New-York tribune., 1920-10-16
Great Things Expected of
Consortiu,n i'm Stabilizing
Conditions in Far East;
More Informal Meetings
Two-Year Discussion Ends
Agreement Is elimination of
Long Negotiations; Plan
Explained at Luncheon

great banking groups interested in the
project, comprising Great Britain
France. Japan and the United States
affixed their signatures to the final
agreement.
This action by the delegates marked
the closing of the formal sessions of
the international delegates and COM
pleted the series of conferences which
have been going on since the begin
ming of the week. The foreign finan-
cal ENJOYS will remain in this coun-
try for a time, it was stated yesterday
and it is expected that informal meet
ings will be held during the coming
week.
Great things are expected of the
consortium in the way of stabilzing
conditions in the Far East, according
to Sir Charles Adds, heading the
British banking group, who declared
at the Chinese luncheon of the Fifth
Avenue Association at the Waldorf
Astoria, following the forenoon session
Of the consortium, that the new COM
bination will not only be of immense
service to China but will end the inter.
national friction that has always ex-
sted among the great powers with rela-
tion to Chinese affairs.
international Cooperation
"China has been the seed of interna-
tional worriment and international
friction among the powers of the
world" said Sir Charles. 1T is our
duty through this consortium to sub
stltute international cooperation for
international competition"
The new international agreement
was signed on behalf of the American
banking group by representatives of
the managing committee, namely, ]. P.
Morgan G. Co., Kuhn, Loeb G. Co., the
National City Bank of New York
York, the Chase National Bank of New
York, Lee, Higginson e. Co.. New York,
and the Continental and Commercial
Trust and Savings Bank, Chicago.
Sir Charles, as representative Of the
Hong Kong and Shanghai Banking Cor
poration, signed for the British Bank
ing Group, Captain Rene Thion de Ia
Chaume, of the Banque de lIndo-
Chine, for the French Banking Group
and X. Takeuchi, of the Yokahama a
Specie Bank Ltd, for the japanese
Banking Group.
Formal Signing of Agreement
Formal execution of the agreement
is the final step in the comprehensive
plan undertaken two years ago this
autumn, when the State Department
addressed an identical note to the
British, French and Japanese govern
ments, with the suggestion that they
encourage in their respective coun-
tries the establishment of strong bank
ing groups, with the purpose Of form
ing a consortium for the assistance OF
China, the establishment of her great
public utilities and the stabilizing of
her financial economic situation. A
meeting was held in May, 1919, in Paris
at which delegates from all four of
the national groups were present for
the purpose of forming the ;nterna-
ticnal com bination A tentative organ
lzation was effected and al agreement
drawn up, subject to the approval of
the governments. Great Britain
france and the United States approved
promptly, but the Japanese govern
ment sought certain reservations, and
by its stand blocked for a time the
completion of the consortium agree
ment. It was not until MIR. Lamont
went to the Far East last spring that
the Japanese government withdrew
from It's position and became partici-
pant in the agreement without reser-
vations of any kind
Bankers in touch with the Chinese
situation said yesterday that the first
specific financial project to be under
taken by the consortium would likely
nave to do with providing funds for
the Hukang Railways. The initial con-
strGction OF this system was made pos.
slbie IN 1911, VIXEN the old consortium
which IS no longer in existence floated
a 10000 900 loan. The four-powe1
combination of Great Britain. France
Germany and the United States were
the active partners in that operation
viii Represent U. S. in Peking
Frederick w. Stevens, the special
representative of the American bank
ing group, is leaving the latter part of
TINS month for Peking, where he will
take charge of matters pertaining to
the interest of the American bankers.
In outlining the operation Of the
consortium at the luncheon of the
With Avenue Association Sir Charles
Adds denied the argument made in
some quarters that the consortium will
be sort of an international trust de-
signed to exploit China" AS an ex-
apple of the equitable basis upon which
the consortium is founded Sir Charles
cited the clause referring to the de-
velopment of the railways of China.
"llitherto," he said, 'the railroads of
China have been constructed in sec
tions. This was extremely wasteful
and impractical. 1t will be the purpose
Of the consortium to develop Chinese
railways in the future as a single svs-
tenn, with certain sections placed in
the care of the various mem bers of the
consortium. All railroads to be de
veloped will be the property Of the
Chinese government, and all construc-
tion work will be supervised by board
appointed by the consortium, with the
concurrence of the Chinese govern
ment. The powers engaged in this
enterprise, however, have agreed that
it is now UP TO the Chinese people to
take the initiative. No loan will be
forced upon China. She will get loans
only as she asks for them"
|. c. Suez, Chinese Consul in New
York, spoke in behalf of the Chinese
Republic. He pointed out that this
week marks the ninth anniversary of
the Chinese Republic, and paid a warm
tribute to the United States and the
American people for the cooperatiou
and help they have extended to China
in the past.
Mr.. Suez appealed for closer rela-
tions between China and the United
States, and urged that American stu
dents go to China Gas Chinese students
are now coming to the United States) in
order to familiarize themselves more
intimately with Chinese conditions and
needs. He said that the American
press and the movies are giving en-
tirely erroneous ideas of the nature
and character of the Chinese people.
and advised the United States to under