Japanese terms in China presented through German channels; occupation of Tsingtao by Japanese (January 10); Ambassador Grew’s decision against delivery of proposed warning to Japan at time of Imperial Conference in Tokyo (January 14); importance of foreign military supplies in prolonging Chinese resistance; Japanese rupture of exchange of tentative terms with China (January 16); President Roosevelt’s reply to General Chiang Kai-shek (January 19); reduction of American and British military establishments in China