Manchoukuo was said "stable by Mr. Motoyoshi Shijo, director of the Bank of Japan. on his arrival in Mo to-day frum tour of the two areas. With the provinces of Chahar and Suiyuan feonjoying large trade in wood, oather, coal and salt, the Bank fof South Chahar, Mr. Shijo predicted, "will. prosper."—Dome: ranted to hold direct negotiations with China at the time and repeated~ ly urged Nanking {0 open direct con-
"If China had done so. say in the autumn or winter of that year, the Manchurian incident might" possibly fave been settled to mutual satisfac~ upon. But China refused and the establishment of Manchoukuo was the result."
Returning to the current hostilities, Gen, Ugaki said the "ship may take course desired neither by Japan or by China if the loiter refuses to enter into direct negotiations and stead engages in hostilities.
Text read from the printed page and cleaned; old type leaves the occasional error.