Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-07-21
CHINA LOAN FOR U. S.
Prince Regent Cables Taft
America Can Participate.
"OPEN DOOR" POLICY WINS
Victory for Secretary Knox Gratifies
State Department.
MONEY TO BUILD RAILROADS
Russian Demand to Be Allowed
Share Not Seriously Considered
in Financial Circles.
MONEY TO BUILD RAILROADS

President Taft today received through
the Chinese legation a cabiegram from
the prince regent Of China stating IN ef-
feet that the Chinese foreign office had
been directed to take up negotiations
with the American charge In Peking Tor
the admission of American capital TO
participation in the railroad loan on equal
terms with the bankers of Great Britain,
France and Germany.
This cablegram was in reply to one sent
b. the President several days ago.
This assurance from the prince regent
seems to settle beyond dispute the ques-
ton which has agitated foreign and
American bankers for several weeks. The
negotiations are expected to cover only
details as to the particular sections of
the projected roads and other enterprises
which are to be pledged as security Tor
the issue of bonds. and also the exact
amount of our participation.
| rho negotiations are not likely to be
unnecessarily delayed. It Is probable that
the whole matter will be concluded before
autumn.
the loan of s27, 100 900 about to be negoti-
ated by the Chinese government on the
Hankow-Sze Chuen railroad and other en-
terprises is thus arranged TO the entlre
satisfaction of this government, assuring
the nldlNlSudHIS " eiS opN'
China.
MAY Get Quarter Of Loan.
American bankers are expected to be
.;ven a quarter part Of the loan. The
total loan contemplated by China amounts
to 100000 English pounds, which en-
braces 100000 pounds for the Hankow-
SEE Chuen portion Of the road; 2.50O,oOo
hounds for the Huran section Of the Han
lkoW-Canton line, and 100000 pounds for
| he redemption of the bonds or the Amer
| loan China Development Company.
China was told that. if agreeable. the
| United States would take one-quarter of
this entire amount. or ..T5.OO0 pounds
| To Secretary Knox, to whose urn STAND
\ in the matter success is largely due the
news was particularly agreeable The is
| sue has been regarded as an important
question with the American government.
on account of the principle involved
II means that American bankers will
| be allowed to participate in this loan as
| a principal and not in a subordinate ca
| pacity, as would have been the case had
| they consented to take portion OF the
| loan from one of the European financial
groups.
American Railroads Needed.
More or less American material un-
doubtedly will be used In the construction
of the railroad. In all probability the
building Of portion of it will be under
the supervision of American engineers.
Original American participation opens
the market for American manufacturers.
The United States secures a political
prestige which is nearly paramount.
The satisfactory adjustment of the loan
means the application of the open door
10 China In its fullest aspect-a decided
advance in the policy inaugurated by the
late Secretary of State Hay and vigor-
ously pushed by former Secretary Root
and by Secretary Knox.
The proposed extension of the Hankow
Sze-Chuen road takes that line through
Hupeh province. one of the richest in
China. with vast natural resources, and
through a territory which Great Britain
generally has regarded as her sphere of
influence
FOREIGN Board Acuuiesces.