THE FAR EAST.

Taranaki Daily News, 17 January 1922, Page 5

THE FAR EAST.

CHINA’S DIGNITY HURT. JAPAN STANDS FIRM. VIEWS UNCHANGED.. By Telegraph.—Press Assn.—‘Copyright. Washington, Jan. 14. Conference circles to-day took a rosier view of the Shantung question, following the decision to open Port Tsingtao. The Chinese delegation received cables from Pekin asking for clarification of points in Messrs. Hughes and Balfour’s proposals. Mr. Wang, in a statement reviewing the twenty-one demands, pointed out that the United States had protested to China and Japan against possible infringement o-f treaty rights caused thereby. China, at the conclusion of the negotiations, disclaimed any responsibility for violation of obligations of other Powers.

Mr. Wang declares that the demands, read in their true light, reduce China to a vassal State and deprive her of the rights of self-develop-ment and preservation. They also, he says, affect other Powers and give Japan such a priviliged position that no equality of opportunity will be possible.

It is understood that Japan has restored, the German leasehold of Kaiochau to China. No meeting of the Far Eastern Committee will take place until the Shantung matter is settled or thereabouts, as it is not wanted to complicate matters.

It is officially stated that the Chinese and Japanese delegations considered the question of the transfer of the administration of the former German leased territory at Kaioehau and the surrounding 50-kilometre zone and adjourned. The Japanese delegates deny the rumor that they received instructions from Tokio to accede to the Chinese conditions regarding Shantung. There is nothing to lead them to suppose the Japanese Government have receded from their position or are prepares to make further concessions.

Conference circles are of opinion that the Chinese demand for consideration of the twenty-one demands will be met with a suggestion that the matter is in the same category as Shantung, requiring negotiations between the two nations, and is not a fit subject for deliberations at a full conference.

It should be pointed out taat several objectionable features of the demands in Chinese eyes have already been removed by the action the Far Eastern Committee has taken towards the Root resolutions, to which Japan is a party. There is reason to believe that Japan’s view is unchanged, that the demands are outside the agenda unless the whole question of Chinese treaties, agreements, contracts, and commercial arrangements made with other Powers are to be considered also. Obviously no nation, not even the United States, wants that.—Special to Australian Press

PROTRACTED NEGOTIATIONS. SIGNS OF IRRITATION. Received Jan. 16, 5.5 p.m. Washington, Jan. 10. Increasing signs of irritation in Conference circles are observable over the protracted nature of the Shantung negotiations. Nobody believes China and Japan have really been engaged all this time in -working out subsidiary details, a large part of which were previously on the point of settlement. It is assumed that bargaining is going on directly between Tokio and Pekm. There is a possibility of Japanese halting progress until the Chinese New Year, in order to see whether the Chinese banks are able to meet all the committments.

Far Eastern cables indicate that a severe financial upset in China is imminent, necessitating immediate flotation of a loan to tide over the difficulties. Already an effort to float such a loan internally has failed. Japan therefore may think it worth risking delaying the Conference on the chance that she will be called upon to finance China with a big loan, in which the Shantung issue will be involved. Meanwhile .it cannot be said that the" Chinese delegations here are acting accommodatingly. Mr. Wang’s attitude and public statements are not calculated to inspire Japan with the spirit of compromise, while unofficial Chinese organisations never cease attacking Japanese acts and motives, encouragea tnerero by declarations of a certain group of Sena-' tors that the Shantung question must be settled to the satisfaction of China .before any treaties flowing from the Conference can bo ratified.—‘Special to Australian Press Assn.