withdrawal of Japanese ied areas still prove to be the greatest obstacle to the progress of the peace con ference.
From reliable sources it is learnt that the Japanese requested during the meetings of both yesterday and the previous day" that their forces be "withdrawn from their "present "positions to a line from Szetselin (Lion Forest) on Yan fang, Yanghong and" Chenju, ae ives "ani dow Which some distance to the west the, Shanghai-Woosuny Railway. The Chinese considered. this. an:
-Seuent "during: the greeting. of Fre then the Japanese put up the receptable aa i wa fared
day' afternoon, Mr. Quo, Taichi, the chief 'Chinese delegate, "thea: tended to withdrave from the con: ference." It. was only. after. the mediation of representatives of the four' Powers that. the strained altiuation was quietened and serious} change in the situation averted.
The Extreme Limit When the deliberations on_this problem were resumed" yesterday morning, the Japanese made certain concessions after the: Chinece.mavle {e'plain that It would be. impossible for them to continue. negotiations should the Japanese insist upon the suggestion" made during Friday, afternoon's meeting. The Japanese, was learned, then made certain, gencessions by suggesting that their forees be withdrawn to a Tine from Woosung down to. Kiangwan and Chapel," which line runs alniost along the Shanghai-Woowing Ieail-
of the previous line suggested by ray and ie some distance to the ast apanese on Friday afternoon in Japanese circles, it was learned last night that this concession was regarded as the extreme limit which the Japanese can grant, In fact, in going x0 far, it waa admitted] Uy "Japanese diplomats, that the dogates may have contravened the instructions given by' the Tokyo} Government.
"The only reason for, granting hist our ernest desire to come to an agreement with the Chinese negotiators There ure limits, beyond which we cannot be driven,"
The Chinese delegates, however, contended that the Japanese proposal for the withdrawal of thei forces to either the line of Szetselin, Yanghong and Chenju or the line from" Woosung, Kiangwan and Chapei_was contrary both in word and spirit to the second basic pri ciple laid down during the "preliminary negotiations, namely, that the Japanese foreex' should.' withdraw to the International Settlement and: to the extra-Settlement roads of the Hongkew area and that, in view of the enormous number of Japanese troops to be accommodate ed, some would Ihave to be stationed temporarily in localities adjacent to these areas. The districts of Woosung, Kiangwan of Chenju are not adjacent to the Settlement, the Chinese delegates contended, s0 the¥ could not sce why the Japanese should have insisted upon their proposal in this regard.
Military Sub-Committee Created "With a view to overcoming the difficulties experienced in dealing "with the question of Japanese withdrawal a military sub-committee was created to continue the discussions regarding details of the withdrawal. The sub-committee held meetings both yesterday morning and afternoon, but that of the afternoon, which was held at the British Con-late at three o'clock, was the more important inasmuch as it was Jattended not only by the Chinese fand Japanese delegates, but also by the military. attaches of the four friendly Powers participating in the negotiations. The Chinese at the sub-committee meeting were Gen. Huang Chang and Mr. 7. W. Kwok, the Japanese, Major-General It-Commander Abe, and.
in Kita. The four foreign Military "Attaches were Col. Badham-Thornhill, (Great Britain), It-Colonel A. Bonavita, (France), Col, uric Frattini, (italy), and H-Col. Walter Scott Drysdale, (Gnited States).
Text read from the printed page and cleaned; old type leaves the occasional error.