Moscow, May 19.
"Pravda," influential Soviet organ, yesterday "prominently displayed 2 New York despatch citing that reliable Japanese circles in Japan had proposed that the United States mediate in the Sino-Japanese war and that Jabin offered to withdraw troops from China's interior if the U.S. would recognize Japan's dominant position in Asia, At the me time Japan was said to have proposed to refrain from any hostilities in the South Seas, provided it tan obtain economic concessions there and possibly an American loan, The despah quoted the same circles as believing that the United States Goverment seriously waa considering tht proposals, but demanded that Japan modify its attitude toward Generalissimo Chiang Kai-shek.
Although it was not known to what extent the Japanese Government regards the proposals, said the despatch, it was clear that' Japane: opinion was divided—one side wis! ing an understanding with Chungking while the other urges continuation of the war.
A foot-note in the "Pravda" story cited other sources as saying that the United States was taking the Initiative in Japanese-American proposals to negotiate Sino-Japanese differences—United Press,
Text read from the printed page and cleaned; old type leaves the occasional error.