JAPAN’S PEACE TERMS

Greymouth Evening Star, 3 January 1938, Page 7

JAPAN’S PEACE TERMS

SUBJECTION ALL ROUND TRADE AND GOVT. CONTROL [By CABLE —PBESS ASSN. COPYRIGHT.] TOKIO, January 1. The German Ambassador to Japan, Dr. H. von Direksen, received the peace terms from the Japanese Government . for presentation to the Chinese Government.

They include an economic agreement, at Japan’s dictation, covering all China’s' duties, foreign trade, aviation, transport, and communication. China is asked ..to lay down her arms and sign an anti-Communist pact with Japan and Manchukuo, and also to re'cogniise Japarl’s annexation of Manchukuo. Permanent Japanese garrisons are to be stationed anywhere that Japan chooses, and zonesi are to be demilitarised wherever Japan decrees. An inner Mongolian Government is to be created, independent of the Chinese Government. An independent North Chinese Government is also to to be established. China will also have to pay war indemnities. CHINESE REFUSAL. HANKOW, January 1. It is reliably stated that Chiang Kai-shek instantly rejected the. Japanese peace terms.

Kai Shek, to enable his entire devotion to the duties of Generalissimo, has handed over the Premiership to his brother-in-law, H. H. King, Finance Minister. “TO HELP CHINA.” TOKIO, January 1. The Prime Minister (Prince Konoye) in a New Year message to the nation says; “The country must prepare for a long battle to overcome the resistance against Japan and to free the Chinese people from the pressure they are suffering. Japan’s real intention is to help China to return from her disintegrated self to her old self, thus affording an unshakeable foundation for progress and stability in East Asia. To this attitude sympathetic encouragement is forthcoming from progressive nations, but there is strong resistance, even pressure, from a group who believe in the existing status .Japan will need a gigantic reservoir of national power to overcome this international difficulty.” BRITISH NOTE. [BRITISH OFFICIAL WIRELESS.] RUGBY, December 31. The British Note to the Japanese Government, in reply to the Japanese Note, was delivered by the British Ambassador (Sir Robert Craigie) in Tokio to-day. It states:

“The British Government has noted with appreciation the assurances contained in the Japanese statements apply to the merchant vessels concerned as well as to warships. The British Government, however, observes that its information in regard to the circumstances in which the attacks were made —notably, for intance, on the point of visibility—are at variance with that of the Japanese Government. “The British Government notes with satisfaction that the Japanese Government has taken, or is prepared to take, the necessary measures to deal suitably with the. officers responsible for these incidents, and to prevent any repetition. Regarding the latter, the British Government considers that the details of these pleasures, and their effective application, may suitably form the subject of further conversations, in the course of which it does not doubt that it will be informed of the actual steps decided upon.”

LONDON PRESS COMMENT. J LONDON, December 31. “The Times,” in a leading article, says: “There is nothing unexpected about Japan’s reply to Great Britain. The militarists’ explanations are wholly incompatible in several important points with the facts as the commander of the vessels reported them. To the British Government the militarists’ tone is in places objectionable. Even if this is not so, the Japanese diplomatic procedure does not correspond with the recognised methods used between governments. Even before Japan gave ner far-reaching assurances about future correct behaviour, the fighting services were guilty of grave discourtesy towards the British Ambassador (Sir Robert Craigie), and to the British This will not improve the atmosphere in which the British Cabinet is considering the Note, but its guarantees are impressive on paper and nobody will complain if Great Britain decides to accept them and await events.” The “Daily Telegraph” says that the new Note is anything but impressive, although it is perhaps the most satisfactory diplomatic document likely to be obtained in the circumstances. ANGLO-JAP RELATIONS. TOKIO, January 1. The New Year message to the nation of the Foreign Minister (Mr. K. Hirota) gives pride of place to AngloJapanese relations. It says: “It is natural that Great Britain Should be concerned about China, where she has extensive interests. Japan, in view of her old friendship with Great Britain, did not mean to disturb British interests. It is hoped that Great Britain will make an effort to avoid misunderstandings, relying on Japan’s intentions towards peace and toward checking Red penertation in the Far East.”

CHINESE ACTIVITY. SHANGHAI, January 1. Panic reigns in Tsingtao because of looting and dynamiting. Foreign vigilantes are unable to control the mobs. The Mayor, police, and officials have abandoned their posts. Encouraged by their success in guerilla warfare in Shansi, the Chinese are preparing for a triple counter-offensive towards Taiyuan. A fleet of small Soviet submarines, brought overland from Russia in parts, and assembled in China, appeared in the Yangtse to the westward of Nanking According to the Chinese press, 12_ amphibian tanks also arrived. A counter-attack, with the object

of recapturing Hangchow, is reported to have been launched by General Chang Fah-wei, commander of the “Chinese Ironsides.” Severe fighting is said to be raging, both sides using heavy artillery. It is also reported that the Chinese have begun a counter offensive in North Pukow Province. It is claimed that good progress has'been made on both fronts. Hand grenades thrown from a Chinese building at 16 sightseeing Japanese soldiers walking across the International Settlement, south of the Soochow Creek, injured one Japanese officer, three Japanese soldiers, and three Chinese police. ANOTHER “GOVT.” (Recd. Jan. 3, Noon). NANKING, January 2. The Japanese have inaugurated a. puppet Government, with a five-barred flag, similar to that at Pekin. They have issued a manifesto alleging that Chiang Kai-shek betrayed the Chinese nation. The Japanese have occupied Taian. IN THE SOUTH. SHANGHAI, December 30. Japanese destroyers took possession of Tsungtao Island. 10 miles from the harbour of Hong Kong. The Chinese claim they raided a Japanese flotilla in the Yangtse-kiang and sunk a destroyer. Forty Japanese warplanes bombed the south-western area of Canton, greatly damaging the Kowloon-Canton railway. Thirty-five were killed. The Chinese repulsed a Japanese attempt to land 100 sailors at Tongkawalt, north of Macao. The Japanese have withdrawn front Wongnan Island. BARONESS RELEASED LONDON, January 1. “The Times’s” Tokio correspondent states Baroness Ishimoto, who was imprisoned on December 15, in a roundup of three hundred persons suspected of harbouring. “dangerous thoughts.” has been released after being questioned.