Mukden, Jan. 31, In an interview yesterday, Mar. shal Chang Hsueh-liang stated that the problem of reorganizing} the Shansi and Marshal Feng Yuliang's armies was a very com plicated one. He stated, however, That the rumours regarding growing unrest among the troops had been mostly spread by irresponsible Parties In the future the Marshal in-ends to spend about one-third of his time in Peking attending to his duties of Vice. Commander-in-Chi of the National forces and two: thirds of his time in Mukden carrying out the task of Chairman of the Northeastern Political Coun-ell, 'The seat of the Manchurian Government, stated Marshal Chang, had not' been changed.
"The railway negotiations with the Japanese are to be left to the Conmunications Committee and only the results will be submitted to Marshal have to offers axg, "hose funds, to be expended under the supervision of an international commission, representing the nations interested, 'This would avoid tendencies to favoritism, to Waste and to possible corruption on the part of any of the parties and Would avoid. the objections to the 'Consortium,' and would also avoid interference in the political life of China, at least nominally so; that is to say, foreign participation would be imited to supervision of the: engineering enterprises and possibly to preservation of order, in local areas involved. This really is the crux of the problem, so far as China, is concerned and and France to the amount ad-"or America would credit, Brg. vanced, England and France would credit Germany to the same extent. This, of course, is the crux of the suggestion, so far as tne United States is. counerned, 4, Such a scheme would open up foreign markets to Germany and Would contribute much to ease the Zeute economic situation in Germany and in Europe in general.
"to remain Republican, Germany must have markets, wither (a). in America, which means. breaking down our tariff walls, or (b) Russia, which means strengthening Communism which in turn, woul strengthen Communism in Germany and Central Europe, if indeed not make it certain of establishment there, or (c) in her returned colonies, which means revision of Versailles, or (d) in Europe, which means accentuating the economic istresa in the rest of Europe.
Up, Peace and constructive effort in Ghina and" the demands millions peaceably employed and with increased purchasing power Will increase economic demands on all other countries and with no centration of economic stress el where, "China last year imported $400 lions of foodstuls. This greatly increased, would help 0 situation.' China imported last year more cotton and textiles then, the total value of her silk exports. This greatly increased, would help both Sur cotton growers and Japanese manufacturers. Demand for machinery and every variety of manufactured goods would help Germany as well as England, France and Japan in fact, all the countries concerned in the scheme.
"The objections to the plan are, first, those ofthe somewhat com Plcated mature of the suggestion, probably no more com ted then the Young plan, or the plan of the International "Banks. Second, that the security offered by...
would be as good as that offered by China could not be cod; but the present situation. 'Third, the Tength of the term of payments. 'These perhaps would be no longer: that these of the Young or of the Dawes. plan, Fourth, political, primarily' with the American Congress and with European reactions, With regard "to these I am not competent to make suggestons'—no Min.
Text read from the printed page and cleaned; old type leaves the occasional error.