RELIEF IN FAR EAST

New Zealand Herald, Volume LXXI, Issue 21702, 18 January 1934, Page 9

RELIEF IN FAR EAST

JAPAN AND THE SOVIET DISPUTE OVER RAILWAY HOPES OF SETTLEMENT (Received January 1", 11.25 p.m.) LONDON". Jan. 17 A message from Kobe says there are renewed hopes of a settlement of the Russian problem owing to Japan offering 100,000,000 yen, which is double the previous offer, for the Chinese Eastern Railway, on condition that Russia removes her troops from the border.

After the settlement of the demilitarised zone, petroleum, fishery and forestry questions, the Minister of Foreign Affairs, Mr. Hirota, hopes to arrange a non-aggression pact. The Moscow correspondent of the British United Press says he understands the Government has been informed that the Russian employees on the Chinese Eastern Railway who were arrested in Manchuria will be released shortly. This will permit of a resumption of the Russo-Japanese negotiations for the sale of the railway and possibly solve the most important problem facing the two nations. In London no war between Russia and Japan is expected in the near future. The Government believes the real crisis will come during the Naval Conference of 1935 unless that is cancelled on account of its failure seeming obvious.