(5 of 5)
1) Complete cessation of anti-Japanese agitation in China, and inauguration of a publicity campaign for Chinese-Japanese understanding.
2) Japan to give credits to aid China in its financial difficulties.
3) Japanese advisers, financial, economic and military, to replace other foreign advisers, particularly the German Military Mission which has been training Chinese Government soldiers for years.
That such terms are even being considered by Generalissimo Chiang and Premier Wang constitutes almost a double bend of the Chinese Government Whalebone. But can China lose? In the past Japan has often tried to loan her way to Chinese hegemony, pouring into China over $3,000,000,000 with all sorts of strings attached, strings which subsequent Chinese Governments blandly snap. In Manhattan what could be called the reaction of informed U. S. tycoons accustomed to doing business with China was neatly capsuled by the Herald Tribune thus: "If she [China] is left to her own devices she can be trusted to sign no bargain which she cannot subsequently denounce or evade."
Pleased with the new Japanese-Chinese bargain now under discussion, General Doihara beamed in Hongkong, "Our relations with China are much better." In Nanking, impatient for his big loan, Chinese Finance Minister Kung deplored the impossibility of screwing silver out of the Chinese people as President Roosevelt screwed gold out of the U. S. people, threatened to go through the motions of taking China off the silver standard and establishing a managed currency. Dryly commented the world's famed "Money Doctor," Princeton Professor Edwin W. Kemmerer, rehabilitator of a dozen currencies and an expert on China's: "A managed currency is not at all well adapted to China's needs or to her people's characteristics. . . . If, however, China remained on the silver standard she would be sure to suffer when the accumulated hoards of 'dead silver' in the United States Government's vaults are thrown back on the world market and the price of silver slumps."
*In the single Chinese province of Anhwei, 250 miles remote from Nanking, 3,000,000 Chinese were last week reported starving. "It is distressing to walk the streets these days with misery and Death everywhere," reported George Birch, China Inland Mission worker. "Two-thirds of this area is without food and the remainder is approaching the same condition. I hear such things as five of a family of seven starved to death. A man climbed a hill to cut fuel and fell dead. Women with babies, exhausted and despairing, laid down to die." *The President's adopted son, James Lin, postgraduates at Columbia. Said he of his father in Manhattan last week: "He neither smokes nor drinks. His only hobby is curio collecting. Every evening from 7 to 8 he sits with his curios. Sometimes he will set out a rare piece he has recently acquired and leave it out for a few days, but after that it goes with the others into a big box."