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OLDEST NEWSPAPER IN THE FAR EAST. ESTABLISHED : 1845.

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No. 80,451

MONDAY, AUGUST 29, 1938

Price: 10. Cts.

AUSTRALIA'S CHOICEST

BUTTER

GERMANY'S SERIOUS ECONOMIC STRAIN

Fears That Situation May Lead To Hasty Action

AMBASSADOR

RECALLED ON

EVENTS OF

URGENT NATURE

Berlin, To-day.

Sir Nevile Henderson's departure to make a personal report to Lord Halifax was evidently hurried by events of an urgent nature as his

"second in command," Sir G. A. D. Ogilvie-Forbes, is holidaying in Scotland.

Heavy Drain Of Increased

Fortification

London, To-day.

GERMAN STORIES OF CZECH CLASHES

Prague, To-day. Numerous incidents involving

To-day's papers feature with flaming headlines the Sudeten Germans and Czechs oc- news from Central Europe and the increasing curred during the weekend, accord- signs of apprehension in British Government ing to reports arriving here yester-

day. quarters.

The

The most important, from the Sudeten German point of view be-

arrival of Sir Neville Henderson, the British ing insulting remarks hurled at Konrad Henlein by a Czech military Ambassador in Berlin, is regarded as an omen sentry in the village of Foble as he indicating the extreme gravity of the situation. was passing through. Although the nature of the remarks has not Well-informed political circles The Sunday paper, "The People,"

been revealed, they will be the sub- here consider the situation partí-in a special article on the situation,

ject of an interpellation in Parlia cularly grave.

expresses the fear that Germany

ment. (Continued from Next Col.)

A clash occurred between

the Public opinion has been stir-may be forced into hasty action as

assistance, the group returned to red up by the inspired press to a result of the economic strain. the point at where positive action It is reported that a secret meet the village, accosting several Ger- Germans and Czechs in Bohemia late on Saturday night when a is expected unless the Czecho-ing of the Inner Cabinet was held mans on the way.

Another incident is reported from group of Czechs approached the German workers slovak Government makes sub-during the week, attended by Dr.

of Schoenborn where four Czechs house of the stantial concessions to the Sude- Schacht, the former Minister

Economics, and General Goering, created a disturbance in a German shouting "Henlein must get out."

PROTESTS ten Germans.

tavern.

After a scuffle with the have been On the other hand, Sir John Si-organiser of the Four-Year - Plan

Protest telegrams dictator of mon's speech appears to have had a and virtual financial

sent to Dr. Hodza and Lord Run- and a neighbour who came to his sobering effect. German political Germany.

Continued at foot of Preceding Col. Trans-Ocean. ciman. quarters, seem convinced that Bri-

It is declared that industry, tain will not remain a passive spec- short of money, is suffering. Coat scheme is 80- tator to events in Czechoslovakia of new fortification and it is likely the speech has caus-draining the recources of the coun- ed Germany to hesitate before em-try that banks are unable to help

industrialists. barking on more positive measures.

Gold reserves are nearly ex- hausted. Hitler has failed in at- tempts to raise loans abroad. The mark is in danger.

FRONTIER MOBILISATION Fears, rather than expectations

The conclusion is reached that on the part of the German public, that something positive will be done Hitler and his Ministers are face has been greatly increased by the to face with the most critical situa- reports of a partial mobilisation tion along the frontier areas.

It has believed that a concession the by the Czechs might induce Reich, to call off their press cam- paign and announce a final date for the termination of the manoeuvres which are continuing until the mid- dle of March-Reuter.

since. the Dictator came into power.

RUNCIMAN'S EFFORT TO CONCILIATE

Prague, To-day. Strictest silence is being main- tained concerning the conversation

M. PIERRE COT IN between Lord Runciman and Horr

PRAGUE

Paris, To-day.

un-

Konrad Henlein: This conversation, took place at Teplitz-Schoenau and lasted until Sunday evening.

Informed circles, however, derstand that the subject of the The "Petit Parisien" reports that conversations was the discussion of a M. Pierre Got, former Air Minister, new plan by the Czech authorities is at present in Czechoslovakis, for a new basis of conversations be- where he will confer with President tween the Government and the Su- Bones, as well as with other lead deten Germans. The new plan is Czech personalities. Trans-said to grant important new con

cessions. Trans-Osean.

ing Ocean.

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