister. Makino Nobuaki lacks the qualifications and prestige to form a cabinet, and if he partes ways with the navy, it will be even more difficult for him to ascend to the prime minister's seat. A politician who cannot sit on the prime minister's seat will find it difficult to gain the support of others. For example, Okuma and Itagaki were originally politicians on par with Ito, but after being ousted from the government by Ito, their power collapsed, and they could only turn to the Democratic Party's politics.

Makino Nobuaki knew very well that his reputation was far inferior to that of Okuma and Itagaki, and those who followed him were merely trying to use his influence to rise to the top. Once this goal could not be achieved, many of them would soon turn against him.

After much deliberation, Makino Nobuaki sighed and replied to Elder Matsukata, "If the new core of the Navy is indeed this young man, then his proposed 50-year, 5000-million-ton steel production capacity is not just empty talk. He has enough time to plan, and even if he only achieves part of the goal, it will be quite remarkable. Even if we don't have high hopes for him, others will probably follow suit."

Hearing this answer, Matsukata actually breathed a sigh of relief. His biggest worry was that Makino would choose to oppose Hayashi Nobuyoshi because of his youth, which would make him worry about Makino's future. Makino's ability to see clearly which of those below would choose showed that he was still clear-headed. He nodded and said, "If the Navy can truly unite under this political line, then it's inevitable that the Navy will surpass the Army in dominating defense policy. After all, to achieve the goal of 5000 million tons of steel production capacity, the resources of the entire country must be mobilized, and the Army will have to submit to this trend. Of course, we don't need to rush to express our opinion; let's see how the Navy acts first, and then follow the trend."

After a moment of silence, Makino Nobuaki said with some doubt, "There's just one thing I don't understand. Why would Yamamoto Kaisho bow down to a young man? If he really approves of this young man, why would he propose a military expansion plan with the army? Is this a trap set for the army?"

Masayoshi Matsukata: “…”

On Monday, March 23, during the morning cabinet meeting, Kato Takaaki and Hara Takashi clashed over the draft bill submitted by the Ministry of Home Affairs to nationalize private railways. Meanwhile, Education Minister Makino Nobuaki focused most of his energy on Minister of Education Yamamoto Kaishin. Makino had always wanted to head the Ministry of Foreign Affairs, but he had never received the opportunity; during the Ito cabinet, he could only hold the position of Education Minister.

Nobuaki Makino was actually quite skeptical that the plan to nationalize private railways could be stopped. Finance Minister Yoshiro Sakatani was recommended by Inoue Kaoru, who had significant interests in the nationalization of private railways. The Minister of Justice was Masahisa Matsuda of the Seiyukai, Yasuyuki Matsuoka was recommended by Taro Katsura, and Isaburo Yamagata was the nephew and adopted son of the elder Yamagata. At first glance, this cabinet was almost a joint cabinet formed by the Army and the Seiyukai.

Therefore, the only force that can truly prevent the nationalization of private railways is the Army. However, the Army is trying to use the divisional expansion plan as a bargaining chip with the Seiyukai. Why would they suddenly stand up to oppose it?

As Makino Nobuaki pondered this problem, he observed what Yamamoto Kaisei would do. He felt that even with himself, Yamamoto, and Kato, the three of them would find it difficult to stop the nationalization of private railways from passing. And once it passed the cabinet meeting, the Diet would be dominated by the Seiyukai.

The quarrel between Hara Takashi and Kato Takaaki can be seen as an internal strife within the Democratic Party, so the ministers of the Army faction were happy to watch the show. Although Saionji Kinmochi was the president of the Seiyukai, he really had no ability to suppress Hara Takashi. As prime minister, he also lacked his own policy ideas and could only rely on Hara Takashi to plan for him and accept Ito Hirobumi's political guidance.

Therefore, Saionji could only remain silent in the face of Hara Kei and Kato Takaaki's argument, which was quite in line with his background as a court noble. After all, apart from Iwakura Tomomi and Konoe Atsumaro, few court nobles in Japanese history were interested in politics. However, someone interrupted Hara Kei and Kato Takaaki's argument, and everyone's attention quickly turned to Yamamoto Kaisō, who was tapping the table with his hand.

The Minister of the Navy, with a gloomy expression, said to Prime Minister Saionji, "Before discussing the nationalization of private railways, shouldn't we first decide whether to withdraw troops or continue the war? If we are preparing to go to war with China, where will we get the money to nationalize private railways? The country should prioritize war funding."

Seeing this, Rikusō Terauchi Masatake also chimed in, "Yamamoto Kaisō is right. If the Chinese do not acknowledge the Empire's contributions in the war and attempt to seize the rights that the Empire took from Russia, then appropriate punishment of China is inevitable. The Army does not oppose the direction of nationalizing private ironworks, but it should be placed after national defense and security."

Finance Minister Yoshiro Sakatani had no choice but to state his position: "The war cannot continue. At the very least, the people must be given a chance to catch their breath, otherwise national bankruptcy is imminent. The expenses for this war have already exceeded 12 billion yen. If we continue to fight China, we will not be able to stop even if we spend another 12 billion yen. Countries will not be able to continue buying Japanese government bonds. Does the army intend to go into battle with bamboo spears?"

Terauchi Masatake was not very interested in continuing the war, and he took the opportunity to say: "Even if we do not fight China now, the fact that the Chinese despise the Empire's interests on the continent makes a war between Japan and China inevitable in the future. Therefore, the army and navy must be expanded in order to deter the Chinese ambitions."

Yamamoto remained silent, watching the Army Minister and Finance Minister haggle. Only when the Minister of War, Terauchi, broke down the one-time military expansion plan into a multi-phase expansion plan did he suddenly speak again: "I'm not familiar with the Army's situation, but the Navy's combat capability takes time to develop. Therefore, we plan to complete the Eight-Eight Fleet project within five years. Including supporting facilities and other expenditures, the total will be approximately 5 million yen. The Cabinet should approve the Eight-Eight Fleet project first, and then discuss other budget proposals; otherwise, the Navy will firmly oppose other budget proposals..."

Terauchi Masatake looked at Yamamoto Gonnohyōe with a stunned expression. He couldn't figure out what the Navy was up to. Did they want to pass the Navy budget, or were they planning to sabotage the current cabinet? To be honest, it looked more like they had stabbed the Army in the back. He had worked so hard to negotiate with the Minister of Finance, only to find out that the Navy wanted to prioritize the Navy?

Hara Takashi, who hadn't wanted to provoke the navy, finally spoke up, "Minister of the Navy, aren't your words a bit too domineering? The Empire has just defeated Russia and formed a second alliance with Britain. At this time, who can threaten the Japanese mainland? Is the Eight-Eight Fleet just to guard against Chinese fishing boats? We are discussing the future of the nation, not arguing."

Terauchi finally realized what was happening and, for the first time, took the government's side to persuade the Navy Minister, saying, "The Eight-Eight Fleet isn't unnecessary, but Japan cannot afford such a massive shipbuilding program right now..."

Minister of the Navy Yamamoto coldly interrupted him, saying, "How interesting. The Navy says it wants to downsize, and the Army thinks this is not considering the country's interests. Now the Navy demands to defend the country, and the Army thinks this is not considering the country's interests again. Is the Army so concerned about the Navy's affairs because it plans to send someone to serve as Minister of the Navy?"

Faced with the unreasonable Yamamoto Gonnohyōe, Terauchi Masatake, though his temples throbbed with anger, remained silent under the restraint of reason. He did not want to become the culprit who stirred up discord between the army and navy. Of course, Terauchi was willing to swallow his anger because he knew that the collapse of the Ito cabinet was inextricably linked to the army, and it was normal for the navy to harbor resentment.

Makino Nobuaki suddenly realized that Navy Minister Yamamoto indeed didn't intend to continue with the Eight-Eight Fleet proposal; otherwise, he wouldn't have offended everyone else. He wasn't expecting the budget to pass anyway; he was just using the proposal to block the nationalization of private railways. Having money to buy private railways but not to build a navy was clearly a good excuse to incite public sentiment.

Although Yamamoto Gonnohyōe was initially opposed to the nationalization of private ironworks out of resentment, the silence in the meeting room suddenly made him feel much better. Previously, he had to consider various factors to secure the shipbuilding budget, but now that he had set aside those concerns, others were starting to worry about him.

Although Yamamoto Gonnohyōe harbored considerable resentment towards Hayashi Nobuyoshi, he had to admit that Hayashi understood politics far better than he did. After the Navy abandoned its shipbuilding budget, it gained the upper hand in the cabinet. Neither the Seiyūkai nor the Army could pass their political proposals without the Navy's support; they would now have to offer incentives to win over the Navy.

Discussions on the nationalization of private railways were temporarily suspended. After the meeting, Kato Takaaki, who had always opposed the feudal clique politics, unusually extended his greetings to Yamamoto Kaisho. Kato Takaaki admired British-style politics, and he opposed the feudal clique politics because it prioritized interpersonal relationships, disregarding right and wrong and focusing solely on connections.

As a member of the Democratic Party, Kato Takaaki rose to power with the support of the Mitsubishi zaibatsu, and in terms of background, he was from the Mutsu Munemitsu faction. Therefore, Kato Takaaki himself was a representative figure of political-business collusion. His so-called anti-feudal politics was actually an anti-power movement against the current ruling faction in order to seek the Democratic Party's control of government affairs.

Kato Takaaki's purpose in joining the Saionji Cabinet was to unite the Seiyukai to expel the feudal clique forces from the government. However, Hara Takashi's plan to nationalize private railways represented the Seiyukai's move towards feudal clique politics. In addition, this plan also damaged the shipping interests of the Mitsubishi Group behind him, so he naturally had to express his opposition.

However, within this short month, Kato's mindset also changed. He realized that after the opposition party became the ruling party, it would not achieve its ideal of expelling the clan politics. The first priority of the opposition party after becoming the ruling party was to ensure its long-term rule. Thus, the former party comrades became obstacles to the ruling party's long-term rule. On the contrary, the clan forces could become allies of the ruling party because the clans had no political ideology and only wanted to protect their existing interests.

Therefore, in foreign policy and domestically in the nationalization of private railways, Kato found himself utterly without any allies within the cabinet. His opposition, besides isolating himself, did nothing to hinder Hara Takashi's push for the nationalization plan. Had it not been for Yamamoto Kaisho's meddling today, the draft would have passed with majority support, leaving him, the minister, helpless.

Although Yamamoto Gonnohyōe did not hold Kato Takaaki in high regard, given that Kato's political views had harmed both the Navy and the Satsuma clique, he did not reject the other party's overtures. After all, he had not given anything in return, and there was no harm in cultivating relations with the second-largest party in the House of Representatives.

In contrast to Yamamoto Gonnohyōe's rising popularity, Army Minister Terauchi Masatake left with dissatisfaction. He quickly went to the General Staff Headquarters to meet with Yamagata Aritomo and report on the changes at today's cabinet meeting. Terauchi concluded by complaining, "Has Yamamoto become senile? He had previously reached an agreement with us on the military expansion plan, but now he's stabbed us in the back. Does he think the Navy can bypass the Army and fund shipbuilding independently?"

Yamagata Aritomo silently placed a small booklet in front of the temple. Facing the temple's probing gaze, he said somewhat wearily, "This is the content of the memorial that Ito submitted to His Majesty. His Majesty asked me to take a look and then give my advice."

Terauchi Masatake then picked up the booklet and began to read it. At first, he read it very quickly, almost skimming through it, but soon he turned back and began to read it carefully from the beginning. It took him a full half hour to read the several thousand words, and he even planned to read it again. However, Yamagata gently tapped the table, and he had to put the booklet down.

Terauchi looked up at Yamagata and said seriously, "The Navy's analysis of the two opposing worlds is indeed very interesting, but I still don't understand why Russia and Germany would join the anti-Eurocentric new world. Even if they want to oppose Britain, France and the United States, what they should be fighting for is the dominance of the world, not the liberation of the Eastern peoples, right?"

Yamagata Aritomo calmly replied, "Either the navy withheld some information when reporting, or His Majesty omitted some details when sending it to me. I don't believe the navy would submit a report to His Majesty without considering this issue."

Terauchi nodded. He thought Yamagata's guess was reasonable. Judging from the analysis of the two worlds, it was clear that the author had thought it through carefully. He had not found any contradictions in this matter. Therefore, the author would not have given a vague explanation for Russia and Germany's joining the New World. Otherwise, he would not have been able to convince His Majesty.

He quickly pondered for a moment and said, "I feel like I've heard the name Lin Xinyi somewhere before. Which class was he in the Marines...?"

Yamagata Aritomo interrupted his thoughts and pointed out, "He was a member of the 32nd Marine Class. It's normal that you've heard of him. He wrote the article on benevolence and courtesy that His Majesty praised. But that's not the point. The point is that he also has a Chinese pseudonym, Lin Feng."

Terauchi Masatake felt the name Lin Feng sounded familiar, but he couldn't quite place where he'd heard it before. Then Yamagata Aritomo continued, "You were in Korea before, so you might not know, but Lin Feng is the 'Bengal Tiger' the British called him, the commander of the Chinese Expeditionary Force in Tibet, the famous Eastern general who captured two British generals..."

Chapter 578

Terauchi Masatake was speechless upon hearing this shocking news. After a long while, he said something completely irrelevant: "If Lin Feng is Lin Xinyi, then that's good news for Japan."