EASTERN RAILWAY

Hokitika Guardian, 6 August 1929, Page 6

EASTERN RAILWAY

CHINA’S PROPOSALS. •• (United. Press Association. —By Electrio Telegraph Copyright.) SHANGHAI, August 3. It is reported that Moscow has rejected China’s proposals for a settlement of the Eastern Railway dispute, insisting on compliance with the Soviet’s proposals of July 25, viz., the restoration of the status quo before opening negotiations.

Karakhan’s reply to Marshal Chang Jsueh Liang’s overtures declares that China’s attitude “creates a situation fraught with grave ■ possibilities, the entire responsibility - for which rests upon the Mukden arid Nankin Governments.”

ilt is reported that Tsai Yun Sheny Harbin Commissioner of Foreign Affairs, has' presented several demands to Meeiinikov, the Soviet Consul at Harbin, being preliminary conditions to the opening of formal negotiations. The first that the Eastern Railway be placed under 'exclusive Chinese - control, second that the Chiriese merchant ships, the crews of which were seized by Soviet gunboat, be immediately released; third’ all Soviet employees on the Eastern Railway be controlled by a Chinese Director-General of the Eastern Railway; fourth, both countries immediately to 'halt military activities. In the meantime China offers to issue a formal declaration, denying support to the White' Russian movement. • v . ■

Diplomatic circles at Nanking believe the opening of- forihal negotiatihris between China 'and Russia in connection with the railway ' dispute is not likely- to take place for several days, Lasing this view, on the belief that the Soviet demands are' hot ac-ceptable-to the Nanking Government.