DISPUTE IN FAR EAST

Evening Post, Volume CVIII, Issue 31, 5 August 1929, Page 9

DISPUTE IN FAR EAST

UNACCEPTABLE DEMANDS

REPORTED REJECTION

United Preaa Association—By Electric Tele-

Eraph—CopyrizhL

SHANGHAI, 3rd August. It is reported that Moscow has rejected China's proposals for a settlement of the Eastern Bailway dispute, insisting on compliance 'with the Soviet's proposals, of 25th July—viz., restoration of the status quo before opening negotiations.

M. Karakhan's reply to Marshal Chang Hsueh Liang's overtures declares that China's attitude "creates a situation fraught with grave possibilities, the entire responsibility for which rests upon the Mukden and Nanking Governments."

It is reported that Tsai Tun Sheng, the Harbin Commissioner of Foreign Affairs, has presented several demands to M. Meeiinokov, tho Soviet Consul at Harbin, being preliminary conditions to the opening of the formal negotiations. The first of these is that the Eastern Railway be placed under exclusive Chinese control; second, the Chinese merchant ship's crews seized by Soviet gunboats be immediately . released; third, all Soviet employees on the Eastern Kailway be controlled by the Chinese Director-General of the Eastern Bailway; fourth, both countries immediately halt military activities. In the meantime China offers to issue a formal declaration denying support to the White Bussian movement. Diplomatic circles at Nanking believe the opening of formal negotiations between China and Bussia in connection with the railway dispute is not likely to take place for several days, basin'" this view on tho belief that the Soviet demands are not acceptable to tho "Nanking •. Government.