The New York herald., 1922-01-21

clared the Japanese delegates had
general knowledge Of contracts between
Japanese Nationals and Chinese authors
ties, but there was no legal means OF
compelling Individual firms TO produce
the texts of such agreements. Adherence
TO Article III. of the resolution, he ad led,
would therefore require an act OF lesis-
lation so far as Japan was concerned.
He invited the views of the otker Pow
ers.
In reply Secretary Hughes pointed
out that the resolution required only
information as to contracts on which
the respective governments proposed to
rely, and that 1t was further provided
that the list should only be made as
complete as the knowledge Of the re-
spective governments made possible.
Furthermore, Mr. Hughes argued, some
Chinese official would be cognizant Of
every important financial arrangement
falling within the scope of the resolu-
ton. and thus. If the plan were adopted.
information regarding such agreements
could be given by China.
Baron Shidehara responded that 1t
nevertheless seemed entirely possible
that contracts would come to light in
the future of which the Japanese Gov
ernment at present had no knowledge.
mate the Japanese would have to sup
port them. He declared Japan would do
everything in her power to supply the
list required but could not guarantee
that the list would be complete.
Speaking for the British, Arthur j.
Balfour indorsed in substance the argu-
ment of Secretary Hughes but sug-
gested two changes in Mr.. Hughcs's
resolution. Referring to the stipulation
that all individual contracts involving
an obligation Of one million dollars must
be listed he asked whether that sum
was not generally considered small
one in great international transactions.
and further whether it was not q fact
that commercial men did not always
wish to have the precise terms of their
contracts made public.
Third Article Proposed.
Besides Mr.. Balfour suggested that
sections be added to the resolution max
irg China a party to it and inviting the
adherence OF nations not represented
here. Subsequently Mr.. Hughes proposed
the following as a third article of his
resolution:
The Chinese Government under
takes to notify promptly I'm the man.
ner laid down in this agreement every
treaty, agreement or contract Oi Vic
character indicated herein which has
been or may hereafter be concluded
by that Government or by any local
authority in China with any foreign
Power or the nationals of any foreign
Power, whether party to this agree
ment or not, so far as the infor1na-
ton Is in its possession.
Baron Shidehara suggested that IL the
new article we're adopted he did not un-
derstand why Il was necessary to retain
Article H., which also covers contracts
of the same character. Mr.. Balfour
then suggested that the words "On
which their respective Governments pro-
pose to rely" should be stricken out of
Article ii. because 1t seemed improper
to require the Powers 10 decide before
hand on what contracts of its nationals
II expected in the future to rely.
The discussion came to an end at the
suggestion OF Vice Foreign Minister
Hanihara, another of the Japanese dele
gates who suggested that several points
seemed to require careful consideration
and that an adjournment was desirable
to permit closer study Of the resolu-
ton and its amendments.