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Placing this subject in its historic setting in order to understand the forces which have brought the disputants, China and Japan, to their respective positions in the Far East. Changes wrought in the Far Eastern situation by the impact on the entire continent of the tide of western culture. The respective positions of the disputing parties today to be explained by the attitudes which they took at critical moments in their respective histories to the suggestions which the West brought to the East, and in the general response made by China and Japan to what may be called the challenge of Western ideas. A detailed discussion of this theory follows, highlighting pertinent events which allow us to understand how each of Japan and China came to the current conflict. How it came about that in the last ten years Japan's policy seemed to direct its course in violation of the League of Nations. The Manchurian question in Japan, rapidly ripening to crisis in domestic Japan. A detailed examination of the Manchurian situation. The mistake to suppose that when we contemplate the problem of Manchuria in its international aspect we are dealing merely with the quarrel between Japan and China. Other problems involved. The new internationalism that has arisen over the last 12 years, in which the nations are lined more closely together than before. How the nations are linked together through the Washington Treaty. Consequences of the "wait and see" policy. The speaker's belief that a pursued and common policy common to two of the three governments who have most to say in this, namely, England, United States and France, two of these coming together and pursuing a genuine policy, even at this late hour, would secure some modification of Japanese policy, and bring about a situation in the Far East that would more directly lead back to peace in the Far East. Facing the situation today as realists. Recommendations of the Lytton Report. The need for a more genuine cooperation between the Governments of the English-speaking world. Moral responsibility for the break-up of the international system founded on the League of Nations.