London, Jan. 4.
The New Year message of Prince Konoye, the Japanese Premier, is not culeulated to encourage undue opti fxm, declares the "Manchester Guardian" ina leading article today, What once was known as the "North China incident," the journal states, Is now admitted to be a long-erin battle with no end in sight, Bmphasizing that Japan is in no position to dictate peace terms, the newspaper says. that ultimately the fall of Nanking may not prove to be even a moral disaster. It clearly marked the end of the Nanking Government, it asserts, and the emer gence of a Chinese Government based on a far wider section of the Chinese people.
Japanese militarists, the ""Mfanchester Guardian" concludes, went to war with the Nanking Government, Dut they will have to make peace with the Chinese nation,
Text read from the printed page and cleaned; old type leaves the occasional error.