Harbin, Aug. 21.
In diplomatic circles of the Manchukuo government. at Changchun there is much surprise express fed at the extraordinary action of the Soviet government with regard to the negotiations between the two countries regarding many important questions which require prompt settlement, The negotiations seem to have reached a deadlock for which the Manchukuo government consider that Moscow is to blame, declaring that the action of the Soviet government is not sincere, At the commencement of the negotiations, each side put forward a number of questions which they Considered required instant settlement yet no conclusions have been arrived at, The Soviet consider that all questions must be discussed at the same time, no settlement to be made until all points have been agreed on, while the Manchukuo government desire to settle each point separately.
Amongst. the questions that, have eon put forward by the Soviet government is that on the transfer Of wharves and warehouses which were seized by 'Manchukuo authorities a short time ago, og also the question of release of the Soviet. citizens who. were arrested Suspicion of being connected with plots against the railway. The Manchoukuo' government, on the other hand, has put forward the question of the locomotives and ears which were taken into Soviet Russia the Soviet a short. time ago, and the question of alleged encroachment of Manchukuo territory by Soviet troops for a distance of 29 Russian versts.
'The Soviet government are putting great emphasis on the question, of the transfer wharves, and when question was first' taken up med. to concern exploitation only, but now the Soviet have put forward the question of whom the property belongs to, while the Mandhukuo authorities refuse to discuss. this. point for the present. This matter has consequently come to complete deadlock.
The Manchukuo government have decided to take stronger action, in the matter and to demand the return of the Egersheld property. Viadivostock, which formerly Tonged to "the Chinese Eastern Railway, and was seized by the Soviet in 1923. Regarding the ques tion of Egersheld, the Manchukuo government have apparently forgot~ fen that there was @ quid-pro-quo for this as the Chinese government seized the entire fleet of steamers and barges belonging to the Chinese Eastern Railway.
If Manchukuo has decided to take energetic. measures as regards, Bgersheld, it can only be assumed that in the same manner as the 'Japanese army is being used for all and fighting, the "Japanese navy will be used to take ack the C.E.R. properties at' Viadivostock, thus striking a blow which' would undoubtedly result in a conflict between Japan and Soviet Russia, though the former would state that it was only working in the interest of the new state.
Furthermore Manchukuo noyed at the negotiations regarding the appointment of consults to towns in'Soviet Russia bordering on Man-buna, being 29 very much delayed. When negotiations on this. question were originally opened, the Soviets Tig. not seem to have very strong objections to the appointment. of Manchukuo consults in such, towns Viadivostock, "Habarovsk "and Biagovestshensk," but after the Seizure of the transfer wharves, by Manchu, the Soviet authorities Stated that the. question of consuls med and discussed at as-all other questions tobe settled between the two countries, Neither side is inclined to give way on any point and, therefore, the whole of the questions pending be-{ween Manchokuo and Soviet Russia fare in abeyance until such time as circumstances occur which will make St necessary for one or the other side to act drastically, and while the Soviet army is ready to enter Munchukno at any moment, all the Bapanese plans have been' ruined owing to the enormous floods which have' practically made communication by the railways of Northern 'Mancharia almost impossible, while the entire failure of. crops,' would make it necessary for Japan to Ymport the whole of their food' supplies for their army.
Text read from the printed page and cleaned; old type leaves the occasional error.