New-York tribune., 1910-05-25
LOAN FOR CHINA SIGNED.
America to Have a Part in the
HankoW Construction.
ENGLAND'S LION SHARE
Doubt Whether the Empire VIII
Accept Agreement of
Powers.

Paris. May 2i--1he t1anhoN anu 0@c
Chuen Railway loan agreement was
signed to-day. The signers are repre-
eentatives Of financial groups OF the
I-nitel States, France, Great Britain ana
Germany The agreement provides for a
loan 20 the Chinese government OF sSo'-
100000 for railroad construction.
A formal statement issued by the rep
resentatives of the financiers announces
that ..the basis of the agreement is ab-
eolute equality between four groups" in
which the Americans, with the consent
of their colleagues, are included.
The statement adds the agreement as
sured an equality OF treatment in the
matter of tenders for supplies.
This latter condition is regarded as an
especial cause for congratulation by the
Americans. who consider that they
emerge from the negotiations splendidly'
considering the situation when they en-
tered
Financial equality and equality In the
treatment in the matter of supplies taken
by the purchasing agents were obtained
and, in addition, the American group op-
tsjns a sub-engineer, the construction or
two hundred kilometres of the I-Chang
branch, and will have the building of
four hundred kilometres of the extension
&c. Sze-Chuen IL the latter line is carried
out.
The British group however, won the
chief victory in successfully insisting on
having the engineering rights for the
Hankow-Canton sections. The Germans
retain the engineering rights for the
"Hu-Peh loop" except for certain sub
engineering rights which were ceded to
the Americans.
In the matter Of materials and facln-
ties for manufacturers TO present tenders
the four countries will share alike.
Now that the agreement has been con-
rluded considerable doubt is expressed
whether the Chinese government will ac-
cept the loan. Last fall when the British
group blocked the negotiations Picking
was most anxious that the plan should
be put through Since then, however,
much opposition to the employment Of
foreign capital has developed in HUMAN
Province and il is feared that the recent
snti-foreign outbreaks there may in
fuence the government TO change its
attitude The financial negotiations were
conducted for the Americans by Henry
P Dawson. z. c. Grenfell, Herman Har-
5es. jr. Paul NJ. warburg. bankers, and
Willard d. Straight, formerly American
Consul General at Moukden, China.
Al the cffice Of J. p. Morgan & Co. who
have represented the American syndicate
IN the negotiations which have been going
Int Fnr
interests and the English. French and Ger
man bankers in the matter Of the Hankow
and sze-chuen Railway s3o,ooo,ooo loan,
satisfaction was expressed that the agree
nent had been finally signed. but 1T was
said that all details would have TO come
from London, as the negotiations had been
conducted through the London office of the
firm. ard nothing was known here beyond
what was contained in the cable dis
patches. ---
The controversy over the placing of the
loan has been going since last spring,
the chief cause for The delay having been
unvillingness 10 admit this country TO an
equal share in the loan. Under the terms
Of the original agreement, announced on
June s. 1902. each country furnishing the
capital for the railway was to have charge
Of the work Of constructing a proportionate
mileage of the road. China proposed TO
borrow the amount needed to construct the
railway, s27,500. 000, from a syndicate Of
English. French and German bankers. This
would have distributed the work equally
among France. Germany and Great Britain.
AS soon as Secretary Knox was advised
Of the proposed loan, however, he insisted,
at President Tafts direction, that the
United States should have an equal share
fr the loan. China was willing TO allow
Germany and Great Britain were not, as
the admission of the American bankers to
the syndicate would mean the division of
the loan into quarters, instead of thirds,
and would reduce the share of each from
about ss,cooooo TO less than 100000. So
determined was President Taft however. TO
have the bankers Of this country share in
the loan than he cent a message direct TO
the Prince Regent in their behalf, and re-
ceived from the Regent assurace that
Americas equal share in the loan would be
favored by China Accordingly new
agreement was arranged by which the loan
was increased TO S50,0ooyooo and the United
States admitted 10 a quarter share. The
new agreement also placed the Americans
on an equal footing with the foreign groups
s. the matter OF supplying material for
both the sze-Chuen and the Canton lines
and the branches and appointing subordi-
nate engineers. They have also one-half Of
ELL future loans Of the Sze-Chuen Railway
and its branches. with corresponding ad-
vsntsges
Controversies arose, however, over the
subject of these future loans, which
dragged out the proceedings until late last
November when IL seemed that by con-
cessions on sii sides agreement was TO
be reached Further delay was caused by
the French bankers insisting that each ma
fion should have an equal share in con-
struction. and negotiations over this and
minor points continued until yesterday.
The Hsnkow and Sze-Chuen Railway is
intended TO develop the great trade of the
Ysng-,se Valley. 1t will tap the heart of
China, connecting with the north and south