Grounds for Protests by Brit ish and Japanese Poking, Feb. 7.
A variety of financial complices tions are foreseen as the result a contract signed by the Chin Governments at Nanking and Muke den for the construction of an ico free harbour at Hulutao, on tha extreme' southern coast of Mans churia, at a cost of G.$6,400,000. The, contract has been let to the Nether Tands Harbour Works Company.
Completion of this harbour within the specified period of five youre would give the Chinese their only, real harbour in the north not dos inated by foreign interests, Ati Tientsin, a number of countries have concessions, and Dairen la owned by the Japanese on territory, held under long lease, Possible protests are likely ta come from Japan and Great Bute fain, it is believed in diplomatic. circles here, The Japanese have treaties providing that the Chinese. shall not build railways which will imperil the Japanese South Mane churia Railway. The National Government of China, however, bad persistently declared that thes treaties are no longer valid, having been concluded with defunct gor ernment The British protest, if it is made, will be upon an entirely different basis. The Dutch loan providing the money for the harbour is sceurs ed upon the surplus earnings of tha Poking-Mukden Railway, Mr. Hy Woodhead, editor of the "China Year Book," points out that several British loans made to this same railway have been in arrears for years, and that the issuance of anew Joan while old loans remain unpaid is morally indefensible. Mr, Woodhead estimates the British loans to the Peking-Mukden Railway, which are in default at a total of $14,500,000 at the present rate of exchange. These are the Peking" Mukden double-track loan, in do-fault since September, 1925; tha Fengehing railway loan, in default since February, 1926; and the Po king-Mukden double-track loan, la default since April, 1925. Two o€ these loans, Mr. Woodhead declarew.__—been completely paid off ly the Mukden authority anxious to build the harbour ab Foulutao, and it seems quite possible qu. that they will proceed in spite. of protests. They have been negotiate ing for more than a year with vote otis foreign companies to obtain money for this purpose, The Chinese point of view, as pressed to the writer in Mukdom last September, is that an alle Chinese harbour in Manchuria la necessary to compete with the Jao panese, They wish a Chinese oube let for the Chinese railway systoat in Manchuria, and believe they att seriously compete with Dairen who the harbour is completed. Hulutad was selected as a fine location for a modern harbour as long ago a 1910, when work was began under the Manchus. The revolution stigs pended work, after a branch raile way had been constructed, a sea wall and breakwater had been, conte pleted, and many permanent builds ings ' erected, This work wad abandoned and is now useless.
Foreign engineers who wore cots sulted by the Manchurian authori fes agree that Hulutao harbour superior in many ways to Daireay and that, if enough money is speal on constraction, the Chinese will be able to divert much traffic from the ress, POSTAL STRIKE AVERTED,
Text read from the printed page and cleaned; old type leaves the occasional error.