Anglo-Japanese Alliance - Limitations

Limitations

There remained strains on Anglo-Japanese relations during the years of the alliance. One such strain was the racial question. Although originally a German notion, the Japanese perceived that the British had been affected by idea of Yellow Peril, on account of their recalcitrance in the face of Japanese imperial success. This issue returned at Versailles after WWI when the UK sided with the U.S. against Japan's request of the addition of a racial equality clause, proposed by Prince Kinmochi Saionji. The racial question was difficult for Britain because of its multi-ethnic empire.

Another limitation to the alliance was the economic relationship between Britain and Japan. Despite Japan's successful modernisation and growing military power, British banks continued to overestimate the risk involved in investments in Japan. Particularly insulting was the terms on which loans were issued to Japan, ranking them as equal to countries such as Egypt, Turkey and China.