OUTLINE OF PEACE TERMS

Timaru Herald, Volume CXLIII, Issue 20925, 3 January 1938, Page 9

OUTLINE OF PEACE TERMS

JAPAN’S STERN DEMANDS

ECONOMIC CONTROL PLANNED

INSTANTLY REJECTED RY CHINA

United Press Association—By Electric Telegraph—Copyright I (Received January 2, 6.30 pm.) TOKIO, January 1. The German Ambassador (Dr. Von Direksen) has received the peace terms from the Japanese Government for presentation to the Chinese Government. The terms include an economic agreement at Japan's dictation, covering all China's natural resources, customs duties, foreign trade, aviation, transport and communications. China is asked to lay down her arms and sign an anti-Communist pact, with Japan

and Manchukuo and also recognise Japan’s annexation of Manchukuo. Permanent Japanese garrisons are to be stationed anywhere Japan chooses, and zones are to be demilitarised wherever Japan decrees. An Inner Mongolian Government is to be created independent of the Chinese Government. An independent North Chinese Government is also to be established. China will also have to pay war indemnities. CHINA'S PROMPT REPLY TERMS INSTANTLY REJECTED United Press Association—By Electric Tel egraph—Copyright (Received January 2, 6.30 p.m.) HANKOW. January 1. It is reliably stated that Marshal Chiank Kai Shek instantly rejected the Japanese peace terms. Marshal Chiang Kai-Shek, to enable his entire devotion to the duties of generalissimo, has handed over the Prime Ministership to his brother-in-law H. H. King, Finance Minister.

JAPAN’S GESTURE TO BRITAIN VALUE OF OLD FRIENDSHIP United r ess Association—By Electric Telegraph—Copyright (Received January 2, 6.30 p.m.) TOKIO, January 1. The New Year message issued by Mr K. Hirota (Minister of Foreign Affairs’, to the nation, gives pride of place to Anglo-Japanese relations. The message says: It is natural that Britain is concerned about China where she has extensive interests. Japan, in view of old friendships, did not mean to disturb British interests and hoped Britain would make an effort to avoid misunderstandings and rely on Japan’s intentions towards peace and the checking of the Red penetration in the Far East. Prime Minister's Message The Prime Minister. Prince Konoye, in a New Year message to the nation says: “The country must prepare for a long term battle to overcome resistance against Japan and free lhe Chinese people from the pressure she is suffering. Japan’s real intention :s to help China to return from her disintegrated self to her old self, thus affording an unshakeable foundation for progress and stability in East Asia. To this attitude sympathetic encouragement is forthcoming from progressive nations, but there is strong resistance and even pressure from a group who believe in the existing status. Japan - ill need a gigantic reservoir of national power to overcome this international difficulty.” Sacrifices Demanded New Year messages of all the members of the Cabinet to the nation re-emphasise the necessity for the utmost sacrifices for a prolonged Chinese campaign. “Dangertus Thoughts” The Tokio correspondent of “The Times” states that Baroness Ishimoto was imprisoned on December 15 in a round-up of 300 persons suspected of harbouring “dangerous thoughts.” She was released after being questioned.