The Birmingham age-herald., 1912-07-28
CHINA OFFENDED BY UNITED STATES Much Criticism of the State
 Department ABOUT CHINESE LOAN China Has Notified Uncle Sam That Negotiations Are All 0ff-Cap- tain Dollar on Mysterious
 Mission
ABOUT CHINESE LOAN
By SIDNEY Espny

public of China Those in a position to know blame the American state depart ment and it's tactics in supporting Euro pean bankers in demanding favorable terms from China. The six nations par ticipating in the contemplated loan, United States, Great Britain, France, Germany, Russia and Japan, have been told it is said by representatives of the Chinese government, that the bids for the loan have been permanently rejected. While diplomats do not charge that the United States is the responsible party, it is more than intimated that the policy pursued by the American state department has had great deal to do with the action taken by the Chinese republic.
 New negotiations are pending in Europe to finance loan. and as far as diplomats are willing to state, no negotiations will be entered into in this country. This means that American bankers have been told that under no consideration will the Chinese government seek money in Amer ica.
 Travellers who have spent much time in the eastern republic are at loss to | understand the action of the state depart ment in not recommending to Congress that the Chinese republic be recognized in the sisterhood of republics. The failure of the United States to do so will in all probability cost the United States the friendship of the Chinese.
 Whether the apparent indifference of the United States in this matter has been a contributing cause in deciding China to reject the contemplated loan is not known, but that the United States has lost an opportunity in which to renew it's friend ship with the Chinese is a fact.
 Secretary Knox is watching with Inter est the trip of Capt. Robert S. Dollar of San Francisco, who left New York several days ago for Glasgow, on what appears to be a mission of far reaching import ance, both to the United States and to China. The chief purpose of Captain Dol lar. 1t is reported, is to enter Into new negotiations for the Chinese government for a loan. He has admitted that he is going to Europe as a friend of China, ' but refused to say whether or not he had been commissioned by the Picking govern ment.
 That China can obtain all the money she may wish in financing the early stages of the new republic is admitted by the Sldle departments. ottItldiN 1AlADAy HOW- ever, is at a loss to understand why any hubbub should be raised and feels that the criticism cast upon the policy of the state department is unjust
 In finding a place for the bankers of the United States among other nations to participate in the $300. .000000 loan, Sec retary Knox thought that a great diplo- matic stunt" had been accomplished by American diplomats He reekoned with ntl his host bnWaEpr The conditions of the loan were such that China re- jected the offer and in no equivocal words plainly stated that her national dig nifty has been offended The United States being party to the loan was par ticularly blamed in trying to foster a scheme which meant all but the ruin of the Chinese republic. Instead of pointing out the danger to the infant republic as it should have done. Chinese statesmen claim that the United States in the guise of a friend, was in reality lending itself to the schemes of European nations who desire the partition of what was the Ce- lestial empire.
 Captain Dollar, who has had extensive trade relations with the Chinese and is intimate with the influential men of the Chinese republic, lays the blame of the failure of the loan also at the door of the United States. He says that the United States has lost a great opportunity in not recognizing the new republic and that the people there have shown their readi- ness for government modelled after the institutions of the United States. T left China" he stated, convinced that the republic has come to stay; that it rests upon a permanent basis and that we long ago should have taken the lead in her lasting friendship by according her recognition"
 Diplomats here are rather placing the blame of the failure of the United States to recognize China on Minister Calhoun. He is reported to have advised the state department against any such action. In early reports to the department the inin- ister indicated that he was mot fully con vinced of the stability of the new Chi nese republic and intimated that it was for this reason that he had not strongly recommended immediate recognition. Since then he has been reported as say ing that he is convinced that the Chinese republic has come to stay, but so far as the records of the state department show. no recommendations of this nature have been received.
 Some people coming into touch with matters at the state department are of the opinion that the present administra- ton is paying too much attention to the opinion of European countries in this par ticular regard. It is pointed out that the desires of European countries has always been to divide China and to silence Ja- pan, Rusisa and the United States plans were to be perfected to deal out slices of the republic to these countries. Here is where the United States lost the respect of the Chinese. As a friend and in honor bound. the Chinese believe that the United States should have immediately broken off all negotiations with foreign countries and announced to the world the nefarious schemes that were matched to control Chinese resources for 25 years to come.
 Eastern experts in the consular service predict that as their next door neIghbor the United States would do well to culti- vate China's esteem. The bulk of Orien- tai trade should be with us, they point out, and now is the ,.me to land the contract"
 Whether Secretary Knox is playing Q deerer game than appears on the face of things. of course is not known, but the gossip at present is that it would best conserve the interests of the United States to assure China of her greatest friendship.
 Hard but Honest
 From the New York Telegram.
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