The defence denied that there was any agreement. Plaintiff forwarded Y.20,009. to defendant for the formation and expenses of condveting a club in Peking with the object of meeting Chinese Government off jeials for the purposes of promoting, lof obtaining concessions, promoting commercial and industrial enterprises and furthering a Japanese-'Chinese economic-alliance. Defendant did not admit that no club was formed or conducted and said that, after the receipt by him of the ¥.20, 000, a social club was formed in Peking' and defendant expended on its formation and on conducting it more than ¥.20,000. As to the omnibus service claim, defendant did not admit that on his invitation plaintiff paid to him a total sum of '¥.10,000 er any sum for investment in or for the acquirement of rights in a motor omnibus service and alleged that, in 1926, he expended Jo sum of about $30,000 for the purpose of securi ial rights for '8 motor omnibus company to operate in the suburbs of Peking and obtained such rights but shortly after he had obtained these rights the Gov-fernment in Peking which granted them was driven from power, Defendant denied that plaintiff lent iim ¥.8,000 and that such a sum was owing by him to plaintiff.
After reading the statement of claim, Mr, Wing dwelt at length with telegrams and correspondence exchanged between plaintiff and defendant, in the course of which the ropesed economic alliance between Japan and China was discussed in detail. Politics, political leaders, militarists and the Japanese Ambassador were mentioned as well fas the name of Marshal Feng Yuhsiang. The club was to form the nucleus of the alliance. No part of the ¥.20,000 which plaintiff had paid to defendant, for forming and con-Jducting the club, which lasted only short time, had been returned to the plaintiff and no accounts were submitted by defendant, nor did [defendant give any explanation with regard to the motor omnibus set nor had any part of the money handed to him by plaintiff been re~ turned.
Text read from the printed page and cleaned; old type leaves the occasional error.