AT ELEVENTH HOUR :

Hawera Star, Volume XLVI, 16 February 1927, Page 5

AT ELEVENTH HOUR :

NEGOTIATIONS BREAK DOWN.

mb CHEN DENIES BEPOBT. SINO-BETTISR DISPUTE. gy CABUB—PBKSt* ASSOCIATION —COP BRIGHT Received. 10.25 a.m. to-day. SHANGHAI, Feb. 15. Negotiations for the settlement of the Smo-British dispute again broke down at the eleventh hour, after what had been believed to be the final conference. The agreement remained unsigned. The Nationalist Foreign Office stated that it had nothing to say, but that does not mean there will be trouble. A statement has not been issued by Mr O’Malley. The Associated Press telegraphs that upon being asked whether .negotiations were broken as reported Mr Chen categorically denied ’this. He declared that be had made an important statement to Mr O’Malley, indicating that the Nationalist Government considered that the modification in the original plan of concentration of British forces in Shanghai as announced by Sir Austen Chamberlain in, the House of Commons on February 10 made it possible for negotiations to be completed regarding the concession question. Despite the foregoing, it is firmly believed that a serious hitch has occurred, which is likely to prevent the signing of the agreement.

AT THE LAST MINUTE. NECOTTATTONS BREAK DOWN. LONDON, Feb. 15. “News of the breakdown of the Hankow negotiations has created astonishment jh official circles,” says the Dai y Express. On the contrary, the Daily .Herald’s diplomatic correspondent makes a grave statement on the subject, declaring that official hope all round would, seem more than balanced by the fear that something might happen at the last moment to prevent the signature. “It was impossible,” says the correspondent. “to avoid the conclusion that this anxiety was not unconnected with the new military movements which appear to have been* ordered at euch a critical and dedicate moment without consultation with the Foreign Office. These movements cannot have been exactly helpful to Mr O’Malley.” RELATIONS WITH RUSSIA. FOREIGN OFFICE ACTION. LONDON, Feb. 14. In the House of Commons, Mr LockerLampson, Under-Secretary for Home Affairs, replying to a question, said that no communication had passed between the Soviet and the Foreign Office on, the subject of China. Mr Davidson: “What is the date of the last protest made to the Soviet in connection with their action in China?” Mr Locker-Lampson: “That ready does not arise out of the question.” He added that no communication whatever had taken place jn connection with M. Kras sin’s successor. There had been no change in. the Russian situation since Sir Austen. Chamberlain’s statement thereon. Mr Davison: “No change, even in view of what has happened in China ?” Mr Locker-Lampson : “I did not say that. The official Soviet Press provides ample evidence of hostile propaganda against Britain, without the necessity of the Foreign Secretary producing further evidence. Mr Ramsay MacDonald : “If that is the case, the Foreign Secretary had to complain. Has he done \so ?” Mr Locker-Lampson: “Certainly, in interviews with th?. Soviet representative. The trade agreement lias been broken over and over again.” Mr Samuel stated that Britain .sold Russia in 1925 £19.000.000 worth of goods, and £14,500.000 worth in 1920. TR AFFIC TN ARMS. LONDON. Fob. 15. Th:' lin'd’' Telegraph’s diplomatic oor- . respondent says that Rerlin admits that quantities of German arms are reaching China, but points out that tliev are ncTlonger German, consisting chiefly of goods surrendered to the Allies, from whom private dealers bought them for next to nothing and are now sealing them for a good price to China. The German Government has no power to bold tip this foreign-owned material in transit across Germany.