Tokyo to Guarantee Any Agreement Reached Tokyo, Oct. 5.
In spite of the tentative agreement on the price of the Chinese Eastern Railway reported to have been set-fled between Manchoukuo and Soviet Russia, there is still a wide difference between the governments with regard to the conditions of payment, was learned in official quarters here to-day.
"Phe conditions insisted upon by the Soviet government are believed to be as follows:
GQ). To settle a definite eross rate for yen on the basis of the rate at the time of formal signing of the sales contract in view of constant Auetuation of the yen exchange (2) Manchoukuo to pay interest on. the second and third cash payments (a) Soviet. Russia requests the guarantee of the Japanese Government for all cash payments.
(4) Soviet Russia recognizes the transference of ownership of the railway when the first cash payment is made.
(6) Payments in kind ghall be made in two years, the Japanese Government to guarantee such payments, Russian employees of the line will withdraw within three months after Manchoukuo gives them notice.
Manchoukuo's Reply On the contrary, the Manchoukuo Government makes the following proposals:
Manchoukuo will guarantee the lowest exchange rate of the yen.
(2) Payments in kind will" be made in four years after signing.
(8) Guarantee by the Japanese Government is not necessary.
Soviet employees will with arow within two months after noti fication by the Manchoukuo Government.—United Press.
Tokyo Willing Tokyo, Oct, 4.
The Japanese Government " wilt guarantee the enforcement of the Soviet. Manchoukuo agreement on the transfer of the Chinese Eastern Railway if and when it is reached, it is learnt to-day from reliable sources. This move is prompted by the fact that Japan has been an ae. tive mediator ever since the commencement of the railway negotia tions in July, 1933, meanwhile the negotiations for the Ne of the railway are proceeding very smoothly, and final agreement confidently expected to be reached by the end of this month. The participants in the pourparlers are Mr. Chuichi Ohashi, Manchoukuo Vice-Minister for Foreign Affairs. Mr, Kozlovsky, a Soviet delegate, and Mr, Shigenori Toxo, Director of the European and Oriental Bureau of the Japanese Foreign Office.
The Manchoukuo Government will obtain the funds necessary for the Payment to Soviet Russia by floating a Joan in Japan, instead of borrowing from the South Manchuria Railway! Company, reports received to-day from Changchun indicated. The plans to entrust the management of the CER. after its purchase from Soviet Russia, to the South Manchuria Railway Company, however, remain unchanged, Informed circles here predict that} with the completion of negotiations, the South Manchuria Railway Com. pany will undergo drastic re-organization, permitting it to assume. the management of the CER, and all other railways in northern Ma choukuo—Rengo.
Text read from the printed page and cleaned; old type leaves the occasional error.