Paris, Aug. 1 Fears that China and Japan would reject the British proposal for the neutralization of the Shanghai area for reasons of prestige, although emphasizing that the British scheme was advantageous to both sides, was the comment by "Lo Temps." leading French daily.
The Japanese viewpoint has always been that Chinese forces had violate ed. the agreements for the demillfarlzation of the Shanghai district and. that "Tokyo was. obliged to protect Japanese nationals. 'The Chinese viewpoint is that the lane Ing of Japanese forces has obliged Nanking to resist aggression by arms. 'Such viewpoints should in no way prevent the aceeplance of the British Scheme. Chinese and Japanese na~ tionals' would be protected and guaranteed as soon as British, French and American forees assume the responsibility for ensuring peace and order," added "Lo Temps."
The journal emphasized that would be to the mutual advantage of both China snd Japan if the Shanghai district was excluded from the zone of hostilities. While the cutest international dangers would disappear "one can well imagine that the Shanghai dispute hindered Jo plans which originally aimed on local settlement of hostilities in North China. On the other hand even if certain advanced "Chinese quarters believed at one time that international complications in Shang-hal would facilitate a vigorous resistance to Japanese pressure by enlarging the conflict, the rulers in Nanking have. surely: learned now that there is not the slightest chance of active intervention by the great Western Powers, and none of these contemplates under the present circumstances to" invoke "the Nine Power Pact and openly to take sides the fight between the two nations,
Text read from the printed page and cleaned; old type leaves the occasional error.