New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-14
CHINESE LOAN HELD Up
BY RUSSIA AND JAPAN
st. Petersburg and Toxic Unable
to Obtain Needed 100000
900 Without Foreign Aid.
CONFERENCES SUSPENDED
Powers Named Think to Obtain
Abroad Funds To Be Used TO
Lessen Prestige Of
Actual Lenders.
fBy Cable 70 Tho Tribune !

London June 13--Another meeting OF
the powers to consider the S@O0o0nOOc
Chinese loan has been called for the end
of this week IN Paris, though it is con-
sidered likely that no actual conferences
will be held until the first of next week.
This is in order to give the Russian rep
resentatiyo time to return from St.
Petersburg. where he has gone TO com
municate to his government the terms
which form practically an ultimatum laid
down last week by the United States, !
Great Britain, Germany and France, I'M
der which the participation of Russi'
and Japan in the loan will he permitted.
The Japanese representative has been
communicating 10 his government by
cable the hitch in the negotiations which
occurred at the last meeting over tvs
provisions in the draft agreement sub
rnitted by the four powers which first
formed the loan group. while Russia an
Japan insisted on being included. After
powers endeavored to lay down condi
lions for the loan which would Infinitely
strengthen their position in China and
make their influence far more potent
than that of any other power or COM
binstion which could be formed agains,
them. At.the same time it is recognized
that they will have to seek outside their
OhuH no
powers they have been attempting -
overreach. the money necessary TO take
up their share of the loan.
Equal Division for Loan.
In the agreement come to by the
United states, Great Britain, France
and Germany a provision has been in
serted preventing any one from obtain
ing the sinews of war from the others
and tbes turning the weapon thus oh
tanned against those whose help haE
been received. 1t has been agreed that
the loan shall be divided equally among
the powers at the rate Of S15,N0,pb
each, but 1t is provided that if France,
for example, cannot herself supply the
entire share Of $40, 100000, but is com
PEELED 10 get part Of the money from,
say, New York, the money furnished nv
the United States shall be credited to !
that country and not TO France and
hence strengthen the position IN China !
OF America the country which actually /
supplied the money, and not France. In |
other words, the power unable 10 take !
it's full share Of the loan must relinquisil /
without reservation the part it does not
take TO the power which does furnish T.
the money.
This was the irst provision in the
agreement a. which Russia and Japan ,
baked when admitted 70 participation. /
They were taksnrin on an equal foot
ing with the four original powers, and !
the loan was accordingly divided into six
parts Of sJo,o00o0Q each. Russia and
Japan however realized At once that
they would he debtors TO the other ma
tions as large borrowers in the worlds
money markets IT, the safeguard de-
scribed remained in the agreement. They
lose most of what they hoped to gain by
being included in the loan, and hence
sought 10 have the agreement changed
80 as 10 provide that If -. Petersburg
and Toxic came to London ion part Of the
S5o,000,000 the money would be raised
here by Russia's and Japan's agents. and
not By England's agents. In this way
Russia and Japan would be ia position
70 call upon the United States. Great
Britain. GERMANY and France to furnish
means which would be used 10 increase
IN. prestige of Russia and Japan in
China. The proposition was. of course.
psremptoriIy refused by the four original
powers.
New Proposition Made.
The second proposition of Russia and
Japan was presented by them IS q new
fea ture OF the agreement According 10
The original plan. the money is 10 be
exp.nded under the supervision of the
four lending powers In a manner and for
,u-poses satisfactory 10 a ma jority Of
.hs said powers. This is considered a
suSicient safeguard against possible at
.empts nv any power to steal 2 march
an the others as 1t would take three
powers 10 determine any question that
might arise. &
Russia and Japan immediately asked
FOR special conditions respectively with
regard 10 Mongolia and Manchuria.
Russia recently entered Mongolia, while
Russia and Japan divide Manehuria. The
two powers asked for a provision that
no money should be Used in Mongolia or
IN Northern Manchuria without the con-
pent of Russia and none IN Southern
Manehuria without the consent of Japan |
The four original powers. after much
consideration. drew a new Article in
the agreement which as finally drafted
provided that any one power by herself
might veto any proposed plan Of using
money in any section or district. TO
this. however. Russia and Japan de-
INJURED They wanted the provision to
apply only to Mongolia and Manchuria,
but were defeated on both points. Rus
STA and Japan then withdrew from the
meetings Russia's representative has
gone TO ST. Petersburg TO consult with
his government, and the japanese repre-
sentative Is cabling Toxic.
AS the United states, Great Britain.
France and Germany are standing firm
~ together in the matter, Il is considered
likely that Russia and Japan win consent
70 the terms OF the agreement as laid
down when the negotiations are resumed
a.