Arizona republican., 1922-01-07
[RepublIean- a. 2. Lea.sd wIrs1


WASHINGTON, Jan. g.. The
Shantung conversations between the
Japanese and Chinese delegates were
adjourned sine die late today when
the Chinese declined to accept a
Japanese counter proposal for pay
ment for the Kiao- Chow Tsingan Flu
railway by a 15-year loan redeemable
by China in five years upon six
months notice.
Japanese delegates found unaccept-
able the two Chinese alternative pro-
posals, ''in their present FORM" pro-
viding for a single immediate cash
payment, or installments covering IL
years with an option to take up re-
naming notes within a shorterMper-
iod. The Chinese offer included the
appointment of Japanese chief en-
gineer.
The Japanese offer was Japan's
final suggestion" for a settlement of
the question of control of the dis
puted railway, declared to be the
crux of the entire Shantung contro-
versy, Masanao Hanfhara, one of the
Japanese delegates told newspaper
correspondents after the meeting.
He added that the Chinese had de-
clined this offer, but said that there
might be another meeting tomorrow
or Monday.
The japanese, he said, had no in
tention at the present time of ask
ing intervention by Arthur Balfour
and Secretary Hughes, although he
said the Chinese might consult with
the heads Of the British and Ameri-
can delegations, under whose good
OFFICES" the conversations were be-
gun several weeks ago, in an attempt
to settle the dispute "outside the
arms conference.
DR.. Wellington Koo, OF the Chinese
delegation, was less communicative
immediately after the meeting.
The situation is quite critical" DR..
hoo said, "and l do not want to say
anything hastily. We may, however,
decide to make a statement later to-
night"
Toxic Makes Proposal
The japanese proposal, which the
chinese declined, was based on direct
instructions from Toxic. The pro-
posal, Mr.. Hanihara said, provided
for the restoration to China of the
kioa- Chow Tsingan- Flu line by means
or the 15-year loan through japanese
capitalists. China, he said, would
nave full title to the road, but would
agree to designate a Japanese traffic
manager and chief accountant and If
the loan were redeemed, the obliga-
uon to retain Japanese experts would
cease.
unfortunately we were unable to
reach an agreement today" he con-
tnued, but we may meet tomorrow
or Monday. We feel that our posi-
ton is entirely clear but China says
that our latest proposition is not
acceptable. The Chinese delegates
proposed an immediate cash payment
for the deferred payments but we do
not desire to sell to China the rail-
road property.
The original proposition OF the
Japanese government was to make
the railroad a joint Chino Japanese
enterprise. You must remember that
this railroad is now Japanese prop
erty, but as China expressed the wish
to have share in it we expressed
our accord and said we would let
the Chinese in on a so per cent basis
but this was not acceptable to them.
They wanted to take over all the
railroad. SO we went still further.
We were ready TO give the title or
the railroad entirely to China but we
could not give up all our interest in
the property.
80 we planned to make the trans
fer in the form of a railway loan, the
terms of which would be not differ
ent from similar railway loans which
China has entered into with other
powers. Under such a disposition
the question Japan would have the