DEVELOPMENT OF CHINA.

New Zealand Herald, Volume LXVIII, Issue 20767, 9 January 1931, Page 11

DEVELOPMENT OF CHINA.

SILVER LOAN PROPOSAL.

SUGGESTED WHEAT MARKET. SENATE COMMITTEE'S REPORT. By Telegraph—Press Association—Copyright. (Received January ft, 5.5 p.m.) NEW YOKK. Jan. 7. The Washington correspondent of the New York Times reports that a scheme having the double object of bringing peace -to ' China and initiating an international effort to overcome the world economic depression, will be advocated by a special sub-committee of the foreign relations committeo of the Senate.

This body, after years of study, will, in its report, advocate heavy loans of silver to the Chinese National Government, and the development of a comprehensive plan for public improvements in China, under strict international supervision.

The plan would involve co-operation with Canada, under a project recently advocated by the Federal Minister of Trade, Mr. H. H. Stevens, and with the British, French, Japanese and other interested Governments, on the use of silver and its exchange value with gold, and the suspension of tho practice of melting silver money and the sale of silver money in India. It is reported that a plan for a loan to China of £200.000.000 is being discussed in London and New York, and that American bankers are closelv interested.

The value of the plan suggested by the Canadian Prime Minister, Mr. R. B. Bennett, for the sale of wheat to China is questioned in Washington, since it is known that the Chinese people are not partial to the use of wheat. Some members of the Senate, notably Mr. Iv Pittman (Democrat, Nevada), insist that under the proposed arrangement by which the Chinese armies would be disbanded and set to work on public improvements, there would be a market for American surplus wheat in China.

Mr. Pittman advocates the advancement of the £50.000,000 worth of silver now in the United States Treasury to China, for recoinage into small Chinese currency.