The New York herald., 1921-12-27
BARON SH|BUSAWA
SEEKS Big U. S. LOAN
Wants to Float Between $780,
100000 and $150,O0O,0O0
for Manchurian Railways.
CHINESE CHARGE RUSE
Project to Link American Cap
ital With Japanese Enter
prises Is Alleged.
CHINESE CHARGE RUSE
Special Dispatch to THE NEw York HERALD.
New York Herald Bureau.

Special Dispatch to THE NEw YORK HERALD.
New York Herald Bureau.
Washington, ID. C., Dec. 26.
Among the closest observers of the
Washington conference Is Baron Shi-
busawa. the prominent Japanese f1nan-
cier whose power is so great in money
circles in his native land that he is
known as "the J. p Morgan of Japan"
While not attending the conference,
with which he has no official connec-
ticn. the Baron Is much in America.
He and some Japanese business men
have been visiting American cities for
several weeks. discussing Far Eastern
business matters with chambers Of
commerce and other organizations.
Apparently they are simply on gen
eral sightseeing trip. with the main OBJ
jective Of getting acquainted with Amer
lean business men and explaining to
them business conditions In japan. but
back of It all Is said to be scheme
highly approved Of by the Japanese For
eisn Office.
Projected Flnancing.
This scheme has to do with the financ-
ing by Americans Of japanese railway
development projects in southern Man
charia, scheme the success OF which
Is contingent on several important Ifs"
Tho Japanese financiers' plan depends
first on the extension by China for
ninety mine years Of the Japanese lease
on the South Manchurian Railroad. This
extension was granted along with the
famous twenty-one points. That the
Japanese are uneasy over the situation
may be imagined when it is understood
the present effective lease expires In
1928 1t must be renewed by that time
or cease. Japan declares 1t was renewed
when the twenty-one points were agreed
to. China asserts she agreed to the
twenty-one points under duress.
At any rate the twenty-one points.
the South Menchurian Railroad matter
among them, are destined to receive the
attention of The conference.
This Is the reason. II is suspected. that
while Japan will put UP quite public
struggle over Shantung. she Is using
Shantung as she used zap and the
Mutsu. as giving up points. Her real
fight will be made when she falls back
on that diplomatic main base. Man
churia.
II she could get America. Great
britain and France to agree TO her hold
ing ner cor cessions In Manchuria, Baron
Shibusawa would then come forward
with the fnancial-diplomatic move. HIS
tbject Is to interest American capitalists.
particularly those connected with the
manufacture OF steel. in the Manchurlan n
railway dev elopmcnt He wants to float
a loan OF between 800, 600. 900 and $780,
600, 600 why he cannot raise the money
In japan has not been -explaincd). and.
having Hoaied It, the rest would follow
naturally.
Deeper Motive Alleged.
The Chinese experts say that what
Baron ShiSusaw wa really wants to do is
20 get Americans 20 deeply interested In
.Iapanese developmt ats In Manchuria
,nat japan always Will have powerful
friends in America. BY spending half
Ills loan in the purchase OF American
railway equipment the Baron would in
sure the support OF the American steel
interests.
He has approached financiers in New
York. but they have told him frankly
that while the proposition looks good
rom a purely business standpoint. they
feel they can do nothing until they ind
.,,it what the policy of the American Gov
ernment will be toward Far Eastern
matters.
Hence the anxiety of Baron Shibu-
sawa. His whole scheme hangs on what
Hughes, Balfour and the rest do about
Manchuria and the outlook from Baron
shibusawa's point of view Is not what
might be called rosy.