"The 19th Division has returned to Korea," Saionji Kinmochi said to Takahashi Korekiyo with a face full of anger. Takahashi Korekiyo's home in Tokyo was not large; without the various furnishings in the courtyard, one could see the bare ground of the small courtyard just by turning one's head. Although Saionji Kinmochi did not want to glare at Takahashi Korekiyo, he could only glare at him. Crossing the Changbai Mountains in winter, the 19th Division had lost all its heavy weapons. Fortunately, due to Yamagata Aritomo's orders, the Japanese troops stationed in Korea sent out guide units, which prevented the troops from suffering outrageous casualties. Moreover, compared to the result of the total annihilation of the 6th and 7th Divisions, the 19th Division had at least returned to Korea.

"Saionji-kun, I also heard that the Japanese fleet bombarded Wuhu?" Takahashi Korekiyo didn't care about the 19th Division at all. He was not completely without eyes and ears; Takahashi knew a little about the Japanese army's predicament.

Saionji Kinmochi said fiercely in a tone very different from usual: "Bombarding Qingdao and Lianyungang is meaningless. We must put greater pressure on the People's Party now. Even if the Army is useless, the Navy is not comparable to those horse dung in the Army."

"But the Navy doesn't have any definite battle results either, right?" Takahashi Korekiyo said as if nothing had happened.

Hearing this, Saionji Kinmochi frowned first, and then almost subconsciously crossed his arms over his chest. "Takahashi-kun, you don't intend to decide to end the war on your own, do you?"

Takahashi Korekiyo nodded, "Yes, I want to end the war. But I hope Saionji-kun can support me. We have already failed in Manchuria. If we continue to fight, we will only draw the flames of war from Manchuria to Korea. At that time, unless we make huge concessions, the British will not participate in mediation at all."

"In the Sino-Japanese War, we won easily through landing operations..." Saionji Kinmochi couldn't help but want to refute.

"Warships can't sail into Pyongyang. Landing operations only send large numbers of army troops onto the battlefield," Takahashi Korekiyo said loudly.

Saionji Kinmochi was stunned. He didn't quite understand whether Takahashi Korekiyo was mocking the Navy or the Army. The Navy had limitations in its scope of combat application, and the Army was truly no match for the People's Party. Regardless of the battle record, neither the Japanese Army nor Navy could guarantee victory in the war.

Takahashi Korekiyo didn't want to play any riddles. Seeing Saionji Kinmochi subconsciously taking out his pipe, he stepped forward and lit a match for Saionji with a steel lighter, then placed the lighter earnestly in front of Saionji. Saionji Kinmochi was slightly puzzled by Takahashi's action. After carefully looking at the lighter, Saionji's expression also became very ugly. That lighter was made in China. The logo was a beautiful firefly, and below it was printed in simplified characters "Manufactured by Wuhan Lighter Factory", and at the very bottom was a line of English: MadeInChina.

"There are many such lighters in Japan. Because they are cheap, ordinary people can afford them. Filled with gasoline or alcohol, they can be used. If really necessary, filling them with strong liquor can barely light them. They are all smuggled from China by merchants." Takahashi Korekiyo sat back in his seat and answered calmly, "As far as I know, just last year, China exported millions of such lighters to Britain and France, not including the sales of flints. Saionji-kun, if we cannot decisively terminate the war now, but instead willfully continue to expand the war, the flames of war will definitely burn into Korea. If the British do not intervene in the war in Korea, we will lose the opportunity to utilize the European war."

Saionji Kinmochi knew Takahashi Korekiyo's consistent attitude. He couldn't help but say in a mocking tone: "Why can the People's Party do business with the British while fighting a war? We can't."

Takahashi Korekiyo sneered, "Because China has vast territory and endless resources. The victory of the People's Party only allows them to control more and more land, population, and resources. Our mining investments in northern Korea bear the brunt of the war. If the war continues like this, our supply of raw materials will only decrease."

Saionji Kinmochi also sneered, "Then the Army Ministry will also tell Takahashi-kun that if we cannot defeat the People's Party, Korea cannot be kept."

"It's not that I haven't given the Army a chance! What kind of mess did they make of the war in Manchuria? Three and a half divisions were annihilated. Including Mantetsu, we lost 100,000 people and countless investments. Are they preparing to do it again in Korea?" Takahashi Korekiyo's attitude was rarely close to rage.

Saionji Kinmochi looked at Takahashi Korekiyo's performance and suddenly wanted to let Takahashi personally explode at those guys in the Army Ministry. However, he quickly dispelled this almost vengeful thought. Takahashi Korekiyo was now the Prime Minister supported by the Navy, and his financial ability was also urgently needed at present. Saionji Kinmochi said: "Takahashi-kun, you feel that you are the Prime Minister leading Japan, but the Army Ministry believes that the Prime Minister should be someone who serves their policies. Although I agree with your point of view, I still hope you can see the essence clearly."

Takahashi Korekiyo was certainly very clear about these essences. The struggle between the Japanese Army and Navy also included political differences between the Army Ministry's "anti-party politics" and the Navy Ministry's support for "party politics". Whether it was the late Katsura Taro or Katsura Taro's teacher Yamagata Aritomo who was still alive, they were both opposed to party politics. The reason Katsura Taro formed a political party himself was essentially to form a "political organization opposing party politics" wrapped in the skin of a political party. There were actually significant political differences between Takahashi Korekiyo and Saionji Kinmochi, but the two were quite consistent in dealing with this "political organization opposing party politics".

"Saionji-kun, I know the Army Ministry will definitely try to carry this war through to the end. Although I feel it might be better if they were defeated, they won't go to die themselves, but will try every means to drag the entire Japan down with them. I will definitely do my best to stop them, but I hope you can still think about the candidate for the next Prime Minister." Takahashi Korekiyo said.

"I won't let those people in the Army Ministry succeed." Saionji Kinmochi didn't feel that things had developed to such an extent.

Takahashi Korekiyo gave a bitter smile. He said in a heavy voice: "No, Saionji-kun, the problem with Japan right now lies in the refusal to face reality. The people are unwilling to admit that we have been defeated; the people believe that the Great Japanese Empire will not be defeated. Coupled with the instigation of some people, the Japanese people will think that as long as the war continues, the current defeat is merely a footnote to future victory. So the more they pursue victory, the more they fail; the more they fail, the more impossible victory becomes. Because the people do not understand that the current China is no longer the China of the past. Now I want to tell the Japanese people, tell everyone in Japan, in the capacity of the Cabinet Prime Minister, that this idea is wrong. Of course, I also know that the result of my doing so will definitely not be good. Regardless of the result, I will be forced to resign from the position of Prime Minister."

Now Saionji Kinmochi was completely stunned. He never expected that Takahashi Korekiyo had made such a decision. Even if he thought what Takahashi said made a lot of sense, Saionji could not fully accept Takahashi's view, which was to "admit defeat".

Takahashi Korekiyo knew Saionji Kinmochi's thoughts very well. He stared at the hesitant Saionji and continued: "Only by admitting defeat can we continue to fight on everything the Great Japanese Empire still possesses now. If we do not admit defeat, then the Army will definitely demand to retake Manchuria, or even conquer China as the goal. Saionji-kun, what do you think the result of that would be?"

Saionji Kinmochi finally completely understood what Takahashi Korekiyo was saying. Takahashi was prepared to fight to the end with that bunch in the Army Ministry. Not only that, but Takahashi was also prepared to do his best to reverse Japan's current strategic view. Saionji knew very well that the price to be paid for such an action was not just as simple as Takahashi not being able to be Prime Minister. At that time, not only the Japanese Army, but almost the entire cabinet, including the Navy, would be Takahashi's enemies. Takahashi was using his political life to issue a tragic challenge.

However, as a politician, Saionji Kinmochi quickly recovered his calm from this moved emotion. This kind of gamble destined for failure was not something ordinary people could decide on. Not to mention that Takahashi Korekiyo actually had more choices; there was really no need to adopt such a method. Saionji strongly suspected that Takahashi was adopting some kind of political strategy. So Saionji did not make any evaluation or promise regarding Takahashi's statement.

However, what happened next was greatly beyond Saionji Kinmochi's expectations. Takahashi Korekiyo fully exercised his authority as Prime Minister. The plan proposed by the Army Ministry to amass heavy troops in Korea and march into Manchuria after spring was firmly rejected by him. Moreover, Takahashi ordered Foreign Minister Makino Nobuaki to contact the British. Although Makino Nobuaki was a diplomat who extremely advocated for the liberal faction and his stance on promoting Japanese democratic politics was completely consistent with Takahashi and Saionji, facing Takahashi's move to "wake up the Japanese people to face reality", Makino still felt very panicked.

Admitting defeat was not an easy thing for Japan at present. Even admitting a partial defeat would not only deal a huge blow to public morale but also generate great distrust of Japan from the Entente Powers. Makino Nobuaki said hesitantly: "Takahashi-kun, I think there is no problem with the request you want me to convey to the British, but do we really have to go this far?"

Takahashi Korekiyo answered without hesitation: "If we cannot suppress the Army Ministry, the Great Japanese Empire will definitely suffer even greater losses! After losing Manchuria, we absolutely cannot lose Korea as well."

Makino Nobuaki was not completely ignorant of the current military situation. He asked: "How exactly is Takahashi-kun sure that the People's Party will accept British mediation?"

Takahashi Korekiyo said firmly: "Because the People's Party still hasn't refused to join the Entente Powers up to now. What they need is merely to see to what extent the Entente Powers can make concessions. As long as we admit our failure in Manchuria and request the Entente Powers to mediate this matter, then the People's Party will not dare to attack Korea. If we give up this opportunity and just blindly expand the war, in the present moment where we suffer continuous defeats, the Entente Powers will absolutely not be willing to endorse Japan. Think about how the European and American powers mediated conflicts between other countries and China back then! Imagine the result of the Russo-Japanese War! When have the powers ever truly supported the loser?"

Makino Nobuaki stopped talking. He completely understood what Takahashi Korekiyo meant by "admitting failure". If Japan refused to admit past failures, had no means to reverse the failure at present, and continued to fail in future gambles, the Entente Powers would not truly support Japan at all.

However, Makino Nobuaki did not believe that Takahashi Korekiyo could really succeed in establishing a democratic party politics Japan. At least right now, blocking Takahashi's path was the powerful Japanese Army Ministry. He said very implicitly: "Takahashi-kun, there are also quite a few officers in the Navy Ministry who believe that relying on bombarding the coastal cities of the People's Party, or even attacking important cities in the Yangtze River basin of the People's Party, can force the People's Party to submit."

Takahashi Korekiyo gave a rare sneer, "Do the Army and Navy really not know that Japan still owes the British six hundred million pounds in debt that needs to be repaid? Do they really not know that Japan's economy is now facing the brink of collapse?"

At the mention of this issue, Makino Nobuaki also fell silent.

Takahashi Korekiyo might have worried too much. It was obvious that the Japanese Army Ministry knew about Japan's current debt situation. While Takahashi was constantly contacting various parties, preparing to launch diplomatic and internal political adjustments based on "Japan admitting defeat in Manchuria", newspapers closely related to the Army Ministry suddenly published articles about raising war loans during the Russo-Japanese War. The articles wantonly criticized Takahashi Korekiyo for disregarding the situation where Japan already had victory within its grasp during the war fundraising, and just for personal prestige, disregarding Japan's national strength to borrow heavily, causing Japan to be burdened with huge debts. It was precisely these debts that made Japan struggle difficultly at present.

First one newspaper, then several newspapers commented on this matter. Some criticized directly, some seemed to stand on a fair angle but actually accused Takahashi of acting recklessly out of selfishness. There were even various "speculations" accusing Takahashi of lining his own pockets by using the issuance of war bonds.

Takahashi Korekiyo keenly felt that there was a problem behind this matter. If it were according to the tradition of the Army Ministry, they might have rushed into his office with pistols, shouted first, and then slapped the pistols on the table to threaten him. But such a tactic of smearing by creating public opinion first was definitely not a strategy that those single-track-minded fools in the Army Ministry could come up with. There was definitely a guy proficient in party struggles behind this acting as a promoter. Who exactly was this hidden enemy? Takahashi Korekiyo had to suspect that the hardliners in the Navy had major suspicions.

However, this was not the time to look for the perpetrator. With the courage of burning one's boats, Takahashi Korekiyo went to visit the current overlord of the Army faction, and the retired Army Marshal Yamagata Aritomo.

The talk naturally could not achieve any effect. No matter how Takahashi Korekiyo presented facts and reasoned with Yamagata Aritomo, telling him that by admitting the current partial failure, Japan could use the opportunity of the European war to solve Japan's debt problem, and after the finances fully improved, Japan would have plenty of opportunities to regain a dominant position over China, Yamagata Aritomo just had a cold attitude and didn't take these words to heart at all.

When Takahashi Korekiyo had to admit that he couldn't persuade Yamagata Aritomo and left dejectedly, Yamagata Aritomo sneered, "That servant Prime Minister sure can talk."