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Hongkong Daily Press.

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No. 35072 號式投柒零仟伍萬弍辭

日伍拾月堂拾年游线 HONGKONG,

THURSDAY, JANUARY 5, 1939. BREENA

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ANNUAL INSPECTION OF NAVAL UNITS HELD AT VALLEY

KONOYE CABINET RESIGNATION

FIRST OF JAPANESE

INTERNAL CRISES

Stronger Anti-Western Policy Expected

Decisive Control Of Two Main Political Parties

(FROM OUR OWN CORRESPONDENT) CHUNGKING. January 4.-Financial difficulties of the Japanese Government are reflected in,, the resignation of the Roneye Cabinet arcording to Chinese political circles. The task of getting the Diet to accept the enormous Budget has probably proved too great a task particularly as no progress was made by Konoye in organisirg the political life of the country on the basis of a United National Party. achieve what Kapoy It is felt here that one of the tempt to first tasks of the new Cabinet will failed to do in Japanese internal It is possible, however, be to effect decisive control of the politics. two main pollen) parties so as to that after the subjugation of the force them into an apparently political parties Konove may again United Party of a Fascist charac-resume the reins of government. ter.

7.

ENORMOUS STRAIN

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ARE YOU IN

THE NEWS? Photographs of recent events and personalities. which have been appearing in the “Hong- kong Dally Press" are now on sale at Messrs. N. » Lazarus. In Pedder Street, at 40 cents tach or three for $1,

First Stage Of Big U.S. Fleet Manoeuvres

SHIPS LEAVE IN

SECRECY

LOS ANGELES, Jan. 4 Reuter} Lighted only by battle lanterns. the United States Pacific Fleet steamed out of harbour before dawn with wartime secrecy for the first stage of the big Fleet manoeuvres. Seaplanes swept before the line of ships in search of theoretical sub- marines and mines.

The invading "White" deet is The new Premier. Baron It is the opinion here that a commanded by Admiral E C. Hiranume, 73 years old and * series of Internal crises will com- Kalbfus and defending "Black" bachelor, is the leader of the mence for Japan, and that this is feet by Vice-Admiral 'Adolphus. Kakumin Sha, one of the most indicative of the enormous strain Andrews. powerful reactionary cliques, He which the war in China is causing

All units of the Fleet will be has wielded considerable power be-apan The beginning of these in-employed in attacking and defend hind the scenes. Being a man of ternal crises has coincided with the ing under separate encounters by allfe. simple almost to austerity.expulsion of Wang Ching-wel and day and night and submarines he is very popular with the young the failure of Japan's peace and all types of aircraft wir par- military Fascists of the Japanese trigues.. army.

He is a lawyer.

A man of forceful character. It

is thought here that he will at

IN

DIFFICULTIES

FORMATION OF NEW CABINET

Finance Ministry Obstacle

(Reuter)

TOKYO, Jan. 4 Baron Kiichiro Biranuma was summoned to the Imperial Palace at 9.42. p.m. and In- structed to form a Cabinet.

TOKYO, Jan. 4 (T/Ocean) —

Chinese circles. therefore, look

ticipate.

Personnel involved is about 3,000

rör ar increasingly totalitarian officers and 50,000 men. The main regime in Japan, attempts to pur-fect is expected to return to the sue the war in China more aggres-West Coast early in June. sively possible, and a more irre- conellable attitude towards Wes- tern Powers. and closer Co- operation between Germany and Japan.

FINANCE PRECARIOUS

"NEW BABES NEEDED WASHINGTON, Jan. 4 (Reuter) The Navy Department informed Congress that it urgently needed 30 new aircraft, submarine, des- troyer and" mine bases in the TOKYO, Jan. 4 Int'l)-With the United States and outlying posses- reorganisation of the Cabinet Mr.sions to meet the normal opera- sethin Ikeda, Finance Minister. tions of the fleet. will also resien. Backing the Prime Minister. the Finance Minis-bases as desirable in the mid

ris against further enforcement Pacific, Alaskan and Puerto Ricn of the National Mobilisation Law

areas which it regards as neces and threatened to resign. last month on the ground that public sary to be accomplished as soon

aa possible. finance in Japan is in a precarious position.

Mr. Ikeda, representing

the

The Navy Board named nine

powerful Mitsul interest, is regard- 11,000 TAXI

Baron Hiranum is said to have led as one of the ablest Japanese agreed to accept the Premiership financier, and his post is hard to according to political circles this .. evening. The appointment la to be expected, however, only after the return of the Keeper of the Privy Seal, Mr. Yuasa, who by order of the Emperor is visiting the Genro. Prince Saionji, for consultation. There is some opposition to a Premier, and Mr. Some difficulties in formation of millitarist as

There is strong complaint among the Japanese people that the budget is too high for war pur- pose plus the dimculty of securing foreign loans.

the new Cabinet have, it is said. Hachiro Arita. Foreign Minister. still to be surmounted especially may become the next premier, He regarding the Ministry of Finance. Jshares the views of the militarists According to unofficial information, and initiated the anti-Comintern the War Minister (Gen. Itagaki) pact with Germany. the Foreign Minister (Mr. Arita) the

Welfare Minister (Mr. Kido) and

*DRIVERS GO

PICTURES TAKEN at Happy Valley yesterday when the Commander-in-Chief, Vice-Admiral Sir Percy Noble, K. C. B., car- ried out his annual inspection. Top left: The Royal Marines marching past the Saluting Base. Top right: Vice-Admiral Noble taking the salute: Bottom left: Spectators at the Review, with the General Officer Commanding. Major - General · A. E. Grasett. DS, O., M. C., in the centre: Boitom right: A Naval column marching past. (Photos by A. A. Kahn),,

SPANISH WAR PROGRESS

Franco Masses. 600 Planes

CATALONIA DRIVE

PARIS, Jan. 4 (T/Ocean)— Six hundred aeroplanes have been massed by Gen. Franco to support his present offensive against Catalonia, according to reports reaching here from Spanish Republican circles

Huge squadrons are engaged the whole day long dropping bombs on the road leading from Pobla de la Granadella to Ulldemoline with the apparent object of preparing the ground. for a massed onslaught of Tanxs.

J

+

The Republican circles are now fearing that if General Franco able to still further increase the

ON STRIKE intensity of fighting the Repubil-

Demand Increase

mand

In Earnings

cha resistance will break down. The Nationalist advance is now' threatening the major positions of the Republican army defending the approaches to Barcelona.

It is firmly believed in that city Gen. Franco is aiming at NEW YORK, Jan. 4 Reuter) that Eleven thousand taxi drivers hero achieving a decisive victory before to-day went on strike. They de- the meeting of Mr. Chamberlain

that non-Union drivers and Mussolini in Rome. should not be allowed to drive in (Continued on Page 9) the city, commission on earnings TOKYO, Jan. 4 (Reuter)-Prince be increased, nine-hour day and

In order to prevent taxi-owner- Cabinet session which began at drivers, of which there are 5,000, 10.30 a.m.

from continuing to run the ser-

CABINET SESSION

the Minister for Education (Mr. Konoye tendered the resignation a week's holiday in a year. Araki) are to remain. The SD:: pointment of Minister of Marine of the Government following a

15 still doubtful. Vice-Admiral Hasegawa and the present Chief

The Japanese press forecasts vice, a number of incidents oc- of the Navy, Vice-Admiral Yoshi- da, are being mentioned as possible that only three out of the present curred and the entire police force successors of the present Minister. members of the Cabinet are likely had to be called out for emergency Admiral Yonal, who might how-to participate in the new Cabinet, duty.

ever, remain in office.

which it is generally expected will

be headed by Baron Hiranuma, - -

TAX PROTEST

Many names are mentioned as

Baron Hiranumta was formerly a PARIS, Jan. 4 (Reuter)---Pro- candidates for the post of Minis- ter of Finance including the for- Vice-Minister in the Salonii Ca-prietors of cinemas in Paris have mer Minister of Finance, Mr. Yuki,binet. Minister of Justice and Vice- Sone on strike for a week in pro Vice-President of the Bank of Ja President of the Privy Counell.

paní, (Mr. Tzushima). President o* the Nippon Yusen Kagum! and the present Deputy Minister ofi Finance, Mr. Ishiwatari.

THE DOLLAR

*T.T. ON LONDON: Is, 2,7/84.

T.T. ON NEW YORK : 287.

London Silver Market

(Our Own Correspondent). London; Jan: 4. London silver prices to-day were, down 3/16 for Bpot and unchanged for Forward;

Jan. 3

21-1/8

Spot Forward ....20-3/16

Jan. 4 20-15/10 20-3/16

SHIP'S OFFICER

MISSING

A report has been received by the police from the captain of the s.s. Deslock that the chief engineer. Mr. Charles Christian, is missing from on board since three o'clock yesterday morning.

test against the decision of the Paris Council to increase the en- tertainment tax.

Owners of theatres, apologising! to patrons, declared that they had to increase the price of seats 50 per cent, in order to meet the increased tax.

The

WORKERS EXPELLED

PARIS, Jan. 4 (Reuter)-Two hundred and fifty Polish workers have been expelled from France tollowing the recent strike. workers, who are chiefly from the Mr. Christian is 68 years of age, mining and metal industries, now tall and thin, clean-shaven and of find themselves without French fair-complexion. He is a native of nationality and unable to return Aberdeenshire, Scotland. When to "Poland as Polish subjects, last sech on the deck of the ship. They have been sent to the

he was in his working togs with a frontier and hope to settle in white boller suit on

Belgium:

GUIDE TO THE NEWS

PAGE 2-Contentious rule in hockey. Next year's Davis Cup. Hammond forgets his bow tie. Softball notes. U.S. ofer to Cotton. Ladies' golf draw.

PAGE 3.—Radio Programmes. PAGE 5-1938 ear of unpar- alleled hot for Japan. Film studios to be merged. Crossword puzzle. Diary of local events.

PAGE 8-Women's page Fa-

shlanable society wedding, Newsettes.

PAGE 7--Naval inspection at

Valley. Murder trial.

Clerk accused of assault. Robbery charge. Wang taken to task." PAGE & Leading article: China rallways. Hello and Goodbye.

PAGE 10-Food page. Need of Women more dental care.

who cannot cook PAGE 11, 12 and 13-Finance

and commerce."

PAGE 14, and 18. Shipping

news and directory.

ANNOUNCEMENT

Our London office informa that the following are shortly likely to visit The "Hongkong Daily Press" this year: Mr. Neville Chamber- hin. Al Capone, the Duke and Duchess Of Windsor, Pearl Duck Charlie McCarthy, Laurel and Hardy, Walt Dis- Bey, etc. This is confirmed by Gomay.

South Africa Follow On In Test

M.C.C. IN STRONG POSITION

NOURSE MAKES A CENTURY CAPETOWN, Jan. 4 (Reuter) -In arrears by 273 runs on the first innings, South Africa followed on to-day, the fourth day of the Second Test match, and at tea time had lost one Mitchell wicket for 87 runs. who scored 42 in his first knock, was taught by Ames, off the fourth ball from Kenneth Farnes which

an in- swinger. Van Der Byl and Rowan then batted confident-

was

WAR IN SOUTH CHINA

Chinese Launch Terrific Attack On Fa Kiang

Japanese Taken By Surprise Suffer Heavy Casualties

(FROM OUR OWN CORRESPONDENT)

CHUNGSHAN, Jan. 4.—Chinese troops launched a terrific attack on the Japanese positions in Talpingebong and Fa Kiang, about 25 miles north of Canton yesterday, and inflicted heavy casualties on the enemy who were taken by surprise.

Two Japanese detachments ar at Fa Klang under the command of Llout.-Col." Yamasaki, who wired to Canton for reinforcements, A battalion under the command of Lieut.-Col; Takahashi was: rushed to Fa Klang and saved the Yamasaki - detachment · from Completa annihilation.

This account was admitted last night in a Japanese report. This means that Tsungfa is now in the hands of the. Chinese. As the northern Japanese outpost is now at

1 Klang. Japanese forces have been inactive, thinking that Wang Ching-wel, may bring peace,

WANG CHING-WEI

INCIDENT

The Cabinet crisis in Japan win No Further Steps

have a further effect on the war in South China The reported resignation of Princd Konoye is due to inability to raise money for the war chest, while the -militarists demand every sacrlace to carry on the war.

mere

In Matter

WARNING BY THE

GOVERNMENT."

CHUNGKING, Jan., 4 (T/Ocean),

Owing to the precaricus political situation in Japan Lieut-Gen-Whereas political circles here are Keni Dothara, Director of the wondering whether Wang Ching- Special Service Section, is reported we will react in any way to the action of the Kuomintang. It is to be somewhere in South Chinaearned from a reliable source that engaging in peace moves with puppet politicians. Though a member of the Younger Militarist gards the incident as closed.

It is pointed out, however, that Earlier in the day. the South Party, Gen. Doihara realises the

in the event of Wang Ching-wel Africans were dismissed for 236 futility of continuing the war and

Ty.

the Chinese Government now re-

in their first innings in reply to is using every effort for peace.seeking to start negotiations with England's 550 for nine wickets de- clared.

All these manoeuvres are re- the Japanese, the Central Govern- garded as Japanese weakness, Itment would take further disciplin- Five hundred spectators were la sald that the Chinese forces are ary measures against him and his

supporters. present in glorious weather but taking advantage of the present

At the present the Central Gov- the wicket was showing signs of situation to stage a counter-attack wearing slightly and was likely to on the Japanese position in Sam-ernment is not contemplating tak-

ing any further steps in the mat assist spin bowlers whom. Wally. Bhui, Bainam and other points,

|ter." Hammond, the English skipper, utilised immediately. Verity meet- ing with success in his third over of the morning.

"MR. DUFF "COOPER

TO TOUR U.S.'

LONDON, Jan. 4 (T/Ocean)—

A report that 200 of Wang Ching-wel's_followers have been arrested in Ci ogking has... · beet » denied."

In the meanwhile Generalissimo

Dudley Nourse, who was not out 74 at the close of play yesterday, M: Duff Cooper, who resigned his Chiang Kai-shek has summoned & carried his score to 120 when he post as First Lord of the Admiralty meeting in Chungking of the Gov- was given out Lb.w. A ball fromst Cctober intends to deliver aernors of the provinces of Kwe!- Verity struck Nourse on the toe series of lectures in the United chow. Szechuan and, possibly, Tun- and he started running for a leg-States, according to an announce nan. The conference, which is de- ment in the "Dolly Telegraph" to-signed to help to bring about. bye. Verity's appeal was upheld.

Verity Bnished up with Ave day. The exact date on which improved personal contact between the journey will begin la not yet the leaders in southwest China, will known

take place in the next few days. The chief subject of discussion Up to October, 1938, about ten will be the question of economic million

refugees had 'received | integration and unification at direct or indirect help from the southwest Chinas |National Relief Commission."

(Continued on Page 9)

wickets for 70.

M.C.C. 1st Innings, 559 for 9 wickets declared (W. R. Hammond 181, Ames 115, B. H. Valentine 112; Gordon 5 for 157),

(Continued on Back Page)

"

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