STATE OF MANCHUKUO

New Zealand Herald, Volume LXIX, Issue 21296, 24 September 1932, Page 11

STATE OF MANCHUKUO

RECOGNITION OPPOSED REPORT OF COMMISSION (Received September 23, 6.25 p.m.) LONDON, Sept. 23 Tho Geneva correspondent of the Daily Telegraph says the report of the Commission set up by the League of Nations ; (headed by the Earl of Lytton) to investigate Sino-Japanese relations, has been received but not yet published. It is understood that the Commission is unanimously of the opinion that the new State of Manchukuo, in Manchuria, should not be officially recognised. It found it impossible to reach an agreement'with the Japanese Government on these lines. It is believed that the League will recommend a middle course, namely, to replace the Manchukuo Government with a local administration, giving-Japan full control of the railways and insisting upon the disarmament of all the Chinese forces in the country. ECONOMIC WAR CHINA'S DRASTIC STEPS A CUSTOMS BLOCKADE (Received September 23, 11.15 p.m.) SHANGHAI, Sept. 23 I The Nanking Government's second step !in the economic war over Manchukuo comes with the announcement that the Executive has cantioned tho enforcement on September 25 of a Customs blockade of the new State to counteract the functioning of the new Customs houses established in Manchukuo in the cities of Shanhaikwan, Antung, Dairen, Yingkow and Manchuli.

The Manchukuo Government announces that China has treated it as an alien country since the Japanese recognition of the new State, thereby subjecting all goods from China to the same Customs duties as foreign imports. Endless confusion is anticipated. A postal blockade of Manchukuo has been already enforced.