The official stated that the Japanese had not made any demands for i creased representation on the Council. Their demands were, firstly, the appointment of a Japanese secretary to the S.M.C, the reorganization of the municipal police, which would include the appointment of a Japanese to a high position in the SMP., and a very material increase in the Japanese personnel of the police force. The demands also stipulated the appointments of Japanese in all branches of the S.M.C., in what were described as "controlling positions." No details were mentioned as to the nature of such positions, or as to the implications to be gathered from the term "controlling."
These demands were not interpreted to mean that the Japanese were asking for the appointment of a Japanese commissioner in charge of the S.M.P. or that the Japanese appointed to the so-called "controlling posts" should be at the head of the respective departments.
In reply to a question, the official stated that he had no information as to whether the demands were inspired by Tokyo, or whether they merely emanated from} the local, Japanese authorities. In any case, it would be some time before any answer could be given, as the whole matter would have to be made the subject of diplomatic negotiations, He intimated that in his opinion the matter was one that would be settled by diplomatic negotiations rather than by any other methods, Nu Increase of Efficiency It was also pointed out that the acceptance of the Japanese proposals would not increase the efficiency of the S.M.C, administration. The sent holders of the highest posts in the Council service had only reached those posts after a long period of employment and training, in which extensive experience had been acquired. He also stated that Council's administration system, and that of the S.M.P., were practically identical with the British municipal and police systems, which differed very greatly from those of Japan. It would not be practicable, he said, for Japanese appointees to function in high positions in the S.M, C, unless they had had wide experience and training in the Council's service.
In the event that Japanese were appointed to high positions in the Council's service, there would also be serious language difficulties, unless the Japanese employed by the Council acquired proficiency in English, It was learned from other sources that foreign Powers represented in Shanghai were in touch with their home governments with regard tothe demands upon the S.M.C., and business organizations were also wiring for advice in the present situation, which focusses attention upon the unusual foundations upon which the Settlement has been built. These foundations had sufficed up to the present time, because there had been almost complete harmony between the Powers interested in Shanghai, and the only serious difference had been with the Chinese authorities: The Settlement is now, however, faced with a very different state of affairs one of the Powers concerned is making demands which deeply affect all the Powers possessing in-4erests.in Shanghai
Text read from the printed page and cleaned; old type leaves the occasional error.