THE CHINESE SITUATION.

Lyttelton Times, Volume CVI, Issue 12560, 23 July 1901, Page 4

THE CHINESE SITUATION.

The Foreign Office, to judge from Lord Cranborne’s utterance in the House of Commons, finds a good deal more cause for gratification in recent Chinese dewelopmentg than do the general public. If Great Britain’s lead has been followed so persistently in the Far East, we may reasonably ask how it comes about that six months have been spent in haggling ever the indemnity. Even tho Under-Secretary for Foreign Affairs cannot regard the position as altogether flattering to British diplomacy. It is now some three months tiince the amount of the indemnity to be paid was definitely decided, yet it seems impossible for the Powers to agree hew the liability is to- be met or what revenues are to be pledged as security for the interest. China has been condemned to pay four hundred and fifty million taels, and in spite of Lord Cranborne’s assertion, the combined protests of Britain anil America could not induce the Powers to reduce the amount. Russia, of course, would be glad to see the sum charg-ed against the -maritime Customs, and innocently suggested an increase of 10 per cent , in the tariff. Even the British Foreign Office could not consent to such a gigantic robbery of British and American traders, in whose hands is the bulk of China’s foreign commerce. This was the position in May, when Lord Lansdowne declared that “we should not be justified in allowing British trade to be made a milch cow for the purpose of facilitating the payment of these large indemnities.” The second suggestion; as we explained some weeks ago, was that China should raise the whole amount by loan guaranteed jointly by all the interested Powers. Lord Lansdowne’s objection' to ,that course was that Britain would not be justified in pledging her credit, which stood higher than that of any other Pow r er, for an indemnity of which she would receive something less than one-ninth. The further suggestion that each power should guarantee the amount of its own share of the indemnity was equally untenable, because the default of China would inevitably invite the seizure of territory. Sir Ernest Satow was instructed to propose as a compromise that China should give to each Power bends at their face value to the amount of its demand, certain sources of revenue being assigned entirely to interest and sinkingfund and to be placed under the control of an international Board. In the event of interference becoming necessary, the Concert would again act as a whole. We are led to suppose that this compromise has the support of America, Germany and Japan, yet there is no sign of relief fromthe deadlock. It would be idle to lay the whole blame for the impasse at the door of the British Foreign Office, which really does seem to have arrived at a tardy recognition of the fact that Britain has immense commercial interests in China. Wo may ■be permitted to wonder at the silence of the German Emperor, who seems just now to be overcome by disappointment at the failure of his high hopes, and to have lost all interest in Chinese affair’s since Count von Waldersee’s recall. There are one or two recent incidents which need explaining. The “punitive expeditions,” we understand, have been abandoned and military.

■operations generally have been suspended, yet there is no word of the withdrawal of the Indian troops from Tientsin. Lord: Lansdowne announced on May 21 that he was not prepared to continue the military occupation of Chi-li province, yet we were told a month ago that further drafts were to be ordered to China from India immediately. The Tientsin siding incident still awaits a settlement, and Russia still continues her “ temporary ” occupation of Manchuria. Newspaper correspondents in the Far East alternately anticipate the early return of the Court to Pekin and the establishment of a new capital in the interior. We know surprisingly little of the whole business after all.