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WEDNESDAY, JULY 21, 1937

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SHANGHAI

DEFENCE

AUSTRALIA'S CHOICEST

BUTTER

SCARE

PREPARATIONS

Reported Activity By 87th And 88th Divisions

PEACE RUMOURS

PAOTINGFU ARMY SAID TO BE ON MOVE NORTHWARD

JAPANESE ALLEGE PRESENCE OF 240,000 TROOPS IN OR AROUND HOPEI

Shanghai, To-day.

According to normally reliable sources, the 87th and 88th Divisions have been ordered to occupy important points round Shanghai.

Observers in the city state that this indicates General Chiang Kai-shek's belief that war may be expected at any moment, and, coupled with a gen- eral instruction to the military authorities in all provinces throughout China to complete defence preparations immediately, that Nanking does not expect hostilities to be confined to North China, but on the contrary will affect the whole country.

It is learned that the National Government

DISCOUNTED

No Sign Of Carrying Out "Agreement"

EVACUATION OF JAPANESE

H.K. & Canton Consuls Dený Reports.

Canton, To-day. Several local vernacular Dailies carried news to the effect that ac- cording to information received from Tokyo yesterday, Japanese re- Isidents in China have been ordered to return to Japan by their Govern- Peiping, To-day.

ment. This report was not. соп- The Japanese report from Tokyo firmed by the Japanese Consul in declaring that Sung Cheh-yuan has Shameen. Our Own Correspondent. arranged the withdrawal of the Inquiries made at the local Japan- 37th Division is discounted here, ese Consulate revealed that no steps where no official confirmation 18 have been taken relating to the obtainable.

evacuation of Jap ese residents in China.

carrying out of the alleged agree-

In the absence of any sign of the ment, it is surmised that the Japan Inquest On Mr. CE.

ese may be seeking a further pre- text for aggressive action, using the

reach to justify action. Own Correspondent.

Our

Watson

The accident in which the late on the morning of June 28 last, Mr. Charles E. Watson, was killed, when he fell out from his bedroom window on the second floor of No. còr-26, Carnarvon Road was recalled that at the Kowloon Magistracy this

BOYCOTT DENIAL

Nanking, To-day. The Domei News Agency corres- in - Nanking, has

report circulated

-rected

pondent the Nanking Government had de afternoon, when an inquest was

cided to put an embargo on Japan- opened before Mr. K. M. A. Barnett, ese goods.-Da-Dao.

who sat as coroner.

WE specialise in this line and

troops, numbering some 60,000, now concentrated RE-STRINGING & REPAIRS in the vicinity of Paotingfu, have been ordered to proceed further north and it is stated that their positions will be occupied by further troops now moving north along the Peiping-Hankow Railway.

The Japanese estimate that the Cen- tral troops now in Hopei or close to the Hopei borders, total not less than 240,000

men.

AERIAL REINFORCEMENTS

The Chinese Air Force "Committee" held a meeting this morning attended by the Italian ad- visers, and it was decided to s send further anti- aircraft guns to important points along the Pei- ping-Hankow Railway and the Tientsin-Pukow Railway.

It is learned also that air reinforcements are to be sent immediately to the Peiping area and that (Continued on Page 24)

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