Evening star., 1922-02-01
CHINA W|NSALL
IN SHANTUNG CASE
Terms of Agreement With
Japan End Possible Cause of
War in Far East.
BY WILLIAM T. ELLIS.

sVSSa "u "a .Aoks
BY WILLIAM T. ELLIS.
A final settlement of the Shantung
question has been reached, after thirty
six conferences between the Chinese and
Japanese representatives, extending over
a period Of two months. All differences
have been composed, and the results are
set forth in document Of 700 pages.
which has been made public The
compromise-for such it is-was ef-
fected only after an appeal to the
big mandarin in the White House,
whose prestige and power are so
great in China that the delegation
was instructed to comply with his
suggestions. Otherwise, the Chinese
might have held out to the very
wrecking of the conference.
Points China Gains.
China wins everything except the
appointment of a traffic manager; but
that officer is now, by the agreement
SO hedged about with restrictions and
safeguards that the Chinese think
that they will have real control of
the road. To Americans the deadlock
over the appointment of a single Of
fcial seemed incomprehensible, but
the explanation is that whoever con-
trolled the traffic manager controlled
the line, its employees and its busi-
ness.
Everybody's face is saved, in the
present agreement, by making the
traffic manager subordinate to a
Chinese managing director, who will
have authority to hire and to fire
Even the traffic manager himself is
removable for cause by the stipuls-
tions. In any case his job is only
for five years, and at the end Of two
and a half years he is to have a
Chinese assistant. Co-equal Chinese
and Japanese accountants are pro-
vided for. Furthermore, by the re-
turn of the road to China, it becomes
an integral part of the Chinese gov
ernment railways, and SO subject to
the additional oversight of the min
lister Of communications, and to the
general agreements and inspections
that operate upon other lines, includ-
ing the rules for distribution of cars,
thus preventing discrimination.
All the Japanese troops go from the
line. and as many Of the japanese
employees as the managing director
sees fit to replace with Chinese.
Fifteen Years for Payment.
, Ownership returns at once to China,
and it is to be paid for over a term
NJ Aftaon
have the option of reducing to five
years. The payments are to be in
the form of treasury notes, secured
by the railway property itself, which
is presumably twice as valuable as
the price which Japan is paid for one
half of it. This sum is Thirty million
dollars, Mexican-the dollar in China
being at present worth 60 cents in
American money. In gold currency
the money involved Is thus $4,000. 900.
It will not be necessary for China
to raise a popular loan to pay for
the road. as the sum can be met out
of the earnings, the railway men say.
These two items-the traffic man.
the sticking points in the discussion.
But in the 700-page agreement there
are a multitude Of items, many of
them intrinsically more important
than the two in controversy. The city
and port of Tsingtao go back to
ment. While the Chinese promise to
consider the wishes Of the large num-
Der Of Japanese residents of the city
who have acquired property there
since the Germans were driven out,
these Japanese have no special rights
or privileges.
Mines Under Chinese Charter.
Mines in Shantung are henceforth
to be operated under a Chinese
charter. and it is written that the
Japanese may not hold more than 50
per cent Of the stock. Transfer of
ownership or safeguarding Of the
rights OF q great assortment of prop
erty, from Japanese shrines to Ger
man docks, are all particularized in
the huge document, which will be the
largest single literary product Of the
The wealth of detail COW
cred is bewildering, and the effect of
1t all is to give Shantung, and all the
special privileges the Japanese have
acquired in Shantung, back to China.
So much for the bare facts Of the
case. An it should be noted that the
have proceeded on a
basis of existing facts rather than
on legalistic grounds. For it is COM
monty overlooked that while Japan
has held Shantung as q result Of the
demands" of 1915, there
has also been an agreement of much
later date. 1918. wherein China con-
sented to q joint sino-Japanese own
ership and control Of the railway.
These two sets of documents, as well
as the Versailles treaty, were set
a side by conferees. and they proceeded
on the basis Of the present state OF
things.
More important than any Of the times
set forth in this document which ends
the perilous and famous Shantung
question is the effect it will have
upon China, Japan and America.
Elects Most Vital
Already word has come from Peking
that China has yielded to a compro-
mise agreement. because she could
not stand up against Anglo-saxon
pressure. Practically, this means that
the responsibility will be put up to
President Harding. The Japanese will
naturally claim that America sup
norted them, and the critics Of the
settlement in China will charge that
America has betrayed them.
Frankly, the effect Of the settlement
upon the more e1citable and radical
element in China IL being regarded
with real anxiety by Chinese here.
Fortunately, only one Of the delegatss.
Minister Wang, has to return to China,
and he will probably wait for . while
IN Shanghai The japanese delegation
also will be accused Of having backed
down. and IT. welcome. home win Be