EARLY CRISIS LIKELY

Dominion, Volume 34, Issue 43, 14 November 1940, Page 10

EARLY CRISIS LIKELY

Position In Far East ( Received November 14, 1.40 a.m.) Nl’AX' X'ORK, November 13. According to a message from its Shanghai correspondent to the “New York Times," everything points to an early crisis in the Far East, involving Britain, France. America and the Axis Powers. Germany is most active in engineering a (>eace between China and Japan whereby the Japanese will withdraw from the southern provinces of Kwangtung. Kwangsi and Kweichow. Should General Chiang Kai-shek refuse to accept peace on these terms, these provinces would accept, the leadership of Mr. Wang Ching-wei.

The correspondent adds that Britain and America are closely watching this Far Eastern intrigue, which will probably mean war unless a formula is discovered to satisfy Russia, Germany am! Japan. Germany wants Ute vital wolfram deposits in South China. Japan wants Malaya and the East Indies and Russia wants Manchuria and outlets to the Pacific.

Japan’s withdrawal from South China would permit her to concentrate on an advance to rhe south for which her navy is preparing, Russia and Japan are at present negotiating, with Russia in the strongest position. Japan has offered Russia the Chinese eastern railway from Harbin to Hsingking, though Hsingking is to remain in Japanese hands.