New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-24
DR.. SUN SEEKS LOAN
OF MERE S5OO,0OO,0OO
His EmisSary in London Sounds
Financiers on Subject of Great
Railroad Undertaking.
AMERICA LEFT IN COLD
Change of Policy with Regard
to China Upset Plans for
Flotation Through New
York Bankers.
lBy Cable 10 The Tribune.

London, May 23.-George Bronson
Rea. secretary Of the Chinese National
Railway Corporation. is in London with
the power of attorney of Or. Sun Yat-
sen to borrow SJ00,OO0.c00 for the pur-
pose of building ten thousand miles of
railway within the next fifteen years.
DR.. sun wanted build sixty thousand
miles, but Mr.. Rea cut his estimate to
ten thousand. Mr.. Rea has under
taken to get the money without utiliz-
ing the old financial groups so cordially
disliked by the Chinese aPrliament.
Discussing yesterday the questions in
voved, Mr. Rea said:
Our first thought was of raising
money in America. | knew that the
American group headed by the Morgan
firm could easily handle it. of course
taking in the other powers after the
loan was started, but we had to be
in position to eliminate the phases
Of the former loan contract SO unwel-
come to the Chinese.
My desire was 10 have America sup
ply Sl25,OOoVD in ten years and have
the other powers take the remainder.
but all our plans fell through when II
was found that President Wilson had
withdrawn governmental support from
the American banking group. and had
10 come TO England. as Americans
won't enter China unless supported by
their government.
1T seems TO me that sooner or later
President Wilson will be compelled to
modify his policy. because with the new
tariff all conditions in America will be
changed. The country must find an
export market. and China is the richest
field the world now offers. Political
conditions in China make It imprac-
ticable for Americans 10 enter the field
without government support, while
aside from the Morgan group there is
no other in the United States strong
enough TO float the loan independently.
In London there are half dozen
groups. a fact that puts me in a COM
pick situation trying to arrange the
loan in London on terms satisfactory
to the Chinese. 10 eliminate the obtec-
tions 10 the previous contract and at
the same time. as a patriotic Ameri-
can. to keep the door open for Amer
Tea to enter this great commercial
field later.
The feeling that seems 10 pervade
all Europe is that II is necessary to
prevent the representative government
from continuing strong central gov
eminent in China This is shown in
the history of past loans and is the
reason why the Chinese Parliament is
so against Yuan Shih-kai. fearing that
If he dared he would overrule Parlia-
ment and assume the role of a die
tator. This is directly opposed to
American ideas. which would have been
predominant If President Wilson had
not acted as he did. Capitalization
has always been the British policy in
the past, but / am led to believe that
the Foreign Office will change its at
titude in the near future because pub
lie opinion believes that groups inde-
pendent OF the old Hong Kong bank
ing interests should be considered
President Yuan is still the strongest
personality in China. Or. Sun comes
next Or. Sun is actuated by idealism.
but If Yuan attempts 10 override Par
lament DR.. Sun will re-enter politics"
The project for great scheme of ma
tional railways has for more than n year
held first place in Or. Sun Yat-sens pro-
gramme for the modernization OF China,
and has commanded the support of the
new government of the Chinese Repub-
lie As early as last September dis
patches from China said that the plan
would no doubt involve a great extern
sion OF the privileges of foreigners in
China with the possibility OF an i'm
mense increase in Chinas foreign trade
The government authorized DIR. Sum-
ex- provisional President OF the republic
TO establish a railway corporation to
carry out a system OF national railways.
covering territory some 1000 miles in
extent. IL was the understanding that