The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-09-12
RUSSIA'S HOLD ON CHINA.
STRONG NOW AND CoNsTANTLT
GROWING STRONGER.
The white Trar,. wish the dominant influence
with the reEin Government - How nc
Helped tho BeiEiAns-Eugiish and Ameri-
cans shut Out OF the New Contrncts,

with the Pekin Government now ~
Helped tho Bsirians-EuEilsh and Amcri-
cans shut out or tho New Contrncta'
PEKIs. July 10, 1%so7.-This country is drift
ing along just rs 1t has always drittou. Iho
Emperor, shut up from tho outer world, and
surrounded only by q court In which women
and cunucls play tho principal part and WELD
the PRINCIPAL influence, leaves the government
to the great boards, each containing many
MEMBERS, and zach as u practical Instrument
of administration more inefficient than the
other. reforms cannot he had, and even a
change for better or worse seems to DO Int
possible. Custom and conservatism are the
rule, except where the Russians choose to inter
venc, and thcn. what they say goes" while
nothing else docs. There Is now no denial OF
the fact that Russia, having Endorsed the Chi
ncso Emperor's notes. guaranteed the first in
stallment OF the japanese war indemnity, and
entered into a secret treaty TO build u railroad
through Manchuria and to protect the empire
against the 'ravenin6 wolves that threaten to
destroy II" is the dominating II not the snze-
rain power of eastern Asia. No Chinese states
man or high official darcs to stand up against
Russian demands. or even against Russian
suggestions, andsso 1t is that what Russia says
goes here, and what any other nation says
does not go. except by Russia's permission.
This fact must DO considered as the key to
oNClg NuCbNloh WAN "biNb Niho ~ avs
TO do, or in which any foreigner is Interested.
The Treasury crisis already indicated in this
correspondence is becoming moro and moro
acute. Tho proceeds OF tho foreign loans
heretofore n~egotiat cd have been expended.
the revenues are insufficient, and bankruptcy
Of tho imperial treasury is inevitable unless ad.
ditional loans can be raised.
1t is reported and believed here that the Gov
eminent agents are In tho market for a new
loan of 100, O00, 900 taels at b per cent. and that
they expect to sell their bonds for this amount
to the English banks at about %, and this is
given as the explanation for the demands of the
Belgian syndicate for a modification of its
late contract to build tho Peking-H ankow
Railway.
1t is now known that the Chinese officials to
whom these demands were referred were at
first bitterly opposed to any modification what
ever Of the terms, and demanded peremptorly
that the contract as originally signed should
be strictly adhered to-that the Belgians should
~scsoumcthc, or stdemethe, and 1t looked for a
while as though the Chinese would prevail, but
they counted without their host" They for
got that tho Russians wcro their masters, and
that they had given their approval and sup
port to the Belgians-that tho latter were, ia
fact, their agents, If not their partn ers, and
could not be turned down with impunity.
And this explains why, after giving 1t out to
the world that the Belgian syndicate had de.
c!ared itsolf unable to carry out Its contract
and that the same had been or would be abro-
gated. the Chinese officials have listened to
their real masters and are about to sign q new
contract with the despised Belgian syndicate,
which also includes the Cockerill Steel and
Iron Works. This new or revised contract
provides for a loan Of "a, $50, 600 at 1 per cent,
the bonds to run thirty years, TO be paid for in
gold at 30 and 70 be secured by a pledge of the
mi IL nlaN IFnNldnQ thA% Tina avs III L.
cate snail furnish half the supplies and mate
rtals and have a commission OF 5 per cent. on
furnished by them or are bought in the open
market shengtaotai, the agent OF the Chinese
is TO furnish 1900 900 taels Of additional cap,
ital. to be obtained from the iinpertal and pro
ton, and merchants, and he is also to have the
absolute control OF all foreign as well Us native
officials, agents and employees, At least It is
choose to order an exception TO be made in the
case Of such as are appointed by the Belgian
The new contract has been ready for execu.
ton several weeks, but tho proposition for the
claimed that the bonds which the English ar"
TO buy, bearing a higher rate Of Interest and
ment, would not only be taken first, but would
prevent the sale OF the 4 per cent. bonds for the
Of damage. The Belstnns claimed that The
Cuihcoo euouiu pay tbtLu S,Ott,OtO tdeIe.
Sheng and the Government thought this was
an outrageous demand and protested that they
slams were at hand to Intervene for their hei Bel
gian. friends, and thereupon n compromise was
reached by which the latter are to receive some.
thing like 800. 600 taels extra and are 10 pay
certain preliminary expenses which the railroad
administration is supposed to have incurred,
but which is probably intended AS solatium 10
high Chinese official.
Thus the matter rests at present, but what
will DO the outcome Of II all must remain un-
certain. Where Sheny Is to get the money he
has undertaken to raise, and the expenditure
come the FIRST security for the bonds TO be is.
sued on Il, cannot yet be stated with certainty.
The. well-known distrust of Cinnamon OF every
grade for each other, and especially for those
In authority. is Just as strong now as it ever
the opinion freely that tho Chinese part of the
capital viii never be raised, unless the imperial
Of it.. Obviously they cannot do this unless
they have the money in hand from loans or
revenue, and even in that event they may not
say again they must.
But while there Is such a pother over the fnan.
eial arrangements for the new line. which. as II
IL TO connect the capital Of the empire with the
Y~angtse-Kiang, and thus bring all the provinces
on the great river into close communication
with tho seat OF government. Is an undertaking
OF tho greatest Importance, | am at last Ell.
aabied to iniorm you that the railroad from
Pekln 70 flemish, some seventy.fve miles in
length Is at last opened for trsfic. Tho motive
american typo. have been furnished by the
Baldwin locomotive Works OF Philadelphia,
IN competition with English and German bid.
ders, and 1t may be fairly assumed thcy could
not have got the contract unless their tender
was lower than any other. The traffic Of the
heayilyi and II Is confidently believed that tho
This road. It will be remembered, has been
built under the supervision Of MIR. Kinder, tho
English engineer who opened the Kaiping coal
mines and built tho Ticntsin- X niping. SRang.
ha,quan line. Ho Ia q clever man, possessing
somewhat fewer and perhaps less violent
prejudices against Americans than his coun.
trylnen generally, but this Is probably due 10
tho TACT that he has been long domicilcd IN his
country and has had TO do quite as much with
Americans az with EnGliShmcn.
j regret 20 add that the locomotives md
possibly, the, Dir brakes and Janney ]coupIers
are so far the only machinery furnished from
the United States. All the American symdi,
gates, with their agents end promoters, have
FAILED to secure CONCESSIONS and contra cts. and
unless they now come TO the front with uccGpta.
bic propositions for othor lines and projects, they
Will get absolutely nothing for their trouble:
but II, this respect they will not 10 worse on
yhnu the English and German syndica,es, which
| IA hl.n wall r.JIr. I ) .n1 D. 4 tnaI .l -,