CHINA’S DISBELIEF

Gisborne Herald, Volume LXVI, Issue 20000, 27 July 1939, Page 5

CHINA’S DISBELIEF

COMPROMISE BY BRITAIN AGREEMENT WITH JAPAN C(JREENCY STABILITY 0 OVERNMENT DETER MIN ED (Tor Press Association.) WELLINGTON, this day. The Chinese Consulate-General 'has received a cablegram from Chungking stating that in an important address Marshal C'hiang Kai-Shek referred to the Anglo-Japanese parleys at Tokio and declared: “The crude stratagems and propaganda of the enemy are beneath our contempt. Even if we put aside al'l moral considerations and speak only in terms of gain and loss, we still cannot give credence to any possibility that Britain is really compromising with •Japan. “Britain is even better acquainted with Japan than we are. She knows well enough that Japan is no longer her Far Eastern watchdog of 20 years ago, but rather la mad dog turning against her former benefactor. “Although Britain much desires a peaceful solution, she can only make concessions such as will not conflict with China’s interests, nor with the provisions of the Nine-Power Treaty, otherwise she would be assisting the Japanese aggression and, moreover, helping Japan to destroy the NinePower pact. Britain herself is a signatory to the Nine-Power pact and America is still a more prominent and consistent supporter of it. Long-Established Relations

“It is unthinkable that Britain should faithlessly associate herself with the Japanese aggression and sacrifice 'her long-established relations with China and, ait the same time, cast aside her partner, America. Moreover, in both theory and practice, any understanding arrived at with regard' to China by the two Powers, acting without the Chinese Government's cognisance and approval, especially as such an AngloJapanese agreement, as now rumoured by the Japanese, can have no validity whatever and could, in fact, never be put into effect. “Intensified currency manipulations by the enemy and puppets resulted m the dragging down of the exchange rate by speculators. A temporary state of uncertainty ensued; but T wish to assure everybody that the Government will certainly maintain the value of the national currency and supply foreign exchange for the purpose of legitimate transactions and take appropriate measures to meet the situation

"As far as foreign concessions in China arc concerned, I have never been in favour cl' an indiscriminate supply lof foreign exchange to those doing business there, for this exposes our wartime currency to the injurious manoeuvres of the enemy and unprincipled speculators. In the interior, however, the Government unreservedly maintains the stability or the national currency and its exchange rate. “Commercial transactions will undoubtedly go on as usual under the conditions prescribed by Government decree, likewise the circulation of national currency in the occupied areas will unquestionably be maintained."