The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-06-28
oHINA's TROUBLED FINANCES

Our dispatches from Peking, China,
yesterday morning, spoke Of fresh
rupture. in the financial negotiations
which have been expected to result
in loan by tde six powers in inter
est, 10 wit. the United States, Great
Britain, Germany, France, Russia and
Japan, which have been supposed to
Join in a pool for the lending to China
Of $300,000,000. These negotiations
have been held up n number of times
first, by the bad faith Of the Chinese
Finance Minister, Tang Sbao-yi. His
original proposition was acccdcd to by
the powers, with the condition that the
powers themselves should have a check
ing agency against the waste or graft
of the money. This condition had
been recognized by China, and was rec
ognized also by Tang Shao-yi, until it
came to the concluding point of the
negotiation when he objected (prob
ably melted by Russia) on the ground
that China is an independent nation
and should be allowed to handle her
money in her own way, without inter
ference. Knowing, as the powers did,
that this meant waste and graft, they
objected. They would not furnish the
money to have it frittered away for
nothing so that the Chinese people
might be able TO say later on that they
Then Russia took an independent
course, apparently backed by Japan.
This contemplated and resulted in the
lending to China of a few small sums
of money, 100000 and $3,0O0,000 at
time without conditions, this appa-
rently for the purpose Of discrediting
the condition fixed by the powers for
the supervision Of the expenditure Of
the money as loaned The purpose of
Russia in this undoubtedly was to give
herself free hand IN Mongolia and
Manchuria, and Japan is supposed to
have co-operated with Russia in this
policy and for the same purpose.
When the negotiations were renewed,
they were with the four powers, Rus
sia and Japan being eliminated, and
States, Great Britain, Germany, and
France should each furnish SIS 100000
of the $500, 100000 loan, and that
neither power should borrow any mon
ey for the purpose Of making up its
quota, and that If any power did not
have the 100000, it should decrease
the amount OF its loan accordingly,
and the other powers would make up
its deficiency. All went along prosper
ously for a time on this basis, when
all at once Russia and Japan objected.
They wanted TO share in the loan, but
did not want TO be bound by the condi.
tiou that they should loan their own
money or that either one of the two
should decrease by the amount
that it might fall short of its
quota the money IL would lend and the
portion SO decreased should go 10 the
other powers, They wanted their full
proportion OF the loan and wanted 10
raise the money III any way they could.
After some negotiatiou this was acced
ed TO, and everything was supposed 10
be adjusted. In that adjustment, of
course, there remained the original
proposition for the integrity Of the
Chinese boundaries and the open door
for trade throughout all Of the Chinese
territories. These two latter PROPOSE
tions were the stumbling block to ia
pan and Russia all through. These
powers each have special interests III
Manchuria, and Russia has great claims
in Mongolia, which she has no idea of
giving up and viii not give up except
under great stress.
1t is undoubtedly because OF these
interests in Manchuria. and Mongolia
that the fresh complications have aris-
en- with respect TO this loan, and un-
doubtedly Russia and Japan are at the
bottom of the obstruction. 1t is prac-
tically certain that Russia is standing
AT the back Of the Chinese demand for
a free hand In spending Cor squander-
ing) the money that is borrowed. 1t
Is practically assured, also, that the
great nations that are TO furnish the
money will not allow the money TO be
wasted OF stolen, and that in order TO
prevent this they Will be obliged to
have an oversight of the expenditure,
otherwise they Will not lend the
1t seems clear that Russia and ia
pan will be able to defeat all negotia-
tions by the other four powers on the
basis insisted upon. They obstruct be-
cause thev want TO maintain their en-
and advantages in Man
churiu and Mongolia, which the four
great powers do not agree TO and will
not confirm There are but two pos
sibIe means out of the difficulty. One
is the giving up Of the loan altogether
and letting Chinese bad faith, cooper
taing with Russian bad faith. Japan
thereto, break off all
the negotiations and prevent the loan.
The other is for the four great powers
at interest TO proceed and lend China
the money without taking Russia and
Japan into the pool We Judge that
this latter viii he the outcome Of the
whole matter, unless Japan and Russia