JAPAN'S DEMANDS

New Zealand Herald, Volume LXXVI, Issue 23414, 2 August 1939, Page 13

JAPAN'S DEMANDS

. CHINESE CURRENCY ; REFUSAL BY BRITAIN STATEMENT OF POLICY DEADLOCK CONTINUES \ "" ,\ :. By Telegraph—Press Association —Copyright (Received August 1, 11.40 p.m.) Times Cable LONDON, -Aug. 1 A clear analysis of the Government's policy to China has been sent to Sir Archibald Clark Kerr, British Ambassador, to transmit to Marshal Chiang Kai-shek, says the Times. It shows that Britain's attempt to face the facts in North China does not mean that China is being let down. The Japanese currency demands cannot be accepted. France fully apprcei-

ates Britain's difficulties and the magnitude of the economic and strategical issues involved. The Tokio correspondent of the Times says the negotiations have reached the conflict phase. The Japanese insistence that Britain should prohibit the circulation of Chinese currency at Tientsin is aimed at discouraging the Chinese, and replacing their currency throughout North China by the yen. Britain, however.-is bound to neutrality, and cannot make the Chinese currency illegal. A message from Tokio says the economic sub-committee of . the AngloJapanese conference met for two hours to-day and adjourned this afternoon without reaching a decision. A communique issued in Tokio states that the afternoon's conference was concerned with the subject of the maintenance of peace and order in Tientsin. Some points of the proposals were referred to a joint sub-committee for a report. J

The procession to the British Embassy, attempted to jush in, but came into conflict with hundreds of, police. Public bodies at Chungking have cabled to Mr. Chamberlain urging the suspension of the Tokio conference and the abrogation of Britain's commercial treaty with Japan. They have also congratulated Mr. Roosevelt on the abrogation of the American-Japanese pact.

EMPIRE INTERESTS ANGLO-JAPANESE TREATY , , , CONSULTING THE DOMINIONS LONDON, July 31 "The Dominions must be consulted before it can be decided whether Britain should denounce her commercial treaty with Japan," said the Prime Minister, Mr. Chamberlain, in the House of Commons. Mr. Noel Baker (Labour —Derby), suggested an immediate consultation with the object of parelleling the denunciation by the United States of the pact. The Foreign Under-Secretary," Mr. R. A. Butler, said the Dominions must be consulted before placing an embargo on war supplies to Japan. Replying to Mr. Noel Baker, he repudiated the suggestion that Britain was not further supporting Chinese currency.

EXODUS FROM MANCHURUO LONDON, July 31 Trains from Manchukuo are crowded with wealthy Chinese, who fear that Russians will bomb Harbin, Mukden and other cities, says a message from Peking. .