The fall of Yüan Shih-k'ai in the summer of 1916 came as a result of an abortive attempt to set up a monarchy. This was one of the turning points in the Chinese revolution. The revolutionary tide which had been held back by his authoritarian rule was unleashed after its collapse. There followed a deluge. The focus of this paper is on the Japanese policy which, it is submitted, was primarily responsible for the defeat of the monarchical plan.