Evening star., 1921-12-04
OFFICIAL STATEMENT OF PARLEY
ON DISCUSSION OF CHINA LEASES

The territory in question forms
a part of Manchuria-a region
where, by reason of its close
propinquity to Japan's territory.
more than anything else. she has
vital interests in that which re-
lates to her economic life and ma
tional safety.
Want Interests SafeEuarded.
This fact was recognized and
assurance was given by the Amer
ican, British and French govern
ments at the time of the formation
of the international consortium that
these vital interests of Japan in the
region in question shall be safe
guarded.
In the leased territory Of Kwan-
tung province there reside no less
than $1,000 Japanese. and the COM
mercial and industris' interests
they have established there are OF
such Importance and magnitude to
Japan that they are regarded as
an essential part Of her economic
life.
1t is believed that this attitude
of the Japanese delegation to-
ward the leased territory OF
Kwantung is not against the prin-
ciple of the resolution adopted on
September 21.
Position Of England.
Mr.. Balfour pointed out that
leased territories. though normally
all described under the same title.
were held under very different and
VARYING circumstances. The Japa-
nese delegation had already indi-
Gated that Shantung and Manchuria
respectively were held on entirely
different bases and must be con-
sidered from different points of
view. Great Britain had two diff
ferent kinds of leases. and these.
as he thought the Chinese delega-
tion itself would admit. must be
held to stand on a different footing
one from the other. Mr.. Balfour
referred first to the leased territory
of Eowloon extension. Why, he
asked, was it considered necessary
that the leased territory of kowloon
should come under the same ad-
ministration as Hongkong? The
reason was that without the leased
territory Hongkong was perfectly
mercy of any enemy possessing
modern artillery. He hoped that
he would carry the conference with
him when he asserted that the safe
guarding Of the position Of Hong
kong was not merely a British in
terest, but one in which the whole
world was concerned. He was in
formed that Hongkong was easily
first among the ports OF the world.
exceeding in this respect Hamburg
before the war. Antwerp and New
York. Mr.. Balfour then read the
following extract from THE United
States Government Commercial
Handbook Of China"
THE position Of the British
colony Of Hongkong in the worlds
trade is unique and without
for a duty on wine and spirits; it
has relatively few important in
dustries: it is one of the greatest
shipping centers in the world; IL
Is the distributing point for all the
enormous trade of south China, and
about 80 per cent of the entire
foreign commerce of China. The
conditions of, Hongkong in it's
relations to commerce are in every
centers all its efforts on fostering
trade, while the future is being an
ticipated by increased dock facilities,
the dredging Of the fairways, and
other improvements. The merchants,
both native and foreign, give spe-
cial attention to the assembling and
transhipping of merchandise to and
from all the ports Of the world, and
with the worldwide steamship con-
nections at Hongkong the neces-
sity of retranshipment at other
ports is reduced to minimum.
Hongkong is the financial center Of
the east
Testimony Declared Impartial.
Mr.. Balfour said he could not
add anything to this perfectly i'm
partial testimony to the conditions
Of absolute equality Of nations
under which the affairs Of Hong
kong are administered. and the
motives on which they are con-
Quoted. The lease of the Kowloon
extension had been obtained for no
other reason except to give security
to the port Of Hongkong. and it
would be great misfortune if any
thing should occur which was cal
cuiated to shake the confidence OF
the nations. using this great open
port, in its security. He hoped he
need say no more to explain that
Kowloon extension was in a diff
ferent category and must be dealt
with q different spirit from those
acquired for totally different mo-
tives.
Mr.. Balfour then passed to the
question of Wei-hai-wei. The
acquisition by Great Britain of
this lease had been part of the
general movement for obtaining
leased territories in 1893, In which
Russia, Germany and France. as
well as Great Britain. had been
concerned. The motive which had
animated the Germans in acquir-
ing Kiaochau had been largely to
secure economic domination. The
moeive Of the 1ettish government,
on the other hand, in acquiring
the lease Of Wei-hai-wei had been