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HONG KONG DAILY PRESS MONDAY, AUGUST 16, 1937.

CITY OF GLOOM

Shanghai, Aug. 14,

The weather is playing in favour- of the Chinese troops, as a typnoon, the force of which Shang- hat is now feeling has seriously delayed the arrival of Japanese transports which are supposed to be steaming at full speed to Shanghai.

་་

As the wind whistled through the city, three huge fires raging in the Chinese and Japanese" areas whole spread rapidly, giving the misty sky a brick-coloured glow.

REFUGEES HUDDLE IN ALLEYWAYS

The foreign communities have been cast into deep gloom and are horrified by the loss of Chinese and foreign life.

The streets of the metropolis, usually teeming with life, are now almost deserted, and all shops. theatres, cabarets, night clubs and

restaurants are closed.

The Chinese refugees are hud- dling in alleyways, many of them

HEGEMONY OF ASIA

Japan's Cherished Dream

Berlin, Aug. 13.

"The present conflict in North China is a further step in Ja pan's programma' of territorial expansion an the mainland of Asia,” asserted Dr. H. H. Kong, Chinese Finance Minister, on the eve of his departure from this city for Prague, Rome and home. "This is but another phase of her cherished dream—a dream particularly dear to the die-hard militarista-for the hegemony of Asia and her supremacy over the Western Powers.

“By tricking General Sung Chch-yuan Into 'the belief that they were sincerely seeking a local settlement, the Japanese militarists were able to launch a surprise attack upon the Chi- mese troops, forcing them to withdraw from Pelping and Tientsin,” Dr. Kung explained.

│- “If a major conflict must come,” he continued, "China can have no alternative but to resist force with force.. Personally. I believe there are reasonable and far-sighted statesmen in Japan who see the folly and ultimate disaster to Ja- pan in the mad policy of her

Unfortunately militarists.

they

VIGOROUS OFFENSIVE

Chinese

Nanking, Aug. 14. reports state that Central Government troops have launched

J vigorous offensive along the Tientsin-Pukow Rallway and are advancing rapidly towards Tientsin.

The Chinese drive is partly

too excited to sleep, while foreign- are dominated by the militaris aimed at "Tientsin. which the

ers generally belleve that even worse is in store but are hoping that dangers such as an air battle

the foreign ever

be areas will averted.

It is learned that yesterday an attempt was made by five Japanese warships, to land marines at Lauho, In the Yangtze estuary northwest of Shanghal, but it was frustrated by Chinese planes- Reuter

BRITISHER WOUNDED

who are fanatical in the belier in in the Japan's sacred mision' world."

Dr. Kung hoped, he said, that saner and more far-sighted views would restrain Japan's militarists in the future.-- Reuter

י וֹן

ACUTE CONDITIONS

Washington, Aug. 13. Mr. Cordell Hull, Secretary of State, and the Japanese Ambas- sador to-day discussed the develop

Náriking Government "wishes to zecapture, and partly at relieving the Japanese pressure on Nankow. where a powerful Japanese force is. hammering at the Chinese posl- tions.

Reuter

SPORADIC FIRING

Shanghai, Aug. 14. The stillness of the night was bioken early to-day by the boom of guns, heralding the resumption

In the Sino-Japanese of fighting. Sporadic firing is now situation. Mr. Hull described continuing. their conversation as an ordinary exchange on the acute conditions in the Far East.

ments Shanghai, Aug. 14. A Britisher, Mr. C. J. Head, ac- countant of the Shanghai and Hongkew Whart Company, Was slightly wounded, two Chinese were killed and many injured by the falling shrapnel, while two downs of Messrs. Jardine, Mathe- son and Co. were set on fire.-- Reuter.

Tio

grave

Meanwhile, the city of Shang- hat is awaiting dawn with some nilsgiving, wondering whether Japanese aeroplanes, from the aircraft carrier which is lying off Woosung, will attack the Chinese positions.

The Secretary of State went on to say that there had been 80-

special discussion of the situation in the International Settlement. at Shanghai

The most exciting encounter Replying to a question as to

Ja- whether or not Great Britain, the yesterday occurred when a

panese destroyer and gunboat United States and France would ask that the International Settle-dropped a barrage to halt a Chi- nese attack on Japanese cotton ment he not used as a base of

claim the mills. The Japanese operations by the disputing coun

Chinese were forced to retire to tries, Mr. Hull said he knew noth-

their original positions. ing of this matter yet. Reuter.

"NOW IT IS WAR"

Shanghai, Aug. 14., Flying at great height a lone Chinese plane - dropped three bombs on the fortress-like Ja- panese headquarters and barracks In North Bzechuen Road

Hongkew Park.

near

All the missiles, however, missed their mark,

Japanese faces everywhere are grim, one Japanese officer saying laconically "Now. It is wär.”—. Router.

1

MOST TERRIBLE MASS TRAGEDY

MALICIOUS INVENTIONS.

RE

Chinese and Japanese lines re- main practically unchanged at the moment from what they were Moscow, Aug. 13. at the outbreak of hostilities, ex- Reports from Japanese and Gercept that the Chinese assert they man sources that Russia is taking have dislodged the blue-jackets some part in the present military of the Landing Party from operations in China, by sending important bridge in the Chapel- military advisers, and so on to the Klangwan sector. Chinese, are

be declared to malicious invenitions, requiring no comments, according to the Tass Agency.-- Reuter.

SUBSTANTIAL CREDITS FOR

CHINA

Under the noses of two Japanese destroyers, the Chinese are com- pleting a boom across the Whang- poo River, 200 yards south of the Shanghat Club. The barricade is intended to prevent the Japanese steaming up the Whangpooto land troope for an attack on the rear of the Chinese positions.

steamers and scares of

Berlin. Aug. 13. Before his departure for Prague | Two

Shanghal, Aug. 14. Shanghal to-night was a city of the deepest gloor, stricken almost dumb with horror by the most terrible mass tragedy in its history. While Its three million inhabi- tants in a terment of excitement were watching ten Chinese planes bombing the Japanese flagship, Consulate-General and Military posts along the battlefront, inis-to-day," China's Finance Minister. cement-laden junks have been sunk directed bomba wreaked terrible havoc among the civilian popula- tion in two crowded sections of the International Settlement.

Two bombs aimed at the Idzumo missed their mark' and landed in Nanking Road between the Palace Hotel and the Cathay Hotel, dillag eight foreigners, including one British and one American woman; and nearly sixty Chinese. Gravely wounded totalled 75.

Two other bombs caused more than a thousand casualties, includ-

Dr. H. H. Kung was the guest at luncheon of Marshal von Blomberg, German commander-in-chief, and other high Army officers and Gov- ernment oficials. The luncheon was given at the War Ministry.

Subsequently it was announced Dr. Kung had signed an agreement with Swiss and Dutch bankers for substantial credits for China.-.

Reuten,

At first it was reported that Miss

ing 458 killed, ät, the intersection Rawlinson was killed but it is be

of Avenue Edward VII and Tibet lieved now that she escaped, with Road. Here several other foreign-critical fojurie.s→→

ers were killed and wounded, the "Reuter. dead including Dr. Frank Rawlin- son and It is believed. Mr. H. Honigsberg

The AFC. installation was set ablaze by another Chinese sir raid lower down the river. Reuter

CHASTLY MASSACRE

Shanghal, Aug. 14. A German resident had his leg blown off and another, an as yet unidentided European, inside the lobby of the Palce Hotel, was hurl- ed from his chair and flattened lifeless against the wall.

TERRIBLE HAVOC

Shanghai, Aug. 14. The terrible havoc taken at this point is revealed in an official an- nouncement by the police of the French Concession issued to-night which states that already 458 kill ed have been accounted for and that are 828 wounded.

The casualties, however, are ex- pected to be even higher. for the agures are still incomplete.

In the street lay a tangled mass of shattered bodies lying in pools tween-

F

in the channel, which is now im- passable.

Thousands of Chinese refugees' are "stranded on the waterfront. Shanghai. unable to sail from owing to the closing of the Yangtse River to navigation. However, it is estimated that 20,000' have left for South China in the past 24 hours.- Reuter.

Was also" in serious danger. The building was shaken to its foundations.

Consulate-General,

The two boribs which landed near the Bettlement Race Course appeared to have been dropped from a Chinese bombing plane as the machine was trying to out-race the anti-aircraft barrage from the

Idzumos

There was a tremendous ex plosion when these bombs lande at the corner near the Great World. and converted an always densely- packed area into a charnel house. Reuter

· MOST TRAGIC ENCOUNTER

Shanghai, Aug. 24. During the afternoon's raid a Chinese bombing plane alming its

First estimates placed the casual- missiles at two Japanese gunboats ties at over 200 but subsequent in- lying half way down the river be vestigations revealed this to be a

Shanghal and Woosung. serious under-estimates of blood amidst twisted tram-wires struck the British-owned Asiatic.

In the meantime, one of the and other debris.

Petroleum Company's installatios, Chinese planes had been brought The horror-stricken guests of which was set on fire and is burn down in flames in Hongkew, while both the Cathay, and the Palace ing fiercely. Hotels were immediately evacuated.

it is also reported that two Japan Part of the roof of the Palace ese shells from field-guns, struck Those killed in the ghastly mass- Hotel was blown off and the plate the North Station. acre at the corner of Avenue Ed-glass and other windows in Bas- ward VII and Yu Ya Uping. (Tibet) soon House (Cathay Hotel), the Road included a European man Palace Hotel and other buildings and woman, whose misshapen in the Immediate vicinity. bodies, terribly shattered, were shattered to fragments found slumped in the seat of a Reuter. wrecked motor-car.

In the car the police found. a card bearing the name H. Honigs- berg, who is an American motor- car dealer.

Another wrecked car bore the bodies of Dr. Frank Rawlinson, ore of the most prominent American missionaries in Chins end his daughter.

·were

TREMENDOUS EXPLOSION

Shanghai, Aug. 14 HMS. Duncan and HMS: Danse had a full view of the whole battle and were several times in grave danger of themselves being struck The British Consu General which is situated on the Buns only boat 250 yards from the Japane

Several cars were completely wrecked and set on fire in the bombing of Nanking Road, and two of their foreign occupante", were seriously injured.

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The situation at the moment is much that neither the Bergen nor the Frederikstad yards seem to be Chinese planes appear to be interested In the Government's bombing the Japanese section of proposed subsidies. the Settlement, Hongkew, and the North Szechuer Road beavily.

They have started huge fres sound of the Sino-Japanese artil and palls of smoke are rising to lery cannonade could be heard, but

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