"There is absolutely no foundation for reports which are nding ered-nee in certain quarters that negotia~ {ions will be" opened directly with Chungking, ie ip inthe nature of {ings that operations directed toward the disruption of the Chungking Govminent. should be continued. while fnaintaining. close. touch with, the Wang. répime, because efforts 10 bring about. the downfall of the Chungking: regime from every. pose Sible direction. are sure to result In Strengthening. the new Chinese gov TTianow that mangouvres by third Powers with regard to the Chungking Government are being brailed about. Star os 1, know, there is nothing new about third Power activity in Connection. with Chungking. T pet= Sonally believe tu bringing the china inet to a8 speedy aetement Pent am ted to understand that tally will fea the third Powers in extend Ing formal recognition. fo. the new regime in China. 1 do not. know Inything abou the possible attitude of other third. countries. toward (he new Chinese government.
"AS a_matter of principle, the Yangtze' River will be reopened to general shipping at the earliest Spportunity. The matter has not yet Teached a stage that. permits me' Commit myself on the exact time of It is the policy of the Japanese Government fo. ecornize. the "new Fégime as speedily ay possible. The Government holds the view that cognition. will' come. following. the Sigiature of a asia Sino-Japanese agreement, Concession Denials Ease Tension in Tokyo rom Pmey Wurtnxe NCDN Special Correspondent in Japan Tokyo, June 7.
Japanese army and navy authorities have evinced a keen interest in denials which have appeared in the "North-China Daily News" that a transfer of the French Concession Shanghai to American authori~ ties is contemplated. Consequently tension aroused here over the rumours of a change in status have been relieved. non-involvement policy, depending on. the development of the European situation, But the Japanese Government has a mind to cope with any conceivable contingency.
"As for the outcome of the conflict, there is a belief that it may end much sooner than generally supposed. Another school of thought doubts whether Britain and France will accept defeat. There is much speculation over what Germany would do to Western Europe if it won the present struggle.
"There is no change in the policy of this country toward the Nether~ Tends Indies, which was enunciated not long ago'by the Foreign Minister, 'There is one body of opinion which asserts that there is an Urgent need for Japan to effect a guarantee occupation of those islands in, the event of the destruction of the status quo there, or at least to reserve 0 voice in' the disposition of the question.
Text read from the printed page and cleaned; old type leaves the occasional error.