In a formal statement late yes day night, Manchoukuo authorities categorically denied reports appearing the local press alleging that they had declined to discuss any question with Soviet consular authorities until a number of frontier incidents had been adjusted to its satisfaction.
"We have never refused to negotiate," a spokesman for the Foreign Affairs Commissioner stated.
This statement followed inquiries made at the Commissioner's fice following a widespread—sensation caused abroad by the distribution of these press reports to foreign After a discussion lasting many hours, they agreed that the Soviet Govern ment must assume full responsibility should the negotiations bea failure, charging "insincerity" on the part of the Soviets.
It the talks break down, the Manchoukuo Government will treat the CER. as a purely commercial organization and will carry out a drastic autonomous reorganization of the line, the conference decided. In that case, the Manchoukuo Government will further demand equal control of the line under the terms of the Mukden Treaty with Russi and will srietiy supervise the financial operations the railway.—United Press,
Text read from the printed page and cleaned; old type leaves the occasional error.