Peking, July For the purpose of assisting in the rural rehabilitation of the 27 dis-{elets in the demilitarized. zone the With regard to the exception taken Mr. Lit Hou-wu, member of the [Control Yuan, by whom the impeachment was first brought, of the provision in the above-mentioned agreement that the loan for the purchase of railway materials will be secured fon the profits of the Chengting-Taiywan Railway, Mr. Ku says that this provision is not at all unfavourble to. the Chinese Government, feonsidering that. though the Joan Jamounts 10 $10 millions, the annual profits from the railway amount to no more than $1 million.
The project for the construction of the Tatung-Tungkwan Railway, for which the loan was originally intend-fed, has been dropped, Mr. Ku points out, because the Shansi Provincial Government decided to construct the 'Tatung-Puchow Light Railway, which, when completed, would run' parallel to the' proposed Tatung-Tunghwan me.
28 conclusion, Mr. Ku hits out Liu Hou-wa with of malicious and wilful defamation—Kuo Min,
Text read from the printed page and cleaned; old type leaves the occasional error.