CHINESE BANKERS’ ULTIMATUM

Evening Star, Issue 19952, 23 August 1928, Page 5

CHINESE BANKERS’ ULTIMATUM

" NO DISBANDMENT) HQ LOANS ” SHANGHAI, July 12. \ Nationalist spokesman to-dav stated that British, American, and German financial groups were all ottering loans to China tor_ constructive purposes, a condition being that the material should be purchased in their respective countries. . The Nationalists claim that tins is perfectly sound business, as limy believe the war is now over, except in the remote provinces, the leaders heincT agreed as to tlio iutility ol lurther lighting. , , „ .. The. Christian General I'eng inhsiang’s attitude is doubtful, as he wants the control of China, in which case there is always the possible danger of Bolshevism, as Feng has been to Moscow. Feng, however, states that he has finished with Bolshevism, and insists that ho was responsible lor the dismissal of Borodin. The Nationalists havc_ the most brilliant financier in China in T. V. Soong, who has now gone to Peking with an ultimatum from the Shanghai hankers to the effect that if there is no disbandment ol the armies there will bo no loans. The Chinese bankers in Shanghai control all the money in China, and they arc till sceptical ui the promises ol the militarists to disband. If Soong fails in his mission, with the money in the protection of the foreign settlements they will then refuse to contribute further funds, and so force real constructive legislative measures. In consequence of this attitude, the Nationalists now announce the bandment of 2U per cent, of the first Army within one month, the men to bo used in road making and dredging canals. The bankers estimate that China’s army to-day numbers two millions, and demand its reduction to an efficient force of half a million. It is admitted that the whole of China cannot be unified at present, as Szechuan remains independent, and an expeditionary force will he required to proceed thither to reduce Governor Yang-sen, who is trying to boycott British shipping. It appears that Yang-sen is a private shareholder in shipping companies sailing under the American, Italian, and French flags, which carry his goods free Mid allow his troops transport, wri'eas the British vessels, adhering to the strict letter of the contraband law, refuse—hence the proposed boycott.