New-York tribune., 1907-06-17
JAPAN'S LOANS ASSURED
TIE FRENCH GUARANTEE.
Price Paid for Safety of Indo-Chi-
nese PrOUinces.

Paris, June 16.-While political considerations
Of a high order contributed to the negotiation
of the Franco-Japanese convention, there is no
longer any doubt that the substantial qud pro
quo given by France was the promise of access
TO the French market for future Japanese loans.
japan did not need French guarantee for
Corea and FormOsa, but a Japanese guarantee
for Indo-C China was worth a great deal TO
France, and she willing to pay the price
demanded
Japan, according to the confidential state
ments made by some of her highest representa-
tives in Europe, will need something like 5000,
100000 francs S1.OOOOOOOO0) within the next
few years to convert her present high rate loans
and to furnish the capital necessary for indus
trial and commercial development. While the
money markets of the world at present un-
favorable TO flotations, Japan has succeeded in
insuring the assent of the French government
to the placing of her loans here when the time
comes
II Is regarded as a big achievement for Japan,
but the French government is equally con-
WINGED that it is a good bargain for France. NJ
Pichon the present Minister of Foreign Affairs,
mad a long experience in the Far East as Min
lister at PeSing. and none appreciated more than
he how impossible it would be for France to
defend Indo-China against such adversary as
Japan. Besides matter of fact. the dread
of Japanese aggression in Indo-China has
haunted the Quai OrSay for years France has
given Japan provocation in the past. She
party, with Russia and Germany, to the tri
partite agreement which forced Japan to re-
linquish the fruits of her victory China
obtained in the treaty of Shimonoseki, and there
has always existed fear that Japan would
some day take her revenge. Indeed there are
in the archives of the Quai d'Orsay proofs that
one time a plan of campaign against the
French colony of Indo-China had been prepared
Toxic. Subsequent considerations. however
decided Japan to strike Russia instead of
France.
There was a critical moment during the Fa-
shoda incident when France and England
seemed on the verge of war. France was then
greatly alarmed lest Japan would seize the OPP
portunity and strike. and hurried preparations
were made to defend the Chinese colony. There
was another crisis in the relations between
France and Japan in the Russo-Japanese War
when France stretched her neutrality to the
limit in favor Of her ally by allowing shelter
for weeks 10 Rojestvensky's fleet in Kamranh
Bay. So keenly did the French government at
that time feel that 1t might have given just
cause for reprisal that after peace had been
made by the Treaty of Portsmouth and Japan
had entered the market for a 5O00oo.VO yen
loan. NJ Rouver. then Minister of Finance, de-
liberately braved the dissatisfaction Of Russia
by insisting upon the admission Of part of the
loan to the Paris Bourse. To those who COM
plained that 1t would constitute an affront 10
Frances ally. he replied. substantially: we
must think of France first. 1t is cheap insur--
ance for Indo-China."
NJ. Pichon possessed by the same IDEA
when NJ. Kurino. the Japanese Ambassador ap-
proached him last winter relative TO the latest
Tapanese 100000 600 franc issue. He wanted TO
know If japan was prepared TO give written
promise guaranteeing 1ndo-China. NJ hurlno
replied that Japan had absolutely no aggres-
sive Intentions. and offered TO consult his gov
ernment That conversation was the germ OF
the negotiations which have resulted in the con-