Tientsin, July 15, Lieut-Gen. Kiyoshi Katsuki, new Commander-in-Chief of the Japanese garrison in North China, visited General Sung Cheh-yuan to-day and presented terms for settlement of the North China crisis, "Although their nature has not been divulged, it §s believed that the terms admit of alcussion—Reuter, Hopei and commander of the 37th Division, and General Chi Teh-chun, Mayor of Pelping—and the wide scope of the Japanese desire for the Femoval of anti-Japanese activities The Chinese negotiators desire that any understanding for a truce should be tong enough to give time for other negotiations "on wider issuee, On the other hand, the Japanese consider it necessary that "the Chinese should carry out the conditions' con-lained in the alleged settlement of July 11 before there "are" further talks on other issues, Purely Military Mr. S. Kawagoe, the Japanese Ambassador, insisted, at an" interview, that the issue at present was purely. military and was limited to respon sibility' for the recent incidents and prevention of a recurrence. Other Issues, he added, were not being discussed.
The Ambassador did not believe that a settlement of the issue -of economic ce-operation would involve changes. inthe personnel of the Hopei and Charhar Political Council, and expressed the hope that General Sung Cheh-yuan, "Chairman of the Council, would take up the matter.
China Will Not Yieta The Chinese authorities are deter mined not to sign another agreement similar to the Tangku and Ho-Umetsu Pacts, the "Yi Shih Pao" quotes Mr. Chen Chuch-sheng, direeor of the Peiping-Mukden railway {udministration, assaying! to-day.—
The Chinese Reply Nanking, July 15, Comments offered by a Japanese army, offer on the Chinese Governmen's handling of the Lukouchiao incident, as reported to-day, were strenuously refuted by a high Chie As to the charge levelled by the Japanese that the Chinese Government was borrowing the help of Japanese troops to wipe out non Central forces, the official declared that no discrimination was made by the Government towards "'Chinese armies. Any foreign country, the oficial said, which employs military means to invade China, will meet with the strongest resistance of the nation—Central News,
Text read from the printed page and cleaned; old type leaves the occasional error.