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No. 29,880

MONDAY, MARCH 7, 1938

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AUSTRALIA'S CHOICEST

BUTTER

JAPANESE GRIP ON SHANSI TIGHTENING

Troops Cross Frozen Yellow River Near Hochu

TERMS OF

NAVAL PACT WITH TOKYO

London, To-day.

Mr. Hector Bywater, naval correspondent of the "Daily Telegraph," referring to the Japanese Foreign Minister's statements that it would be gratifying if there was an opportunity for

conversa-

No Strategical Importance In Operations

Shanghai, To-day. Japanese headquarters at Shanghai claim that de- tachments of Japanese troops have succeeded, for the first time, in crossing the Yellow River. The action, it is stated, took place at Hochu, at the junction of Shansi, Suiyuan and Shensi pro- vinces.

HUNGARIAN ARMY TO BE INCREASED

Budapest, To-day.

Dr. Daranyi, the Hungarian Premier, announced on Saturday the intention of the Government to increase the strength of the Hungarian army and to adopt extensive measures for air de

fence.

Addressing a meeting of Govern- ment supporters at Raub, he said

that the international situation had

tions between the powers for naval disarmament, and Japan would press for total abolition of capital ships and aircraft-carriers, states: "While i

it is certain that Bri-

Crossing of the fiver at this River and 80 kilometres wes tain and the United States will

point can have no strategical Hochu.-Reuter. welcome any practicable sugges- tion for checking the naval race, effect on the military situation in it is felt here that unless Japan the Kaifeng-Chengchow area. de- is prepared to modify her mand for a common upper limit in naval tonnage, which means in effect Japanese equality in naval power, no agreement would be possible.

Hochu is situated 500 kilometres north of the point

where the river changes its course from east-improved considerably of late, not west to north-south.

"Japan has only one naval front to guard. Britain has worldwide naval responsibili- ties, and the United States has to provide defence of both the Pacific and Atlantic. "Abolition of capital ships and aircraft carriers would merely consolidate Japan's strategic control of areas in the Pacific."- Reuter.

GERMAN CRUISER DAMAGED IN STORM

Oslo, To-day.

In Shansi, the Japanese columns which occupied Linfeng are continuing their advance, it is asserted, and are gradually pressing back the Chinese forces into the south-west corner of Shansi.

Another Japanese column bas advanced to the vicinity of Wen- hsien and is shelling Kunghsien, south of the Yellow River on the

RIVER FROZEN

Shanghai, To-day.

only as a result of the decided will for peace shown by Britain but also of by British readiness to enter into negotiations with Italy and Germany.

Dr. Daranyi said that he welcom ed the recent Austro-German agree ment and expressed the hope that it would turn out to be an endur- A Japanese attempt to crossing contribution towards European the Yellow River is believed im- appeasement Trans-Ocean. minent either at Hoku, on the northern edge of Shansi, where the river is frozen, or 750 miles south above Loyang, where the and are now launching a violent river is narrow but fast flowing.artillery bombardment of the across the At both points the Japanese Chinese positions claim to have reached the river river

Lunghai Railway.-Trans-Ocean.] OFFICE

BLINDING BLIZZARD

Shanghai, To-day. Driving through a blinding

blizzard, four Japanese detach-

ments have occupied Huchu, an important town on the Yellow

River in Shansi Province, accord-

ing to Japanese reports here.

The German cruiser Koeln It is stated that immediately suffered slight damage to her en-after entering the town the Jap- gines while weathering a severe anese started to ferret out the storm at the mouth of the Drou-remaining Chinese troops who thein Fiord, in Norway, yester failed to cross the frozen river

into Shensi. day.

Tugs have left Aalsund and Roervik to go to the cruiser's as- The Japanese also claim the sistance, though she is reported occupation of Hotsin, on the Fen to be in no danger.-Trans-River, in south-west Shansi, 12-

kilometres from the Yellow Ocean

ANGLO-ITALIAN TALKS TO BEGIN QUICKLY

back Rome, Today.

The Earl of Perth, British ing.

Rome yesterday even-

It is generally expected that Ambassador to Italy, who will the negotiations will get conduct the impending Anglo-way without further d

arrrived Trans-Ocean. Italian negotiations,

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