China is the land that still employs manual labor for production and has not yet entered the first stage of industrial evolution, while in Europe and America the second stage is already reached. So China has to begin the two stages of industrial evolution at once by adopting the machinery as well as the nationalization of production. In this case China will require machinery for her vast agriculture, machinery for her rich mines, machinery for the building of her innumerable factories, machinery for her extensive transportation systems and machinery for all her public utilities. Let us see how this new demand for machinery will help in the readjustment of war industries. The workshops that turn out cannon can easily be made to turn out steam rollers for the construction of roads in China. The workshops that turn out tanks can be made to turn out trucks for the transportation of the raw materials that are lying everywhere in China. And all sorts of warring machinery can be converted into peaceful tools for the general development of China's latent wealth. The Chinese people will welcome the development of our country's resources provided that it can be kept out of Mandarin corruption and ensure the mutual benefit of China and of the countries coöperating with us.

It might be feared by some people in Europe and America that the development of China by war machinery, war organization and technical experts might create unfavorable competition to foreign indus-tries. I, therefore, propose a scheme to develop a new market in China big enough both for her own products and for products from foreign countries. The scheme will be along the following lines:

I. The Development of a Communications System.

(a) 100,000 miles of Railways.

如当整理战后工业之际，无处可容此一年二百一十九万万之贸易，则其工业必停，而投于是之资本乃等于虚掷，其结果不惟有损此诸生产国之经济状况，即于世界所失亦已多矣。

凡商业国，无不觅中国市场，以为消纳各国余货之地。然战前贸易状态，太不利于中国，输入超过输出，年逾美金一万万。循此以往，中国市场不久将不复能销容大宗外货，以其金钱、货物俱已枯竭，无复可持与外国市易也。所幸中国天然财源极富，如能有相当开发，则可成为世界中无尽藏之市场；即使不能全消费此一年二百十九万万之战争生产剩余，亦必能消费其大半无疑。

中国今尚用手工为生产，未入工业革命之第一步，比之欧美已临第二革命者有殊。故于中国两种革命必须同时并举，既废手工采机器，又统一而国有之。于斯际中国正需机器，以营其巨大之农业，以出其丰富之矿产，以建其无数之工厂，以扩张其运输，以发展其公用事业。然而消纳机器之市场，又正战后贸易之要者也。造巨炮之机器厂，可以改制蒸汽辘压，以治中国之道路；制装甲自动车之厂，可制货车以输送中国各地之生货；凡诸战争机器，一一可变成平和器具，以开发中国潜在地中之富。此种开辟利源之办法，如不令官吏从中舞弊，则中外利益均沾，中国人民必欢迎之。

欧美人或有未之深思者，恐以战争时之机器、战争时之组织与熟练之技工开辟中国利源，将更引起外国工业之竞争。故予今陈一策，可使中国开一新市场，既以销其自产之货，又能销外国所产，两不相妨。其策如下：

甲   交通之开发。

子   铁路一十万英里。

(b)   1,000,000 miles of Macadam Roads.

(c)   Improvement of Existing Canals.

(1) Hangchow-Tientsin Canals.

(2) Sikiang-Yangtze Canals.

(d)   Construction of New Canals.

(1) Liaoho-Sunghwakiang Canal.

(2) Others to be projected.

(e)   River Conservancy.

(1) To regulate the Embankments and Channel of the Yangtze River from Hankow to the Sea thus facilitating Ocean-going Ships to reach that port at all seasons.

(2) To regulate the Hoangho Embankments and Channel to prevent floods.

(3) To regulate the Sikiang.

(4) To regulate the Hwaiho.

(5) To regulate various other rivers.

(f)   The Construction of more Telegraph Lines and Telephone and Wireless Systems all over the Country.

II.   The Development of Commercial Harbors.

(a)   Three largest Ocean Ports with future capacity equalling New York Harbor to be constructed in North, Central and South China.

(b)   Various small Commercial and Fishing Harbors to be constructed along the Coast.

(c)   Commercial Docks to be constructed along all navigable rivers.

III.   Modern Cities with public utilities to be constructed in all Railway Centers, Termini and alongside Harbors.

IV.   Water Power Development.

V.   Iron and Steel Works and Cement Works on the largest scale in order to supply the above needs.

VI.   Mineral Development.

VII.   Agricultural Development.

VIII.   Irrigational Work on the largest scale in Mongolia and Sinkiang.

IX.   Reforestation in Central and North China.

X. Colonization ^[1] in Manchuria ^[2] , Mongolia, Sinkiang, Kokonor ^[3] , and Tibet.

丑   碎石路一百万英里。

寅   修浚现有运河：

（一）杭州、天津间运河。

（二）西江、扬子江间运河。

卯   新开运河：

（一）辽河、松花江间运河。

（二）其他运河。

辰   治河：

（一）扬子江筑堤浚水路，起汉口，迄于海，以便航洋船直达该港，无间冬、夏。

（二）黄河筑堤，浚水路，以免洪水。

（三）导西江。

（四）导淮。

（五）导其他河流。

巳   增设电报线路、电话及无线电等，使遍布于全国。

乙   商港之开辟。

子   于中国中部、北部、南部各建一大洋港口，如纽约港者。

丑   沿海岸建种种之商业港及渔业港。

寅   于通航河流沿岸建商场船埠。

丙   铁路中心及终点并商港地设新式市街，各具公用设备。

丁   水力之发展。

戊   设冶铁、制钢并造士敏土 ^[4] 之大工厂，以供上列各项之需。

己   矿业之发展。

庚   农业之发展。

辛   蒙古、新疆之灌溉。

壬   于中国北部及中部建造森林。

癸   移民于东三省、蒙古、新疆、青海、西藏。

If the above program could be carried out gradually, China will not only be the "Dumping Ground" for foreign goods but actually will be the "Economic Ocean" capable of absorbing all the surplus capital as quickly as the Industrial Nations can possibly produce by the coming Industrial Revolution of Nationalized Productive Machinery. Then there will be no more competition and commercial struggles in China as well as in the world.

The recent World War has proved to Mankind that war is ruinous to both the Conqueror and the Conquered, and worse for the Aggressor. What is true in military warfare is more so in trade warfare. Since President Wilson has proposed a League of Nations to end military war in the future, I desire to propose to end the trade war by coöperation and mutual help in the Development of China. This will root out probably the greatest cause of future wars.

The world has been greatly benefited by the development of America as an industrial and a commercial Nation. So a developed China with her four hundred millions of population, will be another New World in the economic sense. The nations which will take part in this development will reap immense advantages. Furthermore, international coöperation of this kind cannot but help to strengthen the Brotherhood of Man. Ultimately, I am sure, this will culminate to be the keystone in the arch of the League of Nations.

In order to carry out this project successfully I suggest that three necessary steps must be taken: First, that the various Governments of the Capital-supplying Powers must agree to joint action and a uni- fied policy to form an International Organization with their war work organizers, administrators and experts of various lines to formulate plans and to standardize materials in order to prevent waste and to facilitate work. Second, the confidence of the Chinese people must be secured in order to gain their coöperation and enthusiastic support. If the above two steps are accomplished, then the third step is to open formal negotiation for the final contract of the project with the Chinese Government. For which I suggest that it be on the same basis as the contract I once concluded with the Pauling Company of London, for the construction of the Canton-Chungking Railway, since it was the fairest to both parties and the one most welcomed by the Chinese people, of all contracts that were ever made between China and the foreign countries.

如使上述规划果能逐渐举行，则中国不特可为各国余货消纳之地，实可为吸收经济之大洋海，凡诸工业国其资本有余者，中国能尽数吸收之。不论在中国抑在全世界，所谓竞争、所谓商战者，可永不复见矣。

近时世界战争，已证明人类之于战争不论或胜或负，均受其殃，而始祸者受 害弥重。此理于以武力战者固真，于以贸易争者尤确也。威尔逊总统 ^[5] 今既以国际同盟防止将来之武力战争，吾更欲以国际共助中国之发展，以免将来之贸易战争。则将来战争之最大原因，庶可从根本绝去矣。

自美国工商发达以来，世界已大受其益。此四万万人之中国一旦发达工商，以经济的眼光视之，何啻新辟一世界？而参与此开发之役者，亦必获超越寻常之利益，可无疑也。且此种国际协助，可使人类博爱之情益加巩固，而国际同盟亦得借此以巩固其基础，此又予所确信者也。

欲使此计划举行顺利，余以为必分三步以进：第一，投资之各政府，务须共同行动，统一政策，组成一国际团，用其战争时任组织、管理等人材及种种熟练之技师，令其设计有统系，用物有准度，以免浪费，以便作工。第二，必须设法得中国人民之信仰，使其热心匡助此举。如使上述两层，已经办到，则第三步，即为中国政府开正式会议，以议此计划之最后契约。而此种契约，吾以为应取法于曩者吾与伦敦波令公司所立建筑广州重庆铁路合同，以其为于两方最得宜，而于向来中国与外国所结契约中为人民所最欢迎者也。

And last but not least, a warning must be given that mistakes such as the notorious Sheng Shun Hwai's nationalized Railway Scheme in 1911 must not be committed again. In those days foreign bankers entirely disregarded the will of the Chinese people, and thought that they could do everything with the Chinese Government alone. But to their regret, they found that the contracts which they had concluded with the Government, by heavy bribery, were only to be blocked by the people later on. Had the foreign bankers gone in the right way of first securing the confidence of the Chinese people, and then approaching the Government for a contract, many things might have been accomplished without a hitch. Therefore, in this International Project we must pay more attention to the people's will than ever before.

If my proposition is acceptable to the Capital-supplying Powers, I will furnish further det ails.

吾人更有不能不预为戒告者，即往日盛宣怀 ^[6] 铁路国有之覆辙，不可复蹈也。当时外国银行家不顾中国之民意，以为但与中国政府商妥，即无事不可为；及后乃始悔其以贿成之契约，终受阻于人民也。假使外国银行先遵正当之途，得中国人民之信仰，然后与政府订契约，则事易行，岂复有留滞之忧？然则于此国际计划，吾人不可不重视民意也。

如资本团以吾说为然，吾更当继此有所详说。

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