New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-18

sben-S and Shan-Tung received here fore.
shadow outbreaks there unless the troops
are soon paid.
On an urgent appeal by the Chinese gov
eminent the group of international ban&-
ers this morning agreed TO advance 3.coo,N0
taels approximately $4,000 in order to
avert crisis.
From The Tribune's Correspondent
Pek,Dg May l4-Negotiations between
Tang shao-yi and the ministers Of the four
nations interested in the matter Of a big
loan 10 China have been under way
for three weeks II is reported now that
an understanding has been reached and
that the money necessary To complete
ration Of peace and order will now be
forthcoming
4 solution Of the loan difficulty was not
rsarhAd however without some difficulty
NOR without leaving a situation which may
Z, the future bring a considerable amount
~ trouble. not only to China. but also 10
the movers, which have just forced the
Chinese to deal with the international
group only
Germany. Great Britain. France and
America protested to Yuan Shih-kai against
the bad faith shown in the conclusion OF
the so-called loan for 100000 The Belgian
contract also provided that the syndicate
should have an opportunity at later date
10 lend up 10 100000 The Chinese SOW
eminent replied 10 this protest I'm an
smiable note. in which II was stated that
the act constituting the alleged breach OF
faith in giving the international group the
exclusive right to make advances and float
the big loan was simply a misunderstand-
ing
Bankers Were Under Orders.
The four ministers were asked to advise
the bankers 10 resume negotiations. Up 10
that time the bankers were under orders
from their respective governments not TO
discuss loan matters with the Chinese The
Chinese made no attempt 10 conceal their
dire need Of funds and, in fact. stated out
right that peace could not be preserved un-
less money was procured.
This answer, somewhat TO the surprise OF
numerous observers. was not satisfactory 10
the four ministers who. presumably acting
upon instructions from the various gov
ernments. replied to the Chinese that there
had been no misunderstanding. but that
there had been display Of bad faith. just
as they had stated in their original protest
20 Yuan-Shih-kai Under the circumstances
they declared that they would not advise
the bankers 10 resume negotiations with
the government The government must
show a real appreciation OF the true facts
In the case. the ministers said. In otner
words the government was being compelled
10 acknowledge the wrong that mad been
charged The ministers seemed determined
10 teach the Chinese government good
lessor. i'm order that there would be no fur-
Their display Of bad faith in the future.
The result obtained is not what mas oeen
generally expected. The Premier mas re-
Piled 10 the ministers that he VIII UNDER
take TO cancel the Belgian contract All
the details Of the situation are not at TINS
time available. and II is not clear whether
the ministers ever specifically asked Tor
cancellation Of the Belgian loan. However
II has been brought about and the Beislah
agents here are warmly indignant
BeIoian Protest Likely.
protest from the Belgian Minister seems
certainty. but will PROBABLY do little good'
Gov {, vii he only a case 4 Belgium. with
little political interest IN the Far East
against the combined influence OF the Amer
icsr French. British and German minis
tsrs With the Russian and japanese en-
VOWS ready TO offer their support when the
time comes. The Belgans however, nave
powerful British associates and these may
rarss considerable trouble The Belgian
r.r-esartatIyce here declare that cOmpeu-
ton is being stiled.
They claim that they came into the chi
pese market when the international group
was unwilling TO do business. They maze
loan contract I'm a perfectly legitimate
manner II was signed b. Yuan Shih-kai
Gnd by the Premier. and was approved ny
the Advisory Council, then stting at Nam
ling The council Was the only body rep
resenting the legislative branch OF the gov
eminent Nothing, the BelEians say ccu'u
he more legitimate than theii c-n'ract, anu
they claim that a grave injustice Is otihs
done besides setting d horribl" pre'' o'n'
by forcing the Chinese 10 break solemn
Engagement
The action OF the ministers was. 81
course taken Upon the promise of the gov
errmcnt 10 deal with the international
Grour alone Ihis promise wa conVeyed
in. 2 letter from YGan Shh-ka: 20 In" 'Ank-
crs. II was dated March 2. The Belgian
contract was closed on TIE l4th. The Pei
gisu representative here say they kne"
pOthh. Of the letter OF March 9, and tha''
'vtu though il may exist. il does re- dn'c'
tneir contract.
Yu,-'s Power Questioned.
IN the FIRST place, they claim, yuan sum
ksI has not the legal power to consummate
such sweeping understanding. Ihi-' Of
tourse is open 10 doub,, for under the CIR
'.snstaulcz ,EistirG at that tine there was
l.ele law. order or organization in Chiaa'
and Yuan's action might well be considered
binding Upon the government. Further
more, the Belgians think, the letter from
Yuan to the bankers is not valid. because
1t was not ratified by the Advisory Council
Besides all this. II IS further alleged, the
understanding thus reached between the
bankers and Yuan would be knocked out
IN any court OF law, because II was obtained
tnder something akin 20 duress, as at mat
time the Chinese were so badly in need o.
funds that they would sign anything for
the purpose Of getting money. Such Is the
case Of the Belgians, and II their contract
Is cancelled. az II now seems certain u
vil BE- there - likely 10 be lot OF
ttoublo
Locking al the matter In "A broad way
however. IL is A good thing that an under
t;srding has finally been reached ana that
ih negotiations for the big loan have neeh
fesnmtd The method Of bringing ABOUT
Tue understanding fades away BEFORE the