AGREEMENT AT

LAUSANNE

FRANCE GIVES WAY TO GERMANY

MR.

N. CHAMBERLAIN'S MASTER

STROKE

(THROUGH REUTER'S AGENCY.]

Lausanne, July 8. POINTS WHICH HELD UP THE GERMAN DEMAND FOR A POLITICAL CLAUSE AND THE TRENCH DE MAND FOR A HIGHER CONTRIBUTION TO THE CON-

AS FOL STRUCTION FOOL, HAVE BEEN LOWS:---

TCONFERENCE, NAMELY, THE

SETTLED

THE PREAMBLE TO THE AGREEMENT WHICH IS

CLOSING THE WORDED VAGUELY REFERS

DOORS ON THE PAST.

TO

or

AT MARKS THE

IS FIXED GERMAN PAYMENT 3,000,000,000 BUT MUST BE ISSUED AT NINETY YIELD- ING MARKS 2,700,000,000 INTEREST AT FIVE PER CENT. ·

THE BONDS WILL BE BLOCKED TO THREE YEARS AND IF UNISSUED IN FIFTEEN YEARS THE WHOLE ISSUE WILL BE CANCELLED BY A BINKING FUND FIXED AT ONE PER CENT.

1

WELL DONE

It is officially announced that "practically a complete agree. ment has been 'reached."

Mr. MacDonald departs for London to-morrow night,

LAUSANNE, July 8.

ot

10 abandon hope Mr. Ramsay MacDonald's refusal

A feature in reconciling the Franco-German differences is this hard-fought Conference, while Mr. N. Chamberlain's dinner to M. Herriot and M. Germala.Martin last night was a master. stroke.

Under its genial Influence M. Herriot's tenacity softened quickly,

Taking advantage of the change in his mood the British Minister brought Herr von Papen and Herr Neurath to a confer. ence with the French delegates and Mr. MacDonald in the small hours.

When the conversation ended the delegates returned to bed, tired but with a 'revived hope that all depends on the wording of the short preamble to the treaty of which scores of drafts have been examined..

It is understood that M. Herriot agreed to give the Germans A measure of satisfaction as regards the Wer Guilt Clanse.

Mr. MacDonald looked very fit when taking his usual early constitutional with Miss Ishbel and Sir John Simon before 8 a.m.

Herr von Papen arrived at British headquarters at 10 a.m. to discuss with M. Herriot the French emendations to his draft to the preamble, The meeting adjourned after an hour. Progress was reported but no agreemeel,

WAR

GUILT CLAUSE QUESTION

HONG KONG DAILY PRESS, SATURDAY, JULY 9, 1932.

A LONDON SOCIETY SCANDAL

Froved to Have Had No Foundation

THROUGE HEUTER'S AGENCY.)

LONDON, July 8,

A SCANDALOUS paragraph in the newspaper People reflecting on may unnamed society woman led to a libel action by Lady Louis Mountbatten in the High Court.

RECTOR OF STIFFKEY CASE FRENCH SUBMARINE

DISASTER

Found Guilty on Most Charges,

(THROUGH REUTER'S AGENCY.]

LONDON, July 8.- THE Reverend -Harold Davidson, rector of Stiffkey, against whom charges of immoral conduct were investigated for twenty-five

DRAMATIC ESCAPE OF OFFICER AND SIX MEN:

(THROUGH REUTER'S : AGENCY.)

CHEMBOURG, July 8 AM Lieutenant Dumesnil,

"I AM Lieutenant. The sub

CHINA-JAPAN AND ABOLITION OF THE

MANCHURIA

NANKING DECIDES TO NEGOTIATE WITH JAPAN

(THROUGH REUSER'S AGENCE.)'

TAEL

NEGOTIATIONS REPORTED IN SHANGHAI

[TRROUGH REDTER'S AGENCY.]

SHANGHAI, July 8 THE China Presa learns that de finite stops for the abolition of

It stated that a woman highly days by the Chancellor of the marine Promethea, my submarine ACCORDING to the China Prets the Taol and the retention of the

connected. immensely rich and associated with a coloured man had Lecome the talk of the West End as the pair were caught in com proinising circumstances after which she was given a hint from a quarter impossible to ignore to clear out of England for a couple of years.

Sir Norman Birket, in opening the hearing announced a settlement had been reached with the defen- dante, the Oldham's Pross, and that the Editor of the People had spo logized and would pay all conte.

The plaintiff refused the heavy damages which the defendants were willing to pay.

Counsel added that plaintiff had

never met the man believed referred

to.

DISARMAMENT

Diocese of Norfolk, was found guilty on all charges except those dropped during the case.

The Bishop of Norwich will an. neunce sentence' in due course.

WOMEN'S SUFFRAGE

REJECTED BY FRENCH

SENATE

(THROUGH RESTUR'S AGENCY:]

PARIS, July 7, THE Senato diy rejected by

¡

253 votes to:40 a. measure for Women's Suffrage..

BRITAIN'S REPLY TO HOOVER PLAN

LIMITATION IN SIZE OF CAPITAL SHIPS AND CRUISERS

PROPOSED BAN ON AERIAL BOMBING

(REUTER AND BRITISH WIRELESS,]

Rucny, July 7 world far removed from one an An important declaration of cther.

Reductions Made, Britain's disarmament policy was made by the Acting Premier, Mr. Baldwin, in the House of Commons to-day He profaced specific pro- prosals by pointing out that the British Government cordially wel comed the Hoover declaration be oause it called for a really sub Istantial measure of disarmament and sought to apply the two prin- ciples of qualitative and quantita tive limitation.

New Offer.

It was essential to bear in mind the very large reduction in the number of ships of all categories which had already been effected. If comparison was made with the year before the war, it would be found that capital ships had been reduced from 60 to 15, cruisers from 108 to 32, destroyers from 293 to 247 and submarines from 74 to 52.

the

Numerical reduction in British Navy, had therefore already been applied on a very large scale, and, indeed, the cruiser numbers would require special consideration hereafter. Mr., Baldwin, thought while there was a limit to numerical reduction, it was perfectly possible And in the highest degres desirable

BHANGHAI, July, B.--

well-informed circles state that has just sunk," was the dramatic utterance gasped out to the skipper direct negotiations between China Dollar as the medium of exchangs of the fishingboat Yette, by one of and Japan on the Manchuria situai Chiu were takon at a meeting. the men when picked up.

tion have been deaded upon by yesterday between the Native Bank-

ers' Guild, the Chinese Baakers The skipper stated he was fishing Nanking. when he heard desperate calls for It is stated that those negotia Guild, the Chinese Bankers' Assa- help. He climbed up the mast and-tions will be international and all ciation and Mr. T. V. Soong.

"A decision, adds the China Press, saw seven dots in the water, He Foreign Powers with interests in succeeded in saving all seven mea the Far East are being invited to is expected to be implemented in the immediate future. Speakers at who were on the verge of exhaus. attend and that the deliberation the meeting alleged that native will be based on the Washington bankers always fought changes tion and some were crying.

Treaty, but it is indicated that which would do away with the fluo China will probably agree to the

were and the Dollar, as profits dive basic principles laid down by tuating differences between the Toel Japan before the League meeting derived from the latter. last October.

The recent decline of the Dollar It is understood that Wang Chingin relation to the Tasl is reported

After the ordeal, Commander Dumesnil is reported to have de- clared that the catastrophe is in explicable, but that some mistake must have been made. The tub. marine was sailing normally on the surface with ten men on the bridge Wei has drafted a plan for direct to have adversely affected cortain when suddenly he felt the vessel negotiations and also that Chiang businesses here recently.

plunge beneath his feet. She dis. Kai Shek agrees therewith, appeared in a few seconds,

SUBMARINE LOCATED..

IMTER

The sunken French submarine Promethee, with sixty-six aboard, kas been focated in seventy-five metres of water north of Cape Levi Gold,

The salvage steamer Artiglo is proceeding to the spot,

MODERN SUBMARINE

CHERBOURG, July 7.

One of France's most modera

submarines came to grief today when she sank during surface trials. Of seventy-three otheers and men on board, so fur only seven have been saved.

The ill-fated craft was the first class submarine Promethee and, at the time of the disaster, she was carrying out trials seven miles to the north of Cape Levil.

Those who went down with the vessel were a crew of forty-nine, with seventeen engineers and work men. The craft sank in 150 feet of water.

N

CHINA AND SOVIET RUSSIA

TOKYO BECOMING NERVOUS

*(THOUGH RECTER'S AGENCY.]

TOKYO, July 8. OFFICIAL despatches received by the Foreign Offico confrm Press reports that China has approached the Soviet with a proposal to re- apen diplomatic relations and eater into a non-aggression paat,

Questioned on this matter, M.. Karakhan intimated to the Japan- ese Ambassador, Mr. Hirota, that the formal proposal had not yet heen received, but that the Chinese and

aounded Moscow verbally whether the Soviet is prepared to consider the reatoration of diploma

There are fears that the disaster.tis relations, either with or without

a non-aggression pact. may mean henvy loss of life, as so tar only seven of the crew have been saved.

Rescue Work Dificult.

1

The Redoubtable and the Vengeur made a cruise to the West Indies in 1930.

Seven Escape,

ALLEGATIONS DENIED

NANKING, July 8.

a Japanese With reference, to News Agency's report from Harbin alleging that the Chinese Govern- ment is asking Soviet Russia for active support in its proposeu re

CHERBOURG, July 8. A night-long search has so far

covery of Manchuria after Sizo- failed to locate the sunken sub

How seven of those on board Soviet diplomatic relations have managed to esenpo is now disclosed been resumed, a spokcaman from

marine.

LATER, It is understood that T. V. Soong prior to leaving for Nanking, last night, had a conference with Shung- hai's leading bankers.

A decision was reached that bo ginning from August 1, the Chinese monetary system would be changed. Tho Tael will be absolished, with the Dollar as the Chinese monetary unit.

BRITISH

TRADE ON YANGTSZE

DISABLED BY REGULAR TAXATION

THROUGH REUTER'S AGENCY.]

LONDON, July & RELYING to a question by Mr

W. Num (N. Con, Whitehaven) in the House of Commons to-day in- regard to irregular taxation on the Upper Yaugtaze and the disability it imposed on British trade with the province of Szechuan, Captain Anthony Edon said in view of the present conditions in the Upper Yangtze it was manifestly difficult to deal with such numerous and varied exactione.

PAOTINGFU

STUDENTS AND POLICE CLASH

Official circles, when commenting on the mattor. cxpressed the opinion that China appears to be Success at Geneva, said Mr.

He pointed out that the difficul bent on playing a double game as Baldwin, depended on a general

Strong currents are prevailing there ars indications that China ties had not affected British trade agreement, and the Hoover propos-

at the spot where the submarine will attempt to reach an amicable only, and added that His Majesty's als were put forward as a contribu tion to an agreed general pro-

went down, and these are at presettlement with Japan by a threat representatives in China at all.

of a Sino-Soviet rapproachement if times took such stops us were pos sible to ensure that British trade gramine. The British proposals

sent impeding rescue operations,

The Promethee, which has a dis-Japan refuses the Chinese terms. should also be regarded as a can-

It is intimated that Japan might was not unfairly treated, and tribution to a general agreement.

placement of 1,370 tons, was launch- Britian further agreed with Pre- to secure by other means a large at Cherbourg in October, 1030. he prepared to negotiate with these efforts would he continued.

She is one of a group of twenty five Chian provided that China will sident Hoover that the three prodiminution in naval armaments. blems of military, naval and air The present Treaty limits of size of the Redoubtable class, all of recognise the independence of the MARTIAL LAW AT disarmament ware interconnected. and gan calibre were far too high, which have proved most successful Manchukuo, but not otherwise.

in their trials. and the British Government con- sidered that very large reductions Britalu, like the United States. amounting to about one-third both found her strongest arm in the in the case of capital ships and Navy, and although naval con cruisers, could be made in future

ter. LAUSANNE, July 7.

Hopes that an after-dinner tributions to disarmament on the construction.

As regards capital ships, the A formula for settling the war talk following Mr. Neville Chaun-rgest scale bad already been made guift question is reported to have borlain's dinner to M. Herriot and in advance of the present confer- American proposal would leave the

ence, the British Government now been agreed to by the French and M. Germain Martin might lead to offered a further contribution as German delegates, and the com-. promise on this point is believed some agreement seem to be streng part of a world settlement.

Dealing with land disarmament, to have been matched by agreement thoned by the fact that immediately Mr. Baldwin said the British Gov- on the other vital outstanding ques- after the dinner Herr von Papen ernment found themselves very tion, wamely, the final "composis and Herr von Neurathi arrived at largely in accord with President tion" payment.

This sum, is said to have been the Hotel Beaurivage for a mid-Hoover's proposals. British troops in Britain, her Colonies and India at just

Mks. night conference with Mr. Ramsay had been reduced under

As compared 3,000,000,000,

MacDonald.

with the year before the war from LATER. All three statesmen were roused 230,000 to 207,000, this being effected from their beds for this conference, by the disbandment of many units. America had proposed the division Early Morning Efforts. of land forces in a police, com. ponent and upon that basis the British land fores had already been LAUSANNES, July 8.- While exports are putting the

Herr Von Papen and Herr Von reduced much below the number finishing touches to the details of the mechanism of the proposed Neurath who left the British do recognized as necessary for the maintenance of internal order, Treaty and annexes, M. Herrict has demanded to see the complete draft

without making allowance for forces needed on the lines of communica- before he enters into the question

tion with the Empire. of figures,

fixed

In accordance with recent cus toms, nightfall brought a setback to the day's promising negotiations The big obstacles mentioned earlier still dofy settlement.

legation at ten minutes past one, said progress was being made to wards a settlement.

As evidence that the British were sparing no efforts to effect a settle-

Britain bad already joined in

[DSUTEE'S AMERICAN SERVICE]

PRIPING, July 8 MARTIAL law was proclaimed at Paotingfu following a clash on

||In Hong Kong|| transpires that the commander the Foreign Office formally denied Thursday morning between radiert

To-Day

FINE TO CLOUDY.

YESTERDAY'S, WEATHER REPORT, FORECAST AND REMARKS, ISSUED BY THE ROYAL OBSERVATORY AT 5.20 P.M., STATED :-

PRESSURE 18 HIGHEST OVER THE PACIFIC TO THE EAST OF JAPAN AND LOW OVEừ China GENERALLY. AN AREA OF RELATIVELY LOW. PRESSURE EXTENDED FROM THE PHILIPPINES TO GUAM

LOCAL FORECAST:-S.W. WINDS, MODERATE; FINE TO CLOUDY.

size of these enormously expensive vessels and the calibre of their gdas untouched if any were con- structed in the future. Every figure involved in these huge dimensions -initial cost, upkeep, personnel ammunition, stares, docks-would be maintained at the highest level. Britain's Fian

of the Promethee, Lieut. Dumesnil, the report this afternoon. Ho char-studente of the Second Normal was on the deck of the vessel with acterised the entire statement as School and the Police in which mix six seamen when the disaster ocutterly without foundation, includ-students wore killed and six in curred.

ing the fact that the Soviet had jured. Police losses were four informed the Chinese delegate at killed and 19 injured. Moscow, Wang Tsong Shi, that negotiations between the two coun- tries would be resumed p' the Autuma.

All seven were thrown into the sea when the vessel sank, and they kept swimming for an hour before being rescued. They were later picked up by a fishing boat.

The remaining sixty-three, who, it is feared, are trapped in the sub- marine, are still missing.

AMERICAN POLITICS

THE possibility

RUSSIANS REPULSE "RED SPEARS"

GRIM FIGHT TO SAVE CITY

THROUGH REUTER'S AGENCY.]

HARDIN, July 8. GRIM stand by 160 Russian defenders who for 12 hours

The fracas was a climax to tho two weeks' siege by the Police which was instituted due to a refusal by the students to leave.

The trouble started over the ap pointment of a new Principal" to whom the students objected.

Communist influence is suspected.

RESIGNATION OF SIR W. HORNELL

FROM BOXER FUND TRUSTEESHIP

BORAH MAY CONTEST PRESIDENCY

(REUTER'S AMERICAN SERVICE.] Blama Put on France.. ment as quickly as possible, Mr. rejecting chemical and bacterio-

NEW YORK, July. 7.“ A German semi-official statement Noville Chamberlain and Sir John logical, warfare; and, in regard to

(THROUGH RAUTER'S AGENCY.]. that Benator" issued tonight blames French "in-Simon immediately left in a car and guns, had proposed the aboli

LONDON, July 6 William E; Borah may run for tractability for disappointment of to meet the French delegation at tion of all mobile guns above 155

the Presidency as an out-and-ont

Hornell, Vice-Chancellor of the the German hopes of treating the the Palace Hotel, to refer the draft.. calibre.

Tank Problem. reparations question in the wider of the clause dealing with the poll-

Prohibition candidate against Pre repulsed continuous attacks by 4,000 resignation of Bir Wilkam framework of European reconstructical issue to M.. Herriot and M.

Regarding tanks, the Government

sident Hoover (Republican) and anti-Manchukuos, suggests some Hong Kong University, from the Mr. Franklin D. Roosevelt (De- thing of the glory of war, and Board of Trustees of the Boxer tion and the estoration of mutual Germain Nartin.

Ca va bien said M. Herriott agreed with Mr. Hoover in desiring confidence by the removal of the

mocrat) has caused considerable stands out above the guerilla war Indemnity Fund was the subject fluttering in the political dove fare which has so featured the dis- for discussion in the House of Com discriminatory clauses of the Peace when Mr. Neville Chamberlain and that specifically offensive weapons

Sir John Simon left the French Le prohibited, and had advocated The United Kingdom proposal, cotes

turbances in Manchuria of late. mons to day, when Mr. G. la M Treaty.

"Armed with but one cannon and Mander (Lib, Wolverhampton): en the abolition of tanke over twenty while securing no less a reduction This development follows the The statement adds that "it is delegation at 2.48 a.m. therefore necessary to find a solu- He announced that it would be tons, which type wore capecially in total tonnage, evaded these con- nomination by the National Pro- three machine guns, in addition to quired of Captain Anthony Eden tion on the narrow basis of repara-premature to speak about the agree. adaptable for offensive employment. sequences by reducing the size of hibition Party, a minor "dry" or rifles, the gallant Russian defen- (Under-Becretary for Foreign Af tions only, and further discussionsment as there was still some ground Lighter tanks however, could--not-guns and chips, a

gamisation, at the Convention held ders of Hengtaohizo, fought for fairy) the reason for Sir William to be covered and difficulties to be regarded as offensive weapons If the callibre of a gun was re- at Indianapolis of Mr. William D. 12 hours the fury of thousands of Hornell having taken this step will be undertaken thereon.

overcome. ili podzaj

and constituted an essential com-duced to twelve inches, the maxi Upshaw, a Democrate Congressman the Red Spears, but eventually Capt. Edom in reply, said that he He added, however, that the con- pensation for lack of numbers in mum size of ship could be reduced and an ardent Prohibitionist, as they were forced to retreat and understood Sir William had found Hangaohtzo fall into the hands it difficult to absent himself from versatious would be continued to a small voluntarily-enlisted Army. from 33,000 to 28,000 tons, and an candidate.

of the anti-Manchukuos As far as Britain was concerned,immense saving effected under both The Party attempted to persuade Traffic between Imiempo Hong Kong for a fortafight in each eny general prohibition would re-heads, both initially and conse-Senator Borah to accept the no- Hailan was interrupted by the quire an increase in terms of man- quentially,

mination, but he has refused pend power and would thus defeat its

The British Government were ing a decision in regard to the affray and the railway track own ends as a measure of dis ready to apply the same principles strategy to be followed in the forth-stroyed at several points. Armanent

to cruigers, to reduce their maxi coming Presidential campaign by Britain had on land already put mum size, and gun calibre, by in the major "Prohibition organien. into practice a measure of dis- tornational agreement, from the ions, which are to hold their Con armament which more than co-present figure of 10,000 tons and ference in Washington next week. formed to the standards proposed dight inches to 7,000 tona and 6.1 by Mr. Hoover, a fa

inchen. It would then be possible Interesting Fosition. Coming to the naval proposals. to reduce the size of capital. ships Mr. Baldwin said it was essential still further and to fix a maximum that the proposals intended to be of 22,000 tons with 11 inch guns. ⠀ adopted by general agreement

Halve Initial Cost, Ahould make due prevision for vary-

LITER

Fresh Hopes,

Once again the outlook is brigh morrow.

ROUND-THE-WORLD FLIGHT

ENDS IN DISASTER

[REUTER BAMERICAN SERVICE]

New Yong, July 8... MATTERN and Grifin were

forced down near Mind Their plane is a total wrock;

Mattom and Grifin landed at 1 am, yesterday' near Borissoy, the region of Minsk, owing to dam age to the control which led them to chance their direction.

The airmen were only bruised;

J. P. MORGAN INDISPOSED

MAY CANCEL PROPOSED -TRIP TO BRITAIN

[REUTER'S AMERICAN | BERVIÆ]

NEW YORK, July 6: MB. John Pierpont Morgan, the ing circumstances. Having regard This would nearly halve the in: famous international financier, to the widely scattered responsibl-itial cost of any future capital fractured an ankle through stepping ties of the British Navy, it was ship, and greatly reduce the cost in to a hole on bis Long Island not practicable for Britain to cut of maintenance.Thust the whole estate. Ho is now walking on down the number of units beyond scale would come down together and crutches, thus he may have to a certain point. Occasions might there would be a definite return to postpones his ~proposed visit to arise-calling for the presence of«maller dimensiónkow

(Continued on Page 8.) "England this month-

ships simultaneously in parts of the

If this Conference decides to lausch & special Prohibition can didate for the Presidency, it is be lieved that Mr. Borah may accept the candidacy.

1f Senator Borah does come into the field, most interesting poli tical situation is likely to develop as there in little doubt that the Prohibitionists could muster every al million votes thus considerably embarrassing the two principal political parties."

NEW PRESIDENT

OF S.M.R.

NAKAJI KAJIWARA APPOINTED

[TBROUGH "REUTER'S AGENCY.]

Toxro, July 6

and

der

Trustees were primarily concerned month and, as the Board of with financial, rather than educa tical business, he did not feel the expenditure of time and money. in: volved-in-.._requent visits, to® Nans king was justified. p

JAPANESE FISHERMEN RELEASED INS

STHROUGH. REUTER'S" "AGENTOTA |

THE fishermen who were cap

at Kamchatka'', hárdő be leased, according to a radio most. reaching to the Ministry of Agi ture

THE Government has decided to The Soviet Ambassador previo appoint Nakaji Kajiwara toly visited the Foreign On succeed Count Uchida as president, lesening of the report and the of the Bouth Manchuria Railway, been put in custody.

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