HONG KONG DAILY PRESS, SATURDAY,

CHINA STILL ADAMANT

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·FLAGRANT VIOLATION OF LEAGUE

COVENANT BY JAPAN

CHINA WILL NOT TOLERATE NEUTRAL ZONE

(Tumovox 18UTER'N, AGENOY.)

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SHANGHAI, March 11. - The oplaton is given in Chinese diplomatic circles that China - will probably relŝs objection to that part of the Assembly's draft. 'resolution which deals with the “ inatter of policing of the neutral zone round Shangkal” ' It le intimated that Chinese cannot agree to a neutral zone and will insist that no question of this nature should be rälsed at Genova. :

Referring to the Tokyo report that Japanese troops in Man. churia may be compelled to remain outside the railway zone natll the new State is able to maintain peace and order unaided, A., spokesman of the National' Government this evening sald; that "Japan is openly aiding and abetting a rebellion in the terri tory of another "Lesque member in flagrant violation of the letter and spirit of the Covenant as well as in complete diregard to her solemn undertaking before the League,"

The spokesman déclared that China is unable to agree to the mention of a neutrál zone in Shanghai in the League discussion or resolution.

He added that China insists that the Manchurian and Shang- bai questions be settled together as they are closely related.

JAPAN'S DECISION. ON LEAGUE RESOLUTIONTM

Tokyo, Mar. 21, 2.47 p.m.

Replying to the query of the Japanese delegation at: Geneva as to what attitude it shall adopt to the Assembly's resolution, it is authoritatively stated that instructions are being sent telling Mr. Sato to refrain troin voting, as the resolution indirectly bears on the Manchurian situation,

At the same time, they are asked to clarify the Japanese stand, refusing to agree to the application of Article XV. to Manchuria as the League's resolution provides that the question is doaed til the receipt of the Report of the Commission, which in. sailing from Kobe to Shanghai by the President. Adams this after-

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SHANGHAI PEACE NEGOTIATIONS

SHANGHAI, Mar. 11... Chinese officials are at uneor iaio today in regard to the peace negotiations as they are waiting a reply from Japan as to whether she is prepared to agree to China'y attitude, defined yesterday.

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THE ** TIMES ** DIFFERS FROM LEAGUE

LONDON, Mar, 1k The Times, in a leading article regarding the League Assembly's Sino-Japanese, resolution approves. its dignity, good sense and modera tion, and pays a tribute to Sir John Simon's influence in its prepara. tion."

COMPELLED TO STAY IN MANCHURIA

OFFICIAL TOKYO

STATEMENT

THROUGH REUTER'S AGENOT.1.

"

TOKYO, Mar. thi; 9.46 p.m. The possibility "that Japanese troops will be compelled to remain outside the Railway Zone in Man churia indefinitely, maintaining mill, tary control over the Three Eastern Provinces, despite the fact that Japan agreed to the League resolu. tion of September 30, is latimated by oficial quarters.

The Tokyo Government attitude is that the formation of the new Manchurian State has changed the whole situation, necessitating the retention of Japanese troops for the purpose of assisting to mala. tain peace and order, at least" unili the new Stafe bas proved its ability to ensure peaceful conditions un- aided.

AMANO BRIGADE

ATTACKED

HARBIN, Mar. 11. It is rumoured that troops be. longing to the old Kirin army yes terday attacked the Japanese gar rison at Ningute, which is the headquarters of the Amano Bri- gade.

Many thousands were present at to-day's ceremonies connected with the hoisting of the five-coloured fing. of the new Manchurian State, while the Japanese gave az aerial dis- play.

The fourth provides for the establishment of .. Commission,

BRITAIN'S

FINANCIAL

RECOVERY

A WAY TO CHECK SPECULATIVE RISES

[THROUGH REUTER'S AGENCY.J

LONDON, Mar. 1. The wave of foreign speculation in sterling, following Brain's re- covery hue inspired most import- ant letter from Sir John Bradbury to the Times pointing out means whereby the authorities may check the speculative rises, which Sir John Bradbury considers harmful while gold prices remain low. He remarks that if the authorities "in- tended to foster the appreciable recovery, in sterling it is scarcely conceivable they would have sold sterling at rockbotton price to re, pay dollar and frane credits, Wo may namume that, unless the pur chasing power of golt declines con- siderably, sterling is unlikely ex cept temporanily to exceed 6$3.40. The authorities can check a rise rise either by selling sterling or by buying gold, adding that the latter means are likely to yield a hand. some proat,

The Times 'comments that busi- ness inquiries indicate that the present sterling exchange is more convenient to Britain's trade tham G83.40, otherwise it agrees that the chances of sterling rising to $4.86 in most remoto, owing to the low goki prices and high domestic priest due to the internal debt, high wages and sheltered indus tries.

LONDON, Mar. 11

Mr. Neville Chamberlain anmoune ed in the House of Commons that the Government at present did not wish, the value of starling to rise considerably. Sooner or later we will be obliged to link sterling to a metallic basis, but he was un able to say whether on a basis of gold or a mixture to help out gold

LOWER BANK RATE WELCOMED

[BRITISH: WIRELESS SERVICE)

RUGBY, Mar. 10. Although to-day's reduction of the

MARCH 12, 1932.

KING'S GRAND-

SON WEDS

PRINCE LENNART AND MISS NISSVANDT

(THROUGH DEUTER'S AGEHOY.]

LONDON, Mar. 1. The marriage of Prince Lennart, a grandson of the King of Sweden, and Miss Karin. Nisevandt, a daugh ter of a Stockholan merchant, ab a London register office stirred popular interest to an extraordi mary degree in view of King's Gustave's distaste to the alliancë.

The bride's dress way of cau de nil, and coat and hat of the same colour,

None of the bridegroom's rel tires attended the marriage, both the mother, the Grand Duchess Mario of Russia who dopa not live with her husband, and his maternal uncle, the Grand Duke Dmitri who is "nt present in London, did not object to the marriage but strongly disapproved of the absence of a church ceremony,

The newly wed pair, who now Assure the name of Mr. and Mrs. Bernadotte, will reside at Lake Constance.

They were greeted hysterically by an enormous crowd, mostly women, as they left the register office.

REPAYMENT OF FRENCH

·AND U.S. CREDITS

£13,000,000 LOSS TO BRITAJN

(Reuter's Special Service.)

-

LONDON, Mar. 10 Mr. Neville Chamberlain timated in the House of Commons to-day that the loss incurred in the recent repayment of the French and American credits to the Bri tish Government. amounted ;£13,500,000, which would be added

to the internal sterling debt.

to

STIMULUS TO THE TEXTILE

TRADE

GERMAN

PRESIDENTIAL

ELECTION

"RED" CANDIDATE AND RUSSIA

(THROUGH: REUTER'S AGENCY.]

MOTOR-COACH STATION

LARGEST IN THE WORLD.

Opened Yesterday in London

(Reuter's Special Service.)

LONDON, Mas: 11. Evidence of the growing appeal for road travel was given to-day when Mr. Pybus, Minister of Trans-

BERLIN, Mar. 10. Twenty thonsand Communists stretched out their fists, swore themselves to bring about the doom of Capitalism, and shouted them- solves honreo pledging their alleport, opened the world's largest. giance to Soviet Russia this even- ing when Herr Thalmann, the` Communist presidential candidate, delivered his election speech at the Sport Falaov,

Herr Thaslinann depicted Russin is a workman's paradise and dec Jared that the Far Eastern problem was the greatest in the world to day.

Hindenburg's Manifesto. Rumours that President Hinden

burg will stand down if the Presi dential election on Monday is not decisive, wore emphatically denied by the President to-day in a broad- cast manifesto.

i

WEATHER, REPORT.

Yesterday's weather report, forecast, and remarks, issued by the Royal Observatory at 5:20 p.m," stated:-

A depression extends from N.. Indo-China to Shaniang.

Local Forecast: - Southerly winds, moderate; squally; gen- erally overcast; some rain nex fog...

President Hindenburg says he has placed himself at the disposal of the German nation for re-election only as a patriotie duty. The elec tion of a party man representing extrome political views, who would

motor.coach station.

Thirty-two companies will use the station where special facilities are ||| provded for maintaining direct tale. phonio communication with all pro. vincial stations..

THE LINDBERGH

OUTRAGE

NO NEARER SOLUTION

[REUTER'S AMERICAN SERVICE.])

New York, Mar. 10. Nine days have olapsed since the kidnapping of Colonel Lindbergh's baby son and there is still no de faite indication. that the terribly anxious parents are any nearer the recovery of their child.

وار پراید

Police efforts have failed com- pletedly up to the present and at tempts to establish direct com- munication with the kidnappers have brought no resalt.

A further complication has risen." to-day in that Lindbergh'e gange. ter helpers, Salvey" Spitale and Irving Bitz are both in trouble.

Spitale and Bitz and fourteen, others were brought up in the

including the President of the Bank from five për cent. to Lou RESULT OF INDUSTRIES FAIR have the majority of the German Federal Court today on a charge.

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per cent, had been anticipated, it | was warmly welcomed in the City and caused a general rise in Gov- ernment securities.

They are nightly scattering inflam-Assembly, M. Hymans, all members malory pamphlets in the Settle of the Council, except Japan and ment and French Town Police Chine, and six from the Assembly,

The official announcement WAS raids have produced anarchistic, it be elected by ballon”

loudly, cheered. It is taken general- documents, exhorting workers · to The general purpose of the Comly as a sign of confidence. rise and demand compassionate mission will be to supervise and grants from Chinese and foreign promote the peace negotiations. capitalists amp the confiscation of all Japanese property in China, dividing the proceeds among the pensanta.

REPLY DELAY

"

(Reuter's Special Service,)

LONDON; Mar. 11. Financial circles are of opinion that the lowering of the bank rate, It is generally expected that equal to two per cent in three. Japan will accept the drafted re-long-dated Government securities weeks, will give fresh strength to solution, though it is now very and prapare the way for conversion

whether the Japanese operations. doubtful

It is also taken for granted that Government's reply will be receive the decision will further increase ed tomorrow,

foreign confidence in Britain's fin- The resolution is the strongestancial strength, yet adopted by the Lengue.

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The Police are vigilant against any possible attempts to precipitate a general strike, while the Japanese authorities are doing their best to control their own nationals.

"A total of 67 Japanese residenta

It represents Japan's last chance in Shanghai, of the Ronia type, of accepting conciliatory procedure, Sir John Simon was, no doubt, have been deported since the out- If this falle, the Assembly Commis "guided by the British Ambassa break of the conflict for disturbing sion is authorised to submit re commendations, and failure to com. dor in Tokyo, who has firmly with the peace and misconduct general-ply with these recommendations stood the exhorations of those who,ty, bringing discredit on the Japan-would, it is understood, entail the

in a mood of quite natural moral indignation, would take measures aganist Japan which could only be interpreted as war."

There is no doubt, the Time goes on, that the vast bulk of British public opinion strongly approves the principle that the League's function in this should be mediatorial and not coer- cive.

cake

name.

The Consular authorities and the Police are exhausting every we source in rounding up undesirables who have taken advantage of the situation to commit all sorts ex-

cesses.

44

JAPAN'S LAST CHANCE

[REUTER AND BRITISH WIRELESS.]: What makes it peculiarly un- suitable for League intervention,

GENEVA, Mar. 10... against Japan is frstly, the Japan- nccepting the League's method for Japan is given a last chance of ese Government suffered long pro- Vocation before

Bottling the Sino-Japanese dispute changing from diplomatic to military action and in the resolution which is to be secondly, Chisa is not an organised submitted to the Assembly State and cannot even altim to Failure to comply will, it is РОКВОВВ the qualifications for understood, entail the automatic League membership laid down by application of Artiole XVI, of the the Mandates Commission

League Covenant, with the attend, The Times, however, does not ant sanctions, econenic boycott, condone all that Japan has done, etc." commenting that her precipitancy in Shanghai has, to say the least, been most unwise.

Japan's Anancial strength is baing sapped, her sources of credit are running dry and her trade has been disastrously damaged,

In many respects, the Japanese: have aggravated the very is that they set out to cure and they have also forfeited many sympathies.

The wiser course for Japan would

automatic application of Article XVI. with attendant sanctions.

BRITISH GOVERNMENT

י יו

STATEMENT"

LONDON, Mar. 10.

BUDGET DATE......

ANNOUNCED

AJR ESTIMATES BEFORE COMMONS

[IBUTER AND DRITISH WIRELESS.)-

LONDON, Mar. 107

(Reuter's Special Service.)

LONDON, March 10.

It was announced in the House of Commons by Major Colville, the: Secretary for Overseas Trade, to day, that 3,839 overseas buyers at Eended the textile section of the British Industries Fair, na oom pared with 1,503 last year.

The oversens orders for British

showed an increase of approximate textiles, as a result of the Fair ly 100 per cent. over the figures for

1931.

INTERNATIONAL OIL CARTEL

ROYAL DUTCH-SHELL PROPOSAL

[REUTER'S AMERICAN SERVICK.]·

NEW YORK, March 10. Plans to stop the overproduction of petroleum through the formation of an international oil cartel," are announced by Mr. J. B. Kesslerm It is announced by Mr. Baldthe joint managing director of the win, acting Premier, that the Bud Royal Dutch-Shell group.

RUBBER OUTPUT

RESTRICTION.

·

In the House of Commons to-get for 1032/33 will be introduced It is suggested that American oil: day, in reply to questions by Mr. on April 10.

interests should agree that for a George Lansbury, the leader of In submitting the Air Estimates period of five years, the United the Opposition, Captain Anthony to the House of Commons to-day, States oil exports should "not ex- Eden, Under Secretary of State for the Air Minister, Sir Philip Sasceed the imports by more than a Foreign Affairs, made. a lengthy soon, said that the total of £17, specified figure thus avoiding the statement, outlining the course of 400,000 showed reduction

American anti-Trust lawn.. tione. the Sino-Japanese peace, negotia £700,000, this being the depart ment's contribution to the urgent Captain Eden said it was not requirements of the financial situa dear al present how the unfortu. Į tion. ( nate hitch in the negotiations could The saving had been affected bo overcomNG, but the British without permanently impairing the Government was not only contri-high standard of efficiency in the buting its utmost to assist, but air services, had no desire to complicate the During his speech, Sir Philip Sar- position by introducing extraneous soon stated that the experience gained in making the winning machines and engines "for". the Schneider Trophy contests, had been

THE HAGUE, Mar, 10, of very real value in designing the

Hope for an agreement between. new equipment for the Royal Air British and Dutch producers for Force. The result was that though the restriction of rubber output reckoned by size alone the force have been revived by an announës. took only fifth place among the nir forces of the world, they had thement that negotiations, are pending in London which "will be attended satisfaction of knowing that no by. Heer Luytjes, Adviser to : the other Air Force was better equipped Dutch Colonial Minister and a while nowhere was the standard of British Government official. training and efficiency to high..

matters.

The text of the resolution which Mr. Lansbury referred to the is to be placed before the General Chinese report that the Japaness Committee of the Assembly was intended sending troops to Tien created to the delegates to-day sin and suggested that the British and its terms telegraphed by their Government should make repre representatives to the Japanese and sentations to Japan against the

proposed action, The text is of considearble Both Captain Eden and Mr. Stan length and in based on the|ley Baldwin replied that they had article of the Covenant and the not seen any reference to a pro- Paris Pact,

posed Japanese landing at Ticatsin. S.V.C. RELIEF

Okinase Governments.

It is divided into four paza-

be to discard the promptings-of | graphs," the first laying down that

the militarist policy and revert to the liberal principles which acta ated her adherence to the League Covenant and the Washington Treaties.,

COMMUNISTS BUSY IN

SHANGHAI

(From Our Own Correspondent.)

SHANGHAI,, Mar. 1. Radicals and Communists are trying to seize the opportunity offered by the disturbed situation to restate subterranean activities.

the Assembly recognises that the Covenant can be applied to the prosent dispute.

The second affirms that it is contrary to the spirit of League Covenant to find or seek solution by military force.

More In Future, «"6", SHANGHAI, Mar. 11.

He warned the House that to The Shanghai Volunteer Corps maintain such a standard more has now been placed upon a pre- ceailionary basis, which means that money would be required in future they are required for part-time yours than was asked for in the duties only, enabling them abortly Present Estimates, to resume normn! civilian work,

U.S. TROOPS TO STAY

The third reads, with the pre-

WASHINGTON, Mar. 20. vious, resolutions of the Council The 31st American Infantry Regi- and the principles which have been | meat will remain in Shanghai for laid down, oon of the first oblige the present. tions is the withdrawal of the Japanese forces.

WITHDRAWAL

(Continued on next" column.)

de

The Government has now cided not to order the transfer to Manila immediat

Regarding civil aviation, he said that Britain had avoided giving air transport excessive assistance and had followed the plan of encourag ing air transport to fly by itself.

Proposals were on foot for bring ing into aperation another twelve thousand miles of Empire routes and when that could be done, the Empire would posses over 37,000 miles of organised air routese

NEW APPROACH BY: DUTCH GOVERNMENT.

TERCON REUTER'S AGENCY.]

Heer Luytjes har been instructed to point out: the difficulties with which the Dutch Government is faced and to acquaint himself with the British idens with a view to an early decision by the Dutch Gov

ernment.

The Committee of the Dutch Rubber Growers, Association, who are all restrictionista, have also left for London to confer with British growers who favour a restriction scheme,

The present negotiationslara da continuation of last November discussions, which were attended by Dr. Van! Dor Waale, a Dutch Gov- ernment official

people against him, would bring the Fatherland into an era of seri ous disorders..

Germany's Freadom. Bindenburg declared that his signing of the Young Plan" and the Emergency Decrees had as a motive his ardent love for the Fatherland and his strongest desire for Ger many's freedom,

He concluded by appealing to the struggle for the freedom of the German people to unite in the

nation, just as in 1914.

of smuggling liquor..

Furthermore, the kidnapping of Spitale's two children has been threatened as a reprint for their father's activities on behalf of Col Lindbergh.

Meanwhile, Al Capons has apar pealed, to the Federal Government

ary in order to help in the search to release him from the penitenti

for the Lindbergh baby.

The Bavarian Prime Minister,

"I wdd do everything in my Dr. Held, has appealed from Munich, Herr Hitler's headquarter power to get back the laid; declar ters, to all Bavarians to vote fored Scarface," who has offered to Hindenburg, who he says, is the only man who can save Germany deposit bound of $500,000 it be from chaos,

is released.

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