NEGOTIATIONS BROKEN OFF

Wairarapa Age, 3 February 1927, Page 5

NEGOTIATIONS BROKEN OFF

NORTH AND SOUTH CHINA UNITING. PROTESTS AGAINST BRITISH POLICY. A SIGNIFICANT SPEECH. (Received Wednesday, 7.55 p.m.) PEKIN, February I. Chen has broken off negotiations refusing to sign an agreement when British armed forces are concentrating in Shanghai. Britain’s action in sending large naval and military forces to China is promoting a union of North and South China against foreign aggression, despite the recent magnanimous British proposals offering the return of foreign concessions, Customs autonomy and the revision of. treaties.

It was originally believed that the proposals might entice the support of the Pekin Government, but an opposite reaction is to be observed, as was shown by the speech of Chang Hsueliang, son of Marshal Chang-tso-lin, tho powerful Manchurian war lord, who said: “If foreign aggression in China continues, every Chinese, Northerner and Southerner, will rise together to defend the country. The present is the time when all should awake, forget civil conflict, and combine to fight the foreigner. If the British attempt force I am sure every Chinese will rise in support of the country. It may be that this is a chance to bring the civil war permanently to an end and unite tho country. The British are sending a big squadron to China’s inland waters, seeming to think that by holding our throats they ■will prevent us from breathing. If there is more ill-treat-ment, we shall ask North and South to join and devote our entire energy in face of the foreigners.” The speech is regarded as significant in Chinese circles in view of Chang’s well-known hatred of the Cantonese.

Additional significance is attached to the speech by reason of the recent statement issued by Dr. Wellington 800 warning Britain to withdraw the forces en route to China. Foreign residents in the environs of ■Shanghai have been officially ordered to enter the protection of the settlement immediately. Local Britishers are unable to understand Britain’s behaviour in relinquishing all treaty rights, and simultaneously despatching large forces to China. The latest local development is that the Chinese authorities in Shanghai have protested against the erection V huts to accommodate the British forces in the territory dually controlled by the settlement and Chinese authorities. Accommodation now presents a serious difficulty. CUSTOMS AND LOANS. Consternation is felt in financial circles in Shanghai at the dismissal of Sir Francis Aglen (Inspector-General •of Chinese Maritime Customs). Stockholders in Chinese loans amounting to hundreds of millions of dollars, are alarmed, despite the Cabinet’s assurances that all foreign loans and indemnities will be not impaired. The Customs are the sole guarantee for tho repayment of loans, and the dismissal of Sir Francis Aglen is regarded as preliminary to the seizure of the Customs. —(A. and N.Z.) NO OFFICIAL CONFIRMATION. OF BREAK IN NEGOTIATIONS. (Received Wednesday, 8.30 p.m.) LONDON, February 2. Official circles are unable to confirm the report from Hankow that Chen has broken off negotiations with Mr. O’Malley on the ground that no agreement is possible while British armed forces are concentrating at Shanghai. On the contrary, the Foreign Office affirms that negotiations are proceeding and that no news of any sort has yet been received giving a hint of rupture. Well-informed circles believe that even if the report is correct, the rupture will only be temporary. Chen is unlikely to persist so far as to provoke a final breakdown, especially in view of the large measure of approval won from many countries by Britain’s conciliatory policy. • The dismissal of Sir Francis Aglen by the Pekin Government is officially confirmed. It is explained that Sir Francis Aglen faced difficulties in tho collection of surtaxes without the consent of all the Treaty Powers. So far only Britain and Belgium have formally consented to the surtaxes. Official comment is withheld in the absence of fuller information.

The newspapers ass||.ne the accuracy of the Hankow report that negotiations have broken down. “The Tinies” emphasises the necessity of refraining from attaching undue importance to incidents in China at present, owing to the state of chaos prevailing in the country. It is fortunate that the British Government has decided upon 4 clear and elastic policy adapted to the difficult period of transition. Events in the Pacific are becoming as vitally important as affairs in Europe hitherto. Figures prepared in Geneva show that the economic centre of gravity of the world is gradually being transferred from the Atlantic to the Pacific, and China cannot fail to play a great part in these new developments. “The Times” concludes: “The question has to be faced whether we are dealing with a section of China whose national aspirations Britain has gone far to meet, or with the trickery of Bolshevik conspirators.”—(A. and N.Z.) NOT SUITABLE FOB LEAGUE ACTION. VISCOUNT GREY EXPLAINS. (Received Wednesday, 7.20 p.m.) LONDON, February 1. “While Sir Austen’ Chamberlain’s speech commanded the assent and approval of the world, he does not mention the function of the League of Nations,” said Viscount Gfey. “The reason is that the Chinese difficulty is not suitable for League action, (1) because civil war prevents League intervention under a clause expressly stating that it is not intended to deal with internal affairs; (2) because tho Nationalist policy has been considerably influenced by the Moscow Government, which avowedly is hostile to the League, therefore the Cantonese would regard the introduction of the League as a hostile, challenging gesture.” Viscount Grey exhorted the Government not to take strong action and to restrain the use of force till the last moment and then use it only in defence of British lives and propertv.—(A. and N.Z.)