25 DECEMBER 1936, Page 2

The Chang-Chiang Manoeuvres On Monday Mr. T. V. Soong, Governor

of the Bank of China and brother-in-law of General Chiang Kai-shek, returned to Nanking from Sianfu, where Chang is held prisoner by the Young. Marshal, Chang Hsueh-liang. He stated that an early settlement might still be possible, and provision would be made for the past claims and future disposal of Chang's Manchurian forces. This statement tends to confirm the suspicion that Mr. Soong is willing to make some financial arrangement with Chang, in fact to offer a ransom for the valuable person of his kinsman. This method of compromise would agree with what is known of Chang's character. On the same day, however, he sent a telegram to General Ho -Ying,chin, the Nanking War Minister, repeating his original, demand for an alliance with the Communists against- Japan ; Mr. Donald, Chiang Kai-shekis Austra- lian adviser, who has been negotiating with the Young Marshal, states that he is sincere in his demand and does not want either money or power. This is probably more true of Chang's troops than of Chang himself. The crisis in these negotiations cannot be long delayed, as the Nanking Government's troops have advanced too near Lanchow, the provincial capital, occupied by one of Chang's supporters, and fighting has broken out there and elsewhere.