Two separate sets of highly im portant negotiations with the Shang-'Municipal Council. on Tuesday, of the local Ohinese authorities, They Oct, 3, were broken off by he setier were the discussions over the introduction of a system of factory inspection in the Settlement, and the vexed question of the outside roads, oth of which for many month ha yanked "as leading" municipal pro-
'An' intimation of the Chinese fquthiorities" decision to. discontinue he "extra-Settlement. roads talks came immediately following the an-ouncement that, as a result of the Sac. ig to withdraw its claim to control over the proposed Joint inspectorate of factories, the Protracted factory discussions would dropped. A dramatic statement thi velopment double certain negotiations between Mr. Sterling Fessenden, Seeretary-Gengral of the "Shanehal Muricial out tal the impasse created in'eont runell, and myself, T wish to pol
nection with the negotiations over the, extra-Settlement roads has nothing to do with the factory me Spection issue. "I merely informed Mr. Fessenden that the Chinese thorities could not resume the discussion of "the outside question on the basis of the pro-mence his duties, sued by the Office, which tthe meeting of the Municipal Council this afternoon, Mr. Stirling Fessenden, Secretary-General, reported that he had that afternoon again discussed with Ar. 0. Ko, Yul, Secretary-General of the Municipality of Greater Shanghai, the question of inspection of factories in the Foreign Settlement. Mr. Yui informed My, Fessenden that, in view of the Council maintaining its stand that it must have control of inspection of factories in the Settle-the Chinese authorities would not continue the negotia tions in regard to the establish of a factory inspectorate the Settlement, Mr. Yui also informed Mr. Fessenden that in Present. circumstances discussion of the outside roads question could not be resumed."
Series of Discussions Even long before last April (when. the. special meeting of Settlement ratepayers approves an amendment Bye-law 34, bringing. trial concerns within the cate must be obtained), enforcement Inbour regulations was the subject of repeated informal discussions among the various authorities, During recent months, a series of conversations have taken place beween Mx. Fessenden and Mr. Yui, Teading up to an informal basis of negotiation, on which the Secretary. General reported to. the SMC. at heir last meeting before the August recess. "Since the Council re-conve the position has twice been d As voiced by Mr. 0. K. Yui, the point of view of the Chinese authori Hes is apparently. that Labour ad= ministration the civil rule of the ferment andis beyond the jurisdiction of the Municipal Council. In an interview, Mr. Yui was quoted urging that the National Factory Law be adopted for gradual enforcement in the Settlement, but understood that the Coumel result of a long discus at fon this meeting, still hopes that ome solution' of the difficulty may be found. The deadlock arises tirely over the question of control of inspection in the Settlement.
Text read from the printed page and cleaned; old type leaves the occasional error.