New-York tribune., 1921-12-19
China to Offer
ON
ShantungTodav
Japanese Proposal of 20
Year Joint Control Of
Railroad TO BE Flatly
Rejected as Impossible
Home Pop,llacc Aroused
Indignation Meetings i'll All
Provinces; Revival Of Boy
cou System Threatened
BY Thomas Steep

BY Thomas Steep
WASHINGTON, Dec 1S.--Dr. Wang
Chung-hui, OF tho Chinese delegation
to the armament conference, announced
to-day that Japan's proposal to cvacu-
ate Shantung would be rejected unless
the Japanese delegates accepted a
three-year limit for the transfer OF tho
Tsingtao- -Tsinan Railway. He said the
Peking government had sent orders to
break off direct negotiations if Japan
insisted on retaining part control in
the railway for twenty years.
When the negotiations arc resumed
tomorrow, DR.. Wang added, China's
maximum offer will be presented as an
ultimatum, ard the Japanese delegates
will be invited to decide whether the
whole Shantung controversy is to re-
vert to tho armament conference.
Having offered cash in payment for all
Japanese interests in the property, so
that Shantung might be restored to
China us unincumbered as it was be-
fore Germany took it in 1898, the Chi
nesc delegates, DR.. Wang explained.
consented to spread the payment over
three years only after Japan insisted
that she could not withdraw entirely
from the province at once. Masanao
Hanihara. the Yice-Minister for For
cign Affairs, argued that Jaran's trade
expansion necessitated her retaining
part official control in the railway for
at least twenty years. Mr.. Hanihara
and his colleagues refused to accept
either cash payment or six semi-an-
nual ins.allments.
Japanese Boycott Revived
Meanwhile other events transpired
to-day which arc likely to precipitate a
crisis ia China's position. Chinese
bankers, merchants and university pro-
fessors, represented here by eight dele
gates, who hANe no voice in confer
ence proceedings, but who neverthe-
less exert powerful political influence
with the Peking government, have be-
come alarmed over the Shantung situa-
ton. The Young China group, which IS
regarded as The chief support Of the
Chinese Republis, has sent cablegrams
TO Shanghai urging that widespread
boycott against Japanese trade be re-
neved throughout China. Shanghai ia
the center from which anr-Japanese
agitation is carried on. Mon Lin
chang, chancellor of Peking Univer-
sity, csbled protest against any fur
Their concessions by China in the Shan
tung controversy. He said antiJap-
anesc demonstrations were being held
in north and south China as q result
Of the Chinese delegates consent to ne
gotiate directly with Japan in the face
of popular demand that the armament
conference act upon the Shantung con-
tioversy.
President Hsu and his new Cabinet
sitting in Peking, have been advised b.
Lenox Simpson, political expert en-
ployed by the Chinese Republic, that
Japan's purpose in prolonging the
Shantung negotiations is to prevent
consideration by the conference Of
China's demand for an abrogation Of
the twenty-one demands and for g. re-
vision Of the Chinese tariff, now lin,
tied to per cent. Mr.. Simpson said
to-day that the next few days would
decide whether China would be able to
make substantial progress in Washing
ton or whether she would get nothing,
IS she did at Paris"
Hughes and Halfour May Help
Secretary Hughes and Arthur J. Bal
four, it became known to-day, are pre-
pared to lend their good Offices IL it
appears that the Shentung negotiations
are about to terminate without settle
ment. They are keeping in close touch
with the proceedings through two Brit
ish and two American "obselvers"
These observers are Sir John Jordan
and Miles Lampson, on behalf OF Great
Britain, and j. Y. A. MacMurray and
Edward Bell, on behalf of the United
States. Every assistance will be given
by them to effect d settlement.
AS last resort Mr.. Hughes and Mr.
Japanese and Chinese delegates per-
sonally nd try to overcome the differ
ences. = hus far sixteen sessions have
been he It. Twice the Chinese delegates
were OF. the brink of quitting, and AS
many tim they we're just as confident
of success. Progress seemed rapid
when the Japanese delegates agreed to
give up their leasehold on Kiaochau,
return Tsingtao to the Chinese mari
time customs, rclinquish public utili-
ties and withdraw their troops. The
Japanese declared the only detail re-
naming was how much China should
pay for the railway, and the Chinese
were jubilant because they said the
r1oney already was available, whatever
sum Was decided upon.
The calling OF the next session of the
conference committee on Pacific and
Far Eastern questions is contingent on
the outcome Of the Shantung contro-'
versy
Thc resignation Of the Chinese Cab
met, reported to-day from Peking, will
not affect the status of the Chinese
dn1ecation ot the ronfcrence