BRITISH INTEREST

Evening Post, Volume CXX, Issue 137, 6 December 1935, Page 10

BRITISH INTEREST

FOREIGN SECRETARY'S

SPEECH

POLITICAL PEOBLEIIS

(British Official Wireless.)

(Received December* 6, 2 p.m.)

RUGBY, December 5.

Dealing with the situation in the Far East in the course of the Foreign Affairs debate in the House of Commons, the Foreign Secretary, Sir Samuel Hoare, said:'

"In our view there could be no satisfactory solution of China's economic [and financial difficulties without' the friendly co-operation of all the countries concerned, including, of course, China herself. In pursuance of these ideas, which we have communicated to the Powers in question, we decided to send out to the Far East Sir Frederick Lei(h-Ross, Chief Economic Adviser of his Majesty's Government, on a mission of investigation. Other Governments, however, did not accede to our suggestion that they might take similar action. After spending some weeks in Tokio, Sir Frederick proceeded to Shanghai and began his investigations in consultation with the Chinese authorities. In the midst of these discussions the Chinese Government, owing to the sudden crisis in the exchange, felt compelled to take swift action. On November 4 a decree was issued which changed the basis of China's currency. The Chinese Government took this action on their own initiative and without seeking the advice of Sir Frederick Leith-Ross. Reports indicate that the currency reform scheme has been well received, and has already had a good effect in restoring confidence and setting the wheels of trade turning. THE AUTONOMY MOVEMENT. "There is still, however, one serious cloud on the Chinese horizon, and that is the so-called autonomy covenant in North China. There have been rumours for some time past that in some of the northern provinces of China contiguous to Manchukuo an autonomous regime might be set up, and recent happenings in the province of Hopei indicate that influences are at work to force on some such development. Reports have been rife of activities of Japanese agents, and recent movements of Japanese troops have, also been supposed to be connected with the autonomy movement. "These reports have caused his Majesty's Government considerable anxiety, and his Majesty's Charge d'Affaires at Tokio was therefore instructed to inform the Japanese Government of our concern and .to say that we would welcome a frank statement of Japanese policy. The Charge d'Affaires was informed that the autonomy movement was a purely Chinese movement, that the Japanese Government was watching it closely in view of its great interests in North China, but that any idea that Japan was planning military intervention was entirely unfounded. It was stated that no Japanese troops had been moved* into China as a result of the autonomy movement, and that even the garrison at Tientsin and Peking maintained under the Boxer Protocol was at present below its quota strength. SITUATION OBSCURE. "Troops' movements near Peking which have been reported in the Press have indeed, it appears, been movements of forces already south of the Great Wall, where Japan is entitled to maintain troops under the Boxer Protocol of 1901 for the purpose of securing communication between Peking and the sea. They are stated to have been prompted by the alleged removal of rolling stock and fears of further removals. The situation is still very obscure, but I trust that conversations which are proceeding between the Japanese and Chinese Governments will result in an amicable settlement of any difficulties that may exist. "It is the desire of his Majesty's Government, as they have assured both Governments, that there should be friendly relations between the two countries. I can only regard it as unfortunate that events should have taken place which, whatever the actual truth of the matter, may lend colour to the belief that Japanese influence is being used to shape Chinese internal political developments and administrative arrangements. Anything which tends to create this belief can only do j I harm to the prestige of Japan and hamper the development, which we all desire, of the friendliest mutual relations between Japan and her neighbours and friends. NO VETO ON EGYPT. Turning to the Egyptian situation Sir Samuel Hoare emphatically denied that the British Government intended to impose any veto on return to constitutional life or was attempting to dictate the form of law on which that constitutional life should be based. The formula suggested to the Egyptian Premier by the British High Commissioner was to the effect that no one was opposed to a return to Parliamentary life at an appropriate moment, and that, it was forcing the Government to study the question in all respects with a view to fixin? a form of Constitution suitable to all the needs of the Egyptian Government, to decide the manner of elaborating this suggestion, preferably by means of drafting a committee comprising, if possible, the adherents of all political parties. This formula was intended not as an indication of veto but as a suggestion for use by Nessim Pasha in making clear in Egynt his own position on the question. The British Government could not withhold its advice when this matter came up in the course of consultation. Its purport did not run counter to what were understood to be the views held by the Prime Minister himself and shared in many influential political circles in Egypt, not excluding the Wafd itself, which had severely criticised the Constitution of 1923 at its inception. On being apprised of the suggested formula by the Prime Minister the leaders of the Wafd expressed their disapproval of it, and the matter was left in suspense. NO GROUND FOR MISGIVINGS. The situation produced by the crisis between Italy and Abyssinia gave rise to misgivings in Egypt lest the British Government might wilfully and under pressure of circumstances take measures in Egypt in the enforcement of which they would ignore the status of Egypt under the declaration of 1922, or actually modify it. The British Government had sympathetically realised the existence of these misgivings, and by assurances and practical measures had sought to demonstrate their entire lack of foundation. "These misgivings," he saTd, "have given rise to an honest wish to safeguard the rights of Egypt by submitting measures agreed upon by the Government to the approbation of the representatives of the people. This wish had stimulated a desire for a return to a constitutional regime under which Parliament could be assembled. It has also led the British Government to repeat its advice that measures necessary for the drafting of a constitution should be proceeded with. It is not' unsympathetic to the Egyptian aspira-1 tions. It is imbued with the friendliest, j feelings towards Egypt, and it is forj

this reason that it considered it proper to make a frank statement of its attitude, for friendship and co-operation can only develop in an atmosphere of frankness, sympathy, and realism."