The Wenatchee daily world. [volume] (Wenatchee, Wash.) 1905-1971, 1909-06-18
]. 5. SUPPORTS 4
LOAN FOR CHINA
STATE DEPARTMENT GRATIFTED
AT FORMATION OF FINANCIAL
GROUP TO ENTER FIELD OF
INVESTMENT IN THE ORIENT.

Washington, June 18.-At the
suggestion of President Taft the state
department issued a statement ex-
planning the attitude of this govern
ment toward the promotion of rail-
way construction by American finan-
ciers in the Chinese empire, because
Of the great activity shown in rail-
way building in China since the Rus
|so-Japanese war. Concessions have
been granted by China to British,
German and French financial inter-
tests to build railway lines, and money
has already been borrowed abroad
for the repurchase of the line be-
tween Picking and Hankow from the
financiers operating it.
"The government of the United
States" the state department says,
els much gratified at the formation
of powerful and responsible Ameri-
can financial group to enter the i'm
portant field of investment in China,
and is giving to their enterprise that
cordial support which the department
of state stands ready to give all le-
Ultimate and beneficial undertakings
in foreign countries Such undertake
ings are to be encouraged because
of their direct benefit to American
commerce and to international rela-
lions.
October 2, 1905, French and Brit
lish financial groups signed an agree
ment to cooperate in securing an
agreement to cooperate in securing
various loans in China In this agree
ment provision was made for Ameri-
can participation, and period of Il
months from the date Of signature
was named asst he time within which
American capitalists might notify Of
their desire to share in their actlvl
ties.
Funds for Railroad.
"The preliminary contract, which
was initiated at Pekin on June 8
provides that the British, French ant
German groups shall furnish Chin;
; with funds to construct the Canton
Hankow line and the Hupeh section
: of the proposed Hankow-Szechuel
railway.
"Although American capitalists di
not. owing to financial conditions Il
this country, find it convenient t
accent the British invitation to CO
operate with the British and Frenc
groups it is fortunate that before tn
negotiations were terminated the or
ganization of this powerful America
syndicate has made it possible 10
China to fulfil her agreement AM
grant to the United States participa
ton in this loan in accordance witt
the Wal WI Pu's promise of 1904.
Agreement Is Hoped For.
"The department looks FORWARD
with confidence to a satisfactory ar
rangement between the American
group and the German, British ant
French financiers."
The Chinese government was no
titled of the formation of an Ameri
can group prior to the recent tenta
tive initiating Of the loan contract OF
June 6. Although American capital
lists did not take up this matter il
It's formative stage, it is not felt
the department that the intereste'
parties will contend that one OF tw'
Joint concessionaries can determin
the period of time within which tn
right of the other may lapse. nor is !
believed that, having been notified o
the readiness of American capitalist
to participate in this loan, the Chin
csc government would attempt I
avoid fulfilling its clear obligation
to the United States.