The Birmingham age-herald., 1914-05-31

chosen chairman of the six-nation group when 1t met in Paris to discuss the negotiation of the Chinese loan.
 The Open Door
 Now the new minister from China asserts that the door of China stands open to the United States and that al- ready several great American indus trial organizations have taken advan- tage of this open door. The difference seems to be that instead of securing from the United States through the in strumentality of an American syndicate associated with the six-nation group much needed funds China is in negotia ton with those who command large capital and who are in authority over great American industries whereby needed financial assistance can be se- cured. One at least of these industries possesses large money resources. It Is able to obtain from its own treasury the funds which are to be utilized In the exploitation of some of the natu- ral resources of China.
 Another large American industry is understood to be negotiating with China with intent to place loan there of some s30,00o,0o0. The greater part of the funds thus obtained are to be used in perfecting certain great naval establishments in China. This report has not been officially con f,rmed, but 1t is believed to be sub- stantially correct. Another great American industry has recently secured a very large contract with China, which will enable the republic thoroughly ly well to equip one of its great arsen- als. In this case, however, no loan direct or indirect, is to be made tc China.
 The conspicuous negotiation and con tract with China Is the one in which the Standard Oil company of New Yorl, Is interested. MT. Kai-Fu-Shah spoke Of this contract at one of the cere- monies of welcome in the terms ol highest approval While the Standard Oil company does not directly lend any money to China there Is indirect ac. commodation of this kind, since China gets a little over one-third of the shares of the Sin American corpora. tion free. In other words. China Is tc be paid the stock rather than accom- modated with funds.
 Japan and the Open Door Tn Japan this arrangement is look ed upon not as demonstration of the open door, but of the door closed tc everyone but the Standard oil com. pany. High executive authority of Ja- pan protested against giving the Standard Oil company of New York cer- tain great oil concessions unless Japan be permitted to cooperate with the Chinese government in exploiting other oil regions of China. In reply to Ja- pan, China asserted that a co-opera tion with the Standard Oil company was justified as pure business propo sition. The American company, while setting apart for China Title ovel one-third of the shares of the cor poration which is to operate and ex- ploit the oil fields and other natura resources, mas engaged to pay all thu expenses which the exploitation O. these resources involves. Some of thu expenses are sure to be very heavy The experts who have been engagd ars men who command very high salaries The prospecting itself is expensive ant the machinery, almost all of 1t oi American manufacture. will entail very large payments.
 The executive authority in China was persuaded that the Standard oil com pany of New York was better equipped from all points of view for undertak- ing this great work. And it was fol that reason that If the prospecting within the district covered by the con cession does not result favorably ther China will permit the Standard Oil tOflDdnX tO prospect III OlnSF SeCtlOIs of the republic. There is little doubt however. about the great commercial value of the natural resources of the area which the Standard Oil conces- sion covers.
 It Is admitted by China that the con. tract with the Standard oil company is an exclusive one. and was executed without giving opportunity to any other nation to make propositions re- len Ia C not the only nation which was anxious to obtain these concessions from China Urgent solicitation was made in the name of Great Britain and Germany for an opportunity to exploit the natural oil resources of China. These appeals were unheeded. The Standard Oil com rsny of New York obtained these con sessions and is understod to be now vigorously proceeding with the work The new minister from China to the United States might, if he had the op- portunity. have spoken of some of the ether vast undertakings upon which the Chinese republic is now engaged It Is constantly employing very high grade experts who are giving the gov ernment good information respecting natural resources. One of the large companies of China. the Hanyehping g company, has secured at heavy cost the services of American engineers, some also from Germany. Yet the large loan which was secured for financing this company and establishing 1t was made in China.
 The probabilities are strong that within a year or two after the new minister has begun his diplomatic serv- ice at Washington there will come an- onuncement of other large American engagements in China.