Tokyo, July 15.
Reflecting apparent confidence in ihe localization of the Sino-Japanese conflict in North China, the Stock Market here to-day staged a spectacular - rally, AIL issues advanced, gains ranging from Y.l to Y.8.
Optimism was also evident in ofcial circles who pinned their hopes against an aggravation.
Japan, it was however stressed, was "fully prepared for any contingency."
On two occasions, Foreign Ministry officials pointed out, "plainly-worded warnings" were served on the Nahking government against steps calculated to repudiate a local agreement for the settlement of the Lukouchiao incident of a week ago.
Gaimusho circles remarked that there were ample precedents of such regional agreements which are now in force between Japan and China.—Domei.
On the other hand, the Japanese consider it necessary that the Chinese should carry out the conditions contained in the alleged settlement of July 11 before there are further talks on other issues.
Text read from the printed page and cleaned; old type leaves the occasional error.