12 FEBRUARY 1927, Page 2

That is an agreeable change in the situation. There has

also been a pleasant proof of a restored unity among the Powers at Peking, where a protest against the collection of the surtaxes in violation of the Treaties has been made in common by the representatives of all the Powers. The American proposal to the factions in China that Shanghai should be neutralized might have commended itself more to Chinese opinion if it were not for the unfortunate coincidence that the neutralization of certain zones in Nicaragua has been represented to the world as an example of American Imperialism. The United States only means, of course, that the Chinese should themselves regard Shanghai as outside the sphere of their operations, but Mr. Chen, who secs unpleasant visions in all directions, probably suspects, or would say he suspected, that the United States and the other Powers would want to guarantee the neutralized zone by force of arms.

* * * *