ISSUES IN CHINA

New Zealand Herald, Volume LXXVI, Issue 23431, 22 August 1939, Page 9

ISSUES IN CHINA

TOKIO NEGOTIATIONS ATTITUDE OF BRITAIN POSITION UNDER REVIEW THE JAPANESE DEMANDS By Telegraph—Press Association —Copyright British Wireless LONDON, Aug. 'JO The Foreign Office has issued the following statement clarifying the position reached in the Tokio talks. On .Time 27, as the result of an exchange of views between Britain and Japan, it was agreed that conversations should take place at Tokio in order to effect a settlement of various questions relating to present conditions in Tientsin. As announced by the Prime Minister, Mr. Chamberlain, in the House of Commons on July 24. preliminary conversations between Sir Robert Craigio, British Ambassador, and Mr. Hachiro Arita, Japanese Foreign Minister, began on July 15. At the outset of the discussion Japan expressed the opinion that, if progress was to be made in the removal of misunderstandings and the establishment of better relations, it was essential to recognise the background against which the situation at Tientsin should be viewed. Formula Agreed To By Britain In order to meet this view, Britain agreed upon the following formula: Britain fully recognises the actual situation in China, where large-scale hostilities are in progress, and notes that as long as that state of affairs continues to exist Japan's forces in China have special requirements for the purpose of safeguarding their own security and maintaining public order in the regions under their control, and that tlicy have to suppress or remove any such acts or causes as will obstruct them or benefit their enemy. Britain has no intention of coiintering any act or measures prejudicial to the attainment of the above-mentioned objects by Japanese forces, and Britain will take this opportunity to confirm its policy by making it plain to British authorities and British nationals in China that they should refrain from such acts or measures.

On the same day Conversations were begun at Tokio between .Britain and Japan, and certain proposals werd put forward by Japan as a basis for discussion. The majority of these proposals referred to police matters, and provided for closer co-operation between the authorities of the British Concession at Tientsin and the Japanese Army of occupation in North China for the purposes of suppressing terrorist acts and maintaining law and order. Economic and Financial Issues Inasmuch as these proposals do not affect the administrative integrity of the concession, and generally conform with the practice already in force at Shanghai, Britain has now made considerable progress toward an agreement, subject to a final settlement of certain points of detail. In addition to proposals on police matters, Japan put forward certain proposals, which included the enforcement by the British authorities of regulations prohibiting the use of the Chinese national currency within the concession, and the removal of certain silver reserves from the Concession at Tientsin and from the diplomatic quarter at Peking. It was at once apparent to Britain that the scope of these proposals was not confined to purely local issues in Tientsin, and that they related to other economic and financial features of the present situation in North China, including certain measures of restriction placed upon exchange and trade, on which the views not only of Britain, but of certain other Governments, already had been communicated to' Japan. It also became clear, as the result of a careful scrutiny of the position, that Britain could not, even if she wished, conclude a bilateral agreement which might affect the position of other Powers without the consent of those Powers.

For /this reason, Britain has come to the conclusion that it cannot, by itself, properly put forward or accept any proposals on matters of this nature, which might prejudice the interests of third parties. Britain, therefore, has intimated to Japan that no discussions' on economic proposals put forward by the latter can, in its view, lead to any useful result on a purely BritishJapanese basis. Britain, however, expressed willingness to examine the position afresh, provided the interests of all parties can be safeguarded. ° Treaty Revision Not Barred For this purpose it would, presumably, be necessary for both Governments to consult with and have regard to the views of third parties. Britain has indicated to Japan that it has no desire to shelve the questions which have been raised, and that it realises that these matters will require to be fully discussed in any ultimate settlement of the present dispute in Cliinn. Britain already has made it clear in a Note to Japan on January 14 that it does not regard treaties as eternal, and that it is prepared to consider any constructive proposals which Japan may have to make regarding a modification of the exisiting treaties. Britain considers lit; essential, however, that all parties to the NinePower and other treaties which govern tho situation in China shall be enabled, at an appropriate time, to express their views and make a contribution to a settlement which should be equitable J'or all concerned.