NATIONALIST MILITARY POWER ON

ITS GREATEST TEST.

HEAVY FIGHTING ON THE PLAINS OF HONAN.

SOUTHERNERS SUFFER A SEVERE REVERSE. EIGHTH ARMY "PRACTICALLY WIPED-OUT,”

BORODIN AND OTHER COMRADES FINALLY LEAVE HANKOW.

Arcording to one of the latest ingrams to land, the Nation alist Army is being put to its severest test, so far, on the plains Homan. There has been (and apparently continues) very severe. fighting between the Southerners and the Pengtionites, in which, it is reported, the Southerner's Righth Army has been "practically wiped on,"

Barndin and several of his Russian coturades have finally Jeff Hankow, having been thoroughly alarmed by the threatening aspret of affairs in their neighbourhood. They are believed to have crossed the river to Wachang, which is stili more or less safe for Rests,

Or of the Houan pencrabs, tied of the battly and its din. of the postmi, aliyand glitter of it all, has sagely annoinced that He I will for the rest of his life devol himmelf tá meditation. has landed aver his craps to his sal endist (anther general) and intends to go fa a temple as the Houn Hupeh border,

The Japans at Tsingtae are organising a volunteer corps for

The purpose of safeguarding their pterests there.

A large healy of troops is being sent southwards to reinforce the Northern Aring the Frogtien frogs) in Hraung

HONAN HOSTILITIES. JAPANESE DEFENCE.

FURTHER DETAILS OF THE "BIGGEST BATTLE"

{THROUGH REUTER'S AGENCY.]

SHANGRAI, May 27th.

The Nationabst Military power is now being put on its greatest test in the plains of loan, where the biggest battle the Southerners ever fought hegan yesterday,

The latest wireless message from

Hankow, dated May 26th, says that it is reported that the Southerners have suffered a reverse with heavy rasunities-the Eighth Army being practically wiped out.

VOLUNTEER CORPS BEING FORMED AT TSINGTAO.

Wab Te Fat Pou).

THE HONG KONG DAILY PRESS. SATURDAY, MAY 28th, 1927.

SHANGHAI, May 27th. Mr. Yosiznwa, Japanese Minister in Peking, his ordered all Japanese residents in Shantung immediately

to entrate at Tsingtao, while

those in Bonan are ordered to re-

Peking.

move

Japanese TO sidents in Tsingtao are organising volunteer corps for the purpose of safeguarding the interests of their nationals.

The military authorities in Kei- ungkiaag and Kirin ace preparing to despatch four divisions and one brigade of troops to the South to reinforce the Fengtienese Army in

Borddin and seven other Russian Communists have left Hankow for the South Bank (Wucharig) this morning. It is reported they are leaving the city. Other Red Honnu. element's appear to be also leaving

Marshal Sun Chuan

Fung's

TIRED OF FIGHTING.

A CHINESE GENERAL'S

CHOICE.

(Wah Tez Tat Pao).

SHANGHAI, May 27th. General Chin Yun Ao, a Honn general now opposing the Feng- tienese, declared on the 20th inst., his wish to retire from military affairs. He will go to Kei Kung Hill on the Honan-Hupeh border, for life retirement, while the direc tion of his troops will be assigned to his subordinate, General Liang Shao Kai.

P

INDIA AND THE I

OPIUM EVIL.

INDIAN STATES DISCUSS THE PROBLEM.

STATEMENT BY THE VICEROY.

GOVERNMENT'S POLICY

ADOPTED.

THROUGH KECTER'S AGENCY.]

THE COLONIAL CONFERENCE.

DISCUSS EDUCATION, TEACH ERS, AFFORESTATION, &c.

THROUGH REUTER'S AGENCY.]

COST OF WARSHIP CONSTRUCTION.

LESS IN GREAT BRITAIN,

BUT INCREASING IN OTHER COUNTRIES.

PM.

COD-

011

Rut

7

WAR-TIME PERIL OF FAMINE.

NEED FOR MORE MEN ON THE LAND.

MR. LLOYD GEORGE TALKS TO WELSH FARMERS.

It is well enough to go to Egypt. for corn if there is a fuanine in Capan, but if the Israelites, in-,

Wi

In pre-war days, when we were Laxx, May 27th. constantly measuring our strength

for the coming struggle, we The Colonial Conference discuss-

uurselves gratuinted ed the mliject of Education, and potential resources for lilding stead of cultivating their

land year after year had formed agreed upon an Educational Ad-more ships more rapidly than any

the habit of going to Egypt for How other country in the weld. visory Committee to consider the this splendid national asset," as

corn Canaan would not have re- That is Lord Selborne had called it years mained Canaan for long: before, served us in the Great War our danger today."

This was how Mr. Lloyd George, is now a matter of history.

speaking in Welsh to a conference since the Great War we have heard of Caernarvonshire farmers and very little about it, probably for farm labourers, at Pwllheli, opened the reason that naval shipbuilding his exposition of the Liberal land

policy. had become what the auctioneers.

A War Perli Recalled, slow lot: The great

When the suburtines were siøk- private armament firms have had ing British ships during the war,

devise new branches of industry aid Mr. Lloyd George, we had a lu keep their establishments goingths reserves of food in this apo time more than two and a half

Yet for all this they still remain aantry. It was ton grent a risk "splendid national asset in the for a nation to fare such a pos- sibility in the future. "If er naval sense; still able to build anym

many had realised the strength of the submarines in time, which sho thing from a piquer boat to a

did not for a year or two. I am battleship more rapidly and more

not sure what would have happen- economically than in any other

ed,” he said. "We starved ́Ber- country in the world. It is true

innay before Germany succeeded m teachers permitling reciprocal ar-

that the cist of naval construction starving us. rangements under the Teachers has advanced very heavily since Superannuation Act: thirdly, 1014. But is seems to have reached Colonial Governments should give its peak point in this country the Board of Education and local | some years ago. The tendency Education Authorities a guarantee singe then has been rates in the of efficiency of awol in which direction of reduction, and if the professional agitators would only British tenchers are employed.

leave Inbour alone to get on with With regard to the examination its job this tendency would have standards for locally recruited been very much more definitely elerks and others into Colonial | munifested. Services, it was agreed that the

rangements should be made, firstly, to pay employers' contributions under the Teachers' Supernanna- tion Act in case of teachers tem- purarily employed for not more than four years oversea: secondly. Colonies should establish schemes of

SIMLA, May 27th, question of improving arrange Lord Irwin, Viegoy of India, in

'ments as to supervising and advis opening a conference of representa-ing Colonial students in Britains [SAVAL WIRELESE. Į

tives from forty Indian States to also with regard to teachers going Exit Kiuklang "Reds."

discuss measures to suppress the

out from England for a period of¦ KICKIANO. May 28th.

evil in (Southern) | opium.

their respective The Third

service in the Colonies that ar- term Army marched into Kinking to day, and States, emphasised that India was as these troops are known to be bound by international undertak pro-Chiang it appears that both

ings for the ultimate suppression. Kiusang and Nanchang-have been

of opium-smoking, the initation cleared of the Red" element.

and control of opium export and the prevention of illicit trallic to the Far East. The Governngent of India's policy did not aim at pro- hibition but moderation. They had formulated a tentative policy in volving the ultimate discontinuance of poppy cultivation in the States and the supply of opium in accord- ance with their requirements by the Government of India at cost price from the Ghazipur factory, placing the States in the same position as the proviners of British India.

Sir Basil Blackett, Finance Mem

The Commissioner of Foreign Affairs, appointed by the Hankow Government, left the town yester day, while troops of the Sixth Army Jeft several days ago,

Changsha Clean-up By Anti-" Reds.”

CHANGSHS, May 28th. Changsha Cell into anti-" Rod ** hands on Saturday, two bodies of troops, the Cantonese from Heng- ehow, and a large body of troops sent by General Sha Tae Yin from Shasi, entering the city simultane ously,

The first business of the anti- "Red" forces was the rounding up of the Labour Unions, and all

the leaders were arrested with the exception of these of the Merchant Union.

i The Labour Union leaders were Anmarily executed, white the members were dispersed.

On Tuesday, the premisen vaeatrd by the Missionaries were looted and act on fire,

Dissension Among Northerners

superannuation for

school

the

The statesman who went through that experience has bounder duty of telling the country never to take that riak again. 1 come here not only as a friend of the farter and the farm workers. it as a man who has had upon his shoniders the charge of the nation to tell you what is of vital import- ance to the reantry. To increase the produce of the land and the number of men working upon át is the vital problem.

Forty years 440 there ware 5,000 rural labourers in Chernar-

We find a rather different state von hire. The population of the of affairs in other unval countries, county has greatly increased sinco

ber, pointed out that the Govern-Civil Service examinations should France offers a very good example then, but there are now only 3,500

ment of India's finances could not benefit by a discontinuance of cul. tivation in the States' policy. The maximum revenue from the mini- mam consumption proved astonish ingly satisfactory in British India, and he saw no reason why the same policy should not be feasible for the States, thereby facilitating the ab- sorption of old stocks and diminish-

CHINKIANG, May 26th. Mutiny in the Northern runks basing the incentive towards smug. completed the debacle in Kiangsu, gling. and the Southern armies are con

as the result, it is said, of an Troops, after a series of defeats in agreement between the local govorih Kiangsu, are reduced to tinuing their advance without meet-

ernment and Chiang Kai Shek.

Reater's Hankow, correspondent,

in a message dated May 26th, says that the only published reference 10. 4 battle is in the governmen organ, the Proplex Tribune, which speaks of a "Gigasitic engage ment now taking place in Ifona

with heavy losses." It complains that the facilities for the wounded Hankow are inadequate and appeals to Foreigners as well as Chinese to assist in organising a Base Hospital and Medical Corps. NAVAL WIRELESS, ] Severe Fighting On The Honan Front.

nt

HASKOW, May 29th. Practically the whole of the Southern Eiglub Army was wiped out in a severe battle on the Houn front to-day,

The Fengtien forces launched un ffensive on a large scale, and the Southerners suffered a severe de fear, attended by heavy loss of

Only brief advices have reached Hankow but it is clear that the battle was the most severe of the whole Southern' campaign.

the Shatang border.

In

small cumber. He intends to leading with any opposition, those troops still loyal to him to

Dissension among the ranks of view of the fact that the the Northernara was apparently re- breaking-off of Anglo-Russian responsible for the collapse in front fations will he realised, the Peking

of Chiakiung. Government is reported to be draft- more drastic measures to deal with the Soviet Government.

Hankow Troops In Revolt.

SHANGHAI, May 26th.

A series of remarkable messages from Lankow indicate that matters! are coming to a head at last, and that the end of the Communist in- fence is in sight.

The Southerners are now beyond Kanyu, and approaching the Shan- tung border rapidly.

Chinese Honour Queen Mary. PUROW, May 26th

A striking commentary of the change of feeling with regard to All the Troops, which were believed to Britain occurred to-day. be strongly Communistic, and were

Wachang to defend it Chinese cruisers present dressed against Sha Tao Yin, ure in revolt, ship, flying masthead flags, the and Nationalist Rags except those ot public buildings are absent.

Eti Lo

The change of attitude began with an organised pulling down of

White Ensign at the maine:domu:

our of Queen Mary's Birthday.

It is being freely stated ashore

posters and streamers deriding to-day, Thursday, that the Ameri | Marshal Chiang Kai Shek.

Armed posses visited all employ can missionaries have returned to ers whose men are on strike, and Nanking: invited them to attend a meeting to discuss the closing down of Labour Unions. The Russians are how showing distinct signs of uneasiness and are making hasty preparations, for a hurried depar

ture.

A Southern Reverse. News from the war fronts de finitely contradicts the reparted capture of Chengchow by Marshal Feng Yu Hsiang, while it is under- stood that the Southern army un the Honan front has met with a

reverse,

The Fengtieu farcea also sufferedRevere heavy casualties.

CHIANG KAI SHEK'S TOUR

OF INSPECTION.

Wah Paz Fat Pao).

SHANGHAL, May 27th. General Chiang Kai Shek has the started his journey along Tientsin-Pukow Railway on a gen erul inspection of his Army at the front and it is reported that he will go to Pengpu for the purpose

of convoking a military conference

BRITAIN AND SOVIET.

THE LIBERAL VOTE IN THE DEBATE.

(THROUGH REUTER'S AGENCY.]

Though two days had been allotted has concluded.

It is understood that it adopted, without modification, the Govern- went of India's policy, and agreed. that a Committee should be ap- pointed by the Government of

be reconsidered.

Lower Wages No Remedy,

This is a national need, not' a class question, and there is no rational policy that can suit every- bady like a pair of boots. If the labourer and the farmer do not see

in point. Not long sinee Senator workers on the land. The really Henry Lemery quoted in the Chum-Tragic feature of the situation is With regard to Forestry it was

her some figures of worship costs that it is the younger people who mentioned that the demand for supplied by the Naval Ministry, are going away. soft woods was worldwide and so

These figures showed that since 1922 the advance in costs of construction great that it was feared supplies in French yards has been as fol- laws: For a cruiser, 47.2 per cent,; thereof would be greatly reduced for a flotilla leader, 54.2 per cent.; within score of years.

The for a destroyer, 60.1 per cent and for a submarine, 45.7 per cent. opinion was expressed that it was These increases are based upon the advisable that each Colony, should cost per ton, and, of course, take take steps to render itself as far as lative value of the frame during

into account the changes in

possible independent of outside the two periods. supplies of timber.

#2

WORLD'S LABOUR.

re-

the necessity of standing together and realising that their interests are in common, they will both go landlord will be left to cultivate to the wall, and no one but the

the land.

In the United States the inflation

The farmer asks what relief of naval constructional costs has

from his burdens he can get. Some been enormous, but there is an

The say Reduce rents and rates,' others for this. reason artificial

Associa say Reduce wages, but the latter American Shipbuilders

seems absolutely impossible. tion, in its fast annual report, had better face that now. I am not states that the industry has be

You

ASIA'S MYRIAD OF WORKERS. come desperate," and the Govern coming here merely to tell you

(THROUGH MELTER'S AGENCY.]

GENEVA, May 26th. In his presidential speech at the International Labour, Conference,

nent is doing all it can to bolster things that will please you. If you it up by naval contracts at most try to reduce wages you will empty uneconomic prices-rather a quaint the land and the villages. It is not commentary upon the grandiose right and not necessary. The in which conditions under secure scheme of ten years ago lor wip-

farming is carried on at the "British shipbuilders. ing

You must moment are absurd. give agriculture the same security

Japan is characteristically reti cent as to the cost of her new war- ships, but naval construction has on the fand as the colliery proprie

India to tour the various States Sir A. Chatterjee emphasised the always been very expensive in that for underneath it. Otherwise capi-

and report.

LINDBERGH STILL BEING FETED.

CALLS ON DISTINGUISHED

MEN.

(THROUGH RECTER'S AGENCY.]

PARIS, May 26th Capt. Lindbergh has been feted for four days uninterruptedly, and the enthusiasm for the young "Columbus of the air" shows no signs of dying down,

Marshal Foch received Lindburgh his house this morning and gave him his photographs, remark- ing smilingly, "It is not the photo- graph of a pretty woman, hut of a sincere friend."

at

large number of workers in Asia country, which is the reason why tal will never be put into working

she placed so many orders in Great the face of it.

The insecurity now is more and the rapid development of in-Britain in pre-war times. In Italy dustry and manufacture there, on shipyard costs have not advanced than double what it was before the modern lines, and therefore it of recent years to any appreciable war beenuse landlords are unable degree, chiefly because the workers in many cases to make both ends would be a mistake for the Inter-stick to their job-Naent and meet and cannot afford to keep their properties intact. This brings national Labour Organisation to try murd-

a new element of insecurity into the farmer's life. He sees landed concentrate its attention too ex-

estates that outwardly look as firma clusively on Europe and America.

as the Rock of Gibraltar vanish through the saleroom.

He declared that it wALS most gratifying that in both Japan and India the principles of industrial legislation had been accepted not only by all political parties but also by the employers and workers. The existence of the Labour Or ganisation guaranteed that the principles of labour embodied in the Treaty of Versailles would not

be lost sight of.

He concluded by expressing his

TIGHTER INCOME TAX

SCREW.

BOARD OF INLAND REVENUE TO SEEK OUT EVADERS.

The Board of Inland Revenue is perfecting plans for improving the collection of income and super-tax. This is one of the results of the

Fewer Officials.

The best thing for everybody con- cerned is to return to the old, old system when the freehold belonged to the State, with the security that the people who cultivated the land should remain on it while they paid a reasonable rent and cultivated it properly.

"Under the Liberal scheme there

work of an expert committee which would be fewer officials than under has been sitting continuously under the present system of landlord and Mr. Churchill's personal direction tenant. He illustrated this by say in Whitehall.

The loss of £4,250,000 in income-ing that the Prince of Wales's estato of 193,000 acres in Cornwall, belief that the organisation would tax alone during the financial year had only one agent, but if it were just ended is directly attributed at make a valuable contribution to the Treasury to the retardation divided into estates of the average size of 10,000 acres it would have thirteen officials. He contended, * Lindbergh Hulsequently called wards harmonising the serene at of collection caused by the in-

dustrial

position last year,

therefore, that the placing of farms, uider one authority would mean on Marshal Joffre and General | titude towards life characterising.

Aiming High

LONDON, May 27th. Fourteen out of 39 Liberals voted suffering heavy for the Government on yesterday Gourand, the military governor of the East with the strain and stress In the current year the Treasury fewer, officials and not more. Tha

Mr. Lloyd Paris; and Inter lunched with M. of the new age, (Applause.) nigh!'a cenzure motion.

Briand at the Quay D'Ormay.· He' George abstained.

then drove to the town hall in state, and there was given a pub lic reception.

estialties.

Russian's Flight From Hankow. HANKOW, May 28th. The end of the Red" regime.ap- pears to be a fuit accompli.

it

Comrade Borodin and seven Russian left Hankow for the south bank (presumably Wuchang) this morning (Thursday) and understood that they are leaving Wuban entirely as soon as possible, Ali the Russians have been hurried- ly making preparations for depar ture.

An Agreement With Chiang?

It is understood from reliable

to discuss an attack on Hauchow, sources that an agreement has been

port General Chang Tsung Chang

recent

AN AMERICAN CROESUS.

MR. ROCKEFELLER GIVES ANOTHER 40,000,000

FRANCS.

(THROUGH REUTER'S AGENCY.)

PARIS, May 27th. Mr. John D. Rockefeller, who don-

According to a semi-official re-reached between the Hankow Gavated 18,000,000 francs in 1924 to- ernment and Marshal Chiang Kai wards the upkeep of the National Shek, and it is probably as indica- Paincos of Versailles and Fontain- tive of this that all the virulent bleau and the restoration of their

Cathedral, has donated a further anti-Chiang Kai Bhek posters have been removed.

40,000,000 to complete the work.

A wounded during โค struggle with the Southerners and has been removed to Tsinan fer medical treatment.

THE "MALOLO" COLLISION.

HAPPENED IN FOG.

[REOTER'S AMERICAN SERVICE.]

NEW YORK, May 28th. The Matola collision (100 miles from New York) was due to fog,

and the s.. Malolo is now

* .

THE DISARMAMENT PROBLEM.

NEW ZEALAND'S REPRE-

SENTATIVES.

(THROUGH REUTER'R AGENCY,]

LONDON, May 26th.

is expecting the Board of Inland object under the Liberal scheme was Revenue to collect that 43 millions, to have one official under the

as well as 232 millions Income-tax county authority.

and 62 millions super-tax. An at tempt is to be made also to "screw** from the expiring Excess Profits Thuty and Corporations Profits Tax another 6 millions.

Bointing By Experts.

This especially is the case in But it is understood that the connection with certain big indus- Board of Inland Revenue is to aim tries in the manipulation of profits, at a much higher total figure than and also has not a little to do with the recent estimates of the Chan foreign companies, which have elior in his Budget.

"Both the Treasury and the plant and factories in this country. "It is in that direction, amongst Board of Inland Revenue," it was others, that the closest accountancy New Zealand has appointed the stated to the Evening Standard scrutiny, under the supervision of while recognising the Board of Inland Revenue, may representative, High Commissioner in London that the British system of tax colhe anticipated, during the current (Sir James Parr) and Viscount lection is the most scientific and yet are aware that there is well Jellicne to represent it on the three-effective in results of any country, organised and carefully engineered evasion in many directions. (Continued at foot of nezi, column).

Power F&N-

chored with two steamers standing by. A tug has been sent out.

Armaments

Conference

which is opening at Geneva on Juno

oth.

year.

The amount of expert work re- quired in unearthing those new sources of income-tax will not, it is thought, be very great after the first investigations.”

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