Dr. Trautmann's peace proposals re those which had been presented the Japanese Government to the German envoy in Tokyo as the conditions upon which peace should be nclud: d for transmission to the highest Chinese authority, th" statenent said.
Mr. Wang in his statement quoted Mr. Hsu as having enumerated the conditions as follows "1. The autonomy of Inner Mongolia 2. Ths enlargement of the area in Which Japanese troops should be stationed in North China, but the administrative rights of North China will remain with the Central Govern-
"Japan wishes that an anti-Japanese person will not be appointed as the highest leader of North China.
The above condition is acceptable if the conflict is to be brought to an end now, but should a new regime be established in North China, this should be allowed to continue. If he conflict is to be broughí to an end now, not yna to China. negotiations now under way for the! exploitation of mines in North China o as to bring them to a conclusion; Shanghai "Peace" Zone "s. The extension of the demiliterized zone in Shanghai. The Japan-en" Government has not yet made clear the extent of the expansion of the zone or the method to be resorted to in effecting it, but will not alter the administration of Shanghai; "4. With regard to the anti-Japanese question, a settlement is desired along the lines agreed upon by Ambassador Kawagoe and Gen. Chang: "hun (Chinese Foreign Minister).
Details are but a technical issue; y Anti-Communism. Japan hopes that China will take certain measures to deal with this problem; Revision of the Customs Tariff.
Respect for the vested rights of foreigners in China.
"When Ambassador Trautmann expressed the desire to meet with Dr. Kung, Chairman of the Executive Yuan, Foreign Minister Wang and Gen. Chiang, a telegram to this effect was dispatched. Gen. Chiang imme-
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Text read from the printed page and cleaned; old type leaves the occasional error.