POSITION OF CHINA

New Zealand Herald, Volume LXXII, Issue 22139, 19 June 1935, Page 11

POSITION OF CHINA

ECONOMIC DIFFICULTIES P ACTIVITIES OF JAPANESE British Wireless RUGBY, June 17 The present situation in China was the subject of a brief statement in the House of Commons to-day by the Foreign Secretary, Sir Samuel Hoare. He said that for various reasons the effects of the world economic depression upon China were delayed. For some months past, however, China's economic situation has been one of undoubted difficulty, and the position was still further complicated by the recent rise in the price of silver. In spite of the financial crisis, the political situation in recent months had not been unfavourable. There were signs of steady progress toward order and stability in China, and the success of the Central Government's campaign against the Communists had contributed toward the extension of its authority and influence in North China. However, there had been disquieting developments during the past two weeks or so. Reports were conflicting in certain details, and the situation was liable to undergo rapid change, but it appeared that the local Japanese military authorities had made representations regarding persons or organisations alleged to bo hostile to themselves in or near the demilitarised zone established between China and Japan by the Tangku Armistice. " In regard to the most recent developments in North China," continued Sir Samuel, " I have been in Communication with the British representatives in Tokio and Nanking and, through them, with the Chinese and Japanese Governments. These communications are being continued."