New-York tribune., 1921-11-05
China Rejects
Japan's Latest
ShantungOffer
Insists the Proposal Shows
a Misunderstanding of
Earlier Note, and Is Too
Remote From Demands
No Sign of Concessions
Failure to Withdraw Troops
From Railway Cited; Will
Await Reconsideration

PEKING, Nov. 4 (By The Associated
Prcss). The Chinese government has
rejected the latest proposals of the
Japanese government on Shantung as
unacceptable.
In a t&o-t note China
says that the Japanese memorandum Of
October 10 shows an apparent mis-
understanding of the Chinese note of
October s.
"Thc summary of the Japanese gov
ernment's proposed basis of settle
ment," the memorandum continues, "is
altogether too remote from the hopes
and expectations Of the Chinese gov
ernment and people, who therefore are
obliged to await patiently an oppor-
tunity suitable to Japan for reconsid-
Grafton of her position.
"The Chinese memorandum Of Oc-
tober points out the difference in
views between China and Japan re-
garding the principles underlying the
| Japanese proposals and the contents
and terms thereof, If the Japanese
government understood these differ
ences she would surely have proposed q
more substantial and more just project,
which would universally be recognized
as fair. 1t is most regrettable, how
ever, that the Japanese government has
| given no sign Of concessions, while
maintaining that China openly is un-
willing to proceed with negotiations.
Kiao-Chau Leasehold
China was unable to sign the Var
sailes Treaty, owing to the Shantung
articles; hence it is impossible to com
pei her to recognize the effects arising
from the treaty regarding Shantung.
Japan considers that the Kiao-Chau
leasehod was transferred to her by the
operation Of the treaty, while China
deems the leasehold to have expired
through her declaration Of war against
Germany. If both countries insist on
this difference in viewpoint solution
ever impossible, but, since Japan is
willing to restore Kiao-Chau complete
| ly to China, further necessity for
Japan's insistence on the point in the
dispute does not exist
Regarding the German declaration
concerning Shantung: China, when the
Chino German commercial agreement
was negotiated, insisted on her demand
for the restoration Of Kiao-Chau, but
Germany could only express regret to
China that Germany's power for re-
turning Kiao-Chau had been lost
through a force majeure, which expla
nation China simply acknowledged
Hence it is a serious misunderstanding
for Japan to construe this incident as
meaning China's recognition of the
Versailles Treaty.
at must be observed that the Kiao-
n E,s
lie German property, or private prop
was built within Chinese territory and
had a corporate nature, with Chinese
capital invested, and that China long
had looked for the opportune moment
for its reclamation,
Policing China's Right
"Further, the right of policing was
military necessity justified Japanese
occupation. China thereupon repeat
! edly protested the Japanese army's
occupation of the railway as unjusti-
| fed, pointing out that German troops
never were stationed along the line
except within the leased territory.
When China entered the war for the
Allies the properties of all the Chinese
railways should have been returned to
Shlhese coHtToI. But the Japanese
troops have remained, refusing to
withdraw and causing endless losses to
the Chinese along the railway.
The Chinese memorandum Of Octo-
ber S proposes regarding the claim of
right to control of the railway to di-
vide the entire capital and property
into halves, stating that China
will redeem the Japanese half within
a fixed period. This arrangement be-
ing most fair and just, the Japanese
statement that China's proposal is de-
void Of meaning is rcgrettable. It is
to be inferred that the Japanese gov.
ernment is of the opinion that the rail-
ways capital and property have been
awarded by the separations committee
to japan to Offset the German indem.
nifty. But China not having signed the
treaty, that commission has not the