Neutral Shanghai

Hawke's Bay Herald-Tribune, Issue 182, 19 August 1937, Page 5

Neutral Shanghai

— Press Assn.-

many difficulties Japan is Not Likely to Agree SHIPS BEING DIVERTED

(By Telegraph-

-Copyright.t

(Received 11.45 a.m.) LONDON, Aug. 18. It will be understood that any projecl to exclude Shanghai from the war zone will throw great responsibility on the European Powers and America, as extensive guarantees would be demandec: by the Japanese and reinforcement oi European troops might be neeessary. The Domei News Agency indicates that well-informed quarters in Toliio do not believe that Japan will agree to simul taneous Chinese and Japanese withdrawal on a mere oral third-party guarantee that pressure would be exerted to malte the Chinese carry out their side of the withdrawal. The Chinese rejected a proposal for a neutral zone at Shanghai, contending that the English and Americans would not nse force if the Japanese committed a breach of neutrality. British shipping lines aTe refqsiug or discouraging cargo for Shanghai, and a movement is in progress for a point deeision for the omission of calls to Shanghai; It is estimated that 100,000 tons of cargo is at present en route to Shanghai. Diversions are already eausing congestion in Hongkong. The P. and O. Company has decided to discontinue calling at Shanghai for the time being. Cargo destined for Shanghai will be discharged at Hongkong. A message from The Hague states; Holland is concerned over the possible reaetions of the Far Eastern conflict on Dutcli interests in the Indies. The East Indies GoVCrnment is contacting The Hague regarding the dispatch, of warships to China from the Indies.