But Likely to Unite if Nanking, Proves Obdurate Moscow, July Behind the scenes there ex Jonsiderable amount of dissension between the Radicals, who advocate, Hf mot the occupation of Harbin, at the hermetic closing of the] Sino-Soviet frontier, if Nanking's reply to the ultimatum proves unsatisfactory; and the Moderates who point out that such mosures would can additional heavy financial losses and that, in view of the strained economic situation," any larined intervention would be imposible. The moderates also emphasize that the national as well ax the international consequences of military steps would defy all esleulations.
On the other hand, however, both these groups are agreed that the Soviet Union's prestige in the Far} East is in the balance, and that to ontinve the passive policy hitherto pursued against China would be ltantatiount to political suicide, The point must not be lost sight of that, should Nasking's reply prove Isnaceeptable even asa basis for Htarther negotiation various factions in the Government might suddenly unite and decide in favour strong action, especially in view] if the fact that the seizure of the [Chinese Eastern Railway has been received with rather strong criti-idem by some of the leading papers in Eurepe—Kuo Min Trans-Ocean.
Text read from the printed page and cleaned; old type leaves the occasional error.