Recently China has been having difficulty paying its debts, to the point that Russia is now threatening to foreclose on China and seize part of Manchuria. The New-York Tribune reports on how China has saved itself from the immediate crisis, at the price of ceding to a six-power lending group control of its finances. The essential terms of a loan totaling $125 million, with U.S. banks advancing $25 million of it, have been worked out.
The Chinese capitulation to financial reality is now complete. As the Tribune notes: “[T]he terms are practically the same as those rejected by China last summer. This means that there will be virtually a financial protectorate representing the international group.”