'Tokyo, May' 20.
In accordance with a declaration of May 6, the Nanking government issued a statement declaring nulllfection of a contract for a 480,000 frane railway loan on the security of the surplus in Customs revenue for the construction of a new railway between Kunming and Suchow southern Szechuen province, according to a Japanese message from Naning.
The contract was reported to have been cozeluded between the Chung-King regime and a French foundation for economic exploitation of China.
return for conclusion of the contract France was to secure mining concessions along the projected ralilway, according to the statement, which declares that such a contract is regarded as France's political action aiming at disturbing the national movement going on under the guid-nee of the Nanking government.
At this time when the masses of China "are anxious for peace," the statement points out, the new government cannot but draw the attention of France to the fact that the Nanking regime feels great concern about the railway loan contract and. will neither recognize such a contract nor share responsibility for it—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.