Situation Grave, But Working for a Solution Shanghai, Aug. 8.
arriving here from North "China yesterday' afternoon by" the' Dairen Maru, Mr. Shigeru Kawagoe Japan. exe Ambassador to Chine, relierated fis determination "to exhaust all diplomatic steps" for a solution of {he present. Sino-Japanese crisis, 'n'a brief statement read to the Japanese press at his oficial residence bu Route Pichon, the envoy declared: the Sino-Japanese situation is grave and delleale and_ the. circumstances Seem to me to be gradually pointing towards a dangerous crisis: T intend tovexhoust all diplomatic steps. Securing a solution"
Beyond' this, the ambassador "ée-clined. to comment Asked whether or not he would proceed to Nanking, the Ambassador Gild he- did not know.
The envoy, who declined to answer any questions on his arrival at 430 Glock yesterday afternoon, received Japanese correspondents and report: cee at his oMelal residence at" 10
Previous to meeting the press, he conferred "with Mr." Suemasa Gkamoto, Japanese Consul-General; Me, Akivosht Tafel, Ast. secretary, Saw, other members of the Embassy
[Nanking Spokesman's View Nanking, Aug. 7.
Interviewed by newspapermen ioday, a spokesman of the Waichiaopu, Staled he had no definite informa whether Mr, Shigeru. Kawagoe, Japanese Ambassador to China, Wa coming immediately to Nanking from Shanghai, although when the Topanese Ambsssador eft for Tien= isin he told Chinese offeials|of his Intention to return to the South atter_ about" one month's absence.
Questioned nent the Government's attitude inthe event. Mr. Kawagoe Gesiring to open negotiations "with Nanking, the spokesman. said. such negotiations might be entered at any time as long" as diplomatic relations continued to exist between China and Sapan.
emphasized, however, Sino Japanese relations had reached ruch aerial stage that the issue Peace or war would have to. be Selermined at this. very. moments "Tt igs not {00 late to avert a disastrous conflict by strong deter ination and greatest efforts onthe Dart of Japan towards that end," the Spokesman declared. "Paing" such efforts" he added, "it would. be cult to discover any ray of hope {or peace"—Centrai News.
Text read from the printed page and cleaned; old type leaves the occasional error.