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COLLECTIVE SECURITY

SYSTEM FOR FAR EAST

Japanese Influence Extends To Eight Provinces

HONG KONG DAILY PRESS, TUESDAY, JANUARY 4, 1938.

LANDING PARTY STATUS IS DEFINED Japan's Spokesman On S.M.C. Administrative Rights

EMERGENCY ECONOMIC MEASURE China and "consequenty exposed to attack by Chinese in all sorts of

"FOR SOUTH

CHINA

Tokyo, January 3.'

The views held in Japan on the situation In China are. interestingly reflected in an article to-day- In the “Miyako Shimbun" which says that Japanese Influence now extends to five provinces In North China and three provinces In Central China comprising the most important towns in China such as Pelping, Tientsin, Shanghai and Nanking. The paper expresses the opinion, that Japan's new policy will be formulated with a view, firstly, to safeguarding her actual position in East Asia; „seeöndly, tulfilling her world obligations as the standard bearer agalast Communism; thirdly, successfully discharging her re- sponsibility in connection with the rehabilitation of China.

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The Miyako Shimbun asserts, new treaty in conformity with the that the three-point platform will new collective security system. necessarily entail the withdrawal

A

The Miyako Shimbun" opines that an emergency economic paper suggests that the measure" must be taken for Cen-

of "recognition, of Generalissimo Chiang Kai-shek's administration. The

ss to

tral and South China sa

currency. The

Japanese Government will even- tually not deal with Chiang Kai-stabilise Chinese

Being "part and parcel of the Japanese Expeditionary Force in ways," the Japanese Special Nayal Landing Party' in Shanghai feels that it should take "self-defensive measures within the Settlement. similar to those taken, by troops in occupied areas."

This declaration was made by a Japanese Embassy spokesman-In reply to questions regarding the status of the Landing Party as a de- fence force of the International Settlement, in the light or regula tions against acts against the Japanese forces issued by Vice-Admiral Kiyoshi Hasegawa. Commander-in-Chief of the Japanese China. Sea Fleet. states the "North China, Dally News."

"The Landing Party. Is à component part of the Japanese forces now engaged in hostilities with Chinese troops." the spokesman stated. "Consequently, it must take similar steps for self-preservation as do other Japanese units."

The Japanese authorities do not vealed by a Japanese spokesman deny the jurisdiction of the during questioning related to the Shanghai Municipal Council in the bombing incident from the Che- Settlement area within the Japan-kiang Road Bridge. He admitted, ese defence sector, the spokesman however, "that the Japanese "au- emphasised.

thorities would proceed "very-caus tiously where the application of these regulations to foreigners with extra-territorial rights were concerned.

RIGHT "FORFEITED" "The Shanghai Municipal Coun- cil, however, forfeited for a time Its rights of administration over the eastern Settlement area when

shek's adminstration in conducting paper declares that the Japanese the Shanghai Municipal Police

various undertakinga In China though no formal statement of the

08 'cop-

their superiors on August 17," the took to its heels on orders from. spokesman pointed out.

Government will take scientious a measure as ever for withdrawal of recognition will the safeguarding of third party be issued. The paper emphasises Interests and rights in China and

"As a consequence, the Japan- that a collective 'security system all negotiations in the matter

ese Naval Landing Party tempor- will be established for the Far will be conducted on the spot forarily had to assume the authority East under the anti-Comintern which the paper surmises that

that normally was that of the po- banner between Japan. Manchu kuo. New China, Slam and other Far Eastern nations and 11 possible in co-operation with Britain and America while the old Peace Pact and Nine Power Treaty will be will be especially strengthened.- 'denounced so is to conclude a | Bruter.

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DICTATORS

EXCHANGE

GREETINGS

Berlin, Jan. 3.

On the occasion of the New Year, Chancellor Hitler sent the follow- ing telegram to Bighor Mussolini:- "I pray your Excellency to accept on the occasion of the New Year my heartiest wishes for your per- sonal welfare and for the further **success of your historically so im-

portant work."

Mussolini replled:---

"I express to your Excellency my hearty and deeply, felt thanks for the good wishes which you have so kindly transmitted to me. At the same time I would convey to your

Excellency

sincerest my

wishes for your personal welfare

and, for the constantly Increasing success of your great and brilliant

work."-

Transocean News Service,

إلى

NANKING

BOMBED

Chinese Planes

Launch Attack

Shanghai, Jan. 3.

Nanking to-day was bombed by Chinese planes for the first time since the occupation of the city by the Japanese on December 13, according to a trustworthy report. No details are available but it is believed that Soviet built ma- chines, and possibly town by -Soviet airmen, took part in the

raid -- Beuter.

HEAVY CASUALTIES ON TSINFU LINE

Hankow, Jan. 3: Heavy casual-

Japari's diplomatie staff at Pellice," he added. ping. Shanghal and Nanking will be enlarged and strengthened con- sequently, the paper argues. Japan's diplomatic stair at Peiping

ITALIAN !WIRELESS

PROPAGANDA

Britain Compelled To Take Action

This authority. the spokesman continued. was now being gradu- ally restored to the police.

Questioned regarding the status of the Japanese meinbers of the Shanghai Municipal Police who re- mained in ine easter area follow- ing the orders to withdraw. the spokesman stated that these had remained there "voluntarily as in- 'dividuals."

Asked if the prisoner now held regulations, the spokesman sald by the police came under these

he did, but, that he was now being questioned by the 3.M.P. He was not able to say whether any re- quest Kad been, or would be, made Japanese authorities. In principle, for him to be turned over to the

the regulations applied to him.

If an act is committed against a Japanese soldier, anywhere else (than in Hongkew) in Shanghai, will the same regulations apply? Yes. in principle.

ALLEGED CONFESSION Is it true the prisoner has con- fessed he took part in the affair and that he is one of a gang. with headquarters in Japanese terri tory, about 90 from Shanghai?. -The facts you state have not The presence of the police was deerned by the Japanese authori-been brought to our knowledge by the S.M.P. who are examining the ties as necessary at that time to

prisoner. maintain "law and order behind the lines."

The warders of the Ward Road gaol, the spokesman said, could not be regarded in the same cate- gory as they were not engaged in police duties.

London, Jarı: 3. The *Daily Telegraph" this

FOREIGNERS' POSITION morning states that if the Italian wireless propaganda in the Near The Japanese authorities clalm East does not change its present that the application of Admiral tone regarding Britain. Britain Hasegawa's ten regulations con- will be compelled also to comment cerning subversive actions against on domestic conditions in Italy by Japanese forces apply to every- wireless reports in Italian, and one, Arable.....

In this case "Britain would not shun to distribute by wireless all news on economic conditions in

foreign or otherwise; and anywhere, north or south of the' creek-in principle. This was re-

Italy in order to counter balance ATTACK ON BIG

Italian Government in regard to anti-British propaganda

of the

stations,

The paper further learns that a Wireless service i Spanish" and Portuguese destined for.. South America *** under preparation. The Spanish broadcasting wil start within a few weeks after the Arable wireless service which is now beginning.— Transocean Nema. Service.

CHINESE.

RECAPTURE

HANGCHOW

BUSINESS PROCEEDS'

U.S. Attorney General Wants Reform Of Anti-Trust?

Legislation

Washington, Jan 3: Attorney- Generul Cummings in his annual report recommends Congressional investigation of the Anti-Trust laws, calling the statute in the present furm "Inadequate for the purpose of dealing with the many ramifications of the problem."

YOUR NEW YEAR RESOLUTION!

ALLSOPP'S

ALWAYS!

ŠOLE AGENTS:

CALDBECK, MACGREGOR & CO., LTD.

EXISTING CURRENCY DIFFICULTIES

Dr.

H. Schacht On Suppression

INTERNATIONAL ECONOMIC RELATIONS

Berlin, Jan. 3. Would the regulations apply to

The President of the Reichs- bank, Dr. Hjalmar Schacht, dia- foreigners as well as to Chinese,

cusses in the January edition of a 1 principle, throughout Shang- hal?-As explained, these regula-periodical published by the Ger- tions will be applied to all per-man Law Academy, the question sons, but for the adminstration of whether it is not possible to economic the execution of these laws, due facilitate international regard will be taken in connec- relations by suppressing the exist- tlun with the principles of inter-ing currency difficulties. national law and the stipulationa of existing treaties,

In the case of foreigner being involved in a similar incident, the spokesman said in reply to an- other question, the case will be treated very cautiously," *

SLUMP IN U.S.

Heavy Government Spending

New York, Jan 3. Surveying the past year; Mr. Winthrop Aldrich, Chairman of the Chase National Bank, declares that the December business figures sug- gest that the decline has ceased

and the business curve is flattening ont. Referring to the rapidity of the decline he states it had been no time for weakening the financial âtructure exhaustion of the people's savings which a slow and prolonged decline' would have in- volved.

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Mr. Cummings also stressed the desirability. Hankow," Jan. 3.

of expediting the Mr. Aldrich attributes the slump It was reported here this after-administration of justice in the partly to a heavy Government noon that Chinese forces have re-Federal courts, and advanced two spending but among the encourag- captured Hangchow.

suggestions similar to Presidenting political developments he men- Twenty Chinese bombers recon- Roosevelt's Il-fated court reform tions the Federal tax revision plans noltred over Hangchow and the programme, namely the appoint and proposals to balance the vicinity along the Chintang River ment of an administrative officer budget by economics.---` and then bombed Japanese pos- supervise Federal courts and Renter Bulletin Service, dons at Chakow, Chienkise and increased "flexibility" for the Kunghsinklao. Thirty bombs were courts. dropped on mitory establish-

This K similar to President ments, several direct hits being Roosevelt's plan whereby the Chief Reuter.

- registered. The Chinese planes returned safely to their base-

International News Agency.

tics were suffered by both sides in Over Hundred

saveral bloody engagements bë-

tween Chinese and Japanese forces Executions In

at points along the northern sec-

tion of the Tietsin-Pukow Railway Soviet Union

during the last few days,' accord

ing to military reports received

here to-day.

Moscow,, Jan. 3.

It is officially, atated that the.

In a single sanguinary battle number of political executions on

fought on New Year's Eve, the re-

New Year's Day

ports state, the Chinese last no lese than 5,000 killed and wounded. siderably.

while correspondingly heavy ca-

Japanese,

The

in the Soviet Union exceeded one hundred con- Among the executions enumerated in the official list

talties were also suffered by the were seven in Leningrad, two in Pskov, eight in Archangel, Ave in Chinese various

units Tiffis, eighteen in the Tartar re- operating on the northern Tainpu public. Charges against the ac- line, it is stated, have been cused included conspiracy against instructed to fall back on Tawen- the lives of high' Soviet officials. kow, Shihsul, and Ningyang. in embezzlement of publlo funda, preparation for a

stand sabotage, and "nationalist separa- against the Invaders

· Elem."---- Central News

Hew

Trònzoscan Neira Service.

Justice could assign Judges to any dietrics to hear special cases.-

Scene during the boys' boot race at the Kowloon Crick annual children's sports held, on Saturday afternoon. Chenr Studio);

Dor

THE

HONG KONG

PENINSULA HOTEL;

HONGKONG HOTEL, REFULAE RAY HOTEL;

SHANGHAI

ASTOR HOUS; PALACE HOTEL},

HOTELS LIMITED.

Isociation with the Grand Hotel de Wagona Lita, Peking.

Further Mechanisation Of British Army

EXTENSIVE PLANS DISCLOSED

Dr. Schacht stresses that the gold ourrency system which, so greatly contributed to raise the standard of life of nations adher- ing to it was not an invenition of capitalism was it based on philosophical dogmk but was sole- ly a useful technical instrument for regulating international com- mercial and currency relations.

Within recent years the danger of excessive dependence of nation- al economics alike on each other. Bellsha, and are to be placed in and on fluctuating conditions or effect as soon as possible, it is re- the world market had rendered it ported in the "Daily Herald" this necessary to shift the centre of morning. It is intended in the ternal economic activity. gravity from international to in-course of the present year

This quip half of the Infantry bát- necessity was the basis of the Ger- talions with machine-guns instead

London, Jan 3... man four-year plan.

of rifles. Furthermore, hundreds The British Military mission to of fast tanks are to be provided Portugal will leave for Lisbon in so that military operations can be the beginning of February, ac- speeded up and 8.000 horses in the cording to the diplomatic corres- artillery are to be replaced by pondent of the “Daily Telegraph." tractors. The air defence branch The departure had at first been of the territorial army is to be fixed. for the beginning of this equipped with the most modern month.-- anti-aircraft guns, searchlights Transocean

London, Jan. 3. and detecting apparatus. In com- New steps for further mechani-menting on these extensive plans. sation of the British Army has

the "Daily Herald" declares that the Secretary for War intends to been planned by the Secretary of State for War: Mr. L' Hore-

mechanise the Army to such an extent that half a dozen men will possess the fighting strength of a whole battalion, Transocean Neur Service.

Germany wished to develop her internal economic activity in such a manner as to render it possible for improved and increased ex change of goods" with other coun- tries.

Dr. Schacht concludes that it remains to be seen whether the International gold standard can in future depend, as in pre-war times on an implicitly accepted gentle- men's agreement or whether de- finite omelal pacts will be neces- saty to enforce Transocean News Service.

FRANCE'S DIPLOMATIC

REPRESENTATION ABROAD

Paris, Jan. 3.

STRIKE" "AGITATION

IN FRANCE

Spanish Anarchist Is Named Leader

Paris, Jan. 3..

to

MILITARY MISSION TO PORTUGAL

GERMAN MEDIATION WILL FAIL

Stiff Japanese Terms

Hankow, Jan. 3, The concensus of opinion here 1s that the "second German According to the paper "Matin" attempt at mediation will most foreign agitators are at work or="likely, fall. It is stated that' ganising strikes in Lyons notably the Japanese terms are so sá in cement factories: The paper that even leading Chinese pacifista asserts that the strike leader is a are against their acceptance.LA The question of French diplo-Spanish anarchist who recently widely circulated rumour that four matic representation abroad

came to France with instructions Chinese delegates are going to;. discussed by the well-known poll to use every means to stir up re- Nanking from Hankow to discuss tical writer, Vladimir. Dormerson

volutionary agitation among terms with General · Matauf French workers, | in"to-day's "Figaro.”

The vast emphatically denied. The writer remarks that it is majority of workers, according to Reuter often said that the matter is not strike movement and the situation the the paper, are opposed to

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Urgent since relations between France and the United States are since the workers are unwilling to in Lyons is now very strained-

excellent. On the other hand, however, the reason given for not obey any longer the requests of

foreign agitators.----- having appointed French Am-Transocean News Service.

bassador to Rome for the past fourteen months is that relations between France and Italy have become very difficult.

Dormesson writes that under these

whole circumstances, the question becomes incomprehen- sible and concludes by saying that Ambassadors' are there to nego- tate and that negotiations are necessary whatever the state of relations between Countries may be Popean News Hérvice.

A

J.

MARYSE HILSE MISSING

Baara, Jan. 3" Miss Maryse. Hilse, the French aviatrix, who was attempting a re- cord flight from Saigon to Fade. is missing." he was last seen over Jank at 4:15 GMT., and has not arrived here yet. Eer plane was not fitted with wireles Restor

STÁLIN'S TITLE

London, Jan. 3. That Stalin is to receive the title of "Flat Citizen" or "People's Leader in the Soviet Union". with- in the next few weeks in predicted by the diplomatic correspondent of the "Daily Herald."- Frantorson

VISITING SPAIN Nine members of Parliament left London to-day for Spain at the invitation of the Spanish Govern- ment. They are touring a number of the fronten Renter's Bulletin Sevier,

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