Evening star., 1939-07-27

anese cotton cloth to the United
States.
British and Japanese conferees
today discussed economic aspects Of
their differences in China and ar
ranged to continue this phase of the
conference tomorrow morning.
Economic problems are among the
most important involved in the
negotiations growing out of the
Tientsin dispute, since they include
financial air hitherto given by
Britain to China and the question
of British acquiescence in Japan's
ambitious plans for North China.
The conference has failed to agree
concerning Japanese police rights in
British concessions in China. One
point under debate is what rights
shall be given japanese police to
enter the concessions.
Lacks Official Notification.
The foreign Office spokesman COM
mented on the basis of press reports,
since, he said, his government had
not received the official notification
OF termination. He disclosed the
, government had asked its Washing
ton Embassy to expedite details of
the decision.
Throughout the China incident"
Japan has professed a desire for
American friendship and particu-
larly during the recent difficulties
with Britain. Thus the moral effect
OF the termination was expected
possibly to outweigh the economic
effect.
The news from Washington took
Japan completely by surprise. A
belief hitherto had prevailed that
any proposal to terminate the treaty
would be defeated.
The stock market slipped slightly
but rallied to normal a few hours
after the American decision was
made known.
Some circles interpreted it as an
American effort to save face lost
by the British agreement on Japa-
nese right of way in China.
The Washington action followed
closely on last Fridays agreement
by Britain and Japan on a basis for
negotiation of their dispute at Tien-
tsin-an agreement which the Japa-
nese press and officials have indi-
Gated they considered as ending Brit
ish assistance to the Central
Chinese government.
Britain Denied Policy Changed.
In public utterances the British
government has insisted that the
agreement did not alter Britain's S
policy regarding China, which has
included financial assistance to Gen.
eralissimo Chang Kai-shek. The
agreement acknowledged that Jap
anese forces had special require
ments" for control of occupied ter
rltory in China.
Authoritative quarters reported
that new differences of an unspeci-
fed nature had arisen in the COM
mlttee negotiations to settle the
Tientsin dispute-a quarrel directly
traceable to refusal by British
concession authorities to deliver to
the japanese four Chinese accused
OF assassination.
After foreign Office COM
munique last night reporting prog
ress in consideration of Tientsln
peace and order questions, there
came Japanese reports of differ
ences necessitating a special meet
ing Of negotiating committees this
morning prior to the full session.
News of the treaty denunciation
created widespread excitement in
Shanghai and Tientsin, where
foreigners believed it was the most
important action by a neutral power
since the Chinese-Japanese conflict
started.
American and British businessmen
expressed enthusiastic approval.
Britons, many of them disappointed
with their own government Far
Eastern policy, appeared especially
pleased.
Informed circles expressed the
opinion that recent incidents in
which Americans were slapped by
Japanese sentries and other occur
enceS involving United States citi-
zens had provided the final impetus
for Washington to act.
The public in China was some
what surprised, since most Incl
dents involving Americans have not
been reported in the local press. The
Japanese military has made every
effort to minimize the incidents
whenever the news leaked out,