U.S.S. HOD U Q'ON 
MOUNTING PRESS NEWS 
2 AUGUST IS 38 
FOREIGN NEY7S 
Tbkio 
✓ 
Premier Konoye and the Japanese foreign, vr ar and Navy Ministers 
went to 'Tavna today to report to Emperor Hi.ro hi to on the 
clashes between Nipponese and Soviet troops on the Manchukuo 
Siberian border. The -Chief of the Japanese General Staff, . 
Prince Eanin, also went to the summer palace for the conference. 
The officials left for Hayma after a morning spent in studying 
reports from the scene of the fighting where the Japanese 
claim to have recaptured Changkufeng Hill. A foreign Office 
spokesman said that the Japanese Ambassador at Moscow had been 
instructed to reopen negotiations with the Soviet officials in 
an effort to settle the controversy. The spokesman said the 
attitude of the Soviets over the border incident would develop 
into a major conflict. He indicated that the Japanese would . 
make every effort to settle the dispute by peaceful means. 
The activity of the Japanese government officials made it 
plain, however that they are taking a more serious view of 
the situation along the Manchukukoan Siberian border. 
Ibkio 
Japan was reported to be hurrying fresh troops into Manchukuo 
today while popular anger flared at the repeated clashes with 
Russian troops on the Siberian border. Manchukuo has an armjr 
of about eighty thousand men, in addition to a largo number 
of recruits trained for one year under the new conscription 
law. Foreigners well informed on Chinese affairs said it 
was doubtful which side the Manchukuoan recruits would servo 
in the event of a three power war between Japan and China 
and Russia. Chinese propaganda has caused serious damage to 
the morale of the Manchukuoan regulars. Diplomatic circles 
believed .the Russo Japanese dispute would bo settled without 
war unless the Soviet Government decided on a so called 
?i prcionotiv action” while Japan is engaged in China. Foreign 
Commissar Litvinoff recently adopted an almost contemptuous 
attitude in rejecting Japanese protests against border inci- 
dents . 
Shanghai 
The Chinese halted the Japanese Army today after sitter fight- 
ing in the Yangtze valley. The invaders retimed from several • 
strategic positions caputed during the past few days. The 
Japanese admitted being checked. The invaders insisted, however 
that the Chinese had paid heavily for their gains. The 
Japanese said the Chinese lost two whole divisions while at- 
tacking fortified positions west of Kiukiang. Chinese planes 
raided the Japanese fleet in the Yantze. The Chinese fliers 
said their bombs made several direct hits on the warships.' 
- 6 - 
