Washington, Aug. 17.
Terming the press despatches gi ing the impression that final agreement on the re-allocation of the defence sectors in Shanghai had been reached to be erroneous, the Assistant Secretary of State, Mr. Sumner Welles, told his press conference today that the whole question was still under consideration.
Adding that he hoped and believed that a settlement would be reached which would meet with the approval of the governments concerned, Mr. Welles closed the subject.
It was believed that Washington was willing to regard the matter as still open for negotiations over the Japanese objections, according to observers here. State Department quarters meanwhile regarded a compromise solution as possible but it was considered quite out of the question for the United States to agree to the Japanese suggestion that the American garrison be withdrawn after the British example.
Mr. Welles' statement, it was considered in well-informed circles here, indicated that the United States would not desire to precipitate a clash with Japan by rigidly supporting the decision of Colonel De Witt Peck, Commanding the U.S. Fourth Marines in Shanghai, whose vote with the British representative obtained the majority over the Japanese delegate at the Joint Defence Committee meeting on the issue in Shanghai, and also the endorsement of the Shanghai Municipal Council yesterday when it similarly overruled by majority the attitude of the Japanese members.—Domei.
Text read from the printed page and cleaned; old type leaves the occasional error.