IN CHINA

Hokitika Guardian, 14 November 1929, Page 7

IN CHINA

MARSHAL CHANG’S RIVALS.

(From SIR PERCIVAL PHILLIPS.)

The quarrel between China and the Bolsheviks over the seizure by the Chinese of the jointly administered' Chinese Eastern Railway on the ground that it was being used to disseminate Communist propaganda, has assumed even greater importance as an internal question and may lead to another break up of the administration of China.

The National Gvernment at Nanking, of which Cliiang Kai-shek is cho President, having nothing to lose ’s still putting obstacles in the way of a settlement with 'Moscow on the lines indicated in the recent verbal proposals [appointment of new officials for the railway, cessation of Red propaganda, and other questions.] One faction at Mukden, the Manchurian capital, which has everything to lose through the damage caused to busi ness interests in Manchuria, desires an early agreement, even if it involves the sacrifice of a certain amount of 1 re stige.

The dismissal of Lu Yung-kwan the president of the railway, omwhich Litvinoff, the Soviet Assistant Foreign Commissar, insists, but which Nanking refuses is no stumbling-block to Marshal Chang Hsueli-liang, tlie young Governor of Manchuria, who is reported to nave been long considering the wisdom of such a step on his own account,

A NEW ENTENTE.

Marshal Chang, who has never been

more than nominal in his allegiance to the Nanking leaders, has recently shown even less enthusiasm in that direction. He has formed a new entente

with the old Northern leaders, Feng Yuhsiang, the ‘‘Christian” general and Yen Hsi-shan, the War Lord of Shansi which is causing Chiang Kai-shek’s unstable Government acute distress. The anxiety of the National Govern-

ment is not diminished by the sudden demand made by Feng for the payment of £1,700,000 a.s compensation for the disbandment of his army in compliance with the desire of the Southerners'..

Nanking is demanding a drastic modi fication of the Mukden agreement for the operation of the Chinese Eastern Railway claiming that the Russians have been systematically looting its

receipts. Mr J. J. Mantell, railway adviser to Sun-fo, Nanking’s Minister of Railways is now at Mukden to lay before Marshal Chang details of these alleged peculations. He claims that the railway’s books, which are in a chaotic condition show that the Bolsheviks during the last four years have abstracted £5,000 000, of which about £3,000,000 disappeared during 1928. FURTHER. ARRESTS.

The situation is further complicated by the continued aggressive attitude of the Chinese authorities here, who have -been responsible for the seizure of the line and the arrest and expulsion of the Russian personnel. Despite the announcement that a satisfactory basis for negotiations has been reached at Berlin (where, as already stated, Chinese and Bolshevik representatives have been discussing the situation) they have made a large number of fresh arrests daily.

Their seizure yesterday of the meteorological bureau, hitherto operated by the railway on the ground that it belonged to a “cultural organisation' l in China, is a further indication of their determination t.O ignore the .move for peace which another equally powerful I'aetion in Mukden, in as close touch with Marshal Chang, as ardently supports.

Bolshevist troops are still concentrated on the north-western frontier and reinforcements are arriving from China,