EASTERN RAILWAY

Auckland Star, Volume LXIV, Issue 225, 23 September 1933, Page 9

EASTERN RAILWAY

ANOTHER "INCIDENT."

Rumoured Intention of Japan

To Seize Line.

SHARP SOVIET PROTEST,

(United F.A.—Electric Telegraph-Copyright)

SHANGHAI, September . 22.

The latest "incident", between Japan and Russia consists of a sharp protest from the Soviet against the alleged Japanese intention to reform the existing management of the Chinese Eastern Railway.

The Japanese are demanding tliat Manchukuoan officials shall have equal responsibility to that of the Soviet officials.

Owing to the disputes which have arisen, coupled with the failure to come to terms about the sale of the railway, Japan now intends to seize the railway.

Additional. Russian activities within the Siberian border are reported. An unending stream of war material is flowing to Blagovestcliensk and Russian troops are daily parading in gas masks. All of this, it is believed, is for the purpose of dissuading Manchukuo to take any steps in regard to the seizure of the railway.

The Japanese War Office denies any intention of recreating four divisions. However, it states that it proposes to improve the equipment and increase the mechanisation and efficiency of the army, especially iii view of obligations for the defence of Manchukuo.

GRASPING AT ASIA.

Finances and Soviet Checks on

Japan.

INFLUENCE SPREADING.

LONDON, September 18.

Extension of the Japanese sphere of interest to Inner Mongolia, North China, and the maritime province of Russia, is almost certain, declares the special correspondent of "The Times" in Manchuria. The life of heavy Russian military concentrations on the Amur frontier hangs by the single thread of the TransSiberian railway.

There are ultimately only two factors to check Japan's ambitions in Asia —the state of her finances and the quality of the Eed Army. The Manchukuo State set up by Japan, must be regarded as a fait accompli, continues the correspondent. The rights and wrongs of Japan's actions in 1931, are no longer relevant either to the present or the future of the Far East. The country "is undergoing what is best described as "enlightened exploitation," from which 30 million inhabitants will benefit.

Banditry is the chief obstacle to peace and prosperity. It is estimated that there were 212,000 bandits last year. The number is now officially stated to be 60,000, but these are only wholetimers. There are probably another 120,000 part-time bandits. The Government is spending 4S times more upon suppression of banditry than upon education.

Nevertheless, financial progress is rapid. Currency stabilisation alone is an inestimable blessing in a country formerly flooded with war lords' worthless paper.

Foreign opinion is favourable to the Japanese, but justifiably anxious about the commercial future of the "open door." Manchuria is not quite as wide open as formerly. Extension of State monopolies will accelerate the almost inevitable doom of foreign commercial interests.

Lord Lytton, who headed the League of Nations Commission, which reported against Japan's action in Manchuria, protests against the correspondent's reference to a fait accompli. The League Assembly, he says, unanimously condemned Japan's action. If the doctrine of irrelevancy were accepted, it would destroy the foundations of peace.

LONDON'S VIEW.

JAPANESE DEVELOPMENTS,

LONDON, September 19.

Intense interest is being displayed here in the appointment of Mr. Koki Hirota as Japanese Foreign Minister, in view of the international, and especially the Pacific, situation. Mr. Hirota, who has had wide cosmopolitan and diplomatic experience, supersedes the too-Conservative Count Uchida, and he will execute the policy of his nominator, the War Minister, General Araki.

The appointment signalises domination of the situation, for which the army has striven, despite setbacks, since 1914, until the turning point in 1931. The present controllers of Japan's policy believe that the country is willing to accept Fascist rule and will wholeheartedly support the Government.

It is regarded in well-informed circles in London as a great stride towards the formation of a Government which shall be Fascist in character and more amenable to military influence.