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CHINA

OLDEST NEWSPAPER

IN THE FAR EAST. ESTABLISHED 1845.

NO. 29,722

THIRD EDITION

Daiso

MAIL Brand

FRIDAY, NOVEMBER 12, 1937

AUSTRALIA'S CHOICEST

BUTTER

SHANGHAI UNEASY

But Offical Quarters Do Not Believe Japanese Will Precipitate International Friction

DISTURBING SHANGHAI RUMOURS

Shanghai, 2.20 p.m. To-day. In Japanese circles in Shang- hai there is a rumour that the Japanese naval and military an- thorities have under consideration proposals for the control of the International Settlement by a Ja panese Military Council if the Powers continue their present at- titude-Our Own Correspondent..

IMPERIAL

CHINESE WITHDRAW FROM

NANZIANG LINES

SNIPERS ACTIVE IN NANTAO

Shanghai, 1.45 p.m., To-day.

RAID ON JAPAN REPORT RIDICULED

Chinese

Nanking, To-day.

ation circles ridi- report that

While considerable uneasiness is felt in foreign cule the circles in consequence of vague Japanese hints that Chinese planes attempted they no longer recognise "the integrity of the Inter-bomb- national Settlement" the belief is held in official that it was

sounded

HEADQUARTERS quarters that the Japanese are not likely at the pre-populace air-minded.

DECISION

MINOR VICTORY FOR CIVILIANS

sent time to precipitate serious international frie tion.

added entioned do

the Japanese

hat the

Heavy fighting is now taking place along the northern battlefront from Nanziang to Kwangfu, However, one squadron with indications of a general Chinese withdrawal to the Kiating-Hwangtu defence line.

The steady rattle of rifle and machine-gun fire Tokyo, To-day.

in Nantao could be plainly heard at noon to-day, Following lengthy ne- though the Japanese were in complete possession gotiations, agreement by three o'clock this morning. It is evident, how regarding establishment ever, that large numbers of Chinese troops are still of "Imperial Headquar in Nantao, holding out at strong points with ters" has been reached machine-guns, or sniping. within the Government, Fire is occurring all through the according to a semi-native city and at numerous point official announcement yesterday.

in Nantao.

Nanziang fell this morning at [about 5.30 am. following the com-

Imperial Headquarters, it is nletion during the night of a stated, will be established shortly bridge across the creek at the point at Tokyo as a purely military where all previous attacks had organisation.

broken down. The Chinese de- The original plan of entrusting tended stubbornly and a heavy toll Imperial Headquarters, besides was taken when two battalions of military affairs, with organisation the Wachi Brigade made a rush of war economics as well, and with attack across the narrow bridge. supreme power in the land, has therefore been abandoned.

VIEWS

DIE SONGcially that!

zdded

RETREAT IN DED

attack was made

after 430 am Frad

selves acTORS

swift

the delay in establishing - Imperial Headnuarters had been caused by differing views regarding-reor- ganisation of the present Cabinet, which has also been under consi-city was gained

Yesterday there deration.

The compromise is regarded as 50,000 Chinese tr achievement by the civilian in defence of

bers of the Cabinet

althous

imation of Imperial. Esadou

ters is tantamount to official

that a state of

China and Japan-

Chinese planes yesterday mo ing bombed

ese carrier off the coast with thir teen Japanese planes on board-

The Chinese claim their bombs hit the stern of the ship, and that columns of stroke and fire were

the

bserv

The spokesman added that all planes returned

Reuter

safely

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