The Birmingham age-herald., 1922-01-27
DELEGATES ARE
 OPTIMISTIC OVER
 SHANTUNG| ISSUE
Chinese and Japanese Clear. ing Away Collateral Ques- tions-To Meet Formally
 Saturday Morning
By Associated Press

Washington, January 26.-The machinery of the Washington con ference virtually came to stand still today while the delegates await ed results from President Harding's move for a settlement of the Shan tung controversy.
 Optimism over the outcome of the Presidents efforts gained ground in every quarter. and the belief was unanimous that tho few remaining major issues of tho conference could well be delayed for examination in a clearer atmosphere after the most troublesome of all the far eastern problems is out of the way.
 Outwardly, the Shantung problem itself was in a waiting stage, too, although important moves were talk ing place behind the scenes in Pe- king, Tokio. and Washington The Japanese and Chinese announced they would not meet before Saturday, at the earliest, to consider formally the latest settlement proposal.
 Collateral Issues
 As if preparing for the announce nent of complete agreement, how ever, the pienipotentisries of the To- kio and Picking governments today cleared away the last remaining col- lateral Issues of the Shantung nego- tiations and agreed to meet Satur- day morning to begin the drafting of treaty. Only the central problem of the Tsing tao-Tsinanfu railroad, to which the compromise proposal sup ported by President Harding, Is di- rected, now remains unsettled
 The Shantung meeting and a ses- sion Of the drafting subcommittee at which the Chinese radio resolu- tion of December :. was reaffirmed after agreement on additional declar. ations had failed, constituted the sum of formal conference activities dur ing the day. The December reso- lution provides for cancellation of un- authorized wireless concessions in China, while the proposed additions would have directed future develop ment of the Chinese wireless system. 1t was decided to enter these rejected as representing individual viewpoints
 German Cables Treaty
 Meantime another conference draw back disappeared when the Italians made known their readiness to as- sent to the six-power treaty allocat- ing the former German cables in the Pacific on the assurances of confer ence leaders that Italy later would be supported in her claim to a share in the cable lines formerly controlled by Germany in the Atlantic Com pletion of this treaty. dividing the Pacific lines between the United States, Japan and The Netherlands is expected within few days.
 As viewed by some of the dele gates the cable treaty Is virtually tho only agreement of the Washing ton conference that is not in some dc gree affected by the log jam of which Shantung Is the center. Should an agreement over the former Ger man leased territory fail, it is con- ceded generally that the effect would 1 be fnr-reaching on the whole far eastern situation, and through that n edium, in turn, on the naval agree ment and the four-power Pacific treaty.
 Few Points Unsettled
 Just how narrow has become the difference remaining between the Japanese and Chinese over Shantung ! Is not revealed, but all outward signs tonight indicated that only one or two points of the railroad tangle re- mained to be settled.
 While the Japanese have made no formal expression, 1t is understood they are disposed to accept the de- fcrred payment plan of the last com pr ornise project in place of the loan on which they have insisted hereto fore. China, on her part, is said to be ready to agree also to the de- ferred payments, although the term for which her treasury notes are to run is another question.