Peiping, Oct. 17.
The Arst fruits of Sino-Japanese economic ce-operation in North China materialized to-day, when agreement in principle was ached for through alr traffic between Manchuria and North China, The agreement, according fo a communique issued by the Hopel and Charhar Political Council, is on lines laid down by Mr. Wang Keh-min when he was chairman of the Council, but these lines have never been published.
The alr arrangement will be similar to the railway through fraM@e arrangement. A. special company called the Hui Tung Company is being organized to handle the air trate. No other details are available, except that. the alr trame will be run in accordance with Chinese civil avia-company for the economic exploita-
Alscussed, and regularly every two for three months since then we have been regaled with details of the companies that were being formed for this purpose and the work that they Intended undertaking. Yet up to dato} nothing whatever has been accomplished in this direction.
'The latest company. called the Hsin Chung Kungssu, willie a branch company of the existing Kouchu Kungs which again ts a subsidiary' company of the South Manchurian Railway which has subscribed Y.10, (000,000 for its capital, But os the economists of the Kwantung Army have in. the meantime worked out that a capital of at least '¥.100,000,000 will be required. to carry' out, what. they call "Gen, "Sung Che-yuan's pro: gramme for the economic development of North China." other large Japanese interests such og Miteul, Mitsubishi, Sumitomo and Okura are to be called on to subscribe the remaining required capital.
This all In a line with the question
which remain as much a matter of "yuan. speculation as "when he first took over control in the North. Recently, fater the armed clash at Fengtai, strong rumours were current here that the Japanese were very dissatisnted with him and his 29th Army fand were determined to shift both of them from here by the end of October. Tt was, however, worthy of note that those same rumours falled to specify who his successor was to be. In fact, the dim culty of finding uch a person, specially one with the necessary force at his disposal to keep order in these parts, would, one im-'Agines, make the Japanese think twice before effecting a further change "in the management."
Moreover, to provide a fresh home for the 20th Army would be a very Knotty problem. All, the northern ready "full wy The Japanese announcement does of go into any exact details, but speaks vaguely of "an extensive proframme for the renovation of railways and harbours In North China, as well as the exploitation of the natural resources and the cultivation of cotton." This talk about the economic development of North China has now been heard so often, that on will believe it, when one sees thi something is really being done in that fa financial question, anes the inal analysis, It is purely commercial interests. are really pre~ pared to put up the necessary capital, then no doubt things will go ahead. If these Interests can not or will not find the necessary money, then the development of North China Is not Ukely to make any faster progress than it has done during the last eight years or 50 from here previously, Northeastern Army isin Shensi. Shai Chen's 34th Army in Honan; Yon shan in Shansi has already more troops than he knows how to provide for, while Han Fu-chu in Shantung would certainly not allow another army into his territory, Where could the 20th Army go?
There have, as usual, been rumours 40 the very opposite effect: that, Gen. Sung Che-yuan is now on better terms with the Japanese than at any pre-lous period and that the renewal of the old Five-Provinces scheme is to
Text read from the printed page and cleaned; old type leaves the occasional error.