Hongkong Telegraph.

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26 Nathan Road, Kowloon. Talaphoria 59101.

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No..14448

五拜體”三號二月八英薄香

FRIDAY

UST

1935.

日四初月七

LBINGLE COPT 18 GUNTH

01400 ZAR AXIOM

continue to ride on DUNLOP

Perfor

POWERS WILL DELAY LEAGUE INTERVENTION

MUSSOLINI WINS

HIS POINT

ITALO-ABYSSINIAN ARBITRATION

ANGLO-FRENCH SCHEME NOT ACCEPTABLE

(By Telegraph. Copyright, Telegraphío Messages Ordinance, 1894. Rosived, Aug. 2, 1.10 p.m.

Geneva, Aug. 1. The European crisis has been temporarily averted. League intervention in the Italo-Abyssinian dis- pute has been obviated, or at least delayed until Septem- ber. Postponement of League Council action was decided upon late to-night when the representatives of the major powers concerned agreed to a compromise.

Britain, France and Italy, through their spokesmen, agreed to the formula originally put forward by France, amended by Britain and revised by the Italians. Doubt

Picture shows the big 12-passenger "Såvela Marokaiti" plane at Kal Tak Anrodromu.'. Had war- ther has delayed the departure of the plant, which, however, will probably lasyd for Nanchang, to join the Italian Aviation Mission, on Sunday morning.-

Mongolia

Replies To

Japan Note

of Italian acceptance was removed at the last minute, it BUT RESPONSE NOT

is believed, following telephonic conversations with Signor Benito Mussolini, the Italian Prime Minister.

The tri-party agreement is hailed as a victory by the Italians.

The

compromise revives the

· Arbitration Commission's efforts, but under the restrictions which Signor Mussolini demanded: name- ly, that the Ualual incident alone

be discussed and the generalities of the dispute be left for a later settle. ment.

Upon receipt of 'Signor Musso- But format (pproval to-morrow the compromise plan will be sub mitted to Ethiopia, whose accopt- anco will pormalt the Council to adopt it at its session on Friday afternoon. Abyssinia's acceptance is anticipated.

LENGTHY DISCUSSIONS The agreement followed twenty- four hours of discussion between M. Pierre Laval, the French Prime Minister, Mr. Anthony Eden, the British Minister for League Affairs, and Baron Aloisi, the *Italian_spokesman at Geneva. The Anglo-French efforts to find a formula temporarily averting war and saving the League, was pro nounced unacceptable by Mussolini, but the three powers eventually reached agreement.

The compromisa la two-fold, in- volving, first, the terms of the resumption of arbitration, and, second, the procedure for the

of the settlement

fundamental differences between the Italian and Ethiopian points of view.

The compromise apparently amounts tó · postponement of thei issue. If arbitration fails to find a remedy, the League will act, but not before September-United Press.

NEARLIER Despatches

Geneva, Aug, 1 Grave complications beset thes delegates to the League of Nations Council meeting who are striving to arrive at a formula which will enable Italy and Abyssinia to reach a peaceful settlement In

their present dispute. It is con-

COMMONS TO MEET CRISIS

SATISFACTORY

CONTENTS NOT DIVULGED

Changchun, August. 2.

The reply of the Government of Outer Mongolia to the second pro-] test from the Kwantung.'Army; made in connection with the arrest

Speaker Empowered To and imprisonment of a Japanese

Recall House

(Special to "Telegraph")_

London, Aug, 1.

In the course of the foreign affairs debate in the House of Commons to-day. Sir Samuel Hoare, Foreign Secretary, said when Parlia- ment adjours to-morrow the Speaker will be em- powered to recall the House, on the Prime Minister's re- commendation, "and sup posing a grave crisis arises, recourse will be had to that, procedure. Reuter Special,

BANDITS SCOURGE VILLAGES

OPERATING ALONG GREAT WALL

WELL-ARMED FORCES

Army surveyor on June 26, was received to-day.

The contents of the message will not be divulged at present, the High Command asserts.

It-is-authoritatively learned," however, that the reply is consider ed highly unsatisfactory, bath by the Japanese command and the Manchukuo Foreign Office..

This is the second Japanese pro test within the past few weeks, The first went out as a sequel to border clashes and the alleged violation by Mongolian patrols of the Manchukuo frontier.

CONFERENCE FAILED

It was intended, following a conference at Manchull, between Japanese and Mongolfan represen- tatives, to arrange for the ex- change of diplomats. Mau- chukuo's allegation that such an exchange was necessary in

in

Prince Alexis Mdivani, whose death motor, accident in Spain le reported to day, is here seen with Miss Barbara his former wife, Hutton, who, since her divorce, has

remarried

PRINCE KILLED

IN CRASH

order to preserve the friendly rela- BARBARA HUTTON'S

tions of the two countries and that for the protection of the 2,000,000 Mongols in Manchukuo such an arrangement was desirable on the other side, was counterbalanced, according to the Japanese-view by Russian influences at work in Mongolia. The conference failed (to bring a settlement.

Italian Prime Minister, at the armed bandits creating a reign of moment.

terror in towns and villages in the

Mussolini, the state that there are more than 3,000 S'HAI EXCHANGE

MARKET

EX-HUSBAND

Born in 1907, Prince Alexis, was

Britain To

Stop Credit

BRITISH POLICY FOR PEACE

COMMONS TO MEET IN EMERGENCY

ALL PARTIES AGREE ON COURSE OF ACTION

London, Aug. 1.

"One of the most difficult world problems to-day

is that raised by the existence of States that have Empires and States that have not," declared Sir Samuel Hoare, Foreign Secretary, during a foreign affairs debate initiated in the House of Commons to-day by censorious Opposition speeches.

Mr. George Lansbury, Labour leader, demanded two World Conferences-firstly, a disarmament con-

For Italy?ference for the purpose of abolishing aerial warfare;

COAL INDUSTRY CAN'T COLLECT

BANKS SEEM NERVOUS

(Special to "Telegraph")

London,. August 1. Executives of the coal Industry | visited Mr. Walter Runciman, the President of the Board of Trade, here to-day li

It is reported that the object of their visit" was to solicit aid. 'In the collection of debts from Italy. In his reply to the executives Mr. Runciman intimated that It would be advisable to cease ship ments to Italy.

to

The Daily Herald to-day says that British bankers have refused agree to extend credits to Italy, expressing the belief that. Italy's financial position is serious.

re-

to

It is also rumoured that the banks' foreign agents have ported that opposition Mussolini's policies is increasing, on account of which they say that; a revolution in Italy is not Im-: possible.-United Press.

INTEREST RAISED.

Rome, August 1. The interest on Treasury Bonds to has been raised from four

five per cent with the object of tapping the fairly bulky savings at present in the peasants' stock-

the Adminstration ings, nounces. Reuter.

Italian Plane Delayed

WILD WEATHER IS

RESPONSIBLE®

An-

and, secondly, the resummoning of the World Economic Conference. With regard to Abyssinia, Mr. Lansbury promised the Labour support of the Government as long as it upheld the League Covenant obligations, though they did not ask that British should act alone.

Sir Herbert Samuel (Liberal) thought it no derogation of the League if Italy, France and Britain, under the 1906 Treaty, got together on the Abyssinian question. He asked the Government to contradict the report that Italian co-operation in Central European matters was so eagerly desired that Britain and France had tied their hands by assurances given to Italy.

LOWEST FOR FIVE

YEARS

British Unemployed

Figures

London, Aug. 1.

It is learned that, when the monthly unemployed.

figures are published on

Sir Samuel Hoare, replying, spoke with great satisfaction caused by the United States having condemned any recourse" to` war": Britažu, he said, was fully con-- scious of her Treaty and Covenant: obligations, and certainly intends to maintain them.

After referring to Imperial versus non-Imperial countries, Bir Samuel Hoare said the way to settle these things was not 'by re- course to force, but by conciliation. He was nervous of World Confer ences unless they were well pra-

Tuesday next they willpared. The Economie Conference

show the total to be under

the two million mark for the first time since June, 1930.--Reuter Special,

CLOSING "OPEN DOOR?"

still existed and maybe in the future we should again have re- course thereto.

GREAT GULF

Britain had already, in March; taken the initiative in favour of the abolition of aerial warfare, but it was impossible to discuss such matters without German co operation, and at present there was a great gulf on the dis BIZKITOTT question between France and Germany:

In the event of hostilities' In

· East Africa, whether the victor bo. Italy or Abyssinia, the effect would. be immeasurably harmful to the

MANCHUKUO MAKES League. It would produce endless.

DECISION

OLD TREATIES

NOT BINDING,

Tokyo, Aug. 2.

The Heinking correspondent of

complications, controversy

crises.

and

ALEXIS MDIVANI

Barcelona, Aug: 2. Prince Alexia Mdivani, the re

The guiding spirit of Britain Great Britain, it will be recalled,cently divormd husband of the

and her French friends for genern, has been watching developments former Miss Barbara Hutton, was

tlona had been built on a bridge between Manchukuo and Mongolia idilled, in a motor smash near the

between Europe and Africa and alertly, and there have been fears village of Abbona, in the provinco of

between Europe and Asia. expressed that the unsatisfactory | Gerona, to-day frontier situation might eyantually The lady who was accompanying

THE PROPER WAY- lead to Japanese action against him at the time was seriously in-

We have shown our sympathy Mongolia which would embroil jured and is in hospital in a critical

the Nippon Dempo stated in a with Italy in more than idle | Russia against Japan-Reuter, condition-Reuter. ̧

The giant 82-passenger plane, despatch that the Manchukuo Cov-words," declared Sir Samuel. "If Shanghai, August 2,

the son of a general, of very old Savela Marchetti" under the ernment, in an effort to avoid for- Italy has complaints against coded that much depends upon Chinese reports from Pelping

Em-in connection with the petroleum proper and regular manner. Signor Benito

Georgian family. His father was command.C. Co, Sung - eign protests similar to those made Abyssinia, let her make them in alde-de-camp to the later Tear and mer A.D.C. to King made a vast fortune out of oil in manuel of Italy, which is at pre monopoly, has announced that it (Loud cheers). These Issues the Caucasus. When the Bolshevika sent at Kal Tak waiting for favour will reject such protests If In be settled without war which came into power in 1917, Prince able conditions to take off to join future they are made in connection would lead to confusion in Europe

Mission at Nan chang, will probably leave on Sun- Interests, and David, were taken abroad for day morning for Shanghai, A decree has been issued, giving settlement among the great colour safety. All three entered busÍTIGES: in Americs subsequently Upon receipt of favourable weathe Manchukuo Government full ed races of the world. BrID Alexis married: Louise van Alen, ther reports from Shanghai this control of all minérals necessary is using every Influence to over Sharghel, Aug, 2 wealthy great grand-daughter of morning Col. Scaroni took the for national defence.

DEPORT DENIE) Exchange rates at, 1.20 a.m. the late John Jacco Astor in 1981, machine from the hangar to test the The correspondant states in his man

but eighteen months later they were surface of the aerodrome but had despatch that the decres states A U.S. dollars 87-9/16 Sterling married Him Barb

divorced. In in 1988, Alexis to abandon the idea of leaving to that Manchukuole under no eb Sir Samuel

-Hutton, day owing to the beavy condition of ligation to guarantee any foreign port that under 1/6-3/16, Gold Bars $854.00.gad site to the

For their ground. He ran the plane capital invested in the country un- * The forein, exchange marked tube, variously unti

about fifty yards on to the landing der the old Chinese treaties un- The

Dold and had to be hauled back on less such patións recognise the £8,000,000: ta

rince Bers

the concrete irunway by the independance of Manchukuoving

The attitudë Manchukuo, Government will not seriously affect for

Tonly

A draft resolution, which om vicinity of the Great Wall, between braces a compromise plan to which British, French and Italian spokes-Helfengkow and Panchakow. men agreed, has yet to be approved One group – numbering“ about by: Signor Mussolini. And in 1,000, is operating near Kupalkow. some quarters, it is believed that he has already declined to accept It possesses 100 cavalry, two field Hand" pieces," and "eight-machine-guns

Signor Mussolini's decision for | Røster,

or against this draft resolution will not be forthcoming until to morrow morning Meanwhile, Mr. Anthony Eden, of Great Britain, (M. Pierre Laval, Prime Minister For France and Baron 'Alolal, the pokesman at Geneva, mult time The Council meeth

to-day!

WEATHER

SPECULATORS DISPLAY

were:

NERVOUSNESS

| was little business pasi Cover N.W. Japan. The, de- Bar (king and Kwang. can

Folightly: The Fabout 400 miles.

Baahi Channel,

of peace, and a formidable”un:

such a calamity Warnaku

(Continued on

Manchukuo.: Goy enma

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