The 1890s saw the intensification of rivalries among
Qing China, Japan, and Russia—with the lesser interests of Great Britain, Germany, and the United States—over paramount influence in
Manchuria. For Russia, the region of the
Liaodong Peninsula was of particular interest as one of the few areas in the region that had the potential to develop ice-free ports. These rivalries came to their first armed conflict during the
Sino-Japanese War of 1894–1895, which resulted in Japan's resounding victory over the Qing Dynasty, a contest that involved a battle over the port of
Lushun (later called Port Arthur) near what would become Dalian or Dalniy. The engagements on the Liaodong Peninsula between Japanese and Chinese troops confirmed to the Japanese the strategic importance of the region, and in particular the strategic positioning of the region around Dalian. Though Japan seized control over the peninsula and was awarded it in the subsequent
Treaty of Shimonoseki (1895), it was forced to retrocede it to Qing China following the diplomatic pressure of Russia, Germany, and France, the so-called
Triple Intervention of 1895. This would contribute to the growing and bitter rivalry between Japan and Russia while also paving the way for the Russian seizure of the region three years later. In 1897 Russia signed with Qing China a secret agreement for the establishment under Russian guidance of the Chinese Eastern Railway. On December 15, 1897, Russia, fearing that without decisive action it might lose its chance to seize the port of Dalian to another imperial power such as Germany, which earlier that year had taken control of
Qingdao, had its fleet steam into Dalian harbor. On March 27, 1898, Russia signed the
Pavlov Agreement with China, which granted Russia a 25-year lease on Dalian and Lushun and exclusive right to lay a branch of the Chinese Eastern Railway to them—what would become the
South Manchurian Railway. At first, the flags of both China and Russia were raised over the city, something that assuaged the anger of some local Chinese. Within a few weeks, however, the Chinese ensign was no longer flying. ==Development==