New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-01
Chinese Crisis
Caused by Yuan's
Pact with Japan
Premier Is Accused of Sc
cretly Negotiating Loan
from Toxic
Accuser Put in Jail
Editor Charged Japanese
Were to Get Control Of
China's Army

From , Special Correspondent o. Tie Td9nne'I
San Francisco, June 30.-The sudden
disclosure of secret compact between
China and Japan, following upon the
attempts by Premier Tuan Chi-Jui TO
coerce Parliament into declaring war
against Germany, was the chief factor
in the recent Chinese crisis, which
threatened 10 split the Oriental repuo-
lie into two separate states and result
ed in the downfall of the Prime Min
lister.
The disclosure Of the compact was
made by the Picking Gazette OF May
Is. and it produced the effect Of oomo
upon the Chinese public. The editor OF
"The Gazette" NJ. Chen. was arrested
the day following the sensational reVe.
lation, which accused the Premier OF
negotiating secretly for loan WIN
Japan in return for putting emma
arsenals and the reorganization oil the
Chinese army in the hands OF the I'M
perial Japanese government.
NJ. Chea's fatal article follows:
Owing 70 the opposition OF the
White Powers, Japan failed in 1918 70
extort from Yuan Shih-kai Group OF
the twenty me demands. This part of
the demarche contained demands which
aimed at the control and subsection OF
the public life of China by and 10
Japan. Among other grave things, the
japanese government insisted on the
control of the Chinese army and its
supply of arms and ammunition.
what the brutal diplomacy of Mar
quis Okuma end Viscount Kato failed
to exact in spite of the rafting Of
swords, the subtler and more dangerous
statecraft of the present Japanese gov
eminent may secure unless the nation
rouses itself and drives away from the
seat OF power the perverse mind that
is now fastening the country into rev.
olution as we'll as alien bondage.
"A sinister transaction is now under
negotiation between Picking and Toxic.
These are the facts which come to US
from a responsible quarter. Count
Terauchi, the japanese Premier. has
communicated TO the Chinese govern
ment' the terms of secret compact,
consisting Of twenty items: One OF
these items provides for a loan OF
$50 OOO,O 900. whereof Sl0,000,000 are to
be devoted TO the reorganization or
three Chinese arSenals with Japanese
cooperation. These arsenals are the
Kiangnan Arsenal at Shanghai, the
Hanyang Arsenal at Hankow and the
Kunghsien Arsenal in HOnan. The last
named arsenal was started by Yuan
Shih-k ai. and formed an important part
of his scheme of military domination
of China. The usurper died before IT
was completed. although a great por-
ton Of the plants of the Kiangnan Ar
senal and the Hanyang Arsenal was
detached and removed 10 Honan for ITS
construction. -
"The balance of s40,000,000 is TO be
used for the creation Of modern
Chinese army on the lines of the one
which Yuan Shih-kai intended 10 create
in connection with his aforesaid scheme
Of dominating China under his imperial
regime. Influenced by Manchu military
ideas. Yuan Shih-kai conceived the plan
of raising an army with its headquar-
tiers in his native province OF Honan'
which would cradle him to hold his
Chang Chuns or provincial held mar
shals in subsection. When he died
great camp was building in Honan
near TO the ancient capital of the CHOU
dynasty; and here he planned to mass
his imperial hordes and TO coerce MOD
orn China into fear and trembling.
The great barracks are unfinished ana
Yuan died before his eye could see
what his powerful but treacherous
brain conceived.
considerable progress has been
made in the negotiations. Al this mo-
ment there are two Japanese agents IN
China who are intrusted with the task
of completing the deal. Their names
in Chinese are Chu Use, who IS be-
lieved TO be a Japanese major general
OF the name of Chikuyasu, and Chuan
Chi, a technical expert of the name OF
KawasaN. These two men-accom-
panied by a section chief in the Mill
tary Supply Department OF the MIN
istrv of War-left Picking at the be-
ginning of the week TO so 10 Honan 20
inspect the Kunghsien arsenal. From
here they will proceed to visit the
Hanyang arsenal and the Kiangnan
arsenal.
The present scheme of Tuan Chi-jui
appears TO be the completion of his
masters scheme with the assistance of
the Japanese. Though his soul was
loaded with great iniquities, Yuan
Shih-kai was too astute TO lend himself
I, the furtherance of japanese aims IN
China. This is reserved for n mind
whose ignorance and stubbornness is
interpreted as strength by fools and
knaves.'