CLOSELY WATCHED

Southland Times, Issue 20525, 29 June 1928, Page 7

CLOSELY WATCHED

EVENTS LN CHINA

STATEMENT BY FOREIGN SECRETARY POSTAL ADMINISTRATION (United Press Assn.—By Telegraph—Copyright.) Rugby, June 27. Questions bearing on various phases of the situation in China were answered in Parliament by Sir Austen Chamberlain. He stated that a representative of Dr. Wang, Minister for Foreign Affairs, recently in formed the British Minister that there was a sharp divergence of opinion in Nationalist circles regarding the transfer of the capital from Pekin to Nanking. The question would be discussed at a plenary session of the political council to be held in the middle of July. The interested foreign representatives at Pekin were closely watching the situation regarding Chinese postal administration in view of the curtailment of the powers of the French co-director-general. The Pekin-Nanking agreement of February 6 provided for joint operation of the northern and southern sections under two Chinese directors-general at Pekin and Nanking respectively. Protests were lodged by the diplomatic body against this breach of the Washington assurance of 1922 that the Chinese Government contemplated no change in postal administration so far as the foreign co-director-generai was concerned. As a result of recent developments in China it was now proposed that the post of director-general at Pekin be abolished and that postal affairs be controlled by the direc-tor-general at Nanking involving the transfer of the administration (here. The senior Consul at Shanghai was on June 15 advised that the president of the provisional court had been asked by the Kiangsu provincial Government to hand over the duties of his office to the new appointee. The dismissal of the president was being opposed by the consular body as a violation of an assurance annexed to the rendition agreement that judges would enjoy immunities and securities of tenure provided for by Chinese law.

Questioned regarding the position in Manchuria Sir Austen Chamberlain said that on June 20 Marshal Chang Tso-lin's son, Chang Hsuehliang, took over the post of chief military commander at Mukden and Chang Tso-lin died at midnight on the 21st. Apart from this there had been on change in the political situation in Manchuria. He was unaware of any threat to British commercial interests in that province but developments were being closely watched. Orders had been issued by the Nanking salt administration inspectors at Tientsin and at Chefoo directing that from June 3 all payments issuable by those officers be temporarily deposited with various Chinese banks to he taken over by an officer appointed by Nanking. Sir A. Chamberlain said that the orders entirely ignored the authority of the foreign associate chief inspector and were in complete disregard of the procedure laid down in the reorganization loan agreement for fulfilment of obligations secured on salt revenues. The British Minister at Pekin had conveyed a warning to the Minister for Foreign Affairs at Nanking of the irregularity of this action and discussions between the associate chief inspector and the Nanking authorities were proceeding.— British Official Wireless.