The New York herald., 1921-12-22
JAPAN TO GIVE WAY
IN SHANTUNG CASE
Hanihara, Speaking for Dele
CATION, Expresses Optimism
Over Outcome.
TOXIC TO CUT THE KNOT
Fresh Instructions Awaited
for Settlement Of Vital
Problem.
Special Dispatch to THE NEW York HEnALp
New York Herald Bureau,

Special Dispatch to THE NEW YonK HEnALp.
New York Herald Bureau.
Washington. ID. C., Dec. 81.
Japan Is preparing to recede from the
extreme position taken by her delegates
on the Shantung problem. which has
temporarily disrupted the conversations
between the Japanese and Chinese dele
cations.
This was intimated plainly to-day by
delegation. who expressed optimism over
the final outcome and declared failure
to settle this problem would leave con-
ditions in the Far East in a dangerously
unsettled coalition.
Reference of the entire question 10
Toxic for fresh Instructions makes i;
possible for the japanese Government to
yield and have it's action recognized gen.
orally as Concession
The Japanese delegates insist that in
making their last offers to the Chinese
delegates they had exceeded their orisi-
nal instructions and that they could not
go further without receiving new in
structions from Nome. The entire Shan
tung situation suggests the final ap-
proach which the conference Will nave
to make in the direction of the settle
ment of the Far Eastern problem. when
has not been seriously undertaken up
to the present time. While the confer
ence has devoted itself to reduction OF
the means OF war and has adopted gen
eral principles as to China, the causes
for war which lie in the Far Eastern
situation have hardly been touched.
The Shantung problem is only one oil
these questions, the ManchurIan anu
siberian situations, admittedly, furnlsh-
ing a more serious problem and sug-
gesting the location of the Japanese
"Hindenburg line" beyond which they
do not intend to recede. The Chinese
delegates fully realize this and are pre-
paring their line of attack accordingly.
They have not the slightest intention OF
receding from their demand that Japan's
twenty demands" shall be considered
by the conference. The Japanese are
prepared to submit an argument SHOW
ing why the demands" should not be
made the subject OF international consid-
Grafton.
The Manchurian situation Is involved
in the question of the demands be-
cause the extension of the Japanese
leaseholds in the Liaotung Peninsula
are based upon the Sino-Japanese agree
ments growing out OF the demands
Up to this time the American dele
CATION has withheld any declaration of
opinion as to the positions taken either
By the Chinese or japanese regarding
Shantung and the Japanese position in
Manchuria and Siberia.
Spokesman for the American delega-
tion when asked to-day whether the
four Power treaty involved American
recognition of the Japanese position in
northern Saghalien said that 1t bound
the Powers to respect each others
rights. If Japan had any rights IN
Saghalien, then this country agreed TO
respect them. otherwise not. This cryp-
tic response calls attention to the fact
that Japan is not only planning to main
tain its hold in northern Saghalien but
upon the mainland adjacent TO Sagha-
lien as necessary to its military defense,
much as the British are holding on TO
Kowloon as necessary TO the defense of
Hongkong.