15 OCTOBER 1927, Page 1

We are inclined to believe that there is a good

deal in the report that Yen did not cease to be neutral of his own accord, as even during the fighting he has seemed to be as intent on peace as upon war. When Chiang Kai-shek was still the Nationalist ruler at Nanking Yen e011aborated with him in an attempt to make peace with Chang on the basis of a moderate Nationalism. Chiang Kai-stick has disappeared from the scene, but only a few days ago Yen sent another message to Chang, proposing peace if Chang -would reform his Government and adopt Yen's policy. The Peking correspondent of the Times says that Chang is reported to have replied that though he was ready to make peace, he would not change his flag or adopt any Soviet system of government. It should be noted that Yen made this proposal just after hiS preliminary success at Kalgan. That may have been a sign of weakness or of high moral purpose, but now that Chang has won a great victory he is probably less inclined than ever to consider Yen's Nationalism. It is believed, however, that he will offer Yen easy terms, as this discreet ruler might be useful to him.

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