The New York herald., 1922-01-27
Chinese Hold Most Impor-
tant' Meeting-Decision
Expected Saturday.
ITALY Is NOW APPEASED
Ready TO Accept Share in At
lantic Cables, Approving
the Pacific Treaty.

WAsHINoToN. Jan. % ASSOCIATED
Press) over the outcome
of the Presidents efforts for a settle
ment of the Shantung controversy
gained ground in every quarter to-
day. Outwardly the Shantung prob
lem itself was in a waiting stage
although important moves were talk
ing place behind the scenes in Pekin
Toxic and Washington.
AS if preparing for the announce
ment of a complete agreement. how
ever, the plenipotentiaries of the Toxic
and Pekin governments to-day cleared
the last remaining collateral issues of
the Shantung negotiations and agreed
to meet Saturday morning to begin
the drafting of a treaty. Only the CEN
trail problem of the Tsingtao-T -Tsinanfu
Railroad, to which the compromise
proposal supported by President Har-
ding is directed, now remains unset
tied.
Hold Night Conference.
The Shantung meeting and session
of the drafting subcommittee, at which
the Chinese radio resolution of Decem-
ber was reaffirmed after agreement on
additional declarations had failed, were
followed by a conference of the Chinese
delegation on the Shantung question to-
night. Although it was said to be most
important no announcement was made
at is close.
The December resolution provides
for cancellation of unauthorized wire
less concessions in China, while the pro-
posed additions would have directed
future development of the Chinese wire
less system. 1t was decided to enter
these rejected proposals on the confer
ence records as representing individual
viewpoints.
Meantime another conference draw
back disappeared when the Italians
made known their readiness to assent
to the Six Power treaty allocating the
former German cables in the Pacific on
the assurances of conference leaders
that Italy later will be supported in her
claim to share in the cable lines for
merly controlled by Germany in the At
lantic Completion of this treaty di-
viding the Pacific lines between the
United States, Japan and the Neither
lands is expected within few days.
As viewed by some of the delegates
the cable treaty is virtually the only
agreement of the Washington conference
that is not in some degree affected by
the .og Jam OF which Shantung is the
center Should an agreement over the
former German leased territory fail 1t
is conceded generally that the effect
would be far reaching on the whole Far
Eastern situation, and through that
me ium in turn on the naval agreement
and the -Four Power Pacific treaty.
Think Differences Narrow.
Inst how rarrow has become the diff
ference remaining between the Japanese
and Chinese over Shantung Is not re-
vealed. but all outward signs tonight
indicated that only one or two points
Of the railroad tangie remained TO be
settled.
While the Japanese have made no
formal expression 1t Is understood they
are disposed to accept the deferred pay
nent plan of the latest compromise prof.
ect in place Of the loan on which they
have insisted heretofore. China on her
part is said to be ready to agree also
to deferred payments. although the term
FOR which her treasury notes are to run
Is another question.
That would leave undecided, in addi-
ton to the term of payment, the date
on which the road Is to be returned to
Chinese control and the degree of jap
anese participation in the control of the
line during the period of payment. The
Japanese have asked. and the proposal
supported by President Harding pro-
vides. that Japanese officials remain
during this period both in the traffic
and accounting departments.
The date suggested for return Of the
road is five years hence. when the first
treasury notes given by China would
fall due. while the Chinese proposals
have set the date three years
away ond have provided that the first
payments also would be made at that
time.
Failure Deemed Impossible.
In American quarters these points of
differences are regarded as so unin-
portant tina; failure Of settlement Is
IL H. understood TO have
been a message OF that character which
President Harding sent to the Chinese
Government yesterday through Minister
sze when the latter went to the White
House with Secretary HugncS.
Details of the White House conference
and what led up to IL were closely guard
ed to-day, but DR. SEE made known
that he visited the President Of his own
accord and not In response to sum-
mons from President Harding. He
would not discuss the Interview. except
10 say he had been much impressed By
The Presidents suggestions and had
cabied them TO Pckln.
At their meeting to-day the Japanese
and Chinese talked over adjustment OF
claims OF Chinese nationals growing out
of japanese occupation OF the Kiaochow
leasehold. The Japanese agreed that
their Government should give fair
hearing 10 all such claims and allow
those for which Justification was found.
The decision OF the drafting subcom-
'nittee to-day regarding Chinese radio
problems generally is expected to receive
the approval Of the Far Eastern COM
nittee at to-morrow's meeting. although
Il is possible that long discussion may
develop The subcommittee acted after
"a many sided debate. during which a
fruitless effort was made TO agree on n
substitute for the original wireless reso-
luton of December z, combining the
subgtanc, of that resolution with por-
tlonv ~ a half dozen other proposals