JAPAN WANTS BRITAIN'S FRIENDSHIP
Imperial Anxiety Over Present China Situation
Tokyo, January 2.
The desire for readjustment of Japan's relations with Britain was expressed by the Foreign minister, Mr. Koki Hirota, in a traditional New Year, message.
»
Baying that Britain, "because of her old and important in- terests in China and because of the pollen] haplleations of 'cur~. rent events is gravely concerned over the present hostilities," Mr. Hirota emphasised that Japan had no desire to violate those-in- tercits.
#International friendship," Mr. Hirota continued, “is possible" only when based on understanding. There are many Britons who do not take a broad view of the developments and criticise Japan's actions. Unavoidably, the Japanese are unable to become recon- ciled with such an attitude,”
by it on the Chinese people "a real China,
prosperuus and
would be born." Reuter.
•
active,
JAPAN WANTS PEACE ¦
Mr. Hirota said: "China stands "to-day at the cross-roads. We can but hope, at the moment such as this, that Britain will understand the Japanese stand, and place re- Hance on Japan's professed inten- tion to prevent bolshevization of the Far East and maintain peace in the Orient. We also hope that Britain will make every effort to prevent dislocation of the tradi tionally amicable Anglo-Japanese | support. · relation."
RUSSIA'S STAND
A
Th message pointed out that last summer's conversation between the two Powers for readjustment of their relations were "arrested by
the sudden outbreak of hostilities
in China".
is We
The Premier continued: "When the new Government created in such an atmosphere and clearly conscious of the true situation in the Far East, is brought into being it will have Japan's sympathy and
"It is a matter of regret for the future happiness of the two na tions that there is, at least in parts of the world, a strong pre- judice in dealing with essentials in Sino-Japanese
relations. This
HONG KONG DAILY PRESS, MONDAY, JANUARY 3, 1938,
Lord Nuffield (formerly Sir William Morris) on whom has been con- ferred n Viscountey in the New Year's Honours. Viscount Nufeld
was raised to the Peerage in 1934.
"AUTONOMOUS
COMMISSION”
CHINESE CABINET IS
REORGANISED
Dr. H. H. Kung Takes Premier's Portfolio
Hankow, January 2. Reorganisation of the Chinese
·Government for the express pur- post of Increasing the efficiency of China's anti-Japanese wwr machinery has been decided on by the National Defence Council, the country in the present "emergency highest governing body in the
perled."
Dr HH Kung. Finance Minis- ter. has been appointed President of the "Executive Yuan (Prime Minister) in the place of Chiang Kaslick "who will thus. be enabled to devote his entire atten- tion' to Military Affairs,
Dr. Wang Chung-hul, Foreign Minister. has been made Vice- President of the 'Exventive Yuan.
INAUGURATED Chen Li-fu writer. lecturer and
Japanese Flags Over Peiping
Shanghai, Jan. 2. „," The so-called “Autonomous Com- m'ssion" in Nanking was formally Inaugurated yesterday afternoon" with the Japanese Bag and the
five-barred flag of the "Provisional Government" of Pelping flying everywhere.
Japanese reports of the cere
situation calls for fresh faith and entirely different from the one Mr. Hirota, turning to the Soviet, now in favour and for the adoption of practical steps to establish peace. said: "Russia's stand in the car-
dispute tent Sino-Japanese
If Japan is asked what she wants
mony describe the new reg'me as most, there can be only one answer
one "entirely separated from the worthy of careful attention. have the impression that the Sino-peace. In the Orient. In order anti-Japanese and pro-Communist Con- Soviet Non-Aggression Pact gave a to build a solid foundation inder Kuomintang Government". political endorsement to the mill this peace, Japan must fight her gratulatory addresses were deliver tary aid at present given by Russia present battle". Prince Konoyeed by members of the Japanese to the National Government. Hav. sald- ing embarked on the campaign of chastisement of China we cannot but resent the Soviet attitude, We also regrat that the Soviet has de- clined our request for the con- clusion of a new fisheries conven-
tlon and merely assented to the extension of the existing Modus Vivend1"
JAPAN'S AIM
Tokyo, Jan. 2
Fastes
IMPERIAL ANXIETY
Tokyo, Jan. 2. ș "Universal materialism and the failure of the egotism and world to understand the nature of
army and navy and by K'yoshi Fukul. acting Japanese Consul- General in Nanking..
The Commission's platform is outlined in a manifesto wherein the Kuomintang regime and ant- Japanese thoughts are denounced
and wherein promises are made to enforce anti-Comintern measures The
war being waged in the sacred China," are decried in a New Year
manifesto also advocates message by General Sugiyama, War
formation of 1 Minister, who, said: It is regret the
union table that the National Govern- of pro-Japanese groups in various -Japan's main aim in the currentment, continuing, its futile depen-places in China in order to bring Japan dence on foreign countries, falls to about co-operation with hostilities is to bring China "who realise the necessity of establishing and endeavour to armly establishi has gone astray," to her beaten
peace in the Far East.”—- peace in the Far East. If we turn ways Premier Konoye told the
Reuter. to the world at large we see that nation in a New Year message.
an atmosphere of materialism and "This country desires to build a solid foundation for the progress egotism is sweeping the universe. As it is impossible at this time to and stability of the Far East and
gauge the possible effects of this make the product a pillar of the universal peace structure," he said. I trend, we must be prepared to face
In any age, Prince Konoye, de- clared. "reforma meet with ob: struction from 'conservatives. In the current crisis the world's pro- gressive nations are with us, but the conservative Powers are bring- ing pressure to bear on our, coun- try."
Before Japan can achieve a "glorious story" Prince Konoye emphasised, "she must mobilise every ounce of strength and use fi in an efficient and organised' manner.
Following the fall of Nanking. Pre- mler Konoye said, the National Government had become a weapon In the bands of the Communist
Party-a destructive organisation. If Japan succeeded in uprooting the sources of the National Gov- ernment's campaign of resistance, and removed the pressure appiled
all eventualities."
General Sugiyama continued: "On this day, praying for the con- tinued enhancement of imperial prestige, we must resolve to sur- mount all difficulties with patience and perseverance. In a similar message Admiral Yonai, Minister of the Navy, also emphasised the need. for making every effort to enhance imperial prestige. Although for tunately we have scored signal victories in the air and on the seas, we must realise, in view of the complicated international relations that the crisis is not yet ended Having left nothing undone in our preparations for any emergency, we are determined" to perform our duty in protecting the country and thus setting to rest the emperor's anxiety over the situation."- Reuter."
PREPARING FOR BIG TRADE
Japanese Ships For Shanghai
Tokyo, Jan 2 Another crack liner of 7.000 tons,
a passenger, ship will be built by
Shanghai run. •
the N.Y.E for the Japan
Four 4,500-ton freighters destined for the same route are already under construction. in the yards at Kobe and Osaka When these fire ships are completed the N.TE. will have 14 vessels of an aggre= | gate displacement of 57,000 tons on the Japan-Shanghai run.
the
CHINESE FORCES NEAR HANGCHOW CITY Tungfu, Chekiang, Jan. 2: In a renewed counter-offensive the Chi- nese column from Fuyang, about 26 kilomètres south of Hangehow, made a further advance of about 12 kilometres.or the lakeside city to-day."
1
After a futile attempt at halting their advance, the Japanese unit dispatched, to engage them re- trented to Fantaun near Nanding- kino, the south gateway to Hang- chow.
Menaced by an imminent attack on the elty, the Japanese troops have all been withdrawn to the suburbs and the Japanese military headquarters has been removed to Slashth on the Shanghai-Hangchow Railway, 64 kilometres from Hang-
chow.
Reports received here state that the Japanese have established three strong defence lines between Hanghow and Bhanghai to pre vent a Chinese attempt to retake the port city. The arst line is around Tsingshanshh south of Wushing on the Nanking-Hang- chow highway, the second line around Kashing on the Shanghai- Hangchow Raliway and the third
in the suburbs of Shanghai. Central New,
Residents! Associations in various districts in Shanghai and cther civic bodles held on Decem-line
ber 31. according 10 information from rellable sources.
The meeting decided to issue a manifesto denouncing the Megal
author, who has played a pro- minent part in many popular movements, has been appointed Education Minister in succession to Wang Shih-chích. The Ministry of Ralways, of which
Chang Cblang-au was Minister, has been
SEVERE BATTLE
FOR HANGCHOW
Chinese Launch Big Counter-Offensive
of
absorbed into the "Ministry Communications with Chang as Minister
General Yu Fel-peng, the out- going Minister of Communications, has been appointed chief of the Military Transportation Depart
quarters. ment of the Generalisáino's Head-
The Ministry of Industries, the National Economic Council and the National Reconstruction Com-
inission has been combined into a newly created Ministry of Economic Affairs with Oong Wen-hao, formerly Secretary General of the Executive Yuan, as Minister. Dong tho assistant, delegate at Coronation of King George the Sixth and Queen Elizabeth:
W35
The Ministry of the Navy has been absorbed into the Ministry of War and about · fifteen minister's without portfolio have been" ap- pointed. They include leaders of various political factions and will have the right to attend meetings of the Cabinel. Reuter.
TSINGTAO EXODUS CONTINUES
15
Only 50,000 Chinese Left In City
Shanghai, Jan. 2. Chinese forces under Chang Fah- kwel are engaged in a powerful-
Tsinglao, Jan. 2. counter-offensive which is design-
Reports of the fall of Welbsten, ed to recapture Hangchow," accord- although unconfirmed, have result- ing to Chinese press reports. At the
ed in accelerating still further same time, they assert, flying co-
the exodus" of Tsingtao's Chinese lumns directed by the former inhabitants who fear possible. Communist General, Hang Yi-nan, Japanese vengeance for the des- expect, in guerilla warfare, to attruction of Japanese property here. tack the Japanese" rear.
The vastness. of the shift of population which is taking place is illustrated by the estimates that there are now only 50,000 Chinese In Tsingtao, compared with" the
Good progress is reported as the result of the counter-offensive, but „confirmation" of the claim is lack
Ing.
have also launched 1 counter-of 300,000. offensive, according to further
J.
SPEEDY
'NOO"
CANTON
RAILWAY
ONOMICAL
NOTICE
On and from January 1st. 1938, the following revised fares will be in operation between Kowloon and Canton and vice versa.
From Kowloon · (Hong Kong Currency)
From Cantoo (Chinese National
Currency)
1st, class
$4.80
$5.00
2nd. class
$2.40
$2.50
3rd, class
*1:20
$1.25
· E, D, WALKER,
Manager & Chief Engineer.
THE
HONG KONG
PENINSULA' › HOTEL;"
HOXGIONG HOTEL; REPULSE MAY HOTELS
&
SHANGHAI
APTOR HOUSE;. PALACE HOTELĮ
HOTELS
LIMITED,
Ia masociation with the Grand Hotel des Wagona Lita. Peking.
Chinese forces north of Pukow city's normal population of upwards WHITE
Although American nationals in Chinese reports which, assert that Tsingtan have been advised by the Chuchów, 20 miles from the Yang-State Department at Washington tse has been recaptured. The to evacuate, few of them are Chinese are stated. to be "continu- eager to leave. Since the Japanese Ing to advance despite stift Japan-nills here were" destroyed in Dec. ese resistance."
18, only 68, out of 251 Americans in the Tsingtao Consular district have evacuated.
Shanghai Jan. 2 General Chang Fah-kwel. Commander, of Ching's "Ironsides," has launched a counter-attack with the object of recapturing Hangchow, according Chinese reports,
A severe battle is now progress- ing with both sides using heavy artillery-Reuter.
MORE TROUBLE FEARED! Shanghai, Jan. 2: Despite the action of the Municipal Council regarding the hand-grenade throw- ing incident, the police fear there will be further incidents. They arc. convinced of the existence of an underground organisation of ter- rorists, desperate and fearless of death, who have come from Poo- tung and other places outside the
city.
The situation is considered grave and it is widely hoped the Japan- ese authorities will co-operate with the Council by restricting the movements of Japanese troops to the south of the Boochow Creek watch is regarded as constituting easily avoidable provocation
Reuter
SHANSI FRONT QUIET RAIDS ON RAILWAY LINES Lnten, Jan 2: Quietness pre- Canton, Jan. 2: Twenty-seven valls on the Shansi front organisation and warn all Chinese Japanese planes in four squadrons On the Tungpu Raliway the In Bhanght not to co-operate attacked the Canton-Kowloon main bodies of the Chinese and with it and those reportedly par-Railway and the Canton-Hankow Japanese forces are still holding ticipating in it to resign as soon as Railway shortly after noon to-day. out against each other between possible.
Bome ten bombs were dropped Chinsten and Pingyao. To prevent the advance of the Japanese forces To effect close, co-operation be- each at · Bhekha' station on the the Chinese have severely damaged "tween "the" various civic bodles informer line and Wangsbek and Shanghat the meeting also decided Litung stations on the latter" line, | to form a joint office:--
causing slight damage to the Central Beson
tracks.
LIUHOKOU RECAPTURED
Bombs were also released on the
·
Chengchow, Jan. 2: Lithokou, Bocca Tigris Forts, Whampoa and Japanese around Hohsun are, re Officials of the concern predicti :mportant mining town that in a year's time ships will | northern" Honan border, was re-
on the Tsungia
Central News,
sail to Shanghal from Kobe every | parted to have been recaptured by other day, from Yokohama every
four days and from Nagasaki 'three
· t'men weekly.--- '
Reuter.
"SHANGHAI CIVIC ASSOCN," REPUDIATED
a Chinese mobile unit.
It was stated that about 500 Chinese mobile troops crossed the Chang River under cover of pight Taken by surprise, the Japanese batteries at. Luhokou opened · a Hankow Jan. 2: The so-called heavy fire but all missed their "Shanghai Civle Association" re-mark Stealthily the Chinese cently organised allegedly under | troops spread cut and surrounded the instigation of the Japanese the town. military was repudiated at a joint meeting of the Shanghai Educa tional Association the Agricul tural 'Association, the China Cul- tural Reconstruction Association.
When at dawn the small batch of Japanese troops saw they were healeged by Chinese troops they hastily forced a way out and fled,
Gentral News.
JAPANESE ORGANISE MOBILE'
UNITS
Hsinhalang, Jan, 2: As a coun. ter-measure against China's guer- Illa tactics, the Japanese. have also organised mobile units in the north with the intention of harassing the Chinese rear.
Headquarters of the Japanese mobile units are reported to have been established at Puoting and Shihchlachwang, on the Pelping Hankow Railway- Central News," a
the railway and highway around Pingyao.
In eastern Shanat the Japanese The troopa are also inactive.
ported to have been withdrawn in three directions. One column, has retreated to Yutze near Taiyuan, another column to Bhoiryang on the Chengtao Railway and a third column to Bhihyang north, of Hohsun-- Central News,
WHITE POWERS "LOSE
FACE" IN EAST?
JAPAN ATTACKS, TO WEAKEN INFLUENCE IN CHINA
Looting still continues, but only of a spasmodic nature and on i minor scale. The "committee" of Chinese businessmen established here to maintain peace and order. has warned that looters will be shot by the Chinese police, but no wholesale execution is taking Meanwhile newspapers in New place. British. volunteers are guard- York were restrained in their com- ing the premises of the Asiaticment on the sinking of the gunboat Petroleum Company the British- Panay and the three lighters, only American Tobacco Co., the tele-the "Herald-Tribune" adapting an phone administration, waterworks attitude of truculence.
The bombing of British and American shipping in the Yang- tse River was interpreted by the Press yesterday as an attemps by Japan to make the white Powers "lose face" in the East, and thus lead China to place herself tri Japan's hands as obvious mas- ters of the world.
and the Post Office.
Mixed squads, of foreign volun- tears and Chinese police are guarding the wireless station and the Japanese power plant in the Eze Fang district which was badly damaged a few days ago when the Chinese tried to blow it up,
Russian and German volunteers
are mainly engaged in patrolling the streets. The only casualty 50 far among foreign volunteers is a Russian who was slightly injured by a bullet- Reister
#
JAPANESE ENTER
-TAIAN
I
It is reported in Paris that Mr. .C. Bullitt, the US. Ambassador, Informed M. de Tessan of develop ments of the bombing of the American gunboat and other boats on Sunday. which are being closely followed circles,
this policy of provocation.
humiliation." WARNING OF NEW BOMBARDMENTS
and
Jesuing a warning that If London and Washington are satisfied with cxcuses and regrets there will be new bombardments in a few days, the Communist newspaper "Human- Ite" states:It is evident that the
terrible Breworks on "the Yangtse are the result of the by French diplomatic policy of the United States, Great Britain, and France during the "L'Ordre" charges Japan with last five months in regard to attempting to have the white | Japan.” Powers. "lose face" in the Orient and writes:
Reproaching the "weakness" of: the democratic nations, "L'Ere Nouvelle" writes:-"The democratie^ nations are powerful and have all the means possible to ensure re- spect and prestige, but they allow their vessels to be sunk and be satisfied with regrets.”
GREATEST: FIRMNESS NEEDED
"If they (the Japanese) - can show that they respect no one and that they are the masters of the world, China, because of her tem perament and mentality, will put herself in Japan's hands and will The general attitude of New consent to be dominated and led. York papers, however, ts to point Shanghai, Jan. 2.
"If the great Powers do not want. out the undoubted sincerity of the Overcoming Chinese resistance, to limit themselves to a day-to-day | Japanese apology. - The "Daily Japanese troops after a spirited policy, if they want to assure the News" states: "The best thing to attack have now entered Talan, future, the greatest firmness is do in regard to the Fanay is to the first major objective in the needed in the present circumstan-keep our shirts on.!! drive from Tzinan to Tsingtao, ac- ces.”, tran
The "Berald-Tribune" declares
HANGCHOW QUET
cording to Japanese reports which Asking ifthe Yangtse incidents These assaults, beginning with. also claim the occupation of Fel-will reveal exactly what was behind that on the British car of Bir Hugh ching, about 25 miles south-west Mr Roosevelt's "trumpet call" | Knatchbull-Hugessen, the British of Tsinan.-
speech at Chiengo: "Le Petit Ambassador, are undoubtedly in- Benter.
Journal" writes
spired by propaganda, within the "What will follow depends, above Japanese armed forces which has Shanghai Jan. 2: Contrary to all on the reactions of American the tacit approval of the general. Chinese reports of furious aghting public opinion. There is no chief officers." in the Hangchów area, Japanese of State more sensitive to a popular reports state that. conditions there movement than President Hoose- are actually very quiet". An Assis-vett, and there is nothing more tance and Maintenance: Commia-likely to inflame Americans than ROME-THROWER WOER JAPANESE UNIFORM
slon has been formed in Hangchow, a Japanese aggression."--" Hankow, Jan. 2: A British eye-railway trame with Shanghai res "L'Epocque" states: There can witness of the bombing case at the tored, and Hangchow aerodrome be no doubt that it is no longer Intersection of Hankow Road and greeted the Arst Japanese plenes.question of military accidents; Ja Fuklen Road in Shanghai yesterday Meanwhile, Lieut-Col. Masutaro pan 16 ruthlessly pursuing stated that the bomb-thrower wore Natal, Chief of the Special Branch methodic action which has for its No explanation was given for its a Japanese military uniform but he of the Japanese Army In Hang- object the ruining of the influence closing down. It was underfood was not able to tell whether he chow sector, has been appointed and prestige of Europeans in China, that it had not suffered much los was a Japanese or not, a foreign adviser to the new Commission. The military parade in Shanghai in the Sino-Japanese hostilitie report states Tentral News Reuter.
was, it appears, the beginning of Central Neut
**
BOOK COMPANY CLOSES DOWN' Hankow, Jan: The Chung Hwa Book Company, one of the largest publishing houses at Shang-- hal, capitalized at $2,000,000, closed down yesterday, a raport received disclosedur ya