New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-02
WHY BRITAIN WITHDREW
/. FROM FINANCING CHINA
Belgian SyndIcate's Success in
Obtaining Two Great Railroad
Concessions the Cause.
CONFERENCE HELD IN PARIS
Repeated Violation Of Quintuple
Agreement and Entry OF Aus
trians Into Situation Pre-
cipitated Action.
- Il.rnhaa. nll.aa

fF.on rh. rrhuns bureau
Washington. oct I The Tribune
correspondent has hscu placed in pos
session 81 certain fn,ts which reveal
tho inside story ~ the withdrawal hy
the British government Of its support
of Tho so-callcd qulutupic Eroup. com
posed OF British. German. French Rus
sian and Japanese benkine interests.
thus breaking up the group. witch was
formed for the purpose of imposing f'-
straints and checks upon china. with r.
,lcw Nv preventing that country from
pursuing course ~ reckless and In
discriminate borrowing and concss-
siors. certain 60 result in financial
chaos.
The action ~ the British government
was primarily duo to The success Of y
Belgian syndicate headed Dos ih"
Ranoue sino- Beige. whose hoadquai
tors iu pcking are Ia charge oi a NJ.
de Nos. in obtaining t~o of tho great
oct railway concessions china has ever
granted Tho sum involved In he'e
concessions is SiDo.Vp"n and the
two great trunk lines are OF prime po-
litical Importance.
Were % not Tor tho apparently Vol
grounded belize that the Belgian bank
ers have the support 81 France and
Russia. both of which countries are
bound 10 tho agreement ~ the qulntu-
ple group. 10 10 probab le that the Brit
ish government would not have been
moved 20 action al this time ~ II
was however. tncro was Hn c'id'nt
yiolntion of tho spirit ~ the quIntnple
agreement and British interests sui
fored because prospective British con-
cesslonaires and lenders had NOR
hands tied by the agreement "hi'h
tho British government felt bound lo
respect The Austrians. TOO. supposed
lv with the support ~ 'he Germans.
haye been cutting in, while Che tng
usb kent out and this was nm added
reason Tor Great Britain denouncing
the whole arrangement.
England Lost an Ally.
The aulutuple group was the imm'd'-
alto successor OF the sextuple group of
which the United states was tho sixth
member This country Withdrew Dos"
March. and thereby robbed Great Hri'-
ain OF her chief ally IN counsel'ins
moderation and restraint In china
financial affairs The seNtupIe group
was the outgrowth OF tho triple group.
consisting OF Great Britain. France aud
Germany.
The United states. believing Amerl-
can trade with China must necessarily
be- crippled by the influence of this
povcrful group IN Picking and That
American participation was essential
20 the maintenance Of the open door.
sought and secured admission. u mon
became the quadruple group hui iu'-
ain and Japan. gravcly apprehensive
~ this powerful Occidental comhina-
ton. sought and secured admission 10
what then became the sextuple group.
The primary purpose Of the Quedru-
MA eroun had been the making ~ the
HUI Kwang Railway loan and the cur
rcncv loan 20 China. After INC Man
chm revolution. tho quadruple group
,ook mn "a request from china FOR a
great loan FOR purposes 81 reorgan'za-
ton. The negotiations were begun IN
March Of 1912.
The prime purpose Of the consort'"m
was then to control tho chinese loan
market. For the purpose OF prote''-
ing past and future investments IN
China Il was agreed that the govern
ments concerned should sanction M
loans 10 China except those mace ny
the group. and that the group should
! lend money only on conditions winch
nrovided lnarantecs Of honest expendl-
ture as well as of repayment
The complications created by The
granting Of the first Belgian railway
concession brough about a conference
of all parties British. French, German
Russian nd Japanese-in London 'arly
this year. The agreement binding the
group was there modified. IL was de-
clded that industrial loans. such as for
the construction OF railways. etc. etc..
should not come within the scope of he
group agreement. This meant that II
any one Of the parties to the loan
agreement secured a concession II
would not be obliged 10 offer partici-
nation therein to the other members ~
| the group.
To Control Chinese Expenditure.
The members II the group agreed.
however. that the British government
should be asked to teke up with The
other governments concerned the aues-
ton Of the control to be exercised over
| the Chinese In the expenditure Of The
proceeds OF such industrial loans made
by any individual members OF the
group. This was done by way II
maintaining the policy OF controlling
the expenditure of money obtained 10y
China. for the original purpose Of see
ing TO IL that China did not go on the
rocks Of financial chaos. The agree
| ment bound each party 10 observe GER