Denying a rumour that an agreement had been reached between the Shanghai Municipal Council and the Japanese authorities in connection with the return of areas north of the Creek to full S.M.C. control, a high Council official yesterday pointed out that negotiations were still proceeding although the final stage had not yet been reached These negotiations, he added, had been in progress for over a year, a final settlement having been delayed on several occasions by various Japanese demands, one of which was the appointment of more Japanese to high positions in the Shanghai Municipal Police in the Hongkew district, which, they stated, was predominantly Japanese.
Last week, he stated, the discussions had appeared to be reaching a conclusive stage although he did not hope for an early settlement of the question. Questioned in connection with the resumption of tramway and omnibus services in the Northern and Eastern. he stated that this matter was in the hands of the British Consular authorities, who had been pressing for an early opening of the services.
No reply would be sent to Mayor Fu Siao-en's demands, he replied in answer to a question, unless the Consular Body in Shanghai gave their approval or instructed the Council to do so.
Text read from the printed page and cleaned; old type leaves the occasional error.