London, Jan. 12.
Tokyo's delay in announcing the Imperial Conference's decision was interpreted here to-day as a defeat for the party demanding immediate declaration of war on China, it was believed that the extreme faction of the Cabinet had finally accepted a compromise in launching a programme of more drastic hostilities against China but without the necessity of proclamation of belligerency.
Local diplomatic circles expected that the only chance of formal declaration of war Would be if Prince Fuminarol Konoye's Cabinet were Overthrown and replaced with one headed by Admiral Nobumasa Suet-sug, new Home Minister.
It was understood that Admiral Suetsugu hea ie faction favouring declaration of\war.—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.