Terms of Settlement Being Discussed: Arrangement of a Neutral Zone Peking, July 21.
The peace negotiations between Generals Shen Hung-ying and Lu Yung-ting, following the withdrawal of the former's troops from the siege of Kueilin, are making satisfactory progress, according to information obtained from military quarters in Peking. The withdrawal of Gen. Shen's troops was the result of mediation on the part of Gen. Ma"Chi, Marshal Wu Pei-tu's special representative in Kuangsi. Most of Gen, Shen's command are at Hsingan and Kuangyang, while Gen, Tung Yao-wen has been sent to Chuanchow to meet Gen. Lu's delegates and discuss terms of settlement, including the immediate arrangement of a neutral zone between the two forees pending a final agreement, Gen. Chang Teh-cheng, Chief of the Kiangsi Yichun troops, who returned to Honan a few months ago, has now gone back to Kiangs Mablihed at Tayuliang' in ac+ cordance with instructions from.
Marshal Wu Pei-fu, Gen. Sun Chuan-fang, Tupan of the Fukien-Kuangtung border, has asked the Central Government to place Gen. Chang and the Yichun troops under his command in the event of Gen. Sun being instructed to move-into Kuangtung.—Reuter's Pacific Service.
Text read from the printed page and cleaned; old type leaves the occasional error.