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IO VIA=X## FRIDAY, FEBRUARY 5, 1932.

日九廿月二十

HOLI CUPE 10 UNKT

STRENGTH/

FORT

FORT

DUNLOP

The Time of Rugged Strength

"South China Morning Post Bldg.". Tal, 24554.

THE SHANGHAI BATTLEGROUND EXTENDING.

JAPANESE FEAR REAR ATTACK.

BIG OFFENSIVE TO

COVER.

"GALLANT 78TH" BEING RELIEVED.

(FROM OUR OWN CORRESPONDENT).

Shanghai, Feb. 5, 10.04 a.m. FTER FIGHTING magnificently for days AFT

against repeated Japanese onslaught, preserving their morale perfectly in the face; of a series of terrific bombardments such as modern Chinese troops have never before experienced, the now-famous Seventy-Eighth| Division of the Nineteenth Route Army are being taken out of the North Station zone.

They are being replaced by the Sixtieth Division, who have been assiduously training for combat, and are men of the same calibre as the Seventy-Eight, whose losses are stated to have been one thousand killed andi wounded.

Yesterday, they withstood the most severe attack yet This morning, launched by the Japanese on the North Station,

Howitzers have they have eaten off several fieree attacks. been active all night, and the Chinese having been replying. effectively. with Stokes morlars.

Heavy losses have been suffered since the general engagement was started yesterday afternoon, both sides experiencing considerable casualties.

The Chinese are holding their positions, being strongly entrenched, while the Japanese are faced with the problem of attacking on extremely narrow fronts owing to the con- gestion of surrounding buildings.

STEADY BOMBARDMENT.

The object of the intensive bombardments which started yesterday morning at seven o'clock and have been continued, ! with brief intermissions, ever since, hud been mainly to reduce these obstacles to concentrated infantry attacks.

Brigadier General Fleming, D.5.0., who has been in charge of the Settlement defences in the critical days since the Japaness ultimatum. It is ex pected that Admiral Sir Ho. ward Kelly will take nyar lo day.

NEUTRALITY OF SETTLEMENT.

JAPAN'S UTTER

DISREGARD.

TWO VIGOROUS PROTESTS.

A

Washington, Feb. 4. FURTHER PROTEST

is being lodged with the Japanese Government by the British and American Gov- ernments, against the con- tinued use of the Internin- tional Settlement in Shang- bai as a base for the Japanese war operations-Reuter.

S.M.C. UP IN ARMS.

POLICE DISARMED AND ASSAULTED.

SETTLEMENT GIVEN FULL-BLOODED

A SHAKING.

TERRIFIC BOMBARDMENT BY HEAVY GUNS.

NO SLEEP LAST NIGHT.

MOST

SHANGHAI, Feb. 5, 6.10 a.m.

OST SLEEPERS in the Settlement were startled from their slumbers when at one o'clock this morning, the Japanese suddenly opened fire upon the Chinese positions in Chapei with heavy calibre guns, probably six-inch.

The roar and rattle of the guns so close caused souc alarm, their thunder shaking the whole of the Settlement.

The bombardment was terrific for half an hour, the shells pouring in upon the Chinese position at the rate of one gun per minute. This was followed by per- sistent shelling from the smaller Ordnance pieces, while machine-guns were also extremely busy. JAPANESE ATTACK FAILS. ·

At four o'clock, however, the offensive died down to n desultory exchange of shots, the Japanese having apparently launched an infantry attack following the bombardment and failed to make progress.

PROTECTION.

BRITAIN'S NEW TARIFF

SYSTEM.

CAT OUT OF BAG.

Mr. Navilla Chamberlain,

AN EXPENSIVE PRANK.

The Chinesa ide, was quite silent during the heaviest Japanese. bombquent, having nothing with which to reply, while they might have revealed the positions of their smaller STATUE OF EROS guns.

They spiritedly resisted the shelling of the smaller pieces} later this morning.

WOOSUNG STILL IN CHINESE HANDS,

The Chinese are still holding Woosung Forts. All the big guns have been put out of action by the sustained shelling of the Japanese cruisers, but the machine-guns are busy. It is expected that the Japanese bombardment will be resumed shortly.

CHINESE MORALE

VERY HIGH.

INTERVIEW WITH

STOP PRESS.

DAMAGED:

CLERK TO PAY 100) GUINEAS.

(Router's Special Service).

London, Feb. 4.

A new landmark in British history was erected in the House of Commons to-day when the Chancellor of the Exchequer, Mr. Neville Chamberlain, announced the abandonment of Britain's - traditional free trade prin- ciples.

the

In his historic speech, Chancellor stated that the Gov- ernment had decided to intro- duce a system of "moderate protection, scientifically adjust- ed to the need of industry and agriculture, in order to remedy the adversu balance of trade.”

The new tariff system would como into operation as from the. First of March naxi,

A basic duty of ten per centum would be imposed upon all'imports," with the exception of wheat, meat, fish, raw coiton. wool and tea, and other goods which were already subject to

duty,

The superstruelure of the, addi- tional duties contemplated would be raised upon the ten per cent. basis.

OYDT

Extra Duties.

These additional duties. nnd above the basic rate of ton London, Feb. 4. What counsel called "the most per cent. would be imposed by order of the... Chancellor of the expensive evening's entertain Exchequer after a recommenda- meet the

man could possibly tim by an independent Advisory have undertaken," cost a London Committee. clerk one hundred guineas in court to-day.

Ottawa Conference.

Mr.

THE MAYOR.

Neither the basic nor the addi- tional duties would be operative Shanghai, Feb. 5.

He climbed and damaged Eron, on goods from India Reuter obtained an

or the interview

London's most beloved statue on Dominions before the Ottawa Con- last night with Mr. Wu Tiel-chen, the Mayer of Greater Shanghai.

New Year's Eve almost directly ference. All the products of the Mr. Wu and that the morale of

Shanghai, 11.14 a.m. after it had been restored to its Colonies, British protectorates and Shanghai, Feb. 6, 6.10 a.m.

of honour former place the Chinese troops now engaged

in Mandated Territories would also 1.M.S., Kent with Admiral Sir After a special meeting last in so gallantly defending Cha-Howard Kelly aboard has arrived

be exempted. Piccadilly Cireus. night, the Shanghai Municipal pei against. repeated Japanese

The case has been proceeded for The Chinese have now established light gun posi- Council addressed a letter to the onslaughta was very high, the men as have also seven US, destroyers. | some duys. and the London

County Council stated that The Government, said tions on Markham Road and in the vicinity of Chenju, Senior Consul. Mr. Cunningham, having aged in the days of battle

although the damage amounted to Chamberlain, attached the utmost view of the and held their own. and there are indications of an impending Japanese stating that in

As the result of their successes,

£162 the broke the stringa of Importance to the Ottawa Confor certain

the Chinese troops no longer feared

Nanking, Feb. 5.

Eron bow), they were willing to ence which was intended to ac attack on Chenju, with the object of covering their rear grave repercussion of

It is authoritatively stated that recept one hundred guineas. care a great incrense in Inter- and at the same time, it is supposed, of putting the activities of the Japanese, the the formerly dreaded pace

Council must request him 10 marines and bluejackets.

Imperial trade. the Chinese Foreign Minister isi "No elderly person with any wireless station out of action.

make very urgent representa- He emphasised that the Chinese

the Japanese au troops were well disciplined and issuing a statement, refuting the recollection of their own youth would be too severe on youth's tions to thorities.

were determined not to attack the Japanese suggestion that Shang- follies." declared the eightly- The letter directs the Consul's Japareuse positions owing to their hai and Manchuria are separate year-old magistrate, delivering his attention to the grave situation respect for the International Set-

decision. insisting that China's which has arisen through the activi- tlement. They were holding pure-issues, ties of the Japanese armed forces ly defensive positions, but would territorial

administrative Yesterday the Japanese made advance on the apex of a and armed Japanese civilians, resist to the uttermost all Japanese sovereignty must be safeguarded triangle in a north-westerly direction, the base being the line where their actions have resulted attacks.-Heuter. approximately of the Kiangwan Rond as far as the rifle mound, in the disruption of public services The manouvres have been ordered to ward off a possible and in frightening the Inhabit- Chinese attack heading towards the Settlement from Woosung. ants." and also to protect the Japanese rear should the Chinese begin! a large enfilading movement from a line between Liuha and Chenju. All the Chinese positions are being kept under con- stant shell-fire to discourage such a movement.

There has been.continuous shelling by both sides this morning and Japanese aeroplanes are exceedingly active. dropping bombs on exposed positions. JAPANESE IN BIG OPERATION.

MOTOR BUS OUT OF CONTROL.

EUROPEAN WARDER

INJURED.

SILVER REMAINS

UNCHANGED.

THE LOCAL MARKET LIFELESS.

Warder P. J. le Tissier, of The Hongkong dollar remains Laich kok Prison, was rather bad- unchanged to-day, as also does

York.

ly cut about the face by broken silver both in glass yesterday morning as a re- ault of a motor bus mishap in Nathan Rond.

London and New

China London reports

as n

Particular reference made to the fact that mem- bers of the Shanghại Muni- cipal Police have been forci- bly deprived of their arms and ammunition and have been prevented from execut- ing their duty,

Members of the Fire, Brigades | have been similarly interfered with, the Japanese having obalructed them and nasnulled them.

Food Problem.

The utmost dificulty has been ex- perienced in the conduct of the food and hospital services on ne- count of the obstruction offered by the Japanese naval and elvilians 'patrols.-Neuler. amall buyer and India a small sel- ler. The market closed quietly According to the driver of the steady, and after the offeinl fix- vehicle, Trol Shu-fan, lie waning there was no special fenture. driving the bus along Nathan Road

London, Feb. 4. A bulletin issued.to-night states: Despite the tiring effect of strict immobility necessitated by Minia- his operation, the Prime ter's condition is satisfactory. The healing of the eye is proceed- ing normally."-British Wireless.

und

whether in Shanghai or churia.-Reuter,

Man-

JAPANESE REJECTION OF

PEACE PROPOSALS.

STATE DEPARTMENT NOT YET DISCOURAGED.

Washington, Jan. 4.

CAN WHISKY BE MADE

IN GERMANY?

BRITISH FIRMS SAY “NO."

(Router's Special Service).

com

An additional duty of one hundred per cent. would be imposed in cases of discrimina tion against British goods.

The tobacco, sugar, McKenna and safeguarding duties, as well as the abnormal Imports and horticultural duties will continue.

The independent Advisory Com nitteo will be salaried and will consist of not less than two, or more than five members, and will devote its full time to considering what additional duties should be imposed and to studying the general interest of trade and Indus- try.

Patriotism in Britala:

Mr. Chamberlain, surveying the situation, recalled that when the On the ground that "whisky" National Government was formed laa purely British product which it was with a mandate to apply an cannot be made elsewhere, six unprejudiced mind, free from all well-known British distillery firms fotters to the restoration of con- are suing a German Arm in a fidence in our inancial stability Berlin court to restrain the firm and to frame plans for ensuring from calling ita products a favourablo, balance of trade. "whlaks."

flo declared he did not believe The British firms. clafin that that anywhere else in the world could there have been auch self- sacrificing and davoted patriotiem. Foreign Minister, Mr. Yoshi-

as was being shown by the British Am-

Nation. He Instanced the fact The Japanese Noto rejecting zawa, told the American-

that, the income tax payable on the peace proposals advanced by bassador in Tokyo that further

January 1st had been received to the Powers

the amount of 2105 million as Britain and the United States suggestions from

against £60,000,000 last year. al. has been under the consideration would be welcome.

The State Department, it is whisky, because of its special He believed the same spirit would of the State Department.

understood, has not yet formu-shorncter. Is dependent on the be made good and that Britain's It is understood that the Dented a new proposal, but may British climate and cannot be financial affairs would come out partment does not feel that tho do so after consultation with made in Germany .... In the First Division of the rejection has closed its door to the British Government and the Furthermore, they claim that the right side at the end of

tho/ycar. The name "whisky Isalosely

• Mr. Chamberlain, mentione the roadway.

defeated terested Powers.

Powers. Reuter's American rown Internationally for ageser Continued on Page - City, playing at home,

that" : "the", Internal purchuinizia Warder Tissier, who was a pathe Kowloon Hospital, where he Portsmouth by two goals to one.

bat past as a British beverage, dvd. Bongor, was cut about the face was detained-for-treatment..

Reuter:

and when opposite the Police kot. Training School he lost control of

Now York reports a steady mar-

HOME FOOTBALL.

PORTSMOUTH LOSE AT LEICESTER.

London, Feb. 4.

Locally and in Shanghai the

the vehicle which struck the kerb market is lifeless.

of the safety zone in the middlo

of the road and then collided with

Home scaffolding on the side of

"Bulls and Innern" will today be found on Page 6.

*

by broken glass. He was taken to English League to-tiny, Leicester a further suggestion by the In-governments of other interested sound with Britain and has been |

It la stated that the Japanese Service.

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