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Hokitika Guardian, 24 February 1927, Page 2

- Tiif. outlook in Southern China is the better because of Sir Austen Chamberlain's exposition of the situation. It is the final and official ultimatum of the signing of the agreement with ro-

' gard to which Air Chen has procrastinated for so long. It is not possible, as ■ yet. to assimilate at this distance all that the agreement infers or provides for. but we may take it from the remarks of Mr Clynes mi behalf of Labour, and .Mr Lloyd George, on behalf of the Liberal Party, congratulating the British Government, that matters are well in hand for a satisfactory adjustment, and for the restoration of British interests in- China. The detailed statement made !>v Sir Austen indicates that there was no sacrifice of British prestige, but a clean statement of what had been done, and the dignified manner in which the negotiations had been carried out. In particular Britain reserved the right to move her troops as might bo necessary for the protection of British lives. , In that connection it seems to have boon, wise for the British Government, to concentrate troops at Shanghai. The strikes and disorders which have broken out in the native quarters mitdit easily have extended to the foreign settlement were it not for the presence of a force ample to protect the European lives. England lias done all the Powers service, in that respect, and it is notable that other Powers are now concentrating on Shanghai with troops in complete imitation of the British policy. The negotiations with ATr Chen having culminated in an agreement to deal with an important area of China, it is not surprising to find l the Peking Government is stirring it- I self A similar offer has been made in *

that quarter, aiul it may be expected tliat the negotiations will culminate satisfactorily, for Eritain lias expressed the intention of treating all parts alike. There is no attempt to play ofT one part- of China against the other, or any effort to subvert any of the victorious parties to the discomfiture of the defeated forces. Britain offers plain honest diplomacy to all parties on an equal status, and that should he a lever to bring; the contending factions in China together again, and so secure the estahlishmet of staple Government. The settlement of outstanding negotiations by peaceful methods such as Britain proposes, must impress the Chinese who would not he prepared to face the stern reality of such a war as would he waged were Britain provoked to use force to defend her people and rights. Altogether the situation is generally very hopeful, and the improved outlook appears to have been brought about l>y the steady, set policy of the British to establish law and order in the disaffected parts, where English people were settled, by sane methods, and with a hacking of force equal to any possible emergency should the Chinese play Britain false.