Peking, July 17.
The outcome of the negotiations here with the Fengtien Government remain officially secret, but it is understood that arrangements made by General Li Chung-jen of Hankow, who has latterly been in complete charge of the conferences with General Hsing Shih-lin, have resulted in a peace agreement, which will be effective within a few days.
According to gossip in political circles, the agreement is rather an alliance with the federation of the three Manchurian provinces, than their incorporation in Nationalist China, since the Fengtien leaders axe Tot required to make further concessions than to change their flag and reorganize their govern ment, as recently announced, to resemble somewhat the Kuomintang Committee system. It is almost certain that neither the Kuomintang party government nor its. typical Propaganda will be admitted to Manchuria under the agreement.
Chinese say now that General Feng Vu-hsiang's personal campaign here accelerated rather than retard-fed the consummation of such an understanding. They say that his Jeffort to embarrass General Chiang Kai-shek by committing Nationalism to an anti-foreign policy enabled the other leaders to convince Japan {that their policy was moderate and reasonable. Feng was thus put in the position of an irreconcilable radical, against whom Manchuria Jought to support the Nationalist iailitarists. General Li Chung-jen's assumption of the control of these parleys also demonstrated to Gen-feral Feng Vu-hsiang how solid present understanding is between [Chiang Kai-shek and Wu-Han.
General Feng has therefore withdrawn from the field with few fiaurels, but with larger radical support and with two, valuable appointments in Peking" namely that of the Mayor and Collector of the
Text read from the printed page and cleaned; old type leaves the occasional error.