"Negotiations were begun In Nan: king between representatives of the two countries early in September and continued for more than three months. Believing that in view of the Chinese attitude an indefinite prolongation Of the negotiations would only serve to bring on fresh. complications, we demanded that the Nanking Government put Into practice those points on which both sides had so far reached_an agreement of views, leaving remaining questions to later conver~ sations.
"Tt was thereupon that the Chengtu and Pakhoi tneldents as such were seitied on December 30.
"The negotiations with China have falled to produce as yet anticipated results but I'am convinced that these egotlations are of significant value that they will serve os a stage in the progress of further negotiations.
"As our fundamental policy towards China is directed mos! cer-{tainly towards the collaboration, friendship and common prosperity of the two countries, a renewal of the endeavours for an adjustment of Sino-Japanese relations with a fresh resolve and determination is act only the obligation of the two governments, but the common desire, 1 believe, of both nations.
Text read from the printed page and cleaned; old type leaves the occasional error.