CHINESE WAR CRISIS.

New Zealand Herald, Volume LXV, Issue 19953, 23 May 1928, Page 11

CHINESE WAR CRISIS.

CLAIM OF NORTHERNERS. SOME SUCCESSES GAINED. JAPANESE AND MANCHURIA. United. Service. SHANGHAI, May 21. The Northern Chinese armies claim to have won moderate successes on the Peking-Hankow and Tientsin-P.ukow railways. They assert their ability to hold their positions against the Southerners. However the latter are making slow progress in the centre of their line. This may possibly result in them turning the Northerners position at Tsangchow, 60 miles south of Tientsin To-day's despatches indicate that Marshal Chang Tso-lin, the Northern commander, is now negotiating with Japan in an effort to arrange for an orderly retreat by his forces into Manchuria, without waging a battle against the Nationalists as he had previously announced he intended to do. The situation threatens to force Japan lo show her hand with regard to her oft-reiterated declaration of a "special interest in Manchuria and Mongolia." It is believed that Japan's submission to Chang's desires could not but weaken the Japanese position eventually, and might be only temporising with what the whole Empire considers to be a question vital to the national welfare. It is stated that Japan intends to abide by the spirit of her Washington declaration with regard to China, but that she contends any action she may deem it necessary to take to preserve peace in Manchuria should not be interpreted as violating this spirit. The general tenseness of the situation is indicated by the fact that the wives of the Japanese Minister at Peking and Japan's Legation counsellor left Peking to-day for Tokio. In all 500 Japanese have evacuated the capital since t,he Tsinan incidents. INSURANCE ON ARMS. ACTION IN BRITAIN. POLICIES NOT UNDERWRITTEN. British Wireless. RUG-BY, May 21. The Foreign Secretary, Sir Austen Chamberlain, was asked in the House of Commons whether any steps had been taken at the instance of the Foreign Office to prevent the insurance in Britain of shipments of arms to China. Sir Austen said .that without special legislation it would not be possible for the British Government to prevent British firms undertaking that sort of business. However, at the request of the Foreign, Office the marine underwriters at Lloyd's, tho Institute of London Underwriters and tho Liverpool Underwriters' Association had voluntarily agreed not to underwrite consignments of arms or ammunition to China. The Minister expressed his appreciation of the public spirit shown by them in this matter as also on so many other occasions.