The New York herald., 1922-01-07
Japan's Diplomatic Strategy.


welcome it,
Japan's Diplomatic Strategy.
This interruption has slightly delayed.
but not materially affected, the progress
of negotiations concerning the Far East.
The fact that the japanese and Chinese
are nearly together but unable to agree
increases the belief Inat the Japanese
are fortifying their position relative to
Manchuria and Siberia, so they will have
something material to yield in Shantung
when they register their attitude toward
the Siberian and Manchurian questions.
Apparently only difference of two or
three years lies between what the Chi
nese and Japanese describe as their
fnal concessions regarding the Shantung
Railway.
In the conversations" to-day China
made definite offer OF cash pay
ment for the road. with some reference
TO deferred payments covering three
years The Japanese explained they
did not understand just what was meant
by deferred payments" The final
Japanese offer was a loan to China
covered by the Shantung Railroad.
which was to run fifteen years, with
! the privilege extended to China to pay
the loan within five years after giving
six months notice of intention to do So
This difference in time appears so
immaterial that neither japanese nor
chinese have been able. satisfactorily
TO explain why the negotiations could
not be brought to a conclusion.
Conditions Attached to PROPOSAL.
The japanese proposal carried with
it the condition that during the time
OF the existence of the loan the Shan
tung road should have Japanese chief
accountant and a japanese traffic man.
ager, giving the Japanese complete con-
troll of the road during that period.
The Japanese explain that their in
sistence upon having China accept the
loan they offer is based upon necessity
or protecting certain indefinable inter-
ests. The value of the road and its
properties Is fixed by the Repara tions
Commission at $1,000. 900 gold marks. but
the japanese say its present value will
have TO be fixed by commission.
The Chinese counter proposal was ex-
planned In the statement issued after
adjournment Of the conversations" as
follows:
China shall make a cash payment
for the railway and its appurtenant
properties with n single deposit in a
bank of third Power and at specific
date, either before the transfer of the
properties or when such transfer Is
effected.
China shall make n deferred payment
either I'm Treasury notes or notes of
the Chinese Bankers Union secured
upon the railway properties. extending
over period OF twelve years with an
option on the part of China at any time
after three years upon giving six
months notice to pay all outstanding
liabilities. The first installment Is to be
paid on the day on which the transfer
of the railway and properties is com
pleted.
"China shall engage that she upon
her own initiative. shall select and en-
ploy in the service OF the Tsingtao- Tsi-
nanfu Railway n district engineer OF
japanese nationality"
Effort 60 Retain Control Seen.
The Chinese issued statement to-
night emphasizing their contention that
the purpose which Japan has in nina is
TO continue control Of the road. regard
less OF what arrangements are made.
This delay in reaching an under
standing concerning Shantung has made
It necessary 10 defer decisions concern
ing Siberia. where the real differences
among the Powers is anticipated. Even
here, &c Is believed. much has already
been accomplished through Informal
conversations.
Tho character OF the Siberian settle
ment which Il Is expected will be that
Japan will declare her readiness to get
out OF Siberia when she has received as
surances OF the protection OF the lives and
property of her nationals, but she will
vigorously resist the fixing OF any spe-
cific date when she will withdraw. Japan
will insist she shall be the judge of the
conditions which she sets UP as prece-
dent to her withdrawal have been full
filled.
The attitude of tho United States
toward the Japanese occupation of ST.
IBERIA has been clearly intlmated. The
United States will held that all OF the
Powers entered Siberia with the solemn
agreement they would withdraw after
the repatriation of the Czecho- Slovaka,
che reason for the Siberian occupation
having been accomplished. All have
withdrawn except Japan. The United
states has already declared itself in
favor of the Powers adopting the posi-
tlon Of q moral trusteeship for Russia
during it's present extremity
It was intlmated by spokesman for
the British delegation to-day that all
questions developing in the conference
relative 60 the Far East which shall not
have been settled when the conference
adiourns would be taken M by a coun-
ell OF ambassadors composed OF the resi-
dent ambassadors In Washington Of the
Powers participating here.