Nanking, June 21.
'The national budget for the 2th 'Siscal year, which begins July 1, 1935, was adopted by the Legislative' Yuan this morning. The budget is balanced at $957,154,006—Central News, Front Our Ows Coanesroxoex?
Peiping, June 20.
Despite the varied and alarming rumours that have been—floating round during the last few days, the situation appears to be slowly clarin fying, the picture that gradually is emerging being that of the complete control of North China by. the Japanese, in fact if not in nome, In usually well-informed Chinese circles it Is said that Me, Wang Keh-ming, who has arrived here to-day and is persona grata with the Japanese, will become the acting head of a new administration to be formed in North China, The Peiping Political Council and' the Peiping Branch Military Council are to be fused into one and converted into a body to be called the Hua Pei Tau. Chih Hui (Autonomous Council. of North China), "Tt will have full autonomy in the' management of all' purely northern affairs, and the Japanese will deal directly with it, instead of with Nanking, in all questions affecting their own interests in these ports, "When the new Council. ha been fully established, a new agreement probably will be drawn. up with the Japanese, replacing' the [Tangku 'Truce treaty. Whether such circumstances the Japanese still will insist' on Nanking signing the acceptance of their recent demands seems doubtful; that question, for the moment, seems to have receded into the "background, At the time of writing, the Charhar question, according to the pronouncements of both Chinese and Japanese spokesmen, still is unsettled, Actually, the only important outstanding mat: ter, but one on which the whole situation turns, is. the withdrawal from Charhar of Gen, Sung Chehyuan's amy of 40,000 men, Two ays ago, after his dismissal by the Nanking" Government, Gen. Sung gave an interview at' Kalgan feertain foreign correspondent, when he is stated to have declared that, unless he received public and lorders from Nanking to the contrary, it was his intention. to resist the Japanese advance with his whol force. This morning, he arrived sud-Jdenly in Peiping, for the purpose, it stated, of discussing the evacuation-~ of his army with the Japanese. mili tary. This sudden change of attitude possibly may be explained by the Feport that he has been appointed Chairman of Anhui Province. Tf this correct, the Charhar incident is Probably closed. the Restless Troops Another version, however, is that has washed his hands of the whole dis on his way into re-means sell for there temas Ting to all reports the. alomisal of army 10 be dapostd of Accor
uted serious troops, who ave Seciared "that they" wil not leave Sharnar. Such a frame of mind easly fright Lead fo an open clash between them and the Japnnese What wilt be. the fulure, arrange-po ments forthe poling and admin ration of Charhar maine.
en, itis stated that Gen. FU Tso-tne Cnaisman of the neighbouring Province of Suiyuan, who is on good ferme" with the Japanne, willie lowed to: send a few of ly uriis here to keep order.
Text read from the printed page and cleaned; old type leaves the occasional error.