Whatever view may be taken of the anti-Japanese clement in the Communist problem there cane no doubt as to the anti-Communist sentiment and policy of Japan, This fact, to which further reference is tide in the paragraphs dealing with Japanese affairs, complicates the Nanking Government's position relation to its own people on the one hand and to Japan on the other. Indeed, the development of this com= plication is one of the most. important strands in the skein of last year's history.
The outstanding fact in Sino-Japanese relations then was the arge-scale smuggling which was o°- curring in North China. Tt had been koing on during the Tatler part of 4935,: mainly in respect of silver. By the spring of 1936, however. it had come to embrace other commodities. On May 21, London papers published the following cable, authorised by the Chairman of the British Chamber of Commerce ut Shanghai, Mr- Calder-Marshal
Text read from the printed page and cleaned; old type leaves the occasional error.