Washington, Mar. 8.
Conversations are now in progress between London and Wa: on ihe subject, as Great Britain claims sovereignty over the entire Phoenix Group of islands.
According to Reuter's Diplomatic Correspondent in London, if the main question involved should transpire to be one affecting air routes, a settlement could presumably be reached, under which both Great Britain and the United States could have ell the facilities they desired' for air purposes in the islands.
The questions arising from the American claim are being examined with a view to the speedy conclusion of a friendly agreement. The Austra-lion and New Zealand Governments are understood to be taking part im the talks.
The main importance of the islands is because of their position as a trans-Pacific' aviation station.—Reuier.
Possession of Railway The Japanese troops in Shansi claim to have captured Puchow, in the south-west corner of Shansi and the terminus of the Taiyuanfu-Puchow Railway. This gives the Japanese possession of the entire rail-Way, but large areas on either side of it are still in Chinese hands. It is expected that it will take considerable time and many men to clean up these areas.
The Japanese also claim the occupation of Haku, on the Yellow River in north-west Shansi. The capture is said to have been made by a Kwantung Army unit operating from Taitung.
While the Japanese continue their relentless drive in Shansi, their artillery in Honan continues to pound Chinese defences on the Lunghai Railway from positions north of the Yellow River preparatory to an attempt to cross the waterway.
Their heavy guns are also bombarding all Chinese concentrations of, boats on the river to prevent attempts by the Chinese to recross and attack while the fhajority of the Japanese forces are engaged in Shansi.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.