WAR IN CHINA.

Press, Volume LXIV, Issue 19317, 23 May 1928, Page 9

WAR IN CHINA.

NEGOTIATIONS. CHANG ARRANGING A RETREAT. (UNITED PRESS ASSOCIATION—BY ELECTRIC TELEGRAPH—COPYRIGHT.) TOKIO, May 21. To-day's dispatches indicate that Marshal Chang Tso-lin is now negotiating with Japan in an effort to arrange an orderly retreat into Manchuria, without making a show-down battle against the Nationalists, as he previously announced he intended to. Japan threatens to assume a showdown with regard to her whole and oft-reiterated declaration of a "special interest in Manchuria and Mongolia" as it is believed the submission to Chang Tso-lin's desires could not but weaken the Japanese position and might be only temporising with what the whole Empire considers a question vital to the national welfare. It is stated that Japan intends to abide by the spirit of the Washington Declaration with regard to China, but that any action necessary to preserve Manchurian peace should not be interpreted as violating this spirit. The general tenseness of the situation is indicated by the fact that the wives of both the Japanese Minister at Peking and the Legation Counsellor left Peking to-day for Tokio, while the total Japanese evacuation since the Tsinan-fu incident has reached 500.—United Service. «A FRIENDLY WARNING."

SHANGHAI, May 21. It is learned to-day that the American Minister has addressed a Note to Nanking drawing attention to the killing of two American missionaries in Shantung recently, and warning the Nationalist Government that, while Washington does not desire to interfere in Chinese affairs, she must follow traditional lines for the protection of American lives and property in China, particularly in Peking and Tien-tsin, The Chinese regard the document as merely a friendly warning.—Australian Press Association. WILL NOT INSURE ARMS. UNDERWRITERS PRAISED. (BRITISH OFFICIAL WIRELESS.) EUGBY, May 21. Asked in the House of Commons whether any steps had been taken at the instance of the Foreign Office to prevent the insurance in this country of shipments of arms to China, Sir Austen Chamberlain said that without special legislation it would not be possible for the British Government to prevent British firms from undertaking such a business, but "It the request of the Foreign Office the Marine Underwriters at Lloyds, together with the Institute of London Underwriters, and the Liverpool Underwriters' Association had voluntarily agreed not to underwrite consignments of arms, or ammunition, for China. He was glad to take the opportunity of expressing his appreciation of the public spirit shown- by them in this, as also on so many other occasions.