New-York tribune., 1920-11-20
Powers Agree
TOConsortiul1n
Helping China
U. S., Britain, France and
Japan Approve Arrange
ment to Finance Rail
ways and Other Utilities
4 Groups to Cooperate
Bankers of Any One Ma
ton May Remain Out of
Some Particular Project

Formal approval of the new Chinese
ccnsortium by the governments of the
United States, Great Britain, France
and Japan, was announced here last
night by J. P Morgan e. Co., in behalf
of the American banking group. The
agreement was signed in New York
City October Is.
According to the terms of the con-
sortium, which is for the purpose of ex-
tending financial aid to China in the
development of Chinese railways and
other public utilities, freedom is re-
served to each of the four national
banking groups to decline to partici-
pate in any business which it does not
desire to undertake. Moreover, any
group not desiring to make an issue
in its own market may request the
other groups to include its share in
their own Issue. The duration of the
life of the consortium is fixed for five
years unless a majority of the parties
decide to determine it earlier.
Representatives of British, French
Japanese and American banking
groups jointly concerned in the con-
sortium signed the formal agreement
tL d conference III New OTh on OClO-
her Is. The agreement begins by re-
cording that the four groups are to
have the complete support of their re
spcctive governments. The preamble
aays specifically:
Cooperation Is Desired
"The national groups are of The
opinion that the interests of the Chi
reese people can in existing circum-
stances best be served by the CO.
operative action of the various bank
.ng groups representing the investment
interests of their respective countries
in procuring for the Chinese govern
ment the capital necessary for a pro.
gram of economic reconstruction and
improved communication and that with
these objects in view the respective ma.
tional groups are prepared to partici-
pate on equal terms in such undertake
ings as may be calculated to assist
China in the establi ehment of her
great public utilities ana to these ends
to welcome the cooperation of Chinese
capital"
The formal statement issued yester
day at the Morgan Offices said:
"The agreement, the language O.
which is largely technical, contains the
following provisions:
termine the composition of its owl
unit the admission of any new nationa
group being determined by the membe.
groups, subject to the approval of thei.
respective governments.
All Loans to Be Public
"Artcle provides that the loans t.
be undertaken by tne Consortium shall
be only of a public character; that j.
to say, the Consortium does not plan
to invade the field Of private initiative
but to conhnc itself to loans involving
public issues made to or on behalf o.
the Republic of China or any province,
of the Republic, or to loans guaran
teed by the government or by any on,
of the provincial governments. Con
cessions upon which substantial prog
ress has been already made need moi
necessarily come within the scope O.
/ the Consortium.
Provision is made in Articles II
and " for complete equality among
the groups in all business undertaken
by the Consortiurl. ana reserves free
dom to each group to decline to par
{. ticipate in amy business which it doe.
not desire to undertake.
article V provides that, SO far a.
possible, the parties to any operation
shall not be jointly liable, each of tn,
groups undertaking to liquidate its owr
! cro re