Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-01-08
DEADLOCK OVER
. SHANTUNC ISSUE
MAY Be BROKEN
Prospects for a Final Settle
ment Appear Brighter;
Chinese Confer With
Huuhes and BaIfour.
tBy The Associated Press.)

Washington, Jan. 7 .(by the AS
ISOLATED Press. 1.-The prospects for
an ultimate settlement of the Shan
tung controversy appeared brighter
in some quarters today after the
Chinese and Japanese delegations
sured by Arthur j. Balfour and
Secretary Hughes that their offer
OF good offices" still held good.
No date has, however, been SET
for u resumption of the CONVERSE
tons broken off Friday with the
Chinese and japanese delegations
standing firm on their respective
positions regarding payment FOR
for the Using Tao Tsinan Flu rail-
way.
Talks "ReassurIng."
The Chinese delegates after
spending forty minutes with Secre-
tary Hughes and a somewhat longer
time with Mr.. Balfour later, said
their informal talks were salts
factory and reassuring. Ihey
added that both Mr. BaitouI
and Mr.. Hughes had upheld their
contention that the good offices
offer under which the Chinese and
japanese first were brought 10.
gether still held. To this the Chin-
csc seemingly had attached great
Importance, as when the meeting
between the delegations was about
to break up yesterday the japanese
baked at suggestion that Messrs'
Hughes and Balfour be called in 10
mediate, giving the reason that II
might be embarrassing to those TWO
unless the Chinese were willing 10
make further concessions.
Because of the delicacy of the
situation, DR.. Wellington koo, a
Chinese delegate, said he could NOT
give any details of what occurred
in today's meeting.
Before meeting the Chinese, Mr.
Hughes let it be known his talk
would be informal and was not
to be considered as exercisins
good Offices" 1t was said he
thought that the difficulties pc
tween the Chinese and japanese
we're slight, and that it would be
possible to reconcile the conflict
ing views. 1t was asserted that MT
Hughes would do nothing toward a
settlement of the Shantung dispute
that would not be welcomed by
both sides.
Optimism In Jap Camp.
In the Japanese camp, probably
more optimism prevailed regard
ing an ultimate settlement than
elsewhere. This was based, 1t wa
said, on the japanese belief that
the Chinese eventually would re-
cede from their position concern
ing payment for the disputed rali'
road by means of loan, and ac'
cept the proposal under whlcr
Japanese bankers would lend the
Chinese the money for fifteen years
with a fiVe-year option.
The japanese continued to as,
sert that their offer was final and
that only a small difference ex'
listed between the views of the two
delegations.
Chinese Contention.
The Chinese contention continues
to be that they cannot accept a
Japanese loan in payment for tnt
railroad because that will merely
be turning the road back on paper
while in actual fact the japanese
would be in complete control. botf
through the loan and the require,
ment contained in the offer tha'
the traffic manager should be
Japanese national. On these two
points the Chinese, however, say
they will not recede.
For these reasons 1t was believed
in some quarters tonight that there
will be no settlement unless ont
side or the other surrenders unde'
pressure, something which 1t is un'
derstood neither Mr.. Hughes moi
Mr.. Balfour will exert.