Washington, Aug. 17.
Termingg the press despatches ting the impression that final agreement on the re-allocation. of the defence sectors in Shanghai had been reached to be erroneous, the Assistant Secretary of State, Mr. Sumner Welles, told his prest conference today that the whole question was still funder consideration.
Adding that he hoped and believed that a settlement would be reached which would meet with the approval of the governments concerned, Mr. Welles closed the subject. was believed that Washington xas willing to regard the controversy over control of ish defence sectors in the International Settlement in Shanghai can be effected locally, the acting Secretary of State, "Mr. Sumner Welles, said here yesterday.
The question is still under discussion by Japanese and American authorities in Shanghai and has not become a matter for the State Department, he said.
Mr. Welles seid reports that a settlement had been arranged at Shanghai were confusing—United Press. possible but it was considered quite out of the question for the U: ies to agree fo the Japanese suggestion that the American garrison be withdrawn aller the British example.
Welles' statement, it was con-informed circles here, indicated that the United States would not desire to precipitate a clash with Japan by rigidly supporting the deci Sion of Colonel De Witt Peek, Com-
Western District Tenants Told Not to Pay Rents Shanghai, Aug. 18.
Tenants of houses'in the Vu Yuen and Brenan Road districts in the west ern area. of Shanghai, shortly to become part of the Japanese defence Seetor after the withdrawal of British troops from the city, have been advised by several Japanese and Chinese persons not to pay any more rents {o their present landlords but to wait until a Japanese organization takes over the property after the evacuation of British troops and the inclusion the district in the Japanese defence sector, according to several reliable Feports yesterday, The reports stated that on Aug. 15, the day on which the conference of the Joint Defence Force Committee was held, a party of Japanese and Chinese visited the Vu Yuen. Road area and advised tenants of property there, Including foreigners, "to" pay their rents in future to a Japenese organization. When asked to. identity themselves, by one foreigner, the members of the party stated that they represented an "official organization They did not produce any article identify themselves, however, Yesterday a similar party of Japanese and Chinese persons was reported have visited the Brenan Road area on motor eyeies. According to reliable reports they visited houses in. this rea and advised tenants to withhold payment of rents until the sector taken over by the Japanese, Under the terms of the agreement reached at the conference of the Joint Defence Force Committee the Western district sector was voted to the Japanese and the central sector of the British forces to the United States Marines. "'The Japanese have reserves the right to make counter-demands, American Commer Attache Retiring Shanghai, Aug. 20, Mr. Julean Arnold, U.S. Commer-dal "Attache to China, "and senior American foreign service emeer in is leaving for California wife, following his resigna-ion from the U.S, Consulate-General, Mr. and Mrs. Arnold will probably sail "for America next month, and Will make their home near' San Francisco. Many farewell functions fare expected to take place for the retiring attache, A dinner is planned for September 9, at the American Club, at which a number of Shang~ hai organization will come together to give a combined farewell party.
During his 38 years in China Mr Arnold has established himself an expert on American-Chinese trade affairs, having furthered commercial relations between the coun tries to a very great degree, His departure will bea loss 10 the commercial interests. of the two countries, it being said that no man has a better grasp of Chinese trade than. he.
Mr. Arnold-has twice brought out "The Commercial Mandbook for China," in 1918 and 1925, a_ most useful textbook. Te has' done a good deal of lecturing in the US.A.. where much interest in China has been aroused through efforts, Two clubs, the China Club of Seattle, and the Asia House of Los Angeles were formed by' while in America, The Chinese community hhere will regret Mr. Arnold's depar ture, as he is_greally respected. for his work for China, representative obtained the majority over the Japanese delegate at the Joint Defence Committee meeting on the issue in Shanghai, and also the Wdorsement of the Shanghai Muni cipal Council yesterday" when similarly overruled by majority. the altitude of the Japanese members.—
Domei
Text read from the printed page and cleaned; old type leaves the occasional error.