CHINESE DEADLOCK.

New Zealand Herald, Volume LXIV, Issue 19557, 9 February 1927, Page 13

CHINESE DEADLOCK.

(POWERS AND SHANGHAI. NEUTRAL mm REFUSED. ATTITUDE OF CANTON. ARMED FORCES RESENTED. BRITAIN FINDS SUPPORT. By Telegraph—Press Association—Copyright. (Received Feb. 8, 8.5 p.m.) A. and N.Z. LONDON. Feb. 7. A message from Shanghai says the proposals for the neutralisation of the international settlement in Shanghai advanced by the United States Secretary of State, Mr. F- B. Kellogg, and endorsed by Britain, as a solution, of the difficulties confronting her there, have been absolutely rejected by the leaders •of the Nationalist Government.

Mr. Eugene Chen, the Canton Government's Foreign Minister, in a statement at Hankow, said such a proposal would perhaps be welcomed by Marshal Chang Tso-lin, the Manchurian ruler, and by the Peking Government. The Nationalist Government, however, would have no arrangement of the kind.

Sun-ho, son of the late Dr. Sun Yat Sen, and leader of the present revolution, said he saw no necessity for having his own territory protected by foreigners. This was his reply to the preparations of the Powers for armed intervention. Chen's Definite Veto of Plan. A despatch from Peking says that in his reply to the United States Minister, Mr. J. V.-A. Mac Murray, in regard to the neutral zone proposal, Mr. Chen states: "If Marshal Sun Chuan-fang and the British authorities in Shanghai had not made such military preparations against the Chinese masses as if they were facing a formidable foe, Shanghai would naturnlly have been freed from the ravages of the fighting between the two warring Chinese factions. Nor would the Chinese masses have been provoked.

should disturbance occur in Shanghai, .the fault will lie entirely with the Chinese and the British authorities there."

Only yesterday Mr. Chen said the Cantonese never had any intention of entering Shanghai. • Marshal Chang Tso-lin is not disposed to neutralise the international settlement.

Marshal Sun Chuan-fang, the military governor of the five amalgamated provinces, including Shanghai, is at present controlling the city. He is holding back the Cantonese Successfully. He says he favours neutralising the settlement-

But Sun has not been consulted and his eclipse is considered to be eventually certain.

Idea Welcomed in London. The British Cabinet to-day discussed the complicated and many-sided Chinese problems, but the Foreign Office at present cannot throw any. further light on the precise situation as regards the negotiations with Mr. Chen. In official circles the suggestion of the United States for a neutrality zone at Shanghai is ' whole-heartedly and openly welcomed as a parallel policy to that of Britain. It is regarded as evidence that America is satisfied with Britain's purely defensive aims in spite of her apparently isolated action in despatching a defensive force to Shanghai. The American proposal, combined with the fact that America herself is accumulating forces and fast ships at the Philippines and at Guam, is accepted as evidence that. the . United States recognises the Tightness .of Britain's policy in continuing the negotiations with the Chinese Governments,- but at-the same time unswervingly adhering to her determination to be ready, if necessary, to defend British subjects. Trench and Italian Support. Signor Mussolini's declaration approving of Britain's steps adds force to the claim mado in official circles that the other Powers concerned are steadily coming into line and pursuing a similar policy to that cf Britain.

It is noteworthy that only to-day the French Foreign Office semi-officially intimated ' its entire concurrence in the American plan for a neutral zone at Shanghai. The French view is that the suggestion has come most appropriately from the United States because she does not possess a concession at Shanghai. Therefore she stands in a position of greater detachment and impartiality than do the European Powers.

POSTERS AT HANKOW.

FALSE NEWS CIRCULATED. f GULLING THE CHINESE. 'A. and N.Z. SHANGHAI. Feb. 7. News from Hankow states that the situation there is quiet, but the streets have been placarded with posters, on which is displayed the sentence: "Shanghai captured by the Cantonese." It is reported that hundreds of Nationalist agents have been sent to Shanghai with the object of stirring up the Workers. REVERSE FOR REDS. ADVANCED BASE TAKEN. : A RESPITE FOR SHANGHAI. A. and N.Z. SHANGHAI. Feb. 7. According to a reliable report from a foreign source the forces of Marshal Sun Chuan-fang. military governor of Shanghai, and the adjoining provinces, have captured the advanced base of the •southern army at Chuchow, 150 miles south-west of Ningpo, in the Chckiang Province. . 'I he defeated Red troops are now retiring toward the Kiangsi border on the ?«'est. As it is well known that the southerners have been hampered of late by a lack of money, a shortage of ammunition and difficulties in regard to transportation, there appears to lie little reason to doubt this report. If it be true it removes, at least for the present, the Cantonese threat against Shanghai.