New-York tribune., 1918-07-30
State Department Would
Fight Enemy's Menace
to Borders
$50, 600, 900 Likely
To Be Initial Sum
Government Aids Bankers. .
Would Invite Foreign
Cooperation

WASHINGTON, July 2e.-A No..
policy of approving loans by Ame,i-
can bankers to China, so that nation
may be the better able to defend itself
against enemy forces approaching its
borders, was announced today bv ths
State Department. No specific amenn.
for the loan was announced, but It j.
understood that s5O,OOO,O0o will be
advanced
Acting Secretary Polk made this for
mai announcement:
China declared war against Ger
many very largely because of the ac-
ton of the United States Therefore.
this government has felt special IN
terest In the desire of China so to
equip herself as to be of more specific
assistance in the war against the Cen
tral Powers. Until the present time
the engagements of the United States
IN preparing to exert effectively its
strength in the European theatre Of
war have operated to prevent specific
constructive steps to help China rea-
llze her desires.
= Sei''i J, however, TINS government
Ielt that, because of the approach 10
Chinese territory of the scenes of dis
order, special effort should be made
70 pace proper means at the disposal
10 ohina- Consequently a number of
american bankers who mad been inter
ested IN the past in making loans to
Chlna and who had had experience IN
the ORIENT were called to Washington
and asked to become intereste in the
a hnfN =
promptly, and an agreement has been
reached between them and the De-
partment of State which has the fol-
lowing salient features:
Terms of New Policy
First, the formation of d group of
American bankers to make a loan or
loans and to consist of representative
from different parts of the country.
Second-An assurance on the part
OF the bankers that they will cooperate
with the government and follow the
policies outlined by the Department
of State.
"Third-Submisson of the names of
the banks who will compose the orcnp
for approval by the Department. Of
State.
Fourth Submission of the terms
and conditions of any loan or loans
State
"Fifth-Assurances that if the terms
and conditions OF the loan are accepted
by this government and by the gov
eminent TO which the loan is made, in
order to encourage and facilitate the
free intercourse between American cit
lzens and foreign states which is mu-
tually advantageous, the government
Will be willing to aid in every way
possible and to make prompt and Wig
orous representations and to take
every possible step "a insure the exc
cution of equitable contracts made in
good faith by its citizens in foreign
lands
Would Join With Foreign Bankers
1T is hoped that the American group
viii be associated with sankers of
Great Britain, Japan and France Ne
gotations are now in progre ;s between
the governments of The United States
and those governments which it is
hoped Will result in their cooperation
and in the participation b. the bankers
OF those countries in equal parts IN
any loan which may be made.
Besides the warlike conditions
which confront China on her northern
and western borders, there is a fur
ther incentive to cooperate with all
lhese governments because the war mas
created d community of interest be
tween them and their citizens and
those of other governments and has
broken down barriers which once have
existed and has made easier the inter
course between them. II is hoped that
if the project succeeds 1t w serve as
an agency through which this gommu-
nifty of interest and the consequent ex-
pansion of our mutual interests abroad
may be adequately and properly ex-
nressed +"