“PRIVATE TRANSACTION”

Sun (Auckland), Volume I, Issue 213, 28 November 1927, Page 9

“PRIVATE TRANSACTION”

MANCHURIAN RAIL LOAN AMERICAN VIEWPOINT By Cable. —Press Association.—Copyright WASHINGTON, Friday. The Secretary of State, Mr. F. B. Kellogg, says he is convinced that the proposed loan of £6,000,000 to the South Manchurian Railway by the banking firm of J. P. Morgan and Co. is a private matter, in which the United States Government has no particular interest, and therefore it does not disapprove the project. The State Department has published a cablegram of protest which it has received from Chinese financiers and business men, who stated that the Chinese people are alarmed *t the news of the loan for the railway, which is "an alien system on Chinese soil, for the purpose of the political exploitation of Manchuria.” , “We are strongly opposed to the supplying of financial help to Japan in order to carry out her desire upon our sovereignty there,” states the protest, “and we hope the United States Government and people will preserve the friendly relations between our countriesb y refusing participation in the proposed loan.” A previous message stated that, should the State Department decide to sanction the loan, it was understood that the Japanese Government would be informed that it must continue to resnect faithfully the open door policy in China, and to afford other nations equality of treatment on the railways as regards passenger and freight facilities. The loan money would be used for extending branch railways and for developing mining in Manchuria.’ —A. and N.Z.