SHANTUNG CONTROVERSY.

New Zealand Herald, Volume LVIII, Issue 17966, 16 December 1921, Page 7

SHANTUNG CONTROVERSY.

OWNERSHIP OF RAILWAY.

JAPAN OFFERS RESTORATION.

THREE STIPULATIONS MADE. By T*l?gra,ph—Press Association—Copyright. (Received 10.15 p.m.) A.andN.Z. WASHINGTON, Dec. 14. It, is officially announced that the Far Eastern Committee to-day took up the question of spheres of influence and special interests in China. The chairman stated that in view of the situation in regard to the matter of raval armaments it seemed advisable to izive an opportunity for necessary conversations i and discussions, also for meetinss of the subcommittee on naval armaments in order that an agreement on this subject be reached at the earliest possible moment. The Chinese and Japanese de'egatkms were also engaged in the Shantung conversations, and in order that the greatest progress should be made the chairman suggested that the Far Es.stern Committee should have a short session and adjourn. This was unanimously approved.

The special representative of the Australian and New Zealand Press Association states that the possibility was mentioned to-day that Mr. C. E. Hughes and Mr. A. J. Balfour would be again called into the conference between the Chinese and Japanese delegates to smooth out sharp differences of opinion regarding the Shantung railway.

It was hinted that the whole question involves all sorts of considerations, economic and political, involving the national honour of hoth nations. There is, however, ©very hope that the conflictintf views will bo adjusted in the present atmosphere of Chi no-Japanese good feelintfIt is considered unlikely that the matter of the Chinese consortium and Italy's participation therein will come up at this conference. Later to-day it was reported that considerable progress had been made in the Shantung conversations. It is declared that Japan has agreed in principle to the return of the railway subject to three conditions, first, thai the financial terms offered by China be satisfactory; second that Japan retains some financial interest in the line; third, that Tokio must confirm the terms.