"Morning Post" on Friendship with Japan London, Oct. 2.
The evening newspapers feature the latest news from China about the Sino-Japanese situation, but no comment on the subject has yot appeared, Little doubt remains that Japan's proposals for a settlement of her differences with China are substantially on the lines already divulged by diplomatic sources in London, namely:
1—The right to station troops at various points on' the river Yangize for the protection of Japanese rest-dents.
'2—The right to edit school books to prevent the teaching of anti-Japanese sentiments to school children In China, 'S=Autonomy of the ye northern 4—"Econome ce-operation" tween Ching and Japan, the specitle {haracter of which has not been do-
There is good reason to believe that the British Government Is active-interested in the course of the Sino-Japanese negotiations, to which, considered, Great Britain cannot remain indifferent in view of the magnitude of 'British Interests in North and Central China, 'Japanese circles here reject the idea" of third-party mediation, Nevertheless, they appear to have been disagreeably' Impressed by the Chinese reaction, especially the coun-for-proposals, which were contrary to all precedent, Lord Lytton Speaks In an interview with Reuter today, Lord Lytton, head of the eommission sent to 'Manchuria by" the League of Nations after the Mukden Incident, dwelt on the fear of some Japanese that China's advance to a unified state must ultimately mean the ruin of Japan; the from this viewpoint, time was on the aide of China; and' that Japan must establish "her hold on China before she becomes too strong.
Lord Lytton disputed the logic of this view. Nobody, he said, could all to sympathize with Japan's economic necessities, Dut her polley in China in the ong run was unsound, The keynote of all welfare in the rar, East," Lord Lytion proceeded, "In the economic prosperity of China, Nobody has yet fully appreciated that fact, Tt is 'a question whether the principal Powers could not et together and assist the recovery' which China has already begun to make, So far from Japan suffering from such assistance, she must profit enormously if she romaine China's friendship and confidence."
Other close observers of the Far Eastern scene point out the growth national fecting in China, tu this connection, it is emphasized that the attempted ' rebellion of Kwangtung ind Kwangsi failed largely because the officer class refused to follow the ehlet generals in launching further civil war.
Chinese loans receded to-day, but this appears to have been duo to the sual precautionary marklag down, There was no evidence of much sell:
Text read from the printed page and cleaned; old type leaves the occasional error.