The New York herald., 1921-12-15
SEA PLAN CHANGED
America Will Have Two
Superdreadnoughts as
the Equivalent in
Tonnage.
BRITAIN WILL BUILD
Rapid Clearing of Issues Be.
fore Arms Conference
to Follow.
SHANTUNG PARLEYS GO ON
SHANTUNG PARLEYS GO ON
Settlement Hinges OH Terms
for China to Get Control
of Railway.
BY LOUIS sEIBOLD.

Spceiot Despatci. to THE NEW YoRK lIrR RlLu.
New York Herald Bureau.
Washington, ID. G., Dec. II.
Baron Kato, head of the japanese
delegation, informed the correspon.
dents for Japanese newspapers to-
night that the United States had
agreed to the retention Of the Mutsu
by Japan, and that the only remain
ing questions to be settled are with
regard to just what ships the United
States and Great Britain shall retain
or build to match the Mutsu.
Following the third conference be-
tween Secretary Hughes, Mr.. Balfour
and Baron Kato over naval ratios an
earlier report, accepted by the Japa-
nese representatives as correct, was
that an agreement had been reached.
According to this report the United
States, Great Britain and Japan had
reached an understanding under
which Japan was to keep the Mutsu
the United States the Washington
and the Colorado and Great Britain
TO build the equivalent in tonnage In
capital ships.
Some of the British representatives
accepted the report as correct. Amer
ican officials would not comment on
it tonight, but said an announce
ment might be made tomorrow.
Clearing the Decks.
BY concentrating on capital ship
ratios and Shantung the delegates
set about clearing the decks for def
mite and conclusive action. Other
phases of the naval programme re.
lating to auxiliary craft including
submarines, and Far Eastern issues
affecting China were set aside. An
nouncement of this fact was supple.
mented with the statement that the
settlement of the capital ship ratios
and Shantung had reached a final
stage that might permit action by the
full conference in very short time.
This statement was construed to
indicate the satisfactory adjustment
OF points at issue and the compile
tion OF conference undertakings
within the next few days.
Secretary Hughes, Mr.. Balfour and
Admiral Baron Kato devoted more
than two hours to the discussion Of
the japanese naval programme and
Pacific Notifications this afternoon
If full agreements are reached within
the next twenty-four hours there viii
he a plenary session of the conference
at the end of the week and tn. great
international enterprise will enter on
the final stage.
The question of Pacific fortitications
fits In between existing naval problems
and the two treaties already accepted
and made public. The United States
and Japan appear to be In accord on
at least one point of the fortifications
issue. 1t is that Great Britain should
limit her Notifications and bases in
Asia and the Pacific. as 1t Is proYcsed
the United States and Japan shall do.
Mr.. Balfour is understood - take
the position that the British possess
eions should not be included in the
prospective arrangement The United
! States and Japan. II is believed, will
suggest that Great Britain also take a
holiday in Notifications at Hongkong
and Kow!oon in order that the Philip
pines and Formosq be protected
against remote, but possible. British
aggression.
y Shnntnng Problem
Running parallel with the effort 10
straighten out the tangle over the
naval programme is the controversy
over Shantung, which has been in
progress for more than a week be-
tween the Japan and Chinese dele
rates. It Is believed that a final set
tlement hinges solely on the terms for
restoring to China the control of the
kaiou- Chou railway system, in which
the Japanese Government asserts a
half interest. Most reliable inforrns-
ton obtainable regarding this feature
C the dispute Is that the rival dele
cations are getting closer together re-
garding terms and that decision will
be reached within the next forty-eight
hours 'or thc-c will be a grand bust
No.
.g'hc Japarere delegates verbally
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