The New York herald., 1921-09-27

and provides for the construction Of |
larger and more powerful vessels
than are 10 be built ny either the |
United States or Great Britain.
the rebel Governor of Human, at per
cent. and at "a. secured by iron mines
at Tai Tingshan and the antimony
mines at Shuikoushan: two loans ag-
gregating 100000 yen. made to Fu-
kien and Chill provinces, secured by
provincial railroad bonds: 10000 900
yen at 95, with interest at per cent.
and bonus Of per cent. made to
the central Government, security not
specified; 25.o0000 yen by the Bank
of Japan to the Bank OF Communica-
tions at IN per cent, secured by treas
ury bonds.
In February, 1918, a Japanese syn
Gicate loaned to the Shipping Kai-
Chengtaitung Railway 100000 yen at
| per cent, secured by revenues OF
the road. In April of the same year
a Japanese syndicate loaned to the
Chinese telegraph administration 20,-
100000 yen at 9 per cent, secured by
properties not already placed. In June
of the same year Japanese syndicate
loaned the Kirin- -Huaining Railway
&c. 200. 900 yen, secured by the roads
property.
May Seek Mortgage on Shantung.
| II China is not able to repay these
loans Japan will probably insist upon
having some sort Of a mortgage on
| Shantung, for the administration Of
which during the last few years she
is expected to send>in a fancy bill or
make the terms as oppressive as pos
sible. However, China will probably
get back Shantung. but when she does
it is extremely likely that Shantung
win be more Japanese than Chinese as
far as trade conditions are concerned
The elements in China that have little
confidence in either the Pekin or Can
ton Governments. which they view as
mere ''rump" enterprises, are looking
to the Washington conference to put
an end to the intrigues of Japan as
/ well as the operations of the preda-
tory Tuchuns, who war upon any form
of centralized government and also
among themselves.
/ The recent rebellion of the Peking
Government against the Canton Gov
ernment was directly credited to the
influence of Japan by Wu Ting Fang.
/ He openly charged that Japan was
supplying arms and ammunition to the
Hsu government at Picking.
Prominent Chinese business men
with whom / have talked openly as
serted that the obstruction and delay
4 f,xvy@ 1ur h.
scribed to by Great Britain. France,
the United States and Japan was d.
rectly due to Japanese diplomacy
Negotiations looking to the assistance
4 Of China by banking groups OF the
| four countries was begun back IN
! 1915 and very rapid progress was made
toward the accomplishment of the
scheme until August two years ago,
when the Japanese Government dis
organized the machinery set up by
declaring that 1t should not relate to
nor affect the special rights and In
| terests possessed by Japan in South
( Manchuria and in eastern Mongolia"
4 The United States and Great Britain
vigorously protested against this ex-
/ emption of so-called special rights
and interests Of Japan" on the ground
that II would destroy the entire pur-
pose of the consortium enterprise.
4 The United States expressed its
grave disappointment that the formula
i proffered by the Japanese Government
is in terms so exceedingly ambiguous
4 and in character so irrevocable that IL
might be held to indicate the con-
tinued desire on the part of the Jap
| ~1ttdn
American. British and French banking
groups from participation in the de-
yelopment, for the benefit of China,
| Of important parts of that Republic
British Note Almost Identical.
i The British note was almost identi-
cal with that of the American Govern
4 ment. Japan stubbornly clung to its
position that the consortium should
/ have no control In territory where her
special interests" were recognized as
existing. T. w. Lamont, on behalf
OF the American group. spent two
months in Tokyo last year reasoning
with the Japanese Government. In
order to secure the acceptance of the
consortium plan and the cooperation
OF that country in promoting It, Great
Britain, France and the United States
were compelled to assent to the ex-
emption of the South Manchurian
Railroad the Kirin- -Hueining. the
Changchiatun- -Taonanfu. the Chang
chun-T -Taonanfu. the Kaiyuan- Kirin
the Kirin- -Changchun. Shiminfu-Muk-
den. and the kai-Changchiatun
railroads, as being outside the scope
Of the joint activities OF the consor-
tium."
The Japanese consent was mainly
won through the tact and patience OF
Mr.. Lamont. who on more than one
occasion was compelled to talk pretty
I plain to the Japanese bankers. II
am correctly informed. 1t Is very
evident to impartial observers al
Tokyo that any steps to make effec-
tive the consortium project viii have
TO be provided by the United States
England and France. and that the
attitude Of Japan is still censorial and
suspiciously critical.
Chinese authorities make no bones
in charging that the Japanese Gov
crnment has deliberately misrepre-
sented the attitude Of the United
e'tates in interpreting the Ishii Ian
sing agreement. The Japanese Gov
ernment holds that this agreement
1 recognizes that Japan has special in