The Washington herald., 1920-05-26
SEEK
SHAREIN LOAN
Other Powers Expected to
Refuse Profer to AS
sist China.
CONTINUED FROM PAGE ONE.

have to submit before obtaining
foreign money. But notwithstand-
! ing this possibility, Chinese pro-
/ gresslves expect that the consortium
will prove beneficial to China.
In the first place. they consider
the motive of the consortium. origi-
mated and championed by America.
as it was, to be a good one. Be
sides, they view it as according
perfectly with China's open door
policy.
The Chinese think that for China
there is safety in numbers" They
argue that it is safer to have loans
from several powers than to have
loans only from one power.
In the past Japan has been
China's large lending power. ia
pans disinterest has always been
open to suspicion.
On this account Chinese patriots
especially welcome the consortium.
They believe that great deal of
INSCRIPTIONS borrowing from ia
pan will be checked by 1t.
In the last two years Of the war
Japan loaned China about 5000. 0oO.-
900. The Tokyo government is
charged with provoking simultane-
ousIy Sino-Japanese intrigues. de-
signed to keep up the strife be-
tween China's north and south.
Canton Government CoIIapsinE.
Just now the Canton government
is reported to have practically
collapsed. Advices reaching Wash
ington indicate the grateful ap-
proach toward union of the north
and south.
Not only the board of commits
sioners. which constituted the tenn
porary government at Canton. but
also the entire parliament has
lbandoned the city. Some of the
members were compelled to fee,
while others left because of dis
agreement with the clue in con-
troll.
The commissioners. abandoning
Canton. included DIR. WI Ting
Fang, who was once Chinese min
lister to Washington. He with Sun
Vat Sen and Tang Shao Bi is now
at Shanghai.
Pledging itself to play the game
in the open, the consortium, 1t is
generally felt, will indirectly do
much toward healing the breach
between rival factions of China's
north and south. Money. it is said,
will be loaned to China only for
constructive purposes and not to
keep this government or that gov
ernment going.
The consortium's professed policy
is against INSCRIPTIONS borrowing.
If promises mean anything. money
will not be thrown away, but China
will always be asked the why and
wherefore of the loan.
Railroad Construction First.
There is a great deal of railroad
and canal construction to be done
in China. The consortium will i'm
mediately concern itself with such
works.
Railroad lines already started
will not be interfered with. Other
lines, constructed ouly on paper by
American, Japanese or French busi-
ness interests, will be pooled.
Such contracts will be handled by
consortium loans. The Japanese
contract for a railroad between
Taonan and Jehol is a case in point:
Consortium information, coming
here from the Far East, also carried
some references to the Shantung
controversy. Recent press dis
patches indicated the probability of
early Sino-Japanese negotiations
looking toward settlement of the
problem.
Such reports are characterized as
absolutely false. Controlling Chi
nese opinion still maintains tina,
Chinas right to Shantung is NOT
negotiable.
The Chinese do not expect the
Shantung matter to be touched on
by. the Anglo-Japanese treaty. Al
though the general feeling is that
England will oppose any such over
ture on Japan's part, Pekin Is
closely following the present Anglo
Japanese negotiations.