Evening star., 1928-12-09
A Dawes Plan for China?

! erlmbling. Its problems grow more
pressing and dangerous each day. ana
vet the officials waste their time on talk
and paper plans. They attribute their
| misfortunes to foreign imperialism"
and thus try to evade responsibility
! What is indispensable is to restore the
credit of the Chinese government and
| to renew confidence in its leaders. Both
are entirely wanting and no plan yet
advanced by the Nationalist seems CAL
! culated to improve r'"tters. On the
contrary. all their policies seem designed
to make it impossible to apply the only
possible remedies.
The first need of China is the recon-
struction of it's existing railroads and
the building of new ones, combined with
| the building of highways and dlSband-
ment of the army. This program would
afford employment for the soldiers and
give them an alternative to banditry.
Some Problems Ahead.
Hundreds of millions would have to
be paid for these public works and
flood control. A low estimate would be
$500 900 ,000 1t would take at least
500 100000 to give $50 to each soldier
and pay his way home. This would
have to be paid at once The famine
stricken regions should be fed through
the Winter. Something should be given
to the teachers and civil servants. The
prisoners and police should be taken
care of If order is to be restored. Some
of the shorter railroad lines would re-
quire at least $20,000,000 each to Nut
them in running order, not counting
back wages.
Where are all these hundreds of
millions to come from?
China today owes about $500. 1000,
this including loans, to which must be
added the unpaid interest. the floating
debt and several hundred millions in
forced loans from Chinese bankers and
chambers of commerce. Perhaps the
total is about $1,000, 100000. The pres
ent revenues are insufficient to pay the
current expenses of the government, in
cluding the interest on loans secured on
the customs and salt monopoly. The
receipts from the new tariff and other
sources will mot balance the budget.
The Chinese government is bankrupt.
Past defaults have wiped out its credit.
Neither foreigners nor Chinese will
lend more.
Bankers are Cautious.
The main GRAND of Mr.. Sun Fo, son
of Sun Yst-Sen, the George Washing
ton" of China. former minister Of
finance and now minister of railways,
during his recent visit to the United
States, was to endeavor to borrow these
necessary sums from American bankers.
He says that he found them interested,
but cautious" e
The bankers told him their terms.
The outstanding debts of the Chinese
government must all be paid or founded
before any more leans would be ad-
vanced This means that money must
be provided to pay the bills of Ameri-
cans and other foreigners. the huge
floating debt and the arrears of wages
and salaries. No one knows the amount
of these. Compromises probably will
have to be reached on the salaries and
wages, and a commission will have to
pass upon foreign claims.
The corruption and embezzlements OF
the Chinese officials of all classes make
foreigners unwilling to lend except upon
definite security where the receipts, like
these from the customs and salt mo-
nopoly, are collected by foreign officials
in the Chinese service and deposited
in foreign banks. Chinese officials and
banks cannot resist pressure from gen.
erals and other high officials who need
the funds.
But one of the main objects of the
NationalistS is to get rid of these for
eign officials and replace them by Ch:.