MADRID FRONT FLARES INTO ACTIVITY

"RICKSHAW"

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'OLDEST NEWSPAPER

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No. 29,705

MONDAY, JULY 19, 1937

Price: 10 Cts.

CHINA

AUSTRALIA'S CHOICEST

BUTTER

REJECTION

OF ULTIMATUM LIKELY Probability Of Counter-Proposals By Nanking REPLY EXPECTED BETWEEN BIGGEST

THREE AND FOUR TO-DAY

JAPANESE MILITARY REPORT DAMAGES

PEACE HOPES

PEIPING, TO-DAY.

GOLD BAR FIND

ON TAI HING AT SAMSHUI

a coolie, is reported to have been

HOPES OF AVERTING A MAJOR CLASH IN

Dramatic arrest of a Chinese NORTH CHINA ARE RAPIDLY DIMINISHING. attempting to smuggle gold bars Japanese Army headquarters issued a state- out of Kwangsi, and travelling as ment this morning to the effect that confidential reports had been received indicating that the Chin-effected aboard the s.s. Tai Hing on her way to Hong Kong from ese military leaders throughout China have been

Wuchow. given specific instructions to prepare for war, and it is known that there are five Divisions of the Cen- tral Government forces now concentrated in and around Paotingfu.

The total comprises more than 60,000 men and consists of the 30th, 31st, 44th, 10th and 13th Divi- sions.—Our Own Correspondent.

REPLY TO JAPAN'S ULTIMATUM.

Nanking, To-day.

It is anticipated here that Marshal Chiang Kai-- shek's reply to the Japanese ultimatum will be pre- sented to the Japanese Embassy through the Con- sul-General, Mr. Hikada, between 3 and 4 o'clock this afternoon..

The chief of the Eastern Affairs Department of the Foreign Office, Mr. Ko Sing-moo, flew to Kuling early this morning to interview Marshal Chiang Kai-shek and Mr. Wang Ching-wei, regard- ing the Japanese ultimatum, and a conference started about noon.

The result will be conveyed by telephone early this afternoon to Dr. Wang Chung-hui, the Foreign Minister, who will present China's reply.

The conviction is held here that the reply will constitute a rejection of the demands.

MAJOR GENERAL KITA, MILITARY ATTACHE TO THE JAPANESE EMBASSY, FLEW TO SHANGHAI AND CONFER- RED WITH GENERAL HO YING-CHING, MINISTER FOR WAR,

(Continued on Fuge 24)

AIR BATTLE

IN HISTORY

Madrid, To-day. The biggest air battle in history was fought to-day on the north- west frontier of Madrid, when 160. planes were in action in a hectic dog-fight lasting over an hour.

The Government claim thát 18° insurgent machines and four Re- publican planes were shot down-- Reuter,

gested that the Customs officers

who carried out the search - were

acting upon information received.

They went straight into the coolie class and after a while de- tained a man who was taken to the first-class dining saloon and prac tically stripped before discovery of Gold bars to the value of over a gold bar affirmed belief that the $14,000 were found concealed in the Customs men were on the right garments of the man.

+

The incident occurred at Shui and the circumstances

track. Eventually gold bars Sam valued at $14,000 were taken from sug- Thim and confiscated.

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