TALKS SUSPENDED

Gisborne Herald, Volume LXVI, Issue 20021, 21 August 1939, Page 6

TALKS SUSPENDED

TOKIO DECISION MUTUAL AGREEMENT BRITAIN TAKES STAND ECONOMICS AND CURRENCY OTHER POWERS INVOLVED (Glee. Tel. Copyright—Uni led Press Assn.) (British Official Wireless.) Reed. 1.15 p.m. RUGBY, Aug. 20. It is -announced that at a conference ir. Tokio ibetween the British Ambassador, -Sir (Robert Craigie, and the Japanese representative,. Mr. Kata, it was mutually agreed to suspend the Tientsin, talks. Britain in the meantime is consulting other Powers on currency questions in China.

The Foreign Office has issued a statement clarifying the position reached in -the Tokio talks.

“On June 27 as a result of an exchange of views l between Britain and Japan, it was agreed it ha t conversations should- take place at Tokio in order to effect a- settlement of various questions relating to the -present conditions at Tientsin," proceeds the statement. "As announced ‘by the Prime Minister. Mr. Neville Chamberlain. in it he- House of Commons- on July 24, preliminary conversations between the British Ambassador, Sir Robert Craigie, -and the Japanese Foreign Minister, Mr. 11. Anita, began on July 15.

“At the -outset of -the discussion Japan -expressed the opinion that if progress were to be made in the removal ol misunderstandings- and, the establishment of better -rela-tidns, it was' essential to recognise the background -against which ith-e situation at Tientsin should -be viewed. In order to meet this view Britain agreed upon the following formula: Appreciation of Facts “ ‘Britain fully recognises- th-c actual situation in China, where large-scale hostilities -are in progress -and notes, as long as that state of affairs- continues -to exist, that Japan’s' forces- in China have special requirements for the purpose of safeguarding their own security an.l maintaining public order m the regions under their control, and that they h-a-ve to suppress or remove -any such acts- or causes as will obstruct them or benefit -their enemy. Britain has no intention to countenance any act or measures prejudicial to the attainment of the abovementioned objects- by the Japanese forces and- Britain will take this- opportunity to -confirm its policy by making it plain to the British authorities and' British nationals in China that they should- refrain from such acts or measures.’ "On -the same day conversations were begun in Tokio between. Britain and. Japan.- and 1 certain proposals were put forward -by Japan -a,s- a basis of discussion. The majority of these proposals refer -to police matters and provide for closer co-operation between Ithe -authorities of the British Concession lafc Tientsin and the Japanese army -of occupation in No-r-th China for the purposes of suppressing terrorist acts and maintaining law and order -and, (inasmuch as these proposals do not affect the administrative integrity of the concession and generally -con-form with -the practice already in force at Shanghai, Britain has now made considerable progress towards- agreement, subject to a final settlement ,'o-n certain points of detail. Currency Issues

“In addition to the proposals on police matters, Japan put forward certain proposals) which included the enforcement hy ithe British authorities of regulations prohibiting the use of Chinese national currency within the concession and the removal of certain : liver reserves' from the concession at Tientsin and 1 from the diplomatic quarter at Pekin. “It was at once apparent to Britain that the scope of these proposals was not confined' to purely local issues at Tientsin and that they related' to other economic and) financial features of 'the present situation in North Chiina, including certain measures' of restriction placed upon exchange and trade, on which ithe views, not only of Britain, but of certain other Governments already had been communicated to Japan. “It also (became clear as a result of careful scrutiny of the position that Britain could not, even- if she wished, conclude a bilateral agreement which might affect the position of other Powers without the -consent cf those Powers. For this reason, -Britain has ccme to the conclusion that it cannot by itself properly put forward or accept any proposals on matters of this nature which -might prejudice the interests of third parties, and Britain, therefore, has intimated to Japan that no discussions on economic proposals piff forward toy the latter can. in its view, lead to any usdful result on. a purely Anglo-Jaipanese Ibasis. Britain, however, expressed willingness to examine the position afresh, provided the interests Of all parties can be safeguarded.