Mukden, Aug. 16.
The latest intelligence from various quarters indicates that, fol-Towing the postponement of the reconciliation between Manchuria and the Nationalist Government, Japan's policy will be to cultivate friendly Telations with the Manchurian iritics "by offering them assistance in the form of a large oan for financial readjustment and currency stabilization, simoltaneously using it as a lever for the advantageous settlement of standing issues.
The recent conferences of Mr. Yamamoto, President of the South Manchuria Railway, the Finance Minister and the President of the Bank of Japan in Tokyo azo considered significant.
The-Chinese, on the other hand, are bent on using economic weapons against the Japanese for the pu pote of weakening their position Manchuria, The provincial guilds and assembles are advocating a-boycott against Japan while the new regulations of the Chinese Eastern Railway regarding the Yen-Rouble exchange rates, which are to. be enforced from' September 1, are' calculated to deal a severe blow to the South Manchuria Railway by. considerably reducing the volume of North Manchurian produce carried over that railway—Reuter.
Tokyo, Aug. 16.
Baron yyashi, who returned, this evening, in. a press interview, stated that Marshal Chang "Haueh-liang had. intimated that the compromise with the Nationalist Government would be post poned for three months. Consequently the situation in Manchuria ras likely to remain unchanged.
Discussing the {in South Manchu: authority is the Peace Preservati Committee, to. whom even Marshal Chang refers everything before making decisions. He also mentioned that the group headed by General Yang Vu-ting is in favour of a compromise with Nanking and may possibly influence others eventually, but, he added, owing to the instability' of the Nationalist Government it is impossible for Japan to permit Manchuria to cot tunder Nationalist control at the present time.
Referring to the economic sitnation the Baron declared that a ypanese loan is not required as to carry on "it. out it—Reuter. pot may be confirmed by th that not one of the Chinese military: guards was either killed or wounded, According to Chinese propagand ists, Jupan attempted to occupy part of Manchuria by creating distur-Dances immediately after the death of Marshal Chang Tso-lin, but if Japan really wanted disorder in Manchuria, it would not be necessary for her to carry out such a deep-Jaid plan as the assassination of Marshal Chang Tso-lin, because her connivance with the entry into Manchuria of the Nationalist troops might very well have served the Purpose in question. As a matter gf fact 0 Tong as Marshal Chang so'lin' was alive, Japan had no anxiety as to the pea: of Manchuria.—Toho, CHANG TSO-LIN'S FUNERAL, Mukden, Aug. 8.
2 After the prescribed period of even weeks of mourning, the solemn of Chang Tso-lin was held from Marshal's Office to the Buck Temple, where the fane 1 serv was to be held. Thi procession offered an impressive sight, witness. 15 ced by ten of thousands of spectators forming a sol on both sides of the streets were the corrige passed.
Text read from the printed page and cleaned; old type leaves the occasional error.