CHINESE TROUBLE.

Hokitika Guardian, 7 February 1927, Page 2

CHINESE TROUBLE.

NEW PROPOSALS FOR CAN-

TOXESE

[by TELEGRAPH —PER PRESS ASSOCIATION.]

SHANGHAI, Feb. 4

British proposals have been handed to Air Eugene Chen (Canton Foreign Alinistcr )at Hankow, accompanied by the following “aide ineniorie “When a satisfactory settlement has been reached in respect of the British Concessions at Hankow and at Kuikinng, and when assurances are gnen by the Canton National Government that they will not countenance any alteration, except by negotiations, of the status of the British concessions, and the international settlements, then His Alaiesty’s Government will be prepared to concede, at once, on the lines indicated in the enclosure hereto, a large part of what is desired of them by the Chinese Nationalist Party. So liberal and generous a step cannot, in their view, be regarded otherwise than as an earnest of the fair and conciliatory spirit with which they are animated.’’

COMTNG SHANGHAI BATTLE. WASHINGTON, Feb. o. The U.S.A. State Department conlinns reports from China that the American Alinistcr, Air AlacAlurray, has proposed to the warring Chinese factions that the Shanghai international settlement should be exempted from the zone of military operations. The result of ATr ALacAliirray’s presentation of this plan to Chang Iso Lin has not yet been received. The Cantonese forces are understood to favour the proposal, though no definite assurances have yet been given.

The proposal is not technically a neutralisation plan, because it does not specify guarantees for the zone, nor provide for the evacuation of the native city of Shanghai by the Conservatic forces of Alarshal Sun, the ally of Cluing Tso Lin, but it is believed the arrangement would lessen the danger to the foreigners from the anticipated coming battle between the Conservatives and the Nationalists.

U.S.A. FORCES AT SHANGHAI . WASHINGTON, Feb. 4.

With the announcement that ConsulGeneral Gauss at Shanghai has advised all American women and children to withdraw from China’s interior before the lines of communication are broken in the Shanghai district, and that Admiral Williams’ forces now total sixty vessels, ten thousand bluejackets ail'd 3.500 marines, it became known that the Chinese Minister, Mr Sze. had inquired of the State Department the purpose of the movement of the additional American forces in Chinese waters.

It is understood that he was informed that the steps were precautionary, and that there was no intent to make a landing, unless forced to protect Americans.

It is also reported that Air Szo wished to inform his Government of the situation, and possibly to anticipate any protest that might be made. CHURCH ILL’S VIEW. LONDON, Feb. I. “I do not believe that there are tiny grounds for grave anxiety in the Chinese situation,” said Air Winston Churchill, when speaking as the guest of the Alanchester Constitutional Club. “We have sought nothing ill China, hut we are able to sell to the Chinese goods which they desire, and we receive in exchange, therefore goods useful to ourselves. AVe regard the four hundred millions of Chinese as potential friends and customers. 'The last thing you usually do to a potential customer is to shoot him. The last thing wishable is that a potential customer should shoot you. I believe, that, supported by the public will with patience and self respecting firmness, we will procure a great amelioration in the Chinese position before the end of this vear.

RUSSIA AND BRITAIN

TRADE RUPTURE

LONDON. Feb. 5

An agitation by a section of the press in England in favour of the abrogation of the Anglo-Russinii trade agreement is apparently causing some uneasiness in Aloseow. judging by a lengthy statement; made by the Acting-Foreign Commissary. Af. Lithvino.ff, and transmitted from Moscow.

Reviewing the situation in China, Af. Lithvinoff professed to regret that the coupling of penco negotiations with threats of intimidation and military intervention had caused a Breakdown. He asserted the British Conservatives are now trying to shift their own mistake on to the shoulders of the Soviet Government, hv a ridiculous legend that the Chinese Nationalist movement is due to the machinations of Soviet agents. The Soviet Government sympathised with the Chinese librative movement, but it nowise follows that it lias recommended the Canton Government to strain its relations with Britain, or that it should stand in tlie way of a peaceful agreement with Britain. Af. Lithvinoff declared the Soviet Government never forgot its obligations under the Angln-Bussian treaty of 1921. The straining of Anglo-Russian relations would bo to blow the interests, not only of the whole of Britain, but also to those of the very financial and industrial groups which were now most loudly demanding a rupture of relations.

MUSSOLINI BACKS CHINESE WAR ROME Feb. 4.

It is reported that Italy sent a Note to the British Government, endorsing the latter’s Chinese policy, maintaining rigifts and power to defend her interests in China. PARIS, Feb. 3.

The possibility of Italy joining Britain in military precautions in China is being widely'discussed in the press here. , ... , The Leftist organs comment bitterly on the prospect. M. “Prestinax ’ in the Echo de Paris says: ‘'The defence of Shanghai is natural enough, but France’s abstention may lead to hoi isolation in Europe. Signor Mussolini, who never risks much lias promptly assured Sir Ronald Graham (British Ambassador) of Italy’s co-operation He is profiting from the events with the puino.se of obtaining an agreement as to what of the Mediterranean his note-of-hand may be cashed in.”

TO ATTACK GOVERNMENT’S POLICY. LONDON. Feb. 3

Mr Poolev, the newspaper correspondent writes: “At the opening or the German Parliament, wliat Marx calls the “Cabinet of verbiage” will have' to face criticism by both its supporters and oppositionists. The most prominent subject during the debate on the Ad-dressin-Reply will be China, upon which Labour is moving an amendment. Sir Austen Chamberlain will lie sharply criticised by Imperialists on both sides of tho House to the effect that he subordinated British interests to an enthusiasm for the League of Nations, hut from Labour and the Liberals will become a massed attack. which will be grounded on the alleged subordination of the usefulness of the League of Nations to the care of British interests To this lie can reply, that, when in office, Mr Ramsay MacDonald in Egypt, and Mr Llovd George in Clianak. adopted an identical policy. Both of the Opposition parties would like to fight on the fiimer ground, but there is not a safe common ground except, possibly that ot China, upon which they are united.

LABOUR AND CHEN. LONDON, Feb. 4. The Nntioual Joint l.aboucl Council telegraphed Chen expressing gratification at his assurance that their message enabled a continuation of the negotiations which the Labour Party firmly supports, and hopes that the parties concerned will make possible. JAPAN ANXIOUS, U TOKIO, Feb. 5. It is reported that the Chinese Nationalists arc planning to seize the Hanyehnning iron mine, above Hankow. This is vastly worrying the Japanese, who see therein the first heavy anti-Japanese blow This mine is practically the sole source of the pig iron for Janan’s Government steel plants, wherein hundreds of millions are invested. Japan’s interest in the mine hi safeguarded by a treaty, forming an 2 important part of those interests in China which AT. Shidehara declared Japan must nrolcct. M TOKA'O. Fob. 4. The Foreign Office Is now considering B the Pekin draft treaty, in which China I franklv sets out her desires regarding future relations. It is understood that the Government regards the draft ns whollv negotiable. China’s proposals are drastic. Nevertheless there Is reason to believe that they will he generally acceptable. The final decision depends on the outcome of the AngloSino situation. /' Well-informed circles now fear complications at Shanghai, pointing that simultaneously united China protests were received from Peking, Shanghai and Hankow against the invasion of British defence forces. Notwithstanding the pro-British movement in the Upper House, seeking active naval and military co-operation, the Government’s position is adamantly maintained.

THE CHINESE POSITION. CABI NET CONSIDERATION (Received this day at 8 0.m.) LONDON. February 6. , The Cabinet spent the week-end in close touch with Lampson and O’Malley and important decisions regarding the disposal of British defence troops who are expected to arrive early in the week. The “ Observer’s ” diplomatic .correspondent says so far as the British Government is concerned the chief policy is to lihrate China from the obsolete system of virtual foreign supervision and control. Secondly, to protect life. In the transition stage any step on the part of Canton or Shanghai Governments towards assuring the safety of foreigners in Shanghai would he welcomed. There is no present intention breaking off relations with Russia spite of the undoubted part she play- v cd in stirring up anti-British feeling, but the question of dealing in some other way with the persistent hostility of Moscow is engaging Cabinet’s attention. It is understood that while the Cabinet does not contemplate the breaking off of commercial relations with Russia. Cabinet may he embarrassed in Parliament next week, when one hundred and twenty Conservatives to raise the Russian issue and demand the withdrawal of privileges.

Cabinet lias considered the proposal to divert troopships to Hong Ivong, / but the Australian Press Association gathers it is improbable an immediate decision will he reached on this point, because the transports have only left Gibraltar, so their destination need not he finally decreed for at least a fortnight. It is not a matter easily decided, because consideration has arisen that the diversion of troops may bey wrongly interpreted, and he hailed as a further blow at British prestige in the aEr East, hut the stronger eoiisidera % tion is whether Clien is in a position after wliat has happened at Hankow, to guarantee the fulfilment of the pledge that no harm shall befall foreign nationals in Shanghai and thus obviate the need for providing a barTier between the mobs excesses and British nationals.