Tokyo, Aug. 8. Events. since the Lukouchiao, incident on July 7 have aggravated the Sino-Japanese situation and have 4c centrated forebodings of a major probably of a long-drawn-out struggle. Observers here expect hostilities to be re-opened in the course of the present week now that the Japanese communities in the Yangtze Valley have been evacuated and Sino-Japanese relations virtually severed.
The Nanking correspondent of the "Nichi Nichi" reports that officials of the Japanese Embassy and the Japanese military and naval attaches, at 9 conference on August 6, agreed tha: it would be useless for the Japanese Ambassador, Mr. Kawagoe, to go to Nanking inasmuch "no peat settlenient by diplomatic negotiations is possible in view of existing conditions."
"Accordingly," the correspondent adds, "Mr, Kawagoe is not visiting Nanking for some time.
Convinced that the Western Powers, not in any way interfere, Jzpan, zing large forces "the drastic surgical operation needed fundamentally to remove the menace to Manchoukuo." Reuter,
Text read from the printed page and cleaned; old type leaves the occasional error.