(铁良) in 1906 After returning to China, Yuan was appointed to a post in
Zhejiang, but he did not take it up. The
First Sino-Japanese War officially began on 1 August 1894 with Japan declaring war on China, and he spent the conflict assisting with the provision of supplies to the Chinese forces in Korea and northeast China, at the request of Li Hongzhang. At this point Yuan also had a positive reputation outside of China, due to his actions in Korea.
Japanese Prime Minister Itō Hirobumi had asked Li Hongzhang about Yuan during their negotiations at the end of the war, and remarked that he was talented. Shortly before the
Treaty of Shimonoseki ended the Sino-Japanese war in April 1895,
U.S. Secretary of State John W. Foster attempted to convince Yuan to lead a military coup against the Qing dynasty. After China's best force, the Huai Army, had been defeated in the war with Japan, the Qing court was willing to create units that were organized entirely along the European model. There were increasing calls after the war to reorganize the Chinese armed forces. Around this time, Yuan had the confidence of senior Qing officials, including
Ronglu, the Minister of War, and
Yikuang, Prince Qing. Several high-ranking officials, including Yikuang,
Weng Tonghe, and
Wang Wenshao, signed
memorials to the throne in the fall of 1895 asking the
Guangxu Emperor to appoint Yuan to oversee military modernization. He was known for having organized Korean forces, defeating the Japanese during the 1880s, and displaying management skills as a logistics officer during the most recent war. After a private meeting with the emperor on 2 August 1895 he was made a member of the council for military issues. Within days, he presented the emperor with a lengthy document on his proposal for creating a Western-style army under centralized Qing control. On 8 December 1895 Yuan was appointed as the commander of the New Army, which was created on the basis of the Pacification Army that had been raised during the war at the Huai Army training camp in
Xiaozhan, near
Tianjin. Yuan immediately set about organizing the
brigade-sized New Army, and spent the next three years developing a force at Xiaozhan that was different from any previous Chinese military, being not only equipped but also organized along the lines of the
German Army, and funded by the central government. Particular attention was given to the recruitment and training of the soldiers and officers. It was organized into combat arms and several technical branches, and a
staff officer system was also set up with German assistance. The unit was equipped with German weapons and supplies. The New Army became the basis for his rise to power, and in addition to Yuan, the brigade's officer corps included many other future leaders, including several
presidents of the Republic of China and provincial governors. Already in 1896, Yuan's troops received praise from Ronglu, and in July 1897 Yuan was made provincial chief justice of Zhili. The Qing court at the time was divided between progressives under the leadership of the
Guangxu Emperor and conservatives under
Empress Dowager Cixi, who had withdrawn to her Summer Palace and allowed the emperor to lead the government. Between 1895 and 1898 the emperor, in want of military support for his reform efforts, had several meetings with Yuan, who was a member of Society for the Study of National Strengthening, a reformist group initiated by
Kang Youwei in response to China's defeat in the First Sino-Japanese War. At the same Yuan maintained good relations with the conservative Manchu princes, notably Ronglu. In June 1898 the Guangxu Emperor launched the
Hundred Days' Reform and started issuing dozens of edicts to make changes to China's culture, economy, military, and education system, with the support of reformists such as
Kang Youwei and
Liang Qichao. He encountered a lot of resistance from the conservatives, who wanted Cixi to return, and his supporters, having no military power of their own, decided to ask Yuan for help. Yuan's role during the events continues to be debated by historians. The generally accepted facts are that the reformist
Tan Sitong met with Yuan in Beijing on 18 September 1898, soliciting military assistance for a coup plan to control or assassinate Ronglu and Cixi. Yuan betrayed the reformists by informing Ronglu of the plot in Tianjin. On the morning of 21 September, Cixi launched a coup that ended the Hundred Days' Reform and placed the Guangxu Emperor under house arrest. The more contested aspects concern the timing, causes, and consequences of Yuan’s disclosure. According to his diary, written shortly after the events and published posthumously by his secretary Zhang Yilin, Yuan visited Ronglu on 20 September but did not reveal the reformists’ plot until the following morning, around the same time as—or even after—Cixi’s coup; they only learned of her coup that night. The traditionally prevailing view, however, holds that Yuan disclosed everything on 20 September, that Ronglu traveled to the Summer Palace to inform Cixi that same night, and that she returned to the Forbidden City the following morning to launch a preemptive crackdown. Yuan's conversation with Ronglu has therefore been cited as the cause of the reform's failure. More recent evidence has led some scholars to conclude that Cixi’s crackdown had already been planned before Yuan’s meeting with Ronglu, or even that news of her coup caused Yuan to confess on the night of 21 September, fearing that he might be implicated by the reformists. Nevertheless, Yuan’s report to Ronglu is generally credited with sealing Tan Sitong’s fate: Tan’s name did not appear in the initial arrest order on the morning of 21 September, but he was arrested that night, suggesting that Cixi had not initially been aware of his role in the plot. Yuan was appointed as acting
Viceroy of Zhili and
Beiyang Trade Minister for ten days after the coup, which may have been an effort by the conservative faction to keep him away from his troops at Xiaozhan. Ronglu saw Yuan as reliable subordinate and his support allowed Yuan to not be punished, unlike the other reformers. Later that year several military units in northern China were placed under Ronglu's command as the
Wuwei Corps, which also called the Guards Army. Yuan's New Army became the Right Division of the Guard Army. It was seen as the best trained and equipped among the five divisions of the army, and his success opened the way for his rise to the top in both military and political sectors. During 1899 he wrote several proposals to the Qing court in military reform. In June 1899, he was made the junior vice president of the
Ministry of Works by Empress Dowager Cixi. As tensions increased between the locals and foreigners in the province of
Shandong, beginning the
Boxer Rebellion, Yuan was sent there in December 1899 as the acting provincial governor. He was confirmed as governor in March 1900. Yuan ensured the suppression of Boxers in the province, though his troops took no active part outside Shandong itself. Yuan took the side of the pro-foreign faction in the imperial court. He refused to side with the Boxers and attack the
Eight-Nation Alliance forces, joining with other Chinese governors who commanded substantial modernized armies like
Zhang Zhidong not participating in the Boxer Rebellion. He and Zhang ignored Cixi's declaration of war against the foreign powers and continued to suppress the Boxers. This clique was known as the
Mutual Defence Pact of Southeast China. In addition to suppressing the Boxers in Shandong, Yuan and his army (the Right Division) also helped the Eight-Nation Alliance suppress them in Zhili after
captured Peking in August 1900. Yuan's forces massacred tens of thousands of people in their anti-Boxer campaign in Zhili. Yuan operated out of
Baoding during the campaign, which ended in 1902. The Boxer Rebellion decimated the other divisions of the Guards Army, and after it was over the Qing court wanted rebuild the defenses of the Beijing area, appointing Yuan to oversee this task. In late 1901 he was made the acting Viceroy of Zhili and Beiyang Trade Minister after the death of Li Hongzhang, so he was also in charge of the foreign and military affairs of northern China. These appointments to powerful positions in the capital region showed the trust that the empress dowager had in Yuan. He was confirmed as viceroy in June 1902. Yuan was given several other offices around that time, including as director of the northern railways and director of telegraphs. Enjoying the trust of Empress Dowager Cixi, as the Viceroy of Zhili and Beiyang Trade Minister, Yuan was in a position that allowed him to expand his army and increase its funding. It was at this time that Yuan established the
Beiyang Army, with the creation of the Left Division of the Beiyang Standing Army in October 1902. In December 1902 he was also ordered to train several thousand
Manchu Bannermen, and these later became the 1st Division of the Beiyang Army, while the Left Division was renamed the 2nd Division. It was meant to become the core of a Chinese
regular army, and although Yuan had a lot of influence over it, the central government had administrative control and provided the army's funding. In 1904 Yuan used the
Russo-Japanese War to convince Cixi to authorize the creation of more divisions. Because of this the Beiyang Army reached a strength of 60,000 men. In mid-1902 he established a military staff to assist him in his role as Beiyang Army commander, and its two most prominent members were
Feng Guozhang and
Duan Qirui. The "Beiyang clique" became the origin of the majority of warlords in northern China during the warlord period in the 1910s and 1920s. As one historian wrote, "the [Beiyang] Army was the most significant military development in China between the [Xiang] and Huai Armies which suppressed the Taiping and [Nian] rebellions in the 1860's and the
army that
Chiang Kai-shek raised and employed in the
northern expedition of 1926-27." In 1905, acting on Yuan's advice, Dowager Empress Cixi issued a decree ending the traditional Confucian examination system that was formalized in 1906. She ordered the Ministry of Education to implement a system of primary and secondary schools and universities with state-mandated curriculum, modelled after the educational system of
Meiji-era Japan. On 27 August 1908, the Qing court promulgated "Principles for a Constitution", which Yuan helped to draft. This document called for a
constitutional government with a strong monarchy (modelled after Meiji Japan and Bismarck's Germany), with a constitution to be issued by 1916 and an elected parliament by 1917. Yuan's Han-dominated New Army was primarily responsible for the defence of Beijing, as most of the modernized Eight Banner divisions were destroyed in the Boxer Rebellion and the new modernized Banner forces were token in nature. The Empress Dowager and the Guangxu Emperor died within a day of each other in November 1908. Nonetheless, he avoided death. In January 1909, Yuan was relieved of all his posts by the new regent,
Prince Chun, who intended to consolidate power of the Manchu imperial family, though Prince Chun decided against his originally harsh dismissal decree and dropped any wording that would have permanently barred Yuan from future office; the official edict cited Yuan's resignation on grounds of a foot ailment, allowing him to retire to his home village of Huanshang () in
Anyang. During his three years of effective exile, Yuan kept contact with his allies, including
Duan Qirui, who reported to him regularly about army proceedings. Yuan had arranged for the marriage of his niece (whom he had adopted) to Duan as a means to consolidate power. The loyalty of the Beiyang Army was still behind him. Having this strategic military support, Yuan held the balance of power between various revolutionaries, like
Sun Yat-sen, and the Qing court. Both wanted Yuan on their side. == 1911 Revolution ==