New-York tribune., 1920-05-11
Loan to Revive
China Assured
By Consortill111
Four-Power Group, Includ-
ing us, Ready to Furnish
S25O,0OO,OOO if Needed
in Development Plans
n. Y. Concerns to Help
Lamont Induced Japan
TO Withdraw Objection
10 International Action

From The Trjbunc's Washington Bureau
WASHINGTON. May 10.-The State
Department announced to-day that the
new consortium for China, arranged
after two years of negotiation, would
provide sufficient funds for economic
ard industrial development and result
IN the pacifcation and rehabilitation of
the nation. The consortium became a
fact last week, when Japan expressed
its Willingness to cooperate with the
United States, Great Britain and France
IN the financial arrangements
The four-power group, to which
other nations may be admitted. will
make loans for public purposes to the
government of China. or on security
bearing the guaranty of the govern
ment.
The State Department expects that
now the agreement will enable China to
adopt a constructive program. The
consortlum is based on the full accep-
tance of the principles laid down in
the original American proposals.
Each of the four governments has
authorized the formation of banking
group of its citizens to cooperate with
similar groups in the three other coun-
tres These groups are to receive "the
plomatic support of their govern
mcnts.' The terms of future loans.
which It is unof1icialy estimated NAV
run as high as $3.50 100000. will be sub
Jcct to the approval of the govern
monts.
Ready to Supply Funds.
ut now appears the State Depart
ment says, "that the four powers most
interested in China and its DEVELOPMENT
have arrived at an understanding for
practlcal cooperation which will insure
funds to China for its legitimate needs
and assure the powers that these funds
will be properly and constructively en-
pioyed. 1t is thought that the consor-
tlum Will provide a basis for co0pera-
ton in China which will eliminate
much Of the conflict of interests which
IN the past has rendered business there
hazardous and out of which have arisen
many Of the understanding which
at times have threatened the peace of
the Far East
Thirty American financial institu-
lions are embraced in the American
Group, which was formed in 1918 at the
suggestion Of the State Department. 1t
includes J. P. Morgan & Co.. 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 Ban kers Trust Company, the Cen
tral Union Trust Company, the Equi-
table Trust Company; Harris, Forbes
< Co., Brown Bros. & Co., Halsey,
Stuart Co, Lee, Hgginson & Co. and
kidder, Peabody & Coz of New York
Several Cities Represented
Also the First National and Ma
ilonal Shawmut Bank, of Boston; the
Continental and Commercial Trust and
Savings Bank. the First Trust and Saw
ings Bank, the Harris Trust and Saw
ings Bank and the Northern Trust
Company, of Chicago; the Commercial
Trust Company, and the. Girard Trust
Company of Philadelphia; the Union
Trust Company and the Mellon Ma
.tional Bank, of Pittsburgh; the St
Louis Union Trust Company, the Mer-
camille Trust Company and the Missis-
sippi Valley Trust Company. of St.
Louis; the Anglo and London-Paris Ma
tlonal Bank, the Bank of California and
the Whitney Central National Bank, of
San Francisco
among the principles governing the
action Of the consortium are the fol-
lowing: That no nation should at
tempt to cultivate special spheres of
influence; that all existing options,
where practicable, be turned over to
the consortium as whole; that the
tour-power group act as a partnership
created in the interest of China"
Besides lending money to China, it is
understood that the consortium will
offer to reorganize China's currency
and taxation systems.
Thomas w, Lamont of J. P. Morgan
& Co., who is now in Japan, went to
tho Orient several months ago to in
duca Japan to withdraw objections to
joining the consortium.