New-York tribune., 1909-06-14
CHINA PROJECT
WASHINGTON GR1TIFIED.
State Department Issues Statement
at Presidents s Suggestion.
From The Tribune Bureau J

Washington June l3.-The State Department
made public to-day statement expressing the
qualification of this government at the fornauoh
of "a powerful and responsible financial group 10
enter the important field of investment in China
This statement issued at the sugsestloh OF
President Taft. who is deeply interested IN pro
noting the commercial relations OF the CHl'0u
States and the Far East.
The State Department, il IS declared y GYMS
enterprise the cordial support which II Is eNVl
ready to give to all legitimate and behellcIal <A'
lean commercial and financial undertdkiHss III
foreign countries The statement continues tha'
such undertakings to be encouraged because
Of their direct benefit to American commerce anu
to international relations
There has been great activity shown in railway
building in China since the Russo-Japahese va
Concessions have been granted by emma 10 Din'
ish German and French financial interests 10 pulI''
railway lines, and money has ALREADY been DOT
rowed abroad for the repurchase of the illie o
tween Peking and Hankow from the hhaholers 0P-
Grating it. The statement adds:
In 1904 the American Minister az Peklng oe on oe
half OF American capitalists who desired ojice GILES
sion to construct the HankoW- -Sze-SEueh M reniv
approached the Chinese Foreign OlIT Ott cn,,ld not
he received the that II emma SoIId p+ish
onitaIists would be notified and be given the prior
right supply the sum needed ,oI,ed he
American government and informed it that M BTttSn f
rarsIists were desrous of opening negotiaions Ior
fTrrnishinr a loan to construct this railway me
ambassador informed that no AIietle AZ C,,sr
talists found it convenient at the time 10 C0inar,
ate win the British interests in the prehnInas
NEGOTIATIONS In an agreement winch was T,.tt
into on October 2. 1905 bv the French anu LtISHi
financial groups cooperate IN securing .rtca,
I"ans IN China provision made for ArneTICaE mean
participa the American capt9nfs{jSb t95f,jsb Ind
allowed twelve months TO notify me - the
French groups Of their desire to participate IN 'he
loans.
Although American capitalists did not. oWHs "
financial conditions in this country, md II con-
venfent to accept the British invitation 10 90
onerate with the British and French groups IN i'''
In endeavoring to persuade China 10 make TOT
eIgn loan for the construction Of the Hanko"-S@e-
Chuen line, the department regards 1t as fortunate
that before the negotiations we're terminated 'he
organization OF the powerful American syndicate
has made 1t possible for China to fulhl her agree
rnent and grant to the United States participation
in the loan in accordance with the Wal WI Pu
promise OF 1894
The Chinese government was informed OF 'Iie
formation of the American group prior 10 the recent
tentative initiating OF the loan contract on June b
Although American capitalists did not take up this
matter in its formative II is not felt at the
deuartnent that the interested parties VIII con-
tend that one Of two joint concessionaires can de
terr1tne the period Of time within which the right
Of the other may lapse. is Il believed that hav-
ing been informed Of the readiness OF American
CAPITALISTS 10 take part in this loan the Chinese
government will attempt TO avoid fulhng Its clear
obligation to the United States