Tokyo, July 7.
Foreign observers, in general, agree that the two most important points contained in the pronouncement yesterday by Prince Konoye, the Prime Minister, are that 1, The prospective coalition of the Peiping and* Nanking Governments may, if it is inclined, negotiate with the National Government of China.
This is regarded as a face-saving device, by which, despite continual reiterations of the inflexibility of the Imperial Government's declaration of January 16, the road will still be left open for indirect negotiations between China and Japan.
2. Measures, both diplomatic and economic, are being taken to persuade third Powers to suspend their help to General Chiang Kai-shek—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.