The Waterbury Democrat., 1937-11-12
Japan Turns Dolvn
 Second Peace Offer
(Continued from k'aRe D

oordance with the stipulations of that treaty after Japan had been accused of having violated It's terms"
 This was a reference to League of Nations denunciation of Japan's course.
 since the present affair had It's origin in special conditions In East Asia," continued the note, "the most just and equitable solution could be reached through direct negotiations between the two parties who are directly and immediately interested" U. s. Joins Protest Washington, Nov. l2.-(UP)-The United Staets government will join other nations in 0 vigorous protest If Japan attempts to carry out an implied threat to take control of Shanghais International Settlement, 1t was reported today.
 Although the state department declined comment, 1t was known that officials here were perturbed by the remarks of Gen. rwane Mat sui, commander of the Japanese forces at Shanghai. He declared that he would take steps" if of- ficials of foreign governments and the municipal council of the Inter- national Settlement failed to "co- operate" in the Japanese occupa- ton of Shanghai,
 Acting Secretary of State Sumner Welles said that there would be no comment, ct least until the state department had received official reports of Matsuis remarks. The state department, he said, has re- ceived no complaints of no-coopera- ton as inferred by Matsui.
 To Take Decisive Steps
 It appeared certain that the United States will take decisive steps should Japan seek to control the Settlement or impose e censor ship of cables and malls. Since the outbreak of hostilities this gov ernment has repeatedly pointed out to China and Japan the inviola- bility of the International setle- ment.
 The Settlement contains the in- terests of l2 nations and the chief business buildings and homes of 30,000 foreign Nations. It Is the hub from which radiates most of this country's Oriental commerce.
 Under the treaty which guaran- tees the Settlement against invasion, each nation maintains a small army to guard Its property and Nationals. Troops VIII Stay In The United States, 1t was believed, has no intention of withdrawing It's troops despite possible entangle- ments with Japan. After the war began, U. s. troops in Shanghai were augmented by naval and ma- rine endorsements.
 Officials meantime watched close ly press dispatches from Europe re- Igarding the attitude of other nations with interests in the Settlement They showed considerable interest in dispatches from London saying that British soldiers would open fire immediately If Japanese troops att tackled the International Settlement
 Cold Shoulder For Tokyo
 Brussels, Belgium, Nov. 12.-(UP) -The far eastern conference, snubbed by Japan, decided today to give Tokyo the cold shoulder and abandon @ plan for @ final appeal" giving Japs lone more chance" to make peace with China.
 Japan rejected the conferences peace offers for the second time and the powers considered a final ap- pear backed by an international threat to aid China if Japan re- fuses to reconsider.
 They decided instead to prepare a statement giving summary of the conferences efforts to get Japan to enter peace negotiations, and to send a copy to Japan as signatory of the nine-power treaty.
 Appeal Useless
 The delegates felt an appeal would be useless and appear ridiculous in view of Japan's uncompromising re- ply. The conference will meet to- morrow for an informal exchange of views on the Japanese reply.
 Foreign Secretary Anthony Eden of Great Britain. Foreign Minister Won Delbos of France and others will make formal statements on the reply. The conferences next step will be to move to reestablish peace, perhaps by direct aid to China. thus putting collective pressure on Japan,
 The only means of applying such pressure which has been given serI- ous consideration so far has been fo supply China with arms. mu- nltions and credit.