Statement Issued by Cabinet Secretary Tokyo, Jan. 6- Following a conference of four Ministers, including the Premier and the Foreign, War and Navy Ministers, Mr. Akira Kazami, Chief Secretary of the Cabinet, issued a statement to-day saying:
"General Chiang Kai-shek's administration, after the fall of Nanking, transferred its Government offices to the interior, where it is making a false show of power.
"Judging, however, by the latest information, a desire to sue for peace is, apparently, gradually being manifested among the members of General Chiangs administration, which is awe-struck by the strength of the Japanese military forces and the increasingly firm determination of the Japanese nation,"
"Japan, on her part, however," Mr. Kazami's slatement continues, "is paying heavy sacrifices in her present crusade, which is actuated by her desire to obtain a guarantee for lasting peace in East Asi "Therefore, Japan will go ahead to attain her fixed objective, unless China shows her reconsideration sincerely,"
In conclusion, Mr. Kazami's statement said that this afternoon a free and frank exchange of views took place between the Premier and the Ministers of Foreign Affairs, the Army and the Navy, regarding "the various measures to be taken in future to pursue this determination of Japan,"—Reuter.
Up to the present, there had been' no serious differences between the Powers with regard to matters relating to the administration of the Settlement. Now, however, one of those Powers had made unprecedented demands upon the Council, raising a political issue which might be of very grave importance. The official also made it clear that in his opinion the better method of procedure in making -these demands would have been for the Japanese members of the Council to present the proposals at a Council meeting. If dissatisfied with the result, the Japanese Consul-General could then have taken up the matter with colleagues, representing the foreign Powers interested in Shanghai.
In presenting these demands directly to the Council, the latter was placed in rather an awkward position, as it could not come to a decision upon a matter of so great importance without referring i; to the Consular Body.
Text read from the printed page and cleaned; old type leaves the occasional error.