Wang was said to have blocked Japan's proposal that a ese sphere of influence be established in the Shanghai-Hangchow-Nanking area by refusing to grant political privileges. However, it is believed here that Wang will make special concessions to Japan in that area, The above programme is understood to have been agreed upon between Wang and the Japanese army in Nanking on December 20. Wang is expected to confer with the leaders of the Peiping and Nanking regimes about January 15 preliminary to the establishment of a central regime under the "Kuomintang" banner. Formal peace negotiations with Japan will then begin, it is understood.
The Premier, Gen, Nobuyuki Abe, reported to the throne today on developments in the establishment of a new "Central Government" in China.
Meanwhile, the press gave prominence to the impending establishment of the new Central Government, and speculated on its final form,
Text read from the printed page and cleaned; old type leaves the occasional error.