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CHINA

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THURSDAY, JULY 7, 1938

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AUSTRALIA'S CHOICEST

BUTTER

FACE-SAVING PEACE OFFER BY KONOYE Significant Statement On Anniversary Of War

TWO ARRESTS-

MADE IN SHANGHAI

Shanghai, To-day.

Two arrests have been made in connection with this morning bomb throwing.

Nine incidents occurred between 5.30 a.m. and 9'am.

One Chinese was arrested near the Yokohama Specie Bank. An- other was caught on the Szechuen Road Bridge when he threw a bomb at a Japanese sentry which failed to explode.-Reuter.

SHANGHAI BUND BRISTLES WITH BAYONETS

Warns Japan Of Sharp Pinch If Fight Continues

Tokyo, To-day.

Prince Konoye, the Premier, did not make a form- al statement on the war anniversary, but in an interview with Japanese newspapermen made a more interesting and important pronounce- ment than did his colleagues yesterday. He began by expressing regret at the development of the Lukouchiao Incident, but said, "Now things have come to such a pass that Japan has only one course left to go ahead until her objective has been obtained.”

"He was aware that peace January 16th. moves were being made on the The Premier went on to say that Shanghai, To-day.`` part of Third Powers, but there the Japanese desired the collapse The entire Bund of the Inter-was no change," he said, "in the of the Chiang Kai-shek regime national Settlement is bristling government's policy of seeking a with the fall of Hankow, but this with bayonets, with the Seaforth solution, except directly." might not happen in which case the

war kit, "The Government's Highlanders in full

decision Japanese nation must be prepared Japanese naval landing party not to deal with the Chiang Kai- for protracted hostilities.

announced on marines, the Russian Regiment shek regime, as of the Volunteers, and the Muni-January 16th, has undergone no cipal Police all concentrated, pa- changes," Prince Konoye declar trolling and stopping and search- ed. -ing cars and individuals.

Amplifying this declaration, he The police report that up to said, "The Government refused 11 a.m. fifteen bombs had been to have any further dealings not thrown.

only with Chiang Kai-shek, but The Japanese are preventing with the whole of the National the entry of motorcars from Government which could not be Hungjao into the International|regarded as the Central Govern- Settlement.

ment of China even if Chiang Chinese firms and shops in the Kai-shek resigned and was Settlement and French Conces-placed by a pro-Japanese states- sion are flying flags at half-mast. man.'

-Reuter.

"

re-

THE PUPPETS MAY Premier Konoye admitted, however, that the new regime

DR. H.H. KUNG'S which would be formed by the

ANNIVERSARY

STATEMENT

union of the Nanking and Pek- ing administrations might, if it was so inclined, negotiate with the National Government.

88

Foreign observers regard this а "face-saving device" to leave the road open to Sino-Jap anese negotiations without a for Dr. H. H. Kung points out in mal change in the declaration of an: anniversary statement that

Hankow, To-day.

China has achieved a new spirit or whether this generation will of national-unity and self-defence declare international moral bank- and is determined to carry on to ruptcy

the bitter end of the struggle. Amammoth mass meeting -After one year of fighting, was held at Chungshan Park Japan. has yet not achieved any yesterday night at which a ban- goal, but China has found Her ner was presented to Generalis-

simo Chiang Kai-shek.

The soul.

Meanwhile China wonders entire Chinese population join- whether far-sighted statesmen in ed in a big lantern parade and the world will come forward at demonstration of public support a timely moment and courage- of the Generalissimo and also e ously, stop the raging fire Japan pressed their determination to has spread in their very homes, continue resistance. — Reuter.

FEEL THE PINCH

|

CHINESE STILL HOLD HUKOU GALLANT FIGHT

Hankow, To-day. Despite Japanese claims to oc- cupation of Hukou, a report from still in Chinese hands on Tues- day night and the situation there had eased considerably yesterday morning with the arrival of Chinese reinforcements.

Kiukiang states that Hukou was

According to the Chinese communique the situation at Hu- kou became critical on Monday

morning when Japanese troops landed at Lungtoushan, 10 kilo- metres east of Hukou, and at- tacked the Chinese positions.

The fate of the town depend- ed on whether the Chinese de- fences could hold out till morn- ing when reinforcements were expected.

The communique states: “The Chinese garrison stubbornly held

He predicted that the Japanese on to their positions and the re- people would feel the pinch of the inforcements arriving yesterday situation much harder next year morning counter-attacked the and said that measures "both diplo-Japanese southwest of Hukou

were being and sanguinary fighting is matic and economic"

progress." Reuter (Continued on, Page. 24)

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