Evening star., 1921-11-16
CHINESE CONTROL
OF FINANCE URGED
-. =: - - :. .--..:
Proposal P 'tt; as. Solution to
Peking Problems Being
Echoed Here.
HAS H0ARDED WEALTH
Correspondent Advocates Redefn-
ing Open Door as the
First Step.
HAS HoARDED WEALTH
BY PAUL SCOTT MOWRER.,

/ against the idea Of international
, intervention and control in. Chinese
/ finances continues to elnanate in
wordy war from the environment of
! the Washington conference. sug-
: gestion for IAN American plan" in
this fundamentally important prob
T.! lem is being brought forward by
William Hard. the writer and special
correspondent. and is being echoed
in variuns influential quarters. In
one phrase. the plan looks toward
| financial cooperation rather ethan
supervision.
| 1t is based on encouragement to
sand recognition of the Importance of
1.-THE banks which the Chinese them :
tcourtesy of the editors of Asia maya :
f2ine, in the December issue Of which
EMr. Hard outlines his. suggestion, i
Ehave been furnished with advance
I proofs. and am enabled to summarize
kthe main argument herewith. 1t
Eproblem is one of the mos. difficult
iwith which the conference is going
/ to have to deal
Must save Themselves.
| China's salvation. Nr. Hard thinks.
cannot be wrought OUT in the last
| analysis, by any one except the Chi
nese themselves. Recalling the eight
years OF utter confusion attendant
upon the efforts of the United States
| tween 1881 and 1888. China. he
argues, must be given more time
than it has had up to the present.
The consortium idea is well-inten-
toned, but in practice, this form of
international banking is slow and
hA nrt INN
hesitates. outside and unaffiliate ted
bankers act. -.-. -.
IF financial nationalism is, az it is,
aggressive and exclusive, and il hnan-
timid and tardy,, then the fair. equal
open door development Of China can
be secured under the supervision only
of the Chinese themselves. trained
into capacity for supervising and
for governing"
First Steps at Open DoOr.
'The first step is to get the open
door REDEEMED and generally accepted.
The definition proposed was prepared
especially for Mr.. Hard by Or. Paul
5. Reinsch. former United States am
hassador to Peking. THE govern
ments of-and-hereby reaffirnl their
intention already expressed to respect
in all their actions the independ-
snce and the territorial integrity Of
principle of equal opportunity through
out China to all nations in the matter
of commerce. industry and finance.
In view of the foregoing ..reaffiirma-
tien of a. frequently declared policy
and principle of action, each Of the
engages itself not to give diplomatic
support to any claim on the part of
any Of its nationals to any general,
special or local preference with re-
gard to commerce. industry or finance
in the Chinese republic or any part
thereof. Each of the high contract
ing parties therefore engages itself
not to make use of any existing or
future treaties. agreements, notes or
understandings as a basis for any
claim to economic preferences or
other exclusive privileges in any part
of China.
Deadlock In FOreseen.
But even this air-tight definition
having been accepted. deadlock, Mr..
between the internationalism of the
consortium and the nationalism of
China, and the private bankers will
edge in. with old complications. What
Blocks the activities of the con-
sortium is, on the one hand. the de-
sire of the foreign bankers for ad-
equate security, and hence FOR the
right to supervise the Chinese ad-
ministration. and. on the other.
China's aversion to such supervision
But China is rich in boarded wealth.
and although recent. there do now
exist in China powerful native banks.
Chinese banking group" has re-
Gently been formed. which already
has loaned s6o.00o.O0O to the Peking
government But in making these
loans the Chinese banks have shown.
that they are aa much concerned over
their security as the foreign banks
could be. and that in consequence they
also want to see an efficient and
honest administrat ton. and to exercise
the right supervision.
Advantage to Chinese.
".Sow observe the Chinese bankers
advantage at this point over the
foreign banker. The foreign banker
says to- the Chinese official: I will
put in some of my people to watch
you.' The Chinese official says. and
quite ..justifiably:' Your people are
foreigners and loyal to foreign gov
they may be acting for foreign
political purposes in our Chinese gov
ernmental Offices -. But when the
Chinese banker. says: I will examine
allotment and use Of those cars and
locomotives and / will help buy them.
the railways on. which they are to
run and out of the revenues of which
am in: time going to get my money
back there is no Question raised OF
foreign intrusion into Chinese public
life ..,.
Last June 80 sealed bids were made
by 176 foreign companies for, the sup
ply of 300 cars and Al locomotives to
Chinese railways. and, IN the presence
of six government omcials and fve
members of the Chinese banging
Belgium, and the payments will be
supervised by delegates Of the TWEEN
t.ty-two Chinese banks constituting the
group. This, Mr.: Hard points out. is
something altogether new in Chinese
Chinese american bank has already
been constituted ,nss Tndsr Chinese CHR law. aH
operation in the same way of other
foreign capital With Chinese CT .,s,b bankers tss
whole problem Of maintaining the
open door. and. at, the same time. af-
fording to China, under suitable guar
antees. the foreign financial aid with
! out which 1t cannot develop.
=: --> Copyright. 1s21.I