The leading Chinese newspapers expressed their gratitude at repeated, assurances of due respect being given to Chinese public opinion and promises to refrain from interfering in her internal affairs. But others, like the China "Times," said:
The British plan to control our railroads jointly, and the American plan is to monopolize our industries jointly, while the Japanese plan to monopolize all our railroads, mines, forestry, and industries. Any one of these plans will put our destiny in their hands.
It also declared: "Although it has been reported that Japan will make certain compromises, it is hard to say to what extent these will go."
To this Mr. Lamont said: "It now remains for the Japanese Government formally to confirm this desire [of the bankers to join]. If they fail to do so and if Japan remains outside the consortium, I should think that Japan might prove to be the chief loser." He next made it clear to China that she would first have to establish peace if she is to be helped. Aside from the reorganization of the currency, the consortium is going to see to it that a sufficiently safe audit system is established, so that it will be sure that all loan expenditures go as far as they should into the properties themselves. Further, the Chinese Government, in order to save some cash, refused to pay on certain bearer bonds which had come back rather curiously. These were formerly German property bonds on the Hukuan Railway loan which Germany had evidently sold off before the war. They had now come back by way of England and America. The Chinese Government wanted proof of transference on bearer bonds. Mr. Lamont pointed out to them that this action would totally discredit them and that the ability to secure further investments would be very slim unless these were redeemed. Mr. Lamont then returned to Japan.
Then it became known that the Japanese Government had finally given its consent. In Japan, opinion ranged from imperialistic chauvinism to liberal recognition of the consortium as a way out of the mess. On May 11 things came to a head. Mr. Lamont stated on his return to America that:
The fact that Japan has come into the Consortium for China without reservations should be made clear. The agreement that the Japanese banking group with the approval of its government, signed at Tokio, leaves nothing to be desired on this point; but in Japan, while there was perfect readiness by all authorities to announce that an understanding had been reached, there seems to be some reluctance to make public any statement that the Japanese Government had withdrawn its reservations as to Manchuria and Mongolia. It is only fair, therefore, that every member of the American banking group and American investors generally should clearly understand the facts.
Still Viscount Uchida, the Foreign Minister, insisted:
While other powers can afford to regard the new Consortium solely as a business matter Japan is otherwise situated, since her vital national interests, such as national defense and economic existence, are apt to be involved in enterprises near her border. When the three other governments expressly declared to Japan that they not only did not contemplate acts inimical to her vital interests but were ready to give assurance sufficiently safeguarding them, the Japanese Government decided to confirm the Paris agreement.
What Japan expected the powers to say other than just that is a matter for diplomats to play with. To the common person this statement is absolutely meaningless. It is a generalization which leaves the door open for Japan to object to loans for any work which she feels will jeopardize her national life or vitally affect her "sovereignty." Any railroad scheme which might become a competitor by diverting freight from Manchurian lines owned by Japan would be a menace to Japan's sovereignty.
For instance, it seems understood that among these vital interests are certain loans to Chinese capitalists and corporations. And doubtless Japan would right now much rather have the millions which she has sunk in China in her own hands. But if these loans are recognized, what guarantee is there that even under the nose of the consortium further "loans" will not be made?