The Banking Consortium To the Editor of the "Nonri-Cunxa Dany News" si -—The dispatch {rom Washington ur Issue of to-day under the heading "1920 conflict between Japan, America revealed" should be of very great interest to these who have Maintained a continued association with Far Eastern polities during" the last two or three decades." I malnfain that it is not strictly correct to state that there was ever a "tendency for the Chinese Government to gravitate politically towards any one On "the other hand there was undoubtedly at one time prior to China's linking up with the Allies in the Great War a decided tendency on the part of the great trading nations. of the world to compete with each other in securing the lion's share of the trade that was anticipated would result from the development of China's vast latent resources. ments except to the extent necessary {to maintain internal order.
The Banking Consortium has not been dissolved. "It can still serve [China as was originally intended. For~ ign. capital "and services are still available and to a far greater extent 3nd at less cost now than formerly, The slowing up of Western industrial expansion has resulted in an enormous accumulation of capital "hungering for employment." "Only a few weeks ago Great Britain converted a 2% per cent. loan issue to another at 1 per cent, and it was subscribed for within one hour, China is the last great country where modern economic felivities are still In their infancy ud offers, as no other country docs, opportunities for those countries where the export of capital is almost as necessary as an increase in the €x-ort of commodities.
it is €or China to say whether or not she will avail heres of the op-Portunities for economic reconstruc-Mien on a sound basis which are knocking at her door.
'A. J. Hucues.
Shanghai, Mar. 3.
As a matter of fact international rivalry proved China's most effective defence in preventing "the carving of the melon" and there is good ground for believing that America's insistence fon the "open door" policy was dicated rather by a senso of being handicapped in the race than by any altruistic spirit.
As far us China herself was concerned her leaders cared little who they favoured as long as they could replenish their exhausted exchequer with foreign funds, American diplomacy undoubtedly served a useful purpose in achieving the uriily of the Powers in preserving China's sovereign status and arousing 8 chivalrous respect for her very im potence to. resist took the lead in formulating the pro-Dosals of the International Banking Consortium in order to prevent Snaneial tutelage to any one Power ind provide "a practical way of tonsuring continued equal economic opportunities and chances for trade."
But the whole story is not told in the dispatch from Washington and half-truths are apt to convey false impressions. It Is scarcely fair to Japan to mention "the disappointment of the United States that Japan alone had shown disinclination to work in harmony for the establishment of consortium" unless subsequent. developments are also stated.
From my own notes recorded at the time Tam able to give the following details. The Banking Consortium was first organized in May 1919 end
Text read from the printed page and cleaned; old type leaves the occasional error.