SOUTH MANCHURIA

Otago Daily Times, Issue 20868, 7 November 1929, Page 9

SOUTH MANCHURIA

MACHINERY FOR CONTROL.

CHINESE DISSATISFIED.

(United Press Association.)

(By Electric Telegraph—Copyright.) TOKIO, November 6. (Received Nov. 6, at 9 p.m.) At the Pacific Relations Conference the discussion on aspects of the Manchurian situation threatens a deadlock. The insistence by the Chinese on sovereign rights and their indignation at abuses arising from Japanese privileges led to a demand for the abolition of the principal parts of the machinery for the control of South Manclulcia. The Japanese stand pat on the sanctity of the treaties and put the Kwantung and South Manchuria railway' extended leases beyond question. The Japanese stress the economic aspect with the need of protection against possible Russian penetration into Manchuria, and the vital importance of the maintenance of the organic economic relationship between Japan and Manchuria, and the security of food, raw materials, and markets in both cases on their own premises. Their argument is unanswerable, hence little progress has been made, but a hopeful sign is the absence of bitterness and the growing recognition that the existing situation is unsatisfactory to both sides, hence the need of discussion and an attempt at compromise. The Japanese delegate, Mr Matsuoka, is again an outstanding figure in the discussions.