New-York tribune., 1909-06-22
CHINA KEEPS PROMISE
.fERICAN BANKERS TO
GET SHIRE OF LOAN.
st0te Department ReceiCes 4ssur-
anoes from Picking, Berlin
and Paris.
From The Tribune Bureau.

,,-sxhfnEtor. June o1-Jnited States banking
,-+s-.sts will have an opportunity to participate
!, +be loan Of S27.5oG.00o which the Chinese
-.,s-nrnent had practically agreed to divide be-
sn,.en financial institutions in Great Britain
,,.r-,arv and France for the purpose Of rail-
-,s6 construction. This Was made certain to-
ray when the State Department was informed
that the Peking government was entirely willing
"a keep the promise made TO Minister Conger in
,sos. that American interests would be consult
ed uhen money was necessary 10 carry on the
--,,ess Of industrial development China has
:, no time signified any intention OF breaking
.,s- nrorlise but when she began the negotia-
lions for borrowing S275oo.000 no United States
hsrkers were consulted. nor was the State De-
rsrtnenr apprised of her Intentions
Secretary Knox learned through the Ameri-
,sn legation in China that such negotiations
we're il progress, but he did not dream that the
Ioan vas practically apportioned until he was
so Informed by the British government. through
-sn-esentations made by Ambassador Bryce
Re also learned that the British bankers feared
ttat the participation Of American fnanciers in
-be loan might endanger its consummation- Mr..
Knox promptly caused a protest 70 be fled at
peglng and through Ambassador Reid in
formed the British government Of the course he
hs5 taken. The representations made TO the
definite portion Of the material TO be used in the
.rrension OF the railroad should be,of American
origin. and also that q specific proportion Of
American engineers should be retained The
conduct OF the negotiations at London has elic-
.rs6 the highest encomiums Of the diplomacy Of
Nj Reid.
The next step in the negotiations consisted. as
has beer told in these dispatches. Of call from
Nr MitchelI-Inres. British charge, who. on be
half OF his government expressed the hope that
the United States would not deem ii necessary
TO reopen the entire negotiations with Peklng,
which il was feared would greatly delay the
consurnr1ation Of the loan Mr. Mltchell-Innes
Informed Nj Knox that he was authorized. on
behalf Of the British. French and German fnar'-
ciers. 70 say that they would welcome the United
States as 2 participator in the loan Mr.. Knox
replied that II vas the desire OF this government
70 extend every courtesy and accommodation 70
the fnanciers who had negotiated the loan at
PekinE and that IL they could insure TO the
United States the utilization Of the specified
proportion OF American material and engineer
ing talent there would be no further insistence
D yttis government on the protest fled at
Peking- Secretary Knox has received word from
both GERMANY and France that no obstacles
will be raised his plans by those governments
The action of the Chinese government in Of
se-fug . part OF the loan TO American interests
=, = source os g-atihcation 20 Secretary Knox.
sn5 he regards IL as merely preliminary to
rrs extensive investment OF American capital
& China The benefit accrIng TO American
tzde from such investments has already been
pairted ont in these dispatches. The State De-
ps-tnent regards China as the most fruitful
fed for increasing its trade relations. and 70
assist II the industrial development Of China
vii Be one OF the chief policies Of the present
administration
Il only remains NOW for the British govern
ueat 70 indicate that the suggestion Of 6ecre-
tar Knox has been complied with. or for his
suggestions TO be accepted at Peking. TO make
possible the conclusion Of the loan.