CHINESE CRISIS

Southland Times, Issue 20111, 23 February 1927, Page 5

CHINESE CRISIS

HANKOW AGREEMENT FIRST FRUITS IN NORTH SHOWING WAY TO COMPLETE SETTLEMENT REORGANISATION OF RELATIONS (By Telegraph—Press Assn.—Copyright.) London, February 21. It is learned from authoritative quarters that the first fruits of the Hankow agreement appeared in Northern and not Southern China. Britain throughout treated both the claimant Chinese Governments alike. All her offers to reorganise the basis of her relations with China were equally and simultaneously made to both Mr Chen in the South and Mr Wellington Koo in the North, therefore throughout Mr O’Malley’s negotiations with Mr Chen exactly similar offers were made to the Northern Government. Hitherto Mr Wellington Koo contented himself with objecting to our negotiations with Mr Chen, but yesterday he summoned Sir Miles Lampson, advising that he was now ready to begin conversations on the basis of the British offer. These at present have not taken the form of con-

crete negotiations regarding any specific concession such as Tientsin. It will be left to Mr Wellington Koo to choose the subject of the preliminary discussions. This development can be properly attributed to Mr Wellington Koo’s desire not .to remain behind Mr Chen in conclusion of a reformed Anglo-Chinese agreement. In accordance with the Chinese people’s legu imate demands, they will be masters of their own household, and will not continue the special privileges for foreigners in their midst.

Furthermore, rt should be remembered that the Hankow Agreement does not represent the only little local settlement Official circles state that contact will be retained with the Cantonese for a discussion of the details arising from the Hankow agreement, and do not conceal the genuine desire that it will show the way to a peaceful settlement of all Anglo-Chinese questions on a liberal basis with Mr Chen, Mr Koo, and anyone eke who may establish a firm, authoritative Government in China. —A. and N.Z. TERMS ANNOUNCED. TWO CONCESSIONS TO BE RELINQUISHED. Shanghai, February 21. The Chen-O’Malley Hankow agreement provides for the dissolution of the British municipality by March 15, whereupon the administration of the concession area will be formally handed over to the new Chinese municipality. Meanwhile the policing of the concession and the management of the public works and sanitation are to be conducted by the Chinese authorities. Tie Nationalist Government will set up a special Chinese municipality, the administrative regulations of which will be communicated to his Majesty’s Minister by the Nationalist Minister of Foreign Affairs, the regulations remaining in force until the conclusion of negotiations for the amalgamation of the five Hankow concessions into one unified municipal district. - , The agreement relative to the British concession at Kiukiang is on similar lines to the Hankow settlement. If any direct losses, due to the action or culpable negligence of the agents of the Nationalist Government are suffered by British subjects during the disturbances at Kiukiang, such losses will be compensated by the Nationalist Government. Referring to the Hankow agreement a Nationalist Government communique says, inter alia, that the policy of the Nationalist Government is not to use force or countenance the use of force to effect a change in the status of any or all concessions and international settlements. The Nationalist Government has laid down that the changes in the status of the concessions and international settlements, wherever situated in China, are of such vital importance that no local Nationalist Government can negotiate with the foreign Powers concerned in respect of them.—A. and N.Z. BRITAIN’S AIMS. QUESTIONS IN HOUSE OF COMMONS. EXPLANATION BY SIR AUSTEN CHAMBERLAIN. (Rec. 9.45 p.m.) London, February 21. In the House of Commons, Sir Austen Chamberlain, replying to a series of questions relating to China, said Britain’s aim was to negotiate the treaties on the basis of leading ultimately to complete equality and reciprocity. A new administrative body at Hankow would be modelled on the existing one and would consist of both Chinese and British, Chinese having the casting vote. In this respect it would be a similar body to the Kiukiang. He had no definite news what arrangements the Pekin Government was making to collect Customs, but the Cantonese disputed Pekin’s right to exercise authority belonging to the Central Government. Britain’s recent proposals to China provided that Britons there would be liable to regular Chinese taxation, not involving discrimination against British subjects and goods as was in fact imposed upon Chinese citizens throughout China. Dealing with the position in and around Shanghai, he said the latest reports show Sun Chuan-fang’s troops were evacuating Hangchow, but at present there was no confirmation that the Cantonese had occupied the city. It was believed Sun Chuan fang intended to occupy a defensive position based on Kashing, 55 miles from Shanghai. The general strike involving poet office, essential services and cotton mills began on the 19th. The movement was reported to be spreading but at present there was little disorder. He was satisfied British lives Mid property would be sufficiently protected In all circumstances which were considered ivithin the bounds of possibility.

In a later statement, Sir Austen Chamberlain outlined the terms of the Hankow igreement in which connection Chen wrote to Mr O’Malley, ad\ising the promulgation tf certain regulations, of terms of which

the foreign office was at present pot aware. Mr O’Malley replied, assuring Chen Britain would do all in her power to complete and assure the successful operation of the scheme, adding that so far as the British authorities were concerned, Chinese citizens would enjoy the same rights as British subjects in the area. Chen replied that the Chinese authorities on their part would do the same and there would he no discrimination against British interests in the district. Chen proceeded to make a lengthy declaration concerning the settlement of outstanding questions with the foreign Powers by negotiation and agreement. This implicitly applied and was intended to apply to the changes in the status of the concessions and international settlements, and necessarily meant the Nationalist Government policy was not to use force or to countenance its use, but the Nationalists laid down that the changes were of such vital importance that no local or other Chinese authorities, except the Nationalist Government, can negotiate with the foreign Powers in respect thereto. Mr O’Malley’s reply, taking note of the foregoing, especially the final clause, said his Majesty’s Government cannot bind itself to refuse to enter into negotiations with Chinese officials in any part of China in regard to matters arising in areas where such officials are actually exercising de facto authority.

Sir Austen Chamberlain said he was not certain whether this was embodied in a letter or in a declaration. Chen earlier announced that a modification of the original plan for concentrating British forces at Shanghai, announced by Sir Austen Chamberlain was regarded by the Nationalist Government as a concession which made it possible to sign the Hankow agreement. Chen added that as this is without legal justification, the Nationalist Government protested against the landing and trespass of British troops at Shanghai, even for the strictly limited purpose stated by Sir Austen Chamberlain. Chen further declared the Hankow settlement was not intended to serve as a precedent for the future status of any British or other concession.

Sir Austen Chamberlain said he instructed Mr O’Malley to make it clear to Chen that Britain reserved full power to dispose of troops as may be necessary for the protection of British lives at Shanghai. The Rt. Hon. J. R. Clynes thanked Sir Austen Chamberlain for the statement and welcomed the announcement that the outstanding questions would be settled by negotiation.

Mr Lloyd George offered his warmest congratulations and asked whether negotiations had been opened either with Pekin or the local authorities in respect to the Shanghai concession.

Sir Austen Chamberlain said negotiations had been opened with Pekin, the Government to whom Mr Lampson had made a declaration similar to that made to Chen, at the same time reserving the right to negotiate with the de facto authorities in any part of China. We could not deal with the Shanghai international settlement in the same way as we could with the concessions belonging to U.S.A. Mr E. Thurtle asked: “Will the Government suggest to the other Powers they appoint plenary representatives to consider what steps might be taken in case certain eventualities arise ?” Sir Austen Chamberlain replied: “The fess said about eventualities which we hope may not arise, the better.”—A. and N.Z. REIGN OF TERROR. REFUGEES CROWDING TO FOREIGN SETTLEMENT. Shanghai, February 21. An awkward situation has arisen owing to the demand of Sun Chuan-fang’s headquarters that the provisional Chinese Court in the International Settlement should hand over 50 persons charged with assault on Saturday and Sunday to be dealt with by the military. The Chinese judge, realising that this would probably mean execution, finally remanded those charged. If he decides to hand them over, and the accused are executed, there is certain to be a Nationalist outcry against the International Settlement authorities (who are mostly British) for arresting the Chinese. Moreover, the knowledge that any Chinese whom they arrest for comparatively minor offences may be executed is creating a difficult problem for the British police. Four thousand employees of the Largest publishing house in China, the Commercial Press, walked out; while the Chinese papers are suspended, allegedly owing to a strike, but really because they fear their new r s and comments will incur the displeasure of the authorities on the one hand, and that of the strikers on the other. The strikers are somewhat subdued by the wholesale decapitation of agitators, or those suspected, by Sun Chuan-fang’s officials in the native city, where there is a veritable reign of terror, dripping heacTS hanging from most of the gates. However, this is affecting the strikers more than the leaders, who are mostly directing affairs from the settlement. It is estimated that those executed number between 30 and 100. Refugees are crowding into the foreign settlement. The latest information from the front is that Sun Chuang-fang’s army is definitely abandoning the Kashing line, and is falling back on Sunkiang, which means the evacuation of Chekiang. It is known that there are dissensions among Sun’s generals, and that the troops, though well paid, fed, and equipped, have no heart for fighting. Altogether, the outlook for Sun is gloomy.—A. and N.Z. MORE TROOPS ARRIVE. JAPANESE MARINES ON HAND. (Rec. 8.15 p.m.) Shanghai, February 21. The Second Battalion of Suffolks have arrived, and meanwhile the Punjaubis are returning to Hong-Kong. The Suffolks complete the Indian brigade of about 4500 men. The Punjaubis comprise part of the regular Hong-Kong garrison and came here merely as a precautionary measure until the arrival of the others. A Japanese cruiser and four destroyers arrived with 300 marines. The American destroyers are due any moment from Manila and the transport Chaumont, carrying 1200 marines from San Diego, is due on the 24th.—A. and N.Z.