New-York tribune., 1909-07-21
WILL, SHARE IN LOAN
r1ry1 GIVES PROhiSh e.
,.,., Department Successful !" Ef-
0'a t.,, to Aid american Bankers


-. 1oan Of sz7.5oo,ooo ABOUT - T5.,1@o,, and
=. chinese government On '.i- -..-.rtees will
hr ne -.ilrosd and other enterprises VIZ
sze-Chueh che entire satisfaction OF TINS
he arranged ass,r5ns the maintenance OF
-,-.-nrnent, thus assuiis
the open oo'i ...is e4fec+ came 70 the state
Assui0'', =. .dsv from Peking, and gave great
Dspsl =, ,be officials. who have beeh Do
satisla''i',, ,i-s developments in the financial
tientN ---,-ona and at Peking and insisting
oel'Ies ,--..esa government that the Unlteo
% 'no Ill, entitled 70 share with foreign
stare .,e allotment of the loan. American
nsnAe'6 exnected 10 receive fourth ot
tie loan -.,ee er,, stand sue
;. largely due, the news was particularly
c' .A,e The issue has been regarded d an
ss-.a-t ouestion by the government On ac-
uni Of the principle inVolNeo' ,,.
oOu"' -e has been brought 10 bear on emma
.-st1,s+snd Americas demands, on the srouho
- % Yield 70 the United states Wouio oe u
'"1 are 5oor 70 other claimants for partclPa-
=. she loan. and she was urged to give ihe
uD-- &c exclusively 10 French. German aud
,.., bankers. in accordance with the agree
.5+ made in Peking on June 6 Cnoouoteuiy
r-ass,,re will be continued but it Is be
- that China viii stand by her present
declared purpose
-. ~ less American material undoubtedly
III he used in the construction of the railroad
- N all probability the building OF portion
o.. will be under the supervision Of American
,.r+,ee-s Original American participation
.,s,x the market for American manufacturers.
- +ba United states obtains a political pres
.ge which is important
The satisfactory adjustment OF the loan means
,se snrlication of the open door TO China in
,,s fullest aspect. and is a decided advance IN
,,s nolicv established by Secretary Hay and
vigorously pushed hy Secretaries Root ana
Knox.
4,r,,, Jrl, M-On account Of the failure Of
--sgotistio-s al the recent meetings Of interna-
,,cnal bankers In London and Paris. an attempt is
be,ng made at Peking quickly TO close the Hankow
-sHursv loan by increasing the amount so as 10
siye America equal participation and not reduce
the original allotment TO the other three powers
r-sa, Britain France and Germany. This arrange
.,snt was agreed TO by the Chinese Foreign Board
:, Saturday and the four days negotiations ended
With the consultations Of foreign bankers to-day.
when the fnanciers telegraphed TO their principals
recommending that the above settlement be ac-
csvted Chang Chi Tung, the Grand Councillor. is
not vet committed 10 this plan but all the other
Chinese officials regard the arrangement favora-
BY.
peculiar situation in connection with the loan
has arisen IN the last few days II was caused
nv dispatch which was sent TO the Chinese For
sgn Board on Saturday by ". Korostovitz, the
Russian Minister ~ China, on instructions from
s. Petersburg. The dispatch asked China, pro-
yided more money could be used in this OF other
loans TO admit Russian capital, pointing out that
IS China was borrowing abroad, Russia should
~. m, orr-+ or bs-1 i0f IN
tie Zsngtse-Kiang region. Foreign bankers here,
ignoring their own dssensons attribute Russia's
action 10 the policy Of President Taft
Russian Ananciers here notified the other foreign
hsnkers OF this action, and simultaneously NJ
Eotostovitz assured Henry P. Fletcher, the Amer
icsn -chsrgs d'aTaires at Peking, that vhile Rus
ss wished 20 participate, she would make no
ozim and had no intention OF protesting against
he present loan. SO that the agreement will not
% hsmpered
Nevertheless. the foreign legations and bankers
srs showing special activity. in view Of the fact
that any recognition by China OF Russian repre-
ssntztons would have the effect Of validating the
Austrian proposals made last April, and the Jap
sness claims made in 1910. These claims hereto
fore have been held in Allowance by Great Britain.
though the German bankers threatened TO support
ne Austrian proposals when America protested
sgsnst not receiving equal participation in the
Hankpw loan On account, therefore, Of the in
Ssction Of sr undue political importance into the
question the bankers attending the meeting here
MS morning hold that the situation Is dangerous
TO finance AZ Peking
s. Petersburg, July 3--Russia is not expected
10 act energeticaly in the matter Of the Hankow
railway loan. The demand for participation orig
mated in the application of the Russo-Chinese
rank ar Peking, which the Russian government
zen bound 70 support as 4 mater Of form
lTTerr -
<se as is resources are now limited. the bank
1hcesong reorganization al the present time. A
s'msn financial group. acting through the North
eln Bank Of St Petersburg. is making = strong
eOoft 10 get control of the Russo-Chinese Bank as
'sloaole commercial weapon in Northern China