Imperial Valley press., 1931-10-14
Continued from page y

withdrawal of the submarines would
quiet any misapprehensions that
might exist in Japan.
Officials are awaiting the action
of the League of Nations council as
the most important avenue of hope
today in pacifying the Manchurian
situation. The state department
/ profeSSed also to be encouraged by
what is believed to be more con-
ciliatory attitude on Japan's part
although no basis for this feeling
was diyulged The Japanese en-
bassy said 90 per cent of the busi-
ness houses in Mukden. the capital
of Manchuria, had reopened as had
many provincial banks.
Still Deadlocked
The japanese and Chinese gov
ernments. however, appeared still
deadlocked. The Japanese repre-
sentative at Geneva was still insis-
tent that the difficulty be settled
/ by direct negotiations with China.
| The Chinese, on the other hand,
are insisting on action through tne
League covenant or Kellogg BRAND
pact and are objecting to direct ne
gotiations with Japan unless Japa-
nese troops are first withdrawn back
into the railway treaty zone.
The whole situation is regarded as
a critical test of the effectiveness
Of post war peace machinery in
preventing formal hostilities.
First word that American subma-
rines had moved from Tsingtao up
to Chefoo appeared in a New York
afternoon newspaper which de-
scribed the movement as bringing
American submarines close to Ja-
pans water route to Manchuria.
First inquiries regarding this report
were made by the United Press in
Washington.
The report took state department
officials completely by surprise. An
attache Immediately informed Sec
retary Stimson, who had heard
nothing of the matter. Simson
made hurried inquiry at the navy
department and ascertained the re-
port of the movement was correct,
but was told it was routine and had
not been ordered from Washington.
Meantime, Admiral Pratt had con-
firmed the report, but said it had
no relation to the Manchurian Sit
uation.
Uses Sailor Language
Its lust a damned lie put out to
make a sensational story" Pratt
said. The order for the submarines
to go to Chefoo has been issued an
nually for 40 years.
1t has not got a damned thing
to do with the Japanese-Chinese
situation. They just go there to
give the men shore leave"
Stimson reached Admiral Pratt on
the telephone and explained that
the submarine movement might be
misunderstood in Japan.
Admiral Pratt Immediately dis
patched orders and it was said the
submarines probably would be on
their way to Shanghai today.
The incident added to the nerv-
BUSINESS of officials here. Some had
described Manchuria as a powder
mine. Just two hours before the
submarine movement was disco
vered. one high state department
official said the greatest danger was
that some unexpected backfire, some
spontaneous incident. might set 4
match to the situation.
United Press dispatches from To-
kio meanwhile had pointed out that
the japanese had not misunderstood
the submarine movement, that the
date they would be in Che1oo was
published six months ago.
TOXIC. Oct. IA U.P)-Japanese
troops dispersed demobiliZed Chi
nese soldiers in Manchuria today as
the government announced 1t would
not evacuate occupied territory as
preliminary move for direct ne
gotiations with China.
A Japanese battalion broke up
concentration of 5000 demobilized
Chinese near Chuiliuho without in
cident.
Government quarters understood
China had instructed Chang Tso-
Pin to discontinue conversations
with Foreign Minister Baron Shide-
hara, on the grounds that China's
position before the League Of Ma
tions council might be prejudiced.
It was learned the government
was considering a request to the
League of Nations to send q COM
mission to study the situation in
China. Japan refused to sanction
the Chinese suggestion that
league commission investigate con-
ditions in Manchuria.
SHANGHAI, Oct. IA. U.P) - The
Canton government news agency
reoOrted TODAY that an agreement