The conversations between Mr, Karakhan and Mr. Yoshizawa, which were interrupted two months ago, fave shortly to be resumed. When the two parties failed to arrive at, any agreement at their last meeting, after protracted negotiations, Mr. Yoshizawa asked the Tokyo Government for fresh instructions. The first set of the new Japanese proposals has already been received, to be shortly followed, it is expected, by a complete draft. When the whole dossier arrives, Mr.
yoshizawa will ask Mr, Karakhan to appoint another meeting, when the problem of coming to an' agreement involving the re-establishment of relations between the two countries will again be re-opened, Conversations with this object in view have been going on intermittently for the last three or four years, Mr. Karakhan has received no fresh' instructions from his Government, The Soviet stand is based on the proposals already published, and it was on these proposals that stumbled, Mr. Karakhan no tendency to compromise, There are really only two test questions before the plenipotentiaries, first, the extent of oil, con= cessions in'northern Saghalien to be allotted to the Japanese, and, secondly, the date on which' Japan will withdraw her army of occupa~ tion. The Soviet have already agreed to give the Japanese 40 per cent. of the oil-field aren which they are already exploiting. The Japanese want 60 per cent.; and the deadlock arose out of the refusal of either party to mo toward the middle. The Rus algo require that the area be split up in checkerboard fashion so that the Soviet may separate the ex-plaiters' and guard against any. infringement of Russian sovereignty, At first, the Japanese insisted on having their concession in one large. chunk, but now, I understand, the Tokyo Government is willing to be Jeonceded certain lots in northern Saghalien, separated from each other by Soviet holdings. However, they have not decided to agree on the percentage of the concession proposed by Mr. Karakhan, At the last meeting between Mr. Yoshizawa, land Mr. Karakhan, the Japane Minister said his Government would not agree to any percentage under
Text read from the printed page and cleaned; old type leaves the occasional error.