§ 41. Lieutenant William Shepherdasked the Secretary of State for Foreign Affairs whether he has any statement to make on the present position in China.
Mr. McNeilThe process of disarming the Japanese forces in China is virtually complete. To facilitate this, United States troops have been landed at a number of points in Northern China. In the province of Yunnan, the Central Government have strengthened their control by removing the former Governor, General Lung Yun. Although reports of fighting between Government and Communist forces should be treated with reserve, the situation remains tense. Negotiations continue, however, between the Chinese Government and the Communists. The economic and financial situation remains confused. Dr. T. V. Soong and the Minister of Finance have recently visited Shanghai where currency difficulties are particularly acute.
§ Air Commodore HarveyWill the hon. Gentleman state what the position is in Manchuria at the present time?