Had the anti-British agitation re~ ceived the sanction or authorization of the Japanese authorities, it was asked, the reply being, that so long fas the sentiments of the Chinese did not interfere with the peace and order of the occupied territories, the Japanese were content to allow them to continue their actions.
Another correspondent then asked the spokesmen could differentiate between the British loan to China and the Sino-German barter agreement. In reply it was pointed out that the British loan was made recently, while the German agreement existed before hostilities broke out. "It was a matter of time clement, and the loans were definite aid to Chungking.
When asked if the Japanese favoured the termination of ihe Sino-German barter agreement (Chuna-King), the Embassy spokesman said that an answer was outside his sphere.
After prolonged discussion, a spokesman again reiterated that the sentiment against Great Britain was known and they found that express sion of these sentiments, at least in art, was unavoidable. "We do not shine that such expression disturbs peace, and order in the occupied as Has this expression the sanction of the Japanese authorities?"—"There is no_question of sanction."
General anti-foreign agitation is not being undertaken or allowed, and the anti-British sentiments were not be= ing promoted—they arose spontaneously, he It was then pointed out that no one had noticed any anti-'American expressions and, "what has England done that America has not?" The spokesman replied that the local reactions could be gauged by the altitudes of the British and American Governments.
Tt was suggested that inthe occupied areas the anti-white agitation was being "worked-up." whereas in Chungking foreigners and Chinese lived amicably and, the retort, was "there are no official reports to indicate that the situation is "serious enough to disturb peace and order.'
Another correspondent asked, these premises being the case. why did the Japanese ume Chinese to take up residence in the conquered territory and hindered Third Power nationals In response, it was retorted that the Third Power nationals. were Third Power. whereas the Chinese were not. AM' Chinese were potential guerillas, it was suggested, but for-tieners were not, There was no Fe-
China Currency Bill Made Law London. Mar. 29.
The House of Lords today passed the third reading of the Bill effect to the Government's. decision to guarantee £5,000,000 out of the £10,000,000 credit for the stabilization of China's currency. Royal assent was given to the Bill immediately afterwards, Interest in China remains undimin= ished, despite the tense situation in Europe, and further questions on matters affecting British interests in China gured in the House of Com: mons todas Mr. R.A. Butler, the Under= Secretary of State for Foreign Affairs, informed one questioner that the Japanese had paid to the Government of Hongkong the sum of C.§20,000, to cover all claims in connection with the air raid near Shumehun, in which Japanese planes dropped bombs with> in British territory.
Invited to state the present position in Tnner Mongolia, Mr. Butler deseribed the Mongolian Frontier Joint Commission, and the smaller autonomous governments in Charhar and North Shansi, He added that Japa ese troops were reported to. be stationed at various points along the Peiping-Suiyuan Railway, but stated that the Government had'no accurate Information regarding their' actual numbers,
Text read from the printed page and cleaned; old type leaves the occasional error.