New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-09-12
Secures q Chinese Loan Agree
ment While Their FlnanClers
Are Insisting on
Supervision.
PEKING MUCH AGITATED
Wendell Jackson, Who Put
Through Deal with Chinese
Government, Is Trying
to Raise Millions
in London.

Financial circles were greatly inter
ments in the endeavors of China to get
q large loan to rehabiitate her finances
Recent cable messages from Peking
and London have shown, much TO the
surprise of the members Of the six pow
or group, that even while China was
negotiating with the six power group
for q $500, 100000 loan, Hsung LANG,
The Chinese Minister of Finance, was
busy negotiating with other interests
for SJOOO0.o00 loan, and went so far
as TO sign a provisional contract.
These cable dispatches stated that
an agreement for a loan to China of
s5o.O0O,000 at per cent for forty years
had been signed on August 50 by the
Chinese Minister in London. and rep
resentative of Lloyds' Bank. The loan
was secured upon unpledged revenue.
chiefly the salt duty; IT was 10 be free
Of control and supervision. which con-
tention had proved an obstacle TO the
loan by the six-nation group.
II is this contract, with the high
hopes held out to China, which was
responsible for the Chinese obstinacy
in negotiating with the six power group
and the failure OF those negotiations.
II Is now known that on July l. a
certain Wendell Jackson, an American.
cabled from New York 10 the Chinese
government. saying that ne represented
a powerful syndicate, which was ready
to advance China Immediately $4,000.
0UO and as much more as was needed
on the most advantageous terms. He
asked the Chinese government TO in
struct Liu Yuk Lin, its minister in
London, TO conduct the negotiations
and give him power to sign a contract.
Minister Signs Contract.
On July 6 Jackson received cable
message in reply 10 his, accept
ing his proposition. Another cable,
received July ~, stated that HsunY
Liang had signed the provisional con-
tract in Peking and that on July II
cable instructions and authority would
be sent 10 the Chinese minister in
London.
Meanwhile Jackson found it inpossi-
ble TO raise money through American
bankers. who not only objected to the
proposed terms Of the contract, but
we're unwilling to antagonize the Nor
,rfa In Ia
power group syndicate.
The United States government also
refused 10 encourage Jackson's scheme,
and Jackson sailed for England on July
lG arriving there on the 23d.
A copy OF the provisional contract
signed IN Peking by Hsung Liang ar
rived in London for Jackson on July
IS. He saw the Chinese minister the
next day. and the terms of the contract
were discussed for a fortnight. by
which time, through Jackson daily
granting concessions In terms. in his
anxiety to close the contract, and China
daily demanding more latitude, a work
Ing basis was reached, and on August
II Liu Yuk Lin put in writing that his
government had empowered him 10
make contract with Jackson for q
$4,000, 200 loan.
Powers Insisted on Supervision.
All this time the six-power group,
after settling it's internal differences
over the attempts of Russia to secure
special privileges in China. was insist
ing on negotiations with China on the
foreign supervision of the expenditure
OF the loan and on the general finances
OF the government so far as they re-
continued on second page, fifth column.