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Chiang Is Defiant

SAYS JAPANESE

AMBASSADOR

Shanghal, December 17.

"It is erroneous to think that Chinese resistance has been ended by the Japanese occupation of Nanking." said Mr. Kawagoe, the Japanese Ambassador to China, In an interview to-day when he declared that continued hostilities were foreshadowed by Generalis- simo Chiang Kai-shek's deter- mination to keep on with the struggle.

Commenting on the creation of a Provisional Government at Pel- ping. Mr. Kawagoe said that the "game developments may occur in central and south China" He described Wang Keh-ming, chair- man of the Executive Commission in the Peiping government as the right man in the right place. Router.

GENERAL YANG EXECUTED

General

Shanghal, Dec. 17. Yang Hu. Garrison Commander of the Shanghal and Woosung area. until the with- drawal of the Chinese forces. was executed in Hankow recently by order at Generalissimo Chiang Kai-shek on charges of corruption and fallure to carry out military orders.

According to Chinese despatches, General Yang Ha was n veteran member of the Kuomintang.—

Reuter.

RAILS DAMAGED

יד

Canton, Dec. 17: During this afternoon, when the aerodrome to

on

the north of Canton was bombed, Japanese planes also dropped four bomba at kilometre 48

the Kowloon-Canton Railway. Five seta of radia were damaged, but the train service is still carrying on as usual: One Chinese is stated to be killed and several wounded as the result of to-day's invasion- Reuter

BIG SHIPPING CONTRACT

Construction Of Twelve Freighters In U.S.

Some of the officers and men of the 1st Battalion the Middlesex Regiment who have joined the Hong Kong Rifle Association as individual full members during the last seven weeks By a happy coincidence, the Lion Rock, which is so conspicuous above the Army Ranges, is distinctly visible in the background. (Photo, Ming Yuen),

"IT WAS A MIRACLE WE

WERE STILL ALIVE”

OFFICER'S GRAPHIC ACCOUNT

OF PANAY DISASTER

Shanghai, December 17: A graphic description of the bomb- ink and machine-gunning of the U.S.S. Panay was given by Lieutenant Geist, who was wounded in the leg by shrapnel, as he limped off the U.S.S. Oahu when she tied up alongside the U.S.S. Augusta at 450 this afternoon.

Lt. Geist said that from fifteen to twenty bombs were drop- on the Panay shortly after lunch on December 12 from three two separate visits. heavy bombers and six light bombers on

The first bomb pushed in the port side and wounded two men, Another hit the bridge whereon, was Captain Hughes who was thrown against the wheel "and had his leg broken.

Local Chinese Honoured

SETTLEMENT EXPECTED

ад

Shanghai, Dec. 17.

RUSSIAN AIRMEN FIGHT

JAPANESE PLANES

interview here to-day, GERMAN GENERAL ALSO HELPS

Mr. Kawagoe, Japanese Ambassa- dor to China, expressed the belief that the Panay incident will be settled very shortly in an amicable manner "because the American Government appears to appreciate the sincere attitude shown by the Japanese."

Mr. Kawagoe further stated that no third party had offered to mediate in the Sino-Japanese hostilities although some steps had been taken in, this direction by Herr Trautmann, the German Ambassador to China, but he per- ・ ・ | songily had never been approach--|

ed by Herr Trautmann.

"We were so stunned that we couldn't realise what had happen- ed," said Lt. Geist who added that an order was given to man the machine-guns some of which were already useless as the concussions had bent the shields.

"When we saw the Panay sink-

MR. LAU KING-TSING'S ing we placed the wounded in life-

WORK REWARDED

We have been informed that Mr. Lau King-tsing, the well-known local Chinese business leader, has accepted the appointment as Hon. Adviser to the Commission сп Overseas Affairs of the Republie of China Mr. Lau has been pro- minently identified with the drive for funds for the Chinese war chest, the sale of liberty bonds and other charitable work.

The Commission looks after all the affairs of Overseas Chinese and the letter inviting Mr. Lau-to ac- cep: the appointment was signed | by Mr. Chen Bhu-jen, the chairman and handed over to Mr.Lau per- sonally by Mr. Chan Kal-kong, the

New York, Dec. 17: A $20,000,000 contract for the construction of twelve freighters is being offered by the Maritime Commission. The vice-chairman. ships will be of 14,000 tons with a' speed of 154 knots and will be easily convertible in time of

war.

The vessels must also have cruising range of 13,000 miles,

a

This is the biggest order placed

In the United States for freighters

In peace time.--

Reuter's Bulletin Service.

STAMP ISSUE DELAY

Mr. Lau King-tsing

Mr. Lau King-tsing is President the Hong Kong Anti-Heroin 60- clety; Vice-Chairman of the Chung Sing Benevolent Bociety, and of the General Chamber of Commerce. and Industry of the Tung Kơn district; Patron of the Hong Kong Chinese Teachers' Association; and Vice-Patron of the St. John Am balance Association and Brigade.

boats and managed to get them all ashore though the planes pursued us diving low and machine-gun- ning. As the last boatload went to shore, motor-boats with Japan- ese boarded the ship on which the American flag was still plainly visible. We hid in tall reeds on the swampy shore until nightfall when we went to Hohsien under cover of darkness thinking it was a miracle we were still alive," declared the officer.

(Continued op Back Page)

ALBUM COVER CONTEST

For Illustrated Record Of War Relief Work

For the benefit of patriotic Chinese throughout the world and foreign well-wishers of China, who have donated time, money and energy towards the admirable cause of war relief in China, the China Information Service proposes to Tublish a China War Relief Album.

The Album, which will appear in January, will contain articles re- lating to the methods taken to alleviate the sufferings of Chinese wounded soldiers and war refugees. It will be illustrated with special war photographs, hitherto unpab- lished, taken by staff photographers of the China Information Service. A special feature of the Album will be the part played by the various relief associations in Hong Kong and Canton.

(Continued on Back Page)

It is understood that owing to the fact that the Royal Mint in London has been. Inundated with orders for new George VI postage stamps, the new Hong Kong que which was to have superseded the George V stampe on January 1 will not be available until March at the earliest. "Meanwhile, the Foetal Depart ment in Hong Kong has sold out all stocks of four and 25-cent | Coronation issues, and these have been temporarily replaced by the old George V stamps of the same denominations

The new George VI stamps, which will replace the issue of the former, reign in March or April Mr. Lan is also the sponsor of will be similar in design to King Brst aid and anti-gas lectures now Edward VIII stamps, which were being given for Chinese boys, under never. Issued Except for the the auspices of the Chiness Athle- From Our Own Correspondent). King's pronie, which will be photic Association Division of the Et.

London. Dec. 17. tographically reproduced, and will John Ambulance Brigade. Mr. Lau London silver prices turday face the same direction as King is Patron of the Division. He has were up 3/8 for Spot" and George V. stamps, the now stamps Just rented another flat in No. 2A "Forward" as follow:--- will be almost identical with those Western Street to accommodate the Issued during the reign of Queen third class for first aid and anti-spot.

gas lectures

Victoria.

THE DOLLAR

T.T. ON NEW YORK: 34-15/10 T.T. ON LONDON: ' L. 4.7/86.

London Silver Market

Forward.........

Dec. 16 Dec. 17. 18-11/18 19-1/16 ..18-1/16- 19-7/18

In conclusion he stated that British intercession in the dispute was entirely out of the question

Beuter.

CHINESE FORCES

"Hankow, December 17.

About thirty Soviet Russian airmen, several of whom a short time ago were flying for the Spanish Government, are now as- sembled here and the air resounds dally with the roar of fast Soviet bombers and pursult planes as they circle over the city.

As an example of the strange international, kaleidoscope, the Russian airmen's neighbours here, and supporting the same cause, are the German General Von Falkenhausen who had a distin- guished Great War record and his Corps of about one hundred *military advisers. General Von Falkenhausen and his officers, despite the German-Japan anti-Commitein Pact, have locally advised and raided the Chinese Army throughout the host Utles and continue to do so.

more

The Russian pilots have already ; lished if Chungking with some de- been in action against the Japan-partments in Changsha and the ese. There are other foreign pilota" military headquarters will also working for the Chinese Air

Dr. H. H. from place to place. Force among whom in last week's Kung interviewed by Reuter at

Frenchman was killed and one Australian wounded. Beveral Japan- ese planes were brought down.

WEEK-END RACE aerial battle over Nanchang one midnight at the temporary office

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RACE 2 Ranger "Perfect Day

Australian Boy

RACE 3 King's Warden Bear Claw Wild Life

RACE 4 Ebony Idol Emergency Call Racing Strain

RACE 5 Soldier of China “ Тупа

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RACE # Gypsy Love Able Amazon Lancashire Chips.

KACE 7 Discovery Bay Strathcarrick A Great Time RACE I Valorous Good Morning Sylvandale

DAILY DOUBLE Soldier of China

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RACE 1 (2.30 P.M.)

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BACE 2 Jack O'Lantern Chinn Clipper, The

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· Cloudy Eve' March Brown

HANKOW THE CENTRE

Hankow is at present the vital centre in China as all the high Government leaders are here in- cluding Generalissimo Chiang Kai- shek who is continually on the

move by air between the mobile Staff Headquarters and different points in Hunan and Klangs! Pro- vinces. He is leaving to-day. Also here are General Pai Chung-hat,

of the. Ministry of Finance was found dictating letters to his six- teen-year-old daughter who acts as his personal secretary and often works well into the moming hours.

GRAVITY OF SITUATION

Dr. Kung frankly admitted the gravity of China's plight in deplet-

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Hasegawa Talks

NOT SATISFIED WITH PRESENT SUCCESSES

Shanghai, Dec. 17.

The Japanese Government are not satisfied with its present mill- tary successes and are determined to continue the hostilities until the objectives of the occasion of the expedition are attained, says Vice-Admiral Hasegawa on the occasion of the formal entry of the Japanese naval and military forces Into Nanking.

The Vice-Admiral declares that the "successes of the Japanese for- 'ces naturally should be attributed to the august virtues of the Japanese Emperor. In addition. the officers and men of the Im- perial army and navy are burning with the conviction that justice demanded that retribution should be meted out for the outrages per- petrated by China— Reuter.

JAPANESE

FLEET

Reported South Of Hồng Kong

Hankow, Dec. 17: According to a foreign press despatch received here, a fleet of Japanese warships, including a number of cruisers and destroyers, are reported to be cruis- ing off the Kwangtung coast 60 miles south of Hong Kong.

The same report adds that con- siderable, anxiety is being felt in- Hong Kong as rumours are being circulated to the erect that the Japanese are making preparations to invade Kwangtung, which wil likely involve the British colony- Central News

PRECAUTIONARY MEASURES

IN CANTON

Canton. Dec. 17: Reuter is re- liably informed that in the event of a Japanese invasion of Ewang- tung, it will likely affect Canton. All foreign women and children are

ed resources and manpower but being requested to evacuate atm- MCCI. At the present stage, this insisted that peace was impossible. He said that although the richest is merely regarded as a precaution- part of China was lost the Chinese tionary warning.— Government still has a fighting Reuter

second military commander ́and force and will continue to resist famous Kwangsi general whose 'for she has no alternative. He ex- reputation is growing throughout | pressed the view that the key to China, the Minister for Finance. the whole situation Hes irrevocably Dr. H. H. Kung; the Foreign Minis- with London and the eyes of China | Cables ter. Ministers for War and Navy turned to Britain. He added that Finance and many other leading Govern- ment oficiais: also Madame Chiang Kai-shek

no other Power will take the leadLeading Articles.

NEWS INDEX

#

Page 6, 8, 9.

Page 12, 13.

Page 8,

..Page 5).

...Page 10.-

Page 15.

.Page 7

.....Page 10.

to save China and even Russia will Radiu Programmes......Päge:. 4.

Eot intervene on her own initiative Local Diary... It is freely admitted that Han- but would do so if Britam made Mall Notices kow is the only temporary stopping the first move and France would Shipping .... place of the Chinese Government also follow sulty----

The Services which in due course will be estab- | Reuter.

Sport

Mr. G. S. Archbutt New Captain

Of The Golf

Club

Mr. G. E. Archbutt was unani. Į the balance being a Loss of crease of $2,781.00.- It will be re- mously elected the new Captain of | 83,331.05 was

the Royal Hong Kong Golf Club at | serve Account.

transferred to. Re-membered that in the winter of

1934-35 we saw very little of the

its Annual General Meeting held Comparison with last year's | Royal Navy.

in the Board Room of the "South | figures in'considering turnover is Ladies' subscriptions have also China Morning Post" Lid. yester-extremely difficult owing to the increased by $1,166.00; whilst ab day evening. The following Com-fall in exchange and the conso-sent fees, always variable; · have mittee members were present in quent increase in the price of im this year decreased by $258.00.. addition to the Chairman: Messrs. ported goods. This is specially emphasised in our Trading Account where the turnover has increased by no less than $20,000 while our profit under this heading han la- creased by $1,480.04 only. This however is due in some slight I measure to reductions in prices of.

drinks, etc.

A. E Lissaman, AK Mackenzie, K. 8. Morrison, D. B. Robb, K. & Robertson and Coloriel E. D. Mat- thews. Secretary.

CAPTAIN'S SPEECH In the absence through illness. of the Captain, Mr. D. J. Gilmore, the Chairman read the Captain's speech, which follows:--

The year under review may be considered a satisfactory one al though you will observe from the Statement of Accounts that our working profit amounted to $8,883,53 only compared with $18,08423 1 1938. After allowing for the usual depreciation, etc.,

"INCREASE IN SUBSCRIPTIONS

The figures in Working Account are, however, not effected in quite the same manner and here we find that receipts are up by #2410 due to an increase in subscriptions.

The liquid assets of the Club have Increased from $61,245.35 to $73,488.34 gain of $12,243.39. "(These liquid assets do not include- stocks of machine spares, Zänen, and Crockery or payments: in advance).

The Fanling Building fund bas intcreased by $11.517.13-all shares held have been disposed of and as fixed deposite fall, in, these are transferred to a special account on which the Hong Kong and Shang- hal Bank pay us good interest. Blx members who left the Colony within one year of election had

half their entrance fee ($75.00

(Confianed on Fago, 19)

In Residents subscription, how ever, there is a drop of $1,351.00 each) refunded. whilst subscribers show an in-

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