New-York tribune., 1921-12-13
China Is Asked What In
demnity 1t Will Pay if
Demand for Joint Rail
Rule Is Relinquished
POstOMces Out
January j, 1923
Nation Is Rejoicing Over
Victory; Solidification
of Government Forecast
BY Thomas Steep

WASHINGTON, " Dec. 12.-Japan in
dlcated to-day that she is ready to sur
render Shantung to China without re-
striction, thus ending the controversy
which has embittered the Chinese pco~
pic since the award of the province to
Japan under the Versailles Treaty. The
settlement favorable to China, now said
to be assured will crown with success
the plan arranged by Secretary Hughes
and Arthur J. Balfour for direct nego-
tations between the Japanese and Chi
ncse delegates
Japan's willingness to waive her
stand for joint Japanese-C Chinese con-
troll Of the Tsingtao-T Railway,
running through the heart of the prov
incc, developed in to-day's direct nego-
tiations when Masanao Hanihara, the
Japanese Vice-M Minister for Foreign At
fairs, raised the question Of how much
China was prepared to pay in money
for Japanese investments in the rail-
road and its subsidiary enterprises
Only one construction was placed by the
Chinese delegates on this change in at
tltude. 1t was that on being reimbursed
for her investments, Japan was ready
to withdraw and leave the whole prov
incc, with its railroads, it's former Ger
man territory of Kiao-chau and its mort
of Tsingtao entirely to the Chinese
people.
China Ready to Pay
China's readiness to accept the terms
for refunding of Japanese Investments
and for Fastening the withdrawal of
the Mikado's government from that
part of Chinese soil, was expressed bv
DR.. Alfred SEE, of the Chinese delega-
tlon: He presented as n basis for a
settlement the amount which had been
agreed upon as the value of the prop
critics when Japan took them from Ger
many in 1914. After the end of the
World War Germany put in claim for
her investment in Shantung. Japan's
reply was that the German interests
were forfeit as prize of war; but Ger
many protested that her Shantung
enterprises represented private capital.
Accordingly the issue was referred to
the reparatlons commissions appointed
by the Paris peace conference. The
was permitted to credit $4,000, 900 gold
marks against Japans reparations
claims. This amount represented 3d.
406,141 gold marks for the Tsingtao-
Tsinan Railway, 5,35O,O0O marks for
coal mines and 243,859 for iron ore
Since then Japanese capital has been
heavily invested in Shantung.
Whatever sum is fixed upon as ar
adequate compensation, DR.. SEE said.
nt11 k, g.,
Chinese consortium, group of Chinese
bankers, was ready to take over the
properties.
China Approaches Ambition
With Shantung restored to China,
after its long separation begun in 1918,
when Germany seized the territory as
naval base to checkmate Russian ag-
gression in Manchuria, the Chinese de-
mands for restoration of China's
sovereignty will be in large measure
approached. The situation in relation
to the armament conference also will
be clarified. For more than two weeks,
while the direct negotiations have been
in progress, the people of Shanghai i,
Peking, Canton and elsewhere have
been demonstrating against events in
and his colleagues, DR.. Wellington Koo
and DR.. Wang Chung Hui, have been
on the brink of quitting the negotia-
tions and asking the conference to
settle the issue. Mr.. Hughes and Mr..
Balfour were called in as mediators.
But Japan's indicated willingness to
give up her demand for so per cent
administration of the railway, which
the Chinese say would leave economic
and political control of the province
in Japanese hands, now makes it prob
able that a settlement is in sight and
that the result will be reported at the
conference record.
Among the Chinese people Jap
anese withdrawal will arouse wide
! spread rejoicing, because Shantung,
CONTINUED on next pags)