Paris, July 3.
COMPREHENSIVE outline of China's present situation was made at the last meeting of the'Pacific Relations Committee by M, Jean Escarra, former legal adviser: to the Chinese Government, who recently returned from the Far East.
Escarra dealt with China's government structure, financial, military, and social situation, and her relations with foreign Powers.
"When I left China, my general impression was rather optimistic, although I do not wish to make any forecast as to the results of the war," M. Escarra added.
"This impression resulted from my personal observations and the interviews I held with the Chinese leaders, notably General Chiang Kai-shek, Mr. Wang Ching-wei, and Mr, Wang Chung-hui, the latter a personal friend for the past eighteen years.
The speaker recalled that he had gone to Hankow upon the request of the Chinese Government and had lett that city on May 31 this year.
"My observations-and conversations took place principally in Rangoon. Bangkok, Hanoi, Hongkong, and Hankow, where 1 met several high personalities, while in Hankow my Gutles brought me to dealing with several. important questions in respect to. the Sino-Japanese conflict," he declared.
"The speaker then spoke on the structure of the Chinese Government, "Phe Government is extremely solid and united, 'There are no fissures' as sume were inclined to believe. All personalities, even of different opin-fons, are collaborating in full har-many with a common object in view. General Chiang's personal situation most powerful, both in the Government and in the Kuomintang Party, of which he is the supreme leader since April this year.
Kuomintang and Communists there are relatively few' Com-Mi, Escarra stated. "They seem to be keeping the promises made in the autumn of 1937 and are col-Tnborating with the Government. My impression is that they are directing themselves towards a sort of socialism throughout the nation, The former Communist Army, now the 8th Route Army, i not directly supplied by the Soviels who send material and munttions to the Central Government.
"There are no Communists in the Government and in the Kuomintang Patty, and their activities are being carefully watched over. The Communist danger would be susceptible of reappearing only in the event of; defeat for China."
"The financial situation was satisfactory at the date of my departure, Stocks of gold abroad were heavy Domestic loans were well receive although the Japanese financial manoeuvres in the areas occupied by them are liable to bring depreciation of the Chine Most of the supplies purchased abroad Turning to the military situation, 'M, Escarra: stated that foreign military observers, particularly the Germans, had nota very high opinion of the Japanese Army, although up to the present it has been superior in many respects to the Chinese Army, The Chinese Army is improving constantly and the new courageous, Intelligent, and disciplined Chinese soldier is viewed very favourably by technicians. The battle of Taierchwang is considered as having been 'a set back for the Japanese Army and an event of extremely great signlfleanee in the history of Asia.
"The awakening in China of a certain form of national spirit is an obvious fact. One may also note treat progress in the discipline, order, Organized and intensive work. Japan is not aware of the indirect good turn she is doing to her neighbour. One fof the elements of this progress may be found in the excesses committed by the Japanese Army of whose conduct the Emperor, as Supreme Chief, supposed to be directly responsible, There is at present a file constituted exclusively of signed statements written by neutral observers and containing atrocious details making evident that the mtich-heralded chivalrous and disciplined ideal of the Japanese Army has often been The behaviour of this Army has created deep indignation and Japan drew upon herself the hate which has come 10 the point of speeding up the formation of Chinese national conscience.
remarkable fact Is the extremely active role played by Chinese women in all spheres. Another outstanding fact is the industrial development and the: activity of factories transferred from Shanghai to the western provinces.
Text read from the printed page and cleaned; old type leaves the occasional error.