Peace With Russia

Sun (Auckland), Volume III, Issue 867, 10 January 1930, Page 9

Peace With Russia

CHINA NOW FACES OWN TROUBLES F inancial Chaos Threatens HUNDREDS OF MERCHANTS RUINED UA\ ING made peace with Russia, China now faces serious * domestic troulvies owing to the collapse of her financial exchanges. The Government has already lost heavily. T nemployment is spreading and hundreds of merchants have been wiped out by the slump in the price of silver. Drastic State action is contemplated. United P.A.—By Telegraph—Copyright

Reed. 11 a.m. SHANGHAI, Thursday. There is clear evidence of the restoration of peace on the Chinese and Russian borders. A message today says that through railway traffic on the Chinese Eastern Railway, from Harbin to Manchuli, is being resumed, and martial law has been lifted. The inhabitants are returning in thousands. Hundreds of dismissed employees of the railway have been reinstated. Formal negotiations between China and Russia will open on January 25 at Moscow. The Nanking Government is considering measures to deal with the

chaotic financial and exchange situation created by the slump in the price of silver, which is bringing ruin to many foreign merchants and firms. There is panic among exchange speculators, and numerous suicides, including that of Sze-Chu-Nyu, nephew of China’s Minister at London, have been reported. Plans to halt the further importation of silver into China are being considered by the Chinese authorities. Officials estimate that the Government’s losses already amount to ten millions. Prices are soaring locally for imported goods, and hundreds of small merchants have been wiped out. Unemployment is spreading.