New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-26
YUAN SH|A-KA| ECL|PSED
IN LOAN NEGOTIATIONS
Premier Tang Shao-yi's Attitude
on Vital Financial Questions
All Important.
RUSSIA IN DOUBLE GAME
Scheme Afoot to Displace Inter.
national Group of Lenders to
Detriment of America
and Germany.
BY the Regular Correspondent Of The TribIn.


[By the Regular Correspondent of The Tribune.
in Peklng.
Picking. April l6-The inactivity Of Yuan
Shih-kai is one of the remarkable features
of the Chinese situation to-day. He has
been able to do so little to make matters
right or has done so lttle-it may b.
that he is simply giving the Southerners a
chance TO hang themselves-that II seems
that he has lost all his power.
Il Is certain that since the outbreak OF
the soldiers here on February % Yuan
shih-kai has lost a great deal Of face"
and is not the powerful man he once wa,
But whether all his power is gone remains
to be seen. For great many weeks dur.
ing the last OF the Manchu regime Yuan
seemed TO be doing nothing but in the end
he brought about the abdlcaton.
There are many who say that as A
leader in China Yuan Shih-kai is finished
and that Tang Shao-yi has become the
all powerful man. When things are better
organized the situation will be more clearly
defined and II will be possible 10 gauge the
strength Of Yuan Shih-kai. At present he
IS in a very unfavorable position His
troops are not loyal, as has been we'll
proved, and without military backing hs
cannot exercise great influence.
The general situation shows little sign Of
Improvement The slip Of state continues
10 drift along with no one at the helm.
Tang Shao-yis return to Picking Will, II IL
devoutly hoped mark the beginning Of
period Of active reconstruction.
Premier Tang Needed.
Premier Tang appears to have at last
settled affairs down South, or at least put
them IN such shape that he can leave Nam
king and Shanghai and return TO Picking.
During his absence the situation has been
going from bad 10 worse. and the need OF
organizing the government has become
greater than ever. In addition TO this
Tangs presence in Picking is essential TO
settlement Of China's financial difficulties.
The settlement TO be reached depends a
great deal upon the attitude Of Tang Shao-
yi II is known that he has said that he
would not bind himself TO any one group
In getting funds for China, and 1t Is also
known that during his stay in Shanghai no
has procured further advances from the
Belgian syndicate. However. when Tang
Shao-yi finds that the six powers are op-
posed TO small loans, such as the Belgian.
and are unanimous in asking for an eN-
elusive loan for the international group he
will probably not adhere TO his policy Of
absolute financial freedom.
Rumors were current recently TO the e.
feet that Tang Shao-yi had entered into
negotiations with representatives of the
inf infnFf 10 =
with the intention Of breaking off his deai'
ings with the international group. Thus
the Belgian syndicate, which has powerful
connections In London. even more power
full than those constituting the British sec
ton of the international group as well as
In France, ard possibly in Russia, wouIi
displace the International group.
This would be a mighty bad thing for
America as it would leave that country
out Of the running entirely. The same
would be true Of Germany, and disagree
able situation would be created, for neither
OF these countries would Willingly give up
its rights of participation. would prob
ably cause the French government to re-
fuse a quotation for the Chinese bonds on
the French Bourse and create iinan-
cial muddle that would be bad for al!
hands. Now, however, the government has
expressed a desire 10 reopen negotiations
and the danger appears to be over.
In certain quarters here the opinion has
been expressed that a big game is being
played. with the object Of forcing out
American and German bankers Whether
this is true or not is impossible at TINS
time 10 say. Russia has been credited with
leadership in this financial war game, but
a few DAYS ago Russia expressed her will
ingness to participate IN the international
group This seems TO indicate that Russia
is now ready, after many weeks OF delay,
TO observe a spirit OF broad International
ism I'm the matter OF loans TO China, sucn
as was advocated by the Department Oh
State in Washington.
Russia makes certain reservations with
regard 10 her special interests I'm Man
Chura. Mongolia and Western China. No
doubt this is acceptable 10 the other pow
ers. Japan, in accepting the invitation TO
participate, made a similar reservation
with regard to her special interests in Man
churia. and no objection has yet been
made. However, the other powers are
keeping a close watch on the Russian bear
who has already laid his powerful foot on
Outer Mongolia and may soon advance
even further.