Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1916-07-02
JAPAN DEALS SLAP
AT FRIEND CHINA
Refuses to Cooperate in
Turning Over Mexican
Salt Surplus.
CHINA ASTOUNDED
Professions of Friendship
by Nippons Are Not Ac-
cepted Readily.
Correspondence of The Associated Pre.sJ

4
s.. SOC, ,000 Mexican of the salt monOp-
| oily surplus fund TO the Chinese gov
ernment has created much comment
| in China, and has provoked hostile
criticism from the press friendly TO
| tls Yuan Shi-kai government
Sir Richard Dane. the foreign di-
rector of the salt monopoly. ap-
| proved the release of $500, 900 to
the Chinese government and gave as
surances that such action will in no
way imperil the interests of the five
foreign powers which made the loan
with the salt monopoly as security.
However under instructions from
Toxic. the Yokohama Specie bank in
PeEing has declined to turn over to
the Chinese authorities $500, 600
which 1t had deposited with II to the
credit of the salt monopoly
This action on the part of Japan
Is interpreted by the Chinese press
as an indication that Japan desires
to prevent the Peking government
from getting money at this time to
put down the revolutionary movement
In the south.
Actions Speak Loud.
The PekinR Daily News. in discuss
ing the action Of Japan, says: "Ac-
| tions speak louder than words.
Japan processes friendship towards
China. and is seriously perturbed If
her motives be questioned Fortu-
| nately. the demands OF last year need
no interpreter. They speak for them
selves. And so 1t is with regard to
the recent action OF the Japanese
government in respect of handing
over Chinese money to the Chinese
government. In terms OF the certifi-
cate granted by Sir Richard Dane
four of the five banks concerned In
the reorganization loan have handed
over their quota of the surplus. Of salt
revenue to the Chinese government,
but the Yokohama Specie bank, un-
der instructions from Toxic, has de-
clined to hand over the 100000 de-
posted with 1t to the Chinese author
tiles, presuming to set up another au-
thority than that provided for by the
loan agreement. The action on the
face Of it looks decidedly unfriendly,
and if the japanese find themselves
less in favor here than they were be-
fore, the fault can only rest with
themselves as they have been guilty
| of an offense which cannot he lightly
condoned. The reorganization loan
agreement provides that If the in
spector general. Sir Richard Dane as
II happens to be. is satisfied that
there is sufficient surplus to meet the
stipulated charges upon the revenue,
the banks are authorized to release
the deposits lodged with them from
the salt revenue and hand them over
to the Chinese government. For some
reason or other the japanese govern
ment has seen fit to depart from the
terms of the loan agreement. In the
opinion Of Toxic the determining au-
thority is no longer to be Sir Richard
Dane and his colleague on the in
spectorate general but the Japanese
GOV ernment, or those who are charged
with the responsibility OF advising
| it on matters Chinese. Its action Is
palpably ultra vires of the agreement.
Evidently the scrap OF paper theory
prevails In Toxic. where agreements
are regarded as binding only on the
| other party. Japan, according 10 her
statesmen. is TO be law unto her
| self, and to do exactly as she plea ses
In China. Fortunately. the amount
involved at the moment Is not a
large one, but the offense Is not
lightened on that account. and no
further comment is needed than the
recital Of the fact that the other
| banks observed the terms Of the
agreement and paid over their re-
spective quota Punctilious Japan,
however. failed to do so.
Trying to Embarrass. .. :.
THE inference TO be drawn hardly
needs be stated. The money belongs
to the Chinese government All the
safeguards which the powers pro-
vided in their respective interests are
| satisfied. and the money should be
paid over in full. The fact that the
Japanese alone declined to abide by
the terms OF the agreement indicates
that they are animated by the policy
which has been too obvious since the
commencement Of the European war.
the emt0 0rrassnent of the Chinese
government and furtherance of Jap
anese aims in this country. aims
which are not in the ointerests OF
China nor In the interests Of the
powers to acknowledge"
The income from the salt monopoly
for the four months Of December.
March. 1915. was s27.3s4. 600 Mexi-
can as against s24,42O.0 900 Mexican
for the same period IL months earlier.
an increase of s2,964,00o Mexican.
According to Sir Richard Danes
statement. the balance remaining Of
the salt funds in the hands of the
group bankers. all of which is sur
plus on March 81. 1915. was s1s.-
298 900 Mexican. The amount which
the chief inspectors authorized to be
released to the Chinese government
OH April was $5.500,000. All Of
this which was held by European
bankers has been turned over but the
japanese refused to follow the lead
OF the English, Russian. German and
French banks.
Japan's attitude towards the Amer
lean loan concluded by Lee Higgin-
son & Co. with the Chinese govern
ment has also been extremely hostile.
japanese newspapers In China have
criticised this loan and the Japanese
minister Eki Tioki, has made in
quiries concerning it at the American
legation.
No Right TO Crfticisc.
In discussing the American loan,
the National Review of Shanghai
saws: IF Japan has no right to re-
tain salt funds belonging to the Chi
nese government. still less as she or
anybody else a right to crlticise the
closing of contracts for foreign loans
from other sources The loan Just
concluded is. on it's merits as an in
ternational transaction. the perfectly
logical sequence of President wilson's
attitude in 1915. He then refused to
support the United States banking in
terests affiliated with the sextuple
syndicate on the ground that the
character Of the transactions contem-
plated was such as to prejudice the
political Independence Of this coun-
try: and he was undoubtedly right.