The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-10-25
Difficulties Due Largely to
Opposition of France and
Germany.
FAILURE WILL MEAN
SETBACK FOR KNOX
Attempt Has Placed New Com
pleMon Upon American
Oriental Policy.

Notwithstanding the apparent inGif-
ference of the State Department, it is
now evident that Secretary KnOx's Chr
nese loan scheme is perilously ne6r the
rocks.
The difficulty is due TO the opposition
OF France and Germany principally al
though there Is some indication on the
part OF the Chinese themselves Of ten
dency TO protest against the division Of
spofls among the financial interests Of
the four powers.
Secretary Knox can scarcely be said TO
have given much direct attention 10 the
Oriental situation. inasmuch as he has
secluded himself in his summer home
at Valley Forge. Assistant Secretary
Wilson, the only other official OF me
department who is responsible Tor the
direction OF affairs in the orient mas
been spending much OF MS time IN the
hospital. He VIII return from the west
today, where he went on speech
making trip In addition, the crane epi-
sOde did not pave the way Tor an al
justment OF the Chinese difficulty
Plans at Standstiu.
For some time the negotiations for the
loan have reached what may be cOnsid-
cred an impasse. France and Germany
both object TO allowing the American
bankers a share on the ground that
they would not be receiving their pro-
portionate shares IN case the loan We're
increased to admit the United STATES.
The point OF dispute is not the amount
of the loan, so much as the division or
work among the nations and the sup
plying of materials
Although this feature is not a matter
for the Interference Of the State De
partment, Secretary EnOX has stood out
strongly for it. The consideration is Of
the utmost Importance to the steel COM
panies who expect to supply the ma
terial, just as the loan itself is OF i'm
portance to the bankers who expect to
supply the money.
Whether or not Secretary Knox viii
be successful in securing a slice of the
pie for the Wall Street bankers and Uhe
steel companies remains to be seen
Since the first favorable announcement
some months ago he has been slngular1y
quiet, and ia the meantime the prOpO-
sition has ensnarled itself in an inter
national tangle.
The Lineup.
Great Britain is lined up with the
United States against Germany, and
China may see rs to revoke It's decision
altogether and build the railroad her
self The cupidity of the powers has
given rise TO a decided opposition 10 the
loaa scheme among the Chinese them
selves
Failure in this undertaking viii mean
a serious setback for Secretary Knox S
policy Of commercial aggression II the
Orient The scheme is a marked de-
Darture from the policy of the last
Administration. Secretary Root regard
ed China as an amorphous mass and
confined himself TO protecting the inter
est of American exporters In the way
of keeping the door open In both bis
and the Hay administration Of the de
partment the United States kept sin
qularly clear Of concerted action with
other powers, preferring 70 deal dl-
rectly with China itself.
In New Light
The loan attempt has placed 4 new
complexion on the American Oriental
policy. Heretofore the United States
has taken the stand, tantamount TO q
warning to the other powers. that China
was not to be divided This was the
occa sion for the Hay note, guarantee
ing the territorial integrity OF the en-
pire, and the persistent care with which
Secretary Root watched the operations
Of Russia at Hardin. with the view "a
preventing any assumption OF the func-
tons of sovereignty
Secretary Knox Is the first 70 come
our openly in favor Of securing a par
of the commercial spells for the bank
ing interests.