Evening star., 1922-01-12
RAIL COMPROMISE
OFFERED TO SETTLE
SHANTUNG DISPUTE
Informal Proposals Made by
Arthur J. Balfour and
Secretary Hughes.
CHINESE AND JAPANESE
AWAITING INSTRUCTIONS
Definite Developments Expected
Within Next Few Days on
Involved Issue.

By the Associated Press.
An agreement was reached by
the Chinese and Japanese dele
gates when their Shantung con-
versations were resumed today
on the question of concessions
for the building and extensions Of
the Tsingtao-Tsinanfu railway
in the Kiaochow leasehold.
Two extensions. the Tsinanfu-
Shunteh and the knomi- suchow-
fu, are to be turned over to nm in
ternaMonnl Rroup-probnbly the
international consortium-for con-
structiOn, under the agreement.
while the Chefoo-WeisAei extern
sion In to be built by China.
At another session to be held
later today an attempt will be
made to reach mn agreement con-
cerning the opening Of the port Of
TslnEtao to all fOpeign commerce
on equal terms.
A series of informal proposals and
alternatives looking to a compromise
of the Tsingtao-Tsinanfu railway dis
pute. has been submitted jointly by
Arthur j. Balfour aud Secretary
Hughes. in settlement of the Shan
tung question. and is now under
consideration by the Peking and
Toxic governments. Definite develop
ments may be expected within the
next few days. it was learned on
high authority today.
Awaiting Instructions
Both the Chinese and Japanese dele
cations to the arms conference are
awaiting instructions from their home
governments before proceeding with
discussions concerning the railway.
while today they again met to con-
tinue their efforts to settle minor fea-
lures of the Shantung controversy.
None of the Hughes Balfour COM
promise proposals. it was understood,
involves ths aba ndonment Of the Chi
anese tFaflic manager Tor the road. but
the Chinese are asked to agree to the
appointment Of Japanese chief ac-
countant.
The position Of chief engineer the
Chinese delegation already has
agreed to concede to Japan.
Question Of Payment.
The question Of payment for the
railroad through a Japanese loan. 1t
was said. Is also involved. but In
such a way that IL China accepted
the Japanese proposal it would not
affect Chinese control of the road dur
ing the period Of the loan.
The Japanese proposal. to which
the Chinese have not been able to
agree. provided for a loan through
Japanese bankers for a period Of If
teen years. with China having the
right to take up the remaining notes
at the end of five years. upon six
months notice.
Coupled with this proposal was a
that the Chinese agree
to the appointment of Japanese ex-
perts in the positions Of traffic man
ager chief accountant and chief en-
gineer.
Chinese Demands.
The Chinese insisted on paying
either in cash or in installments
option on completing the payments
within three years. They definitely
declined to consider granting the
japanese the positions of traffic
manager and chief accountant
The position of traffic manager. the
Chinese contend, would carry with 1t
complete control of the railroad.
cerning the chief accountant. but 1t
was intimated today that II China
were given the traffic manager post
she would not be inclined to press for
that of chief accountant, and the
terms of the loan might be shaped
upon the basis of the Balfour-
proposal in such a way.