Evening star., 1922-01-07

way loan. secured by the railroad
property. to the Chinese-as the other
powers have done in connection with
other railroads in China-this loan to
run for fifteen years. but with a pro-
viso that it may be redeemed after
six months notice five years from the
date of agreement. They also demand
that, until the road 10 entirely paid
for. they shall have 4 Japanese traf-
fio manager and chief accountant.
The Chinese make two proposals,
one of cash payment and the other
deferred payments. with Chinese
treasury notes or notes Of the Chi
nese Bankers Union. secured upon
the railroad properties, over q. period
of twelve years.
Want Interest In Road.
It is well understood that the Japa-
nese are bent upon holding an inter-
est in the Shantung railroad for q
number Of years. They see other for
eign nations holding an interest in
Chinese roads. and they do not see
why they should not do 50. Also. their
they shall do so.
At the outset of the discussion of
the Shantung railroad the Japanese
holding that the road was theirs, TAX
en- by them from the Germans. but
In Chinese terrftoryE.proposed to give
the Chinese one-haif interest in the
railroad: to make 1t q joint affair.
They thought this fair proposition,
they say, but China absolutely refused
to consider 1t. From that starting
point they have gradually modified
their proposals, until the final one
presented yesterday. They insist that
that Is as far rs Toxic will permit
them to go.
The following statement was issued
by the Chinese and Japanese dele
cations following the meeting yester-
day:
nese and Japanese delegates was held
governing board room of the Pan
American Union building. Discus
sions on the Shantung railway ques-
tion were continued.
The japanese delegates proposed a
railway loan agreement plan for the
settlement Of this question on the
basis of the terms Of ordinary rail-
China with various foreign capitalists
during recent years-namely, ON the
following general lines:
Proposes Fiftsea.Year Term.
I. The term Of the loan shall be
fixed at fifteen, years. while China
shall retain an option Of redeeming
the whole outstanding liabilities upon
six months notice after five years
2. A Japanese traffic manager and
chief accountant shall be engaged in
the service Of the Shantung railway.
8. The details Of the financial ar
rangement shall be worked out at
Peking between the representatives
80
This plan was not found acceptable
to the Chinese delegation.
Proposals Of Chinese.
The Chinese delegates. on their
part. proposed the following two al
tentative plans:
1. China shall make cash payment
for the railway and its appurtenant
properties with a single deposit in a
bank Of q third power At . specified
date either before the transfer Of the
properties or when such transfer ia
effected.
2. China shall make deferred pay
ment either in treasury notes or notes
of the Chinese Bankers Union. secur-
ed upon the railway properties, ex-
tending over a period Of twelve years,
with an option on the part Of China
at any time after three years. upon
giving sig months notice, to pay all
installment is to be paid on the day
on which the transfer Of the railway
and properties Is completed.
China shall engage that she upon
her own initiative shall select and
employ in the service Of the Tsingtao-
Tsinanfu railway q district engineer
Of Japanese nationality.
Neither Of these. plans was found
acceptable to the japanese delegates
in the present form.
The meeting adjourned At $50 pm.
sine die, pending further develop
ments.