EARLIER TELEGRAMS.
EXCHANGE OF PRISONERS.
London, May 15.-
In the House of Lords, Lord Newton, referring to the Franco-German, agreement regarding the exchangs of war prisoners, mentioned yesterday, disputed the contentions that we should set similarly to the French Government. He took upon himself yesterday to suggest that some form of exchange might be found advisable by the Government and mada à somewhat vague suggestion thereanent," but the War Cabinet must decide the matter,
Lord Newton said one point of acute controversy be- Tween the Anglo-German Governments related to merchant- meni captured on armed vessels, whom Germany was unwill.. ing to treat as civiliana. The Admiralty was not prepared to allow German merchänt seamen to leave Great Britain un- til the matter was satisfactorily cleaned up.
There were 3,760 British civilian prisoners in Gemsay, including 9,680 seamen, while there were 21,000 German civilian prisoners in Great Britain. If an arrangement were possible whereby all combatants and concombatants would be exchangeable the bargain would be perfectly fair, because the numbers would be about equal
The "Times" commeating on Lord Newton's announcs- ment regarding the exchange of prisoners, criticises the Government for failing to keep in touch with France and Italy on this very important question. It holds the War Office mainly responsible for "another very lamentable failure of cooperation between the Allies.". It says the Gov ernment no longer withhold the evidence of the sudering of the prisoners collected from British officers from Germany now in Holland, who are unsparing in their effort to stir the country and demand more energetic action. The “Times" mys it has been thought here that conditions have lately improved but latters from officers prove that Brit- ish prisoners in many camps in Germany are subjected to calculated inhumanity in pursuance of a deliberate policy of vindictiveness. The least evil is insufficient and bad food, Letters of officers contain proofs of sick men being" driven to work, of foully deficient sanitary conditions, of Medical attention brutally denied, of men bullied and beaten by German officers, also by their guards, and of deliberate murder in many cases. The Times" concludes: The country has shown great patience with the policy of this and preceding Governments in this matter. Plainly the time for patience has now passed. The case for action is overwhelming in view of what France has done.
GERMAN "IDEALISM.”
London, May 15.
What is apparently a campaign against the perils of international idealiam is being conducted in certain quartera of Germany. The influential monthly."Sud Deatre Mo natabete devoted nearly the whole of its current issue to warnings against German dreamers, the principal articles being contributed by University Professors.
The "Times" gives a number of illuminating extracte therefrom. Profesor Spabo, Roman Catholic Professor of History at Strassburg, says if Germany consents to, any League of Nations she must lead it. He continues: The need of the present hour is not yet universal peace and the rule of law and freedom of the peoples, but clearness about the vital conditions of the German people as a State and about the full development of our own state of existence. If the dream of unity of the European peoples becomes a reality it cannot be based upon the equality of all Peoples are made for equality just as little as individuals are. Unity must be based upon the leaders of the most efficient peoples and only a race so full of idealism as the Germans are capable of lighting the horizon of bumwity with any idea so great and eternal.
Professor Ernest' Haikel warns the Germans against Uto pian imaginations of peace and refers to the Reich tag prace resolution of July last year as infamous.
Professor Wundt, Professor of Philosophy at Leipzig, says there can no longer be any question of "a renunciation "peace."- Professor Reinke, of Kiel, declares that the history of the world shows that the only Power that has won peace is the Power able to inspire the enemy by force of SPIDA. The latest example of this was Brestlitovsk *The proper maxim for us is to extract from the situation as much material advantage as the military position permits."
The Times," commenting, says these pinions stự how very far Germany is from contemplating any settlement com- patible with the elementary first principles of the Allies and the United States. Hence the trial of strength thus forced upon us will have to be fought out by sea and land.”
· AUSTRO-GERMAN ALLIANCE,
Sema interest ny Comment
London, May 15.. The "Frankfurter" is of the opinion that it will be difficult to get Austro-Hungarian Parliamentary sanction for the new Austro-German alliance.
What Vienna calls the extension and decpeling of the Austro-German alliance as the result of the meeting of the Emperors at German Headquarters is commented on by the Anglo-French press as merely plac- ing the seal on Austria's vassalage, making it forever im- possible for the Hapsburgs to reassert their independence and proving the hollowness of the idea of attaching any importance to separate Austrian peace offers. It is authorit. stively stated in Paris that the French Government has always regarded Austria as having long lost her independ- ence bebce they never thought the Austrian Government, even if sincere, would have been able to conduct its peace offers to a profitable issue. It is believed in Paris that Germany will now attempt to secure more effective Austrian military assistance; but the internal difficulties in Austria, which a definite rasgalage will only-increase-will-diminish- the efficacy of such collaboration.
"Very Insecurely Based."
Amsterdam, May 15. The "Torwaerts," commenting on the new Austro- Gorman alliance, saya the recent conference at Headquarters whereat this was decided really dealt with the dynastio interest and the distribution of the Esthonian, Lithuanian and Polish thrones, althongn none of these free peoples". asked for a dynasty. The new alliance is very insecurely bated, because the respective peoples have not been con- sulted. Moreover he points out that the Austrian popular Basent is remote owing to the pan-German reactionary policy which has made Germany cordially dieliked in Austria.
While German newspapers generally do not disguise their joy at the prospect of Germany solidifying her heid over Austria-Hungary, Viennese opinion regards the eventa" with - dissatisfaction, especially the Cand Slay deputies, who have already voiced their intention of very sharply opposing the renewal of the alliance. Mate
Herr Harden, in an article in the "Zukunft' ridicules the dream of a Central Europe, especially the "daa of eternal Austro-German friendship. He denounces the eastern treaties as against human nature and reason, declaring that the so-called Ukrainian bread peaes in humbug.
THE HONGKONG - TELEGRAPH, SATURDAY, MAY 18, 1918,
EARLIER TELEGRAMS.
THE HIGH COMMAND IN FRANCE.
London, May 18.
In the House of Commons, replying to Mr. Outhwaite, Mr. Bonar Law stated that no change had occurred or was contemplated in the high command in Franes. Mr. Bonne Law strongly deprecated such questions, which he will de alice to answer in future.
ANGLO-DUTCH AERIAL MAIL.
Amsterdam, May 16. The Chamber of Commerce is pressing the urgency of an Anglo-Dutch serial post.
U.S. FINANCES.
Washington, May 16. Speaking in Congress Mr. McAdoo estimated the r venue for the current fiscal term ending June 30 st four billion dollars, mainly contributed by taxation. One third of the expense of the war in 1918 will be met by taxation and two- thirds by Eberty bonds. The income from excess profita taxes will yield 83,770,000,000 which is $348,000,000 over the estimates. The total internal revenue is expected to be 63,643,000,000, including #180,000,000 from Customs There has been considerable discussion in Congress as to whether the new revenue legislation shall be taken this present
up section.
MEN FROM THE MINES.
London, May 16.0
When the Coal Controller addressed the Miners' Feders- tion, as cabled yesterday, many questions by the 138 delegates emphasised that the Military had taken the strongest miners. The Controller submitted a scheme for the Central Mining Mobility Bureau for more productive utilisation of labour Not a single delegate apported it and the conference coll apred.
WORKING CLASS HOUSES.
London, May 16
The Minister for Reconstruction has appointed & com- mittee to investigate the desirability of establishing State *and Municipal Housing Banks with a view to advancing funds to private persons and bodies for the provision of working cinas houses after the war.
THE WESTERN FRONT.
London, May 16.
A wireless German official message says: During the repulse of the enemy attack northward of Kemmel a limited breach in our foremost lines remained.
Field Marshal Sir Douglas Haig reports: The French captured prisoners and successfully advanced the line in local fighting northward of Kemmel,
LORD FRENCH'S SUCCESSOR.
London, May 15,
In the House of Commons, Mr. MacPherson stated that no successor to Lord French has been appointed.
Mr. David Davies: Is the appointment of General Ins Hamilton contemplated?
Mr. MacPherson replied: I can add nothing to my
answer.
RAID ON PARIS.
Paris, May 16.
An air raid alarm was given at ten last evening, the ali clear signal following at mid-night.
A second alarm was given at 150 in the morning and the all elear at 2.30.
INDIA'S LOYALTY.
Simia, May 18
As the result of the Delhi Conference the Provincial Governments have held meetings, unanimously reaffirming the resolution of loyalty and promising all possible sid. The Government of India has already decided to immediately recruit over half a million men and organise Central Pro- vincial Publicity Bureaux.
GERMAN OPPRESSION.
Amsterdam, May 15.
In the Reichstag, debating the estimates of the Depart ment of Justice, the Socialist Cohn denounced the severity of the sentences for the strike disturbances whereby many men of noble character from Belgium and Germany are languishing in prison. Cohn was repeatedly called to urder amid tumult.
PRUSSIAN SUFFRAGE,
Amsterdam, May 16. In the Prussian Lower House the Independent Socialist Hoffman taunted the Conservatives with flaunting the Kaiser's promise as regards equal suffrage. Ficing the members of the Right, he continued: "What people abroad 887 does not trouble you. What the soldiers at the front will say you will know early enough. Reject equal suffrage and you will see the consequence.!
BRITISH TRADE.
London, May 18. --In-the-House of Commons,-Bir-A-Stanley, introducing the Board of Trade estimates, estimated the imports of the United Kingdom for 1918 to be only half those of 1913. The fact that we were carrying on in such circumstances showed the marvellous resources of the United Kingdom. This was a very valuable lesson and should be borne in mind after the war. We should not allow ourselves again to drift into. so great a dependance on foreign surces. He foreshadowed steps for the reduced rausumption of coal domestically and industrially next winter, the formation of a committee to determine priority in the use of coal industrially, the intro- duction of gas and electricity rationing and the licensing of the importation of toreign, dye-stuffs for ten years. He emphasised that a large part of our trade had entirely ceased, namely trade with our enemies, also with Belgium and Ramania also it had become necessary to concentrate ships apon router where they could be used most advantage- ously. For example we had been compelled to transfer.wewis.. from the eastern inde to the Atlantic The industriel fie of Britain had completely changed, "but so far the aggregate-- industrial output was very little less than before the war, which was a very remarkable achievement. Labour had diminished; but the workers worked longer and harder and the methods of manfacture were very considerably improved. There were at least a million and a half more women workers to-day than before the war
li
EARLIER TELEGRAMS.
AUSTRIA'S PEACE PROPOSALS.
London, May 16
An interesting debate took place in the House of Come mous on the subject of the alleged proposals by Aurizia. Mr. Runciman asked a series of questions regarding Eir peror Karl's letter, quoted by M. Clemencesa, na cabled on April 9. He asked: Was it communicated to other Alles ! Did the Premier inform the Foreign Office at the time that sash letter had been shown to him? Was tãe subject dropped because France wanted the Alsace-Lorraine of 1814 or even 1790!
(Mr. Balfour's reply will be found in today's telegrams. Ed. **H.K.T."),
SUEZ CANAL BRIDGED.
Cairo, May 14 - The swing bridge across the Suez Canal at Kantara will be completed on May 15, affording direct railway communica tion from Cairo to Palestine.
GERMAN METHODS IN KELGIUM,
Paris, May 15. General Gillain, Chief of Staff of the Belgian Army, in an interview, shows the German propaganda methods in the Belgian Army to achieve peace. Belgian prisoners are taken to their families and for a few moments are allowed to abandon themselves to domestic joys. Photographs of these meetings are distributed numerously in the Belgian lines, with the words "Give up fighting and go home to your families. Then you will be happy" General Gillain says such temptations are constantly resisted, For four years the soldiers have been exiled and separated from their wives and families without news of their dear ones and knowing full well that the latter are the unceasing object of treacherous, hateful enemy machinations, Never- theless their confidence in the future is unbounded.
AUSTRIA'S UNHAPPY CONDITION.
I Rome, May 15,
is
The gravity of the internal conditions of Austria evidenced by the situation at Trieste, which was amuliz the pre-war richest Austrian towns, rivalling in wealth and comfort Genoa and Barsailles. All classes of the remaining population of Trieste hold a meeting demanding accour. The notice calling the meeting, which passed the censor. is eloquent of the prevalling distress. Trieste is without reserves or resources. We refuse to die of starvation. Even people who were rich before the war now live by beg- ging from 'public charity. Malnutrition and hunger prevent the workers doing their daily tasks. They do not pro- duce even half the pre-war output. Statistics of sick and" dead are terrifying, but the City declines to become a cemetery. If the Government does not provide for the inhabitants they will not die of starvation but will prefer Any other death.”
THE COMING AUSTRIAN OFFENSIVE.
London, May 15. Well informed observers are of the opinion that the" Austrian blow against Italy may be expected at an early date. The project is generally believed to comprise a great invasidu, with Milan and Brescia as the chief objectives; · but the latter are only parts of a complex scheme to smach up the Italian army. Since the retroat of October the whole Italian strategic plan has been recast The main defensive positions have been solidly held; but the Austrians now intend to strike against the remaining hundred and fifty miles of original flank along the mountain wall stretch- ing from St. Elvio Pass to Monte Grappa The enemy bolds positional advantages.
BRITISH EXAMPLE TO GERMANY.
Zurich, May 16. The "Frankfurter Zeitung" contrasts very unfavour ably the German system of financing the war with the Bri tish and says the latter is based on a wide distribution of the burden of taxation and rests on a innch sounder founda- tion than the German financial policy, which is characterised by private egoism, petty fear of taxation, particularism and ́ dille tantism. The journal woncludes: The self-sacrificing beraien of the British taxpayer and the farseeing statesman. ship of the British Government ought to be an example and stimulus to Germany.
THE UKRAINE SITUATION.
London, May 15. German newspapers admit that the position in Ukraine
is getting worse. The "Vossische Zeitung" says a state of war has been proclaimed in the Government of Jekaterinos- lav, while a strong current is running against the new order in Odessa and Portava.
The newspaper adds that there are saveral groups of Great Russian forces in the Doa region.
place in the annals of those towney Their only chance of being believed is in the hypuotie izflasnos which is mystically connected with repetition. Somsa man, if they hear a thing often | enough, even though it be su absurd lie, sre mesmerised into some vague belist in it. The Germans are aware of this. »Bo they invent a simple, consistent little stary, and repost it without variation over and over again, knowing that a certain type of mind, overcome by sheer mono- tonone reiteration, will at length be found repeating it also. It wag the same with poison gas, flame projectors, attache on to hospital shipe, and that wonderfal "invasion"
n”. of Belgium by a French seroplane.
One single fact, however, is decisive. At the beginning of the war Germany had a large number of machines whose only purpose was bombing townɛ, namely the military Zeppeline. The Allies amongst them only owned a few experimental dirigi- bles. The Zeppelin's raison d'etre was the infliction of moral damage on civilian populations, and they were used for that par- pora directly the war began.
Had the Zeppelin not proved mob a comparative failure, wo should never have heard of these raids on Cologne and Dasseledorf. The man who invented the ballet which destroys them incidentally gave rise to all the great reprisal controversy. The Germans be lieved that in the Zeppelin they had a unique instrument for frightening civilians, and that they would score heavily by its possGI- sion. In those days they were not interested in the question of the initiation, but only in the justification, of each raids. (TaBy were not really interested in thai, bat for propaganda purpeces they affected to be.) They continually pointed out, that under modern Conditions it was imposible to distinguish between legitimate and illegitimate - targula; that nowadays every inch of a warring country is a War Area, and that every man in it is, in a sense, a soldier. In those days the Allien had no offective înstrument... öf retaliation.
Can
But s great change has come about since then. The Zeppelin has failed, not entirely but com- paratively. At the same time the Allies
have gradually built up a potentially overwhelm- ing air service. Now they have all the youth and resources of America at their backs, while the best human mate risi in Germany is dead. In the sir to-day, the Allies position is brilliantly pro- mising. Consequently the Ger mens would be well pleased it they could induce Humanity to step in and prohibit air raids on anything but actual war s'ess.
There is another reason. The Germans can certainly have the satisfaction of bombing London and Paris on the asme night, but they know that the Allies have a better, if less spectacular prospect then that. The Allies reach a score of large towns, each centreof vast industrial sotivity. They can reach the St. Etiennes and Manchesters of Germany, Moreover, such a large choice of targets makes a satisfactory defence of each one almost · impracticable. The absorption of men and material would." be too great, if every large town within reach of the Allies' bomb- ling machines were to have an adegaste barrage and its own protecting equadrons. London sud Paris are already terribly tough propositions, and will be- BJ, The Allies® targeta ss Ims spectacular, but more" remunerativa and lega perilous-In-time, with América's help (remember for fifty millions for aeroplane bombs alane) the Allies Air force must over. whe'm Germany. (The Tarks. and Balgare, & d to a less extent military theory in this war, the neclean in the air). Lastly, the the Austriane, are practically: presence of s battery of soti German public is in an extremely ircraft guns, (which soon became "render" condition. The authori GECEPeary in the face of the etics do not want to submit it to, onscrupulous German attack), any further strain. The popula he a munition factory madtions of England and France are
my town, however. "open," egitimate object of attack,
TRIBUTE TO GENERAL FOCH.
London, May 18. Major General Maurice, in an article in the "Daily Chronicle" pays a tribute to General Foch and appeals to the British public to remember when they see our huge caualty lists that the German blow was designed to fall on the British, that General Foch's taak is, while giving us the necessary support, to watch the enemy reserves and nurse his own. General Foch assumed his functions when the battle was at its height. The menace to Amiens was very real, yet the enemy had been checked. The Allied armies remain in direct touch. Amiens is still in our hands. Major General Maurice met General Foch thrice since the German offensive and each time the latter looked young. er more vigorous and more confident, General Foch" may be trasted to remain on the defensive not an hour longer than prudent generalship demanda.
AIR-RAIDS AND GERMAN
MENTALITY,
By Lieut. H. 12. Wakefield.
"Paris way babib stacked with bog be on March 8ib., sa s re prisal for the enemy tombing of the open towns of Mainz, Treves, Mannheim, verê Pirmasens."-- German Witzlegi,
-
come more
more or leen hardened nad Quite recrotly the Germans many is doubtles aware that “
"acclimatized" to air raida. Ger have invented a wonderful series present Allied superiority in the The Ersorgspired air mids or of raide on Cologne, Dusseldorf, air has been achieved, without 8 SOFA WITH:IBLVed rot by the and other Ebine towns, which the great help that is coming Germans, in August 1914, or be Allies are supposed 10 from Amerios, and without that Antwerp. "Antwerp was certainly have carried auf at
the expansion and te-organisation of
a defended city, it was the beginning of the war, thereby the British air service which wall- civilians and not the dering the hall of air barbariem fences, "which the German rolling. These legendary occur» attacked. According to German rences have certainly found ro
shortly begin to take effrati t
(Oontiomed en gaga 17.)