Eugene Chen's Reply to S. Legation's Statement Hongkong, June 10.
Mr. Eugene Chen has issued the following statement in regard to the explanation of the American Legation on the matter of the Canton Arsenal plant:—
"If the American Legation would recdirect its attention to the commaotigué, which was issued by my Government, it would see that the Arms Embargo Pact had been advisedly referred to as the so-called Arms Embargo Agreement' and that: rigqué concluded ina sense that the sale of arms and the plant by an American national in China would involve a breach of the pact by America, not as regards but only vie-d-vie other: parties thereto. The suggestion that the pact is a self-denying ordinance is not in term of art in diplomacy."
Mr. Chen states that Dt. Sun sen wishes the matter settled on fair and just terms and that negotiations on this basis are proceeding with the vendors.—Reuter's Paetfe Tue Chinese press learns that. Volunteer Corps have been established in Ningpo and the outlying districts in order to cope with the bandits who. have been much too active of late, to. the discomfort of peace-loving people. Representa-ties have come to Shanghai now to purchase arms for the Volunteers' use.
Text read from the printed page and cleaned; old type leaves the occasional error.