The Manchurian Enquiry
The statement by Lord Lytton that his Commission is about to begin the drafting of its report on relations between Japan and China generally and the Manchurian situation in particular is a necessary reminder that the judgement of the League of Nations on Japan's action. in Manchuria is still to be given. The United States of America and all States members of the League have announced their refusal to recognize any situation created in defianee of obligations such as the League Covenant, the Kellogg Pact and the Nine Power Treaty of 1922, and the implications of that declaration will have to be fully. considered in the light of the Lytton Commission's report. It is satisfactory that the report. is likely to be ready before the League Assembly meets in September. Meanwhile the new State of Manchukuo' finds itself in serious financial difficulties, and threats to seize the customs revenues, most of which are earmarked: for the service of foreign loans, raise the prospect of
international complications. * * * *
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