New-York tribune., 1920-02-10
Lamont to Go
East to Adjust
Loan for China
First of Morgan Firm to
Enter Orient as Finan-
cial Envoy Will Seek to
Elsd Japan's Opposition
Plans Outlined for Aid
Bankers Consortium of
Leading Powers May Be
Ready to Act by Spring

a definite agreement among the load
ing powers of the world regarding
financing the public needs of China
may be reached by spring. Thomas w.
Lamont, of J. P. Morgan e. Co., repre-
senting group of American bankers
and acting with the approval of the
department Of State, will leave on
Thursday for the Far East, where he
VIII seek to remove the differences Of
opinion which have induced Japan ia
make reservations to it's support Of tho
so-called Chinese consortium made up
OF banking groups in the United States.
Great Britain, France and japan.
After the working principles for the
consortium were developed at a meet
ing in Paris on May IL last the gen
eral constitution was submitted to all
iour OF the governments involved All
put 'ne Japanese approved, but the
latter made reservations especially in
regard TO excluding the provinces of
Mancnorla ana Mongolia from the gem
eral agreement.
Deadlock Over Loan
The other governments were unable
to accept these exceptions and q deod-
lock prevented action for many months
Early this year it was authoritatively
reported, however, that an emergency
Loan OF 10000 600 pounds sterling (nor-
maily ABOUT $25,O0O,O00) was under ne
EQUATION, and this fact was interpreted
to mean that Japan was ready perhaps
to recede somewhat from it's position.
One Of the evident objects of Mr.
Lamont's mission will be to meet the
Japanese first hand and to talk over the
questions in detail for the purpose of
finding out concretely whether the
Japanese group, which comprises all
the foremost institutions in Nippon
wishes to enter into a working agree
ment with the other three groups. 1t
is expected that when Mr.. Lamont re-
turns to this country, about June l,
he will be able to report definitely
whether Japan is in or out of the
consortium. Jeremiah Smith, Boston
attorney, acting as counsel and Martin
Egan, as special assistant, will accom-
pany Mr.. Lamont on the first trip on
business of member of the Morgan
firm to the Orient
In well-lnformed quarters it was as
serted that Japan's opposition to the
present consortium arrangement rested
somewhat on Misunderstanding Of it's
interests. There is fear on the part of
some Japanese leaders that the en-
trance of the consortium will enable
Americans and others to get much of
the Chinese business which otherwise
might go to Japan, and in the race for
which 1T has head start, particularly
in Manchuria and Mongolia.
Operations of Consortium
Moreover, the American retort to
this view is that it was we'll understood
at Paris that the operation of the con-
sortium would not interfere with pri
vate undertakings in the Chinese re-
PUBLIC for the development of indi-
vldual industrial, commercial and bank
ing projects, but that where the general
interests Of the republic or its prov
lhces were concerned the consortium
would attempt to act as unit and lend
its financial assistance to China.
Although Mr. Lamont is officially to
act for the American group, he probably
vii. be authorized to speak also for the
British and French groups. Mr.. Lamont
presided at the Paris meeting, where
the principles were adopted.
Thirty American financial institu-
tlons are embraced in the American
group, the composition of which was
not made public until yesterday. Be-
s1des >. r. Morgan & Co., the group in
cludes Kuhn, Loeb & Co., the First
National Bank, the National CITY Bank
the Guaranty Trust Company, the Chase
National Bank, the National Bank Of
Commerce, the Bankers Trust Com.
pany, the Central Union Trust Com
pany, the Equitable Trust COMPANY
Harris, Forbes & Co., Brown Brothers
q Co., Halsey, Stuart Co., Lee, Hip-
glnson & Co.: and Kidder, Peabody E
Co., of New York; the First National
Bank and the National Shawmut Bank
of Boston; the Continental and Com
mercial Trust and Savings Bank, the