HONG KONG DAILY PRESS

BRITISH

POLITICIANS

SHANGHAI EXCHANGE MARKET HAS SHOCK

But Reports Prove To Be Not Substantially Correct

Shanghai, March 19.

The Shanghai Exchange Market, received a rude shock yesterday when a Hankow message indicated that Thursday's application for foreign exchange totalled £1,200.000, against which only £300,000 were allotted. However, the position substantially improved when a local check-up revealed that the applications totalled considerably less; while the allotment totalled approximately £450,000.

Leading bankers expressed themselves well satisfied with the allotments, and they quoted 1/2.1/10d. for sterling and 29.1/16 for US dollars for legitmate merchant business against importers' bills. Furthermore they were prepared to sell. to their regular clients at these rates for small amounts up to £100.

7

Small merchant business and retirement bills were done at a rate for sterling of 1/2.1/16 and for dollars at 29.1/16.

In the open market there were isolated cases of business done at 1/1.11/18 ler cash. 1/1 for March, and 1/1 was also done for April, although there were always buyers for this rate.

No business was reported to have been done in American dollars in the open market.

At the "close there were isolated buyers at the foregoing rates. with more buyers of sterling at 1/1 for cash. 1/1.11/16 for March and 1/1.0/16 for April. There were no buyers for American dollars at 281 for cash, 28 6/16 for March and 28 at for April-(Reuter).

GENERAL LI ORDERS BIG DRIVE NEAR SHANTUNG To Harass Japanese Left Wing Operations

way

Hankow, March 20

In view of the Japanese pressure on the Tientsin-Pukow Ball- front, where Japanese forces ate pushing to the south along the railway towards the Lauchowiuo junction of the Tientsin- Pukow and Lunghai railways. General Li Tsung-jen, Commander- In-Chief of the Chinese forces on the Tientsin-Pukow Railway front. has ordered a vigorous offensive against the Japanese left wing to to the south-east of Shantung.

The General's intention is to harass the Japanese and pressure on their forces operating along the railway.

Chinese aircraft went into action

to support their troops along the

exert

F

14

CABLES

MONDAY, MARCH 21, 1938.-PAGE

ASSEMBLE ASSEMBLE IN PARIS

IN PARIS FOR KOWLOON-CANTON RAILWAY

FINE CHINESE

RESISTANCE-

JAPANESE EFFORT TO ENCIRCLE TENGHSIEN

Hankow, March 19. The Chinese military headquar- ters has issued the collow.ng com- munique:

"A Japanese force. numbering between five and six thousand men, is attempting to encircle Tenghsleri on the Tientsin-Pukow railway in southern Shantung, but is meeting with bitter resistance from the Chinese forces.

"Chinese

reinforcements have been despatched to this section from Isuchow and they are mak- Ing 1 counter-offensive. In attempt to turn back the Japanese advance.

an

Meanwhile, Chinese forces opera-

ting east of the Tientsin-Pukow allway in southern Shantung, have

| recaptured several villages east of

the Yellow River,

IMPORTANT MEETING

RESHUFFLE IN CABINET

STATIONS

TIME TABLE

Ving

Local Localizzprom Local Local

+ }$(FM | FIP.M.[P.M. [T.M. (P.M.

512 12 1.08

UP TRAINS

Up 8/200

Loca)

SHA.M

SHA.M

Kowloon,Dep.) 6.30, 8.25 Yaamati.Dep.) 6.38, Shatin De $60

8.40 0.15

9.51

1001 12.20

123418 6,05 3,23 7.55 1,427..

8,31 8.03

0.09

.1

5,43 814

P.18

***

1,574,34)

3.58 8.37

0.20

| 1032 12,53

410

3.05.06

6.03 8.88

D.36!

10,43) 1.02) 1,43 2128.17

6.1 8.47

8.17 8.62

RUMOURED TO BE NEAR Tipe Dep. 7.05

Chamberlain's Dictatorial- Policy Vastly Unpopular

LLOYD GEORGE IN FOREFRONT

PARIS, MARCH 20. SPECULATION IS RIFE IN POLITICAL CIRCLES HERE AS TO THE REAL REASON FOR THE SUDDEN ARRIVAL IN PARIS OF A NUMBER OF ENGLISH POLITICIANS, MAINLY LEADING MEM- BERS OF THE OPPOSITION.

"

Several of these politicians, including Mr. Lloyd George, are "known to have conducted conversations with the French Government

or to have made arrangements to do so.

the

Reports of a conflict of opinion having broken out among mem- bers of the British Cabinet have had the effect of rousing hopes In Popular Front circles of a change in British foreign policy.

Allegations in many quarters are The possibility of a reconstruc- ATTEMPTS REPULSED

certain tion of the British Cabinet in order that

members of "Japanese troops, asiated by tanks and over 20 armoured care to bring the foreign policies of Cabinet are giving vent to dissatis- made several attempts to recapture Great Britain and France into faction with the trend of Mr. these villages. but were repulsed. alignment is said to be the object Chamberlain's tactics, which, it is pointed out, are towards the con- Japanese troops in this sector are of these Paris conversations.

centration round himself of a con- pushing into south-eastern Shan-

trol mare exclusive than anything tung along the motor road under

previously seen in a British demo- cover of artillery.. but Chinese

cratically-elected Government. troops are putting up a very stubborn resistance. Over 2,000 Japraese reinforcements are mov- Ing down the L'ngyi-Luthsien highway to support the Japanėse advance in this sector."

JAPANESE RETREAT "In southern Shansi, the Japan- ese forces along the north bank of the Yellow River, in the vicinity

of Maotsintu and Pinglu, are re- treating southward, and only * small number of Japanese troops are remaining in Pinglu. Chinese troops which advanced eastward of Pinglu, immédiately engaged about 700 Japanese whu were retiring fighting is still

railway and twelve bombers heavily JAPANESE RAID northward and

bombed the Japanese positions in

the vicinity of Tenghsier. on Fri- day afternoon.

An aerial Battle took place when the Chinese bombers, returning to their base encountered three Jap- anese bombers who were also re- turning to their base after bomb- Ing Hsuchowiu.

RAILWAY

K.C.R. Stations Bombed

Railway.

Five mis-

DICTATOR CHAMBERLAIN Labour members are openly ac- cusing Mr. Chamberlain of trying to set himself up 29 Britain's {"Dictator," and there have been sharp passages in Parliament this week over the attitude of the Pre- mier in dealing with questions re- garding Czechoslovakia and the Anglo-Italian negotiations.

One diplomatic correspondent writes: It looks as though hence- forth all polley will be born at No. 10.. Downing Street, as distinct from the respective Government departments. There is a feeling that Mr. Chamberlain's Cabinet Mr. David Lloyd George

colleagues are becoming little more subordinates, "About 2,000 Japanese troops are

In this connection, much interest than conventional moving back and forth between was aroused by the report that Mr. with the possible exception of Lord Heinyang. Cheyuan, Wenhsien Winston Churchill would arrive in Halifax, who appears to enjoy the

reports Premier's closest confidence. and Mengsten on the north bank Paris yesterday. of the Yellow River in order to from London. however, said that confuse the Chinese defenders on Mr. Churchill had postponed his! The south bank of the river."

visit.

progressing.

TO CUT RAILWAY

Later

BALDWIN MENTIONED.

It is reported that some Minis- ters are discussing the course that Mr. "Anthony Eden, who recently may be taken if a crisis develops, Unofficial Chinese reports from resigned from the post of Foreign and there has been talk of Earl Hsuchow state that one column of Secretary, and Lord Derby, both of Baldwin being called upon to re- Japanese troops went around Teng-whom have been vacationing en organise the Cabinet, which seems halen and appeared to the south the Riviera, are expected here a desperate suggestion now that the ex-Premier is in the House of of the city, apparently with the shortly.

Lords-(Transocean). Intention of cutting the Tientsin- Pukow railway between Tenghsien

LABOUR DELEGATION

the

BLUM MEETS L. G.

Paris. March 20. The Premier, M. Leon Blum, re- ceived Mr. Lloyd George yesterday. The veteran British statesman was accompanied by an attache of

Taipo Market

Dep. 7.08 FandingDop.7.19 Sheung hui

Shumchun

Dep. 7.4 9.01

Are 7.30 9.07

Canton.... Arr.

STATIONS

...

10.13 12.32 ∙102713.48

9.40 0.811048 107 1.46 2.176.32...

9,48) 9,57 | 10.84 118 1.63 23′ 6,28 0,40) 8.23 8.58

6.00%

DOWN TRAINS

9.00

(Lowal (neal! Lo08) Local Local | M. -Local Prices A.3. A.M A.M. | PM, Ian Skraj ↑ PMP.M.

Cantor Dep!

(T)

6,206,61

5.01 7.01

8.06 7.06

6.107.18

5.5t)

Shumchui ... Dop-) 7.00) 7,589,6212.17228|| 4.08)5,306,40 8,12 Sheungshul... Dep-17.19 3.05 10.08 12,242,80|| 417 5.40 6.47 Fanling...Dep 7.18 8.10 10.30 12.20 2.44| Taupo Market. Dep- 7.20 8.21 10,2012.41 2.85 Talpo Dep 7.38 8.20 10.28 1247 3,04 Shatin

Dop 7.40 8.40 10.35 1.01 8,18 Taumati... Dep. 8.c2, 8.52 10.81 1.14 3.31 Kowloon... Arr+ 8,08 8,58 10,67 1,30 3,37 (T) Will also run on Tuesdays. SH. Will run on Sundaya and Holidays only for 1st class passengers. S.0. Will ran on Saturdays only for 1st class passengers.

..

|2.31 7.81) 4,82 (1,37'7,37) 8.47

Baffet and Luncheon car will be attached to this train daily.

Further information may be obtained at the Railway Offices, Kowloon, or Canton from Messrs. Thos. Cook & Son, Ltd., Hong Kong, The American Express Company, Hong Kong, The China Travel Service, 6. Queen's Road, Hong Kong, Mesars, Wing On Co., Ltd., The China Emporium, Ltd., The Travel Advisers, 315, Gloucester Building, Hong Kong, and from The Hong Kong & Shanghai Hotels Co., Ltd.

By Order,

RD. WALKER, Manager.

THE

HONG KONG

PENINSULA HOTELL;

XONGKONG KOTEL; ́REPULSE BAY HOTELĄ

&

SHANGHAI

ASTOR HOUSE; PALACE HOTEL

HOTELS LIMITED.

In association with the Grand Hotel des Wagons Lita, Peking.

Forty Buildings Crash During Air Raid

NATIONALISTS OVER BARCELONA

Barcelona, March 20,

Forty buildings were destroyed in the course of two Nationalist air raids today, according to a communique Issued by The Ministry" of Defence..

Canton. March 19: The northwestern outskirts of The Chinese Aviation Bureau elaimed that two of the Jap Fatshan. Important elty on the was anese machines were shot down. | Canton-Shamshui one crashing on the short of bombed by a squadron of Japanese the Welshan Lake and the other planes this morning. in the vicinity of Tenghsien." siles were dropped, the resultant It Is reported that Chinese damage being still unknown.

and Lincheng in order to threaten It is also said that a delegation mobile units reached the south The Japanese ralders later

the rear of the Chinese defenders of five leading members of gate of Tsinghsien, west of Shif- turned to the Canton-Kowloon at Tenghsien. Chinese military British Labour Party is on its way chiachwang where the British line and bombed Cheungmuktou observers are of the opinion that here.. Ananced Peking Syndicate Coal and Shektan stations.

the Chinese forces in the northern Reconstruction of the British) Mines are situated.-(Reuter), Bocca Tigris was also visited by sector of the Tientsin-Fukow rail- Cabinet, It is declared bere: would the British Embassy in Paris.

the Japanese aircraft which, how-way front will be able to hold up be the signal for the commence-

The conversations last ever. did not drop any bombs the Japanese advance southward ment of a more active phase for there (Central News).

along the railway-(Reuter). French foreign policy in respect of quarter of an hour, and it is said Lloyd George brought Spain and North Africa. made that Mr. necessary, it is said here, by the along with him two large maps of HORROR AND latest successes achieved by Gen-Europe with which he sought to eral Franco.-(Transocean),

JAPANESE USE TEAR GAS

Bankow, March 19. Tear gas bombs were found on the bodies of several slain Japan-

ese soldiers during a

recent en-

counter in the vicinity of Washing.

KOPEI TOWN RETAKEN

Hsuchow, March 19. Three thousand peasant volun- The gas, in liquid form, was terrs recaptured Puyang, in south compressed in iron tubes which Hopel, after driving away the bear the mark "21th year of Japanese troops stationed there Shown."(Central News).

(Central News).

CHINESE OVERWHELM JAPANESE INVADERS

IN SOUTH SHANTUNG

Hsuchow, March 19.

China's overwhelming victory around Lini, important town in south Shantung, is reported in a circular telegram Issued by General Li Tsung-jen, commanding the Chinese forces on the northern sector of the Tientsin-Pukow Railway, front, through the Central News Agency.

HU SHIH-CHINA'S- PEACE ENVOY

Goes To England After American Tour

was sent

CLOUSTON FLIES SECRETLY TO N.Z.

Auckland, NZ, March 20,

RESHUFFLE FORECAST Leaving Sydney at 1.30 am.

London, March 19, today. Flying Officer Clouston While the Chamberlain Cabinet landed at Blenheim this after-is preserving an outward appear- ance of unity, rumeur continues to His departure from Sydney was gain currency that serious divisions It was exist and that further resignations sudden and kept secret.

noon.

#

Eighteen bodies have up to the present been recovered and about 50 are known to have been injured. Several district,provinces in Tar- ragona and Castellon were also bombed.---(Reuter),

BARCELONA AIR three BOMBARDMENTS

impress upon the French Premier Ibis views on the international

situation.-(Transocean).

EMPEROR RECEIVES

thought at first that he was pro- and a violent reshuffle. are Immin-FIVE ceeding on his return flight to ent.

England and nobody knew that

he was to fly the Tasman Sea- (Reuter).

GERMAN MEDICAL

SUPPLIES

Presentation To Be Made At Hankow

300 JAPANESE SAILORS DOWN WITH DYSENTERY'

Bhekk March 20

DISGUST

EXPRESSED

London, March 18.

Mr. Neville Chamberlain, the Prime Minister, speaking in the House of Commons today. ex- pressed horror and disgust over the Barcelona raids by the

Dormoy Wants To Occupy Catalonia

Paris, March 20,

A report appeared in several leading French

newspapers yesterday to the effect that M. Max Dormoy, Minister of the Interior, had sought to obtain the support of the Senate for the occupation of Catalonia by French troops.

The proposal, the reports added, met with strong opposi- tion(Transocean).

GENERALS .

Tokyo, March 19. generals who commanded Insurgents in which hundreds of civilians were killed, and said the the Japanese French and British governments troops in Central had agreed to appeal to both China during the parties in Spain to stop such Arst six months bombardments, and the French

Government had approached the BETTER AIR FORCE of the current Vatican with a view to obtaining

" WANTED BY DIET hostilities were its association with the appeal.--

Tokyo, March 19. Emperor Hirohi (Reuter Bulletin)

Assuming the initiative, the two to's guests at a FRENCH-OFFICIAL KILLED major parties in the Diet have luncheon at the

submitted Barcelona, March 18. ·

a joint resolution,

palace yesterday,

French vice-Consul at urging the Government to "bend Barcelona, M. Le Couteuse, was every effort for the development Heading the group

killed in today's air raid.

and replenishment of civil and Was General

The French Cousul-General, M. military aviation." Iwane Matsul, former Commander- Pinet, was wounded. in-Chief of the Japanese troops

Emperor

Hirohito

GREEN SHIRTS ARRESTED

The

15

Immediate action in the matter

The death roll in today's air is necessary, states the resolution. raids at present stards at 100 Because the China incident has j killed and 150 wounded. (Reuter) estranged international relations The motion, which is espected to be passed unanimously when it reaches the floor on Marh 22, also. urges the opening of new internal air routes (Router)

CANTON NAVY

REGATTA

Three hundred Japanese blue- Jackets, who suffered from dysen- Hankow, March 19.

tery and rheumatic diseases, have

Herr Trautmann,

Dr. left San Tsao Island off Chung- son of According to the telegram, over

county for Formosa to 10,000 Japanese troops on the Lini

Oskar Trautmann, German Amshan front had been subjected to severe

bassador to China, has arrived undergo medical treatment, al- counter-attacks by the Chinese

here from Hong Kong with the though 500 bluejackets still remain forces from all sides. After 'sus-

large quantities of medical supply on the Island, according to re- taining heavy casualties, they broke

donated by the German Red Cross.fugees arriving here today.

Only petty and warrant officers through the Chinese seige and fled

Herr Tmutmann will call on the

to Chubsien and Yishul, towns

local authorities to discuss details live on the island, while most offi- in Central China(Reuter) Hankow, March 19. northeast and north respectively,

of a presentation ceremony, which cers stay aboard the warships at Dr. Hu Shih, noted yesterday...

Chinese will be held here shortly-(cen- anchor in the bay. philosopher and professor of the tral News). Durng their retreat they were Peking University, who ambushed on the way by other units abroad as China's goodwill emissary of Chinese troops, who slaughtered by the Chinese Government, has left more of them and captured a large America for England to continue

Inspector R. Shannon left the number alive. A large quantity of his mission, according

Colony on Saturday aboard the arms and ammunition was left by Chang Chung-fu, who has just re-with medical supplies, arrived bere

Kaiser-I-Hind on retirement from the Japanese and was seized by the turned from America.

this morning from Hong Kong for

the Hong Kong Police Force. "Also FIRST AID CORPS Chinese troops.

The entire West River Flotilla aboard the liner were Sub-Inspec Dr. Chang who is also a profes- refuelling The air raid alarm was Among the Japanese casualties sor of the Peking University, was sounded shortly after the machines About 300 members of the The plat extended throughout consisting of five gunboats, Tarantor and Mrs. E Cunningham, Bub- were several high officers, the tele-sent abroad with Dr. Hu last year reached Then Ho aerodrome, but Shanghai War Zone First Aid Corps the country. The chief of the tula, Moth, Cicala, Beamer and Inspector and Mrs. T. Collins and Kram 388erts.

on the same mission (Central no Japanese raiders came over the and Chinese Monks First Aid Corps Green Bhirts has fled the country. Robin, anchored a few miles from Sergeant BV. Hutchison, proceed- The Chinese vanguard, which is News),

have arrived in Hong Kong.

Among material seized in the Shameen, took part on the occasioning on Home leavek bi hotly pursuing the Japanese, are

After refuelling the three.. Red They will proceed to Hankow on house of the Green Shirt chief of annual regatta today...... said to have reached Tangtouchen, The recapture of Chuhalen and Cross planes continued on their Wednesday to continue their ser- were 3,000 daggers marked with :à Many foreigners and privileged ... having "mopped up" many Japan-Yishul is believed imminent journey to the North-Inter-vices in the interior-(Central swastika, and large quantities of guests attended an excellently or

national). (Central News).

News Local Service).

ammunition-(Reuter Bulletin), ganised day of races.-(Router).

ese remnants along the way.

· MEDICAL SUPPLIES, FOR THE NORTH

Canton, March 19. to Dr. Three Red Cross planes, laden

city.

Japanese destroyers lurking in Manshan and Putal Islands south- west of Bocca Tigris have left for an unknown destination.-Inter- (national).

Rio de Janeiro, Mar, 18.. Thousands of Green Shirts were arrested by the police after dis- covery of a plot to assassinate the President and other high officials |today. 19

Entire British West River

Flotilla Take Part:

Canton, March 19.

Mr. H, V Wilkinson DB.O has been appointed an Unofficial Jus- tice of the Peace.

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