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SITUATION IN THE LOWLANDS REMAINS UNCHANGED: GERMANS SEEK EXCUSE IN

CHARGING DUTCH WITH TERRITORY VIOLATION

French Troops Prepare Flooding Measures To Stem Any Offensive

BRUSSELS, Jan. 18 (Reuter) -The situation in the Lowland countries remains unchanged and it is reported that official Belgian quarters express the opinion that if nothing happens in the international situation in the next twenty-four hours, some of the troops mobilised may be released.

..

The Belgian Foreign Minister had interviews with the British, French and German Ambassadors, but no state ments have been issued.

LONDON, Jan. 18 (Reuter) Despite the Dutch official dental, the German News Agency yesterday repeated the assertion of the German High Command communique that a Dutch plane flew over German territory, near Nord- horn, on January 13,

The Agency stated that Dutch violation of German! territory had been established beyond doubt, ding that the plane was 1 ognised by the colour of its markings.

KINHWA. Jan,

18 (Central).

A hree-year administrative scheme for Cheklang has been promulgated!

by the Provincial Government,

.

Fresh

ALLIED ORDERS FOR PLANES FROM U.S.

WASHINGTON, Jan. 18 (Ren- ter)----According to reliable re- ports, proposals by Britain and France, for tripling their pre- sent orders for American war- discussed yester- planes were

President Roosevelt day by and Mr. Morgen 'hau and Army and Navy offelak

Britain and France are said have notified the United States that they contemplate ordering. for speed delivery, upwards of 8.000 planes and even, more engines.

Russian

RUMANIAN FRONTIERS

FORTIFIED

Italian Independence Emphasized

POWERFUL DEFENCE FASCIST LEADER'S

LINES BUILT

BUCHAREST, Jan. 18 (Havas)— Rumania is at fresent completing the construction of a strongly for

fed ne covering her frontiers, chiefly west and' north, according¦ to well-informed circles.

It is reported that King Carol ordered the construction of a for- tified line immediately after the Munich Agreement and tens of thousands of workers have carried out the order.

-POWERFUL LINE

There is now a gigantic 138-foot wide dug out, all along the north-

ern frontier which can be fooded

SPEECH

EXPLOSION IN POWDER FACTORY

WINDOWS BROKEN FOR 15 MILES

GIBBSTOWN (New Jersey). Jan. 18 Reuter)-An explo- slan of 6,000 pounds of nitro- glycerine wrecked the build- ing of a powder factory owned. by the Dupont Denemours Company.

at

'The explosion, which was ROME, Jan. 18 (Reuter) - Erst believed to be an earthquake, warning that Italy might "find it shattered windows fteen miles necessary to take up arms at any distant in the suburbs of Phila. moment,” was uttered by Gen. Et- delphia and, according to first Lore Muti, the new Secretary of the reports, two men are missing. Fascist Party, in a speech to` Pro-

·TWO KILLED lacial Fascist leaders,

He said: "Let 110 one sleep

A later message states that two persons were killed and one in-

with the illusion that Italy's pre-fured in the explosion. sent attitude to the war will last forever.”

FASCIST ATTITUDE Gen. Mutí affirmed the un- compromising attitude of Fascism towards Democracy, Bolshevism and Bourgeois Ideology.

The statement is regarded in

within one hour. Behind the montalplomatic circles as emphasising Is a powerful line of machine-gun Italy's complete independence in nests and anti-tank barriers to her foreign policy. protect the frontiers.

Because of their high cost, con- trete defence works and used only in highly strategic places, notably for the protection of the mountain passes in the Carpathian Range.

SPANISH-BULGARIAN} COMMERCIAL PACT

MADRID. Jan. 18 (Reuter) Spain has concluded a commer- cial Agreement with Bulgaria.

Attack On

In

Front: Big Battle Raging Worst Cold In Finland LEAVE FOR

HELSINKI, Jan. 18 (Reuter) -- -Fighting in the worst cold that Finland has experienced in 35 years, the Finns

are facing a new Russian onslaught on the Salla Front.

The Russians have launched three

new attacks in

their drive westwards towards the Gulf of Bothnia and a big battle is still raging.

sian had success and here the

Considerable imitation has been caused in Fascist, circles by the frequent allusions in the British and French press, since the recent Italian Cabinet reshuffle, to d" pòs- sible, change in favour of the Allies of the Italian Government's attitude,

NO CHANGE

Gen. Muti declared: The recent changes in the Govern- ment and the Party should not be interpreted as Indicating any change whatever in the path followed by the revolu- tion."

Salla

1

The

B.E.F.

TENSION EASES

LONDON, Jan. 18 (Reuter- Limited Home leave for the B.E.F. will be resumed, according to a message from Reuter's special cor- respondent in Franse.

Tonight from various rall-roads, trains are carrying soldiers on the

IL DUCE'S EFFORTS Havas

message adds that!

The Police and Federal Bureau- Investigation officials have start- ed enquiries, but are withholding comment

in regard to whether there was any possibility of sabot- age.

“TO CONTROL THE SEAS"

U.S. ADMIRAL'S PLEA FOR BIGGER NAVY

.

REPLY TO CRITICISM

FRIDAY, JANUARY 19, 1940. —PAGE 71

THE

HONG KONG

PENINSULA HOTEL;

BONGKONG HOTEL; BEPULSE BAY HOTEL;

S

SHANGHAI

ASTOR HOUSE; PALACE HOTEL;

HOTELS

LIMITED.

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

Legislation For Restricting U.S. Exports To Japan Is

Predicted

11

PROPOSALS BEFORE FOREIGN RELATIONS COMMITTEE. WASHINGTON, Jan. 18 (Reuter)

-Senator Pittman stated that the "U.S. Senate Foreign Relations

Committee will take up the whole

HUGE LOAN CONVERSION

SIMON'S APPEAL TO INVESTORS LONDON, Jan. 18 (Reuter)-Re- Japanese-American ferring in the House of Commons relations, at its first meeting on yesterday to the proposal to take Jan. 31.

to repay Mr. Cordell Hall will: the earliest opportunity probably be asked for reports on the 1940-44 four-and-a-half. per

question of

il

TWO PROPOSALS

the progress, of negotiations on a cent. conversion loan, Sir John" possible new trade treaty.

Simon. Chancellor of the Exche- quer, declared that the rate of in- !terest on this was high and formal

of notice

the

of repayment the loan on July 1 is being given

WASHINGTON, Jan. 18 (Reuter) -The United States should have !a swarm of destroyers "to control Two proposals for an embargo

on exports to Japan, as well as the seas." in the event of war, declared Rear Adml. S.M, Robin-resolution to invoke the Neutrality in the London Gatelte tonight, son, Chief of Naval Engineering, Act in connection with the Sino- testifying before the Naval Affairs Japanese war will also be before CASH ALTERNATIVE Committee of the House of Repre- the Committee.

Holders are offered as cash the sentatives.

Senator Gillette, who on Tues-alternative of conversion into the day introduced a resolution calling new loan, carrying two per cent. General Mute added that Italiansi He was defending the programme on Congress to set in motion the and repayable on par on

July 1, should not" be" under the illusion | for building destroyers, against the machinery operating" the Neu-1945 with the Treasury reserving that Italy will be able to maintain criticism of Mr. Vinson, who said trality Act in the Far East con- the right to redeem at par wholly for ever her present privileged that, perhaps, the destroyer figures fict, predicted to reporters yester-cr in part, after July 1, 1943.. position, which was only rendered in the Naval Expansion Bill were day that the Committee would possible through D Duce's un-too large.

approve of legislation restricting The 4 per cent. loan would re- Rear-Admi Robinson added: exports to Japan. "Our situation is much like that LONDON, Jan, 17 (Reuter-The of England in regard to control of-Repores from Tokyo, indicating Sir John made an appeal tu Air Ministry announces the open- the seas. A nation like Germany, that America's attitude towards investors not to opt for repayment, Ing of limited leave for members at the outbreak of war, müst sur- the trade talks with Japan and except for the purpose of re-lend- of the Royal Air Force.

render control of the seas.”

other pending problems might|| ing money to the Government, force Japan to seek raprochement

WHITE PAPER with Moscow are doing nothing to disturb Washington's calm con. conclusion of Sir John- Simon's cerning the pending abrogadons.atement explaining the Bill deal- of the Trade Treaty.

lag with the powers of the Trea- The matter is arousing very

sury, which will be passed through. small public interest and attention all stages today. is generally now being focussed on European affairs, especially the problem of alding the Finns

ceasing efforts.

DUTCH SHIP WAS SUNK BECAUSE SHE CARRIED CARGO FOR S. AFRICA

LISBON, JAN, 18 (REUTER)—THE CREW OF THE DUTCH VESSEL ARENDSKERK, WHICH WAS TORPEDOED BY Á NAZI SUBMARINE, HAVE BEEN LANDED BY THE DUTCH LINER POELAU BRAS,

The Areniskek's Captain, Mr. C. H. J. Wyker, interviewed by

Finns are falling back in good morning, therefore. I go up to see tern Front has been reduced and Reuter, said that they were bound for Capetown and Durbin with's

general cargo.

..

Two of these attacks have raiders against long odds is tha: been broken and the Finns of one pilot, who each morning way Home.

and took his plane up. circled round This fact indicates that the ten- are counter-attacking advancing towards Salla from and then came down before setting slow of the week-end, though not relaxed, at any rate had eased the west. The Finns have off on his reconnaissance fight.

"Every day," he explained," my considerably. retaken Kursu.

machine gets shot to pieces and

BITTER COLD SOVIET SUCCESS

PARIS. Jan. 18 (Reuter)-Both Only in the south bave the Rus every night the mechanics have to put it together again. Every

land and air activity on the Wes-

if it still works. "If it does, I can practically suspended as a result go off and fight the Russians."

of the bitter cold and further

killed and his patched-up machine states that it was a quiet day cu Since then the allot has been heavy storms during the night.

Yesterday's war communique destroyed.

the whole. There was activity by | 300-400 PLANES

our patrols. LONDON, Jan. 18 (Reuter)—Be- tween 300 to 400 "Soviet bombers have been over Finland every day lunteers for Finland-believed to recently, a Finnish spokesman told number 10,000-who have been undergoing training to fit them! the for conditions of semi-Arctic war- three days hard nghting, the Rs Finnish Air Force has about half fare, would soon be ready to enter LARGE SHIPMENTS but the submarine continues fiz- slans have suddenly fallen back that number, roughly 150. This the fighting line as a abandoning; several guns and 2 includes training machines and unit. fast tanks. The retreat was attrl-

aeroplanes received from abroad buted to lack of supplies.

since the war began.

order to new positions at. Viitavar

Finnish patrols report that the Russians were withdrawing heavy guns, presumably as a precaution to avoid the heavy losses that they suffered in the defeat on the Sou- mussalmi Front.

EASTERN FRONT

On the Eastern Front the Finns scored a big success near Kitela, north of the lake, where, after

The Interse cold is hampering Soviet air activity. Meantime, the

their supplies and starved frozen.

OBSERVERS ASTONISHED

and

Reuter.

To ward of these attacks,

complete

ATTACKS HALTED HELSINKI, Jan. 18 (Reuter)- U. S. OFFICERS

The bitter weather has brought WASHINGTON, Jan 18 (Reuter) to a halt the Soviet. alr attacks

it is reliably reported from the of Lake Ladoga. Salla Front that the Russian forces

The Finns brilliantly produced a miles. number of "nursery tricks." by

FUTURE OF SWEDEN

the

in

Record U.S. Exports In December

11

After passing the Ushant, he saw a small spot on the horizon which he thought to be a minesweeper. As it came nearer he realised, that it was a submarine and he noticea lots of bullets dropping round the ship.

CONTINUED FIRING The submarine ordered the Arendskerk to halt, which she did,

ing.

FOR ALLIES

In response to the Geiman's or- NEW YORK, Jan: 18 (Reuter)der the Captain sent the First -Exports from the United States Officer & the submarine with the 000-the largest for nearly a last month amounted to $356,000 ship's papers.

de- The officer stayed in the sub-

ceive $100 in the new loan for WASHINGTON, Jan 18 (Reuter, every 100 converted.

AFTER EXPIRATION

A White Paper was issued at the

The necessity for the Bill arises from the fact that is proposed in. regard to any holder of the four

A Havas message adds that per cent, loan who has applied for Senator Pittman, after the expira-repayment at a certain date, or tion of the trade treaty with Ja. 10r conversion, as having accept- pan on Jan...26, will study theed the offer to convert his holdings.. situation again in order to deter- It is estimated that the con- mine what conditions for an em-version would, save approximate- bargo will be most favourable to ly £8,000,000 to £9,000,000 annually U.S. interests,

¡In Interest.

Press Comment On Speeches

By Premier, Hore Belisha

LONDON, Jan. 18 (Reuter)-Monday's speeches by Mr. Hore Bellsha and Mr. Neville Chamberlain naturallý provided the British press with an almost inexhaustable subject for comment. On one point all are unanimous in their praise for the modera- tion and dignity of Mr. Hore Belisha's speech,

On the general question of whether the resignation was beitin 'the interests of the steady prosecution of the war, there is also fairly general, though not entire, agreement.

Such comment as there is, is to the effect that even now no one is any wiser as to the reasons for the change,

NO SHIFT POLICY The Prime Minister's assurances corroborated this and the two! statements together dispose, · for}" all time, all suggestions that some shift policy

behind the various changes.

-

"What was the truth?" asks the paper. "The Prime Miule- ter approached the point; ho skirted the point, but he never did come to the point.

"All that he would say was that he became aware of dlf- ficulties arising out of the very great qualities of Mr Hors Bellsha.

Finnish tactics, apart from trench-The US, Army is sending two tecause few of their planes are cade, $71,000,000 more than in Nov marine for half-an-hour with the warfare, in the Karellan Isthmus officers to Helsinki, one from Rigalequipped with any device to pre-ember and $92,000,000 higher than Captain, who said that he was very are directed at destroying the and one from Washington, to serve vent lce tram forming.on

in December, 1938.

Sorry to have to sink the ship, as enemy's morale

by harassing as múltary attaches for the land wings.

PRINCIPAL FACTORS the cargo was conträband, not operations by patrols, which unex and air developments of the war.

Little activity took place

Large shipments of aeroplanes, owing to its nature but because of pectedly attack their rear

SOVIET RETREAT

The Time says that Mr. Hore lain's speech wa the good air of flanks, keeping the Russians in

land operations for the same rea-petroleum and metals to the Allies its destination, 9uth Africa an

Bellsha was heard by his fellow fellowship which prevalled gave it constan, fear of being cut off from A special correspondent with the speaks of patrols harassing the the enlarged total.

TIDNINGEN, Jan. 18 (Reuter) son, though a Finnis Communique constitued the principal factors enemy country.

Aeroplanes

NAZI KINDNESS

members with approval and re-all an unreal atmosphere. and Northern Finnish Forces says that Soviet troops in the region north alone were valued at $29,000,000

The Chief Officer was deeply in- | spect due to the difficult task well į

by the kindness and accounted for most of the Pressed

öf and patriotically performed. He

increase.

the German captain, who said it | said nothing which either be or Military observers are astonished which have been trying to drive special to the H. K. Daily Press

Anglo-French purchases increas-was really a pity to sink such a his country might later regret) at the Finns incredible contempt westward across Finland's waist

and made short work of the rC- for heavy masses of men and are in general retreat and are be-

STOCKHOLM, Jan. 18 (Havased from $44,000,000 in November to fine ship.

Captain Wyker added that the cent attempts' to dramatise it in lleved to have withdrawn several Christian Guenther, in chinery, expecially tanks,

The Swedish Foreign Minister, M.$86,000,000 in December.

COTTON EXPORTS

Arendskerk was only a year old terms of sabotage and conspiracy. a speech

Exports of costom also increased and was considered me of the best "SHEER INVENTION" sressed that help to Finland was suddenly from $30,000,000 to $43.- cargo, boats in the world. which a single-man pe: a tank out! MOSCOW. Jan, 18 (Havas)-The an integral of Swedish foreign 000.000.

The submarine herself towed of action. In some cases, a Finnish Tass Agency has branded as "sheer policy. He insisted that Sweden's Latin-American countries were back the boat with the First Officer soldier leap on to a tank and hit invention the reports appearing in future was very much dependent turning to the US. owing to the and gave the crew half-an-hour to the machine-gun with a heavy the Frankfurter Zeitung asserting upon Finland's although aveden way and had increased their pur- leave. pole, bending its barrel and then that the sowet claimed the an-must take into consideration the chases by about $3,000,000 to $75,- After they had pulled away in dealing with it at lelere.

nexation of the Petsamo region in necessity to maintain neutral 600.000, while purchases from Asta- three boats, they saw the ship

The Daily Telegraph is of the The Russians apparently found Northern Finland. The official attitude in the European conflict.

the opinion that what caused With both sides finding it dimic countries had swelled by about blown up. They were picked up. is necessary to bring up reinforce Soviet mouthpfece declared that

$15,000,000 to $88,000,000. ments on several frons and, in one such a demand was never voiced cult to advance along the Franco-

SWEDISH SHIP SEIZED

changes was not so much a mat- sector, they have put into the by the Soviet.

German border, the European con-

"STOCKHOLM, Jan, 18 (Reuter)ter of polley as a clash, of tem- line cadets who are being trained

REPORT DENIED

filet may ex end to some countries.

The Swedish steamer Birger Jarl, perament, while the Manchester Guardian observes that it really PARIS, Jan. 18 (Reuter) Prince Therefore, the Swedish as officers.

SOVIET AIR RAIDS

looks as though Mr. Hore Belisha Aage has denied the report that ment should take every care to

had been lacking in tact, 11 HELSINKI, Jan, 18 (Reuter)-It he has offered his services to the avold measures which might be. is now becoming clear tha; Soviet Finnish Army.

considered contrary to her neutra

LONDON, Jan. 18 (Renter)-As result of the efforts Bir raids over Finland are aimed at The Prince said that despite his lity.

to and Belisha's behaviour on Monday “unything on sight, even at private great sympathy for the heroic Fin The Prime Minister. M. Albin American tobacco of which two-

Parliamentary seats for the new and applauds his expressed desire individuals, miles from any fighting nish nation, he would consider it Peter Hansson, also stressed the and-a-half years' supply is already

that the work which has been ar John Reith, it is expected that Ministers Bir Andrew Duncan and front,

his duty to remain at his bost as determination to grant ald to stored in Britain. In future, therefore, the Ffans major in the French Foreign Le-Finland: At the same time the · Henceforth, Virginia tobacco will LONDON, Jan. 18 (Reuter)-The done, and is being done, should

Bir Alan Anderson will resign will not be issued the names of glon.

Government were taking steps to be no more used alone in cigarettes Belgian steamer Josephine Charnot be marred.

from the city of London and Sir the towns that are bombed,

carb Communism and were ready but will be mixed with ten or fr-lotte (3,422 tons) struck a

UNREAL ATMOSPHERE

Charles Barrie from Southampton. Typical of the herdsm of the STOCKHOLM, Jan. 18 (Reuter) to take drastic measures if neces-teen per cent, Turkish or Greek yesterday afternoon and Bank. On the other hand, the News Neither Labour nor Liberals would

tobacco.

The captain and crew were rescued, chronicle feels that Mr. Chamber-oppose the new ministers, Finnish airmen fighing the Soviet-It la reported that Swedish vo-sary.

V.

SWEDISH VOLUNTEERS

2

Govern-

་་

,

two hours later.

destined for

from

U.S. TOBACCO IMPORTS!

Stockholm Special to the H.K. Daily Press

Latvia with fifty passengers. was and LONDON, Jan. 18 (Havas)The captured by the Germans Government has decided to tem- taken to Swnemuende, porarily interrupt Imports of

BELGIAN SHIP STRIKES MINE

mine

The Manchester Guardian has nothing but praise for Mr. Hore-a

"All that the country HOW knows," concludes the News Chronicle, "Is that Mr. Hore Belisha scenas to have been loo good for his job.”

FINDING SEATS IN COMMONS FOR NEW MINISTERS

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