The Birmingham age-herald., 1921-12-03
B|G THREE CONFER ON SETTLEMENT OF
 NAVAL PROBLEMS
Kiau- Chow Question Hinges Upon Railroad = Chinese Students Stage Demon
 stration
By Associated Press

by ASSOclAtCU NCoe
 Washington, December "A new stage in the negotiations over the question of naval ratio, described as ''very favorable" is understood to have been reached at the conference between the representatives of the United States, Great Britain and Japan.
 After the conference between Sec retary Hughes. Admiral Baron Kato and Arthur J. Balfour was concluded, the Japanese delegation immediate ly began communicating with Tokio.
 This official communique was is- sued:
 Arthur J. Balfour. Admiral Baron Kato and Secretary Hughes met at the state department this afternoon and had an extended interview with respect to the naval proposals. No comment on the interview can be made at this time"
 The conference lasted about two
 
 it's conclusion that there was some basis for optimism. One delegation spokesman referred to it as one of the most important discussions yet held which would mean much to the success of the conference as a whole. The result was most favorable" he added
 Informal "round table discussion which followed presentation of the positions of the respective countries relative to the disputed Kiau-Chow leased territory, centered immed.- ately upon the question of control of the railroads.
 Both delegations conceded at the outset that no settlement could be reached until this question was dis posed Of
 China's Position
 Dr. Wellington Roo, for China, re- asserted the position that the rail- noads be owned and administered by the Chinese government, as set forth in Chinas reply of October 5, to Japan's offer of September to re- store the Kiau-Chow lease hold con ditionally
 While the exchange of views was said to have been animated by the frfendhest spirit and purpose to rec oncile the respective demands, the first step directed toward a modifica- tion of positions on either side re- mains to be taken. China's stand for undivided authority over the railroad was said by a member of the Chinese delegation after the meeting to be still firm. No intimation was given by the Japanese as to whether they would be willing to recede from their demand for joint control.
 The Japanese advanced their prop osition that the railroad should be operated as a joint Chino Japanese enterprise. believing this to embody conciliation. since Germany, whose rights Japan contends she has in- herited, had controlled the line en- tirely.
 Direct Negotiations
 Dr. Koo. in order, he said, to get at rest any possible misconception of the Chinese delegations announced opposition toward direct negotia- tion' of the Shantung controversy. de- clared tonight that he considered the present conversations as mot nego- tiations at all, but informal confer ences around the table, collateral with the Washington conference."
 A report would be made to the con- ference proper of. the result of the present attempt at settlement of the Shantung controversy, he added.
 Chinese students staged mother demonstration today prior to the shantung meeting. in front of the Chinese headquarters. Their efforts were fruitless, however, as the dele gates were away. Later several au- tomobiles filled with students drove up to ths Pan-American building, whers the meeting was held, but the delegates had entered the conference before the students appeared.
 There were some indications being construed to mean that the Japanese viewroint on naval -~tio was being brought more into harmony with the America. It was understood that In the discussions of far eastern af- fairs today some concessions of opinion were made toward the Jana nese contentious regarding mainten- ance of foreign troops In China. By some this was interpreted as mean Ing that the Japanese were makinr concessions on the naval question. -------s-----------