27 JULY 1929, Page 1

The Washington correspondent of the Times says that the American

Government consider that there ought to be a return to the status quo in Manchuria—in other words that the Soviet Government are entitled to demand the restoration of Russian rights of management in the Chinese Eastern Railway. The Chinese Minister in Washington, when this opinion was made known to him, replied that the Chinese Government had not • " taken over" the 'railway—all they had done was to dismiss Russian officials who, by their anti-Chinese propaganda, had flagrantly violated the Chinese-Russian Agreement of 1924. Such technical contradictions are likely to continue, but the welcome fact is that the danger of war has been removed.

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