The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-06-21
AGREEMENT ON CHINESE LOAN.

A dispatch from Paris states that
an agreement has been reached by the
powers in interest on the 100000, 900
loan to China, subject TO the ratihca.
tion OF the respective nations repre-
sentcd. VIZ, the United States, Great
Britain, France, Germany. Russia, and
Japan. There is also yet TO he framed
the specific and direct contract with
China on this question. The dispatch
indicates that the full agreement IN all
its details will be Immediately drawn
up, so that there can be but little
doubt of the favorable issue of the ne
gotiatlons for the loan, and of the ac-
tual transfer of the money.
The project Of negotiating this loan
has dragged along for a good while,
Even before Yuan Shi Kai accepted the
Presidency Of China. it vas supposed
that the negotiation had been complet.
ed; but the Chinese finance minister
proved treacherous, would not agree
that the powers should have anything
to say about the expenditure of the
money, his idea being that the whole
disposal of it should bo left to the
Chinese themselves, with their disposi-
tiou 10 graft and plunder. The pow
ers, however, were insistent that the
money, il lent at all, should be lent in
such a way that the money would be
actually expended for the purposes for
which il was borrowed, and not stolen
by official thieves. The solcitude on
this point arises from two causes; first,
that the Chinese revenues are pretty
well absorbed already by current cX-
actions, and to add the large amount OF
interest money would be a serious tax
upon the Chinese people, which they
might be indisposed TO pay if the mon
ey were not actually expended for their
benefit; and second, the desirability o.
seeing that this money is actually and
bene6cially expended so that the proof
Of it could be brought forward at any
time when the facts were challenged,
Upon the refusal of the Chinese
finance minister TO agree to this for
eign guarantee of honest expenditure,
the negotiations fell through, and
new start had to be made. In this new
start the question was raised as to
the actual sources OF supply of the
money. The original plan was that the
United States, Great Britain, Germany,
and France were each 10 furnish $75,-
100000 Of the S300,000,OoO desired 1t
WAS stipulated further that each coun
try must furnish the money itself, and
must not borrow in order to get its
quota. Any nation not having the
S75,0O0,00O to put into the loaning pool
was TO forfeit so much Of ITS portion
amount, and the excess was to be ia
ken by the other powers.
This agreement however, ignored
both Russia and Japan, and necessarily
so, since neither under that plan could
furnish its part Of the money required.
Both Russia and Japan wanted to par
ticipate in the loan. but in order to d.
so would have first to borrow the mon
ey they would furnish. This being |
barred in the original plan, tie uego-
tiations came to a halt. Then began |
further negotiations on the basis Ct |
omittiue the proposition that each |
country must furnish from its own
money its quota of the loan, and in |
lieu Of it there came in the adjustment |
Of the special claims of Russia and ia
pan in Manchuria and Mongolia. The
problem then was to so adjust matters
that Russia and Japan might partici-
pate in the lonn by borrowing the mon
ey or part of ii for their share, and yet
to make sure that the interests of the
four stronger nations should be held in
tact, II is probable. therefore. that
the final agreement on the loan will
include the settlement OF the Mauchu-
rian and Mongolian questions, and will
also include on the part Of China the
concession that the money must be ex-
pended under the direction Of foreign