The New York herald., 1921-12-05
JAPANESE SUGGEST
WIDER CONSORTIUM
Method of Dealing With China
Would Be Made Basis i.
of New Pact.
IN PLACE OF ALLIANCE
Great Britain Would Be Re-
lieved of Difficulties. 1t
Is Argued.
IN PLACE OF ALLIANCE

WAsHINGroN. Dec. ASSOCIATED
Press). Extension of the Chinese con-
sortium, or it's development into q
more comprehensive agreement, was
suggested tonight by unofficial Japa-
nese as suitable and practicable
substitute for the Anglo-Japanese Ali
ance. Mutual abrogation OF that con-
vention by Japan and Great Britain
is viewed as one of the possibilities OF
the present conference.
AS put forward to-day, the sugges
ton was that the consortium be devel-
oped or merged into a general political
agreement among the four or five
great Powers. The idea was based, its
proponents explained, on the conten-
ton that any definite political agree
ment as to the Far East. including es-
pecially China, must in the period OF
world reconstruction give way to. or
be built upon. economic essentials.
In other words it is contended that
keen economic rivalries affect politi-
cal stability and are liable to create
friction and serious disputes neoessi-
tating conciliatory conferences from
time to time of the contending parties
This, it is pointed out, comedies with
President Harding's suggestion for
continued conferences and might form
the basis Of practical interunder-
standing
The Chinese -FOUR Power Censor
tium of October Is. 1920, specifically
posing 1t believe that the interests OF
these Chinese people can best be served
by cooperative action in procuring fol
the Chinese Government the capital
necessary for programme of economic
reconstruction and improved conmuni-
cations. il Is remarked that a particu-
lar political Importance attaches to the
greement because the Powers were
able 70 make fairly definite arrange
ments with Japan concerning the So
called special interests OF Japan In
South Manchuria and Eastern Inner
Mongolia. The arrangement was con-
w. Lamont. representing the American
group OF bankers who succeeded in OBJ
tanning the withdrawal of the Japs nese
objection to the inclusion OF Manchuria
and Mongolia into the scope OF the con-
sortium.
1t was understood at the time that
frank exchanges led to a full apprecia-
ton by the American, British and
French Governments of Japan's purpose
in merely having guaranty Of the Sc
curly OF her national defence ard her
economic existence. The japanese Cow
ernment issued an announcement that
the above Governments expressly de-
clared that they not only contemplated
no activities inimical to the vital inter-
ests Of Japan. but that they We're ready
10 give a general assurance which would
be deemed Sufficient to safeguard those
interests.
Declaration by japanese delegates at
Fridays conference that Japan had no
intention of relinquishing her holdings
in the Manchurian province of Kwang-
tung has been interpreted in some quar-
tcrs as official notice that japan in
tends to hold fast to all her legitimately
acquired interests in Manchuria and
Mongolia Vice-Foreign Minister Hani-
hari, who announced the Kwangtung
policy. added this sentence. which has
attracted attention in political circles as
perhaps indicating Japan's position on
any future political arrangement:
"The territory in question forms n
part OF Manchuria--a region where, by
reason OF It's propinquity TO Japans
territory more than anything else. she
has vital interests in that which relates
TO her economic life and national safety.
The Chinese consortium has not yet
been accepted by China and Il has not
yet operated
The British position as to the alliance
was to-day summed up by British corre-
spondents as emphasizing that England
has no wish to desert an ally who so
gallantiy supported her In war time. but
that In considering the question OF re-
newing the alliance she has to bear In
mind strong antipathities in the United
states as we'll as in certain British do
minions.
Therefore. II was said Il might DC
presumed that Great Britain was seek
ing some form of modified agreement or
treaty whereby the alliance itself might
be abrogated with a substitute in the
form OF an understanding perhaps as
suring Japan's national integrity by the
three Powers-or with France--the four
big Powers. This would take in the
Powers making up the financial con-
sortium.