The Aftermath of the Portsmouth Treaty

When the Portsmouth Treaty was signed in 1905, ending the Russo-Japanese War, the Japanese public reacted with outrage against Prime Minister Katsura Taro’s government, blaming them for diplomatic failure. Political parties in the lower house demanded his resignation. Recognizing the untenable situation, Katsura stepped down in January 1906, and Emperor Meiji appointed Saionji Kinmochi, president of the Rikken Seiyukai party, to form a new cabinet.

Saionji faced immediate financial challenges. The war had left Japan with staggering national debt and urgent postwar expenses. With time pressing, his cabinet submitted Katsura’s previously prepared budget of over 600 million yen to the Diet, which ultimately passed. This set the stage for a period of intense political and economic transformation in Japan.

The Railway Nationalization Controversy

In March 1906, the government proposed nationalizing private railways, sparking constitutional debates. Foreign Minister Kato Takaaki resigned in protest, calling it an unconstitutional seizure of private property that would burden the state. Newspapers attacked the cabinet, but the government pressed forward.

The lower house passed the railway nationalization bill after heated debates that turned physical, with several legislators injured in scuffles. The final compensation package totaled over 400 million yen – nearly double the original construction costs – paid through government bonds with 5% interest. To appease business interests, the government guaranteed twenty years of payments based on 1901-1903 profit averages.

This episode revealed growing tensions between Japan’s modernization goals and constitutional governance, while demonstrating the government’s determination to control strategic infrastructure.

Fiscal Challenges and Political Maneuvering

By December 1906, when the Diet reconvened, the government submitted a new budget of 610 million yen, with nearly one-third allocated to military spending. As taxes increased, public discontent grew. Transportation Minister Shimpei Goto’s request for additional railway funds caused conflict with Finance Minister Sakatani Yoshiro until a compromise was reached.

The financial strain became severe enough that elder statesman Inoue Kaoru, renowned for fiscal expertise, warned the cabinet might need to resign over budget mismanagement. The emperor ultimately accepted the resignations of both finance and transportation ministers to resolve the crisis.

The 1908 Elections and Political Instability

During May 1908 elections, the Rikken Seiyukai won 189 seats, securing a majority. Surprisingly, Saionji resigned in July, citing health reasons though observers attributed it to financial difficulties and foreign policy criticism. He recommended Katsura Taro as his successor.

Katsura returned as prime minister, also serving as finance minister. Learning from previous failures, he reduced taxes by 100 million yen in his budget. However, proposed salary increases for officials sparked new conflicts with the Seiyukai, who wanted agricultural tax cuts instead. Negotiations produced a compromise, but media attacks highlighted unresolved fiscal issues.

Japan’s Expansion in Korea

Japan’s foreign policy became increasingly assertive after the Russo-Japanese War. The 1905 Japan-Korea Protectorate Treaty established Japanese control over Korean foreign affairs, with Ito Hirobumi appointed as Resident-General. When Korean Emperor Gojong sent secret envoys to the 1907 Hague Peace Conference seeking international support, Japan forced his abdication.

After Korean resistance fighters assassinated Ito in Harbin in 1909, Japan accelerated annexation plans. The pro-Japanese Ilchinhoe organization campaigned for union, arguing Koreans would become “citizens of a strong nation.” In August 1910, the Japan-Korea Annexation Treaty was signed, making Korea a Japanese colony with General Terauchi Masatake as first Governor-General.

Manchurian Entanglements and International Tensions

Postwar arrangements saw Japan establish the South Manchuria Railway Company and Kwantung Leased Territory administration, creating friction with China over:
– Forest rights along the Yalu River
– Fushun coal mines
– Jiandao (Gando) territory disputes
– Railway concessions

When American Secretary of State Philander Knox proposed internationalizing Manchurian railways in 1909, Japan and Russia jointly rejected the plan, drawing the former adversaries closer together.

Shifting Alliances: The Anglo-Japanese Alliance

The 1905 renewal of the Anglo-Japanese Alliance expanded cooperation to include:
1. Extension to British India
2. British recognition of Japan’s special interests in Korea
3. Mutual defense if either faced attack by multiple powers
4. Ten-year duration

By 1911, growing U.S.-Japan tensions prompted Britain to revise the treaty, removing obligations regarding Korea and exempting cases where arbitration treaties existed (specifically referencing the U.S.). This adjustment reflected Britain’s delicate balance between its Japanese alliance and American relations.

U.S.-Japan Relations: From Friendship to Friction

Initially warm after Commodore Perry’s opening of Japan, relations soured over:
– 1906 San Francisco school segregation of Japanese children
– The 1907-1908 “Gentlemen’s Agreement” restricting Japanese labor immigration
– Competing interests in Manchuria and the Pacific

President Theodore Roosevelt’s 1907 Great White Fleet world tour, including Pacific stops, heightened tensions despite diplomatic exchanges affirming mutual interests in China.

The End of the Meiji Era

Emperor Meiji’s death in July 1912 after a 45-year reign marked the end of an era that transformed Japan from feudal isolation to world power status. His funeral saw extraordinary displays of loyalty, including General Nogi Maresuke’s ritual suicide.

The political aftermath revealed growing civilian-military tensions when Army Minister Uehara Yusaku resigned over denied troop increases, toppling Saionji’s cabinet. Katsura’s return sparked unprecedented public protests until his 1913 resignation, signaling the Diet’s rising influence.

Legacy of a Transformative Decade

The 1905-1912 period established Japan as:
– An imperial power controlling Korea and Manchuria
– A nation balancing constitutional government with military influence
– An industrializing economy facing fiscal challenges
– A Pacific power navigating complex international relations

These developments set the stage for Japan’s 20th century trajectory, blending Western institutional models with Asian empire-building amid rising nationalist sentiment and international tensions. The political and economic patterns established during these years would profoundly influence Japan’s path to World War II and beyond.