Sub-committee sat Monday [1] day and night to settle the report on
the facts of the situation and treaty obligations of Japan. This
report indicates that Japan's action is in breach of her treaty
obligations and cannot be justified. Drafting Committee of five-
United Kingdom, France, Russia, China and Australia-appointed to
prepare report on future proposals. At long session today report
agreed down the lines of my telegram 3rd October. [2] Report
recommends:-

1. The Assembly of the League of Nations should in the name of the
League invite members of the League of Nations who are signatories
of the Nine (9) Powers Treaty [3] to initiate consultation as
provided in the Treaty. Object of the consultation conciliation,
but suggest the possibility, if conciliation impossible, of other
action. Recommends signatory members should meet forthwith decide
quickest means of effecting this invitation. Hopes other States
with special interests in the Far East will associate in the work.

2. Assembly not to close session and to declare the League's
willingness to co-operate in proposals to maximum extent
practicable.

3. Assembly should express moral support for China and recommend
Members of the League of Nations to refrain from action which
might weaken China's resistance, also consider how far they can
individually extend aid to China.

Both reports were adopted at further meetings of the Sub-committee
and Plenary Advisory Committee. Full texts will have been
telegraphed by Press. Assembly considered reports tonight and will
vote tomorrow. [4]

BRUCE