The New York herald., 1921-12-01

already have passed up their own con-
clusions on capital ships TO the diplo-
matte delegates, who will finally de-
eide the question OF ratios. They
have turned their attention to analyz-
ing the demands made by France and
Italy, which are regarded by Great
Britain as exceeding the national de-
fence needs of both countries. The
principal British objection to the
Italian and French naval ambitions
is that a combination between them
would jeopardize the vitally important
interests OF Great Britain in the
Mediterranean. The consensus in
naval circles is that the Italian and
French plans viii be materially
shaded and that an agreement re-
garding their requests will be less
difficult TO reach than now appears
probable.
With the Italian and French pro-
grammes out OF the way, the naval
experts will next turn their attention
to the matter of Submarines. But no
agreements concerning either will be
brought forward until the controversy
The experts are proceeding with their
work in the most businesslike fashion
and rumors OF complications that may
affect the entire structure for arma-
ment reforms are waived aside as un-
worthy of serious consideration.
The debate over naval matters like
wise failed to halt the steady and
satisfactory progress being made to-
ward clearing up Far Eastern per-
plexities. Substantial advance was
made in an unexpected quarter of this
division of the conference work. 1t
was expected that the Japanese dele
gates would voice a protest against
the consideration of the controversy
over Shantung by the conference.
Shantung Negotiations.
The announcement was made that
both the Japanese and Chinese dele
cations had expressed a desire to re-
sumo direct negotiations for the re-
turn of Shantung to China, and had
accepted the good offices OF Secretary
Hughes and Mr.. Balfour to assist in
reaching an agreement If one is possi-
ble In making known this decision
the American delegates declared that
"the atmosphere is favorable for the
settlement OF the Shantung dispute"
The significance of the japanese
suggestion in this respect is that the
Shantung issue was directly raised in
the "ten points" submitted by China
as affording basis for the solution
Of Far Eastern difficulties. Mr.. Hughes
and Mr.. Balfour will meet with the
Chinese and Japanese delegates to-
morrow. when the question of Shan
tung will be taken up, and will assist
in providing a basis for an agreement
which they hope will be mutually
agreeable to Japan and China.
1t is quite probable of course that
Japan will bring forward the condi-
tions that she insisted on until China
refused 10 proceed with the direct ne
gotiations between the two countries.
Whether China can meet these condi-
tions is a matter of conjecture. Japan
has a substantial bill for administer
ing the affairs of Shantung during the
last seven years and she may further
insist on the liquidation of her claims
against the Pelxin Government for the
payment of money loaned for railway
and other purposes and secured by
mortgages bearing heavy rates Of
interest.
The American and British delegates
hope to find a way for supporting
guarantees that will be satisfactory to
Japan. The attitude OF the delegates
OF the latter country toward a sugses-
ton regarding the smoothing out of
complications in Manchuria was not as
agreeable. Up to date Japan has ad-
hered to the policy of asserting the
superiority of her rights to concessions
exacted from China which are held to
be prejudicial to the ambitions Of other
countries for equal privileges. How
ever. that is a matter that the Arnerf-
can and British delegates hope to ar
range later.
First Direct Concession.
Japan made an important concession
i'm agreeing to the withdrawal OF her
postal service from China at a date to
be determined later. 1t is, in fact, the
first direct concession that Japan has
made toward the accomplishment OF
the purposes OF the conference. The
Importance OF It lies in the fact that
japan has used the postal service In
China as the medium with which to
extend it's economic penetration into
all parts OF the territory under the
Pekin Government.
Special commissions will go to China
later and report on the subject OF the
extraterritorial privileges which all of
the nations participating In the con-
ference have agreed TO surrender when
China has established stable govern