Great Falls tribune., 1921-12-21
SHANTUNC TIED
UP P|NDEADL0CK
OVER RAILROAD
Japanese Insist Upon
Naming Traffic Mana
ger in Repurchase.
Settlement of Clash on
Province Taken in
War Rests With Toxic.

Washington, Dec. 30.-(By The AS
sociated Press) s).-Conversations be-
tween the Chinese and japanese dele
gates which have been in progress for
the last few weeks in an attempt to
settle the Shantung question were ad-
journed sine die late Wednesday with
out an agreement having been reached
concerning control of the Tsing-Tao-
TsinanFu railway.
The adjournment came after
session of three and one-half hours.
when the japanese said they would
have to ask Toxic for instructions on
the whole Shantung question.
The discussion got no further than
the japanese proposal that during
whatever period of payments should
be decided on for re-purchase of the
road by China. the traffic manager OF
the railroad should be a Japanese.
Settlement of the Shantung con-
troversy now rests with Toxic.
Threatens Entire Dickers
eve got. to the point where we
could not proceed any further" said
DR.. Koo, of the Chinese delegation,
after the meeting.
The principal stumbling block, which
was regarded at night as threatening
the entire Shantung negotiations, was
the japanese proposal that Japanese
experts be appointed by the Chinese in
the service of the railway.
I'VE have already gone beyond our
instructions and can go no further
without receiving instructions from
Toxic" said Mr.. Hanihara, the prin-
cipal japanese delegate attending the
conversations. 1--WE have made con-
caccinn Of aopoaCCior until u-a ran
make no more. The Chinese delegates
have receded on no point"
Mr.. Hanihara said the Japanese con-
sidered the question of appointment
of Japanese traffic manager of the
railway as essential to an agreement"
as a safeguard to efficient operation
of the road and to assure protection
to the Japanese financial interests in
Volved.
Details of the efforts of the Chi
nese delegates to meet the japanese
on every point were given to tn As
sociated Press" at night by one of
the three Chinese delegates.
Will Refer Decision to Toxic
Decision of the Japanese to discon-
tinue the discussions, according to the
nese in n formal statement read by
Mr.. Hanihara, which stated that the
Japancse delegation could not recon-
mend any settlement of the railway
question and that the whole matter
would be put up to Toxic for deci-
sion on that basis" Continuing. the
Chinese delegate gave the following
outline of the negotiations:
after agreeing to most of the ma
jor questions involved in the return of
the railway to China, including transfer
hiy, he ion
of the Chinese proposal for "a six
months period, solution of the matter
resolved itself into a question of
mode of payment
The Chinese offered cash on the day
the transfer was completed. This the
Japanese refused on the ground that
they wanted to retain a financial in
terest. Thereupon the Chinese Of
fered to pay in installments covering
three years, the first to be made in
cash and notes given for the balance.
HaggIe Over Payment Plans
Agreeing to the installment plan in
principle, Japanese wanted to know
what security they would have for
future payments, and We're offered
Chinese treasury notes. The japanese
said they must have these secured and
the Chinese countered with an offer
to pledge the revenues. of the railway.
Then the Japanese said three years
was too short term and wanted the
Chinese to borrow from japanese cap
italsts, the terms of the loan to be
agreed upon between the latter and the
Chinese government.
The Chinese delegates questioned the
japanese purpose in trying to force
China to incur further Indebtedness
to Japan when China was willing to
pay cash. The Japanese repeated they
wanted to retain a financial interest,
but abandoned the idea of loan. A
proposal was then made by the jap
anese to spread the payments secured
by treasury notes over 20 years, giving
the Chinese an option to retire at the
end Of 10 years the remaining install
ments.
The Chinese objected and finally
agreed to spread the payments over
10 years with an option to make final
settlement after three years. The Jap
anese, however, suggested five years
as the option period. The Chinese as
serting this would be only two years
longer than their proposal, suggested
that two years be added to the full
term of 10 years, making it u. This
was declined.
Japan then suggested that she should
have an Interest in the road on the
n Continued on Page Twol