Evening star., 1921-11-05
CHINA DISSATISFIED
WITH JAPAN'S REPLY
Versailles Treaty Rejected as
Settlement Basis in
New Note.

SClltCIilCill OdSiS III
New Note.
by the Associated Press.
PEKIEG. November 4.-lu 1000
word note the Chinese government
has replied to the latest proposals
Of the japanese government concern
ing the Shantung situation. II states
that the Japanese proposals are not
acceptable.
The Japanese Memorandum to CHINA
OF October ~, the note declares,
shows an apparent misunderstanding
and mislnterpretatlOn OF the Text OF
the Chinese note of October D, thereby
necessitatlng d further statement by
the Chinese government covering
past facts and an unchanged view
point on the part OF CHINA.
The summary of the japanese gov
ernmeuts proposed basis of settle
nent,' the memorandum continues,
lis altogether too remote from III"
hopes and expectations of the Chinese
government and people. who. there
Iore, are obliged to await patiently
an opportunity suitable to Japan for
reconsideration Of her position
DIR. Yen's Reply Unofficial.
"Regarding the statement that Dr.
Zen NtNc SHlnese loFeiSH H1iAlSNct
last May formally expressed to Mr..
Obata ithe japanese minister 10
ChIna) a desire to see a concrete
project presented by the japanese
government couched i'll just and sat
i:factory terms. such as would be
simultaneously deemed fair by all ma
tftns, it must be observed that Mr.
Obata before leaving for Japan asked
DIR. Yen'S personal view regarding
Shantung. and that therefore. DR.:
ien's answer was purely personal
l and not a formal statement by the
Chinese foreign minister
Regarding the allegation in the
Japanese memorandum that the Chi
neSe government authorities had con-
tidentially presented to the japanese
government certain project for set
tiement of the question and unofh-
cially expressed readiness to open ne
gotiations with Japan. this probably
was due to misunderstanding aris-
ing from repetition of a personal
conversation between Gen. BanZai
Japanese military adviser to the Chi
reset governmenD and Co,6lcilor 1u.
and cannot logically be referred to
as ground for the presentation of the
Japanese proposals.
Make No Concessions.
The Chinese memorandum of Octo-
Der points out the difference in
garding the principles underlying the
Japanese proposals and the contents
and terms thereof. If the Japanese
government understood these differ
.nces she would very surely have pro-
posed a more substantial and more
just project, which would universally
be recognized as fair. 1t is most re-
grettable. however, that the Japanese
government has given no sign of con-
cessions, while maintaining that China
openly is unwilling to proceed with
negotiations.
China was unable to sign the Ver-
sailles treaty owing to the Shantung
articles, hence it is impossible to COM
pei her to recognize the effects aris-
ing from the treaty regarding Shan
tung. Japan considers that the kiao-
chau leaSehOld was transferred to
her, by the operation of the treaty,
while China deems the leasehold to
have expired through her declaration
of war against Germany. If both
countries insist on this difference in
viewpoint a solution of the problem
would be rendered forever impossible;
but since Japan is willing to restore
Kiaochau completely to China, fur
ther necessity for Japan's insistence
on the point in the dispute does not
exist.
Treaty Brings MisunderstaadinE.
Regarding the German declaration
concerning Shantung, China, when
the Chino German commercial agree
ment was negotiated, insisted on her
demand for the restoration Of kiao-
Chau, but Germany could only regret
to China that Germany's power for
returning kiao-Chau had been lost
through a force majeure, which ex-
pfhnation China simply acknowledged.
Hence it is a serious misunderstand-
ing for Japan to construe this Incl
dent as meaning China's recognition
of the Versailles treaty.
1T must be observed that the kiao-
Chau-TsDnan-Fh railway was not
public German property: or private
PROPERTY exclusively German
butt was built within Chinese terrific
ry and had corporate nature, with
Chinese capital invested. and that
China long had looked for the op-
perfume moment for its reclama tion.
Further, the right of policing was
exclusively China's, and absolutely no
| military necessity justified Japanese
peatedly protested the japanese
army's occupation of the railway as
unjustified, pointing out that Ger
man troops never were stationed
along the line, except within the
leased territory. When China entered
the war for the allies. the properties
Of all the Chinese railways should
have been returned to Chinese con-
ftrol, but the Japanese troops have re-
mained, refusing to withdraw and
causing endless losses to the Chinese
along the railway.
Germany Indebted to China.
THE Chinese memorandum of Oc-
tober proposes. regarding the claim
of right to control of the railway, to
divide the eAtire capital and prop
erty into two halves, stating that
China will redeem the japanese hall
within q fxed period. This arrange
ment being most fair and just, the
Japanese statement that China's pro-
posal is devoid Of meaning is regret
able. 1t is to be inferred that the
Japanese government is of the opin-
ion that the railways capital and
property have been awarded by the
reparations committee to Japan to
offset the German Indemnity, but
China not having signed the treaty
that commission has not the righ,
nor the authority to dispose of prop
erty within Chinese territory to sat.
| isfy Germany's indemnity obligations
Furthermore, since China's partici-
patton in the war Germany also is
Indebted to China, and il the railway
| Is to be used to satisfy indemnity OBJ