BATTLE NEAR GARDEN BRIDGE British Troops On Qui Vive Since Early Hour JAPANESE REJECTION OF NEUTRALITY PLAN

JAPANESE LAUNCH

COUNTER-ATTACK IN YANGTSEPOO

Shanghai, 10.15 a.m.

TWO DIVISIONS

RELIEVED

Three Replacing On

Shanghai Front

Shanghai, To-day- The replacement of the 87th and 88th Divisions by the 51st. 58th.

CRACK JAPAN

DIVISION AT NANKOW

Hopei-Charhar Council Dissolved

PEIPING, TODAY. TWO JAPANESE DIVISIONS ARE TAKING PART IN THE OPERATIONS AGAINST NAN- STILL BEING HELD BY THE CHINESE. It is expected that severe fight- The 11th Division was near Do- ing will take place this morning lonor yesterday and will attack the as reinforcements for both sides Pass from the North, while the have arrived-Da-Dao.

The greatly strengthened British guards on the Garden Bridge were on the qui vive from an and 69th Divisions of the Chinese KOW PASS early hour this morning as the terrific rattle of ma-Army has now been completed chine-gun fire within close range indicated that the threatened Chinese offensive in the nearby sector was in progress.

The Chinese appear to have driven in the Jap- anese outposts at several points and the invasion of the Hongkew area seems imminent, although fresh Japanese reinforcements have been rushed to the area.

The Japanese Naval Attache told pressmen this morning that severe fighting took place yes- terday afternoon and evening in the Yangtsepoo sector and admitted that the Japanese defenders were compelled to retreat, whilst stating that the Chinese success was achieved at tremendous cost. From Shanghai's skyscrapers it was plain this morning that fierce fighting was continuing in this

area and it is understood that the Japanese have

launched a violent counter-attack. Our Own Correspondent.

JAPAN'S REJECTION OF PLAN

London, To-day.

"If the news from Tokyo that Japan rejects the British plan for a neutral zone at Shanghai is con- firmed, it will create the worst impression," declares the diplomatic correspondent of the "Daily Telegraph."

The correspondent states that the inevitable conclusion will be drawn that the presence of Jap- anese troops is not due solely to a desire to safe- guard local Japanese interests but to purpose, by all possible means, an aggressive campaign against China.

Reuter.

Moscow, To-day.

The Soviet consulates at Pogranichnaya and Sakhalien have been closed, according to reports from Kharbarovsk.

The reports ascribe the action to the "outrage-1 ous regime created for Soviet consulates in Man- churia. Reuter.

TSINGTAO QUIET

Washington, To-day. The Navy Department an- nounces that Tsingtao is quiet and that evacuation of Ameri- cans from the Shantung summer resort is not immediately con- templated Reuter.

CONSOLIDATING NEW POSITIONS Heavy Bombing Raids

This morning

Shanghai To-day. Chinese spent the better part of the night and early this morning in consolidating their

new positions, and in preparing for another determined assault. During the night two Japan- ese light cruisers with reinforce- ments arrived from Woosung. and disembarked the men at the Japanese wharves near the Ja- panese Consulate General:

Dawn found six Japanese planes bombing the Shanghai- Hangchow Railway in an at- tempt to obstruct the arrival of further Chinese troops.

Shortly after the Japanese planes had returned to their base, Chinese bombers raided. the northern district. Several of them dived very low in spite to continuona A. A fire: Renter

NANKING DUMP EXPLOSION

No Confirmation Of Japanese Claim

Shanghai, To-day..

The Japanese claim that their tions dump in Nanking in the course of an air raid yesterday ap- pears to be a trifle optimistic, as no independent sources. Trans-Ocean.

bombers blew up a Chinese muni-

12th Division, the crack division of the Japanese Army, and com- manded by General Itakaki, will at- tacj from the south

Heavy fighting took place yes- terday afternoon near Changsin- tien, south of Peiping

The Japanese Supreme Com- mand has dissolved the Hopei Charhar Political Council, there- by cutting the last formal tie with Nanking.

The occupied territory in North China is now completely dnner the rule of the Japanese military au-

confirmation can be obtained from thorities and their Chinese "pro-

U.S. MARINES FROM

SAN DIEGO Expected To Take Five Weeks

tegees” — Trans-Ocean, Dr. Wellington Koo At Quai d'Orsay

Paris, To-day-

Dr. Wellington Koo, Chinese Am-

bassador in Paris, called at the

A force of 1,200 United States Quai d'Orsay yesterday and had a Marines are preparing to embark lengthy conversation with the Un- on a transport at San Diego, Cali-der-Secretary.

Fornia, to-day for China, but it The situation at Shanghai is un- will probably be five weeks before derstood to have been the subject of they reach Shanghai.

the talk-Trans-Ocean.

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