For some reason or other, the reseniaives of the Kwantung Army Suite suddenly have sopped overt ig. dre and have even ised [pubuc slatement eciaring' thet Shey Rave received. complet acceptance ther "demands from the Chinese futhoritie, "They appear quite hurt fud surprised at all the cveltement td suspicion that have been aroused these "just demands of the Kwan-Ring Army." they ow go. ao tar to express thet comple salle FBetion "with Gen, "Hor Ying-chin whose conduct, they 3y, as' been "perfectly correct" all through, The only. remaining outstanding question isthe atttade of Gen, Chiang at-shek, from whom they are aval tug some clear pronouncement on autetion of Sino-Japanese frlendehi. The focus. of interest, therefore, the moment would sppenr to. have TRoved to Nanking. in this connec: fon there is 8 report going around here that the Japanere Ambastador, Arioshy is Bringing back wih him @ number of important demands that he' wall insist ona meeting with Gen. "Chiang in.'Nenkingy in order te present him withthe' sume, one of which. will Se. the complete an fonomy of orth: China, Situation Stil Uncertain June 13.
Notwithstanding the more optimism tic atmosphere reigning at the beginning of the week, the situation has again suddenly taken a turn for the worse, though owing to the contradictory' statements one hears from Doth sides, it is impossible to make absolutely sure what is really taking place behind the scenes. Since yesterday (Wednesday) a veritable Panic seems to have seized Chinese circles; the wildest rumours are flying about; and it is impossible to et hold of any silver. That there were some definite grounds for these alarms became clear this morning When it was known that General Ho Ying-chin had lett for Nanking at 3 am, by special train, in complete secrecy and quite unexpectedly. Later it was given out that he had left merely in order to consult with the Nanking government on the future arrangements in North China, But obviously, if that was his only reason, there was no necessity. to leave in this way in the early hours of the morning. According to Chinese reports it is quite definitely stated that some time in the course of yesterday =the hour varies between afternoon and late evening—a further series demands were presented to him the Japanese, of such a serious nature that the refused either to accept them or to transmit them to Nanking.
On the other hand, Japanese milit= ary circles here emphatically deny that any further ultimatum or demands of any. Kind were presented to General Ho' and even affirm that they were entirely ignorant of his Geparture till late this morning.
Troop Movements Yet no attempt has been made to explain the ominous troop movements that have been taking place in the ast two days: Numerous trains earrying Japanese troops, much larger than anything that can be required for the seasonal reliefs now due, have according to authoritative foreign reports been possing Shanhaikuan going toward Tientsin; Japanese troops have been massing at Kupelkou, and small bodies of Manchoukuo' troops already reported at Miyunsien in the demilitarized zone. Fighting. is reported to have broken cutin Charhar, and when the local representative of General Sun Che-yuan called on the Japanese military to. apologise. for the arrest of four Japanese emeers by General Sun's troops, he was told that it was too late and that the Japanese were toking the necessary measures.
Chinese circles certainly seem to be in no doubt as to the seriousness of the situation: no business was con-@ucted at the municipal otices day, as the employees had all taken leave. And secret instructions have been issued to the schools, and unlversities to be ready to close down, and the students warned to prepare return to their homes,
Text read from the printed page and cleaned; old type leaves the occasional error.