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quired a month to adjust between the various governments concerned. The program agreed upon by the six governments was submitted to the Chinese government early in March and refused by the Chinese. At the time of writing, however, negotiations are still in progress and it is to be hoped that a mutually satisfactory arrangement will soon be reached.


Since Mr. Straight completed this article, the American Banking Group has definitely withdrawn from further participation in the Six Power loan negotiations, due to President's Wilson's refusal to continue the moral support of the Government. The following are the official explanations of the attitude of the Administration and of the American group respectively. President Wilson gave this statement to the press:

We are informed that, at the request of the last administration, a certain group of American bankers undertook to participate in the loan now desired by the government of China (approximately $125,000,000). Our government wished American bankers to participate along with the bankers of other nations, because it desired that the good will of the United States toward China should be exhibited in this practical way; that American capital should have access to that great country and that the United States should be in a position to share with the other powers any political responsibilities that might be associated with the development of the foreign relations of China in connection with their industrial and commercial enterprises. The present administration has been asked by this group of bankers whether it would also request them to participate in the loan.

The representatives of the bankers through whom the administration was approached declared that they would continue to seek their share of the loan under the proposed agreements only if expressly requested to do so by the government. The administration has declined to make such request because it did not approve the conditions of the loan or the implications of responsibility on its own part which it was plainly told would be involved in the request.

The conditions of the loan seem to us to touch very nearly the administrative independence of China itself; and this administration does not feel that it ought, even by implication, to be a party to those conditions. The responsibility on its part which would be implied in requesting the bankers to undertake the loan might conceivably go the length in some unhappy contingence of forcible

interference in the financial, and even the political affairs of that great Oriental state, just now awakening to a consciousness of its power and of its obligations to its people.

The conditions include not only the pledging of particular taxes, some of them antiquated and burdensome, to secure the loan, but also the administration of these taxes by foreign agents. The responsibility on the part of our government implied in the encouragement of a loan thus secured and administered is plain enough and is obnoxious to the principles upon which the government of our people rests.

The government of the United States is not only willing, but earnestly desirous of aiding the great Chinese people in every way that is consistent with their untrammeled development and its own immemorial principles. The awakening of the people of China to a consciousness of their possibilities under free government is the most significant if not the most momentous event of our generation.

With this movement and aspiration the American people are in profound sympathy. They certainly wish to participate and participate very generously, in opening to the Chinese and to the use of the world the almost untouched and perhaps unrivalled resources of China.

The government of the United States is earnestly desirous of promoting the most extended and intimate trade relationships between this country and the Chinese republic. The present administration will urge and support the legislative measures necessary to give American merchants, manufacturers, contractors and engineers, the banking facilities which they now lack and without which they are at a serious disadvantage as compared with their industrial and commercial rivals. This is its duty. This is the main material interest of its citizens in the development of China. Our interests are those of the open door-a door of friendship and mutual advantage. This is the only door we care to enter.

The following was handed to the press by the American group, March 19:

The American Group, consisting of J. P. Morgan & Co., Kuhn, Loeb & Co., The First National Bank and the National City Bank, was formed in the spring of 1909, upon the expressed desire of the Department of State that a financial group be organized to take up the participation to which American capital was entitled in the Hukuang Railway Loan Agreement, then under negotiation by the British, French and German banking groups.

This group thus became interested in Chinese Loan matters, not primarily for its own profit, but for purposes indicated by President Taft and Secretary Knox. As stated in President Taft's message to Congress of December 1909, these purposes, in effect, called for the co-operation of the bankers as the "indispensable instrumentality" which the American Government needed to enable it

"to carry out a practical and real application of the open door policy.' The Department of State considered that American cooperation with the Banking Groups of the several great powers enabled the United States to exercise a practical voice in China's affairs and constituted the best guarantee for the preservation of China's integrity.

In pursuance of the policy so advocated, the American Group, with the Administration's approval, entered into an agreement with the British, French and German Groups for the purpose of rendering financial assistance to China. In February 1912 these four groups at the request of their respective Governments and with the consent of the Chinese Government, admitted Russian and Japanese financial groups to the negotiations for the Reorganization Loan, thus constituting what has since been known as the Six Power Group.

Following the revolution and despite the fact that the authority of the new Republic had not been generally accepted, the American Group joined with the other groups in making to the Provisional Government substantial advances to enable it more firmly to establish its authority and to restore normal conditions throughout the country.

Meanwhile there had been in negotiation, during a period of many months, a loan agreement which, in its general terms, appeared last month to meet the approval of the Six Governments, of their banking groups, and the Chinese Government, and to be ready for signature.

These terms were intended to cover two points. The first was to enable the Chinese Government to reorganize its administration on an effective modern basis, to pay off its large outstanding debts and build up Chinese credit. The second was to protect the interests of American and European investors. For such protection, in the judgment of the Governments and the Groups, the only method was to ensure, despite any possible recurrence of political unrest in China, the proper expenditure of the funds loaned to China and to safe-guard the handling of the revenues pledged for principle and interest of the bonds.

As announced in the statement given to the press yesterday the present Administration at Washington, with a desire to be of assistance to China and to promote American interests in the Far East, has decided that these purposes may better be served by the adoption of a different and independent policy. As the American Group had been ready to serve the Administration in the past, irrespective of the heavy risks involved, so it was disposed to serve the present Administration if so requested. But deferring to the policy now declared, the Group has withdrawn entirely from the Chinese Loan negotiations and has so advised the European and Japanese banking groups.


By Y. S. Tsao, Secretary of the Chinese Students' Alliance in

It is not without a considerable amount of misgiving that the writer ventures to trace the relation between the returned students and the recent revolution, as his residence in America might lead him into partial statements in favor of the returned students from this country or the underestimation of the rôle played by those from Europe or Japan. Moreover the topic called for specific treatment to the exclusion of generalizations, so it is the aim of this paper to study the returned students from a subjective standpoint at the outset, to be followed by concrete and typical illustrations of the part played by the returned students from the several countries.

It might be well, at the beginning, to divide the returned students into two main groups, namely those from Europe and America and those from Japan. It must be admitted that by far the largest part of the recent revolution, was accomplished by the returned students from Japan by virtue of their numerical strength and for other reasons to be accounted for later on. On the whole, all the returned students, wherever they hail from and whatever political views they hold are destined to play the part of leaders on account of their superior training and breadth of vision. It has been estimated that America has 5 per cent college men and they will eventually become the leaders of the nation for even if they do not all become men of great influence, they will always be looked up to in every community as leaders of publie opinion for the same reasons. Only in the case of the Chinese students they have better opportunities of duplicating themselves in this rapid transitory period of China's history.



A recent writer has observed pithily that if you change the ideas of the Chinese their policy will change, which is no more and no less than granting our people with the credit for being rational. Of the many factors leading to the modification or reversal of ideas the influence of western education has achieved the most far-reaching results. The contrast between the social, economic, political and religious institutions of the West and those of the East is too obvious to escape the attention of even the most unobserving student. While much of the good in the old institutions should be conserved, every student cannot but desire to see the adoption of many modern ideas that have been slowly developed in the west. This is strictly true to the students who have left China for a stay of from five to eight years of study in a foreign land during the formative period of their lives. The experience of living in a different atmosphere is interesting and the impression correspondingly deep. In a word, they form a bridge across the broad expanse of seas, on which new learning, new ideals and new institutions are constantly conveyed to China. Fully saturated with new ideas and ideals, filled with the zeal of new ambitions and aspirations and kindled by a new sense of patriotism as a result of travel, these liberated individuals return to do and dare. From this very spirit the seed of revolution is bound to germinate. In the early seventies, some one hundred and twenty students were brought over to America by Dr. Yung Wing of Yale for a course of twelve years' training but they were recalled in 1881 being accused for harbouring revolutionary ambitions. The apprehensive Manchu government was not far from the truth.

Another important factor which helped immensely to develop the revolutionary spirit was the recent political history of China, both nationally and internationally. Ever since the China-Japan war, the country has been in a state of unrest. The reverses of that war caused a rude awakening and the late Emperor Kwang-Hsu with the assistance of

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