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First Published in 1981. Contrary to Chairman Mao's assertion that political power comes from the barrel of a gun, this study contends that political power in China in the early 1920s emanated from the boardrooms of foreign banks. The author's interest in the way financial concerns have shaped foreign policy began with the discovery that the Lloyd George government attempted to influence the American government's policy on the British war debts by offering concessions concerning the renewal of the Anglo-Japanese Alliance. This study should provide understanding concerning the causes of Chinese bitterness as well as suggest the conflicts experienced by diplomats in balancing public and private interests.