PEACE MOVE BY JAPAN

Press, Volume LXXVI, Issue 23086, 31 July 1940, Page 9

PEACE MOVE BY JAPAN

Reported Offer To China THIRD POWERS AFFECTED (united peess association—copyright.) (Received July 30, 8.30 p.m.) HONG KONG, July 29. It is reported that China has rejected Japanese overtures Involving: an armistice with an all-em-bracing' settlement at the expense of third Powers. The Japanese proposals are reported to be the following:— (1) The outright cession of the five provinces of Hopei, Chahar, Shantung, Shansi, and Suiyuan. (2) The recognition of Mr Wang Chiug-wei as President of the Ciiinese Republic, made up ot_ the remaining provinces plus British Burma, Frene-h Indo-China, and Thailand (Siam), in which China and Japan would share economic opportunities. (3) Manehukuo’s status to be left in abeyance indefinitely. MORE BRITONS JAPANESE•ALLEGE ESPIONAGE MYSTERIOUS DEATH OF REUTER’S MANAGER (Received July 30, 9 p.m.) LONDON.'JuIy 30. The Tokyo correspondent of the Associated Press of Great Britain states that the Japanese foreign Office has disclosed that 12 Britons were arrested by military police under the direction of prosecutors as the first step against an alleged country-wide British espionage network. The British Ambassador (Sir Robert Craigie)- has twice protested, once formally, and he has also personally protested to the Foreign Minister (Mr Matsuoka) and requested information concerning the reasons for the arrests. The Shanghai correspondent of "The Times’’ says that a British subject, Mr L. T. Woolley, who is a member of the Asiatic Petroleum Company, has been detained at Kobe. Meanwhile, Mr J. Melville Cox, the manager of Reuter's in the Far East, has been killed in a mysterious fall from the fourth floor of the Japanese police headquarters while being questioned. It was officially announced that Mr Cox committed suicide rather than face a conviction. Britain has demanded 1 a full investigation into Mr Cox’s, death, according to reports from Tokyo. British officials are not inclined to accept what purports to be his farewell note. Britain has also asked for substantiation of charges of an espionage network. A statement issued by the Japanese. Ministries of War and Justice says: "A note addressed to his wife was found on Cox’s person. It reads. ‘X know what is best. Always my only love. I have been quite well treated but there is no doubt how matters are going.’ In the light of the above note it seems that with the progress of.the investigation Cox became aware of the fact that he could not escape a conviction.” Mrs Cox has denied that her husband was engaged in espionage. He had merely been doing the regular work of a foreign correspondent. Mr Guy Locock, the London director of the Federation of British Industries, commenting on the arrest of its representative, Captain C. N. James, said that the charge of espionage was absolutely fantastic. The bureau had nothing to do with politics, and was concerned solely with commercial activities. The police could examine all its files and there would be no evidence found. RELATIONS WITH UNITED STATES JAPAN TO AVOID FRICTION REPORTED POLICY OF MR MATSUOKA (Received July 30, 11 p.m.) LONDON, July 30. The Tokyo newspaper, "Yomiuri,” says that the Japanese Foreign Minister (Mr Matsuoka) intends avoiding friction in Japanese-Americau relations, while being "in perfect readiness for the worst.” The newspaper declares that Mr Matsuoka has ottered the post of Ambassador to the United States to Mr Yoshisuke Aikawa, president of the Manchuria Heavy Industry Company, replacing Mr Horinouchi. The Japanese Foreign Office spokesman (Mr Y. Suma) said that the United States Assistant-Secretary of Stale had assured the Japanese Ambassador in Washington that the licensing of exports of oil and scrap iron by the United States did not constitute an anti-Japanese embargo. Japan understood officially that tire older was aimed at restricting the export of vital defence materials, and it would not affect Japan greatly. A Hong Kong report says that Japanese forces, continuing operations designed to close all ports through which war materials might reach the Chinese armies and guerrillas, landed at Swabue at dawn. The Japanese also advanced inland and attacked Chinese holding the town of Chenhai. A Shanghai message says that the United States Consul-General in Shanghai (Mr Butrick) visited the Japanese Consul-General (Major-General Miura) and expressed regret for the incident in which Japanese detectives and United States marines were involved. Major-General Miura accepted this as a satisfactory settlement and withdrew the claims for compensation. The Moscow radio says that Japanese officials have installed a post office at Shanghai in the French Concesssiou and intend to censor all mail.