The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-07-21
JAPAN Will DISCUSS
FAR EAST OUTSIDE
SHANTUNC and zap
Enjoys to Washington May
Hold These Two Are Ac-
cOmplished Facts.
VIEW OF AMBASSADOR
Such an Attitude Would
Bring Versailles Treaty
Into Conference.
DEBT DEFERMENT ISSUE
U. s. Would Oppose Waving
Interest to Be Spent on
New Armaments.
DEBT DETERRENT ISSUE
Special Despatch to THE NEW YORK HERALD.
New York Herald Bureau,
Washington, ID. c., July 20.

New York Herald Bureau,
Washington, ID. c., July 20.
Japan is ready to enter the inter-
national conference which President
Harding has called and will agree to
discuss both the limitation of arma-
ments and Far Eastern questions, but
she may insist upon reservations re-
sarding Shantung and the island of
zap, according to a report circulated
to-day in usually well informed circles.
Her reply is said to be on the way.
This is not official, however, as the
State Department would not admit
having any Information regarding the
nature of Japan's reply
State Department officials evinced
great interest in press reports from
London quoting Baron Hayashi, Jap
anese Ambassador to Great Britain, as
saying Japan regarded her possession
Of the Chinese province Of Shantung
and the former German island of zap
as accomplished facts. This is under
stood to have been the attitude as
sumed by Ambassador Shidehara in
Washington, and both Ambassadors,
presumably, have been setting forth
the attitude of their Government in
the present situation.
The informal interchange of views
which has been going on between Secrc-
tary of State Hughes and Ambassador
Shidehara Is understood to have resulted
satisfactorily because OF the clear and
implicit assurances given by Secretary
Hughes that the sovereign power Of
Japan will not be impaired by entrance
into the conference.
Conference Not binding.
IT Is the view Of the United States
that it would be better to enter the
conference without any prearranged pro-
gramme which would limit its scope and
initiate against it's success. President
Harding also holds that no government
will be held by what takes place In
Washington. Any agreements reached
here will have to be set forth specific
ally In separate treaties. Public opinion
In the respective nations Is relied on to
dictate these agreements.
A possible explanation Of Japan's de-
lay in formulating her reply to the in
formal invitation developed to-day when
1t became known that United States
Counsellor Bell at Toxic had received n,
certain memorandum from the Japanese
Government concerning the scope OF the
conference which he transmitted to Sec
rotary Hughes. Ambassador Shidehara
began his conversations with Secretary
Hughes about the same time, and 1t Is
said the State Department understood
the representations made to the Japan
ese Ambassador were to be considered
as the reply of the United States to the
memorandum coming directly from
Toxic Apparently the Japanese Gov
eminent Fad been expecting a direct
reply which was delayed by the misun-
Outstanding.
The reservations which Japan may
make as to what she regards as ac-
eomplished facts In the Far East would
bring the Versailles treaty into the sit
uation. Any verdict that Japan occu-
Hation of Shantung and OF zap are ac-
Xomplished facts must draw its author
fty from that treaty. The United States
cannot accept that Interpretation in the
face of Mr.. Hughess declarations that
Germany relinquished her rights to the
principal allied and Associated Pow
ers and that the United States has never
surrendered any rights she may have
under this REIMBURSEMENT.
Stressing the importance which the
Administration places upon the bill to
give TO Secretary of the Treasury Mel
lon unprecedented powers In dealing
with the foreign debt. unofficial intima-
tons were conveyed to the Senate to-day
urging its speedy passage. From the
viewpoint OF the Administration the
measure Is OF incalculable Importance in
dealing with the foreign problemN en-
orally. but especially In strengthening
this Government In connection with the
approaching international conference on
disarmament
Allied Debt Big Factor.
There Is no attempt made to disguise
the important part which the allied debt
will play in the coming conference. Set
Element of this debt is one of the neces-
sary preliminaries of economic recon
struction. Control OF decisions regard
ing Il by the President will place him
in stronger position to discuss disarma-
ment than he would be without II.
IL already has been made clear by
the Administration that II would not
encourage dcferment OF the payment of
interest on the debt OF countries which
would use the money they owe the
United States to build UP ornaments In
competition WIN tnOSc VI luc tnlNcu
States. or to balance budgets in lieu OF
funds raised from taxation.
whatever decisions are made relative
TO the treatment OF the foreign debt "
is clear the question OF this foreign
obligation will continue to color ncgo-
tiations relative to the treaty with Ger
many and the arrangement with the
Allies over Americas claims growing
out OF the war. II Is intimately related
to competitive ornaments, and accord
ingly cannot help but be one or the out
standing elements IN the international
conference.
Senators generally appear 10 rccog-
nize tn, cogcncy OF the Administration
reasoning. but its consideration Is fur
nishing an opportunity for the irrecon-
ella bles to demand additional Informal
ton concerning the manner in which
peace with Germany shall be finally ar
ranged. Their argument Is that Con-
Caoffgecd os1 Q<roud D1nc