New-York tribune., 1922-01-08
Unity of China
Held to Depend
Upon Shantuns
tcortInusd from p.ao ono

Mr. Balfour as mediator Mr. Balsou
likewise is sanguine Of Ultimate sue
cess. at is inconceivable that, havin.-
arrived so near settlement the Ch
nese and japanese delegates csnnot
agree on details" said Mr.. Balfour 20
day.
Have Forty Minute Conference
For about forty minotcs the Chinese
delcg tes talked with Mr. Hughes in
the presence of John Van A. MacN =
ray. chief Of the Far Eastern division
Of the state Department, who has be u
present az American 81 hscrver" at all
the twenty sessions of the direct nego
tiations- Dr. Sze presented two phases
Of the situation. He said too m ct
stress could rot be placed on the
gravity of the Shantung situation
brought about by inability to agree.
Mr.. Hughes vas then told that The
people throughout China. regardless o.
their political aft iations. were united
so far as Shantung was concerned and
that the japanese occupancy o. thr
province had been a source of bittei-
resentment in China, creating a sersc
of nat;onal humillation
Nh Hugnes, 1t Is understood, asked
particularly for specific details Of the
disagreement. He was told that So.
tlement had resolved itself into a ques
ton OF the control of the railway which
runs through Shantung from Tsingtac
the port. to Tsinan, the capital Tho
Chinese delegates contend that coriro1
of the railway. either financial or al
mnistrative, would give Japan xirtuai
economic control of the province. and
that all tho other concessions Japan
has agreed to make in regard to former
(rpr Il
he differences between the Chinese
and Japanese delegates, Mr.. Hughes
was informed, rested on proposals for
turning over the railway to the
Chinese. The Chinese delegates want
TO pay cash and obtain immediate cor
troll, but this offer being refused. thcs-
are willing to extend payments over ?
maximum period Of three and a hal
years, with entire Chinese control dur
ing the period. On the other hand, the
Japanese want 10 sell the property or
a loan furnished by japanese banker.
the loan to extend over five and 2 hal
years and the railway in tho near
time to be under Japanese manage
ment.
Japanese Control Resented
Mr.. Hughes was Informed that the
Chlnese delegates felt they had made
sicatei CONCESSIONS looking TO set
tlement than the Peking government
desired, and that the final japanese
offer asking for more would therefore
be unacceptable to the Chinese pee
pie. An agreement providing for FIVE
years more OF Japanese suzeraintv
over the province would be repudiated
IN Oh ma, it WIS said
1t IS understood that the "obserycrs"
appointed by Mr.. Hughes and Mr.. Bal
TOUR to attend the negotiations ALREADY
have suggested new plan for a settle
lnent. and that this viii be presented
probably Monday or Tuesday. Mr.
hughes and Mr.. Balfour having beon
informed in person of the breaking o.
or negotiatons, it is said, will confe,.
with their observers" and then cx-
tend an invitation to the Japanese ami
Chinese delegates to meet with them
jointly.
Besides Mr.. MacMurray the United
States had been represented in ,he
negot ations by Edward Bell, former,
counsellor 10 the American Embassy q
Toxic. The British observers are Sin
John Jordan and Miles Lampson, both
! experts on Far Eastern affairs.