The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-06-28
CHINA REJECTS
S|X-POWER LOAN

Washington. June 27.-The state
Department announced Tuesday that
the Chinese government has rejected
the plan agreed upon by tho 'nterna-
tional group of bankers at Paris re-
Gently for the supervision and control
of the expenditures Of the six power"
loan. as we'll as for the foreign ad-
ministration OF the salt monopoly.
\ telegram from Pekn to the state
Department also reported the forma!
resignation of four Cabinet ministers
who are members OF the Tang shao
vi party. The designations. however,
had not been accepted
These ministers We're all from the
south and demanded complete control
in their respective departments under
the new presidency OF the republic
The provision granting the power Of
supervision is insisted upon by the
bankers. Without it they will have
nothing TO do with loan TO China
rms arrangement in the loan provides
for the most deta led statement OF the
purposes for which the loan is TO be
used and for thoroughly strict and
modern auditing. II is lheld that this
Is the foundation essential in the loan
Chinese affairs believe that this pres
ent objection will no, obtain long and
that the Chinese Will reconsider their
objection. There is confluence in the
renewal and successful conclusion or
the loan. especially among those who
Know Chinese character. 1t is point
cd out that though there are domes-
tic political agitations and opposition
TO foreign loans bearing the appear
ancc of foreign control, the most en-
l!Shtcned men in the new China see
perfectly that the present loan guar
antees the integrity oi China. They
also recognize the necessity for for
eign control of the expenditure of the
money while the nation is passing out
OF the days of the old regime of un
audited arbitrary control of finance
and the consequent inherent evils in
Chinese official life. 1t is believed
that this view Will finally prevail.
The extreme difficulty China won Id
have in raising sufficient money out
side of the six power group TO sup
ply her needs is pointed out. 1t would
be practically impossible for China TO
get loan OF this size elsewhere
In view of these facts it is believed
at the state Department that the rep
resenatives of the bankers In Pekin
VIII be able to reach some agree
ment with the Chinese government
which viii he acceptable to both sides.
1t is possible that another confer
ence Of the principals of the bankers
Will be held in Paris where they last
week completed negotiations as to the
proposal to be submitted to the chi
nese government.
The Pekin representatives of the in
ternational group of bankers had
agreed 10 advance to the Chinese gov
eminent 100000 taels to meet the
Immediate administrative needs of the
republic. and the bankers in Paris
agreed on their offer last Friday
IT remained for China to ratify the
terms as a whole or in part. The an
portionment of the shares which each
group of bankers was to advance was
left to be decided after the ma tier
of the principal or 100000, 900 loan
had been settled.
When the bankers agreed on the
terms upon which they were willing
to lend to China IL was stated dehn-
itely that the bankers would include
in any proposition submitted to China
provisions for thorough supervision Of
the eXpending of the funds OF the
loan
Supervision by a representative of
the interna tional groups was regarded
essential, not only for the preserva-
ton of the bankers interests, but for
the protection OF the Chinese them
selves.
The Chinese differed among them
selves and the State Department was
informed several days ago that Tang
Shao vi had abandoned the prem err
ship under President Yuan Shin Kai