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Hokitika Guardian, 25 November 1932, Page 4

Interest in the position in the Far East is continued by the reply of Japan to the report for a settlement of the Manchurian problem made by the Lvtton Commission, appointed to investigate by the League of Nations, whose main ■ points of the report aire:—Chin Ills sovereignty in Manohuria to be maintained, but the provinces to have a special administration, with a large measure of autonomy. Japan, although denied political or economic control in Manchuria, to have in practice, through advisers and the like, a big hand in the country’s administration, and to enjoy far-reaching rights, including ,an extension of thiei whole area of the right for Japanese to settle and lease land. Japanese and Chinese troops to be withdrawn as soon as an effective gendarmerie, with a, foreigner at its head, ha® been organised. A treaty of nonaggression to be concluded by the countries intersted (including Russia). Cli,ina to reserve control of foreign relations, Custom's, Post Office, and the salt taxes, and to appoint at least tli© first chief executive of the Manchuirian Government. The railway question to be settled by a working agreement, or an amalgamation of the Chinese and Japanese railway interests. It is proposed that, if the two countries agree to a settlement on these lines, the League should call a Conference in which they and the Chinese and Japanese populations of Manchuria will be represented. If the countries agree, neutral observers would be present,. It is suggested t\a+, the two Powers should agree that Mamhuria. should become a de,militarised area- .f the Soviet Government dies)res to participate in this understanding the appropriate clauses dealing with non-aggression and mutual assistance would he era tidied in a, separate agreement. The commercial treaty ,-hi.eld aim at encouraging the exchange of goods between China and Japan, while safeguarding the existing treaty rig *ts of other countries. It should 1 also contain an ! undertaking by the Ohir-sp ment to rooress boycotts against Japanese trade.