MANCHURIA

Nelson Evening Mail, Volume LXIII, 5 August 1929, Page 5

MANCHURIA

RAILWAY DISPUTE CHINA’S PROPOSALS FOR SETTLEMENT REJECTED BY RUSSIA ■United Press Association—By Electrlo Telegraph-Copyright) (Australian Prua Aasaatattwn) , SHANGHAI, 3rd August. 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 25th July, namely, restoration _ of the status quo before opening negotiations. Karakhian’s reply to Marshal Chang Hsuh-liang’s overtures declares that China’s attitude “creates a situation fraught with grave possibilities, the entire responsibility for which rests upon the Mukden and Nanking Governments.”

It is reported that Tsai Yun-Sheng, the 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—first, that the eastern railway be placed under exclusive Chinese control; second, that Chinese merchant ships' crews seized by Soviet gunboats be immediately released; third, that all Soviet employees on the eastern railway bo controlled by the Chinese director-general of the eastern railway; fourth, that both countries immediately halt military activities.

In the meantime, China offers to issue a formal declaration denying support to the White Russian movement.

Diplomatic circles at Nanking believe that the opening of formal negotiations between China and Russia in connection with the railway dispute is not likely to take place for sevei'al days, basing this view on the belief that the Soviet demands aro not acceptable to the Nanking Government.