Evening star., 1935-03-08
LOAN TO CHINA
IS HELD REMOTE
U. S. State Department
Promises Britain to
Consider Proposal.

The prospect of giving China finan-
eial relief by the consortium OF
the interested powers, America, Great
Britain, France and Japan is as re-
mote as ever. despite the British in
sistence in Washington that "scme-
thing must be done about China"
After a long conversation with the
British Ambassador Sir Ronald Lind
say. the Undersecretary Of State. Will
liam Phillips. stated that the United
States Government will give its
sympathetic consideration" to a plan
to save China from financial disaster
There is no question, for the time
being. of advancing any actual cash
to the Marking government. The
matter of arranging such an eventual
loan is full of 'ifs and whens" and is
left entirely in the hands of the
British government which has taken
the initiative to set in motion the
international machinery to prevent
China from falling into the hands of
the japanese bankers, supported by
the government.
Britain Seeks Co. Operation.
The British idea is to support China
with the cooperation OF all the in
terested powers
The State Department has not been
able to ascertain whether the Japa-
nese government is willing to join in
any action contemplated by the
British.
Oficially, the Toxic government has
not yet made up its mind as to what
attitude it may take when Great
Britain approaches it with a definite
suggestion for help.
But Toxic has adopted its we'll
known tactics of allowing its highest
officials, such as the vice minister for
foreign affairs and other high-ranking
officers, to express their views.
Loan Would Be Mistake.
These personal" views, which are
expressed freely, point out that under
the present circumstances. 1t would
be a mistake to have an international
loan advanced to the Chinese Re-
public. This should be done by a
single poWer-that is to say, Japan.
But, since the Japanese have indi-
Gated to Nanking that loan must
provide for certain ''rearrangements
in the present administration of
China, such as the replacement of
European and American advisers and
officials by Japanese and the COM
plete cessation of all anti-JapaneSe
agitation. the Chinese are trying des-
perately to induce the other inter-
ested powers to come to their assist
ance in order to prevent becoming an
economic dependent of Japan.
Britain Is Alarmed.
The British government which has
a far greater financial interest in
China than any other European
country is alarmed at this prospect
and has started conversations with
Paris and Washington.
1t Is realized, however. that it will
be difficult to do anything without
Japans participation and. despite
the conversations between London
and Toxic. there is considerable
doubt whether this participation will
be forthcoming.
On the other hand China has her
back against the wall. She needs
financial relief Immediately. If the
Western powers lose much time in
sympathetic consideration" without
sending actual money to Nanking, it
is in the cards that the Chinese gov
eminent will be compelled to accept
. japanese loan.
The Toxic government is playing
up this situation for all it is worth.
1t is believed that while not refusing
bluntly to cooperate with the other
powers, it will adopt dilitory policy,
which will delay the action of the
consortium and force China to ac-
cept the japanese loan with all the
tags attached to it. c. B.