New-York tribune., 1921-11-23
Abolition of $50 Limit
on Import Taxes Held
To Be Vital to Restora-
ton of Peking's Credit
Seek to Eliminate
Foreign Regulation
Kato Admits Manchuria
Belongs to China, but
COnceals Intentions
By Thomas Steep

WASHINGTON, Nov. o. Definite
steps toward rescuing China from eco
nomic chaos and political disunion were
taken to-day by the conference COM
mittec on Pacific and Far Eastern ques-
tions.
Acting under the four principles laid
down to provide her with "the fullest
and most unembarrassed opportunity to
develop" the committee decided that
China, in order to rehabilitate her
finances, must be relieved of the limi-
tatlon of per cent placed on her i'm
ports for the last seventy-nine years
by foreign control. The committee re-
ceived and referred to subcommittee
for detailed elaboration a plan to deal
with "the administrative autonomy of
China" The direct purpose of the plan,
it was explained, will be to mitigate
the financial burdens which result to
China from the foreign regulation of
her customs.
Resort to Loans Forced
Ever since Great Britain began to
regulate Ckina's customs after signing
the treaty of Nanking in 1912, it was
explained, China by successive treaties
with other powers has been en-
tangled in foreign control until now
her whole economic condition depends
upon whether she is to be permitted to
govern herself. Prohibited from de-
veloping her own industries through
the use Of protective tariffs, it. was
pointed out, she likewise has been de-
prived of sufficient revenue because a
per cent minimum based on pre-war
prices has been insufficient for the ex-
pelse of her government. Hence, the
Chinese advisers declare, China has
been constrained to make foreign loans
and to yield portions Of her territory
in the form Of concessions and "spheres
of influence"
The committees action was an
nounced in communique, which said
'The committee discussed the mat
ter of limitations upon the admin stra-
tive autonomy of China, with particu-
lar reference to those connected with
revenue, and, on Senator Underworld s
proposal decided to appoint sub
committee, consisting of a representa-
tive of each of the nine powers, for the
purpose of examining facts and stating
their conclusions to the full committee
IHe SuD-COIlNllCCee TO nave power to
call in such expert opinion as it might
desire''
U. S. Takes Policy Seriously
The American delegation let it be
known emphatically to-day that the
basic principles agreed to by all the
powers with regard to China are to be
the basis not merely of theoretical dis
cussion, but of concrete action. China's
400,000,000 populatiCs., in a word, are to
be encouraged to become a nation of
consumers, as we'll as a nation of pro-
ducers.
Foreign loans to China involved in
the consortium of banking groups, it
was said, may be facilitated rather than
hlndered by the new scheme to increase
China's revenues.
Another definite result of to-dav's
session was that the conference in set
Ting China's claims will have before
it the map of "Historic China" and
not China with Manchuria and Mongolia
Topped off. Baron Kato, on behalf of
the Japanese delegation, said Japan
conceded that Manchuria belonged to
China, but he gave no hint as to what
Japan's attitude toward ChiEa's claims
in that province would be. He would
not even refer to Mongolia
part OF China" said Baron Kato.
eve are prepared to discuss problems
in regard to Manchuria if they come
before the conference, but in advance
l will say nothing"