The Birmingham age-herald., 1918-08-26
New Friendships
 Formed With China
By HOLLAND

ny
 New York, August 25.-(Special) )-At the state department in Washington i'm mediately after the details were perfected so as to be embodied in the contract be- tween the United States and China which calls for the construction of ships for the United States by China, there was some informal conversation The Secre- his qualification that China should be willing to utilize her facilities for the construction of ships for the Uniteot States and referred informally to the fact that this negotiation made it all the more convenient or practicable for the United States to give It's moral suppor, to the proposition that loan of $50,000,. 900 should be made by American bankers to China.
 While the negotiations were pending it was inevitable that some secrecy should be maintained Now, however, in view of the completion of the negotiation ana the beginning of the life of the contract, as well as the perfecting of the syndicate to advance $50,00c,0c0 to China, much of the ban of secrecy has been removed Therefore, t has been possible to obta In from some of those who had principal part in these transactions detailed irfor. nation.
 The contract whereby China is to buii1 at her shipyards at Shanghai possibly as many as 12 steel steamships which will average 10,00e tons capacity each, is an entirely different matter from the four nation loan to which the state depar.~ lnent of Washington has given not only It's moral support. but much encourage. ment The United States is to pay Cnina or to pay for material furnished to China, the transaction being financed through the emergency fleet corporation, possi- bly as much as s24.000, 600. A part of this sum has already been paid, the money being utilized for the purchase of steel and other equipment which will be spe ed ] fly shipped across the Pacific yc Shanghai
 FIFTY MILLION-DOLLAR LOAN
 It was a coincidence in point of time that the negotiations for a loan of S5y- O00,000 to China should have been under way when the United States and China were perfecting the contract involving if executed, the construction of ships fyr the United States in the Shanghai yards
 The loan of $50 900 was it was at first believed to be made to China tor the purpose of facilitating certain indus tries, transportation construction and in- ternal improvements. But very high au thority this morning asserted that this is not the real purpose of the loan. In or. der to understand the meaning of this transaction. 1t is necessary to go back Q the days when the so-called six-natiua loan, originally intended to be $50. .00O, 900. was perfected by agreement with repre- sentatives of Great Britain, France. Ger many, Russia and the United States. Aus tria was also included. although almost incidentally.
 In 1915, a year or so after this arrange ment was perfected, Col William J. Bryan, then Secretary of State. deemed it inexpedient for the state department to give its moral support to the American syndicate headed by Henry F. Davison. which participated in the loan. There. fore 1t became necessary for the. Amer.- can syndicate to withdraw from this ar- rangement That left Germany, Russia, Austria, Great Britain and France az the nations which participated. or were to participate, in the loan to China.
 HOW CHINA FELT ABOUT IT There was in China some misunder standing with respect to the new atti- tude of the American government toward this six nation loan. However. the sit uation was fully explained to the Chirese government. and whatever feeling or