Evening star., 1921-03-30
EFFORT TO FINANCE
China IS APPROVED
ADMINISTRATION
New Regime Decides to Fol-
low Course Adopted by
President Wilson.
RECORD OF NEGOTIATIONS
SHOWS REVERSED STAND
Japanese, Last to Give Consent to
Consortium, Influenced in Yield
ing by Great Britain.
BY DAVID LAWRENCE.

ing by Great Britain.
BY DAVID LAWRENCE.
Another policy of the Wilson ad-
mlnistration has been swallowed in
entirety by the Harding administra-
ton. namely. support of the banking
groups of France, Great Britain. the
United States and Japan in their ef-
forts to finance China.
Secretary Charles Evans Hughes has
given to the public for the first time
!! the complete record of the negotia-
tions between the four powers. 1t
shows with other things that the
Wilson administration reversed itself
in it's last two years almost COM
pletely from the attitude assumed in
the days when William Jennings
Bryan was Secretary of State and
when most everything connected with
American banking interests was re-
garded as suspicious.
1t will be recalled that the original
arrangement between the bankers OF
Great Britain, Germany, the United
States, Russia and Japan fell throogh
largely because the Washington gov
ernment withdrew the support that
had been extended American bankers
during the Taft-knox administration.
the argument being that the financial
plans interfered seriously with the
political and admin strative inde-
pendence of China"
Change Brought About by War.
The war. however. changed things
completely. Germany was no longer
partner. Japan had obtained.
through her twenty-one' demands
upon China, certain options requir-
n o. tn hor hof L
ing any loans, and. furthermore. the
United States became the only power
able to extend financial aid any
where. The record of the negotia-
memoranda and diplomatic papers
which constitute a chapter in Amer
ican diplomacy which probably will
have far-reaching effect on our
policy in the far east and will have
an important bearing on the future of
China itself.
Although the agreement scrupu-
lously avoids political entanglements.
1t is fact that most of the political
friction in the far east in the past
has arisen out of the competitive in
terests Of the big powers in financial
matters. The so-called consortium
agreement. whereby the four powers
have agreed to pool their interests,
eliminates the opportunity for special
privileges and options and makes
along lines that do not menace her
territorial integrity or independence.
Eventually Russia will be taken into
the partnership, and the application
Of Belgium for entry into the group
has been approved.
Credit Goes to Lamont.
1t is fascinating story-this ac-
complishment of an agreement among
all the great powers for the financing
of China And to Thomas w. Lamont
Of J. p. Morgan & Co. goes the
credit for the achievement. His
finesse and diplomacy in handling
the question for the American bank
State. and his tact and skill at Toxic
in convincing the Japanese of the
vital necessity of their joining in the
scheme, are admitted on all sides to
have been largely instrumental in
the successful outcome of what prom
iSed to be the usual diplomatic wran-
gle and futile negotiation.
OF course Mr. Lamont would have
been unable to get very far without
the active support Of the United
States government. Mr.. Lamont won
the confidence of President Wilson at
Paris. and thereafter Secretary Lans
ing and Undersecretaries Polk and
Davis gave Mr.. Lamont the support
in critical moments that he needed
in handling the questions at issue
with the Japanese government.
Davis Handled Final Stages.
Norman Fl. Davis. who. as. under
secretary. handled the final stages of
the negotiations at the Department Of
state wrote most of the communi-
cations from our government to the
other powers. and while this is the
first time they have been made pub
lie. it was known right along that
the firm hand of Mr.. Davis was beb ind
in,
the days when President Wilson was
i'll and Secretary Colby was engrossed
in other matters.
The Japanese were the last to give
their consent. They wanted at first to
exclude eastern Mongolia and Man.
churia on the ground OF special in
terest," and they insisted for time
upon reservations which would give
the Japanese freedom of action in GER
tain parts of China. but the American
Mr.. Morris. and Mr.. Lamont at Toxic,
succeeded in convincing the Japanese
, that to make exceptions and give op-
tions was contrary to the whole idea
of the consortium and the Japanese
finally assented.
British support No Small Aid.
The cordial support given the United
States government by the British for
eign Office in the entire negotiation
was no small factor in the achieve
ment of complete agreement.
Great Britain, through her alliance
with Japan. was able to use her good
offices to excellent advantage, and the
American banking group. through
their intimate relations with the'Brit-
ish developed in the two years before
the United States entered the war,
| were able to develop harmonious
course of action as between the
French, British and American govern
mapts which made it apparent to the
Japanese that 1t was a better course
to join with the other powers than to
attempt to play lone hand. The
Significance of the documents just
made public by the Department of
State simultaneously with the foreign
offices OF Japan, Great Britain and
France, will not become apparent at
once, but it is not mere surmise to
state that the negotiations will have
a stabilizing effect on far eastern pol
itics and perhaps remove one of the
sources of friction on which the jim
goes have built their theories of the
next war in the Pacific"
Copyright. l921.)