The New York herald., 1921-12-10
TOXIC SEEN TO YIELD
TOPEKN 0NRAILWAY
Shantung Settlement Will
Give japanese Longed For
Prestige in Manchuria.
CRUZ OF BIG SITUATION
If Any Hitch Occurs China
Will Return All Of COntrO-
versy to Conference.
CRUX OF BIG SITUATION
speotu, Despatch TO THE New York HERALD.
New York Herald Bureau.
Washington, ID. c., Dec, Q,


New York Herald Bureau
Washington. ID. c., Dec. o.
Japan and China are on the verge
OF an agreement regarding Shantung.
This was the important news develop
ment of the day after a conference
between representatives of the two
Powers relative to public property
rights in the disputed Chinese prov
ince.
The probability OF agreement is
predicated on the assumption that the
ice jam which has damned up the
flow of conference progress on all
things is about to be broken up. China
and japan are deadlocked on the ques-
ton of the japanese controlled portion
OF the railroad in Shantung. but it is
expected that Japan will yield. This
expectation was based on the conf
dent belief that Japan is prepared to
go to great lengths 10 bring about a
settlement on all other questions which
will enable her to maintain her posi-
ton in Manchuris
II the japanese do not yield the Chi
nese are prepared TO refer the entire
matter back 10 the conference, which Is
palpably unwilling 10 receive the ques-
ton. Before this step is taken Mr.. Bal
! four and Secretary of State Hugh5s viii
be called on TO exert their good Of
fices" in the hope OF bringing about an
| agreement.
Up to this time the Japanese have
given no open indication that they will
bulge an inch from their contention that
| they shall retain q one-haif ownership
| OF the portion of the Shantung Railroad
; which they now control. They will con-
tinue this attitude up to the very mo-
ment they yield. II they yield at all. 50
that there will be no doubt In the mind
OF che public that the Japanese believe
/ they are entitled TO great consideration
because OF what they have given up.
In view OF this attitude IL was be-
llevcd here tonight that Mr.. Balfour and
Secretary Hughes would be compelled 90
intervene before the situation was ad-
I justed.
Having taken up most OF che Shantung
questions in advance tho delegates arc
IN position 20 tackle the railroad dues-
ton Tomorrow. question which is the
crux Of the entire controversy between
japan and China.
In explanation % ,heir position the
Z Chinese delegates arc of the opinion that
they could rot do otherwise than insist
on the retreat ~ Japan from her de-
mand 10 retain a half control OF the
railroad even II they wanted to. Their
position Is that public sentiment in their
country would never countenance such
1 action.
II the conversations" fail 70 reach an
agreement as to tho railroad question,
the break" IL expected to come with
a flash and the conference win have the
unwelcomc shantung issue on its hands
I with extreme suddcnncs7.
A complete agreement was reached
by the conferees to-day or the subject
OF public property. including such mat
ters as utilities and roads. Before
finaity can be given 70 the Japanese
concessions the approval OF the Japan
ese Government must be obtained. II
was said, although II 10 assumed that
the action Of the Japanese conferees
will be fully sustained.