One of the most involved features of the whole case is the unadvertised foud that is going onin Germany between the German Foreign Office ud the big private companies with terests in China. The writer does not pretend to understand this situa-wu and most Germans confess that they do not, but it would appear that the Foreign Office, in its anxiety to close the whole issue, was Prepared to compromise 1a by paying: a reduced in-ina lump sum, leaving it to take up the bonds and make what profit she could. Thi would not only have been an exeel-Tent time-saving measure but good stroke of business because, since Germany is the major bond holder, she could have pushed up the price and turned over a fair profit on the paper which she bought when it fas nearly worthless. Private interests, however, have held up the transaction because the present state of affairs is much more comfortable than' a resumption of the normal responsibilities which would come with a complete adjustment. In the sight of the big companies the revived responsibilities would more than offset the revived advantages.
In banking circles it has been reported within the past few days that Germany had rejected the latest terms of settlement from China. In view of the fact that Dr. von Borch cannot yet have arrived in Berlin to confer with his superiors, this report must be taken with a grain of salt.
As the result of strenuous protest from America, the Chinese Gover ment has agreed to honour all the German Hukuang bonds held in that country, whether validated or not when "she has the money. The Danish Minister has recently pro? tested that his nationals who are holders of Chinese bonds of German issue must be protected. The German share of the Reorganization Loan is secured on the salt revenues and the annual payments up to date have been transfered to London and oral mate 3.150000
Text read from the printed page and cleaned; old type leaves the occasional error.