New-York tribune., 1912-07-15
AcceptanCe Will Mean Internal
Troubles and Definitive Refusal
Will Anger the Powers.
RUSSIA STILL THE BUGBEAR
peking Anxious Lest France Be
Prevailed Upon to Follow
Lead of Ally If Latter
Withdraws.
from The Tribune's Correspondent


in the geography of this portion Of the
globe.
There is a deep suspicion on the one
hand that Russia is endeavoring TO play a
lone hand with China, with the intention Of
disrupting the International syndicate OF
bankers. and on the other that Russia is
planning to seize great areas Of Chinese
territory. or at least to establish pro-
tectorate or something of the sort over
Northern Manchura, Outer Mongolia and
Chinese Turkestan, which will make actual
seizure in the future a matter Of great
ease
The Chinese as whole are in dread Of
Russian intentions. but ii is reported that
the Peking government has made over
lures 10 the Russians for a big loan which
would enable President Yuan TO fout the
International group. an organization which.
when they forced the government TO cancel
the Tang Shao-yi loan contract with the
Belgian syndicate-which was and Is very
much Russiau-humiliate the Premier and
led TO his downfall. The government ad-
nitted, under pressure, to be sure, that
Premier Tang had been guilty Of bad filth
II seemed for few days last week that
the government had obtained financial
group. for in clear and forcible language
the Minister Of Finance asked the banking
representatives here for precise informa-
ton as 70 their intentions and indicated in
an unmistakable way that If the banks
would not advance some twenty-odd mill
ion taels by the next Monday the govern
rnent would 60 where II liked for money
and would consider any obligation 10 leal
he prO,Ir alone a end
Bankers Much Annoyed.
This was very annoying and indicated
70 most observers that there was something
behind il all. II was either a huge bluff
or the government had obtained promises
Of financial support from some other source.
The bankers were naturally much ANNOYED,
particularly as the government demanded
an answer on the 14th Of the month. To
make this answer was practically mu"ssi-
BILE as the Chinese knew, for no definite
action could be taken until the meeting
planned for the 18th in Paris between the
principals OF the international group had
been held.
The bankers replied to the Chinese ulti-
natum in kind. They wanted 10 know II
the Chinese really meant what they said
and if they would really go elsewhere for
money If the group failed 10 supply IT. An
answer was demanded by 5 o'clock on the
afternoon Of the former demand.
II was a delicate situation, and many be
lieved that the group and the government
had come 10 the parting OF the ways II
seemed certain that there was international
intrigue mixed up in the matter But to-
day, when the bankers had another meet
Ing with the Minister Of Finance, the gov
ernment's attitude again showed change.
The minister declared that the bankers had
misunderstood the letters which had been
written and said that the government had
no intention OF breaking OFF II simply
wanted lot Of money at the earliest pos
stble moment. All OF which was nonsense;
a. least, that part about there having been
misunderstanding, for the original lstter
and the second one were clearly written.
Something must have happened within the
government. Very likely the promised
support from other sources failed, and the
government, pushed for funds, had TO re-
turn 70 the group.
In the mean time Tang shao-yl, the Pre-
nrier ran down to Tlen-Tsn, for a week
end, he said, but once there he resigned
his ONCE. AL sorts OF explanations are
offered. One is that he has gone to Canton
TO start another republic. Time alone will
show what this willy statesman Is planning.
II is certain, however that all IS not
well within the government. Tang Shao-Y
and Yuan Shih-ksi have quarreled more
than once, and there has been an open feud
between the Premier and Hsiung Hsi-ling,
his Minister Of Finance. Other members
Of the Cabinet are also sick Of their jobs
and ready and willing to quit. It may not
F,r1 xUrtNL y
goodly crash. Then will come another In
teresting and dangerous crisis.
The situation throughout the country
continues dangerous. and will remain so
until something drastic is done A foreign
loan must be made at once. yet the govern
ment fears 20 20 ahead with the bankers.
The opposition throughout the country is
constantly growing. and there are evil
dences here and there that it is taking en-
ant-foreign turn The unpaid troops are
unruly. Last week they thoroughly looted
and partially burned Tsi Nan-fu, the pros
porous capital OF Shan Tung Province
Reports come from all sides of more loot
ing II is not unnatural, for It is the only
way the soldiers have Of collecting COM
pensation for themselves
Loan Vehementy Opposed.
In many places, too, there have been
public meetings, at which speakers voiced
opposition 10 any foreign loan. In Hankow
a speaker at one meeting chopped on
finger. and with the bleeding stump wrote
on the wall a warning against foreign
loans Another patriot cut his finger open
and in blood wrote a plea against the pur-
chase Of foreign goods.
The international situation, however at
tracts almost as much attention as internal
affairs Russia is being watched with
great care That government has entered
the international group, but has made
mighty sweeping demands concerning her
political rights and privileges which the
other nations may not be willing 10 a!loW'
IL Russia's demands are granted without
modification the action will amount TO an
abandonment of the principle of the terri
torial integrity of China. II they are not
granted Russia may retire from the group
and instead start in as competitor
The chances. too. are great that she VIII
get her ally, France. out OF the group
This will be blow 10 the present orsaniZa-
tion, OF which France is a leading mern3er
for the present group needs the frehch
market for any loans hoated. III hussld
succeeds I'm disrupting the group by get
ting France out OF II, the French govern
Inent supporting It's own people, might re-
fuse the others a quotation on the Paris
Bourse. This would be very detrimental
Russia's aggressive tendency has already
been clearly shown, and IL she is 10 be
blocked at this time by the other powers
viii be interesting 10 await her next move
- Al IA