Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-03-19
'LOAN.TO CH|NAU Up
TO OTHER NATIONS
New Administration Refuses to
Request u. S. Bankers to
Enter Negotiations.
ACTION is REVERSAL
OF THE KNOX POLICY
Negotiations May Proceed as Five
Power Affair, Without the
American Group.

comment and discussion in official and
| diplomatic quarters
| Following closely upon the statement
come limitations that the negotiations
now may proceed as five-power affair
without the American group.
1t is pointed out today that the bankers
of China's creditor nations especially
Russia, may now be counting upon the
moral support of their governments to
continue to press Provisional President
, Yuan Shi kai to make the loan. but there
are also some indications of dscord
found in the conflicting claims of the
various nationalities for predominating
: influence in the appointment of admin
istrators of the loan and for its expend-
| ture.
China Back in Payments.
| The pressing feature for China right
| now, diplomats point out. is found in the
fact that China is more than one year be-
/ hind in payment Of Boxer indemnities to
the extent of $20.0OO,O0o. With an army
| clamoring for back pay, many provincial
| loans coming due and need for money to
| continue the operation of the provisional
government, Yuan Shi kai is placed in
| the position of attempting to secure an
extension Of time from creditors who
| have failed to make loan succeed in
borrowing money from independent bank
ers, s was done in the so-called Crisp
| transaction few months ago.
1t is intimated here that some Amer-
can bankers, other than those concerned
in the loan rejected. are figuring on par
| tIcipatlon in such a transaction. but it Is
pointed out that President Wilson's state
ment made it clear that while the
Chinese government would have the SYM
4 pathetic support of the United States, I'M
der no circumstances would it take the
form Of guarantee to would-b be investors
In Chinese securities.
| Await Attitude Toward Republic.
Discussion is now turning to the ques-
ton Of when the administration will an
nounce it's policy on the recognition of
the new republic of China. The state
ment issued yesterday made no mention
of the question OF recognition, but now
that the loan matter has been determined
1t is generally believed that a determina-
ton of this governments attitude toward
the new republic will follow at an early
| day.
! Former Secretary knox's policy with
regard to China and the proposed six
| power loan" of $125 100000 has been re-
versed by the action Of the new admins
| tration. This is interpreted as a repudi-
alton of dollar diplomacy" by many who
have followed closely the Taft admins
tration.
| The influence of the government Of the
| United States is not to be used for the
| protection or guarantee of loan enter
| prises of American banking houses: either
| in China or Central America, or else
! where.
The statement was issued by the Presi-
| dent following a prolonged sitting OF the
cabinet. The question of recognition OF
| China was considered. but action deferred
owing to the absence of Secretary or
| State Bryan.
The views of Secretary Bryan on the
| Chinese loan matter were already known
! to the President. They had exchanged
| opinions on the subject before the oepar-
| ture of the Secretary of State. His at
titude was presented to the cabinet meet
| ing in his absence.
/ The statement, as issued related exclu-
| sively to the proposed loan TO China
Statement From the White House.
| The statement follows:
I'VE are informed that at the request
of the last administration a certain group
Of American bankers undertook to partici-
pate in the loan now desired by the gov
eminent of China Approximately N25,-
!
can bankers to participate along with the
bankers of other nations. because it de-
sired that the good will of the United
! States toward China should be exhibited
/ in this practical way, that American cap!-
| tai should have access to that great coun-
try, and that the United States should be
| in position to share with the other
+! powers any political responsibilities that
| might be associated with the development
of the foreign relations in China in con-
nection with her industrial and COM
mercial enterprises.
| THE present administration has been
| asked by this group Of bankers whether
| it would also request them to participate
| in the loan. The representa- tives of the
| bankers through whom the administra-
| ton was approached declared that they
would continue to seek their share of
the loan under the proposed agreements
only if expressly requested to do SO by
| the government. The admnistra ton has
declined 20 make, such request because
| 1t did not approve the conditions of the
| loan or the implica tons of responsibility
on It's own part which it was plainly
told would be involved in the request.
Might Mean Forcible Interference.
1.-The conditions of the loan seem to
us to touch very nearly the ad-
ministrative independence of China it
self; and this administration does not
| feel that it ought, even by i'm
| plication. to be a party to those
conditions. The responsibility on its part
] which would be implied in requesting the
bankers to undertake the loan might con-
| ceivabIy go the length in some unhappy
contingency of forcible interference in
the financial. and even the political af-
/ fairs of that great oriental state. just
| now awakening to a consciousness OF its
! power and of its obligations 10 its peo-
! pie. The conditions include not only the
| pledging of particular taxes some of
them antiquated and burdensome TO
| secure the loan. but also the administra-
| ton Of those taxes by foreign agents.
The responsibility Oh the part of our
| government implied in the encoura cement
| of a loan thus secured and administered
| is plain enough and is obnoxious to the
| principles upon which the government of
! our people rests.
The government of the United States
| is not only willing, but earnestly desir-
Gus. of aiding the great Chinese people
| in every way that is consistent with their
| untrammeled development and it's own
| immemOrial principles. The awakening
! of the people of China to consciousness
| of their possibilities under free govern
| snent is the most significant. if not the
most momentous. event of our generation
| With this movement and aspiration the
| American people are in profound sym
pathy. IneN certainly wish to partici-
pate, and participate very generously in
| Of the world the almost untouched and
perhaps unrivaled resources of China.
DESTROYS Of Promoting Relations.