SINO-JAPANESE DISPUTE

Dominion, Volume 30, Issue 250, 19 July 1937, Page 9

SINO-JAPANESE DISPUTE

Peace Hopes Dwindle TOKIO’S NORTH CHINA DEMANDS New Independent State CHINESE DIVISIONS ON SCENE ./ By Telegraph.'—Press Assn.—Copyright. (Received July 18. 9.15 p.in.) London, July 18. It is reported from Peking that tile Japanese are demanding tile fusion of North Hopei, East Hopei and Cliahar into an independent State, with Tientsin as the capital. Further Japanese demands are the conversion of Tangku into a Japanese naval base, the demilitarisation of the Peking area, including Liukouehiao, and a demand that Japanese troops should garrison Peking city. The Jai>anese Embassy at Nanking has demanded that troop movements to North China shall cease. Japan no longer will tolerate the entry of Chinese troops into the Hopei province. Signs of anti-Japanese boycott by ,China’s strongest peaceful weapon are beginning to appear. The student body, the most powerful engine of public opinion in China, issued a manifesto demanding a boycott of Japanese goods pouring in without 'duty through Hie frontier of North China. The movement is now being extended to all Japanese products with deadly efficiency. The boycott has already proved that it is an impenetrable wall against which .no weapon seems to be "effective. Japanese Army Truculent. j Reports of a change of * atmosphere in Tokio are welcomed in Chinese political circles, but it is doubted whether Japanese statesmen are able to restrain ' the army, the rank and file of which is truculent and ready to overthrow its leaders if they accept a humiliating settlement. China has not yet invoked the Washington Treaty, but simply issued a memorandum to interested Powers explaining the situation. # It is confirmed that several Chinese divisions have arrived at Paotingfu, 85 miles south of Peking, and four divisions at Hopei. A conference of the Japanese Minister of Foreign Affairs, Mr. K. Hirota: the Minister of War, General Sugiyaina; the Alinister of the Navy, Admiral Mitsumasa Yonai; and the Minister of Finance. Mr. O. Kaya, resolved to accelerate Sino-Japanese negotiations. No Further Procrastination. The Domei news agency, Tokio, says that hope for peace is dwindling, owing to delay in negotiations. There is a steady advance of Chinese troops J northward, and the'agency says that ! the head of the Chinese Central Government at Nanking, Marshal Chiang Kai-Shek, is ready to assume the command of them.

Tile Japanese Cabinet announces that the situation does not admit of further procrastination. The Government insists •Unit it has no territorial designs on North China. It simply wants a local settlement, with amicable protection of Japanese citizens in China.