Harbin, May 3.
The dispute is nearing a crisis, for, 8 week -henee, the period fixed bythe new state for the return of the evacuated rolling stock expires.
Both sides ave remaining frm in their attitudes, the Soviet continuing to deny the claim that th railway is jointly owned by Manchoukuo and the Soviet. no {ndication as to what Up tothe present, the Manchoukuo will take when the stipulated period expires, but it is considered certain that a settlement Sull not be reached by May 10. Consequently, grave complications ely to' arise, If, as contended by the Soviet, the railway belongs to Russia, then Moscow can only be blamed for evacuating the Tolling stock without the sanction of the Manchoukuo members of the railway board. So fax, there seems no likelihood that the' Soviet will ever admit that Manchoukuo is a part owner of the railway, as is contended at Changchun, Documents issued by the board of directors require. the signature of the president and vice-president, Sue wen either "has sign, then the general" manager, Mritudy, has acted according to Tu some quarters, the question of joint administration of the railway is considered ax important as that of Joint ownership, as it is thought possible that Marchoukuo wil de-{nand, that disputed matters shall be submitted to. the Ministry of Communications at Changchun for decision. If the Soviet agree to this, which is not likely, then the control of the railway will virtually pass into the hands of Manchoukuo.
Harbin, May 6.
'The Manchouku Government, ili 1 note shortly to be handed to' the Russian representatives assigned to the" Chinese 'Eastern Railway dis pute, will deny that Russia is the ole' owner of the railroad, it Understood. ere. "The note is_expected to allege that Russia brought Pressure against. China in the ne-Eotiations Tending to the Peking and Mukden treaties when Russian ownership was admitted.
Representatives. of the Manchou-kao Ralfway Administration came fore by aeroplane yesterday and TREE eto the recent Soviet note cir reply to the recent Soviet note The chief points of Manchouluo's reply ar (1) The railway in dispute is under. the joint control of Soviet Russia "and" Manchoukuo and. the Hight, of possession does not rest solely iti Trane-Baikal Railway are plied to the transportation of soya beans alone as originally agreed. The blockade of Manchuli, therefore, cannot be said to be a violation o the agreement, (a). Although the Soviet insist that they have the right to make shipments at will over, the under the provisions of the original contract for the construction of the CER, it can be applied only to the CER' and the Ussuri Railway and not to the GER. and the Trans. Baikal Railway.
14) The Bianchoukuo Government demands the immediate return of all locomotives and freight cars moved into Soviet territory without the Manchoukuo's consent. Manchoukuo regrets that the Soviet} have so far ignored this demand.
Text read from the printed page and cleaned; old type leaves the occasional error.