O.K. SAUCE.

WEATHER FORECAST:~E. WINDS, MODERATE TO FRESH; CLOUDY, some drizzle or light RAIN.

Chert

Hongkong Daily Press.

Post Office in the United Kingdom.

Registered as a Newspaper at the General

Served in the best places

ESTABLISHED 1857 西

刺孖

No. 250N2

铁弍拾捌零仟伍弍醇

HONGKONG, TUESDAY, JANUARY 17, 1939.

15-19 Marina Hovas, Queen's Road Central.

G.P.O. Box No. 1.

SHANGHAI FOREIGN EXCHANGE MARKET SPANISH WAR

SHOCKED BY CHINESE CUSTOMS DECISION

Acceptance Of Anglo- SEVERE AIR RAID

Japanese Agreement Urged By Bankers

SIR FREDERICK MAZE DECLINES COMMENT

CHUNGKING, Jan. 16 (Reuter)-The Customs announcement has caused a profound shock in Shanghal although the foreign exchange market. has not yet reflected the seriousness with which it is viewed,, easing only slightly. It is feared that unless a new modus vivendi is reached shortly there will be a threat to Customs loans, bondholders receiving no further pay- ments since the Japanese refuse to make any payment until the Chinese accept the Anglo-Japanese Agreement of May 3.

serious

Chinese bankers in Shanghai met to-day and considered tele- graphing to Chungking urging acceptance of the agreement. They argue that all the agreement asks of China is to pay £30,000. monthly on the Boxer indemnity due to the Japanese since the hostilities and to disgorge $25,000,000 worth of Customs revenue banked in the Hongkong Bank,before the hostilities."

ON CHUNGKING

Many Civilian ̈

Casualties

CHUNGKING, Ján, 16 (Reuter)-

A serious ir» rald on Chungking took place to-day when 21 Japan- ese planes dropped bombs on "both banks of the Chialing River and western suburbs of Chungking.

Many dvillans were killed while Chinese planes engaged the bom- bers.

As Chungking Is "crammed with refugees and possesses no open spaces it would be a death-trap '1 bombs were dropped in the centre of the city

"Transocean" adds that Chung- king suffered yesterday another Ja- j panese air attack which, only of short duration, was of extreme violence. About 100 bombs were

the western dropped mainly on district of the town destroying many houses,

When the 42 Japanese bombers

In return, therefore China would of which is due on July 1. will not were reported approaching a num be reimbursed by approximately be remitted.

ber of Chinese pursuit planes took "The Inspector-General of Cus-off and according to Chinese re- $50,000,000 the amount the Jap- anese would have paid as their toms, Sir Frederick Maze, who is ports succeeded in chasing off a share of loans. If China had not refusing the remittance under

part of the attackers so that only insisted to pay the loans fully her-orders from Chungking. declines to 27 Japanese planes actually

reached Chungking.

selt.

make any comment.

COMPULSORY EVACUATION CHUNGKING, Jan. 18 (T)Ocèan!

After stressing the importance The first loan to be affected by One Japanese bomber was shot of payment of Customs loans to- Chungking's Customs decision will down. The wreckage was found wards maintaining China's cur-be the Anglo-German Loan of 1898 east of Chungking. rency credit. the bankers stress on which interest on payment is: that since China took on the onus due on March 1: The Reorganiza- alone to pay the loans againsttion Loan of 1913, which is one of British advice it was up to China, the most important loans to be -All main roads. leading out of if she was unable to pay the loans, secured on the Customs will be the Next payment on to accept the Anglo-Japanese pro- next affected. posals of joint payment If only in the latter is due on July Ï. order not to antagonise Britain and America.

MARKET PARALYSED LONDON, Jan. 16 Reater) The

were crowded this Chungking morning with fugitives seeking re- fuge outside the city. from Japan- ese air ralds. The flight of the masses was in consequence of the Japanese air attack on Sunday

It is authoritatively stated that market for Chinese bonds was which was the most violent that £125,000 due as monthly remit-cornpletely paralysed following the Chungking has yet experienced. tance to be deposited in London threat to the service on the Cus- to-morrow towards the half-yearly toms loans. payment on the Reorganization Loan of 1913. the next instalment

GUERILLA ACTIVITIES

In order to prevent unnecessary Well-informed circles are not in-loss of life and panics on the occa- clined to regard the threat as in-

ston of air raids the authorities

dicative of a change of the Chinese

(Continued on Page 9) attitude in respect of foreign

creditors but are of the opinion that China is at present declin- ing to assume responsibility for obligations of service, the sources for which are controlled by Japan. Moreover it is pointed out that

HEAVY FIGHTING REPORTED ́IN JEHOL

TLENTSIN,

Jan. 16. (Int'l)-

IN NORTH HUNAN while the authority of the Chinese Heavy fighting broke out over th

Customs office remains intact all week-end at Malanyu in Jehol CHANGSHA, Jan. 16 (Central-possible

measures to safeguard between units of the 8th, Route While there is no major fighting. Sandholders' interests will be taken. Army and Manchukuo" troops Chinese guerilla activities on the Far Eastern banking circles do not commanded by Japanese officers: north Hunan front continue to be expect much effect on. Chinese cur-While the number of Chinese

received rency. reported in despatches

forces la said to be large, the main It is pointed out that the purpose is to harass the enemy The Japanese at Pingti, between amount of capital which could be and to prevent the dispatch of Ja- Yoyang and Taolio, wh were withdrawn must now be very small panese divisions to China proper. attacked by the mobile bands on and" while speculative pressure Other Chinese guerilla units January 12, have again been raided. might impart a weaker undertone raided the Japanese position in They fled to a nearby village, the authorities should be able to Chengchlaturi, north-west "01 leaving more than 80 dead and 64 maintain the currency sightly be- Chengten, provincial capital of rifles behind. 4:

low the current level.

Jehol. a few nights ago.

here.

The Japanese at Helangchlawan, In the vicinity of Yoyang, were also

attacked by the guerlilas, suffering FRANCE WILL

heavy casualties. A few days ago

a Japanese colunin moving from Wukiang Shanglungwanchlao

to

was ambushed by the guerillas.

Other Japanese units at Taolin and the neighbouring villages have also suffered losses at the hands of these mobile fighters.

NOT YIELD

·TERRITORY

PARIS, Jan. 16 (Reuter)---The French Government does not want

ITALY WARNS

FRANCE

"ROME, Jun, 16 (Reuter)—A grave warning that France must not make last min ute efforts to save the Govern- ment of Spain is the inter- pretation placed on the talest article ira "Informazione Diplomatica" which is bellev- ed to be written by Mussolini.

The article stated that Ïtaly may feel obliged to give Gen. Franco fresh support and re- nounce the non-lätervention. agreement, which she has al- ready considered to be a fail- ure, if France continues to as- sist the Republicans,

FRONTS

Fighting Centre

Shifts North

日拾月囊年政拾卖佰玖千查英

SOUTH CHINA: WAR

Khumar

mai Menace

OPTICIANS to the Colony

for

47 years

Lazarus

[OPTICIA)

6, Pedder Street

(Opposite the Hongkong Hotel)

SINGLE COPY, 10 GTB.

Price FER MONTH. $.

Japanese Commandeer

Craft For Conveyance

THREAT TO CERVERA Of Troops To Samshui

SARAGOSSA, Jan. 16 (T/Ocean) -The centre" of fighting bas shifted northwards to a region where Nationalist forces are en-

| gaged in the attempt to reach Cer-

vera.

According to a report received here from the front last night, the Nationalist troops have got to within four kilometres of this im- | purtant road and railway junction. Cervera has been very strongly for- tifled and can be regarded as the key to the system of the Republi- defences between Barcelaria and Segre.

can

ESTREMADURA FRONT BARCELONA, Jan. 15 (T/Ocean) -- The Republican-forces have, at the (Continued on Page 9)

CHINESE AMAZONS IN TOISHAN

PHOTOGRAPH TAKEN of Chinese amazons undergoing training in Tolshan district. Kwangtang province, (Photo by Lee Ning-

kwong).

Little Change On Canton- Kowloon Railway Front

(FROM OUR OWN CORRESPONDENT)

CHUNGSHAN, Jan. 16-Japanese military in Canton ⚫are commandeering tow-beats and all available craft to convey troops to Samshul. Mahow and Kowkong with the intention of pushing up the West River,

.

'The only activity beyond Sanshui is left to the army war- planes, under the command of Capt. Takahashi, which severely bombed Shiuhing on January 12. Every street was bombed, and over 120 bombs landed on that town, whose population is taking shelter in Seven Star Cave, not far away.

Over the week-end. Japanese troops at Shenkang, about 25 miles

north of Canton, made several FOUR EXPLOSIONS raids on the Chinese positions, but, determining that the Chinese lines

· IN BRITAIN are fully manned, the enemy halt- ed further activity. A Chinese re- port states that Chinese forces at Changfa and Tsengshing have effected a junction, forming # semi-circle around Canton.

There is little change along the Canton-Kowloon Railway front. The Japanese, after

giving up Tsengshing, north of the East River, are making desperate efforts to hold Shek- lung, Shektan, on the railway, and Tungkwoon because of

· their strategic importance,

It is reported that Chinese mill- „tin made. -a dash into. Sheklung and inficted a number of casualties on the Japanese.

LONDON, Jan. 18 (Reuter)— Three explosions occurred in. Manchester and one In London this morning.

slun

One person was killed and two were injured by an explo- 1 Stevenson Square, Manchester, which caused a gas main to burst. Windows nearby were shattered.

The explosion in London caused no casualties.

Scotland Yard are carrying out investigations.

This report is JAPANESE

not yet confirmed, as travellers from Sheklung state that the town was quiet up to January 14.

TROOP TRAIN

DERAILED

Rear-Admiral Y C. Kiang (Klang 81-yuan), former Com- mandant of the Whampoa HOKU, SHANSI, Jan. 16 (Cen-

SUCCESSES ACHIEVED IN Squadron, is now up the West tral-The derailment of another

MANY FIELDS

"

River assisting Gen. Hsu Ching-Japanese troop train, caused by tang in directing the defence of damage in the track wrought by the river districts. He has been guerillas, along the Tatung-Puchow Route Rallway at Yaotsetow, east of Bo- on the staff of the 4th

Bhansi, Army ever since "his cruisers re-halen" in, northern

January 11. was reported in a belated despatch. Twenty Japanese soldiers were killed and 30 wound-

Governor Distributes Prizes joined the Central Government.

At La Salle College

THE TEACHING OF ENGLISH

IN HIS ANNUAL REPORT FOR THE SCHOOL YEAR, 1938, which he read before a large assembly "of clergy! teachers and students of La Salle College in the Hall at the Annual Prize Dis- tribution yesterday, the Rev. Bo. Almar, the Brother Director. spoke of the successes in many fields achieved by La Salle Col- lege students throughout the past year.

Bro. Aimar spoke of the visit of the Director of Education, Mr. C. G. Sollis, who had inspected the College's 25 elasses and In his report had suggested that there was "not enough discrim- ination shown in the admission of boys from Chinese schools."

Bro. Almar stated that he com-jof age who sought admission from curred with this opinion and with Chinese schools to Classes 5 and 4

for English to boys of over 16 years ordinary classes.

ed.

FRENCH NAVAL

EXERCISES

i

#

on

A Japanese armoured train rushed to the scene shortly after- wards. The Japanese guards were LONDON. Jan. 16 (T/Opean)-attacked by the guerilla bands and simultaneously with the mano jane armoured car was damaged.

euvres of the French Navy, which will begin, off the North African coast in the middle of next week, combined land and naval exer- cises will be held at Gibraltar, it was

announced in the London press yesterday. The exercises will last two days and are designed to test the system of defences,

"MANCHUKUO" JOINS the suggestion that the teaching could not be done efficiently in the A combined Fortress and Home

ANTI-COMINTERN PACT

TOKYO, Jan 16 (T/Ocean)-- The adherence of "Manchukuo" to to risk anything, but it will yield the Anti-Comintern Pact was of- nathing." declared M. Edouard cially announced this morning in Daladler, the French Premier, at a statement by the Prime Minister “MOPPING UP" OPERATIONS

an important meeting of the Radi- at Hsingking.

Since conclusion of the origina! LOYANG, Jan. 16 (Central)-The cal Eocialist Party's exécutive yes- Chinese forces to the southeast of erday, which passed a resolution Anti-Comintern Pact between Ger- declaring that no territorial many and Japan in November Tsingyang, on the north bank of cession could be agreed to, and if 1936. "Marichukuo" is the fifth the Yellow River in norther

a change in atmosphere enabled country to participate, Italy hav Honan, are now engaged in "mop- ping up operations to clear the conversations to be begin, no com-ing joined in November, 1937, and area of remnant Japanese troops cession infringing. French sover-Hungary a few days ago. who were defeated by the Chinese cignity could be considered.

a few days ago.

The meeting also carried una- nimously à resolution, "of con- Japanese troop movements har?' been witnessed along the resternfidence in the Government.

section of the Taokow-Chinghua Railway, in north Honan, during the past few days.

SIAM'S BOY KING IN QUARANTINE

་་

"BLACK BOURSE"

RAIDED

CHINESE RETAKE

LISHIH

TUNGKWAN, Jan 16 (Int'l.)— Launching a counter-attack on the Japanese in southwest Shansı, Chinese forces have recaptured BUCHAREST, Jan. 16 (T/Ocean (Lishih and mopped up the enemy The "black boume" was raided in that area. The remaining Ja- by the police who arrested numer-panese have fled to Fengyi and ous illegal money dealers whose Tsuntien,

extensive transactions lately began Linien on the Tatung-Puchow SINGAPORE, Jan, 15 (Reuter) upsetting the Rumanian currency, Rallway in south Shand is envelo- The Boy King, of 8lam is spend-Large_smounts of foreign cur-ped by Chinese troops, and com- ing the night in quarantine here rencies were confiscated by the munication between that point and after the discovery of a case of authorities who will in future con- Hotsin on the confluence-of-the- small-pox in the liner in which tinde these raids at regular In-Fen River and Yellow River is in- he is travelling to Europe.

tervals.

terrupted.

¿

THE DOLLAR

TT. ON LONDON: ís. 2.7/8d.

T.T. ON NEW YORK 28. 15/16

London Silver Market

WARTIME CONDITIONS GIBRALTAR, Jan. 16 (Reuter)—

Ficet exercises to test the defences He would admit the truth in Mr. of Gibraltar will be held next week. Sollis contention that many of Black-out organization will be also the older boys have no prospect of tried out under conditions strictly down 1/8 as following:-

GUIDE TO THE NEWS completing the school course and approximating wartime conditions.

PAGE 2-Golf Club fixtures. Hongkong Cycling Club. Open squash tourney. Boc- key teams: Eports Lashes. PAGE 3-Radio programmes

Services,

PAGE 5. The cinemas, Cross- word puzzle Diary of local events,

PAGE 6.--Women's page.. Old age need not be lonely. St Teresa Young Men's Society. Hollywood fashions, PACE 7-Escopes from Intern. Order of St. ment camp. John promotions. Dance Hall aummons. Soldier killed. Court martial di signalman. Dr. F.. Ollver. PAGE 8. Leading article: Charges against doctors. “ PAGE 10-Humidity soars. At- tempt to kill British, chief in Palestine:

.

PAGE 11, 12 and 13-Finance

and commerce.

PAGES 14 and 15.-8hipping

news and directory

(Our Own Correspondent),

London, Jan. 16. London silver prices to-day were.

Forward

are merely a drag on the class," The aircraft carrier Ark Royal Spot and, that "If Bach boys wish to arrived here to-day. spend a year or two learning Eng- lish, there should be separate pro- vision for them."

SKETCH PRESENTED Preceding the reading of the re- port by the Rev. Bro. Aimar and the speech of His Excellency the Governor, Sir Geoffry Northcote, who also distributed the prizes, a' programme of entertainment was given by the boys of the College, which included a sketch entitled "Mutiny on the Santa Maria.”

The characters depicted were Christopher Columbus and his mutinous crew, who treated the audience to a measure of vocifer- ous argument on whether or not to mutiny, to an exhibition of jaword play, and to the eventual

discovery of America,

A America,"

1

of picture

+"The Other very neatly drawn, which was exhibited in the hall, showed, a group of modern "red- skins" in full war paint taking moving picture shots of Columbus and party landing.

*(Continued on Back Fags)

Jan. 14 Jan. 18

201-/2 20-3,8

20-1/16 19-15/16 ..

British Consular Officer

Will Shortly Face Trial

SEQUEL TO MAIL BAG INCIDENT IN SAN SEBASTIAN

LONDON, Jan. 16 (Reuter)-It is learned that Mr. Ernest Golding. British Pro-Consul in Bản Bebastian, will shortly be tried by the Spainian Nationalist Court.

Mr. Golding is now in prison in San Sebastian having been. arrested shortly after the discovery of an incriminating package in the British Consular mail bag

With Mr. Golding will appear Mrs. Golding and Madame Lagarde, clerk in the British Vice Consulate in San Sebastian.

Details of the charges have not been received in London but it is understood the British Government has made arrange- ments with the Nationalist authorities for provision of tegal nstig- tance..

[Mr. Golding was arrested on December 23.1-

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