Before discussing the Sino-Russian loan negotiations, let's turn our attention back to domestic affairs in Russia.
Since January 1895, the lengthy process of reorganizing the Council of Ministers had taken shape by May.
At first glance, the Council of Ministers appeared similar to the Committee of Ministers, with members consisting of various department ministers, heads of major bureaus, representatives from the Orthodox Church, and state governors.
However, because Emperor Nicholas II had clearly stated that he would no longer preside over these meetings, the chairman of the State Council and several secretaries from Nicholas II's office were also included as members of the Council of Ministers.
Nicholas relinquishing direct control did not mean he would let the Council of Ministers operate independently. To some extent, he needed to maintain significant influence to indirectly steer state affairs.
On the other hand, Nicholas's influence in the meetings helped ensure the smooth functioning of the Council of Ministers.
After all, Russian ministers were not yet accustomed to not directly taking orders from an autocratic emperor. Instead, they now faced a young chairman, Sergei Yulyevich Witte, issuing directives.
Born in 1849, Sergei Witte was considered a young and promising figure in the Russian upper echelons. At the age of 45, assuming a position second only to the emperor, he faced as much criticism as the lengthy reorganization process. Although his achievements were remarkable, they were not enough to quell all dissent.
Fortunately, in this era, even high-ranking Russian bureaucrats did not have long life expectancies. By early 1895, the positions of Minister of Transportation and Minister of Foreign Affairs had become vacant, giving Witte the opportunity to place his close associates in these roles.
It was also surprising to many observers that the Minister of Internal Affairs, Durnovo, who had not opposed Witte's appointment as chairman, continued to hold his position. After all, towards the end of Alexander III's reign, he had been preparing to oust this short man with a forked beard.
In some ways, this demonstrated that Nicholas II was not a conservative monarch blindly following in the footsteps of his late father.
Returning to the main topic, the Council of Ministers, under Witte's leadership, received general approval and support from Russian bureaucrats. Many had been eyeing his position, believing that such a role was a threat to the autocratic emperor given Russia's history of despotism. They assumed Witte would not last long.
Apart from Witte and other university-educated technocrats who rose through their expertise and social skills, Russia's bureaucracy also consisted of hereditary nobles who advanced due to their lineage, background, and family connections.
These nobles held deep-seated prejudices against technocrats like Witte. In simple terms, the relationship between the two was akin to that between knights and stewards in the past—the former provided military power and legitimacy, while the latter managed the populace and provided resources.
Nicholas's father, Alexander III, harbored a dislike for ministers, reflecting a broader disdain of hereditary nobles towards technocrats. He often expressed to Nicholas, "If only we could go back to the old days!"
However, time does not move backward, and society had become far more complex than in the feudal era.
The rapid development of disciplines and technological advancements led to an arms race in Europe. Russia needed its own ironclads, railways, and telegraphs to defend the motherland, all of which required technocrats.
Therefore, Russia had to cultivate a large number of technocrats who, in turn, demanded more power and were ready to become the new masters.
The struggle between these two groups had been an undercurrent during Alexander III's reign. Spiritually close to the hereditary nobles, Alexander III pragmatically supported technocrats like Witte.
This abstract, macro-level analysis is merely an observation and not the truth. Nicholas, dealing with real, complex individuals, could not rely on stereotypes to navigate interpersonal relationships and affairs.
By early May, Nicholas was spending significantly less time in his office compared to the previous year's end.
With the Council of Ministers up and running, Nicholas personally appointed Sergei Witte as the second chairman after stepping down himself, delegating a myriad of tasks to the now power-energized Witte.
The new Council of Ministers occupied the administrative building formerly used by the disbanded Committee of Ministers, with its original offices becoming part of the administrative offices for the Council of Ministers.
Despite holding significant power, Witte could not manage all the state affairs of the vast Russian Empire alone. Therefore, he designed a team of office staff under his cabinet, with several departments handling various tasks.
The First Office managed administrative affairs in the Caucasus and railway management, which Witte closely monitored.
The Second Office handled state budget, finance, industry, commerce, taxation, and administrative services related to provincial governor reports.
The Third Office dealt with national education, grain supply, communications, urban planning, healthcare, and immigration. Its extensive responsibilities required renting another building for its operations.
Notably, the Third Office would undertake further reforms long envisioned by Nicholas.
The Fourth Office oversaw police affairs, civil servant retirements, church finances, and the organization of national inspection reports.
The Fifth Office was dedicated to relaying documents for Nicholas II, the chairman of the Council of Ministers, and the ministers.
"Please return this to Chairman Witte," Nicholas instructed State Secretary Polovtsev, who had presented a memorial.
However, many ministers were still unaccustomed to the new system. After discussions in the Council of Ministers, some privately tried to pass their memorials directly to Nicholas II through secretaries from his office.
This bypassing of a meticulously designed system undermined the reforms to some extent.
For an autocratic emperor, this was beneficial, as Nicholas could immediately learn what his ministers were doing, thereby restraining Witte.
But Nicholas was determined to demonstrate his commitment to the new procedures and attitudes, which valued systemic compliance over personal power.
Returning the memorial earned Witte's gratitude.
"Chairman Witte asked me to convey his inexpressible gratitude to Your Majesty," said a secretary from Witte's office, who had been dispatched to Nicholas due to Witte's heavy workload.
After nodding in acceptance, Nicholas ended the brief conversation and finished his remaining tasks, finding himself with some free time.
Apart from being an emperor, Nicholas was also a husband and soon-to-be father. The Empress Alexandra was now nearly three months pregnant.