The Washington herald., 1918-07-03
U.S..MAY GIVE
CHINA Big LOAN
H. P. Dawson and Other
Bankers Consider 1t
Again.


work and with preparatory, appro-
priations to be taken from the sec
ond Red Cross fund recently secured.
nevertheless Henry P. Dawson will
undoubtedly ind time to learn in de-
tail Of the negotiations which are
understood now to be in progress be-
tween the State Department ard
small group of American bankers
which II Enthusiastically concluded will
enable China to secure loan Of s5o.-
10000.
actively Identified with very great
war financing and a little later with
the Red Cross organization, pro-
foundly interested in the Chinese sit
uation and our opportunities In China
His judgments were not haphazard
since he was careful to make thor
ouah study of conditions In China
and was brought into Intimate as
sociation with willard d. Sualght'
who as the representative IN CHINA
of ]. P. Morgan & Co., and OF other
American interests became familiar
Win SPO-N~ NaN'
enthusiasm Of the opportunities for
increasing American trade and for
the investment of American capital
in railway promotions and mining
operations
American capital had already been
invested there in considerable amount
for the Chinese government. One
of the largest OF American indus
tries secured the contract for the
construction of the great Chinese
arsenal or at least for the equip
ment of II with tools and machinery
adapted to the manufacture of
rifles.
Americans I'm China.
Americans who have been in China
and have haC dealings with Chinese
merchants and bankers have always
found that when a citizen Of China
gives his word in a business transac-
ton it is as good as though It we're
heavily bonded. Robert Dollar. the
leading shipbuilder of the Pacific
Coast who is now giving his services
to the government. said some time
ago that there were two fundamental
principles which should be strictly
adhered to in dealing with Chinese
merchants and bankers. One Is that
no attempt should be made to cheat
a Chinaman: another that when the
word Of a Chinese merchant or banker
is given. reliance should be placed
upon 1t, for il never is forfeited.
These ere some of the character
istics Of the people of China concern
ing which Mr.. Dawson obtained ex-
cellent information. He also learned
something of the opportunities and
the resources OF China And the prob
Iii
Secretary of state in the Taft Ad-
ministration. decided that it would he
a highly expedient thing for the Unit
ed states to do if the American bank
ers were to join with Representatives
Of five European nations in floating
a loan for China the amount OF which
when first mentioned was to be S1jo.-I
ooo.OO0, he communicated with Mr..
Dawson. summoning him to Wash
ington because he knew of Mr.. Davi-
sons interest I'm and knowledge of
China. The interview between the
Secretary and Mr.. Davison vas brief,
but it was satisfactory. Nf. Dawson
promised the support If New York
bankers to the proposition. and pIeds-
ed himself to perfect, on his return
to New York within a few hours an
American Syndicate.
Some Great Diplomacy.
No sooner said than done. The
bankers pledged their support. having
oehinf them the moral support of the
government itself. Mr. Dawson was
was commissioned to represent the
bankers at Paris, and he there met the
representatives Of the other FIVE ma
tons participating in the loan. He
was el1Hted So chairman of the COM
mission. Possibly some of the astute
diplomats who were members of his
commission we persuaded that this
Young American banker who, prasurn-
ably, had No experience in diplomacv.
would serve their hidden purposes If
he were chosen chairman Of the com
mittee. They speedily discove:el hat
Mr.. Dawson possessed the skill, the
foresight, the capacity to see behind
alleged motives. for he Immediately
asserted that two things must be un-
derstIod and agreed to before ire
commission acted. One was that there
was TO @e RI paI tGon or grabbing Cf
any Cs:.1ese territory by any of the
nations psrtic-LttInS In the loan. anl
the other was that China should re-
main open &c the trade of all nati,p-,
not making any ore a favored natl IN.
These principles we're accepted Sosae-
Dy ledSI Two OF
the commissioners. and the agreement
was made to lend to China 2ot a hun
dred and fifty millions; but hundred
and twenty-five millions. The United
states assumed its proportionate sha=e
ct tats loan. The money vas 10 be
used IN exploiting wisely some Of the
resources OF China in promoting rail-
r"ad construction and in stimu' 'atl1g
industry.
Dawson Enthusiastic.
Mr.. Davidson returned to New York
enthusiastic, for he believed that II
China were helped in this way there
would follow speedily remarkable in
dustrial activity in that republic. But
il so happened that shortly after the
agreement was made the administra-
ton at Washington was changed. The
Secretary of State. Col Bryan. could
not bring himself to look at the pro-
position as his predecessor Secretary
Knox did and therefore declined to
give the moral support of the United
states to the undertaking. That made
it inevitable that the American syrdi-
cate withdraw and great was the re-
Gret Of Mr.. Davidson and others that
this had to be done.
Now China asks for a loan of fIftv
millions and almost identically the
same group Of bankers who pledged
themselves to take a proportionate
part OF the us, 900. 900 loan stand ready
it Is understood, to lend China under
certain conditions, including the CO.
operation Of Japan s5OOO0O0O. That
much money will be made of great
avail In aiding the development of
China.