The Soviet and the Japanese Governments, both of whom seem to have positive genius for finding subjects upon which they can disagree, fare now at odds again over the Saghalien Island all dispute, and it is reported that a serious situation has arisen. On July 16 the Japanese delivered a Note to the Soviet Government protesting against certain fines levied fon, Japanese coal and petroleum firms for failure to comply with the terms of their contrad under which Russian labour was em= ployed. The Japanese requested that the judgment obtained against their firms should be set aside because they were unable to secure permits to import the goods necessary to comply with their contract, that the Soviet had failed to provide sufficient workers to enable them to operate properly, that it had refused Japan. permission to load oil_at three principal loading points, and wound up by demanding that a reply should be given to these representations by July 18, the day before the judgments of the Soviet Court were to become operative, The Kremlin took the view that since the Note. contained threats, and a time limit, it amounted to fan ultimatum and consequently returned it without considering it. The threat appears to be to the effect that Japan might be forced to take "serious measures" after the deadline on July 18 unless the Soviet changed it policy, and hat same firmness which the Moscow Government has been consistently displaying toward Tokyo is again being shown. 'The facts on which the Soviet Court made its finding have not yet been divulged, but it would seem that! in view of the size of the fines, amounting to Rls, 560,000, its view of the Japanese concerns' delinquineies must indeed "have been very grave. On the other hand the Japanese claim that they were hindered from' carrying, out their contract by the action of the Soviet Government itself, and this, if true, would seem to indicate that there maybe much to be said for the Japanese point of view. Whether anything serious will develop out of the present impasse is something which only the future can fell, but if this {urns out to be only another of those midsummer amusements in which the two governments annually indulge there need be no very great surprise. Japan ix not likely to extend her military commitments by gain to war with Russia, The New Dalai Lama Alter years of investigation and examination of sinns. and evidence which might full the the will of the last Dalai Lama, who died at a tipe old age, contrary custom and proceed it is reported that at last successor has been found. He ix described as a bright youngster of five discovered ina tribesman's eave in Kokonor, and only slightly his brother being a temple. He is now "hora he: Whit'
Text read from the printed page and cleaned; old type leaves the occasional error.