That has remained the fixed policy of the United States. In July 1937, the "Marco Polo Bridge Incident" near Peiping proved the prelude to the Japanese invasion of large regions of China. These military operations obviously contradicted most of the tenets of United States policy both regarding general international policy and China. The conflict of interest was sharply dramatized in December. 1937, when Japanese naval bombers sank the United States gunboat Panay. with loss of Jife and numerous injured, The Japanese government. officially regretted "the unfortunate incident" and later made reparation to the victims and their families, but the Panay affair nevertheless deeply impressed the American consciousness as evidence of no confidence in United. States-Japan relations.—United Press,
Text read from the printed page and cleaned; old type leaves the occasional error.