Mr. Shozaburo Mogami then referred to a statement which he attributed to Mr. Neville Chamberlain, British Premier, to the effect that the responsibility for the non-payment of interest on Chinese railway bonds rested with Japan.
"China has obtained many railway loans, particularly those floated in Britain," Mr. Hidaka stated. "Consequently there have been many requests to the Japanese Government that something be done about the losses incurred by bondholders. But ihe Japanese "Government believes that such negotiations should be undertaken with the Chinese Govern-tries.
The Finnish war placed China in the most delicate position, it is said, and has resulted in abstinence of voting on the part of China at meetings of the League of Nations since, although Russia has given valuable assistance to China in the present Sino-Japanese hostilities, China cannot openly support Russia's invasion it Finland, as she herself is the victim of Japanese aggression.
The successful conclusion of peace negotiations between Russia and Finland would, it is thought, automatically solve a delicate question which has been constantly occupying the attention of Chinese leaders, namely, what policy would be adopted by China were Russia to be involved in the European war.
It is considered that the danger of Russia becoming involved in such a war against Britain and France would become less, once peace was concluded between Finland and Russia.
The conclusion of a peace between these two countries, it is thought, would enable Russia to give more attention io the Far East.
Text read from the printed page and cleaned; old type leaves the occasional error.