Tokyo, July 30.
The Japanese Government has not yet abandoned hope for a peaceful settlement of the North China incident, so as to prevent the outbreak of a Sino-Japanese- war, the Premier, Prince Fumimaro Konoye, told the Diet to-day.
The developments, however. he added, may yet compel the Government "to ask the people for further ce-operation and solidarity; Asked if "it is not futile to request ihe Nanking Government to reconsider its attitude," Prince, Konoye said the Government "should do everything in its power for a peaceful settlement of the dispute."
Queried on the meaning of "the so-called spot settlement principle of the North China incident," the Foreign Minister, Mr. Koki Hirota, replied that "in view of the fact that the Chinese Government had adopted a policy of non-recognition of Manchoukuo, the Japanese Government has decided to regard those regions surrounding the new State as the spot.
Text read from the printed page and cleaned; old type leaves the occasional error.