Evening star., 1921-12-21
SESSION
ENDS IN DEADLOCK
Next Move Must Come From
Japanese Government
at Toxic.

The Japanese government at Toxic
must now make the next move in
the settlement of the Shantung con-
troversy, for the negotiations held
In the so-called informal conversa-
tions between the Japanese and Chi :
nese delegates under the good Of
hces' of Secretary Hughes and Mr..
Balfour have come to standstill.
I'VE already have gone well beyond
our instructions" said Mr.. Hanihara,
the principal Japanese delegate at
tending the conversations, land we
cannot go further without orders
from the home government. We have
made concession after concession
until we can make no more. The
Chinese delegates have not receded
on single point"
Late yesterday, after a session
lasting more than three hours and a
half, which officials hoped would
prove successful. the deliberations
came to a sudden halt with apparent
ly no present hope for an agreement
on the major issues. involving the
payment for and administration Of
the TsingtaoTsinanfu railroad and
the meeting forthwith adjourned
"sine die"
Ask for AppOintees.
The Japanese demand that japanese
experts be appointed by the Chinese
to hold certain positions on the rail-
road was considered last night to be
the stumbling block that threa tened
to prevent any settlement of the
Shantung question. Mr.. Hanihara said
last night that the Japanese eonsid-
cred that the appointment Of Jap
was essential to the efficient opera
ton Of the road, SO that japanese
financial interests would be protected
This was declined by the Chinese.
who, however. offered to appoint a
Japanese associate for each of the
positions in question. This was re-
fused by the Japanese.
The meeting was marked by series
of proposals, counter proposals and
attempted compromises, but the two
powers could not seem to get to-
gether" on decisions After it was
road should be at the end of nine
months the mode Of payment" came
up. In principle the installment plan
method was agreed to, but Japan
asked for securities. Government
treasury notes and the revenue on the
road were offered, but the time OF
payment could not be agreed upon.
Japan asked that 100000 Chinese
dollars be deposited in neutral banks
before the transfer was begun. When
the Japanese made their final refusal
to accept periodic payments their
spok esman read their formal decision
to discontinue the conversations.
Statement Is Issued.
The following statement was issued
by the two delegations at the conclu-
sion of their meeting yesterday:
"At the seventeenth meeting of the
Chinese and Japanese delegates rela-
tive to the question of Shantung, held
! at the Pan-American Union building
at p.m. today, the two delegations
discussed the question of the plan OF
payment in cash to China's liabilities
regarding the Shantung railway
properties and also an alternative
plan of the payment in Chinese treas
ury notes. having special reference
to the question of the appointment by
China of Japanese experts in the
service of the\ Tsingtao-Tsinanfu
railway as proposed by the japanese
delegation. These questions involving
points on which it was necessary for
the japanese delegation to consult
with it's home government, the meet
ing adjourned at $50 pm. pending
the receipt of instructions by the
Japanese delegation from Toxic"