Helsinki, Mar. 1.
'HE occupation of Viipuri by the Red Army appeared to be only a question of time last night.
A Finnish war communique rar admitted that the Finns had retired to new positions along the western half of the Mannerheim Line. Russian troops last night could see the glow of several buildings still burning at Viipuri, but would still be forced to blast a way through several miles of Finnish territory to reach the "gateway" of the city.
Talk of mediation involving large territorial concessions to Russia still made no impression on the average Finnish official as well as unofficial Finns yesterday. The Finnish morale in the war zone and on the home front continued unimpaired, despite Russian successes on the Karelian Isthmus, A Russian attack in the direction me a new Police establishment of Division with a Japanese Divisional weapons fay Simultaneously with the putting into effect of those points enumerated above there will be a resumption of Council police control in the area north of the Soochow Creek.
It is desired to draw attention to the statement made by Mr. Hidaka in his letter to the Chairman of Council December 10, 1938, to the effect that the Japanese authorities will continue their efforts to expedite the removal of various existing restrictions as much.as possible. It is earnestly hoped that às a response to ihe Council's attitude in the matters under discussion such removal of restrictions may take place in the near future.
The following statement regarding the agreement was issued last night by the Japanese Consulate-General Since the withdrawal of the Municipal Police Force from the area North of the Soochow Creek in the International Settlement in August 1997, peace and order in the area have deen maintained, under the especial circumstances prevailing in that area, by the patrol of the Japanese Special Naval Landing Party, Shanghai. However, the Japanese authorities, with the view of bringing about the normal condition in that area as early as possible had been in negotiation with the "Municipal Council on the restoration of the function of the Municipal Police in that part of the International Settlement since the end Of 1938. Special consideration had deen during the repeated negotiations with regard to the structure of the police system in that area in view of the rapid increase of the Japanese Population residing there, and an agreement was reached in August last on general principles. However, materialization had to be post-Poned, on account of unfortunate incidents in the Western District.
"Returning to Normal"
Now that the policing of the Western District has been settled amicably and the situation in the area north of the Soochow Creek has been returning to its normal form day by day, general circumstances have become to favour the return of the Municipal Police to the area. There-
(Continued on page 8, col. 3) were gan experts discovered that two of the Mausers and the Astra had deen used in the attack by heavily-armed terrorists on a Chinese- American newspaper office in a lane skirting 160 Avenue Edward VII last July 22. The gang, whose members were later identified with a pro-Wang Ching-wei organization, threw hand-grenades and fired salvoes of pistol shots. They killed Capt. A. F. "Tug" Wilson, en American citizen, who courageously attempted to help the Police, murdered a handcart coolie who chanced to get in their way, and wounded about a dozen others, including three Chinese policemen.
Text read from the printed page and cleaned; old type leaves the occasional error.