Peiping, July 17, Peiping is less nervous; martial would like to sce the affair settled law is still In force at night, but Peaeefully by mutual agreement, and slarty now al 11 pin, instead' of 7|that of the Kwantung p.m, as before and most of the city gates fare kept open in the daytime. Nevertheless there Is a considerable feeling uneasiness among the public, as Japanese reinforcements continue to pour in to North China and their forces are being steadily concentrated vound Peiping. All eyes are turned in. the direction of 'Tientsin where, negotiations are said to be taking' place, AS these are shrouded In. complete secrecy, the wildest and most -conflieting rumours are going about, as to what the Japanese de® mands really are, In general these rumours run on two. lines. One version, the more hopeful, is that the negotiations are only concerned with the removal of the 20th Army from these parts, the demilitarization Peiping, and the evacuation by the Chinese df the Marco Polo bridge which is stil held by them, certain amount of scepticism as to whether this is the real object of the negotiations is caused by the fact that Japanese official. quarters, while hinting in a general way, that this is all that they are out for, at the same time refuse absolutely' to divulge the terms of an agreement, that they would be prepared to accept. It ts argued, moreover, tha even if the menacing talk of the military. people In Tokyo is mere luff, it is extremely unlikely that Japan would be staging mobilization on such, a large. scale merely for the purpose "of gelting rid of the 20th Army. his believed that the Kwaniung Army has very much more far-reaching plans, and "that the present Japanese" denial of any political demands Is merely In order to keep things quiet, until their troop, concentrations are completed.
Rumours of Partition According to the other version the most important terms of the negotia~ Hons that are being conducted with such secrecy In Pientsin alm at tearing away North Hopei and Charhar from China and uniting it with the already sutoomous govern= ment of East Hopel into one new Indopendent state with the capital at Tientsin. It is even rumoured that an agreement sto this effect has already been signed, though by whom on the Chiniese side is not. stated, but will not be made public, until Japanese military preparations are completed, 'The anxiety of Japanese ofeiat Quarters to keep the details of the Tientsin negotiations a complete eerot would certainly seem to point to something more serious than' the comparatively simple military ques lon ut the future of the 29th Army. The atmosphere in North China today is very similar to that existing atthe time of the infamous 21 demands in 1915 and, in recent times, of the fatal Ho-Umetsu agreement, the (arms of which have not been mmiade public to this day.
Conflicting Versions The varied and directly confetti versions of the terms and counterterms that one hears of as being put forward during the Tientsin negotlaions may be partly due to the divded counsels that appear to be reigning both camps. The Chinese public completely in the dark as to the obey oF intentions of the Central Government in the present crisis, Nor does anyone seen to know, when ther the Chinese negotiators, whoever they may be, are keeping "in touch with and acting upon instructions from Nanking or whether they are hnogolialing entirely on their own. The attitude of the leaders of the 20th Army Is also very obscure, Although Gen, Sung Cheh-yuen returned from Shantung some days ago, hho does not, from all accounts, appear to be taking any lending part in the negotiations, It is also said that Gen Feng Chih-an, commander of the 37th division, whose units it is that have queen actively engaged with the Jap-nese forees, under pressure of his subordinate offers is opposed to any concessions and to any' withdrawa! of the 20th Army, unless the Japanese agree (o withdraw their troops likewise. On the other hand, Gen. Chang Tzu-chung, mayor of Tientsin ahd commander of the 28th division, which fg stationed in the neighbourhood of Tientsin is. said to. favour eoneilistory measures and accepting the Japanese demands, "Damn the Consequences On the Japanese side there appear 0 exist, as usual, two policies: that [of the civilians and diplomats who
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