The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-10-19
KEEPING UP
With
THE NE WIS
BY LUDWELL DENNY


Copyright, scripps-Howard Newspapers.
1929
XXTAsHINGTON, Oct. 19.-ReIa-
w BILE reports of q prospective
$40, 100000 Wall Street loan to the
South Manchurian railway, in
volving possible international polit-
ical consequences, have been re-
vived, coincident with the arrival
here of the new Japanese ambassa-
dor, Katsuji Debuchi.
Debuchi, formerly charge d'affairs
here and until recently deputy for
eign minister in Toxic will pay his
respects to Secretary Kellogg and
present his credentials to President
Colidge next year.
Evidences of close official friend
ship between Washington and To-
kio have been especially marked
since Japan sided with the United
States in the British American
cruiser disput which broke up the
Geneva naval conference.
This friendship has increased, il
anything, since the recent Secret
British-French naval agreement,
which CURLY was so condemned by
the Washington Government.
Nominally the loan project was
dropped as a result of public dis
favor in this country and China,
when it was discussed last year.
Actually, however, it is understood
the loan is only son ice" ready to
be brought out whenever eXpedient.
Kellogg, following provisional ne
gotiations between Japan and
Thomas Lamont of Morgan 81 Co.
last year in Toxic, said the
state department had no connection
wit hthe project, but had no OBJ
lection to it. After public criticism
had arisen, the department stated
it had not approved the proposal
which had not been presented to it
formally.
TINE department has a standing
4 request for American bankers
to submit to it all proposed foreign
loans, so it may express disapproval
if such loans appear to conflict
with the public interest. To avoid
official veto Of loan, bankers often
first discuss the matter with the
department informally and "of the
record"
1t is understood this is what hap
pened in the case of the Japanese
loan at the time Kellogg unof1cially
was favorable to it.
Reported revival Of the loan prof.
ect, and the belief that the state
department will not be unfriendly
to it at the proper time" is pro-
voking again the old opposition.
This opposition is led by certain
missionary liberal, and so-called
anti-imperialist groups, including
congressman and senators. 1t is
based on the fear that such a loan
would tend to commit America COM
mercially and automatically to al
legged japanese imperialism in
China.
These critics say that Japan,
through its south Manchurian rail-
way, is practically the dictator of
ManchWia," and that protection of
those railway rights has been and
is the constantly recurring excuse"
given by Japan for her decisive
military intervintion there.
THEY point to Japan's recent re-
i ported threat, preventing
young Chang, the NIanchurian ruler,
from coming to a full agreement
with the new Chinese Nationalist
government at Marking. The Ma
tionalist government has been rec
ognized by the United States, but
is in the midst of series of violent
disputes with Toxic over alleged
Japanese violations of Chinese SOW
ereignty.
The state department is watching
and not talking Washington dis
approves the continued Japanese
military occupation of Tsinan-Fu,
and would oppose further extension
of Japanese power over Manchuria.
The United States government never
has recognized a special status for
Manchuria, which under American
Chinese treaties is an integral part
of the indepedent Chinese republic.
Despite these disquieting factors,
there is no sign that the state de-
partment is alarmed by this FAR
eastern situation. On the contrary,
there are evidences of a deliberate
policy of official faith in Japan's
good intentions, intended perhaps as
the most effective American meth
DDS of encOl1ra zinc an anti-n1iIiter-