Mr. Vanderlip on Honesty in Government Tokio, May 3.
Mr. Frank A. Vanderlip, asked to give his views upon international cooperation for the economic readjustment of the Far East, said: "I hesitate to offer my views regarding so broad a subject. Conditions vary widely in different countries and the state of mind of different peoples must be taken into account. No brief interview, after such a short period of observation, should be taken as a considered statement answering such a complicated question. It is obvious that a great part of the problems of the Far East are economic just as the problems of Europe are in a large measure economic.
"Tt is hopeless to expect the Far East to adopt the economic struc tures of the West, and I do not believe that it would be desirable even to aim at having the East do that. It would be desirable to do everything possible to lead to greater industrial and economic efficiency, but that should be done in harmony with Eastern thought. America should make a great contribution to that end but America should approach the task with a deep respect for the point of view and indeed for many of the methods of the East. The best contribution from America should be something more than a financial contribution.
Loans nor Evervraino.
"While I am speaking from imperfect knowledge, and therefore make suggestions with extreme modest, I feel that there are far more important things for America to do than merely to make loans. Particularly, 1 would doubt the wisdom of making loans for governmental purposes, namely for the mere ex: penses of Government or form: tary expenses. Loans to build railroads are of great value, but such loans should be made in a spirit of absolute fairness rather than with a view to the highest possible immediate return by methods which are considered unjust exploitation.
am deeply convinced that the greatest material rewards will come to us through high motives of generous though practical aid rather than by any attempt on our part immediately to grasp the material advantage. We must, however, be practical in what we do. We' cannot ask investors for funds unless the loans are secure of repayment. Certain financial security—exists only where the Government is honest, strong and intelligent. Law and order are essential to financial security and to a friendly cooperative spirit between international neigh-hours.
"For example, if Chinese bonds are to be floated in America, there should be evidence first of concord amongst the people of China and that a Government is established which will command respect as to
Text read from the printed page and cleaned; old type leaves the occasional error.