Chinese Junk Sunk by Japanese—Maneeuvring for Elections—Penury and Panic By Rodney Gilbert, Peking, Jan. 5.
After much delay, due to investigation, the Chinese Government has finally despatched a note to the Japanese Government demanding an indemnity for the sinking of a Chinese junk on the Amur at the village of Maga last June.
After the Nicholaievsk affair -the Chinese residents of the burned city were towed up stream by a Chinese gunboat and established for safety's sake at Maga in a refugee camp. The Chinese naval men then chartered a Chinese junk to carry fire wood and other supplies. On June 2 near Maga a Japanese vessel sank this junk and 34 persons Were drowned, among them some Chinese sailors from a man-of-war. The Japanese assert that a blank shell was fired to warn the junk to heave to and that when this signal was disobeyed the boat was sunk. The Chinese now insist that there was no signal and that the junk was sunk without provocation or warning. On the basis of this claim Chinese now demand an apology from Japan, the punishment of guilty Japanese officers, a solatium for the families of those drowned, and an indemnity of $150,000 for material losses.
There is a great deal of gossip in the Chinese press about the coming parliamentary elections. Depending upon what paper you read you hear of the preparations made by the Chiaotung Clique, by the Yen Chin Hsi (Chinputang), by the Chihli_ party, and by the new military faction. in which the major figures are Chin Yun-peng, Chang Chih-tan, Chang Tso-lin and Pan Fu. Going beyond the parliament tary elections the papers are already speculating upon possible candidates for the vice-presidency, While the press is thus engaged there is a great deal of gossip in the Ministries upon much more serious topics and upon topics which are vital to the whole official caste. For instance no Chinese in his sincere moments can suggest a financial] ''way out' for this Government or any that succeeds it. In past years and during recent crises this year, it has been the practice of the Ministry of Finance to negotiate many little short term loans to tide over the period of stress from the Chinese banks which are capitalized by officials out of their official winnings. Foreigners surmise that the Ministry of Finance will resort to the same measures this year with the same results, but Chinese in all quarters are convinced that at last it cannot lo done. The little official banks are "dry." The Ministry of Finance
Text read from the printed page and cleaned; old type leaves the occasional error.