RUSSIA AND JAPAN

Press, Volume LXXV, Issue 22850, 25 October 1939, Page 10

RUSSIA AND JAPAN

WIDE SETTLEMENT DISCUSSED REPORTED BREAKDOWN DENIED UNDERSTANDING WITH U.S. DESIRED IN TOKYO

(UNITED PRESS ASSOCIATION —COPYRIGHT.) (Received October 24, 11.30 p.m.) NEW YORK, October 23. The Moscow correspondent of the “New York Times” (Mr G. E. R. Gedye) says that the reported breakdown in negotiations between Russia and Japan and Outer Mongolia is really a dispute concerning the scope of the exchange of prisoners embodied in the recent armistice.

The Soviet contends that it includes Russian airmen and others imprisoned in Manchukuo. The Japanese insist that it does not, hence the deadlock.

Negotiations are proceeding at Moscow at present to see whether a wide settlement being discussed cannot be confirmed. The cessation of propaganda suggests that both are preparing an atmosphere in which wider adjustments will be possible. However, the Japanese have really set their hearts on a «ettlement with the United States, since they distrust Russia.

The Japanese believe that the European war will practically eliminate British and French competition in China.

A Tokyo message states that a Japanese Foreign Office spokesman denied the report that negotiations between Japan and Russia over the Manchukuo border had broken down. He said that Japan was still attempting to normalise relations between Japan and Russia. He saw no inconsistency in this, as the Soviet Government was dissociated from the Comintern. SOVIET HELP TO CHINA GUNS, AIRCRAFT, TANKS, AND ADVISERS REPORTED CONCESSIONS IN TURKESTAN IN PAYMENT (TnrtTSD PBESS IS3OCIATIOH —COPTSIGHT.) TOKYO. October 23. The Hong Kong correspondent of the Associated Press of America states that increasing numbers of Soviet aeroplanes and guns appeared in China recently. It is reliably stated that 500 Russian military experts are assisting Marshal Chiang Kai-shek. Additional tanks and anti-aircraft guns are en route to China.

The Chinese state that the Russians promised 30,000,000 to 100,000,000 dollars worth of war supplies in return for which foreign observers believe the Soviet was granted economic concessions in Chinese Turkestan.

The Domei Agency states that the Russians have penetrated Chinese Turkestan as far as Lanchow, the capital of Kansu Province. Lanchow is now a typical Red town with an air force six times larger than two years ago. All foreigners, except Russians, are withdrawing from North-West-ern China. Missionaries are concentrating at Lanchow preparatory to an evacuation.

CHINESE TAKE MATANG

SUCCESS AT TUNGTING LAKE

(Received October 24, 7.10 p.m.)

CHUNGKING, October 23,

The Chinese have recaptured Matang and surrounded Yochow, the last strong Japanese position at Tungting Lake.

Matang was taken by the Japanese in their advance on Hankow in the second week of July of last year. Its fall was regarded as a heavy blow to the Chinese, because the main boom across the Yangtse, defending the river access to the Wuhan cities, was located there. The ease with which the boom was broken caused a sensation, and was said to have been caused by the river being in flood, which allowed

Japanese vessels of shallow draught to sail over the top, the Chinese being taken by surprise. The recapture of Matang, which is situated on a great bend of the Yang-tse-kiang, about halfway between Hankow and Nanking, may enable the Chinese to undertake operations against the Japanese forces holding Lake Poyang and Nanchang. Nanchang has one of the most important aerodromes in China, and is so placed as to control the defence of the CantonHankow railway. Yochow, which is reported to have been surrounded by the Chinese, is situated on a bend of the Yangtse, about the same distance from Hankow as Matang, but on the inland, or western, side. Yochow is important because it guards access to Lake Tungting, because it is on the Canton-Hankow railway, and because it is near Changsha, which was the objective of Japanese attacks in the last two months. JAPAN ABANDONS STERLING YEN LINKED WITH U.S. DOLLAR (Received October 24, 11.30 p.m.) TOKYO, October 24. The Ministry of Finance announced that Japan has abandoned the historic yen-sterling link because of the expectation of a prolonged European war and British strengthening of exchange control. From now on the yen will be linked with the American dollar, based on a dollar selling rate of 23 7-16.