STALEMATE REACHED

Wairarapa Times-Age, 17 June 1939, Page 7

STALEMATE REACHED

NO HOPE OF AN EARLY SETTLEMENT UNITED STATES ' CAUTIONS adjustment by arbitration desired. TWO CHINESE SHOT IN TIENTSIN. By Telegraph—Press Association —Copyright. LONDON, June 16. Ihe British authorities in Shanghai declare that complete stalemate exists in Tientsin, and there , is no reason to hope for an early settlement. The Japanese army journal “Smshunpao” states that Japan is forced to deal a direct blow against Britain and that Japan is unwilling to suppress anti-British movements in the occupied areas. The Board of Trade in London was asked yesterday to report what reprisal measures might be taken, and subsequently experts submitted to the Foreign Office proposals for economic retaliation against Japan. The Government is unwilling to take drastic action until other methods have been exhausted. The Washington correspondent of the New York “Times” says the United States is exchanging views with Britain, France, and Japan, and is looking to the adjustment of the controversy in Tientsin, preferably though arbitration.

AMERICAN CONCERN. The United Press of America says that the United States has expressed concern to Japan regarding the blockade of Tientsin. A State Department official disclosed that it was delivered verbally to the Japanese Foreign Office in Tokio three days ago. It was neither a representation nor a protest, ' and was not accompanied by any threats of reprisals. The United States expressed concern for both her nations and her holdings in the area. It is reported from Paris that the Japanese are relaxing the blockade of the French concession. The Tientsin correspondent of the Domei News Agency, in an inspired dispatch, suggests that the crisis might be ended if Britain agrees not to interfere with the hew order in North China, agrees to release silved valued at £2,500,000 sterling held in the concession on behalf of the Chinese specie banks, undertakes joint sppression of the terrorists, surrenders the four assassins, and agrees to the reorganisation of the administration of the concessions. The Tokio newspaper “Asahi Shimbun” says the Government strongly supports the measures taken in Tientsin. and adheres to a policy of realising Japan’s fair and just conviction to the letter. The inner Cabinet meeting this afternoon will discuss further measures. Residents of the British concession in Tientsin were awakened early this morning by an outburst of firing from the Japanese area. Anxiety as a result of the Japanese threats to make the blockade more unpleasant increased when it was learned that two Chinese caught handing vegetables over a barricade had been shot as a lesson to others. The third day finds the imprisoned residents of the concession more perturbed. Food is steadily running out, despite meagre supplies of vegetables and milk brought in overnight. Only cold-stored meat is available, tariy shoppers found the general provision markets almost denuded, and rhe price of the remaining stocks almost doubled. The situation is not helped by the action of the majority of British subjects in Tientsin in moving into the concession in order to avail themselves of the protection of British troops and to avoid attacks by Chinese mobs. The effects of the blockade are noticeable outside the concessions, where the prices of flour and rice are soaring because most of the local stocks are still in the warehouses within the concession. Still smarting under their indignities, the British subjects are not venturing outside. Japanese agitators continue to stir up the population outside the concessions. Several persons visited laundries in the German concessions cat-

ering for foreigners, abused the owners and employees and scattered clothing on the ground. A minimum number of Chinese were permitted to pass the barricades. The Japanese forced batches of those waiting at the searching posts into lorries and drove them off for work elsewhere.

TRADE REPRISALS DEFIED BY JAPANESE PAPERS. TOKIO, June 16. The evening papers declare that the reports of reprisals proposed by Britain are a bluff and that even if they were carried out Japan can retaliate by boycotting Indian cotton and Australian wool, making Britain the loser. Japanese commercial leaders are credited with declaring that if Britain brings pressure to bear on Japan economically her China trade will be driven out.

THROUGH THE BLOCKADE BRITISH SHIP REACHES TIENTSIN. (British Official Wireless.) RUGBY, June 15. It is reported that the steamer Taisenhong, chartered by Messrs Jardine and Matheson, Ltd., arrived in Tientsin today in safety. She is the first vessel flying the British flag to reach the city since the enforcement of the blockade.