The Washington herald., 1913-03-19
Chinese LOAN
IS REPUDIATED
contia.eA from Pase One.

| to touch very nearly the administrative
independence Of China itself: and this
administration does not feel that u
ought. even by Implication, to be q party
to those conditions. The responsibility
on its part which would be implied in
requesting the bankers to undertake the
| loan might conceivably go the length
In some unhappy contingency Of forcible
interference in the financial, and even
the political affairs of that great Oriental
state. just now awakening to a con-
sciousness of its power and of its obii-
cations to its people. The conditions in
ciude not only the pledging of particular
taxes. some of them antiduated and
burdensome. to secure the loan, but also
| the administration of those taxes by
| foreign agents. The responsibility on
the part of our government implied in
the encouragement of a loan thus Sc
cured 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 its own
immemorial principles.
"The awakening OF the people OF China
to a consciousness of their possibilities
unUeT ITte government Is the fhost SIS
nificient, II not the most momentous.
event of our generation. With this move
ment and aspiration the American people
are in profound sympathy. They GER
| tainly wish to participate. and participate
very generously in opening to the Chinese
and to the use of the world the almost
untouched and perhaps unriyaled re-
sources of China.
The government OF the United States
is earnestly desirous of promoting the
most extended and intimate trade rela-
tionships between this country and the
Chinese Republic. The present adminIs-
tration will urge and support the legis-
lative measures necessary to give Amer
lean merchants manufacturers. contrac-
tors, and engineers the banking and
other financial facilities which they now
lack. and without which they are at a
serious disadvantage as compared with
their industrial and commercial rivals
This is its duty. This is the main ma
terial interest Of. its citizens In the de-
velopment of China. Our interests are
:hose OF the open door-a door Of friend
ship and mutual advantage. This is the
only door We care to enter"
Secretary Bryan ConsuIted.
This declaration of policy with regard
TO China and the proposed six-power
by the demand of representatives of the
American bankers interested that the
administration tell them whether they
were to enjoy governmental support In
the project Willard Straight and other
representatives Of the New York group
had a long conference with Secretary OF
State Bryan, and the latter conferred on
the question with State Department Off
Gals and with President Wilson. The
VI mn
length at the Cabinet meeting. following
which President Wilson issued his state
ment of the administration policy. This
statement practically throws overheard
all that the Taft administration did with
regard to Chinese relations.
American participation in the six
power loan negotiations was the natural
outSrowth OF a policy which Secretary
Of State Knox induced the other great
powers interested in China to agree upon
following the outbreak of the Chinese
revolution, September, 1911. Mr. Knox
at that time used all the influence of
the United States government toward
effecting an understanding among the
powers that none would Act independ-
entity with regard to China, but that all
would act together.
1t was the idea of Mr.. Knox to pre-
vent any of the powers known to have
territorial ambitions with regard to Chi
ma from proceeding to the dsmember-
ment of China under cover of the general
confusion accompanying the revolution
and the downfall OF the Manchu dynas-
". The same procedure was successfully
urged by John Hay during the Boxer
when he was Secretary OF
State. and for the same purposes.
When the revolution was over and the
new government stood in such dire need
of money. II was obliged, OF course, to
seek a loan abroad. The policy of con-
certed action. which up TO that time had
been successful in preventing any of
the powers from interfering in China.
was by agreement extended to cover
the question of the financial rehabilita
ton of the new government. A combina-
ton. for the purposes of loan, was
formed by the United States. Great Brit
ain. Germany and France; in other |
words, all but Russia and Japan. and |
terms were proposed to China. |
Combination Complete.
Later, the governments of Russia and |
Japan decided to join in the loan pro-
and thus the combination was
made complete. By representations to
China and agreements among themselves,
With the sanction of the several govern
nents, the money market of the world,
70 far as China was concerned. was ef-
cornered. Attempts upon the
part of China to obtain money elsewhere
we're objected to by the siX-power bank
RS, and frowned upon by their govern
nents as being in violation of the agree
nent already entered into by the Chinese
government.
1t was declared that owing to the
notorious corruption Of Chinese officials
Inder the former government the rigid
conditions imposed by the bankers were
not only a guarantee of the bankers
security but also a guarantee of protec-
ion to China herself.
The terms proposed by the bankers.
specially those regarding foreign super
yision. caused a great uproar in China,
ime ard time again the contract was
III. L