New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-03-20
Withdraw from Negotiations
with Six-PoWer Group Be-
cause of the Attitude of
the Administration.
FORMAL STATEMENT ISSUED
Up. Morgan & Co., Kuhn, Loeb
e. Co. and First National
and National City Banks
Reach Decision in an
All-Day Conference.

As the result Of the attitude Of the
Wilson administration in repudisting
the policy Of the Taft administration in
regard 10 the proposed six.power loan
If S12J .O0.OD TO China. an announce
ment was made late last evening by
p. Morgan & Co. in behalf of the
American banking group who were 10
take part in the loan. that in Difference
10 President Wilson's view, this group
had withdrawn from any further
negotiations in the matter. and had so
advised the European and japanese
banking groups.
The statemen; for the American
group read as follows.
The American group. consisting Of j. T.
First National Bank and the National
CITY Bank. was formed in the spring OF
1919 upon the expressed desire OF the De-
partment OF State that a financial group
10 organized 10 take up the participation
10 which American capital was entitled
in the Hukuang Railway loan agreement.
then under negotiation by the British.
French and German banking groups.
This group thus became interested in
Chinese loan matters not primarily for
rs own profit but for purposes indicated
hy President Taft and Secretary Knox.
As stated IN President Taft's message 10
congress I'm December. 1879. these pur-
poses In effect. called for the cooperation
of the bankers as the indispensable in
strumentality" which the American gov
eminent needed TO enable il Ito carry out
a practical and real application OF the
open door policy
The Department OF State considered
that American cooperation with the
banking groups OF the several great
powers enabled the United States TO
exercise a practical voice in China's
affairs and constituted the best guar
ante. for the preservation Of China's
integrity.
Forming tho Sx-Power Group.
In pursuance Of the policy so advocated.
the American group. with the administra-
tons approval, entered into an agree
ment with the British, French and Ger
man groups FOR the purpose OF rendering
financial assistance to China. In Febru-
sry. 1872 these four groups at tie re-
quest of their respective governments
and with the consent of the Chinese gov
eminent, adpitted Russian and Japanese
financial groups 10 the negotiations ior
the reorganization loan. thus constituting
what has since been known 3 the SIX
power group.
Following the revolution and despite the
fact that the authority of the new repuo-
lie had not been generally accepted. the
American group joined with the otnei
groups in making TO the provisional gov
eminent substantial advances 10 enable
il more firmly TO establish its authority
and to IestSe normal conditions through
out the country.
Meanwhile there had been IN negoua-
ton during a period OF many months.
loan agreement which, IN It's general
terms appeared last month TO meet the
approval Of the six governments, or theH
banking groups and the chinese govern
ment and 10 DO ready for signature.
These terms were intended 70 cover TWO
points The first was TO enable the Chi-
nese government 10 reOrgdnlze lts du-
minstratiOn on an effective modern OASIS
10 pay of its large outstanding DEBTS ana
10 protect the interests OF American ana
European investors
For suoh protection. in tho judgment
o. the governments and tho groups
the only method was to insure. despite
any possible recurrence Of political un-
rest In China, tho proper expenditure
Of the fund. loaned to China and to
safeguard the handling OF tho revenues
PLEDGED for principal and interest OF
the bonds.
Out Of the Group.
As announced In the statement given 20
the press Yesterday. the present admin
istration at Washington with desire 10
be OF assistance TO China and 10 promote
American interests in the Far East. has
decided that these purposes may better
be served by the adoption OF different
and independent policy
As tho American group had boon
ready TO servo tho administration in
tho past. irrespective Of the heavy
risks involved, so il was disposed to
serve tho present administration II so
requested. But, deferring 70 the policy
now declared, the group has withdrawn
entirely from, tho Chinese loan nesotia-
lions and has so advised tho European
and Japanese banking groups.
Representatives OF the American
bankers had an all-day conference YES
terday. II. =. Dawson. Of ]. =. Nor
gan & Co., who was unable to attend
owing to indisposition, was kept in
touch with developments over the tele-
phone, and the statement given out
later was read carefully by him at his
home.
Mr.. Dawson, with the assistance OF
Willard d. Straight. was the principal
factor in obtaining a share In the ,oan,