The New York herald., 1922-01-17
OPEN DOOR POLICY
DEFINED BY HUGHES
American Principle Is Against
Any Discriminatory Rights
in China.
LID LIFTED BY SECRETARY
Shantung Problem Is Being
Solved-Pekin Accepts Re-
cessiOn of Kiao-Chau.
LID LIFTED BY SECRETARY
Special Dispatch to THE NEW York Hra.LD

Special DisyatcI: TO THE NEW York HrnaII
New York Herald Bursau.
washington. ID. C., ian. 16.
Pressure which had been applied L
the Chinese and Japanese delegation
by the. Conference for the Limitation
OF Armament by holding up all con
sideration OF Far Eastern question.
until the Shantung problem had beer
disposed of was suddenly removed to-
day.
Without warning Secretary Hughe!
called the Far Eastern committee thi.
afternoon. No definite explanation o.
the change in program was given. II
is interpreted here as presaging earl,
settlement OF the Shantung railroad
question.
The developments in the conference
during the day were:
Resumption Of the meetings OF
the Far East committee,
Adoption by the Far Eastern
committee of the two Underwood
resolutions providing for a tariff
revision commission to meet at
Shanghai and increase Chinese
tariff rates under ceriair l!.,ita-
tons.
Presentation to the committee
by Secretary Hughes of the Amer
ican definition of the principle OF
the open door.
Receipt Of confidential instruc-
tions by both Japanese and Chi
nese delegations concerning the
Shantung controversy.
Final determination of the for
mula for defining Pacific regions
where Notifications shall not be
erected or where status quo win
continue delayed pending further
reference to home Governments.
Nothing was said at either Chinese o,
japanese headquarters In explanation OF
the Instructions received from Pekin anc
Toxic regarding tho Shantung problem
but resumption OF the work Of the Far
East Committee carries the suggestion
that both Governments are inclined tc
accept the formula for settlement
informally laid before the two dclega.
tons BY Secretary Hughes and Mr.. Bal
four This proposed compromise admits
the japanese plan 90 extend a loan "a
China for twelve years to enable China
TO purchase the Shantung railroad I,
contains provision that China may take
up the loan within three years. and de-
prives Japan OF control Of the road dur
ing this period.
The Chinese japanese conversations
were resumed to-day and disposed of the
question OF the recession 10 China by
Japan of the former lcaschold OF Kiao-
Chau. Heretofore China has held tina,
this leasehold should have reverted to
China automatically upou her entrance
into the European war. and to-day the
was abandoned by the Chi
nesc. and they accepted tho recession Of
the territory by Japan. thus closing this
part Of the controversy.
IL Is expected that when the Chinese
and Japanese delegates meet tomorrow
u will be for tho purpose OF taking 10
the question Of tho Shantung railroad.
In view Of the new instructions re-
cclved b. both delegations. there is op-
lnnlSH IN american circles tnat settle
ment Us in sight. II was well under
stood here that The japanese are dis
turbed by the movement in China TO
raise a popular loan OF s30.000,0O to
the road outright by China, on
The ground that It takes on the nature
Of an anti-Japanese crusade. The Chi
ncse reply to this that any failure to
Continued on Page Two.
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