The Washington herald., 1920-02-04
By JOHN HEARLEY.

China questions Japanese SINGER
ity in the latest turn Of the Shan
tung controversy. Japan has pro-
posed negotiations. allegedly look
ing to the territory's early restora-
tion to the Chinese. Pekin, however.
has been too often forced in the
past to accept injustice under the
cover of diplomacy to leap before
looking on this occasion.
Chinese statesmanship is inclined
to await Americas acceptance or
rejection of the treaty Of Versailles
before making any FURTHER definite
commitments. China has already
made peace with Austria and has
thereby become a member of the
league of nations. 1t is not impos-
sible that the Chinese signature will
never even automatically recognize
the covenant clauses giving the
former German-held penis &c
Japan.
Economic penetration in China
has always been a means to politi-
cal and even territorial penetra-
ton China has learned her lessons
in the western" school of expert
ence. and she Is suspicious of japan
even though the latter follows the
trail blazed by the powers of the
west.
Notwithstanding their differences.
China and Japan at bottom both ad-
vocate the Orient for the Orien-
tails" 1t must be remembered. It
was the Occident that first abused
the principle Of self-determination
and the Orient has sometimes been
merely human enough to copy bad
examples"
Slicing Up China.
France and England have whit
tied Siam until she is today only
a svIier of her former self Things
are already bad enough in China.
.cept the hinese. without inviting
the Siamecse fate.
There are Italian settlements"
in the treaty ports. Leased" ter
ritory is in the hands or the Portu-
gese. the British and the Japanese.
Portugal and Macao. Japan has Port
Arthur and Great Britain Wal Hal
Wal. China trusts America alone,
and American diplomacy has al
most always sought to promote
justice for the Chinese.
Pekin does not forget the Amer
after the Boxer uprising. The
others powers not only grabbed"
but kept their grabs" even to
such things as private household
furnishings. American big busine IS
in China, however. is not AWAY
fair or generous-minded to Chinese
popular rights.
Trade Rivalry In China.
Trade rivalry in China has
reached white heat. and commerce.
ally one nation does not really
watch but glares at another. There
was recent report that American
firms in shanghai and Tien-Tsen
had contracted to develop the vast
forests and gold mines of North
and Central Manchuria- The gov
errors of KERN and Heilungkiang
were said to have signed the con-
tract through the maneuvers of
the pro-American Taoyin of Har-
bin.
The mere report was sufficient to
excite the japanese and start their
counter activity. For a Chino-Jap-
anese agreement stipulated at
Pekin with the Chinese Neshihara
gave Japan the right to develop
these two provinces.
A great Chino-Italian bank is to be
established in the Italian conces-
sion OF Tien Tsin. There will be
branches in the chief treaty poSts
and the provincial capitals. The
Italian capitalists will invest 20
100000 pounds. and the Chinese
government four million dollars.
The bank will have a time limit
OF thirty years and. Significantly, viii
have a controlling Italian direct-
torate. In view of these allied ub-
dertakings. one cannot help hIt
wonder Why such financial imperibI-
ism goes abroad, instead CT seeking
to assist reconstruction at hokne
Uncle Sam will be the ultimate tar-
get for war-ruined Europe's fgen-
zied finance.
Protests Are Illuminating.
Other protests. beside the JaIpan-
csc. throw light upon present ton-
mercial things in China The ma
ture OF the so-called British aero
plane loan to China hurt both
American and French official Son
sitiVeness. The new contract gave
the British company. I've opti on Of
supplying any further planes pur-
chased by China in the future
Both France and America Hooked
upon this as a violation of their
respective commercial treaties
The Banque Industrille de Chine
also complained. through the French
Legation, about China's right 10
secure the late 1919 America n loan
on Chinese tobacco and wine, reye-
nue.. Inc FTencn Banque Claimed
that the fifty million franc loan mo-
got:ated between the Yuan, shin