PEACE TERMS

New Zealand Herald, Volume LXXV, Issue 23227, 22 December 1938, Page 12

PEACE TERMS

JAPAN TO CHINA PRINCIPAL CLAUSES HOSTILITIES AT CANTON CHINESE ATTACK LIKELY - By Telegraph—Press Association—Copyright Times Cablo LONDON, Dec. 20 It is reported from a Chinese source, says the Hongkong correspondent of the Times, that the Japanese leader, Lieutenant-General Kenzi Doihara, has offered peace terms to China, including the following : (1) China to recognise the independence of Manchukuo and Inner Mongolia, and join in tho antiCommunist Pact. (2) Marshal Chiang Kai-shek to take a brief holiday and resume office later. (3) Japan to withdraw her troops and restore to China her industrial and mining areas. The Japanese attitude is hardening as tho result of foreign loans to China. It is stated that the opening of the Canton River must await a settlement of tho Yangtse dispute. The Japanese Navy has resumed its molestation of fishing junks near Hongkong, 17 having been seized. Chinese bombed the suburbs of Canton without opposition from Japanese airmen. A Chinese attack on Canton is expected daily. The Japanese are digging trenches in tho streets and erecting sandbag barriers. Pang Tung-wing, formerly commander of Woosung forts, was ceremonially installed as chairman of the Japanese puppet Government in the Kwangtung Province with Lui Chunwing, formerly East River commander, vice-chairman. British and American Consuls were absent. Journalists were the only foreigners present. A, message from Tientsin says the Japanese are reported to have banned imports to Japanese-controlled China except from Japan. FEARS OF RUSSIA MANCHUKUAN BORDER JAPAN MASSING TROOPS DRIVE ON HANCHOW CHECKED LONDON, Dec. 20 Anxiety over the Russo-Japaneso situation, says a message from Peking, has led to the concentration of five Japanese divisions on the Manchukuan border. They were withdrawn from Tsinan, Hsuchow, Tsining, South Hopei and Shansi. It is reported that this has caused the temporary abandonment of tho drive against Hanchow, and has necessitated drafting 30,000 troops with the object of severing tho Sino-Russian communications. x SLOOP FOR TIENTSIN ACTION BY BRITAIN British Wireless LONDON, Dec. 20 Tho British sloop Grimsby has been ordered to Tientsin to watch the safety and interests of British nationals, concern* for whom is felt in view of coercive Japanese measures against the British and French Concessions.