Omaha daily bee., 1907-06-17
LOAN AS INSURANCE
France Plays Cash Against Promise
to Let Colonies Alone.
JAPANESE AGGRESSION FEARED
Belief France Could Not Hold Indo-
China Against Japs.
LATTER IN NEED OF A LOAN
Agreement Opens French Market for
Desired Funds.
TENSION GREATLY RELIEVED
orientaIs, ON the other Hand, see
Opportunity to Pursue Their
Plans for Industrial
Development.
TENSION GREATLY RELIEVE,

PARIS. June 1es-while political consid-
GRAFTON Of high order contributed to the
negotiation OF the new Franco-Japanese
entente. there Is no longer any doubt that
the substantial "quid pro quo" given by
France was the promise OF access to the
French market for future japanese loans.
Japan did not need a French guarantees
for Corea and FormosR, but a japanese
guarantee for Indo-China was worth a
great deal to France and It was willing to
pay the price demanded.
Japan, according to the confidential
statements made by some Of her highest
representatives in Europe will need some
thing Ike 5,OOoOoO,OOo francs, (Sl.Ooo 600, OOO)
within the next few years to convert its
present high rate loans and to furnish the
capital necessary for Industrial and COM
merciAl development planned In Manchuria
and corea. While the money markets of
the world are at present unfavorable 10
iotations, japan has succeeded in insuring
the assent OF the French government to
the placing of its loans here when the op-
perfume time arrives.
II is regarded as q big achievement for
Japan, but the French government Is
equally convinced that II is a good bargain
for France. 81. Pichon, the present min
perience in the far east as minister at
Picking. and none appreciated more than
he how impossibly 1t would be for France
to defend Indo-Ch against an adversary
like Japan. Besides, as a matter OF fact,
the dread Of Japanese aggression in Indo-
China has haunted the Quai D'Orsay for
years. France has given japan provoca-
tion in the past. II was a party with Rus
sia and Germany 10 the tripartite agreo-
ment which forced Japan to rolinquish the
fruits Of their victory over China. obtained
In the treaty Of shimVnisaki and there
has always existed a fear that Japan
would some day take its revenge. Indeed.
there are In the archives Of the ouai
DOrsay proofs that at one time plan OF
campaign against the French colony OF
Indo-China had been prepared at Toxic.
Subsequent events. however. decided Japan
to strik9 RUSSIA Instead OF France.
There was q critical moment during the
1ashoda incident when France and Eng
land seemed on the verge OF war. France
was then greatly alarmed lest Japan would
seize the opportunity and strike, and hur-
ried preparations were made TO defend the
Chinese colony. There was another crisis
IN the relations between France and
japan during the Russo-Japanese war
when France stretched It's neutrality to the
limit in favor of its ally BY allowing
Roiestvensky's fleet shelter for weeks ~
Cameron Bay. So keenly did the French
government at that time feel that II may
have given Just cause Cor rsDrtsal, that
after peace was made by the treaty oi
Portsmouth and japan entered the marke'
for a 100000 900 yen loan, NJ. Rouvier' then
minister Of finance. deliberately braVed the
dissatisfaction OF Russia by insisting upor
the admission of part of the loan to tbs
Paris Bourse. To those who complained
that II would constitute an sffront to
Frances ally he replied substantially. we
must think of France frst. II Ia cheaE
insurance for Indo-China."
NJ. Piohon was possessed by the same ioea
when M. Kurino. the Japanese ambassador
approached him last winter relative to tht
latsst japanese 5OoOOOOoo franc issue. He
wanted to know II Japan was prepared &c
give a written promise guaranteeing lndo
China NJ. Kurino replied that Japan hat
absolutely no aggressive intentions and OF
fered to consult his government That con
versation was the germ Of the negotiations
which have resulted in the convention JUS
consummAted.