, 1912-07-20

sion OIL OUlGl IOW0IS AhO III OHO 30
tiations, namely the United States, Great
Britain, France and Japan. The situation
is now D most serious one, with Russia evil
IDENTIFY holding the whip hand, although only a
week ago her position seemed almost hope
less.
This sudden change has been brought
about by secret negotiations, which have been
carried on between Russia's agents and the
Chinese Premier, Tang-Sha-Yl, whose illness
of II purely diplomatic order was designed to
conceal some devious vaccinations
The Paris conference. broke up to-day, and
Henry P. Dawson OF }. 2. Morgan & Go. Of
New York and Nh. Grenfell of the London
house of Grenf9ll, Morgan & Co. are now on
their way back here, while the cables to
Picking are being kept hot with dispatches
from the various Governments designed to
Counterfeit Russia's move.
The informant OF The Times cor1espon-
dent says:
"The situation that developed at the Paris
conference furnishes the needed explanation
OF the fight of Tang. Shao-N from Picking,
and it also explains the Presidential man
date, granting "a five days sick leave to the
Chinese Premier. 1t is but another evidence
of the deviousness of Russian diplomatic
methods and the small confidence that is to
be placed in her statements.
"Japan especially must feel chagrined at
this latest turn in the loan negotiation, for
the willy japanese, who has been the alder
and abettor Of Russia i'll her demands for
special privileges in China, now finds himself
in a position in which he stands a strong
chance Of losing much of that power and
control in Southern Manchuria which he
fought a long and costly war to gain. Rus
STA played q clever trick Oh all the Powers,
but if she accompiishes her end the effect
will he more severe on Japan, her ally OF a
week ago, than on any OF the others.
Ult:matum To Russia And Japan
"When the previous conference adjourned
the Russian and japanese representatives
bore away with them an ultimatum from
England, America, France, and Germany
that Russia and Japan could have no special
privileges in Mongolia or Manchuria.
e"lhey had asked the exclusive right to
control all investment i'll those sections of
the republic. This request the four Powers
had refused. The Powers hal also requ ed
Russia and Japan to r%elinqu!sh without re-
servation any part Of their share OF the loan
which they could not take up with money
from their own Golfers.
Cloth these requirements were unpalata-
ble to the Russian and japanese representa-
NlNGo, NitO Hbl SOuShh W IhHhC VI tAC CbL
Powers to increase the prestige and power Of
Russia aud Japan III China. They said that
they must consult their Governments, and
the conference was adjourned to give them
time for this consultation.
"From the developments to-day Japan
seems to have acted in good faith since the
adjournment, but the Russian representative
hurried to st. Petersburg, and now it is
learned that Russia has offered an immedi-
ate advance 10 CHINA Of $500 G 900, aud TO
provide the rest of the 100000 600 from
time to time as shall be needed to finance
the new republic.
"This was the result of the consultation Of
Russia's representative with his Governments,
and this is Russia's reply to the ultimutum Of
the Powers.
|This also is the explanation of T6ng-Sbao.
Yi's flight from Peking ana his five days Of
sick leave. 1t was to negotiate with Russia
and it likewise explains why the four Pow
ers yesterday hastily loaned China 100000
to tide over her immediate expenses.
Japan Deserts Her Former Ally.
"Japan, which stood with Russia in the
original demand for special privileges, has il
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