WAR IN CHINA.

Waikato Times, Volume 103, Issue 17409, 23 May 1928, Page 7

WAR IN CHINA.

CHANG'S WITHDRAWAL. FAILURE OF NEGOTIATIONS. MAJOR BATTLE DEVELOPING. LARGE FORCES ENGAGED. (By Telegraph.—Press Assn.—Copyright.) (Sydney Sun Cable.) (Received May 23, 12.15 p.m.) TOKIO, May 22. Negotiations between General Chang Tso-lin and the Japanese Legation at Peking for Chang's orderly withdrawal into Manchuria appear to have broken down. The Foreign Office here states that General Chang's agent approached the Minister, Mr. Yoshizawa, at Pekin, nn Tuesday night, with a proposal that the Northerners would immediately withdraw Into Manchuria provided Japan would stop the Nationalist advance on Peking and guarantee that Ihe Peking—Tientsin area would not be allowed to fall under Nationalist control. Mr. Yoshizawa refused, declaring that such a step would be a violation of neutrality, General Chang Tso-lin's desire is apparently for a sort .of buffer State for the Peking-Tientsin area, which would be between the Nationalist domain and Ma<ichuria. War # Office advices substantiate this analysis, declaring that a major battle is already developing between the Southern and Northern forces, with preliminary fighting now under way between the Shansi army, which is part of the Southern attacking force, and the Northern troops. The War Office states that about 200,000 attacking Southerners along a line from Nankow pass around Peking through Paotingfl and Tangchow, which is about 60 miles southward from Tientsin. SHANGHAI, May 22. Japanese merchants having decided on retaliation for the Chinese boycott, yesterday decided to refrain from purchasing Chinese export goods until the boycott is lifted.