THE FAR EAST.

Taranaki Daily News, 22 December 1921, Page 5

THE FAR EAST.

CHINA AND JAPAN. THE SHANTUNG PROBLEM. QUESTION OF FINANCE. By Telegraph.—Press Assn.—copyright. Washington, Dec. 19. It was semi-officially announced tonight that considerable progress had been made towards a settlement of the Shantung problem; indeed, the Chinese and Japanese hoped to reach' a conclusion, but though they sat late they were unable to do so. Comme.’jtmg oii the change of Government at Peking, Mr. Koo (head of the Chinese delegation) said it would not make any difference to the delegation, as the Foreign Minister in the late Cabinet was now acting-prime Minister. Official: At a meeting of the Chinese and Japanese delegates to-day the discussion centied around a proposal from the Japanese delegation to have certain offices of administration in the TsingtaoTsinanfu railway filled by Japanese nationals. The meeting adjourned. Asked to-night about the anti-Ameri-can demonstration in Japan, Admiral Kato said he never heard of the organisation responsible. He thought a great deal of the agitation was due to men wanting a livelihood rather than actuated by patriotism. With reference to Japan’s desire to finance the purchase of the Shantung railway, it has been suggested in influential quarters that she would use the present Four Power consortium for this purpose, which course is likely to be accepted by China.

American-Chinese circles are discussing to-night the effect the change of Government will have on the delegation here. The results may be summarised, first, the resignation of the President, Hsu Shih Chang, with Li yuan Lung as his successor; second, the selection of a strong man as Premier, working for a financial rehabilitation of China as well as unification; third, the acceptance of ian international consortium with the ; participation of the Chinese banking group, which may advance a loan to purchase the Shantung railway; fourth, the adoption of policies calculated to strengthen the hands of the delegates, with which may be coupled the necessity of placing their finances in a better condition. It is asserted that Chinese finances are so bad at present that some of the delegation are in arrears with their expenses and are meeting them out of their own pockets. Received Dec. 21, 11.50 p.m. Washington. Dec. 20.

Official: The Chinese and Japanese delegates discussed a plan for the payment in cash of China’s liabilities regarding the Shantung railway properties and also an alternative plan for payment in Chinese treasury notes, hav- , ing special reference to the question of the appointment by China of Japanese experts in the service of the TsingtaoTsinanfu railway, as proposed by the Japanese delegation. These questions involving points whereon it was found necessary for the Japanese delegation to consult the home Government, the meeting adjourned pending the receipt of instructions by the Japanese delegation from Tokio.