Evening star., 1932-03-02

unacceptable and presented set OF
counter proposals.
Dispatches said the Cf..Ircse had as
sured Admiral Kelly that the terms
proposed were acceptable to them, but
they had not yet replied to the japanese
counter proposals, the foreign office
said.
The japanese counter proposals were
not disclosed, but 1t was said that ia
pans position remained unchanged since
the ultimatum Of Lieut.. Gen. Kenkichi
Uyeda on February Is, demanding that
the Chinese withdraw l212 miles from
the Shanghai front.
The official spokesman said that
whenever Japan was convinced that the
Chinese had evacuated the I2-mile zone
it would be ready to place all troops on
transports as quickly as possible and
return them to Japan.
He emphasized that Japan was not
insisting On keeping troops in Shanghai
during negotiations toward a perma-
nent solution.
The foreign Office instructed Ambas-
sador Koki Hirota at Moscow TO inform
l.. NJ Karakhan, Soviet acting foreign
commissar, that reports of the japanese
giving assistance to White" Russians
in Manchuria were entirely untrue"
On the contrary, the Ambassador
was instructed to say, japanese are
doing everything possible to curtaiI the
political activities of the anti-Soviet
groups.
The japanese consul general at Alex
androvsk, in Russian Seghalien, re-
ported to the foreign office that Soviet
forces on the island were being in
creased and that 600 fresh troops of
the Red army recently arrived from
the mainland.
Admiral Kelly's proposal for simul-
taneous evacuation of Shanghai by the
two armies provided for a Step-by-step
plan. The Chinese were first to fail
back to Chenju and the japanese to
retire into the International Settle
ment. Then the Chinese were to retire
to Nanziang and the japanese to go
aboard their transports.
japanese Are Adamant.
spokesman for the government
again denied that Japan ever accepted
any proposal for simultaneous with
draWal of Japan's troops, as Sir John
Simon intimated at Geneva. Japan ac-
cepted the principle OF mutual with
draWal, but not simultaneous
The government, he said. was ada
mant on its position that the Chinese
must evacuate the l2l2-mile zone be-
fore hostilitieS could cease.
He stressed the need for co-opera-
ton by the powers with Japan and
China in the proposed round-table con-
terence at Shanghai toward achieving
a permanent arrangement which would
obViate any further need for any power
to send an army there to protect its
nationals.
Without such an arrangement, he
said. ,J3nan nrnhahlV would he ~
PEELED TO send troops again and again,
regardless of dlSapproVal by other
countries. Failure by the powers to pro-
vide permanent guarantees at Shanghai
would be considered equivalent to a
recognition of Japan's right to send
expeditions there in the future. he
said. He added that Japan was ready
to leave the question of the boycott and
the anti-Japanese agitation in China
for consideration by the round-table
conference.
Bond Issue Causes Crisis.
The Japanese cabinet met in an ex-
traordinary session today to deliberate
over a difficult political problem which
has risen out Of the reluctance of the
PriVy Council to approve an imperial
ordinance authorizing an emergency
bond issue of 22,000,000 yen voted by
the cabinet February 26 to finance the
Shanghai expedition.
The council has not objected to the
appropriation, but it insisted that an
extraordinary session of Parliament be
called to approve the appropriation in
stead of further resort to imperial
ordinances.
The cabinet was understood to be
loath to summon Parliament at the
present time, in spite of the oyerwhelm
ing majority gained by the Seiyukai
party in the February elections. Cabi-
net members feared 'unwelcome dis
eussions" If the question were to be de-
bated, it was learned
Members of the cabinet began a series
of conferences with members of the
council in an attempt to win them over.
If these fail the belief was expressed
that Parliament would be convened
about March 15.