NORTH CHINA WAR

BRITISH GOVERNMENT IS CONSCIOUS OF ANXIETY OF SITUATION

Lull In Hostilities

DR. KOO INTERVIEWED

Paris, July 15,

"Unless the powers can effect' a mediation there will be a major

"France, in

Reuter's correspondent.

PEIPING PREPARES

FOR SEIGE

Pelping, July 15.

Martial law la being strictly conflict between China and enforced 1n Peiping day and Japan," declared Dr. Wellington j night. The military and police Koo. Chinese Ambassador. toare ceaseless in their vigilance, interview with and are co-operating smoothly in

the performance of their duties,

The strictest discipline is being Arid all gates and throughout the City are being barricaded and by Band-bags, volun- tarily supplied by the grain-mer-

chants.— Chinese Evening Press.

Dr. Koo added: "Japan has taken advantage of maintained the European preoccupations in important positions Spain and the difficulties in the U.S.BR. after the army executions protected to strike at North China in con- tinuation of her policy of ex- pansion of her mainland. The situation has been provoked by Japan. I can officially deny the, truth of the Japanese report that an agreement has been signed by the Chinese authorities nor is there between Chinese central and local authorities and the troops."- Reuter.

"

CHINESE LAND AND AIR UNITS READY

Shanghal, July 15, The Chinese Government spokes- man at Nanking has announced that land and air units of the National forces are ready to rush ald to the Twenty-ninth Route Army Immediately the Japanese go into action. The announcement followed a reliable report that the "Japanese military authorities at Fengtal had issued a proclamation stating that the purpose of the "despatch of Japanese troops North China is to expel the 29th Route Army.

to

Competent Chinese, foreign and political observers in Pelping be- lieve that the Japanese military is only awaiting the completion of reinforcements before attempting the drive on the Twenty-ninth Army from Hopel province...

Reuter's Bulletin Service.

J

CHINA'S DEMANDS

Shanghai, July 15. In what is probably an officially inspired article, the paper "Ta- kung Fao" states that the follow ing demands will be made by China for settlement of the con- fict with Japan in the northern provinces:

1. Re-establishment .or the status which existed prior to July

8;

QUESTION IN HOUSE OF COMMONS

London, July 14.

In reply to a request for a state- ment in the House of Commona on the situation in China the Foreign Secretary, Mr. Anthony Eden said that there Was some sporadic aring in and around Peiping yes- terday but the latest information "La that the altuation there appears to have quietened though naturally there were under currents of nervous apprehension. The Japan- ese Embassy in Pelping announced yesterday certain terms which they referred to as an agreement which had been släned and had been. communicated to the Japanese au- thorities. The full text was not disclosed but it appears to be on the lines reported in the press.

HONG KONG DAILY PRESS. FRIDAY, JULY 16, 1937.

Prince Konoye

JAPANESE TROOPS IN SHANGHAI

Shanghai, "July 14. There are now. six Japanese warships in port, and 2,600 troops have been landed. This morning the troops separated into four parties, and started sham-fighting in the North Szechuen Road area. The leading oficials of the Nan- king Central Government are assembling in Nanking to consi- der the situation, which is believ. ed increasingly grave.

It is reported that the Govern- ment is determined not to yield one inch of territory to the Japariese invaders, and that the armed forces of the whole coun- try are united and ready to stout- ly resist aggression.

NINETEENTH ROUTE ARMY Latest news from Manila is to the effect that General Tsai Ting- kai,

former Commander of the

famous Nineteenth Route Army, has been invited to return China.

to

will be asked to enroll his dis- banded officers and men, and re- organize the Nineteenth Route Army for active service in North China.

It is believed that General Tsai

"Meanwhile I have been in touch with the Japanese and Chinese

BIG SWORD BRIGADES governments and made it clear to

It is stated that the Comman- them that the British Governmentders of the Chinese troops in are conscious of the anxieties of North China are restoring the the situation which

These "Big Sword" men are used in hand-to-hand fighting, when storming positions of im- and

portance.-...

watching closely and have exspead such terror in the ranks of they are "Big Sword" Brigades, which pressed to them our concern lest the Japanese troops during the hasty action by either side should fighting in North China and lead to a clash which should be Klangwan, Shanghai in 1932. avoided if the situation is handled with due caution on both sides. I have also been in consultation with the Governments of the United States and France as to the situation generally. We pro- pose to continue such consulta- tions. Meantime, the Government will lose no opportunity which" offers of making any contribution in their power towards a peaceful solution of these difficulties," said

Mr. Eden

2. Withdrawal of the Japanese British Wireless. reinforcements;

3. Indemnities for the Chinese

merchants and other citizens;

LULL IN HOSTILITIES

Chinese Evening Press.

JAPAN NAVY ESTIMATES

London. July 15. According to Japanese sources the Navy, draft estimates in Japan next year have Increased 25 per- cent from the current year's timates.--

Peiping: The Jull In North Ruatter's Bulletin Service,

4. The unconditional restora-China continues. There appears

tion of peace.

The paper goes on to say that lasting peace is only possible when the Japanese garrisons is North China have been considerably re- duced-

Franwezan Few Service.

V

TROOP MOVEMENTS Peiping: A further company of Japanese troops left for Fengtai by rosa this morning, escorting 36

truckloads of ammunition and pro- vision with three armoured cars. Additional Japanese troop trains from Shanhaikuan brought 400 za Japanese troops and considerabís

supplies after midnight.

Chinesa

TWO THOUSAND

DOLLARS ROBBERY

Eight Men Make Big

Haul From Goldsmiths

KOWLOON

•!!

BRODY OUTRAGE IN

DAYLIGHT

IN SPITE OF CONCERTED POLICE EFFORTS TO CURB WITH THE PREVALENCE OF ROBBERIES AT GOLDSMITHS ESTAB LISHMENTS, WHICH FORMED THE SUBJECT OF QUESTIONS IN THE LEGISLATIVE COUNCIL RECENTLY, YET ANOTHER OUTRAGE OCCURRED YESTERDAY AFTERNOON IN BROAD DAYLIGHT IN THE KOWLOON CITY DISTRICT.

According to a police report, eight man, five of whom were armed..with manser revolvers, entered the Tin Loọng Gold and Silversmith shoop, No. 5, Nga Tsin Wai Road, about £30 p.m. and decamped with a haul of jewellery to the total value of $2,016, "

Wong Kl. 80 years, employed at the victimised shop, told the police investigators that at the time he was behind the shop counter' when two men, both Chinese, came in. Within a few minutes one of the men had produced â revolver, and smashed the plate glass of the abused Work in Hakka dialect,

· showcase window.

At this stage. al other men entered the shop and held up twoj other employees whom they took to the rear of the premises.

TAKEN INTO. STREET

Wong Ki came out from behind

the counter and was taken into the street by one of the marauders

who pointed a gun at him.

The robbers, meanwhile, helped themselves to Jewellery from ten shop for about five minutes made trays and after remaining in the

villages in Kowloon City. off along Sha Po Road towards the

Police were summoned to the scene of the outrage and an exten- sive search was immediately com- menced.

EIGHT MEN SEEN ...

the police by Wong Ki, were seen going in the direction of Lion Rock but the police failed to mabe contact with them.

2

All the robbers were dressed in black pongee silk clothing. Beren of them, it is stated, wore topees bamboo hat. They were believed and the eighth a wide-brimmed

to be either Hakkas or Hoklos,

EXTENSIVE SEARCH search in all highways and, in ac- Police conducted a thorough

cordance with usual procedure following the report of an armed robbery. all passengers on huses were subjected to search.

The stolen property included 63 gold finger rings, valued at $750, 35 pairs of gold ear-rings valued

baggles, valued at $100, and seve at $300, four pairs of gold rattan

ral gold bangles.

All European and Chinese de- tectives available are being called to action. In efforts to trace the robbers.

The search is being conducted in the town as well as Ou the It was ascertained, necording to hillsides in the vicinity of Lion" the report, that eight men, answer- Rock and Taipo Road, it is under-" ing the descriptions supplied to | stood."

FRENCH AIRMAN'S

HEROISM

BRITISH SHIPS IN

SPANISH WATERS

London, July 15.

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In association with the Grand Hotel den Wagons? Peking.

BIGGER FAMILIES WANTED

In the House of Commons, reply SIR W. BEVERIDGE'S

WARNING

A double slump-in employment population-is coming, to

THEY ALL WON PRIZES

Strangest School In Britain

Paris, July 15." The Press praises the heroism of the non-commissioned officer piloting to supplementary questions re- of the French Air Force, who, on garding the capture of the British the National holiday yesterday, steamer by Insurgents off Bantan- rlaked his life by "landing" in the der; Mr. Duff Cooper, First Lord of River Seine in order not to endan- the Admiralty, did not, give the and ger the lives of spectators assem-legal ruling concerning the protec-Sir Williain Beveridge, the director The strangest school in Britain bled for the national celebration. tion of British vessels in Spanish of the London School of Economics, is the Mae Queen School on the

When flying over Parle the territorial waters but he stated the

Addressing the annual conlittle island of Fasdale, off the machine got into trouble. The position of British vessels inference of the Institute of Munici- | Argyll cċast, which is now to have e-pilot could easily have landed on Spanish waters was like Britons pal Treasurers and

Accountants a permanent teacher to teach itam Place de la Coneroda, but fearing on Spanish soil. Britain could not at Bournemouth, he said:

seven pupils, who are cousins and disaster for the crowd there, turn prevent detention but could de-"The first is the slump which bear the same surname of Mac- ed back and went down on the mand reparation Regarding the we may expect after the present Queen, writes a Homo correŞDON- river where the aeroplane sand. capture of British ships the right boom. The general reason for dent.... The pilot escaped with slight in- to demand compensation was not expecting it is the experience of They are the en

They are the children of tire. nearly 100 years of nyclical, fuc-brothers--the name Macqueen tas tuation of trade, industry, and been the only name on the school COST OF 24,000 MEN

employment The special reason register for many years. Balamanca, July 15.- is the stimulant given to industrial Insurgents claim that the Gov-activity by the rearmament pro ernment - offensive to the west of gramme. Madrid has not produced any material gains, although costing the Government 24,000 men.

Reuters Bulletin Service,

to have been no serious incidents Clash Between Rassian And since the clash outside Pelping early, yesterday morning.

They believe

the

Japanese Troops

Shanghai, July 15.

It is reported that about a week ago, a clash took place between Russian and Japanese troops in one of the frontier districts.

The Nanking. Central Govern- ment is alert and watchful, and prepared for all eventualities.

Immediately upon his arrival in

juries.

General Faquanti, Chief of the General Staff of the Air Force, visited the pilot in hospital and decorated him with the Military Medal- Transocean News Service.

materially changed.

Re

TRADE PACT

It is understood that negotia- tions for a peaceful solution of the affair is still going on in Tientsin. Refforcements of Japanese troops, continue to find their way to the North China zone, and the heavily concentrating toward Nan- Japanese troops from Fengtai are

which suggests that the elimina-Tientsin, the new Japanese Army yuan, according to reliable reports

REORGANISATION tion of the twelve thousand Chin- Commander called & conference

OF PRUSSIAN

objective of the Japanese military stated that hurried preparations ese troops there will be the first

ART ACADEMY of his officers, and it is further operations...

Berlin, July 15.

Washington, July 15. are proceeding in Japan for, war. press reports state that seven troop foreign observers consider the pre-mobilized on

Most competent Chinese and

The Prussian Academy of Art Mr. W. Nash, New Zealand Fin- The whole country is being will be reorganised trains have arrived at Shanhai- sent lull in

on Na-ance Minister interviewed Mr. the hostilities is de-

a scale that has tiorial Socialist Unes kuan. The "Yishihpao" says that ceptive despite the easing of the cruiting and mobilizing of troops to-day, which states

accord Cordell Hall after which the US never happened before. The re- ing to announcement "Chen Chuch-bseng states that the local tension and re-opening of ne- hag extended to Korea, and North the Prussian Premier.

made Secretary of State said that good Chinese authorities are determined gotiations.

that progress had been made in the General Trade Pact between the United not to sign agreements similar to Japanese authorities are awaiting of Korean medical students and Reich Minister of Education, Rust, at present there was not sumclent East territories of China. Hundreds Goering, at the suggestion of the States and New Zealand but that the Tangku and Houmets pacts-the completion of their reinforce- Reuter

ments before taking major action rolled for active service.

motor car drivers are being en- to draw up new statutes, based time to reach definite agreements. to drive the 29th army from Hopel.

on Nationalist principles, with a Reuter's Bulletin Service. -Reuter.

It is also reported that the view to reshaping and rejuvenat Japanese militarists" have coming the Academy. CHINESE PANIO

mandeered fourteen steamers for It is added that General Goer Tientsin: The Chinese populare transport purposes, and that waring will become the Profector of panicked yesterday evening when between Russia and Japan will the Academy 800 Japanese Infantry-men with a break out within a week---

Tranieran News Service London, July 15,

hundred cavalry and motor cycle, Thinese Evening Pres. Unperturbed by latest develop section marched through the main ments the Stock Exchange con- streets of the Chinese city jen tinues to take the Sino-Japanese route to Fengtal. Belleving that impasse quietly. There has been the Japanese were occupying the no selling of Sino-Japanese issues city the crowds bolted and shops by large holders such as insurance were shuttered up, while the trama companies Banks on the contrary ceased rumming An incident was had fair businger buying on in averted when the Chinese militia terest at the recently reduced men who held up the marchers levels which gave evidence of were instructed by their comman making for a reasonably steady der to allow passage.- undertone. The market at present Reuter. steady but inactive. The bulk of the city opinion refuses to belleve that war is evitable hoping that some saving face solution may be found. Even the announcement by the Nanking spokesman about assistance for the 29th Route Army is regarded as a bullish long term as indicating the strengthening of

STOCK EXCHANGE UNPERTURBED

DR. SUN FO

Owing to the gravity of the

la Canton, July 15, situation in North China, Dr. Sun

“SUITABLE AS BASIS FOR DISCUSSION'

Berlin, July 15 “Buitable as a basis for die

To, son of the late Dr. Sun Yat- cussion" in these words may be sen, and President of the Nan-resumed the first impressions ob- king Legislative Toan, has been tamed here from the study of the obliged to cancel his departure for British proposals in the non Canton yesterday as planned.

Yesterday Dr. San Po telegraph- Political circles

Intervention question.

stress ed to his followers in Canton to examination of the British proposal that that Messrs. Foo Ping-proposals is still proceeding and although it is not yet concluded. the proposals, at first sight, appear to furnish an entirely suitable basis for further discussion since the ompromise which these proposals nt takes certain aspects of

Chinese unity. The city's optimism sheung, Tang Bhiu-yam Leung is based on the belles, that neither Hon-cho, Tse Po-chis. Yip Ha China nor Japan is, at present in sing and others would leave for position to indulge in hostilities the Bouth on the date as already for economic reasons

announe Reuter

Chinese Evening Press.

LINER BADLY HOLED

Montevideo, July 15, Two Brish steamers collided at Rio De La Plata near Montevideo last night. One was a 10,000 ton liner Southern Prince and the other a cargo steamer. The liner

the other vessel, was badly holed but the passengers

Ruetter & Bulletin Service. and crew were safely taken off by

sideration the German position into con

It is added that certain explana tions will still be necessary and that in any case the practicabilty of the British plan will, to a large extent, depend on the attitude of the warning parties in Spain Transocean News Service,

|

2

"When this programme gets past its intensive phase, unemployment, through displacement of partien lar classes of men, is likely to be added to cyclical depression.

nowŊ cover

When I visited the island the school was closing for the summer. holidays. The pupils are of vary- in ages, all have to be taught re- parately, so all of them were prize- winners."

There are no children on the "On the side of unemployment i island, which was once the centre insurance, provision is being made | of a thriving slate industry. Of a for this, by building a reserve population numbering 70, most are £45,000,000 in the old-age pensionem, (li Unemployment Find But this, A young American boy who went. besides being accidental, is far to Easdale to spend a holiday withi from adequate. Insurance covers his parents found it boring play only part of unemployment, and ing by himself, so he decided to does nothing to prevent unemploy become a temporary pupil at the ment and does nothing to prevent school a few days ago, and liked unemployment in the slump. it so well that he was quite sorry

when the school; broke up.

After the holidays the pupils will have Ms Johanna, Mackensie tor their permanent teacher,

· "Damping" down cyclical Auchan tion directly involves more know- ledge of its causes than we possess. But is the Government doing any thing to promote discovery of these causes? Is it doing any- thing to: plan the distribution in time of public work, central and

local, so as to counteract the trade NEW SOVIET LOAN cycle? Has it a programme of peace works or plans to follow the rearmament programme?

DRASTIC DECLINE

Moscow, July 15.

aro

The campaign for the signing "The second subject calling for 790,000,000 roubles in Ukraine. In of & new Boviet loan yielded only forethought is the coming decline view of the population of Ukraine of our population. Some decline numbering more than 30,000,000, now is certain; if present ten Moscow circks dencies continue, the ultimate de cline will be Hrastic. If birth-

with the rates, and death-rates continue, as

"Nationalet they are, the population of Eng Transocean Frus Ser

meagre outcome land and Wales one hundred years from now will be 20,000,000 as It was in 1861

adequate machinery forethought government au Government, this

"If we do not want the popula- tion of Britain to disappear com pletely, the proportion of familles with three children and more must be increased F

mic general The condition of securing fore prehensively all thought in public affairs is to have bleme

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