New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-08
ssIf 1t Succeeds Possibility
of War in the Far East
Will Be Greatly Reduced"
Is Lamont's Statement
Plan of Allied Powers
Americas Peculiar Interest
in the Move to Assure
Peace to Picking Regime
By Thomas w. Lamont

conducted the negotiations IN Japan
and China that have led to the form
alton of the neic consortiuns for
China.
For years, almost for generations,
there has been a Far Eastern question.
In that question, although she has
sometimes failed to realize it, America
has always been deeply interested
Through the formation of the new con-
sortium for China this troublesome Far
Eastern problem has, 1 hope, been
brought one stage nearer it's solution.
The new consortium is an interna-
tional body, made up of groups of banks
and bankers from the United States,
Great Britain, France and Japan. These
banking groups have been formed not
only with the approval but at the re-
quest of their four governments After
long months of negotiations they have
been finally organized into this interna-
tioal partnership. called the new con-
sortium. for the purpose of assisting
China in the development of her great
public enterprises.
The organization Of this body will, it
is believed. result in TIE sterilization of
economic. financial and perhaps of
political conditions in China; will bring
the five powers involved into closer
harmony of interest and sympathy. and
will thus be a substantial factor in
contributing to the permanent peace of
the Far East
A Marshal Foch Story
1t is, of course possible that not all
of these aims will be realized. Inter
national partnerships. even among
bankers, are not easy to handle; they
are apt to have the general defects Of
coalitions.
One of my favorite stories is that of
Marshal Foch, who. during all his ca
reer, had taken every occasion 20 say
that Napoleon was his pattern; that in
military tactics and execution he had
studied that great French master of
strategy, and for any worth that was
in him felt indebted to his master, Ma
poleon. But" added the marshal, "now
that |, Ferdinand Foch, have fought at
respect for Napoleon, who used to de-
feat coalitions"
We must remember that the forma-
ton of the consortium is but the first
step in a long and arduous pathway
The banking groups will have to dis
play toward one another great toler-
ance, great patience. Still, the four
banking groups have undertaken the
enterprise of the consortium in good
faith and in the best possible spirit.
With the welfare of China as the first
consideration. | persc nally believe that
in working together on this principle
and in a spirit of give and take the
consortium will succeed
In order fully to understand the
character of this new attitude toward
China one must go back for brief sur
vcy OF the old policy.
Starting in the middle of the last
century, the powers generally-with
the exception of the United States
developed toward China an attitude
that might almost be called the policy
of the warship. 1t was a gunboat here
or a squadron there to enforce diplo-
matte demand, and on many occasions
troops were landed and punitive
columns sent to the capital or into the
interior. Ports were seized or OBJ
tanned by pressure on a government
not strong enough to withstand bully
ing.
Along with these territorial Access
sions there were created, through a
variety of circumstances, a series of
spheres of influence" all tending to
impair the independence and sover-
eighty of China. This policy served to
divide up China commercially into al
most watertight compartments, and the
nations like the United States, which
much trading
Then, too, the contest for conces-
sons and for influence by the large
nations that were seeking to establish
their spheres of influence in China in
volved them in serious rivalries and
international iealousles. 1t was a sit
uation that might readily have led to
armed conflict.
The government of the United States
undoubtedly had in mind this fact, as
we'll as the preservation Of China 8
integrity, when it moved for formula
of joint action. If the consortium is
success the possibility of war arising
in the Far East will be greatly re-
duced and China will have a better
and fairer chance to work out her des-
tiny as an independent state.
A Consistent American Policy
Not the least Of the advantages to
America to be derived from the forma i
ton of the consortium is the final
adoption by Washington of policy
toward the Far East which seems log
ical, consistent and likely to endure
Americans in the Far East have com
planned bitterly, and with some reason
of their country's shifts of policy
Those changes have been due, as !
take it, not to vacillating minds. but
rather to changes of Administration and
differing points of view
There had been, it will be remem-
bered. an old international consortium
which was established In 1908 and was
made up of banking groups from Great
Britain, France and Germany. Its scope
was somewhat smaller, but the general
idea was international cooperation in
political loans to China. Such an idea
appealed strongly to President Roosc-
yelt. whose Secretary Of State, John
Hay. had laid down the policy Of the
open door" in China, and also to
President Taft They therefore re-
quested that an American group be
formed and be admitted into the inter
national group.
Accordingly small American group
was made up, consisting of Messrs. j
r. Morgan & Co., Messrs Kuhn Loeb
Co.. the First National Bank and the
National City Bank, all of New York
which was admitted to the information
al councils. 1t was this four-power
group that in 1911 made the loan of
SO .OO0,O sterling for the initial con
struction of the Hukang Railways in
China.
About this time banking groups from
Russia and Japan sought entry into the
consortium. Accordingly it was en-
larged by the admission Of the two new
groups, and thus was made six-power
group. In March, 1918, President VII
Il