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Show Kirs Will Make Loans to Chinese Government, But Not to Chinese Capitalists. TOKIO, May 12 (By The Associated Associat-ed Press). The consortium agreement agree-ment between Japan, France, Great' Britain and America for the purpose of promoting a loan to China was signed sign-ed yesterday by representative Japanese Japa-nese bankers and Thomas Laraont of Morgan and company. The consort lum will make loans to the Chinese government but loans to Chinese capitalists cap-italists or corporations are outside the scope of the consortium. Viscount Uchlda, the foreign minister, minis-ter, Issued a statement last night saying say-ing that the consortium understanding between the Japanese banking group' and Thomas W. Lamont of J. P. Morgan Mor-gan and company, representing the other groups with regard to a loan to China, had been confirmed by an exchange ex-change of notes May 11th and reviewing review-ing tho steps leading to tho agreement. The staicment says that the Japanese Japa-nese government has always rigidly followed tho policy of acting in connection con-nection with the powers interested In loans to China, and accordingly used its best efforts to persuade America when the laiter withdrew from the old six-power consortium and therefore promptly approved in prlnciplo the! present consortium. "Throughout It ba been the intimate desire of the Japanese government by the creation of a new financial organization organi-zation to end tho needless loan competition compe-tition concerning China," tho statement state-ment says. However, while the other powers can afford to regard the new consortium solely as a business matter, mat-ter, Japan is otherwise situated, in regard re-gard to vital matters such as defense and economic existence, are apt to be involved in enterprises near her border. bor-der. When tho three other governments govern-ments expressly declared to Japan that they not only did not contemplate acts inimical to her vital Interests but were ready to give assurances sufficiently suf-ficiently safeguarding them, the Japanese Japa-nese government decided to confirm the Paris agreement. |