In its frst report, the sub-comi ce states "it is clear that the two ouintries take different views as Yegards the underlying ground for the dispute and the incident which led the outbreak of hostilities, but it is Ainehallengeable that powerful Japanese armies invaded Chinese territory and" militarily control large areas, including Peiping Itself, that the Tepanese Government has taken naval measures to close the coast of China Chinese shipping, and that Japan-aircraft have been carrying out Tombardments over widely separ: region:
'The report cites statements from the speech of General Chiang Kal-chok on July 13, China's Note to Japan. of July 19, and the Japanese Pre-miler's speech of July 27 as apparent evidence that both' sides believed, at the early stage, that the Incident could be localized and a pecite so.ution found.
At a comparatively early stage, the report says, it began to appear that Japan, in addition to reaching a local Seltlement, was also determined to chiam a settlement of all questions at sue between the two countries.
Text read from the printed page and cleaned; old type leaves the occasional error.