Great Falls daily tribune. [volume] (Great Falls, Mont.) 1895-1921, 1920-11-20
GOVERNMENTS
GIVE APPROVAL
Of CHINA LOAN
Consortium Designed to
Aid Development
of Railways.

New York, Nov. 19.-Formal appro-
val of the new Chinese consortiurn by
the governments of the United States,
Great Britain. France and Japan, was
announced here Friday night in a state
ment by j. P. Morgan & Co., in behalf
OF the American banking group.
Inc statement says:
:, The formal agreement, completing
the organization of the banking groups
Of the United States, Great Britain.
France and Japan, In a new consortium
designed to assist the Chinese people in
the development of their railways and
of their other great public utilities and
approved by the governments in dues-
ton, was signed by all the delegates Of
the four banking groups in conference
In New York City on October 10. 1920.
Support of Governments
The agreement begins by recording
that the four groups are to have the
complete support Of their respective gov
ernments and the preamble indicating
the attitude of the colsortium towards
China records that the national groups
are of the opinion that the interests
OF the Chinese people, can in existing
circumstances, best be served by the co.
operative action of the various banking
groups. representing the investment in
terests of their respective countries in
procuring for the Chinese government
the necessary capital for a program of
economic reconstruction and improved
communications; and that with these OBJ
Jects in view the respective national
groups are prepared to participate on
equal terms in such undertakings as may
be calculated to assist China in the es
tablishment of her great public utili-
ties and to these ends to welcome the
cooperation of Chinese capital"
''The agreement. the language Of
which is largely technical, contains the
following provisions:
Determine Own Unit.
Under Article 1, each group is to
determine the composition of its own
group being determined by the member
groups, subject to the approval of their
respective governments.
Article provides that the loans to
be undertaken by the consortium shall
be only of a public character; that is to
say, the consortium does not plan to
invade the field of private initiative, but
to confine itself to loans involving pub
lie issues made to or in behalf of the
republic of China or to loans guaranteed
by the government or by any one of the
provincial governments. Concessions
upon which substantial progress has al
ready been made need not necessarily
come within the scope of the consor-
tium.
Articles 3 and provide for complete
equality among the groups in all busi-
ness undertaken by the consortium and
reserves freedom to each group to de-
cline to participate in any business
which it does not desire to undertake.
Not Jointly Liable.
Article provides that, so far as
possible, the parties to any operation
shall not be jointly liable, each of the
groups undertaking to Gquidate its own
engagements.
Under Articles 6 and Z 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.
by Article s. the duration of the
consortum is fixed for five years unless
a majority of the parties decide to ter
inmate it earlier