NON-INTERVENTION

COMMITTEE

ASSURANCES GIVEN TO RUSSIA

Rights Of Committee Not Infringed

The Russian note to the Acting Chairman of the Non-Inter- vention Committee, Captain Evan Wallace, at the request of the Soviet Ambassador, M. Maiski, in being circulated to members of -the-Committee. Meanwhile-the-chairman has replied to the Ambassador and a copy of his letter is also being circulated to the 'Committee members recalling the circumstances in which the question of measures for ensuring the safety of vessels of the four patrolling powers is now being considered by those powers.

The facts are that those discussions were initiated at what was believed to be the unanimous desire of the Chairman's Sub- committee. During that Committee's meeting on May 31 when the Deutschland incident had been raised, the Chairman on three occasions, as recorded in the committee's minute, suggested it was desirable that the question of requisita guarantees should be discussed between the patrolling powers. No one dissented from that proposal.

The Russian Ambassador Was morcover assured that those dis- cussion. would be strictly con- #fined to essential guarantees con- sidered necessary for the work en- trusted to the four powers by the Committee and which they had undertaken to perform on their own responsibility and at their own expense.

#

This is regarded as the most hopeful procedure for restoring full collaboration, to the Commit- tee and control work. When it is restored, suggestions for improving or modifying the scheme can be examined in Committee.

No infringement of the rights of the Committee are in the British Government's view involved, in the present procedure.— British Wireless,

PROPOSALS ACCEPTED

London, June 10. Germany, Italy and France have accepted the British proposals re- garding the procedure for obtain ing agreement on the assurances necessary for protection of patrol warships in Spanish waters.

It is expected that the final draft of the proposals to be sub- mitted to the two parties in Spain will be approved by the four, con- trolling powers either to-day or to-morrow. In the meanwhile Captain Euan Wallace Acting Chairman of the Nan-Intervention Committee, in reply to the Russian note protesting against the four- power

discussions informed M. Maisky that in the British Govern- ment's view no infringement of the rights of the Non-Intervention Committee is involved in the pro- cedure being followed. Reuter

RUSSIA'S ATTITUDE

..

11 London, June 9. On the eve of the conference at which it is hoped Britain, France, Italy and Germany will reach an agreement on restoration of the non-intervention patrol in Spain. Russia has issued statement through her Ambassador in Lon- dog. M. Malaky, protesting against the four-Power negotia- tions and urging a discussion by all interested Powers.--- Neuter

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BRITISH

M

PROPOSALS

ACCEPTED

Guarantees For Naval Patrol Vessels

London, June 9. The French Government's reply, in writing, to the British proposals, regarding guarantees on a basis of which German and Italian ships might resume, patrol work under the Non-Intervention Scheme, has now been received in London and confirms the acceptance of these proposals alreadý „given verbally.

It is felt that. there is now a substantial agreement in principle between all the powers concerned and an optimistic view is taken of the favourable outcome of the more detailed

HONG KONG DAILY PRESS,

FRIDAY, JUNE

11. 1937.

FRANCE AGAIN

MOSCOW PURGE

HINDENBURG

PUZZLE

DISASTER

IN THE NEWS

Great Financial Uncertainties

London, June 10. France's econonic and financial situation bida fair again to be come front page news following Indications that the coffers of the French Treasury are seriously de- pleted. The recent sharp fall of Rentes together with weakness of forward francs, discounts on which to-day widened to 100 centimes one month and 300 centimes for three months, compared with 87 and 284 respectively yesterday, amply reflect the prevailing ner- vousness.

"The point which is arousing most considerable discussion is how the French Government proposes to borrow in order to meet her. maturing obligations. It is point-

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Rumours Of Military Enquiry Committee's

Revolt

Findings

New York, June 10. Despite careful enquiries, the cause of the Hindenburg disaster remains unestabilahied...

The Committee of Enquiry has submitted a report to the German Air Ministry."

Moscow, June 10. Foreign observers are puzzled by the full implications of M. Stalin's continued purge. Interesting 're- velations are expected in the next few days though observers do not rule out the prospect of a military. revolt regarding which rumours The report states that the Com- have appeared in the foreign mittee found no considerable loss press. What cases of disaffection of gas was evident whereby the there have been have not concern-airship could crash, causing a fire. ed the rank and Ale of the Army but only the commanders who have been removed. All the key garri sons are commanded by officers re- cently appointed who are undoubt edly loyal to M. Stalin...

Reuter

LATEST PHASE

No breakage of propellors and no sparks from the engines whereby the airship could have alighted. No damage to electric equipment, and that the safety regulations were carried, out fully by the crew.

Reuter.

U.S. STRIKE FRONT WIDENED

Riga, June 10. ed out that present conditions rule. The latest phase of M. Stalin's out the possibility of further pub-purge shows according to observers lic loans, and therefore it would here that the political element in appear that M. Blum may be forced Russia is winning apparently an

New York, June 9. to abandon the Popular Front important victory over the non- America's strike front has slogan "no increase of taxation." Communist tendencies among the widened perceptibly as Some belleve, however, that even

a result commanders of the Red Army. of the employees of the Con- increased taxation will not bridge The new appointments are secured, sumers Power Corporation of the huge gap between revenue and temporarily at least, by staunch Michigan starting their second expenditure and regard inflation- Stalinite adherents occupying com- strike in the course of three weeks ary measures such as Issue of bills mand of the most important mill-in the highly industrialised Sa- for financing, public works as un- tary districts in European Russia, ginaw Valley. avoidable, which in turn if main- namely Moscow, Leningrad, Kieff The effect of the strike is to set tained would ultimately lead to and Minsk.

idle 100,000 industry workers and further devaluation.

Frum a purely military stand- to inconvenience 400,000 residents. Reuter.

point the new commanders belong Ignoring the appeals of their to a considerably lower plane than leaders, the strikers have shut the degraded predecessors and the down all the valley's major indus- Red Army as a fighting machinetries, and this, combined with certainly has not gained by the numerous other strikes, as well as change.

RAILWAY FIRE IN GERMANY

-Berlin, June 10, Five persons are dead and eleven. missing in a fire at a railway station outside Berlin which is one of the principal Junction lines to the capital

The fire caused the destruction of 145 railway trucks. Sevenly six tons of goods were also destroyed as well as a large goods shed.- Reuter's Bulletin Service,

discussions which GENEVA LABOUR

are "expected to open in London shortly between the French, Geg- man and Italian Ambassadors and the Foreign Office- British Wireless,

NEW MOROCCAN TROOPS

י.

Salamanca, June . An official denfal was issued from the Insurgent headquarters to-day regarding the report of recent re- inforcement from Morocco, which alleged that these new troops con- sisted entirely of Moors.

The dental stated that of the 25.000 troops arriving in Spain last week, only 8,000 were Moors, the remainder being soldiers, of the Foreign Legion, whose preliminary. training had been completed.- Reuter.

BRITAIN'S TRADE

RECOVERY

DISCUSSION

British Minister Seeks Guidance

London, June 10.

Ernest Brown, who is chief Britisti The Minister of Labour, Mr.

Labour Conference at Geneva tak- representative at the International

ing part in discussion of the Direc- tor's report, said he was impressed by the relationship between the fortunes of

the manufactoring world and those of, primary pro- ducers

The new fact of the post war world which overshadowed all others in industry was, he said, the amazing scale of productive manufacturing capacity. If a new slump was to be averted they must And the means of matching the wonderful new capacity of the machine with the new and increas ing demands for its products,

London June 10. Referring in a speech last night to trade recovery, which he sald Was proceeding steadily. Sir

The International Labour Office Kingsley Wood, Minister of Health,

had now established a permanent GERMANY TO STAND FIRM sald it was at present inainly

Berlin, June 9. based on "expansion of the home make a beginning by examining agricultural committes. It might Herr Joachim von Ribbentrop, market, but export, trade was also

the nature of the agricultural in- the German Ambassador to Lon- benefiting from the increased pur- don, returned here from Berch-chasing power of many of Britain's productive capacity of the manu- dustry in its relation to the new

tesgaden, where he had been oversea customers. The extent of facturing world. negotiating with the Chancellor, the

He hoped it improvement in trade in would be able to give them some Herr Hitler, and left for London the Jast twelve months Was guidance 35

to how the 1,200 an increase of 600,000 insured millions In political circles it is stated workers in employment in Bri- could be given

of primary producers that Herr von Ribbentrop will tain. The development was now with advantage

larger Income have an important conversation spreading to the Industries in ducers and consumers, now the

both to pro with the British Foreign Secretary the areas which had suffered most manufacturing world as a whole Mr. Eden. to-MOITOW morning in trade depression →→→ when the question of Germany's British Wireless

and how. the manufacturing producers should be related to freedom of action, in case of an unprovoked attack on Her control

their own primary producers, whether by: large consump- vessels in Spanish waters will be

of foodstuffs and raw discussed.

materials or by greater reward for producers or by a combination of

this afternoon. ·

Germany, it is declared, would not abandon her demande in, this

GEN. WU TEH CHEN

tion TO GO NORTH, ⠀⠀

Canton, June 10. It is reported that General Wu | both,

3

"RATS RAID FARM

matter, and in case of a surprise Teh-chen, Civil Governor of British Wireless. action of hostile character," murt refuse to resort to consultations.

Kwangtung Province, who' has After the conversation between been busily occupied with reforms Herr von Ribbentrop and Mr. Eden, in the administration of the pro- the Ambassadors of the interested vince, is expected to leave for Loo powers, namely Germany, France Shan next week to report and and Italy, will meet Mr. Eden to confer with Generalissimo Chiang bring the Anglo-German discus- Kal-shek, President of the Nanking slona to a common demominator, Executive Yifan and Chairman of in case an agreement in principle the Military Affairs Commission. has been reached

on

Durban, June 9. News of a disastrous raid by rats up-country farms has been received here. It is said that yesterday Ghe- The farmers have tried every In Berlin, political circles it is ral Wu Teh-chen sent an agent thing to stop the plague of rodents not thought likely that Insur- to Hong Kong to book his passage which is causing enormous damage mountable difficulties from France for Shaoghal ? to the crops, th will be forthcoming, although it It is understood that bis absence Tins of sardines left out in the is believed that it will not be pos- will be brief, and that when he fields helped to exterminate some able to dispose of the entire com- returns from Too Shan, he will of the rate which died from biex of questions and reach an commence his tour of Inspection of ptomaine, poisoning after eating sursement already to-morro

all the districts of Kwangtung the contenta Transocean News Survior."

Province Chinees Evening Prea, Reuter,

the fact that voluntary forces áre M. Stalin's object for the being mobilised to augment the moment appears to be more police in one phase of the wide- concerned in making the Army spread steel strike, has led to the Communist-minded again than demand of a general labour in- with its purely military eficiency.vestigation by the Senate.- There is no evidence suggesting Reuter that the dethroned generals were anti-Stalinist, though that is pos sible. It is believed here that their offences were sins of omis- sion rather than commission and that in the training army' they were apparently neglecting "poli- tics. They are striving to make the Red Army a great patriotic Russian Army, whereas M. Stalin requires an Army as a patriotic in strument with the Party.—

Reuter.

VON NEURATH

IN SOFIA

"No Pact Of Any Sort"

EARL BALDWIN

• OF BEWDLEY

London, June 9.. Earl Baldwin of Bewdley, spon- sored by Lord Londonderry and Lord Derby, took his seat in the House of Lords to-day with the traditional picturesque ceremony.

All parts of the House were filled for the brief ceremony, and the ex-Fremler looked a triffe uncom- fortable in «cilmson robes as he walked in procession" behind', the Garter King at Arms, the Earl Marshal and the Lord Great Chamberlairi

Having taken the oath, Earl Baldwin was led to one of the front benches. In accordance with

custom he donned a cocked hat: rose and removed the hat, bowed to the Lord Chancellor and then sat down. This ceremony was re- Belgrade, June 9.

peated three times. Germany's Foreign Minister,

Sir Herbert Samuel later took Baron von Neurath, concluded his his seat as Viscount Samuel visit to Yugo-Slavia this afternoon

Reuter. when he flew to Sofa.

The Yugo-Slav press again-ém- phasises that no pact of any sort has been signed between Germany and Yugo-Slavis; but it is under- stood that Germany has secured certain economic concessions,

"PRO-TROTSKYITES” ARRESTED

Moscow, June 9.

mostly industrial officials, working Another group of Soviet citizens.

In the Far East portion of the USSR has been arrested for pro- Trotsky activities.

The government organ declares that Yugo-Slavia is not allied to Germany, neither is it in any alliance against Germany.

Sofa:-Baron von Neurathi who was received by Prime Minister taging the Soviet's Far East in- arrived here from Belgrade to-day. "The men are accused of sabc- Kiosselvanoff, a representative of dustries under instructions from King Boris, diplomats and other the Japanese and German In- distinguished personalities.-- telligence services.—— Reuter.

Reuter.

Japan And The Opium Advisory Committee

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NEW SHIPS ON PACIFIC RUN

To Meet Matson Line Threat

London, June 10.

JAPAN'S GRIP IN EAST HOPEI

Change In Army Control

Shanghai, June. 10.. Japanese interests in East Hopel"

The Imperial Conference agreed to recommend to the British, Aus- tralian, Canadian and New Zea in future will be handled by the land Governments to grant a loan Japanese command in North China, estimated at £3,000,000 to build instead of the Kwantung Army. two 20,000-tan liners to assure all This decision, it is' reported by the the ocean service between Canada, Chinese press, was reached at a Australia and New Zealand where conference at Changchun, on June the American-subsidized' Matson 6, between General Uyeda," "com-: Line has recently been ousting | mander-in-chief of the Kwantung British shipping, says Mr. Hector Army, and Lieut-General Tachito, Bywater, the "Dally Telegraph's " | G.O.C. Japanese troops in North naval expert.

China.

It is also contemplated to 'mo- denize all the deets of the Union Steamship Company's New Zea- land, Canadian and Australian Lines during the next five years. Beuter.

24,000-TON LINER LAUNCHED

London. June 10. A 24,000-ton liner to be placed on the run between Britain, Bom- bay and Australia was launched at Barrow-in-Furness to-day. The liner, named Btraheven, has a“ speed of" twenty one knots and ac- cathmodation for a

thousand passengers. She will carry a crew of six hundred

Reyter's Bulletin Service.

TRANS-ATLANTIC AIR ROUTES

New Company Formed In Paris

Paris, June 10.

The Kwantung Army's special service officer at Tungchów will consequently be relleved by an omcer from Tientsin..

General Tachiro, who returned" to Tientsin by air on Tuesday, is; said to have received Yin Ju-keng same day and to have informed the head of the East Hopel regime of Japan's decisions and given him "new instructions.”

Meanwhile, Japanese industrial interests are reported to have ob- tained permits to erect various plants in East Hopel, including a rayon factory at Shanhaikwan and a tobacco factory at Chinwangtao. -Reuter.

KING'S MESSAGE OF THANKS

London, June. 8. When the principal delegates to the Imperial Conference met this evening, Mr. Chamberlain, who was in the chair, read the King's gracious reply to the message of loyal greetings which had been sent from the Conference on the occasion of the celebration of. His

Geneva, June 8. Japan to take immediate effective Japan's representative on the steps to put an end to the clandes- Opium Advisory Committee, Mr. tine manufacture of, and the Tokoyama, is said to have cabled trame in drugs by Japanese sub a summary of the Committee's jects in China, appeal to the Gov- discussions to his Government, Fernmenta of Japan and China to which replied that the information establish close co-operation when- before the Committee exaggerated ever necessary for the purpose of the quantity of heroin which was combating" clandestine manufac being manufactured clandestinely. ture and fillest drug traffic, recom-

The Japanese Government is mends that the League Council A new company for trans-Atlan- endeavouring to find other means communicate officially with the tic air routes over the northern of livelihood for Koreans engaged Chinese, Japanese and other in route has been formed here under Majesty's birthday.

terested governments the minutes the name "Compagnie Air France The report of the Committee on in heroin traffic, and was co-

of the Advisory Committee's dis- Transatlantique," and the mother-civil air communications, of which operating to put an end to the

cussion of the situation in Far companies are the Compagnie Siz. Archdale Pat situation.

East. It also requsts further ob- General Transatlantique" and the chairman, was The Government of Manchukuoservations and asks. particularly "Air France,"

ferred to proposed to introduce a new law. that the Japanese Government and The company will be absolutely further providing the same penalties for all other interested governments Independent, although it will points, narcotics as for oplum, the Com- oficial information with regard to mother companies. The main ob submitted tramcking in heroin and other shall provide the Committee with maintain close contacts with the mittee on mittee was informed.

poppy cultivation, clandestine drus jects of the CAFT will be to tralla chair The Committee adopted a draft manufacture and the use of opium develop air transport via the north The meeting resolution, which, after expressing and drugs in Manchukuo---

Atlantic

to-mo relancefISTA the government of Reuter

Trassocean News Service.

British Wireles

Australi

certain

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