FAILURE ADMITTED

Wairarapa Times-Age, 29 November 1940, Page 5

FAILURE ADMITTED

JAPANESE PEACE FEELERS IN CHINA INVADERS AND THE PUPPET GOVERNMENT. NEW AMERICAN LOAN TO CHUNGKING. (By Telegraph—Press Association—Copyright) NEW YORK, November 27. The Domei (Japanese) news agency reports that Japan has abandoned her recent efforts to open peace negotiations with General Chiang Kai-Shek, and peace feelers will not be continued, as all efforts are fruitless. Recognition of the Nanking Government is imminent, and it is hoped that Japan will recommend that friendly Powers do likewise. In Washington today the chairman of the Import.and Export Bank, Mr. Jesse Jones, discussing a new loan to China based on the United States’ purchases of metals useful to her defence programme, said: “While the Chinese are in trouble we want to be friendly and help them. It is taken for granted, a 8.8. C. broadcast states, that the Japanese overture through the Wang Ching-wei puppet government for an armistice in China will be rejected by Chungking, in accordance with General Chiang Kai-Shek’s declaration that no armistice will be considered while any Japanese troops remain on Chinese soil. Since the outbreak of war, 440 industrial establishments have been removed to the interior of China. One hundred and twenty thousand tons of machines and parts have actually been sent inland from occupied territory.

TREATY WITH JAPAN TO BE SIGNED BY WANG CHING-WEI. MAKING CHINA A JAPANESE POSSESSION. (Received This Day, 9.15 a.m.) NEW YORK, November 28. The Shanghai correspondent of the Associated Press of America states that informed circles said a treaty was being signed at Nanking on November 30, between Mr Wang Ching-wei and Japan, pledging Tokio virtually to complete permanent control of China’s military and economic affairs. The terms of the pact are expected to be totally unacceptable to General Chiang Kai Shek. The Domei Agency reports Mr Wang Ching-wei, hitherto called ActingPresident, has been made full President by the Central Political Council, in view of the forthcoming signature of the treaty. It is reliably stated that the treaty is worded to permit of an interpretation favourable to Japan in all the important clauses. Firstly, it consists of nine articles, embodying general Chinese-Japanese relations on the lines of Prince Konoye’s declaration of December 12, 1938, in which it was said that Japan was prepared to respect China’s integrity and did not desire territory and would help to abolish foreign concessions and extra territoriality. Secondly, it covers Japan’s interests during the “transitional” period, provides that Japanese troops remain in China for two years after the restoration of complete . peace throughout China, extends the “anti-Communist” region, in which Japan’s troops are stationed, permanently to include North China, and provides that China pay reparations for all war damage to Japanese property. Thirdly, it provides that China shall control internal taxation and that factories and 'other properties now held by the Japanese shall be restored to the Chinese.

Finally, it consists of a declaration by China, Japan and Manchukuo, recognising the sovereignty of each. It is understood that the treaty does not mention the signing of an antiCommintern pact, probably owing to Japan’s desire to promote friendly relations with the Soviet. The treaty also deals with economic questions on general terms, but gives Japan all facilities in all matters affecting her war economy.

A foreign interpretation of this is that China will become a second Manchukuo, free to sell to others such products that Japan does not want, and free to buy from others what Japan is unable to supply.