Shanghai, Mar, 22.
The assertion that Moscow has proposed to the Nanking Government the conclusion of a nonaggression pact was made yesterday morning) by Mr. Hachiro Arita, Japanese Ambassador to China, a few hours after his arrival here from Nanking.
Questioned by Japanese reporters regarding the reported conclusion of fa secret Sino-Soviet agreement, Mr. Arita said that "no such undersianding appears to be in existence." but added that "it seems to be a fact" that the Soviet Government _has sought the conclusion of a nonaggression pact.
Mr, Arita revealed that in his conversations with Gen, Chang Chun, the Foreign Minister, and Gen' Chiang Kaleshek, President, of the Executive Yuan, he has "reached agreement on the ultimate aims of the projected readjustment of Sino-'Japanese relations.
"He also revealed that these conversations, in addition to the relations between the two countries. touched upon the international situation of greater firmness, 1s foreshadowed in a dispatch appearing in the "Nichi Nichi" to-day from its 'Shanghai correspondent, 'The Nanking leaders have not been impressed with Mr, Arita's explana tions and, therefore, the correspond-cent proceeds, ded as probe able that it' will no longer be opfortune for Japan further to nogotiate with China on that basis. For this reason, when Mr. Arita becomes Foreign Minister, he will make an important change in Japan's China poliey.—Reuter,
Text read from the printed page and cleaned; old type leaves the occasional error.