GOVERNMENT DENIES TWO RUMOURS

London, To-day.

Two official denials published yesterday have aroused more than usual interest.

Rumours that the Permament Under-Secretary at the Foreign Office, Sir Robert Vansittart, who has been called the most po- werful man in Britain, would re- sign, were emphatucally denied in Whitehall,

Another denial was that of a re- port that a loan of £25,000,000 in the form of credits, to Italy was being planned in connection with the Anglo-Italian conference.

MR. MORRISON FOR F. O. ?

Yesterday evening's papers sug- gest Mr. W. S. Morrison, at present Minister of Agriculture, as the new Foreign Secretary, the "Evening Standard" stating that Lord Hali- fax has already declined to take over the office permanently.

Mr. Morrison is 44 years old and has several times been entrusted with foreign Ocean. -

missions.-Trans-

CHANGES IN COMMAND IN MEDITERRANEAN

London, To-day-

Drastic changes in the British naval and military command in the Mediterranean are immin- ent, according ·to yesterday evening's papers.

The British' 'command in the Me- diterranean at present, it is stated, is divided between Gibraltar, Mal- ta, Egypt and Palestine, but since Mussolini has begun to regard the Mediterranean as "mare' nostrum" (our seà), it has become neces- sary for a unified British command to be instituted instead of the pre- sent system. '.

and

pro-

Since changes in Gibraltar Egypt are already on the gramme, it is declared that the Se- cretary for War, Mr. Leslie Hore- Belisha, intends, to utilise the op- portunity for fundamental ganisation in the Mediterranean area. Trans-Ocean.

LIBYAN AIR RALLY

reor-

Tripoli, To-day.

Marshal Balbo, Governor of Libya, gave the signal to start the

Mrs. M. Matheson, of 28 Han-Libyan air rally yesterday. kow Road, lost a handbag containing Twenty-three machines are tak- money and valuables worth $22 from ing part. Fourteen are Italian, six a perambulator in Hankow or Salis-German, one Belgian, one French bury Road.

and one Japanese-Trans-Ocean.

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THE CHINA MAIL, FEBRUARY 23, 1938

STOP PRESS

Canton, To-day. Japanese planes raided Cheung- along muktau and other points the Canton-Kowloon line this morning. The Hankow-Canton Line was also reported to been bombed, but the damage sustained is stated to be of little importance.

have

Bocca Tigris Forts were shelled by three Japanese gun-boats this morning. Our Own Correspon- dent.

Shanghai, To-day.

General The replacement of Matsui by General Shunroku Hata, until recently Inspector-General of Military Education in Tokyo, one of the three key posts in the Ja- panese Army, is announced în a statement from the headquarters of the Japanese Expeditionary Force in Central China,

The statement also announces the recall of the Emperor's uncle, Lieut-General Prince Yashuhiko Asaka, the commander of the Japanese forces in the Nanking area, and Lieut.-General Yanaga- wa, commander of the Japanese troops in the Hangchow area. Hangchow and Nanking were the centres of the most serious Ja- panese outrages.

The statement says the "read- justments" are in keeping with the firm determination to face pro- longed hostilities, which are NOW entering upon their "second phase." A tribute is paid to Gen- eral Matgni for successfully carry- ing out the first phase-Reuter.

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