DISCUSSIONS IN TOKYO

Press, Volume LXXV, Issue 22768, 21 July 1939, Page 11

DISCUSSIONS IN TOKYO

FIRMNESS ATTRIBUTED TO BRITAIN ATMOSPHERE SAID TO BE Tgjf UNCHANGED —— <Received July 20, 8.30 p.m.) LONDON, July 19. A British Official Wireless message says Mr Chamberlain stated that the British Ambassador in Tokyo (Sir Robert Craigie) and the Japanese Foreign Minister (Mr Arita) met for further discussions, and Sir Robert Craigie’s report was sow being awaited in London. The Doznei News Agency reports that Sir Robert Craigie informed Mr Acfta clearly of the stiff attitude prevailing in Britain, but because of his manifest desire for conciliation there was no reason for pessitnfatm .The Tokyo correspondent of the British United Press states that it is understood that to-day’s discussions centred on Japan’s request that Britain should recognise partial belligerent rights without an actual Japanese declaration of war op China. A' communique on the negotiations merely records the adjournment in order to give time for further consideration. It adds that Sir Robert Craigie and Mr Arita discaused the general background to the Tientsin situation. The Dome! News Agency states that it is understood that there has been no change in the atmosphere between Sir Robert Craigie and Mr Arita. Sir Robert Craigie, in the second session, maintained a conciliatory attitude, but he stood firm. Bdtain’s claims to optimism are not warranted, but it could not be said that there was no hope of success. i Moderate Tone of Press The Tokyo correspondent of “The Times’* states that the fact that Sir Robert Craigie and Mr Arita dealt with the general background to Tientsin, for the discussion of which Japan demanded preference, is accepted as the first instalment of success. The tone of the press is more • moderate, and its demands for a reversal of the British policy have dis- . appeared from its columns. It is obvious that Mr Chamberlain’s statement that Britain would not change bra 1 policy, and had not been asked to do so, has been endorsed in official circles.' New formulas have been found under which Britain is asked to recognise that a state of hostilities exists, and that the area around Tientsin is controlled by the Japanese Army. ‘The Times” adds: “This may be th2 thin end of the wedge, the other end of which is still hidden, but, efiOQgdmg to the Japanese, it merely asks i3r the recognition of obvious facts.” The Chinese press, which is devoting close attention to the talks, confident that Britain will not compromise on the fundamental •issues. It states that the negotiations may break down if Japan maintains her policy of forcing Brit*m to co-operate in the invasion of ■ China. ALLEGED DICTATION. BY GERMANY OBSERVATIONS BY BRITISH ECONOMIST LONDON, July 19. Sir George Paish, a former adviser to the Chancellor of the Exchequer and the British Treasury, financial and economic questions, a speech at Manchester, said that after several months’ residence in Japan he was convinced that Japan acting almost entirely under direction c£ Germany in the Tientsin incident, rejecting Germanjr*s worl'l-wida camnci"n again"! Britain in order to confront her with toe greatest possible difficulties. Japan was facing acute economic problems. Her businessmen foresaw disaster if she were unsuccessful in China. World-wide economic 7 collaboration was imperative. “We t . within sight of a complete breakdown in world trade, which is absolutely inevitable unless inter-

national collaboration is undertaken,” he declared. ■ Nearly 40 per cent, of the worlds spending power was based on borrowing. It was frightening to contemplate what would happen when borrowing stopped. Econo.mic cooperation alone would save Europe from war and induce Japan to hold her hand in China.