"Death Blow" Said Dealt; Britain's Far Eastern Policy Seen Collapsing; Chungking to Suffer Nanking, June 19. ADJUSTMENT of Sino-Japanese relations should be effected immediately in order to enable Japan and China to jointly meet the effects on East Asia of the European conflict, Japanese and Chinese military authorities here urged yesterday.
Any possible effects of the European war on East Asia should be solved by the East Asiatic nations, particularly by Japan and China, they stated, These authorities, furthermore expected an increase of German and Italian influence in the Far East as a result of possible French withdrawal from this part of the globe.
The belief also was expressed that Germany and Italy, especially the latter, would ce-operate in the establishment of a new order in East Asia, Both of the countries are definitely anti-Communist and have an accurate fond sympathetic understanding of the factual situation in the Far East.
aly, it was added, has expressed hhere intention of recognizing the new [National Government of China at Nanking.
"A Death Blow"
France's defeat in Europe has dealt a death blow to her position inthe Far East, the same military [authorities here declared, adding that France which possesses Various rights and interests in the Far Best, has been constantly giving material and spiritual assistance to the General Chiang. Kai-shek regime since the outbreak of the Sino-Japanese hostities, It was further stressed that France has been continuing to refuse re~ Jcognition of the new National Government following its return to Nan king.
Any further assistance to the Chungking regime by France is impossible as has been witnessed by the Feeent announcement of the Feorganized National Government China, in which it refused to. recognize a loan agreement between the French and Chungking Governments.
Tt was believed in these quarters that following French capitulation la Europe, French Indo-China would lose its position as a supply route to Chungking.
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