THE TOKIO TALKS

Evening Post, Volume CXXVIII, Issue 39, 15 August 1939, Page 9

THE TOKIO TALKS

ECONOMIC ISSUES

JAPANESE VIEW

MISUNDERSTOOD PURPOSE OF DISCUSSIONS

(By Telegrauh—Press Association—Copyright,!

(Received August 15, 1 p.m.) LONDON, August 14

In a statement before he departed for Tientsin, Major-General Muto, one of the Japanese delegation at the Anglo-Japanese talks, pointed out that the negotiations were smooth until economic issues arose, on which the British caused delay, first on theoretical points and then on the grounds of consulting America and France.

"The Britons have misunderstood the purpose of the conference," he said. "They assumed that the blockade at Tientsin was intended to exert pressure, whereas it was raili* tary action due to the need for pre« serving order in North China. Moreover, the Japanese believed that Britain desired to settle economic issues on a blood and iron basis in* stead of by mutual agreement, namely, to attempt to induce America and France to exert pressure on Japan rather than secure a negotiated settlement." Major-General Muto declared that the Japanese demands are the absolute minimum. He paid a tribute to Sir ' Robert Craigie's efforts, but declared: "Britain has failed to understand the Far Eastern situation. She must recognise realities if she desires to safeguard' her interests, and reflect on her own conduct if she desires the anti-British campaign to end."

The British Press forecasts the early renewal of the conversations. Meanwhile, the British Ambassa» dor in Tokio is awaiting instructions from London.

The Tokio correspondent of the "News Chronicle" says that the Japanese-controlled provincial Gov» ernment has taken over the adminis* tratron of the British-owned coal mines in North Hunan.