Hankow, Jan. 2 im the personnel of (Government is halled by the Chinese press here to-day as a clear indlea-Yon of the determination of the Chinese Government to increase the efficiency of Its machinery and personnel in order to face the present crisis.
'Many circles interpret the changes as a distinct triumph for the more conservative elements in the country, as all those appointed to key positions In the new Cabinet are Tecognized' as leaders of the con-Servative bloc. These include Dr. LIH. Kung, General Chang Chun, Mr, Chang Chia-ngan, Me. ong. Wen-hao, and Dr. Wang Chung-hui These changes, Chinese, circles contend, should ' put at rest all Fumours that the new government is taking on a radical hue.
The change of personnel, at a time when peace. overtures are proceeding, is attracting much attention Snd speculation. Nevertheless, It is pointed out that while China is anxious to settle the present dispute with Japan peacefully, the—terms offered by Japan, as they stand, are mpossible of acceptance, I Japan sincerely desires peace, che proposed terms, Chinese circles slate, must be greatly modified. Dtherwise, they declare, no negotiations are' possible.
The proposal to. appoint Ministers without Portfolio in the reorganized Cabinet has been dropped, and it has Japanese Military Attend Inaugural Meeting: Five-
Text read from the printed page and cleaned; old type leaves the occasional error.