In 1911 there broke out in China a republican revolution which was speedily successful.

The new Government, as yet unrecognized, needed money, and the United States secured a share in a six-power syndicate which was organized to float a national loan.

The conditions upon which this syndicate insisted, however, were as much political as they were pecuniary, and the new Government refused to accept them.
On the accession of President Wilson, the United States promptly led the way in recognizing the new republic in China.

On March 18, 1913, the President announced: "The conditions of the loan seem to us to touch nearly the administrative independence of China itself; and this administration does not feel that it ought, even by implication, to be a party to those conditions." The former American policy of non-interference was therefore renewed, but it still remained uncertain whether the entrance of the United States into Far Eastern politics would do more than serve to delay the European dominance which seemed to be impending in 1898..