Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-12-21

DISCUSSIONS
IN DEADLOCK
Shantung Question Reaches
Stalemate Stage in 2
Power Farley.
GOOD OFFICES NEEDED
Special to Indiana Daily Times
q nd PhiIa lelnhta DuhIin I.adgnI.

| Special to Indiana Daily Times
and Philadelphia Public Ledger.
! WASHINGTON, Dec. 21.-Direct ne
cotiations for the settlement of the Shan
| tung question which have been going on
between the Japanese and Chinese dele
| cations for more than three weeks have
been suspended indefinitely to await in
| structions from Toxic decisions by the
japanese representatives,.
As phrased by DR.. SEE of the Chinese
delegation the two-pOwer conversations
were adjourned "sine die" giving the i'm
preston iii well-informed, If unofficial,
! sources that, while the negotiations have
not been absolutely disrupted. they have
reached n stalemate, which, on another
prefer Of good offices" on the part Of
| Secretary Hughes and Mr.. Balfour, can
dissolve
| The seeming deadlock is on Japan's last
and final proposal which contemplates
turning over to China within period
of six or eight months after adjustment OF
the entire Shantung settlement the Kaio-
chow Tainanfy Railway. China is to pay
SO. 100000 gold marks for the property,
the price fixed by the reparations com
mission, plus improvements made on the
road by the japanese since they took over
the line from the Germans. Japans
proposition is that the loan for the pur-
chase of the railroad be made by Japanese
capitalists redeemable in ten years or
twenty years at China's option. Appoint
ment of a Japanese chief engineer, and
traffic and accounting manager is con.
templated to safeguard the interests OF
the Japanese investors.
CHINA WISHES
FREE ROAD OF JAPS.
China wishes to buy the railroad out
right with funds her delegates say can re
obtained from Chinese bankers, and oper-
ate the railroad without semblance OF
Japanese supervision. The Chinese had
three year plan which was discussed
and which her delegates intimate lt
might st,ll be under consideration.
Both sides assumed an air Of mystery
Mt the break IN Of their seventeenth ses-
sion. and beyond intimation that the sus-
pension Of conversations might be only
/ temporary neither delegation appeared
! optimistic
The official communique, announcing
the adjournment, contained only one
phrase Indicative OF the probability of
any approaching agreement
! The statement saying that the confer
ence discussed the question Of the plan
| Of payment in cash Of "China's liabn-
/ tiles" regarding the Shantung railroad,
! gave the first official Acknowledgement Of
China's obligation to pay for the railroad
| il Japan IS to relnquish il.
| CONVERSATIONS
! NEARS AN END.
! The Chinese spokesmen asked II the
negotiations would be resumed and If an
agreement or deadlock were in sight
/ said It rested solely with the japanese
/ delegates. The conversations, they as
| serted had reached a point where they
could not proceed much farther
The japanese said, that although there
| still remained important points of diff
! ference between the two delegations. the
conversation had reached "a point where
Japan stood willing 10 publish every
/ thing, but FOR the conference understand
Ing not to do so japanese spokesman ex-
planned they already had gone farther
than their present instructions from
Toxic warranted.
1t was the question whether. in the
event no meeting Of the conferees Is held
for several days and both sides main
tain their present position. Mr. Hughes
! and Mr.. Balfour would offer to mediate
the question. In that case, it is be
lieved. Japan would withdraw the con-
cessions she has made thus far and tho
! medlators would have 10 start from the
japanese treaty rights. legality Of which
have not been seriously questioned. ex-
cept by the Chinese Copyright. 1921, by
! Public Ledger Company.