New-York tribune., 1909-09-04
HANkOW LOAN DISPUTE
RUSSIA MIKES DEMAND.
Further Delay an Signing the
$4,000 900 4 greement Probable.

Washington, Sept 3.-The persistence with
which Russia is striving for representation with
the other nations IN the S30OOo0OO loan for the
construction Of the Hankow- -Sze-G Ghuen Chinese
railroad, 1t is admitted here, may result in
further delay in the signing of the agreement.
Although State Department officials very
reticent the subject. is known that the
course of St. Petersburg in demanding equal
representation in the loan with Great Britain.
Germany, France and the United States is not
favoraby regarded, because the Russians it is
said. have no real basis for such a demand.
Some time ago 1t was intmated that Russa's
action may have been instigated by outside in
terests opposed 10 the distribution Of the loan.
The statement from Peking that France is
seeking degree of equality with the other three
nations in the financial affairs of China 1t is
feared may still further complicate matters.
According to the agreement. France to
ceve equal share with the other nations in the
loan, and also TO be permitted TO furnish
her proportion of the materials used in the con-
struction Of the road. She was not, however.
to receive equal banking facilities with the
others, and was not given the privilege Of desig-
mating one of the chiefs of engineers
1t is believed that France has increased her
demands so as to include these two privileges,
which are regarded as of Importance. The out
look, therefore, for an immediate signing of the
No in authority here. however, seriously
doubts that an agreement ultimately will be
reached entirely satisfactory to the United
States.
Pekng. Sept 3.-M Korostovitz Russian Min
ister to China. will tomorrow. for the second
time, urge the Foreign Board 10 recognize Rus
sias claim for representation in the allotment of
the loan Of $30,OO0,000 for the construction Of
the Hankow- SEE Chuen railroad. He takes this
action on renewed instructions from St. Peters
burg. France is said to be supporting Russia in
this course. St. Petersburg does not accept the
Chinese contention that the loan has been con-
cluded. Because Of the new situation arising
from Russia's proposed action. and the prospect
that the loan viii not at present be signed. the
manager Of the French Bank of Peking will
leave here tomorrow for Paris
The Russian claims will have the effect. in
principle, of opening competition for the German
share of the loan the Germans are the only
participants whose position is not protected by
existing convention.
II is understood here that the Germans con-
stitute the strongest obstacle to the signing Of
loan agreement by China and the United States
an essential TO American equality in participa-
ton, and the completion OF such agreement
is the present bone of contention.
The influence of Grand Councillor Chang-Chi
Tung with the German bank shows no signs OF
abatement. and the British ard French bankers
declare it is impossible for them to alter the
German attitude
1t IS believed that French interests are now
seeking degree OF equality in Chinese financial
affairs equal to that for which American inter
ests are striving.