TURMOIL IN CHINA

Manawatu Standard, Volume XLVII, Issue 56, 3 February 1927, Page 8

TURMOIL IN CHINA

HANKOW NEGOTIATIONS. RUPTURE REPORTED. .NORTH AND SOUTH WILL UNITE. PEKIN, Feb. 1. Eugene Chen, the Cantonese representative, has broken off negotiations with Mr O’Malley, refusing to sign an agreement wlule British armed forces are concentrating on Shanghai. Britain’s action in sending a large naval and military force to China is promoting the union of North and South China against foreign aggression, despite the recent magnanimous British proposals offering the return of the foreign concessions, customs autonomy, and a revision of existing treaties. It was originally believed that the proposals might entice the support of the Pekin Government, but the opposite reaction is to be observed, as was shown by a speech by General Chang Hsueh-liang, son of Marshal Chang Tso-lin, the powerful Manchurian war lord, when he said: “If foreign aggression in China continues, every Chinese, northerner and southerner, will rise together to defend the country. The present is the time when all should awake and forget the civil conflict and combine to fight the foreigner. If the British attempt force, I am sure that every Chinese will riso in support of the country. It may be that this is the chance to bring the civil war permanently to an end and unite the country. The British are sending a big squadron to China’s inland waters, seeming to think that, by holding our throats, they will prevent us from breathing. If there is more ill-treatment we shall ask north and south to join and devote their entire energy in the face of the foreigners.” The speech is regarded as significant in Chinese circles, in view of Chang’s well-known hatred of the Cantonese. Additional significance is attached to the speech by reason of a recent statement issued by Dr. Wellington Koo (who was one of the most popular figures in British diplomatic circles during his period of residence in London a few years ago), warning Britain to withdraw her forces en route to China.

Foreign residents in the environs of Shanghai have been officially ordered to enter the protection of the settlement immediately. Local Britishers are unable to understand Britain’s behaviour in relinquishing all her treaty rights and simultaneously dispatcning a large force to China. The latest local development is that the Chinese authorities in Shanghai have protested against the erection of huts to accommodate British forces in territory dually controlled by the settlement" and Chinese authorities. Accommodation now presents a serious dithcuity. Consternation is felt in financial circles in Shanghai at the dismissal of Sir Francis Aglen, Inspector-General of Maritime Customs. Stock-holders in Chinese loans amounting to hundreds of millions of dollars are alarmed, despite the Cabinet s assurances that all foreign loans and indemnities will be not impaired. The Customs are the sole guarantee for the repayment of loans, and the dismissal of Sir Francis Aglen is regarded as preliminary to the seizure of the Customs. —A. and N.Z. cable.

NO OFFICIAL CONFIRMATION

PAPERS ASSUME ACCURACY

LONDON, Feb. 2,

Official circles are unable to confirm, the report trorn Hankow tliat Chen has broken off negotiations with Mr U'Mailey, on the ground that no agreement is possible while British aimed forces are concentrating at Shanghai. On the contrary, the Foreign Office affirms that tlie negotiations are proceeding, and no news of any sort has been received yet giving a nint of rupture. Well-informed circles believe that even if the report is correct the rupture will only be temporary. Chen’ is not likely to persist so far as to provoke a final breakdown, especially in view of the large measure of approval won from many countries by Britain's conciliatory policy. The newspapers assume the accuracy of the Hankow report that negotiations have broken down. The Times emphasises the necessity of retraining from attaching unduo importance to incidents in China at present, owing to the state of chaos prevailing in the country. “It is fortunate,” comments the paper, “that the British Government has decided upon a dear, elastic policy, adapted to the difficult period of transition. Events in the Pacific are becoming as vitally important as affairs in Europe hitherto. Figures prepared in Geneva show that the economic centre of gravity of the world is gradually being transferred from the Atlantic to the Pacific, and China cannot fail to play a great part in these new developments.”

The Times concludes: “The question has to be faced whether we are dealing with a section of China whose national aspirations Britain has gone far to meet, or with the trickery of Bolshevist conspirators.” The dismissal of Sir Francis Aglen by the Pekin Government is officially confirmed. It is explained that Sir Francis was faced with difficulties in the collection of surtaxes without the consent of all the Treaty Powers. So far only Britain and Belgium have formally consented to the surtaxes. Official comment is withheld in the absence of fuller information.

“While Sir Ausrben Chamberlain’s recent speech at Birmingham commanded the assent and approval of the world, he does not mention the function of the League of Nations,” said Viscount Grey. “The reason is that the Chinese difficulty is not suitable for League action —(1) Because the civil war prevents League intervention under the clauso expressly stating that it is not intended to deal with internal affairs; (2) because the Nationalist policy has been considerably influenced by the Moscow Government, which is avowedly hostile to the League, therefore the Cantonese regard the introduction of the League as a hostile, challenging gesture.”

Viscount Grey exhorted the Government not to take strong action, and to restrain the use of force till the last moment, and then to use it only in defence of British lives and property. An incident that marks the great advance made in the last 20 years is the departure of the aircraft-carrier Argus for China, loaded with aeroplanes and stores and carrying a full complement of naval air forces personnel. increasing the strength of the aircraft in China to 80, with reserves.