ADVANCE ON TSINGTAO

CHECKED

Japanese Plan Thrust To Cut Off Chinese Troops

Hankow, Dec, 29: The Japanese advance on Tsingtao has been held up by Chinese at Wihaien, accord- ing to despatches received, here. The Mayor of the town has order- ed its evacuation by the civilian population and the destruction of all public buildings before Japan-" ese occupation. Only a few thou. sand Chinese troops are still left in the town; and they have been formed inte guerilla bodies.

Part of the Chinese army form- erly stationed in Tsingtao is said. to be on its way to Wihsien while another part is marching south ward in the direction of the Lung- hai Railway. It generally be leved here that the Japanese will endeavour, by means of a thrust from their base at Poshan, to cut of the latest movements of the Chinese troops.

HANGCHOW FRONT The Chinese defensive positions

now run in a line extending from Poshan to Chanchin via Talyuan" fu. These positions were to-day subjected to Incessant bombing by Japanese planes,

On the Hangehow front the Japanese are reported to be busly engaged in strengthening their positions. The situation on this front. which runs along the south- ern sector of the ratiway from Tentsin to Pukow, is unchanged.

JAPANESE DIFFICULTY The Japanese have considerable difficulty in maintaining their posi- tions between Fuyang and Tunglu on the Sjenfang River. where Chi-" nese are waging guerilla warfare and the Зарапеве forces arc numerically weak. It is believed that unless the Japanese receive reinforcements at the last minute It will be impossible for them to maintain their positions there.

In Shansi Province, the Chinese are apparently contemplating early resumption of hostilities, and the Governor of the Province. General Yen Hsi-shen, is now here for the purpose of discussing future opera- tions with Generalissimo Chiang Kai-shek. In "informed quarters, there in a hint of the possibility of a concentration of large numbers of troops in Shansi- Transocean

MORE HANKOW REFUGEES

Over 300 Coming To Hong Kong

and

Hankow, Dec. 28. Another batch of over 300 re- fugees are leaving here at 9 a.m. to-morrow for Hong Kong In 3. train of thirteen coaches. Book- ing opened this morning al the local British Naval Canteen by 3 p.m. 305 passengers had booked including. 126 from Han- kow, 62 from Changsha 137 trom Kuling. Klakang and Nanchang. The latter includes many students of the faculty of the Kuling American School.

Once again the train will pre- sent a colourful sight.. Flags of many nations will be attached to each wagon. The triin comprises six second class coaches, the far: for which is $30 per person; three third class coaches (fare $15), also a luggage van dining car. heavy baggage van and service

car.

A party of 137 came to Hanko: yesterday in the steamer Woosung

and will remain on board until the train leaves to-morrow. The Woo sung party includes 58 children," 52 women and 29 men.- Reuter.

2:

JAPANESE BOMBERS RAID SIAN

Blan, Dec. 29: Tension prevailed in Sian at four o'clock this after- noon when an alarm was sounded of approaching Japanese planes from Shansi,

Eight Japanese tombers of the

HONG KONG DAILY PRESS. THURSDAY, DECEMBER 30, 1937.

ARMED ESCORT FOR FILM OF

́ PANAY INCIDENT

$350,000 Insurance

New York, Dec. 29.

Under the eyes of armed guards the film depicting the destruc- tion of the U.S. runboat Panay in the Yangise is being flown across the United States from California and is scheduled to arrive here" this morning and will probably be exhibited this evening.

Elaborate plans have been made for the safe conduct of the film. which is insured for $350,000 from Newark, New Jersey, where the plane will land to New York Proper. An armoured car will be used and Governor Hoffmann with a squad of New Jersey State police will escort the car as far as Holland Tunnel where the New York Police will meet them.

Over twenty Police and Federal agents, heavily armed, directed the loading of the film in California before its trans-Pacific crossing By the flying boat China Clipper-Renter.

ULTIMATUM TO GOVERNOR OF

SHANSI

EXTERMINATION IS

An

THREATENED BY JAPANESE

Shanghai Dec. 28. ultimatum giving General Yen Hal-shan, Governor of Shaus!. until nightfall to-morrow to sever relations with Chiang Kai-shek's regime and co-operate with the

PACT BETWEEN GERMANY AND RUMANIA

.Poland Favours

New Cabinet.

Berlin, Dec. 29. Owing to the fact that news of the formation of the Goga Cabinet in Bucharest reached Berlin' yes- terday evening only a few news- papers are in a position to co

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Japanese is contained in leaflets ment on the event this morning. GRENADE

dropped in the towns of southern Shansi to-day planes.

from Japanese

The "ultimatum asks Gen. Yen Hsl-shan" to surrender immediate- "ly in order to cooperate with the Japanese Army in maintain.ng peace and order in North China" and threatens that the Japanese Army will take immediate and drastic steps to exterminate Gen. Yen Hs-shan and his troopsy if he does not comply but promises every consideration if he should agree.- Reuter.

The "Berliner Tageblatt" recalls that the political programme ex- posed by the new Premier during the electoral campaign clearly re- vealed the policy advocated by his party, namely, opposition to any co-operation with

Soviet Russia which implies antagonism to M. Titulescu who invariably favoured such co-operation.

The paper stresses M. Goga's declaration of "making normal" relations with Germany and of the eventual conclusion of a pac between the two countries. Re- garding M. Goga's home poker the paper points out that the new Premler favour strongly national

heavy type were sighted at 4.40 WANG CHING-WEI policy and the exclusion of Jewish

o'clock. Flying at a high altitude for fear of Chinese anti-aircraft gun fire, the planes cireled over the city for half an hour and dropped about forty misslies on the western suburbs.

The "all clear" signal was sound- ed at 5.20 p.m, when the raiders left in a north-easterly direction.

An investigation later shows that about twenty.civilian-houses were destroyed. No casualties resulted. Central NewEX

BUSINESS ACTIVITY IN PARIS

WILL BE PARALYSED

TRANSPORT WORKERS' STRIKE GRAVE

Paris, Dec, 29.

The general strike of transport workers is causing considerable uneasiness since it is impossible as yet to foresee the effect it will have on the entire economic life of the capital. It is, however, cer- tain that business activity will be to some extent paralysed and it is doubtful whether department stores and other big undertakings will be able to remain open since the vast majority of their employees depend" on underground railways or motor-buses for transportation.

RESIGNS POST

Handow. Dec. 29: The resigna- tions of Mr. Wang Ching-wei as Council, and Mr. Chang Chun as President of the Central Political

secretary general of the Council. were accepted by the Central Executive Committee on December 27, it was reported to-day.

Mr. Wang's place. It is reported will be filled by Generalissimo Chiang Kai-shek, while Mr. Chang Chi-luen, editor of the "Tal Kung Pao." is mentioned as a successor to Mr. Chang Chun.

Influence in the social life of Rumania. The "Deutsche Alleg- magne Zeltung" writes that Goga enjoys the reputation-of showing full comprehension of the position of the minorities in. Transylvania and the paper attributes this attitude to the fact that Goga when in Transylvania himself be- longed to the minority when Transylvania formed part of the Austro-Hungarian Empire- Trankoccan News Service.

POLAND PLEASED

Warsaw. Dec. 29. News of the formation of the new Rumanian Cabinet under M. Mr. Wang Ching-wel will probably received in Polish political Octavius Goga has been 'favour- ably take a trip abroad as a

circles which point out that the leisurely ambassador-at-large.—

Rumanian National International "News Agency.

Christian Party has invariably favoured close allance between Rumania and Poland and M. Goga himself is a steadfast friend of Poland and is President of the Polish- Rumania, Society.- Transocean News Service.

JAPAN TO REDEEM STEELING BONDS Tokyo. Dec. 29: The Japanese Government has decided to redeem on January 1 sterling bonds amounting to £144,920 sterling at face value; bearing 51 per cent. interest, with 935.908 yen from the sinking funds- Reuter

"CAPITAL BUDGET": FOR JAPAN

Tokyo, Dec. 29. The Ministry of Finance has decided to "comple budget" with a view to strengthen

a "capital

ing the control of capital which it is stated now shows considerably satisfactory result.

It is pointed out that the present there have been no cases of vio-2 strike differs from similar ones in streets of the French capital early the past which never lasted longer lence although the appearance of than twenty-four hours whereas troops roused protests from the the duration of this strike declared strikers. There does not appear on Tuesday is not limited. It is to have been any breakdown in the now announced that those taxi- delivery of milk this morning. cab chauffers who have not yet

Rejection by the Paris Municipal joined in the atrike have summon-Council of a demand to grant a ed the Government to withdraw monthly bonus of 100 francs to immediately military lorries serv- cover the increased cost of living is ing to convey goods to markets or the reason which has prompted the to transport newspapers. In the transport workers to call its mem- event of this demand being refused bers out on strike. The Municipal the chauffers in question threaten Counell had Intimated that it was a strike in their own turn. On the willing to grant a monthly bonus other hand should the demand be of 50 francs. granted, and military lorries be Transocean News Service. withdrawn, the supply of goods" to the inhabitants would be gravely imperilled. In this connection the paper "Epoque" asks. whether the authorities will prove equal to their heavy responsibilities. The "Echo de Paris" which describes the Sew conflict as the gravest which the capital has experienced for a long time stresses the neces- sity for the Government to main may be tain its authority unimpaired in the interest of the maintenance of social peace.- Fransocean News Service,

EFFECT ON FRANC

London, Dec. 29... All beneficial effects of M. Bon- net's spirited defence of the budget, before the Chamber of Deputies, were wiped out to-day when the Continent turned a heavy seller in francs in consequence of to-day's strike in Paris which it is feared

the forerunner of fur- ther labour dimculties. French control allowed the spot rate to depreciate from 147.15 to 147.30 taking fairly large offerings on the

· MONTHLY BONUS DEMANDED decline. Meanwhile, forward rates Paris, Dec. 29: A greatly in- weakened very sharply, one to thres creased number of motor larries months being 150 and 475 centimes driven by soldies appeared, in 'the discount, are compared with 93 and this morning and indicated that 371, respectively, last night. The despite the extension of the trans- bullion market witnessed a keen port strike the Government is de- rush on continental buying gold termined to maintain, the supply the authorities being forced to sell of food to the Paris markets and £722,000 in order to satisfy the distribution of newspapers to the demand. - neighbourhood of Paris. So far Reuter.

GOVERNMENT NAMED

Bucharest. Dec 29 The new Rumanian Government formed under the leadership of M. Octavius Goga will be known as the National Christian Peasant Union: The Cabinet is expected to take oath of office very shortis.— Router's Bulletin Severe

CABINET SWORN IN

Cabinet was

Bucharest, Dec. 29: The new. sworn in by King his address said that the watch- Carol last night. King Carol in The Ministry word of the policy of the new of Finance is promulating the necessary ministerial ordinance to word that was difficult to realise. Cabinet was nationalism, a watch- be brought into effect on January 4. By virtue of the ordinance

"I was fully aware of all this when private concerns whose capital'sa-

I summoned you," said His Majesty. tion is over half a million yen or

Transocean News Service. are planning to have increased capitalisation of over half a mu- lion yen during 1937 will be obliged to submit to the new enterprise a plan including the enlargement business scales by February 15 to the Ministry of Finance through the Bank of Japan whereby the Finance Ministry will draw up the capital budget. - Reuter.

JAPANESE WARSHIPS IN SANMEN BAY Ningpo, Dec. 29: Japanese war- ships are sighted cruising the waters off Sanmen Bay, south of the Halangshan Harbour, of the Cheklang coast

H

SUPPLEMENTARY ESTIMATES

For American Navy Programme

Washington, Dec. 29. President F. D. Roosevelt is ask- ing Congress for supplementary estimates for the navy programme according to a report issued at s press conference,"

Asked if his statement heralds the campaign for "national pre- paredness the President replied that such a campaign is not con- templated.

In view of the hostilities on the two banks of the Chlentang River, Questioned regarding the visit of trains on the Ningpo-Hangchow four United States cruisers to Aus- Railway run as far as the Tsao-tralin he said that they are only ngao River, employees on the Tao-going as they have been invited to ngao section of the line have been attend the celebrations at Sydney withdrawn to a safer region-

next year Central News.

Reuter's Bulletin Service,

,

THROWING

INCIDENTS

CHINESE

EX-SOLDIER

ARRESTED

Alleged Confession

Shanghai, Dec. 29.

The man responsible for the hard grenade throwing incident yesterday is an ex-soldier. named LI Hsi-min, aged 30, who allegedly confessed that he belonged to a dare-to-die corps of 24 Chinese soldiers who disguised themselves as coolies, and went to Shanghai through the Japanese lines from the war zone for the express pur- pose of causing loss to life and property among Japanese troops, Japanese banks and large Japan- ese business and Industrial con-

cerns.

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&

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CHINESE LAUNCH COUNTER-

2

ATTACK ON FUYANG

Tunglu. Cheklang. Dec. 29: Braving drenching rain. two columns of Chinese troops launch- ed a fierce counter-attack on Fu- yang, about 25 kilometres south of Hangchow, from Tunglu and Hsin- teng. respectively about 70 and 50 kilometres southwest of Hangchow this morning.

Hangehow highway, greatly' men- acing Japanese communications between the two towns.— Central New

CHINESE AGAIN EECAPTURED

KWANGTEH

Tunglu, Dec. 29: Military ad- vices received here indicate that the Chinese forces once more re- captured Kwangteb. important

The corps had its headquarters In a cheap hotel in an obscure street in the French Concession and had access to a cache of arms. Li Hai-min admitted that three accomplices were responsible for incident on December 27. The po-ed at the southern suburbs of the the first hand grenade throwing The column from Tungla arriv-

ice are trying to round up the town this afternoon whilst the highway town on the gang but it is feared they may column from Hsinteng succeeded divided into two columns to push have fed is a result of Li Hsi-n fighting their way to Tsingyun- min's arrest. Municipal Council will hand over Hangchow. The recapture of Fu- It is understood the klao, about 10 kilometres west of Li Hsi-min to the Japanese au- yang is believed. imminent if no thorities if they are requested to Japanese reinforcements arrive in time to relieve the limited number of Japanese troops stationed in the town.

do'80 Reuter.

NANZIN RAZED TO GROUND

Japanese Kill 500. Civilians

Hanikow. Dec. 29.

Nanzin on the south bank of Taihu Lake was practically razed to the ground after its fall to Japanese hands on November 13, according to a new arrival from

that town..

Big fires, he said, blazed in the town intermittently for about two weeks. As a result, only about one-tenth of the houses are s standing whilst the rest were re- duced to ruins. The number of casualties resulted from repeated Japanese nerial and artillery bombardment before, the fall of the town and slaughter after its fall is believed heavy, though no reliable statistics are available.

Wuhsing, west of Nanzin, he added, encountered practically the same fate after it was taken by the Japanese on" November 24. Large numbers of houses were burnt down and, looting was & common alght. As most of the Inhabitants had fled from the ety, only about 300 were killed.

At Yuankiawel, a small rural town southwest of Wuhsing, some 500 civilians were killed by the Japanese, he stated.- Central News.

Meanwhile, Chinese mobile units active on the Fuyang and

are

THE

Cheklang border and

Anhwei-

are now

toward Yuhang and Fuyang by way of Changing and Szean res- pectively.-Central News,

Twenty-six American citizens sailed from Tsingtao yesterday aboard a cargo steamer for Shang- hal, states a Renter's Bulletin Ber- vice message from Tsingtao.

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