June 21.
When the Japanese commenced the block ade of the British Concession on June 14, Of last year, it was stated that this had been done for the purpose of forcing the acceptance of the following demands:—(1) a joint British and Japanese search to be made for authors of terroristic acts already perpetrated and those which may be committed in the future; (2) anti-Japanese elements in the British' Concession to be thoroughly controlled; (3) all attempts to disturb the economic operations undertaken by the Peking Government in North China be. liquidated, and (4) silver specie now held in the British Concession be handed over to the also embodies arrangements for the suppress sion of unauthorized wireless communica~ tions. There appears to be nothing unrest sonable in these provisions and the fact that they are acceptable to both sides in the dispute which has now been ended is their completest possible justification.
The question of the silver coin and bullion the vaults of the Bank of Communications in the British Concession has been settled by a thoroughly commendable compromise. With the exception of £100,000, which is to be used for the purpose of relieving the enam ous distress resulting from the floods at hostilities in the north, that silver coin and bullion will be kept under the joint seals of the British and Japanese Consuls-General in Tientsin and shall remain in the bank where it is at present. The old issue as to who the money belongs has in no way been prejudged. It will be remembered that while It was the Japanese contention that the money belonged to the Peking Government, it was claimed by the Chinese National Government that it belonged to them as part of the reserves of the national currency. That issue has yet to be adjusted, and is one which has to be decided between Tokyo and Chungking: it was certainly not one in which Great Britain could take any other action than she did, and the fact that this present settlement has the approval of the Chinese Government is suMicient indication of the full realization that Chinese interests have in no way been Impaired. The agreement further provides machinery for the administration of the money allocated to relief purposes and for the joint control of the money by the British and) Japanese Consuls-General_ with the assistance of five experts representing Bri" tish, Chinese, French, Japanese and one otter nationality, as broad'a representation as pos~ sible in the circumstances. The last pro\ sions ensure that no difficulty will be placed in the way of the circulation of Federal Re~ serve Bank currency in the Concession and the control of exchange shops by means of short term licences. As Federal Reser Bank notes have been circulating on the Con~ cession side by side with the national currency, this particular provision can be re~ garded as officially recognizing a state of affairs which already exists.
Those who were prepared heartily to condemn the Craigie-Arita formula which was reached later in the year between the British Ambassador to Tokyo, and the Japanese Foreign Minister can see now that the fears which they expressed have not been justified the event. Thet formula, which after all merely recognized a state of affairs which had been patent for practically two years at the time, cleared the way for the continu tance of the negotiations concerning Tientsin, and provided an atmosphere conducive to final agreement which, up to that time, had definitely not existed. ' It established a basis, for that display of good will on both sides without which a settlement would not have been possible, and has proved to be the wi and statesmantile move which this journal declared it to be at the time. The mutual Anglo-Japanese success which has thus beet achieved, showing the completest_ modera~ tion on both sides, will, It is hoped, be the forerunner of further adjustments of issues which ate still outstanding. There is a large number of them. None, however, need pre~ Sent any greater dificuity than that which has been now settled. It should be possible {to adjust the differences still outstanding at Tsingtao, to provide for the reopening of the Yangtze as far as Nanking, and the implementation of other Japanese undertakings which would do so much towards improving conditions in this part of the world. It even justlies the hope that the many' local ques~ tions which have yet to be dealt with may bbe disposed of in the same effective and amicable manner. The realistic approach which the British Government made to the whole matter when it assented to the Craigie~ Arita formula last year has in the result been completely justified. It has brought forth fruit, in conditions in which any other method would have proved completely sterile, and a community, whose only reason for being in China is to carry on trade, Is more than likely to be satisfied with results such as this which have been secured without loss of dignity on either side.
Peking Government. Now, just over a year since the blockade was first enforced, 2 set~ tlement has been successfully negotiated. Which does infinite credit to the two nations: concerned, and the individuals directly engaged in the negotiations. It has been possible to formulate an agreement providing for closer ce-operation between the authori~ ties of the British Concession, and the local Japanese authorities to cover the points raised by the first two of the above Japanese: demands. That has been done in a manner
Text read from the printed page and cleaned; old type leaves the occasional error.