THE EAR EAST.

Press, Volume LVII, Issue 17292, 2 November 1921, Page 7

THE EAR EAST.

PROBLEM OF SHANTUNG. Attitude of china. (By Cable—Press Association—Copyright.) (Australian and K.Z. Cable Association,) PEKING, October 31. , It is announced that China's fundamental attitude regarding Shantung is still the same as it was a year ago, when the Chinese Government cabled to its League of Nations representatives the following views, which tho Government now publishes for the first time:— 1. China will take back the entire leased territory, making Tsing-tao an open port, governed, by a Chinese administrative bureau. 2. China will not recognise forcible purchases of land by Japanese since the latter's military occupation. 3. All former German Government property in Tsing-tao will be controlled by the Chinese Maritime Customs, with the exception of the fortifications, which the Chinese Government will control. The Shantung salt fields must be returned to China. 4. The Tsi-nan-fu and Shun-tes-fu, and the Kaomi , and Hsu-cho-fu railroads, will be managed by consortiums, and the Tsing-tao and Tsi-nan-fu main line will be operated by China. The railway shares belonging to the German Government will be equally divided between China and Japan. 5. All the mines along the former German railways will be conducted by joint Chinese-Japanese enterprises, ultimately becoming absolutely Chinese. 6. The troops will be withdrawn from Shantung immediately. 7. The Tsing-tao-Shanghai and Tsing-tao-Chefoo cables must be restored to China. 8. Japan must waive all rights to privileges formerly enjoyed by the Germans through the Sino-German treaties, except where a mutual agreement is reached. LONDON, October 31. Mr Austen Chamberlain, replying to a question in the House of Commons, said he was not aware of any intention on the part of Japan to force on China o settlement of the Shantung question before the meeting of the Washington Conference. CHINA'S CHAOTIC FINANCES. (Received November Ist, 10.40 p.m.) NEW YORK, October 31. Tho "Chicago Tribune's" Peking correspondent says a financial crisis of an acute nature faces the Peking Government, whose unsecured loans total 376,000,000 dollars, of which 170,000,000 dollars represent Japanese advances, and there ia no means of paying Me debts. American loans are falling due. It is believed Japan, will revive the agitation'for the appointment of an International Debt Commission to China. This matter may come before the Washington Conference.

Following the failure of Germany b compliance with the Japanese ultimatum of August 15th, 1914, "to deliver on a date not later than September 15th, to the Imperial Japanese authorities, without, condition or compensation, the entire leased* territory of Kiao-thau, with a view to the eventual restoration of the same to China," Japanese troops, together with a fcmall British contingent, took possession of the port and occupied the territory traversed by the German railway. On the following January the Japanese Government presented to Peking what have, como to bo known as tine "Twenty-ona Demands." China at* the time had no course but to accept what was virtually an ultimatum, and a treaty was accordingly signed in May, 1915, under which Japan obtained from; China the transference of all mining and railway privileges hitherto enjoyed by tlhe Germans in Shantung. The same agreement also conceded to Japan exclusive mining rights in Eastern Mongolia, including the right to settle in. the province the extension of the Port Arthur lease to 99 years; joint control over certain industrial works m which, japan was financially interested; ana other privileges. The "Shantung clause of tlhe 1916 Treaty reads : (1) China consents to all the arrangements that may be made in the Treaty of Peace between Japan and Germany concerning the disposal of the rights, advantages, and concessions possessed, by the latter vis-a-vis China in regard to the Province of Shantung, in virtue of treaty or agreements or otherwise. (2) China shall not lease to any Power any portion of the Province of Shantung or any part of the eea coast thereof or any island along such coast. (3) In building a railway connecting Chefoot or Lungkou with the Tsingtau-Tsinart. line China, shall apply to Japanese capitalists for tho necessary loan, provided that Germany relinquish her rights regarding the Chefoo-Weihsein Railway. (4) China shall open more trade niarta in the Shantung Province. The Kiao-chau clause of the 1915 Treaty reads:

Japan declares that if, on the conclusion of the present war, Japan be given freo disposal of Kiao-ehau she will ba ready to return it to China subject to certain conditions, of which the following aro principal ones: (a) Kiac-cnau Bay to be opened entirely as a commercial port; (b) a Japanese' concession to be established in a locality to be designated by Japan; (c) also a general international settlement to be, established if required by tike Bowers; (d) an arrangement to be made between the Governments of Japan and China regarding the dispersal of the German public structures and properties.