The New York herald., 1921-12-04

consortium that these vital interests OF
Japan in the region in question shall be
safeguarded. :. ~
I'm the leased territory of Kwantung
Province there reside no less than 5000
Japanese, and the commercial and in
dustrial interests they have established
there are of such Importance and mag
ritude to Japan that they are regarded
as an essential part of her economic
life.
"It is believed that this attitude of
the Japanese delegation toward the
leased territory of Kwantung is not
against the principle OF the resolution
adopted on September 2l."
Mr.. Balfour's Explanation.
!. Mr. Balfour pointed out that Great
Britain had two different kinds of
leases, and these, as he thought the
Chinese delegation itself would admit,
must be held to stand on different
footing one from the other.
Mr.. Balfour referred first to the
leased territory of Kowloon extension.
Why, he asked, was it considered neces-
sary that the leased territory of Kow-
loon should come under the same ad-
ministration as Hongkong? The rea-
son was that without the leased terri
tory Hongkong was perfectly inde-
fensible and woulf be at the mercy OF
any enemy possessing modern artillery.
He hoped that he would carry the con-
ference with min when he asserted that
the safeguarding of the position of Hong
kong was not merely a British interest
bat one In which the whole world was
concerned. ~
Mr.. Balfour then read the following
extract from "the United States Gov
ernment Commercial Handbook of
China:
The position of, the British colony
or Hongkong in the worlds trade is
unique and without parallel. 1t is a
free port except for duty on wine
and spirits; 1t has relatively few i'm
portant industries; it is one of the
greatest shipping centres in the
world. 1t is the distributing point for
all the enormous trade of South China
and about 30 per cent. Of the entire for
eign commerce Of China. The condi-
tions of Hongkong in it's relations
to commerce are in every way excel
lent. and the Government centres all
its efforts on fostering trade. while
the future Is being anticipated by in
creased dock facilities, the dredging Of
the fairways and other improvements
Hongkong is the financial centre Of
the east"
Mr. Balfour said he could not add
anything to this perfectly impartial
testimony TO the conditions of absolute
equality of nations under which the
affairs of Hongkong are admins
tered, and the motives on which they
are conducted. The lease OF the Kow-
loon extension had been obtained for
no other reason except to give security
to the port of Hongkong. and it
would be a great misfortune II any
thing should occur which was calcu-
lated to shake the confidence of the
nations using this great open port in
its security. He hoped he need say no
more to explain that Kowloon ex-
tension was in a different category
and must be dealt with in a different
spirit from those leased territories
which had been acquired for totally
different motives.
Z Question of Wei-Hai-Wei.
Mr. Balfour then passed to the aues-
ton. of Wei-Hai-Wei. The acquisition
by Great Britain of this lease had been
part OF the general movement for OBJ
tanning leased territories in 1898, In
which Russia, Germany and France. as
we'll as Great Britain. had been con-
cerned. The motive which had anima ted
the Germans In acquiring Kiaochow
had been largely 10 secure economic
domination The motive Of the British
Government on the other hand. in ac-
quiring the lease Of Wei-Hai-Wei had
been connected with resistance to the
economic domination OF China by other
Powers--in fact, II had been based on
a desire for the maintenance of the
balance OF power in the Far East, with
a. view 70 the maintenance Of the policy
or the open door. and had been intended
as q check TO the predatory action of
Germany and Russia.
Mr.. Balfour laid emphasis on the fact
that the convention of July 1. 1898. con-
firming the lease, gave no economic
rights or advantages TO Great Britain.
There had been no question Of it's being
a privileged port of entry for British
commerce. or for the establishment of
British commercial rights to the exclu-
sion or dlminution OF the rights Of any
other Power. In fact on April 90. 1898,
Great Britain had announced that Eng
land viii not construct any railroad
communication from Wei-Hai-wei and
tho district leased Herewith into the In
terror OF the province of Shantungs'
AS regards the attitude of the British
Government 10 tne request or the chinese
delegation for an abrogation OF these
leases Mr.. Balfour stated that he had
very little TO add to- and he did not wish
TO qualify. the conditions contained in the
statement just made by NJ. viviani
which represented very much the spiri,
in which the British Government ap-
preached the question. The British Gov
ernment would be perfectly ready to re-
turn Wei-Hai-Wei to China as part of a
general arrangement intended to con-
firm the sovereignty OF China and Ia
give effect to the principle OF the "open
door" A
This surrender, however. could only be
undertaken as part OF some such general
arrangement. and he spoke with his Cow
ernment behind him when he said that
on these conditions he was prepared %
give up the rights which we had &C.
quired. The British Governments policy
was 70 make use OF the surrender OF
Wei-Hai-Wei to assist I'm securing set
tlement OF the question OF Shantung. II
agreement could be reached on this qies-
ton the British Government would. no,
hesitate TO do its best to promote a
general settlement by restoring Wei
Hai-Wei to the Central Government oi