14 FEBRUARY 1914, Page 14

THE FOREIGN CLAIMS AGAINST CHINA. ire lea EDITOR or 7131

''Srromtroe."3

Sra,—Du ring the last few days there have been laid before the Anglo-Chinese Friendship Bureau certain facts with regard to the offer of the Chinese Republic to compensate foreigners for losses sustained during the Revolution of 1911 which it seems to us should, in the interests of justice and fair dealing between East and West, be given publicity in your columns. The position is, briefly, that China has voluntarily set aside two million pounds from the Quintuple Loan to meet claims for losses sustained by foreigners during the Revolu- tion, and has drawn up a list of rules controlling the examina- tion of such claims. These are based on recognized principles, and the only proviso calling for special mention is one which stipulates (again following established precedent) that damage to property shall be confined to that done by actual military operations.

In response to this spontaneous offer the Chinese Govern- ment is now faced with claims which amount to little leas than a frank repudiation of every principle both of law and of equity. Among the grounds on which compensation is demanded are the following : loss of wages caused by the commercial deadlock ; debts owed by natives ; estimated profits unrealized through dislocation of trade; rents for warehousing goods for which markets were unfavourable during the Revolution. In addition, we are informed that 7 per cent. interest is being claimed, calculated from the day of the loss to the date of settlement.

It is perfectly clear that the only explanation of the attitude adopted by the Powers is a determination to exploit to the uttermost China's admittedly embarrassed financial position. It is satisfactory to learn from a trustworthy correspondent that the British claim has hitherto excluded all indirect losses, and therefore amounts to only £150,000. (He adds, however, that should the other Powers insist on including indirect losses, it is understood that Great Britain will follow suit, thereby increasing the amount at present claimed by upwards of 21,000,000.) We understand that America also has attempted to make the fairest assessment possible of her claims. We believe that an overwhelming pre- ponderance of public opinion in this country will view with the strongest disapproval this attempt to blackmail China in the knowledge that she is in the last resort powerless to resist the mostindefensible demandsof foreignPowers. Fortnnatelyit lies with the Foreign Secretary to refuse to permit any fictitious inflation of the British claim, and at the same time to use his influence in favour of the equitable settlement of the question as a whole. To such a settlement there is a plain road, and China is already anxious to follow it. She has urged that the whole matter shall be referred to the Hague Tribunal, where it will be judged as between parties ready in good faith to accept the findings of disinterested jurists. Such a reference is expressly provided for under Article 48 of the First Hague Convention of 1907, and we would submit that it is of peculiar importance in existing circumstances that Great Britain should give whole-hearted support to China in her appeal to the international tribunal.—We are, Sir, fie.,

T. EDMUND HARVEY, Chairmen,

B. WILSON HARRIS, [Judging from the evidence before us, we think the proposed reference to the Hague the right and proper way of reaching a just settlement. —En. Spectator.]