Testimony developed that be negotiations for the establishment of the Canton school, which continued over a protracted period, were kept strictly "secret due to fear that neighbouring nation" might questi a the propriety of the scheme, 'Evidence was also Introduced tol show that similar lying schools bad] been established for the Nanking Government, where Chinese students were being' given military training under the direction of American firms.
Negotiations for the establishment of the Central Government schoo! fse were shrouded in secrecy unt the project. was fully: developed, 'Mr, Francis H. Love, President of the United Alrcratt Foreign Sales Corporation, "declared that he did of think the assistance given the Chinese by American aircraft com: anies in' founding these schools obligated China to buy United States ial equipment and supplies.
Mr. Love also declared that he dis} not believe China had diverted. any of the proceeds of the cotton and wheat Loans from. the Reconstruc~ tion Finance Corporation to the pur chase of munitions and" military equipment.
'At this point, Senator Nye inter fected that "there is no testimony before the committee concerning -he diversion" of the Reconstruction Finance Corporation grain," adding, however, that "this has been alleged and the' committes ultimately will investigate the facts "The allegation, already oftelatly denied by Dr. Hi. H. Kung, the Chi. ese Minister of Finance, was voiced at last Friday's session of the com: mittee, when the assertion was made by Senator Nye that China had used "a large share" of the 1983 RE.C. Joan to buy grain, which was into traded" with "other countries for "arms and munition." Tt was into mated at the time that most of sus fain was traded with Taly, themselves, even in 1932, was made] to-day with publication of the League] of Nations year book dealing with] the trae in arms and munitions.
Imports of war materials injol Belgium, Poland, Switzerland, and the Netherlands from other countries during 1992 totalled more that 3.32. 700,000, the League figures revealed, 'The year book also' disclosed that Japan and China, according to thei: own figures, received arms and military" equipment during 1002] Valued at G'$6,000,000—United Press
Text read from the printed page and cleaned; old type leaves the occasional error.