6 SEPTEMBER 1930, Page 2

If a deal with Nanking were the only thing necessary

there might well be an arrangement, but the real mischief

is that where there is not civil war between the official armies there is an absence of authority and a riot of pillage and murder by bandits. The Peking correspondent of the Manchester Guardian says that the internal problems of China grow more staggering every day. Without huge expenditure the swollen armies cannot be absorbed into the nation's economic life ; but the country is bankrupt. Every source of revenue is pledged. He is afraid that the situation will become even worse before

it can become better.

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