Ominous reports characterized the development of the Northern situa. tion last week, The reflection of opinion in the market here was disturbing, The warnings given Japanese community by. its. official \avisers betokened on one side at Toast a clear belle that the hopes of localizing the Peiping class fading. Tokyo messages. also indi ted the adoption by the authori of an attitude which gave itt Ground for cheerfulness." The Jo: being, prepared for some kind of "positive dation" by the military "and naval forces of the Empire. Mentor who attach themselves to the. Jai point of view are able play with events and incidents to ive colour to their contention that" an, "anti-Japanese" "campaign, belie deliberately organ-zed by the Chinese authorities. This Seems to be unfortunate and a palpable misreading of the situation. The simplest way of discouraging "anti-'Sapanese™ activities and sentiments surely that of giving Japanophobia no basis' for Its exorcise. Japan~ Jose statesmen have said much of the heed for recognizing China's status of equality, for taking a "new cone cept" of her affairs; how do such satements square with the apparent altitude of Japan's military ofoers in he North or with the elaborate display, of minatory, force "now. being developed in Tokyo? It will be agreed that in approaching the problem of economic ce-operation Japan "and China re," present handicapped by a marked diver~ gence of- view. Japan wants to Jobtain at once "from China assurance of Yeadiness to enter upon that highly desirable joint adventure, {without regard to politteal conditions. 'China, on her side, would prefer to have certain political Issues' definite determined before she commits Herself 10 any form of economic Joperation, Both points of view have, doubt, their validity, but it shoutd hot be beyond the power of diplomacy to reconcile. them by some form of compromise. China may Indeed urgue thab recent events prove the reasonableness of her reserva tion, Is Japan desirous of under Tining that argument? The reported Jdevelopments raise justifiable anxiety fon that score.
Text read from the printed page and cleaned; old type leaves the occasional error.