As rumours of an carly settlement of the Eastern District question, entailing a speedy' reopening of Hongkew and—Yangtszepoo, persisted yesterday, a spokesman for the Shanghai Municipal Council stated that the negotiations between the Council and the Japanese were still in progress but that an carly restoration to normal conditions seemed unlikely. The spokesman said the negotiations had not _produced any important results in the last few days, as had been reported in Chinese newspapers. The questions transportation, policing and the status of the area in general have not been settled, he indicated. because the distribution of presents: was made personally by Her Excel Teney, Marchioness Taliani de Mar-chia, in the presence of H.-E. th italian Ambassador and of he Ital Acting Consul-General, Dr. Franco Farinacei, and secondly because some JGerman children belonging to the Nazi Youth Organization and some Japanese children were present and {0 them also gifts were offered.
The ceremony which took place in jan atmosphere of serene merriment but which at some moments was not void of solemnity was opened by Mr. L. Riggio, secretary of the local "Fascio," with a speech which was successively translated into German and. Japanese. The feast was concluded by a tea party and the show= ing of a lin, Among those who attended were all the officials of the Royal Italian Embassy, of the Royal Italian Consulate-General the representatives of the Royal Italian Navy and of the the San Marco Battalion, and a large umber of members of the local Htalian community.
May, travelled to Japan to open Jan, 5 ashe who, passed a new Mohame
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