The most discussed topic in diplomatic circles is the new and unexpected Nationalist official reaction to American diplomatic efforts.
The Kellogg Note and the treaty signed between Mr. T, V. Soong and Mr. MacMurray have undoubtedly engendered much ill will among people of several nationalities. But they are most openly resented by the Japanese, who have waged a tireless campaign ever since to prove that America's ulterior purpose is sluis ter. The intended effect on the Chinese has not been achieved, since those Nationalists here who first! believed that China had been cajoled. and hoodwinked by America are now convinced that American good will must be genuine since the Japanese are so unrestrainedly irritated, and. are therefore professing much. reciprocal friendliness and chortling over the Japanese Press and personal propaganda.
The Anti-Feng Faction The elements hostile to Feng Yuhsiang are now belatedly agitated about the presence here a month ago. of General Feng's Soviet advisers, as also of the military officials from.
rga who are supposed to have conferred with General Feng; while the fact that the only Red residency ty Chinn te enabled at Kaltengta revelation of Gene tions with Moscow.
There is, therefore, much gossip of military precautions in Inner} Mongolia to cheek relations between Moscow and Kaifeng. While Chinese hostile to General Feng assume that a binding agreement exists between him and Moscow, intelligence reports from Moscow, via Europe, indicate that the Soviet is hopefully looking towards re-establishment in China under an agreement with] General Feng, but is finding the latter elusive, and more flirtatious] than helpful.
Text read from the printed page and cleaned; old type leaves the occasional error.