Evening star., 1927-11-30
PANESE DEFEND
MANCHUR|AN LOAN
Marshal Chang's Aide Attack
ed for Statement Chinese
Oppose Project.
BY the Associated Press.

| by tHe AEsOcldteu FreSS.
PEKING, November 80.-Repercus.
sions were heard in japanese circles
here today to the statement Of Yang
Yu-Ting, chief of staff of Marshal
Chang Tso-Lin, attacking the Japa.
nese record in Manchuria and stating
that his government and the people
Of China bitterly opposed" the pro.
posed loan by ]. P. Morgan & Co. to
the Japanese South Manchurian Rail.
way.
The Japanese Minister to the Pc.
king government, Kenkichi Yoshi.
zawa, told correspondents that he had
sent a query to Yang Yu-Ting as to
whether he really made the state.
ments reported in the papers.
If Yang Yu-Ting confirms his quot.
ed statement there is no alternative
but further steps, Yoshizawa said. He
characterized the statement as ''as-
founding: part If it harmful to good
Chinese-Japanese relations; part of it
at variance from the facts"
Paper Attacks Statement.
The North China Standard, which
is japanese owned and published here,
made an editorial attack on the state
ment, saying:
Yang Yu-Ting. speaking for the
dictator of Northern China, has made
a deliberate and cruel attempt to de-
prive 20.000.000 of Chinese in Man
churia of the benefits to be derived
from an American loan.
He virtually told the United States,
through newspaper correspondents,
that loan to Japan would be a
provocative act for which the Amer
lean Nation would be held responsible.
BY this gesture he hoped to play upon
Americas natural shyness of interna-
tional complications and to prod Wash.
ington into preventing the Morgan
loan"
The paper declared that Chinese
migration ''to Manchuria and Japanese
protection" was the most monumental
migratory movement ever recorded,
putting the settlement of the Amer
lean prairies in the background by
comparison"
The paper stated that Manchuria
had absorbed one million Chinese in
the past year, most of them destitute
and escaping from hardships in Chihli
and Shantung.
Calls Statement Astounding.
The Japanese Minister said Yang-Yu.
Tings statement was Astounding If
it was true that it emanated from the
mouth Of person in such a respon.
sible position" He said Yang's asser.
tion that the Chinese were not even
negotiating with Japan in regard to
Manchuria was at variance with the
facts. The negotiations, he declared.
were actually in progress between
himself and Yang Yu-Ting and he was
unable to understand the basis for the
latter's claims.
Yoshizawa was unable to give de-
tails, but said: 81 can state frankly
that the subjects discussed were mere
ly the construction of a few railroad
lines and few local questions remain
ing unsettled between the japanese
consul general and the Chinese au.
thorities at Mukden, Manchuria.
There is absolutely no question Of
the 81 demands. There is nothing ag.
gressive, territorial or otherwise, sim.
ply economic development"
He denied the Chinese charge that
the japanese would divert the pro.
posed loan to domestic politics, and
added: Successive Japanese cabinets
have followed a policy of promotion
Of common welfare of the Chinese and
Japanese residents Of Manchuria
seeking only economic exploitation. We
have spent tremendous sums in Man.
churia since the Russian War to the
profit Of the Chinese people them.
selves"