He admitted that he had received JJapanese suggestions that he should advise the Nanking. authorities to correct their attitude towards Japan Dut insisted, that, Inasmuch as was a financial expert, he would be tunable to touch upon such political questions, "Moreover, there seems to be in Japan a view that the Chinese should exterminate the Communists in their midst," he continued. "But the reason why Communists exist in China is because the farmers in the interior are in dire straits, To exterminate the Communists it will be necessary to stabilize the livelihood of these people. T believe that the establishment of new railway lines should improve the lot of the agrieullural population and eventually. make possible an increase in Japanese exports t@ China. This should benefit Japanese industrialists."
'Declaring that China. was the country with the least number of railways in the world, Sir Frederick Said he believed that' such facilities should be made available in all districts of -China. The British official expressed gratification at the Indications of the Japanese Government's intention to extend material aid to China, but added that no concrete proposals had yet been advanced,
Text read from the printed page and cleaned; old type leaves the occasional error.