New-York tribune., 1921-12-10
Hughes and Balfour Like
To Be Called Upon
to End Deadlock Be-
tween China and Japan
Danger to Peace
In Far East Cited
Railway Control To Be
Put Up to Conference
if Other Efforts Fail
By Thomas Steep


WASHINGTON, Dec. 9.--Controversy
over Japan's possession of Shantung
reached stage to-day where it ap-
cared that Secretary Hughes and Ar
hur j. Balfour may be asked to medi-
etc. In the event of the failure Of
.nediation, it was stated, the direct
egotiations between the Japanese and
jhlnese delegates will be broken off
ard the question placed before the ar
nament conference to be settled by all
the powers as "a discernible source of
controversy likely to disturb the peace
of the Far East
Confronted by notice from the Chi
nese delegates, fixing a three day limit
for consideration of China's demand
for the unconditional surrender of the
province, the Japanese delegates con-
sented to begin discussions tomorrow
on the Shantung railway. Each side
made it's position clear. Japan's is
that control of the railway, which en-
braces economic and political control
of the interior of the province, is her
chief reward, bought "in blood and
treasure" for entering the World
War; that since Japan took over the
railway from Germany in 1914 this part
of China has prospered, and that the
withdrawal of Japanese administration
would cause the railway to "faH to
function" with loss to both Japanese
and Chinese trade. Japan therefore
asks that 30 per cent of the railroads
administration remain in JAPANESE
hands.
Opposed to Japan's contention is
China's argument that so long as the
railways remains in Japanese hands the
whole province will be dependency of
Japan; that the Shantung railway on
the south and the Manchuran railway
on the north place the Peking govern
ment between the Jaws of a Japanese
nutcracker; that the 400O0,O00 Chi
nese citizens in Shantung are in revolt
ax&inst Japanese authority, and that
unless Japan withdraws from the prov
lnce a boycott blythe Chinese people
against Japanese trade will spread
throughout China.
Balfour and Hughes Ready
DR.. Wellington Koo, head of the Chi
nese delegation, recalled tonight that
Mr.. Balfour and Mr.. Hughes, in ar
ranging the direct negotiations, had
promised to be available at any time
their services were needed.
1t is understood that Mr.. Hughes and
Mr.. Balfour, if called, will first suggest
compromise with view of having
the controversy settled outside the ar
mament conference, and that in the
event OF failure along this line they
will ask the conference committee on
Pacific and Far Eastern questions to
act. DR.. Koo takes the view that
China's acceptance of direct negotia-
tions does not preclude her from bring
ing the issue before the conference
under one of the ten Chinese demands.
Two "observers" each from the
American and British delegations have
been present since the negotiations
were begun, more than ten days ago.
Since then the Japanese have yielded
on every point except the railway
Public buildings, utilities, the lease
hold on the district of Kaochau and
the port of Tsingtao have been given
amount of the Japanese capital in
vested The question whether enter
prises built by German capital before
1914 are to revert to China without
compensation to Japan has been re-
ferred to Toxic.
Japan has given US everything ex-
cept her temples, cemeteries and the
railway" said DR.. Koo tonight. But
he indicated that if the railway re-
mains in Japanese hands the conces-
sions will besof minor Importance.
Pressure brought by the public in
China is believed to have Influenced
the Chinese delegates in their view that
no permanent settlement of the long
standing Shantung controversy can be
lContinued nm naxt naaal