Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-01-07
JAPAN. REFUSES
CASH SHANTUNC
RAILROAD DEAL
Conversations Broken
Off at Arms arley on
Controversy in China.
Japanese Prefer $3.50
Control of Line Which
Is Crux of Dispute.

Washington, Jan. 6.--(By The AS
sociated Press) The Shantung con-
versations between the japanese and
Chinese delegates We're adjourned sine
die late Friday when the Chinese
declined to accept Il japanese counter
proposal for payment for the klao
Chow-Tsinan Flu railway by 15-year
loan redeemable by China in five years
upon six months notice.
Japanese delegates found unaccept-
able the two Chinese alternative pro-
posals, lin their present form, pro-
viding for a single Immediate cash
payment. or installments covering IL
years. with an option to take up re-
manning notes within a shorter period.
The Chinese offer included the ap-
pointment of a japanese chief engineer.
Final on Japan's Part
The Japanese offer was Japan's
final suggestion" for a settlement of
the question of control OF the dis
puted railway, Masanao Hanihara, one
of the Japanese delegates, told news
paper correspondents after the meet
ing He added that the Chinese had
declined this offer, but said that
there might be another meeting Sat
urday or Monday.
The Japanese he said, had no in
tention ae the present time of asking
Intervention by Arthur J. Ralfour and
Secretary Hughes, although he said
the Chinese might consult with the
heads of the British and American
delegations, under whose good offices
the conversations were begun several
weeks ago. in an attempt to settle the
dispute outside the arms conference.
Critical, Says DR.. Koo
''The situation is quite critical" DR..
Wellington Koo, Of the Chinese dele
CATION said. land I do not want to say
anything hastily. We may, however,
decide to make a statement later at
night"
The japanese proposal which the
Chinese declined was based on direct
instructions from Toxic. The proposal,
Mr.. Hanihara said, provided for the
restoration to China of the Kiao- Chow
Tsinan- Flu line by means of the 15-
year loan through Japanese capitalists.
China, he said. would have full title
to the road. but would agree to de-
signate traffic manager and chief ac-
countant, and if the loan were re-
deemed, the obligation to retain Jap
anese experts would cease.
"TnfOrtunately we were unable to
reach an agreement" he continued. but
we may meet Saturday or Monday We
feel that our position is entirely clear
but China says that our latest rropo-
stion is not acceptable. The Chinese
delegates proposed an immediate cash
payment for the deferred payments.
but we do not desire to sell 70 China
the railroad property.
THE original proposition of the Jap
anese government was TO rake the
railroad a joint Chino Japanese enter
prise. You must remember that this
railroad is now japanese propcrtT. but
as China expressed the wish to have
share in it, we expressed orr accord
and said we would let the Chinese in
on 30 per cent basis but this was not
acceptable to them. They wanted TO
still further. We were ready TO give
the title or the railroad entirely to
China. but we could not :;ive UP all our
interest in the property.
Japan Could Have Manager
$50 we planned to make the transfer
in the form railway loan, the terms
of which should be no different from
similar railway loan agreements which
China has entered into with the ne
tionals of other powers. Under such
disposition Of the question, Jlpan
would have the right 20 furnish the
traffic manager and chief accountaEt
with the understanding that they were
to be appointed by China"
Mr.. Hanihara said that Japan was
not vitally concerned over the vaue of
the railroad, but pointed out that The
Preparations commission had placed the
value at the time the Germans left the
railroad at 15.000.O00 gold dollars.
A Chinese newspaper correspondent
said:
Suppose China says to you Here's
the money for the railroad now, would
Japan take it?"
''Such a plan. Mr. Hanihara replied
''is not acceptable to our government
Our object is to bring about better
understanding between japan and
China and we do not want question
like the raising of money by China
which might be difficult. but which Chi
nesc would succeed in raising in burst
Of patriotism, to hurt the feelings be-