The sun., 1909-06-17
KNOY'S FAR EASTERN POLICY
MAKING A STRONG FIGHT FOR
EXPANSION OF OUR TRADE.

, in the China's Loan m Incident Only
! with American Money VIII Follow
, American influence and Supplies.
, WASHINGTON, June l6.-ln making such
b vigorous fight, now practically won
10 obtain a share of the new Chinese loan,
Secretary OF State Knox has something
in mind of far greater moment and OF
much more importance to America
commerce abroad than" merely securing
for ooterie Of American bankers a por-
Gon OF the loan which a day or two ago
seemed destined to go TO British, German
and. Ttench fnancers. That Ameri-
cans should participate in the loan Ia
regarded by Mr.. Knox as an absolute
right, to be taken advantage Of IL American
bankers wistr-to do,so, and China has been
30 informed, but the position taken con
cerning the loan is merely incidental to
Secretary Kne1's new policy OF making
D strong fight. for the expansion OF
American trade in the Tar East.
Coupled with his representations con-
perninE> the loan Mr.. Knox has informed
China that this country expects full
bropoftionate share OF the business to
be transacted by the Chinese Govern
ment abroad in the purchasing OF sup
plies and materials for the new railways
70 bo built in the celestial empire. Also
American engineers must participate
In the building OF China's new public
improvements to the same extent as
other foreigners. The entering wedge
10 this great field Of American CONNER
oiai activity which Mr.. Knox considered
s-yet untouched is the American par
kcipation in the loan.
To-day the State Department was in
formed from Pekin that the representa-
lives Of the French, German and British
bankers now there had recommended to
their respective principals that in accord
ancewith the position tax en- by the Govern
ment here Americans should ha We their
share Of the loan. A few hours after this
Information was made public g message
was received from the American Embassy
In Berlin. IL said that the German Gov
erpment approved of American participa.
ton in the loan. The attitude OF the Ger
man Government is distinctly agreeable
10 the State Department and 1t was
officially given out that the Department is
deeply gratified. Germany has never
objected seriously TO Amer can part!oipa-
ton, but it has now developed by the
adSices to-day that Germany. did not
know OF the American agreement OF 1904
with China that Americans should have
q share of any loan issued by China.
Representatons have been made by this
Government to France and England also.
but no replies have been received from
these Goyernm ents, or at least the State
Department has not made them public.
II was given out from the State Depart
pnent this afternoon that while China
hsdnot announced any decision in regard
to The loan, the State pepaItment would
be greatly astonished should the Govern
RleSt II Pekin refuse to grant the demands
made BY the Department in this matter.
Since the beginning of the administration
of President Taft the Department has
probably not been 80 emphatic in :ny OF
its diplomatic representations as II has
been in this case When certain American
bankers agreed TO enter into the loan
project ana it was seen there was real
danger Of the entire issue going to Brit
ish; French and German capitalists the
Department demanded share for Amer
leans as an updeniable right. China
appears to accept this view. ihe state
Department considers its position IN the
matter as impregnable. ,..,
Mf. Knpx's new policy does not apply
to China alone, although he thinks that
In that country lie the greatest oppor-
t1nities for American expansion IN Ger.
tain lines. There is now being perfected
0CQ6Enc
America. American capital Will &c, to
many countries to assist in great public
works as we'll as private enterprises. In
the opinion OF Mr.. Knox, where American
money. goes there will follow American
prestige and influence as we'll as Ameri-
can materials and supplies. II Is the plan
followed by the British and the Germans
with great success. Hitherto the Gov
ernpaent here has not been inclined to
take an active part in prosecuting Ameri-
can enterprises abroad.
In the next fifty years there will be a
vast amount of railroad building in China,
and Mr.. Knox intends that America shall
have it's full share in these great improve
ments Concessions in China are now
usually given TO French British and
German interests, and French, British
and German materials are naturally used
ID building up the enterprises In it's
work Of public improvements the Chinese
Uhited States, but this country has by no
means gathered in fair share Of the
Mi China takes the course expected by
eiyirg American bankers a share OF the
new loan for s27. 500 900, these American
bankers probably will share equally with
tlseFrench, German and British financlers
getting one-fourth OF the issue. Even
II China should find herself unable to
setrace her steps and grant the demand:
81 the State Department, the failure o
American representations will not. 1t \
said; be regarded OF ultimate Importance
a. there are to be more Chinese loans
and the United States will have made i'll
position so clear that American partici'
nation in any new ventures OF China
will, not be refused. granting that tbs
present effort should not bring the de
sired results the mere agitation will b'
of benefit as it has given the State De
partment a splendid opportunity to pu
itSeif on record in such way that Chini
hSSAAfser. cannot prevent American in
tsrests from sharing in any OF its foreign.
backed enterprises.
pol;cy Of furthering all beneficial ant
legitimate American enterprises abroad
W. p. Stewart, civil engineer, now in tn
GoveFnrnent service at Memphis ha.
bSerf appointed a member OF the Hai.H
Consefvsncy Board at TientsiD. Thi
appointment was made as the resul
of efforts of the State Department +
secure American representation on tn
board Of engineers at Pekin. The ap
pointment OF American engineers to direc
work in China is considered extreinel
IMPORTANT from commercial point o
view, inasmuch as the engineers are Il
opposition 10 recommend the purchas,
of.American material for construction
work. The Ha-Ho Conservancy Boar
is already favorably disposed towar
American manufactures. Mr.. Stewar
will be connected with the improvemer
Of the Pei-Ho. a river work OF grea
Importance, as it affects both Chimes
and foreign commercial interests to
Considerable extent. Tientsin is the pol