New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-20
Goes Behind the United States,
Great Britain, France and
Germany to Offer Loan
to China.
ASKS TO BE SOLE BANKER
Move Explains Tang Shao-yi S
Flight-Czar's Government
Ready with $5O,oOo,ooo
and Promises Remain
der as Needed.
rRv Cable to The Tribune. ]

London, June III he "a 40 wa
ference discussing the proposed S5oO'-
10000 loan TO China broke up to-day
with the six powers commemorative
United States, Great Britain, France,
Germany, Russia and Japan-facing
most serious situation.
Russia. which seemed week ago to
he in an almost impossible strategic
nosition, is now apparently holding the
whip hand.
II is learned that Russia, objecting 10
the refusal Of the powers TO grant her
privileged position in Mongolia and
Northern Manchuria, has on her own ac-
count offered an immediate advance TO
China Of $JO,OOO,0OO with the promise
that she will provide the remainder OF
the S3OO,OOO.OO0 from time TO time as
needed to finance the new republic.
Arthur Grenfell head of the London
banking house Of Grenfell, Morgan &
Co. and Henry p. Dawson, Of J. P. Nor
gan 4, Co, OF New York. are hurrying
hack 10 London, while Great Britain, the
United States, France. Germany and
Japan are keeping hot the cables to Pc
king. striving 10 head off this latest
move by Russia TO become the sole sup
mort OF China in her desperate financial
plight. and thus make Russia all power
ful in the new Nongolian republic. to
the exclusion Of the remainder Of the
Western world.
Russia's Methods Devious.
The situation which thus developed in
Paris to-day offers the required eXplana-
ton of the fight Of Premier Tang Shao-
81 from Peking. and also explains the
Presidential mandate issued yesterday
granting five days sick leave TO the
Premier. 1t is but further evidence OF
the deviousness Of Russian diplomatic
methods and Of the small degree OF con-
fdence to be placed in her statements.
Japan especially must feel chagrined
at the latest turn OF the loan negotia-
tions, for the willy Jap, who has been
the alder and abettor Of Russia in her
demands for special privileges in China.
now finds herself in position in which
he stands a strong chance of losing much
Of the power and control in Southern
Manchuria which ne fought a long and
costly war TO gain.
Russia has played clever trick on all
the powers, but il she accomplishes her
end the effect will be more severe on
Japan, her ally of week ago, than upon
any of the others.
When the conference last adjourned
the Russian and japanese representa-
tives bore away the ultimatum Of Eng
land, America, France and Germany
that Russia and Japan should have
no special privileges in Mongolia or
Manchuria- They had asked for the
exclusive right TO control the use
of money in those sections Of the re-
public, and this request the four pow
ers refused. The powers also required
Russia and japan TO relinquish without
reservation any part Of their share Of
the loan which they could not take up
by money drawn from their own Golfers.
Ultimatum Was UnpaIatable.
Both requirements were unpalatable TO
the Russian and japanese representa-
tives, who sought TO make use Of money
raised by them in New York, London,
Paris and Berlin to increase the prestige
and power Of Russia and japan in
China. They said they must consult
their governments, and the conference
od;C,,r,o1 ~ s,i,,o +Iy,na For coneultat tion
From developments to-day it would
appear that Japan has acted in good
faith during the time Of the adjourn
ment but the Russian representatives,
hurried 70 ST. Petersburg. and 1t is now
learned that il was during that visit that
the Russian government finally decided
10 make its offer to become China's sole
banker. This was the reason why the
consultation OF Russia's representative
with his government was necessary, and
this is Russia's reply TO the ultimatum
Of the powers.
This is also the explanation OF Tang
Shao-yrs flight from Pcking and Of his
five days sick leave. 1t was 70 negoti-
ate with Russia, and it explains why the
four powers yesterday hastily loaned TO
China $2,0OO,OOO 10 tide over immediate
expenses.
japan. which stood by Russia in the
latters original demand for special priv
ileges has, in face Of this new situation
and Of her betrayal by her former ally.
accepted the ultimatum Of the four pow
ers, and Is joining them to prevent China
from accepting the offer Of Russia.
The conference broke up to-day with
every appearance of a final ending. A
renewal Of the negotiations must depend
on the answer Of China to the demand Of
the powers that the Russian offer be re-
fused