'On June 29, at a time when the diplomatic representatives of Soviet Russia and Japan were discussing the femicable definition of territorial Fights in islands in' the Amur River, Major-General Masaharu Homma, [Japanese officer of wide experience {sna highly-esteemed Judgment, on his way back to Japan. from. attending the Coronation In England, told an Inquirer la Harbin that the Russian Army had been badly shaken by the [Statin "purge," and "hinted that for fil practical. purposes it was at present) negligible. On July 1 the Japanese Government {ook w strong fine: in enforcing its claims "on. the Amur River. The Issue was soon seitied by a compromise which cer tainly did not favour Russia, Tu the frst week of July uneasiness manifested liselt in Peiping owing to various warnings of Japanese inten tions: "on. July 7 the -mancevres near Marco Polo Beidge brought the crisis there toa head with "results Japan's chief anxiety in rogerd to the China mainland is for the econo mie benonts which her occupation of Manchuria is expected {o give. secure those Denelits she desires 10 make" herself invulnerable against Russian allackss For the moment such fears, as General Homma. showed, re. groundless, They may recur. hi then i eultble ime' to make assurance doubly sure by complet! fastening the dete tank: of the tne rom the Amur River to Suiywn. This enables her to attend to the economic problem to which she at {aches prime importance and' which {involves the creation of an economic Vall to comprise. Manchoukuo and North China. Without direct trading elations with North Ching Manchou kuo cannet be: made to pay. With the vast resources of Hopel and other north China Areas at her command, JaLan thinks she. can not only. set the seal on the economic success of the Manchurian adventure but also bring great relief to her internal economic needs, 'The opportunity now offered for massing troops on North Ching soil would " appear "therefore deliberately taken' to. create one other Japanese enclave and incident ally to lop. of another import ant tract of territory from Chinese control. Premeditation thus becomes. an angmically academic' issue,
Text read from the printed page and cleaned; old type leaves the occasional error.