The Washington times., 1921-12-08

IS ISSUE WHICH
WILL NOT down
creeps Into Discussion at Arms
Farley Through Chinese
Diss abstraction.
BY POLITICUS,

most vitality Interested in tine fortunes
OF this strange alliance OF govern
ment and high finance. The Con-
sortium which was planned to mon
opolixe China's future financing was
dragged into todays secret confer
ence proceedings.
This time the appearance Of the
more or less mysterious stranger TOOK
the form Of protest by DR.. yelling
ton koo. the Chinese representative,
against the japanese claim thai At
the time the Consortium was formed.
the American, French ana British
Governments had undertaken 70 safe
guard" the vital interests Of Japan In
.Manchurta. DIR. HOO declared that
such an assurance violated the Root
resolutions plcdging the sovereignty,
Independence and integrity Of China.
In reply. Secretary Hughes declared
that the japanese claim could not
have been Offended to 20 farther thru
the acf,Ai correspondence Of the
Ameri an Government on this ques-
ton. That correspondence contains no
such assurance.
DR.. Koo's protests were printed In
the official communiQue for the day.
Imagine the surprise Of the State De-
partment when It discovered that the
communicate made no mention OF Sec
rotary Hughes reply. No explana-
ton has been forthcoming for this
strange omission OF Secretary Hughes
declaration. but an amendment to the
was given out during the
evening containing Secretary Hughes
remarks.
Another interesting phase of the
Consortiums relation to China on
which the Arms Conference may yet
find IL necessary to pass Is the con-
flict between the Consortium pro.
gram and the Open Door.
Open Door Policy.
The famous Open Door policy has
been interpreted by every Secretary
OF State since Hay as meaning
equal opportunity for all Secre-
tary Hughes has underlined this inter
probation with vigorous emphasis. In
the formal letter which he wrote to
"Messrs. j. p. Morgan & Company
for the American group. 20 Wall
street, New York." endorsing the Con-
sortium in the name Of the United
States Government, Secretary Hughes
said he did so in reply to a Morgan
letter which declared that the opera
tons Of the Consortilnn are I'm no way
designed to interfere with the private
initative Of our nationls or those of
any other country, that II does not
propose to undertake any mercantile,
industrial or banking projects, but
plans only to help China in the estab-
lishment of her great public utilities
such as the building of her railways.
canals. etc, thereby assisting In
China economically and
and making that field q
COT 70, he sntH tot 1--we 81 az
zens In private enterprise in com.
meree, industry, etc."
Principle Is approved. ~.
ssfa nSph." wi'dte secfecGry Husf1cs,
II am happy to sadvise. You that the
principle of this cooperative effort
for the assistance of China has the APP
provsl Of this Government. which Il
hopeful that the consortium consti-
tuted for this purpose will be effective
In assisting the Chinese people in their
efforts toward q greater unity and sta
bility. and I'm affording to Individual
of all nationalities equality
Of commercial and Industrial opportu-
nifty and a wider field of activity in
the economic development OF China
So much for the correspondence.
Now what are the facts as revealed by
the consortium itself? That document,
~ filed In the State Department, Ie-
clares that the governments Of the.
United States, England, France and
Japan "have undertaken to give their
complete support to their respective
national groups in all operations un-
iertaken pursuant to the agreement
and have further undertaken that in
he event of competition in the obtain
ng Of any specific loan contract that
he collective support Of the diplo-
matte representatives in Peking of tie
our governments will be assured to
he parties hereto for the purpose Of
such contract"
Could words be any palmer? ''ln
he event of competition" the diplo-
matte representatives of the Ameri-
IAN, English, French and Japanese
will be assured to The
"for the purpose of OBJ
aiming such contract"
Is that equal opportunity? Or does
hat mean that favored group, back
ID by the four most powerful govern
nents in the world, will be able 10
stand before the Chinese government
Ind say: Our governments are be-
hind us, give the contract to our COM
)etitor at your peril"
IL a Dutch bank tries to finance a
Chinese loan the Chinese government
must face the threat of the displeasure
IF the American, English, French and
Japanese government IL 1t fails to give
he contract to the consortium. IL
an American bank. not affiliated with
he Morgan group undertakes to com.
pete IL is barred In advance by the
pledge.
Nor was this clause written into the
.,l,o
II was put there, not at the suggestion
Of j. p. Morgan d Co., nor of the other
English, French and Japa-
nese bankers. but by the direction of
the American State Department. For
the correspondence in the archives Of
the State Department reveals the foct
that it's text was dictated by the de-
partment after considerable CORE
spondence with France and Great
France suggested a modified
version, but Great Britain sided with
tho Ifpifed States and the American