CHINA'S CABINET CRISIS.

Auckland Star, Volume LII, Issue 303, 21 December 1921, Page 5

CHINA'S CABINET CRISIS.

PRESIDENT MAY RESIGN. NO CHANGE IN POLICY. ('By Cable.—Press Association.— Owitgtit.) WASHINGTON, December 20. Commenting on the change of Government at Pekinsr, Dr. Wellington Koo, one of the Chinese delegates to the Washington Conference, said it would not make any difference to the Chinese delegation, as the Foreign Minister in the late Cabinet (Wu Yen is now acting Prime Minister. Dr. Koo added that he hoped the change would lead to the unification of China. Chinese circle's in Washington discussed to-night the effect of the change of Government. The results predicted may be summarised as follow: First, the resignation of the 'President (flsu Shi Chang) and the appointment of Li Yuan Hung as successor; second, the selection of a. strong man as Prime Minister to work for the financial rehabilitation of China as well as unification; third, acceptance of the international consortium, with the participation of a 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 at Washington, with which may be coupled the necessity of placing their finances in a better condition. tt is asserted that Chinese finances arc so bad at present that some of the delegation are in arrears with their expenses, and are meeting the same out of their own pockets. It. was semi-officially announced to-night that considerable progress had been made toward a settlement of the Shantung problem. Indeed, both the Chinese and Japanese delegates hoped to reach a conclusion, but though they sat late they were unable to do co. An official communique states that at the meeting of Chinese and Japanese delegates to-day the discussion revolved around a proposal from the Japanese delegation to have certain offices of the administration of the Tsingtao-Tsinanfu railway filled toy Japanese nationals. The meeting was adjourned. With reference to Japan's desire to finance China's purchase of the Shantung railway, it has been suggested in influential quarters that slit> should use the present four-Power consortium for the purpose, which course is likely to l>? accepted by China.— (A. and X.Z. Special Representative.)