Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-12-14
'SHANTUNG CRISIS
| ST|RS CONFERENCE
Japanese and Chinese Dele
gates in TangIe Over Kiao-
Chow Railroad
NAVAL AGREEMENT NEAR
BY the Associated Press

by the AsSOctMed tr6sS
Washington, Dec. 14.-The naval ra-
DO and Shantung, now the two over
shadowing issues of the Arms Confer
ence, both were at a crucial stage today.
but with varying prospects of immediate
settlement.
There was every indication that the
naval ratio discussions we're proceeding
favorably, and some of the delegates be-
1ieved final solution would be reached
Mt the conference Of the big Three"
late today.
The Shantung negotiations, on the
other hand, have developed situation
described in official circles as very
delicate and the japanese delegates
have referred TO Toxic the matter of the
kiao- Chow railroad. point which has
developed into an issue. It is hinted
that the Chinese and japanese plem-
potentiaries may refer their differences
directly to big Four" composed Of
heads Of tho American, British, japan.
csc and Chinese delegations.
Japan's desire to retain her new
battleship Mutsu is the issue about
which center the naval discussions, with
-'S O"p'iiVcC uppui'hNii lCuuS W nv
cept the American five fvc three"
plan If permitted to keep the Mutsu and
scrap instead an older vessel.
Would Balance Naval Concessions
Similar concessions for the British
and American navies would be requisite
as an Offset, and the task of arranging
all the technical details involved is one
which requires considerable discussion.
Ia hA Slap k,,wa l. L.
matter of the kiao-C Chow railway,
China has made pledges of payment
which her delegates think ample to com
pensate the japanese for improvements
they have made on the road, but the
japanese delegates are unwilling TO
accept the offer. and consequently have
cabled Toxic for further Instructions as
to what form of security should be
required.
A British spokesman pointed out to-
day that Japsn's suggestion for reten-
ton of the Mutsu would result in the
Japanese having two warships Of the
largest type, the Mutsu and the Negato.
Then. said the spokesman, the British
and Americans would have to make
readjustment of the list If the five
hve-three- e-ratio was to be maintained.
The British might have to build two
more Hoods. and on the other hand the
japanese might have to scrap some ad-
ditional ships, Of the older types, in
order to maintain the ratio.
Japanese. Chinese Crisis
Failure Of the Chinese and japanese
delegates to agree as TO the Kiao Chow
railroad probably would bring some pro-
posal from the British and American
observers in q hone still to keep the
dispute out Of the Conference proper, q
British spokesman said today. II this
proposal proved futile, he added, more
than likely Messrs. Hughes, Balfour
and Kato, and a Chinese representa-
tive would take hand in a further at
Tempt to effect settlement satisfactory
, both to China and japan.
There appears to be no doubt in Con-
ference circles that the Chinese and
japanese have reached crisis in the
discussions concerning the Chinese offer
to purchase outright the railroad,
Inc possibility that Japan, through
the seemingly simple question of se-
curity, could retain a financial control
over the railroad which, while strictly
a bankers proposition, virtually would
exclude the Chinese from any author
1ty, is not being overlooked by the
Chlnese, who assert that China's con-
troll of the road. while apparently
srahIed DV Japan, might actually be
seriously restricted.
Discuss Spheres Of Influence
The question of foreign leased ter
ritories in China and special spheres
OF influence were taken up again by
the Far Eastern Committee, bur no
action was taken and only brief ses-
sion was held. Chinese representatives
presented a detailed statement ON spe-
cial spheres Of influence, particulariz-
Ing those to which China especially
objects. japanese representatives said
they desired to study this statement,
and thereupon the committee adjourned
until tomorrow.
The sub committee, headed by SEN
ator Underwood, to which was referred
the question of the Chinese tariff, is
preparing to resume its work. The sub.
committee now has before it q request
from China for increase from to "a
per cent In the Chinese tariff.