CHINA'S CIVIL WAR.

Poverty Bay Herald, Volume XLVII, Issue 15275, 24 July 1920, Page 3

CHINA'S CIVIL WAR.

ARMISTICE IN OPERATION. (Elcc. Tel. Copyright— United Press Assn.) .. PEKIN, July 21. The armistice is effectively operating, but attempts at mediation, have so far failed. Meanwhile the Anfuite military organisation is falling to pieces.— United Service". PEKIN. July 22. Fighting has been, suspended and the Premier is endeavoring to mediate. — A. and N.Z.O.A.

SYDNEY, July l-'i.— "phaos is reigning supreme m Chlnn." This statement was made liy'Mr. Arjhur N. Bishop, the Australasian manager of the Hongkong Mercantile Co., Ltd., who has travelled m China, ami is conversant with fche trading, Ami consequently .political condition.*, ol China to-day. , It "was not a statement made at random but substantiated by first-hand information. For instance, he has received th« following cable from his company's head-' quarters m Hongkong: "Owing to economic crisis *do ; not make us shipments, nor sell; do not buy or consign on speculations." This cable, added to the fact that mes-i sages have arrived from one of the largest banking concerns m the East, stopping all letters of credit, speaks for itself as rat as the seriousness of the situation as it affects Australia is concerned. Incidentally, the chairman of directors of the Hongkong Mercantile Co., Mr. Lav Chu £ak, besides being a millionaire and one of the biggest financial men m the East, is a member of the British Legislative Council m Hongkong. This fact adds considerable weight to the estimated gloominess of the situation. "If the two rival factions do come to" blows," said 1 Mr. Bishop, "then it vjill mean the suspension of all world trade with China." Apropos of this is the fact that Hongkong is the second largest port m the world, more steamers going m and out of there than any other port, with the one exception of London." Continuing his review of the position, Mr. J3ishop says: "It is evident that an economic crisis, such as has never been experienced m China before, is now a fact. It will irnean the suspension of all trade between China and Australia-" He points out that Hongkong is the "door"' of China, and if there is any serious trouble farther back' m China tn«n trade" with. Hongkong must cease,- meaning that all supplies would be cut on from China as a whole. The seriousness of this position, regarded from the Chinese viewpoint, is clear when it Is remembered that there are "very few, if any, manufacturing houses m China." Coming back to the situation as it most directly affects Australia, Mr. Bishop poin,ts out that ''Australian manufacturers have been hoarding up stuff m great quantities to export to China. If the present trouble lasts for any length of time, it will involve heavy losses to the Australian manufacturer^." Touching the root of the trouble, he says: "The Japanese have everything to gain by internal trouble m China. It would have the effect of* disorganising China even more so than is the case at the "present time. . The Japanese have been stirring up discontent m China among whatever class m which their interests lay."' Asked • whether, m his opinion, ins Chinese wanted war, Mr. Bishop was most emphatic in' denial. He says that the Chinese are, a naturally peaceful people. Ordinarily they- talk; they do not fightIn view of this national trait, Mr. Bishop regards the present position as most alarming. He also points out that there are no less than 40 dialects spoken, m China, giving an idea of the difficulties which will beset organised armies. ? Mrs- C,: E. White, the wife of a prominent man m financial circles, is a recent arrival. She 4s a resident of Singapore, and yesterday said: "If trouble does take place m Singapore, the bulk of the population of which are Chinese, it would be tremendous and very detrimental to British interests. .Furthermore, it would paralyse the rubber industry, and, lo a large extent, the tin industries also."