Tokyo, Aug, 25.
It is understood that Japan's position vis-a-vis the neutralization of the Shanghai area, as proposed by Great Britain, remains unchanged, namely, that the Japanese Government is not in a position to entrust the protection of the 30,000 Japanese residents in Shanghai, with their enormous investments, to foreign powers, Besides, it is stated, the Japanese Government insists that a sine qua non of the settlement of the Shanghai incident consist of the full observance of the Truce Agreement of 1932 by China.
"A Mere Incident"
No- official comment is available regarding the appeal of Mr. Cordell Hull, United States Secretary of State, to China and Japan not to ree sort to war, but oficial circles here assert that "no state of war exists between China and Japan." The Japanese Government, it is stated, regards the Sino-Japanese conflict not as a war but as a mere incident—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.