THE CHINA MAIL, FEBRUARY 21, 1938.
RECOGNITION OF
Page
MANCHUKUO BY GERMANY QUEENS & ALHAMBRA
SEVERE SHOCK TO CHINA
Shanghai, To-day. Germany's decision to recognise Manchukuo, as announced by Herr Hitler in the Reichstag, was a deep shock to all Chinese circles, who up to the very last seemed sure that no such step would be taken.
Only on Saturday, official circles in Hankow dis-
missed as extremely unlikely predictions that Germany, like Italy, would give her blessing to Japan's "puppet state."
Some Chinese quarters are likely to suggest a boy- cott of German goods as reprisal, but it is by no means certain that such a proposal would find
favour.
China has German advisers in her army, and it is generally recognised that the bulk of German traders in China who would suffer from а boycott, are friends of the Chinese and supporters of their cause.
BOYCOTT OUTLOOK
and
If a boycott be decided upon applied with the same set purpose as other boycotts have been in the past, it will paralyse German trade and commerce in. this country which already has been badly hit by the depression attending the Sino-Japan- ese hostilities.
Chinese circles all along have be- lieved that Germany, in spite of the Rome-Berlin-Tokyo axis, was begin- ning to view with diminishing sym- pathy the Japanese campaign China.
in
Germany, they thought, was care- fully steering a middle course.
BITTER COMMENT
a
said hearing the
"We had our illusions," Chinese observer on
news.
"It is disappointing, but we at least know now on what side of the fence Germany is."--Reuter.
DAILY
AT
2:30
520
720
920
JAPANESE "PRIVILEGES" IN N. CHINA
PRO-
SHANGHAI, YESTERDAY.
LONG PENDING BLEMS INVOLVED IN TRADE CONCESSIONS ΤΟ JAPANESE RESIDENTS IN NORTH CHINA HAVE BEEN VIRTUALLY SETTLED BY THE ACTION OF THE "PRO- VISIONAL GOVERNMENT, ACCORDING TO JAPANESE 'REPORTS FROM PEIPING.
Privileges granted by the new "government" will prove bene- ficial to Japanese operating various enterprises - - single- handed or in co-operative man- agement with Chinese..
Ownership of real estate by Japanese in North China is re- cognised by the new "govern. ment."
As regards economic and indus- - trial development in North China, the Japanese and Chinese authori- ties have been co-operating closely in establishing the North China Development Company, the Fede- rated Reserve Bank of China and the Sino-Japanese Economic As- sociation--Reuter.
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