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TO LEAVE LEAGUE.

JAPAN'S DECISION.

WITHDRAWAL FORTHWITH.

REPORT UNACCEPTABLE.

TOKIO. Feb. 18.

The Cabinet decided at a meeting to-day     to withdraw forthwith from the League of Nations. The Prime Minister (Viscount Saito) will interview the President of the Privy Council (Prince Saionji) to-morrow   to inform him of the Cabinet's decision.

The Privy Council of Japan occupies a     peculiar position in the constitutional sys-     tem of the country. It is not like the Privy Council of England out of which the     British Cabinet system has grown. Its functions are chiefly of a consultative nature, and it meets to deliberate on im-  

prtant matters of State, when its opinion   is asked by the emperor. Its powers are entirely negative; nevertheless it exercises a strong influence in Japanese politics. It consists of 26 members, with its own presi- dent and vice-president. They are all Elder-   Statesman, who have played important parts in the administration and although they no longer take an active share in it then age and prestige entitle them to wide

respect.      

GENEVA, Feb 18.  

The Japanese delegate (Mr. Matsuoha in a statement issued to-day said:-"I am       awaiting official directions from the Cabinet

The Cabinet naturally cannot accept the   Committee of Nineteen's report but that   does not necessarily mean that Japan will withdraw from the League. If the Assem bly adopts the report I shall immediately return to Tokio. The situation is so grave   that I suppose the Government will im mediately place the matter before the Japanese Privy Council."  

Attempt at Compromise.

LONDON. Feb. 19.

The Geneva correspondent of the '"Sun- day Times" writes that Japan has no wish to leave the League, and that she is ex- pected to attempt to obtain a last minute compromise, even to the extent of waiving her point concerning Manchukuo, if the Powers admit its autonomy and allowing its ultimate destiny to be decided by the conference.

The correspondent of the British United Press says that the Japanese delegation has been directed to reject the report and recommendations of the Committee of Nine-

teen.

COMMITTEE OF 19.  

REPORT PUBLISHED. Chinese Sovereignty.

Recognised m Manchuria

(British Offical Wireless.)    

LONDON. Feb. 17.

The report and recommendations of the Committee of Nineteen appointed   by the League of Nations Assembly to con sider the Manchurian dispute were pub- lished to-day. The report has been pre-   pared in accordance with Article 15. Para- graph 4. of the League Covenant, following   the failure of the committee to effect a settlement by conciliation under Paragraph 3 of the same article. The report is a document of some 15,000 words. The first part approves of the first eight chapters of the Lytton report as a balanced   impartial, and detailed statement ot the his torical background ot the dispute. The second part examines the development of  

the dispute after September 30, 1931. The third offers the Leagues conclusions, and the fourth sets out recommendations.

The recommendations are contained in three chapters. The statement is set out in the second chapter that whereas sov- ereignty over Manchuria belongs to China     and, considering that the presence of Japanese troops outside the zone of the Southern Manchurian railway is incompat-

ible with             govern the settlement of the dispute, the

Assembly recommends the evacuation of these troops with the appointment of a negiotation committee charged as its first     object to organise the evacuation and deter- mine the stages and time limits thereof.

It is further recommended that there     should be established in Manchuria, within reasonable time, an organisation under   the sovereignty of and compatible with the administrative integrity of China, which would provide a wide measure of       autonomy in harmony with local conditions and would respect the rights and interests of Japan and third parties. As already has   been reported the recommendations pro   vide for the negotiation committee to be set up after China and Japan have accepted   the recommendations the United States and Russia being invited to participate.  

The Assembly's attitude toward Mancha      

kuo is defined in the declaration that the maintenance and recognition of that regime are incompatible with the fundamental principles of existing international obliga-   tions and with good understanding be- tween the two countries; on which the peace of the Far East depends. It is added that   members of the League will continue not to recognise this regime, either de jure or de facto. The League of Nations Assem- bly will meet on Tuesday to take a note of the failure ot conciliation and on Friday it will be asked to accept the report and

recommendations

Newspaper Comments.

"Temperate and Well-considered."  

(British Official Wireless.)

LONDON, Feb. 18.

The draft report on the Manchurian dis-  

pute, which will be submitted to the     League of Nations Assembly next week, is regarded by the newspapers as a temperate and well considered document.

"The Times" says - The League having rightly interpreted its functions as being mediatory, nothing remains for the full Assembly but to adopt the report and re commend the settlement which the report advocates " Referring to the section of the

recommendations which excludes the main tenance of the existing regime in Man- churia. "The Times" says- The corollary is that, if the Assembly adopts the draft report as it undoubtedly will, members of the League are expected to abstain from any act which might prejudice or delay the   carrying out of its recommendations, and   to continue not to recognise the present regime, either de jute or de facto. It is clearly of the highest importance that all the countries with interests in the Far East should abstain from taking any iso- lated action and should concert their policy in regard to recognition. It does not seem   necessary that all the States concerned should tie themselves down now to any particular course of policy for all time, but   ttaking the League's report as their starting         point they should all pursue the same  

policy, and modify it only by common  

consent.

The "Manchester Guardian" says: -' The recommendations contained in the report   which will now be adopted by the Assem- bly, form a strong condemnation of Japan   and also summons her to negotiate though the organs of the League, a settle ment loyal to the treaties which she has signed. If Japan refuses to accept the assisi

ance which the League offers, then, acting together with the United States and Russia the League must consider what measures it can take to make it impossible for Japan permanently to stand her ground. "

Lord Lytton's Speech.

Resources of the League.

(British Official Wireless.)    

LONDON Feb. 18.  

Hit lail ol Ljtton cb ninian ot th* League ot \ i lions Mission to Min chuna in a speech in Maiichestu lust night said - ' It either ot tin* pal tics in this dispute lotuses lo ii

<ejit the pi nilen d i-sistiuce ot the I n""uc ind lets in i nimmel winch con tiavcne- tho lovenini then the lesoutces ot tlu I eigne ni bj n > mc ins exhausted 1 lune csjttsscl Hu lies tint "oing In w u to tntoici pt i t siemed to be no temtdv imd 1 I in -ni tb it i univeiflil itoiioiini bloel iib whub would cut off li linpoits li oin lapan is is not on!} 11 no1 in its opci mon bocius it would peniliic the innocent lopulinon laibei thin the Irani gi PsMiif" ' oseiniiicnt but tlsil it would

ilniost citiinK (loiipitdte no actual »tutt

of wai But there aie man} othci foims of prefine which could be exeiciscd such as an embargo on the s ile of anns or the re tusal of financial assistance to the default ing Stale oi the withdraw ii ol diplomitic icpieseiltitivcs 1 am not si}ing that am of these steps should be tnl on it pi osent or »it an} paitieulin sti"i because obviouslv it must be foi îespmsiblc Governments to decide the time ind the mannet ot exei

using prebstiic 1 onl} xv mt to male it clear that I do not exclu le these fiom the Heps which mav be tiken it md when necessai} '

POSSESSlÖFÖF" JEHOL 1 SANGUINARTSTRUGGLE.

. Predicted by Observers.

Money and Equipment foi Chinese

SIl lNGlIxl leb 19

loieign obseivcis it Pcipmg (Peking) pi edict a leal vsnr between Ubini and Japan which will lcsull in a saiigumaiy t-tinggle for the possession of Jehol Pio a ince lins bebeg bus been bticngthened bj a visit b} the 1 mince Munster (Mr Soong) who has made nian0einents to suppl} Ile noilbcin annies with all the mono} ind equipment needed for piolonged lesistancc to the Jipancse threat to sen-c the last i emuming section of the territoi}, loi mcily known as the linee Lastein Pi o

x mees

Mr Sooiig, with Gencial Chanag Hsiieh Liang and Geueial Chang Iso Hsiung, the iormcr Governor of Kum Piovince, hab just completed an ardoiis motoi journej dong almost impassable louds to Changtch, the capital of Jehol, foi the purpose of com- pleting final aiiangcmenls for aimed résist- ance He v ibited the ti oops, addi essmg and i neouraging them to light to the Inst man This visit bj one of the highest officials of the Nunking Government has considctabl} heightened the mond of the 1101 Hiern forces ns it is now obvious Hint the Government is piepaicd lo tluow its whole weight into the struggle, in winch it is bneked b} the whole nation from Canton to Peipnig 'Hie northern foi ces îecentlj complained bitteil} about the Nanking Government's ap ith}, and General Chiang ICai Sbek the

head of the Government, was eiiticised foi | his fuluro to send troops and supplies to assist in the defence paitieularl} following

the loss of Shanhaikuan

Suppressing Communists.

Gencial Chiang Km sbek lias been placed in an avvkwaid position, as his

troops are the onl} hamer between me Chinese and the Communist foiees at Chekiang and Kiangsu, which lie has been i iithlessfy suppiessing fot 12 months 'Hie Goveiument points out Hint the with diawa! of Gencial Clnung's forces m any lonsideinblc nuinbei would leave the in tenor provinces open to Communist ad xanees, which olîei a tlangct almost ns gi eat as a Japanese invasion of the noith it is geiierull} known thal at the fust sign of weakening on the put of the g'ene rahssmio s campaign against the "Reds" a conceited dine would follow with the

object'of reaching Hankow 'Ihe piovince« of llupeli ind Hourn mo teeming with Communist ti oops, mini} of whom consist of the tournants of the foiees of deposed provincial wailotds including a huge liiini bei of Geneial Feng Ytir snug's Com munist urn*} which fonncrly held Honan The Nanking Government, howevei, is pie pared to take a chance about the Com munist nctiv liles to assist m the anti Japanese campaign

Arcot ding to messages fiom Peiping (Peking) no internal situation since the Boxci lobelhnn has become more scnous than the Jehol situation It is no longci a diffeience of opinion between Chinese and Japanese militniists, but n tin cat of leal win between dunn and lupin Jil Soong's visit to Peiping the public cxhoi tations to Hie tioopb, the laising of i loan of £20,000,000 dolíais foi the spécifie pur pose of pioviding and suppbmg the nimias to resist Japan, indicate unmistngabl} ti deteiinination to resist Japan lo the utter most Ihe ofliciil Chinese view is that the League of Nations has done all possible to give China a moial victor}, but it cannot do moie theicfoic the Chinese must use ph} sical foi ce which the League does

not possess

Ultimatum Delivered

\ Chinese olhcial communique lepoics thnt the Tapanuse eoinmniidcr at 1 ung I îao dch v ci ed an ultimatum lo the Chinese com mander at Kailu the noitbcast coi not of rdiol lo ev licúate the eilv îinmedi itclv or he would be attnel ed Hie Chinese disie "aided Hie tin cat Mcinwlnle theic bnve been further considciable movements of Jnpiinese troops ni tho vicimt} of Chin <bovv wbeuce a drive is expected to com monee in tin ce wa} s

Alnnchuriiin lepoits show thal the Japan esc piepnallons aie now pincticnll} com ploted Gcnenl Afuto is meiclv waiting to ¡lunch an attack Chinese foi tes aie ciilnilv awaiting the Japanese advance It is esti

mated that including xoluiiteeis loO 000 Chinese are massed at strategic points out side the Gieat Wall Hie} aie well sup plied with munitions The occnp} temtoiv w Inch abounds w itb lintui ni defences It is predicted that if the Chinese thsplnv the same dcteimunition ns the Iflth Route Armv did at Chapel last }eii and me kept sup plied with ininiunition and lemforced the lapauesc foiees will piobubl} have the most dilhtiilt tibk vet mulet taken since the Sino Japanese dispute commenced Ihcie is even indication that the Chinese will fight moro stubboinl} than evoi befoie

in then li ist013

League's Quarrel With Japan.

Depiecated by Mr. Chui chill

LONDON leb 17

Mi Winston Chin chill AIP addiessing the Anti Socialist Union depiecated tlie

League of Nations quaile! with Japan

'Hie League he saul lind n gi cat woik to do in Lurope God foibid that it should collapse Ile resented pennv wise ccono lines and grudging 1 ngbsb eontiibutions to lliem, but the League in the 1 ni 1 nsl was attempting a tusk i emote fiom its sphere of influence Piofessed socialists ni d professional pacifists would line it into a dispute which it was poweiless to cam

through

It was as useless to afliont Japan as it Would be to oulci the Swiss ind C/echo slovaltian navies into the Yellow Sei Ah Chin chill pioeecdcd Fiighiul should mulei

stund tint Japan vi ts menaced ou one side b} the Soviet and on the othti b} the olmos in China five pt ounces ot whichivcu being toi tin ed bv Communist nile He had n gtent logaril for Lulled St itcs opinion but the Lulled Stiles which bul tied up the Bntish JNnvv with iniiei-sonablc tren tics was not entitled to mge Gleit Bil tim to quail el with the island Powei foi which despite the dib igt cement Gi oat Hil tun had a lasting i eg n ti

Cargoes to the East.

LONDON. I ob IS

'Hie "Baili 'leleguiph" stales tint Llo}d's, linderniiteis. »nil manne nisui

ance companies have decided to give itotut* cancelling wui usl.s on em goes loi Japan and China including Hong Kong. Ibu will take effect IO dnvs allot Mondai, mil will enable undia vi i itei s to thai gc lughei premiums in aicouluiice with the iiuicascil

risk of wat

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