PEACE TERMS

New Zealand Herald, Volume LXXVI, Issue 23284, 1 March 1939, Page 11

PEACE TERMS

JAPAN'S PROPQSAtS GOVERNMENT FOR CHINA! . PARTIAL WITHDRAWAL CHIANG STILL UNYIELDING By Telegraph—Press Association—Copyright (Received February 28, 5.5 p.m.) LONDON. Feb. '2l Japan is reported to be putting out peace feelers, says the Hongkong correspondent of the Daily Express. She is proposing a Government headed by Dr. Wang Chingwei, but including Marshal Chiang Kai-shek. Japan would be prepared to withdraw from Central China, but would retain her garrisons in the north. Economic rights would be granted to third Powers to help a settlement. Major-General Kita, military attache at Peking, is reported to foe busy promoting the plan and to bci "attempting to make contact with influential Chinese who are not tainted with tho stigma of being mere puppets of Japan. Marshal Chiang Kai-shek's intimates at Chungking say he will! retreat to Tibet sooner than surrender. Chinese agents recently have been active in preparing new bases west of Chungking for use in the event of a further Chinese withdrawal.

A spokesman for the 'Chinese Air Force claims that the Japanese hare lost 1034 aeroplanes since the outbreak of hostilities, says a message from Chungking. = The Japanese, continuing their effort to destroy the Chinese air base at Lanchow, are reported to have shot down, with the loss of three bombers, 56 of. 60 aeroplanes which jfose to meet them, says a message from Peking. BOMBING INCIDENT HONGKONG TERRITORY. JAPAN'S PROFOUND REGRET (Received February 28. 5.5 p.m.) British Wireless LONDON. Feb. 27 The Foreign Under-Secretary, Mr. R. A. Butler, stated in the House of Commons to-day that the Japanese Government had replied to tho protest of the British Ambassador, Sir Robert Craigie, regarding the tombing last Tuesday of Hongkong territory. It had expressed profound regret thai, such an incident should* have occurred and it assured the Ambassador that,, after a strict investigation, disciplinary action would be taken against those responsible and appropriate measures would be devised to prevent a recurrence of incidents of this kind. iv.

Japan had also indicated her intention to arrange, through direct negotiations on the spot, for the payment of compensation for the damage done. Sir Robert Craigie had informed the Japanese Government that Britain regarded tho incident as having been settled on these terms. CONTROL ARRANGED SHANGHAI TERRORISTS (Received February 28, 5.5 p.m.) „ TOKIC, Feb. 27 Japan has accepted the reply of the authorities in the International Settlement at Shanghai undertaking to control terrorists with the help of the Japanese. ' •- ,