CHINA AND JAPAN AGREE.

Oamaru Mail, Volume XXXVII, Issue 10241, 2 September 1909, Page 4

CHINA AND JAPAN AGREE.

A MODUS VIVENDI

[By Electric Telegraph- Copyright.]

(Per Press Association.}

Received September 2, at 8.25 a. Pekin, September 1. The Manchurian negotiations have concluded, and China agrees-not to construct the Hsin-min-tun-Fakumen railway without consulting Japan, and also agrees that tho latter is entitled to work the JTusbun-Yentai mines.

[The long-delayed negotiations between Japan and China for the settlement of many difficult problems m Manchuria —now the Three Eastern 1 rovinces of China —have concluded satisfactorily for Japan.- The agreement mentioned in our cable distinctly recognises the right of Japan to exploit such natural resources as the Fushiin-Yentai mines. The famous Fakumen railway, which has been before the British public for so long, remains exactly where it was —in the air, where it will not menace Jlie Japanese-owned South Manchurian railway. According to Chuiese vernacular journals, the Japanese have now entire control over two great forces in Manchuria, namely, transportation and finance. The South Manchurian Railway has diverted to it all the transport business from the Liao River by water, and the Yokohama Specie Bank, which has been opened several years, reigns supreme in the financial sphere. As the bank has heard of plans being proposed to open banks by Chinese and other foreign capitalists it has made new regulations, under which nothing is charged on exchange for drafts to and from Talienwan." It has also raised its rate of interest to 7 per cent, per annum and hopes by offering these advantages that it will be able to maintain its supremacy in Manchuria. It is freely stated that the Japanese seek to obtain unfair advantages over others by solely giving first opportunities ot merchandise to Japanese; this causes vexations and expensive delays to merchants of other nationalities. Chinese reports in referring to the matter emphasise the injustice thus done to foreign and Chinese merchants. The I following extract from Eastern files to-day may be interesting: Ihe London correspondent of the Osaka Asahi says it is reported from New York that the American Government has informed the Chinese Government that it intends to lodge . a protest against the proposal to treat the cities and towns along the Chinese Eastern Railway as coining within the scope of the Rnsso-Chinesc Railway Treaty. This is ' a result of the report that China has given the Russian Railway authorities the right to reject decisions made by the International Committee which lias been appointed to improve the municipal system. The American Government holds that this is a dangerous step and fears it will cause •Japan to make similar claim in SouthManchuria. It is said that Great Britain holds the same views as America. A later telegram to the Osaka Jiji says that Great Britain will support the American protest against the RussoG'hinesc Agreement with regard to the urban districts along the Chinese | Eastern Railway on the ground that it i establishes extra territoriality in Manchuria and gives sovereign powers to Russia. The same message quotes the Novoe Yremya as urging Russia to enter into an agreement with America with regard to Far Eastern questions.]