The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-16
CHINA CONSORTIUM
SIGNS AGREEMENT
Belgium's Application to Join
Granted Subject to -Four
Powers Approval.
FUTURE WORK IN PEKIN
Formal Meetings Of Delegates
Are Ended-Chinese Rep
resentative on Way.

Negotiations started two years ago
were brought to contamination yester-
day. when tho first series of conferences
OF the Chinese consortiun representa-
tives adjourned sine die with the fnal
agreement signed by the delegates and
with the four Governments concerned
notified through their foreign Offices OF
the action OF the banking groups. Be-
fore adjournment the application OF Be-
GUM to join the United States, japan.
Great Britain and France In the activ
tiles of the consortium was granted.
subject to the approval OF the four Gov
ernments concerned.
Although the formal work OF tho cas'-
aortu7n Is completed for the present the
delegates viii remain in New York aui
vicinity for another weel. for informal
conferences with the Chinese representa-
tive. who is scheduled to arrive to-day
from Pelin via Vancouver, but the rer
progress OF the consortiurn Will hereafter
, be largely determined by the work ~
the representatives domiciled 1T Pekin
Frederick w. Stevens. who viii Join tho
representatives OF the other banking
groups at Pekin, expects to saii from
the Pacific coast en- o. about October %.
The formal -acStinss OF the consor-
tiunl have before them no application for
specific loan from China. Such an APP
plication must ba initiated by the Pekin
Government, and no .oan Is expected to
be granted without full consideration OF
all OF tho aspects OF .he situation. II In
probable that tho fret application from
China will have TO do with funds to COM
plete the HukuanS Railway, but nothing
will be done In that matter until the diff
fculties connected with the outstanding
coupons of Hukuang Railway held ia
former enemy countries have been
smoothed away.
The signing OF the agreement marks
the final step in the plan for the assist
nnce of China. 1t was signed on behalf
of the American banking group by the
representatives OF the managing commit
tee, namely: j. +. Morgan s. Co, Kuhn.
Loeb & Co., the National City Bank OF
New York. the Guaranty Trust Com
pany, the Chase National Bank, Lee,
HigGlnson q Co. and the Continental and
Commercial Trust and Savings Bank OF
Chicago. For the other groups the sign
ers wore: British. Sir Charles Adds, as
representative OF tho Hongkong and
Shanghai Banking Corporation: French,
Capt Rene Thien dc Ia Chaume Of the
Banque de rIndo-Chine. and Japan. X.
Takeuchi OF the Yokohama Specie Bank,
Ltd.
Just two years ago the State Depart
ment addressed an Identical note to tho
British, French and japanese Govern
ments, with the suggestion that they
encourage in their respective countries
the establishment of strong banking
groups with the purpose Of forming
consortium for the assistance Of China,
the establishment OF her great puolio
utilities and the stabilizing of her finan-
ciai and economic situation. The frat
definite result came at meeting. held
H.. ~ MI ", which
delegates from all four of the national
groups wcre present TO form the con-
sortiur. At that time q tentative Or
ganization was effected and an agree
mont drawn up. subject to approval OF
the Governments.
The action In May OF last year was
approved promptly by the British.
French and American Governments, but
the Japanese Government directed that
certain reservations should be fled with
respect to portions Of Manchuria and
Mongolia, which they claimed should
fall without the scope Of the consortirni.
Despite frequent exchanges between the
Governments concerned, no solution APP
peared. and finally the French. the
British and the American groups re
quested Thomas w. Lamont last winter
to proceed TO japan and thence to China
| to stralghten out the difficulty.
| Before Mr.. Lamont's departure from
Japan last May the final agreement
was arrived at by the Japanese bank
| ing group and the Japanese Govern
ment. According to It. the reservations
!, were Withdrawn and the Japanese un-
| dertook to enter the consortiurn on the
same basis as the other groups. Tbs
meeting of the consortium just ended
was called to complete the consortium's
| formal organization and to lay general
| nIana with reference to O constructive
programmo for China For the lrst
time the foreign delegates accepted the
| invitation to make New York the rest
! of the conference. Sir Charles Adds
went to Washington last night for so
| cfel visit