Little Hope

Hawke's Bay Herald-Tribune, Issue 183, 20 August 1937, Page 5

Little Hope

^—Press Assn,

NEUTRAL SHANGHAI Japan Would Need Strict Gnarantees CHINA REFUSES

By Telegrapri

— Copyright

(Eeceived 20, 10.40 a.m.) LONDON, Aug. 19. THe latest mcssages i'rom Cliina and ifapan ho!d out little hope lor a successt'ui issue in the tiegotrations on tbe British proppsal for a neutral zpne at Shanghai protected by an international 1'orpe. China, it is reported, will reject the proposal because she is convinced that British, American and Frejicli troops who would occupy the zone would never use force in thq ovent of n Japanese breaoh of its netrality. Japan, on the other hand, declare* that the proposal bristles with difiicultJos, espeeially regarding delinite assurances tliat her nationals would /bc adequately safeguarded. The protec tion of Japanese intercsts in the Settleuient must, therefore, for the time being at any rate, remain in the hands of the Japanese naval and, military authorities, The Paily Tclegraph's diploiuatle eorrespoudent says that whatever ha)». pens, the British Government will never completely evacuate the SettJcraent, which would irreparably daiuage British prestige througliout the Jfur East.

Means for bringiug to an end the dangerous situation at Shanghai have tequ undep discussion for poxnu days, bcth betryeen the" British and other diplomatic conselar and military and naval authorities on the spot, and by theip home Governmeuts (reporta a British Official Wircless mcssage). De iinitq proposals have now been addressed by the British GQvernment to the Chinese and Japanese Government. Details of the proposals are not avail. able, but it is undcrstood that in the British viqw the essentials of any seheme for isolation of the Internu--tional Settlement from the theatre pf any Sino-Japanese hostilities are: First, the mutualiy-agreed exclusion of Japanese and Chinese military and naval

iorces from a zone including and surrounding Shanghai, and, secondiy, to givq coniidence to the Japanese for the safety of their nationals ou the oue hand and to the Chinese against the use of the International Settlement as a military base on the other hand, that the protection of Japanese in Shanghai should be entrusted to the other foreign contingents in the Settlement, acting m concert.