"It was at once apparent to His Majesty's, Government that the scope of these proposals was not confined to purely local issues at Tientsin and that they were related to. other economic and financial features of the present situation in North China, "including certain measures of restriction placed upon exchange and trade, of which the views not only of His Majesty's Government of the United Kingdom but also of certain other Govern: ments had already. been commun feated to the Japanese Government.
"It also became clear, og a result lof a careful scrutiny of the position, that His Majesty's Government could nol—even if It wished—conelude a bilateral agreement which might affect the position of other powers without the consent of those powers.
"For this reason, His Majesty's Government has come to the con-elusion that it "cannot by itself properly put forward or accept any Proposals on matters of this nature which may prejudice the interests of third parties, It has therefore Intimated to the Japanese Government that no discussions on econo-mie proposals put forward by the Tatter could, in its view, lead to fany useful result on a purely Anglo-Japanese basis.
London, Aug. 19.
Britain today signed a' trade pact with China providing for a British credit of: £3,000,000 to the Chungking Government, reliable quarters reported. Although official "British Jand Chinese confirmation of the Jexport credit was still lacking, usual= ly reliable sources insisted the agree-iment was signed. today.
Confirmation of these reports would be significant since 'British financial Jquarters reported earlier that Britain had delayed signing the agreement with China because of fears that Jsuch action would intensify Japan's alleged' ant-Britsh campaign Chin:
During the Tokyo conversations between Japan and Britain, it was reported, " the Japanese "Foreign [Minister, Mr. Hachiro Arita, attempt Jed to persuade Britain to include in the" AngloJapancse formula pledge to withhold further financial assistance to China, Trump Card if Tatks Fall Banking circles here see indic luons that Britain desires. to play tie signature of. the export credit fis n trump ard in ease the Anglo-SSapanese negotiations in. Tokyo col spec. "These negotiations appeared headed "for a breakdown today and Britain was believed 10 be. prepar~ ing. 8 announce the, new edit to Ching it Japan adopts a more Selligerent attitude toward Britain.
Tnformed quarters here report that rise export credit would be' used 10 supply British machinery to China, ce' assumed. that Uni machinery Would "include equipment forthe manufacture of war supplies, include ting" equipment for" aircraft and munitions. factories,
night that they had heard repor "American banking, elle said lat fimat. the' Bane "of england "had intimated misgivings over the pro posed ereait, but on finaneiat grounds Rowever, ther ©" unconfirmed ports said the British" Ambassador f'Toxyo, Sir Robert Croigio, had formed' the British Forelkn' Ofee that. the extension of the. proposed fered it to Ching probably would. not have any grave, adverse affect on Hapan's "attitude' toward Britain—
Text read from the printed page and cleaned; old type leaves the occasional error.