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The
FIRST EDITION "TOOTAL”
Hongkong Telegraph.
FOUNDED (ent • WLTA=TRUS THURSDAY, DECEMBER 19, 1935. +
No. 14778
SINGLE COPY 10 CENTS
$49.99 · PER ANNUM.
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SIR SAMUEL HOARE RESIGNS
PEACE FORMULA
ABANDONED
GOVERNMENT MAKES POLICY CLEAR
BALDWIN MAY SHOULDER
FOREIGN OFFICE
London, Dec. 18.
Sir Samuel Hoare, the Foreign Secretary, has resigned. Sir Samuel's resignation, which has been accepted, had been expected for the past several days since the storm of criticism which arose over the Franco-British peace proposals.
There is much speculation with regard to his successor. It is suggested that Mr. Stanley Baldwin, the Prime Minister, himself may take the Foreign Office portfolio or thut Mr. Neville Chamberlain may become Foreign Secretary.
The resignation of the Foreign Secretary has altered the situation in the matter of the debates in Parliament to-morrow. It is now announced that the Earl of Winterton will move an amendment to the Labour vote of censure which Major Clement Attlee, the Opposition leader, will propose.
The Government's spokesman, will; move that the House haling that any terms for the settlement of the Italo- Ethiopian dispute should be such as the Lengue of Nations can accept, assures the Government of its fu support in pursuing a foreign polley outlined by the Government manifesto and endorsed by the country at the| recent general election.
NO EXPLANATION
STORMY DEBATE AHEAD
No official explanation has yet both HAIL OF QUESTIONS announced with respect to Sir Samuel
Hoare's decision to resign, init in ne- cordance with the usual practice in
such circumstances,
Sir Samuel is ex-
pected to make n
to make a personal explanation,
UPON BALDWIN
from the back benches at the end of WERE DOMINIONS
the questions to-morrow.
He has already prepared a 4,000- word speech, intended for the opening
of the censure debute, but his per- sonal statement is unlikely to cover the ground to the
Beuter.
Rame
extent.-
STORM CLOUDS REMAIN
London, Dec. 18. It is learned that Sir Samuel floare resigned from the Government at 6.0 to-night.
lle is taking a rest of six months. resignation is considered to have eased the situation in which the Government found. itself as a result of
Ilis
CONSULTED?
In the House of Commons, Mr. Stanley Baldwiu, Prime, Minister, announced that the House would meet on February 4, after the Christman ndjournment.
Mr. Stanley Baldwin, Prime &finister, who may now take over the post of Foreign Secretary.
CABINET CHANGES FORESEEN
CHURCHILL MAY BE INCLUDED
GOVERNMENT'S BAD JOLT
London, Dec. 18.
TROOPS RUSH TO DAIREN
JAPAN FEARS MORE BORDER TROUBLE
CLAIM SOVIET TRESPASS
Dairen, Dec. 18.
The arrival yesterday and to-day of transports from Japan, laden with troops who immediately proceeded northwards in eight special trains,. has aroused considerablo speculation itt view of the announcement by the Manchukuo Foreign Office that illegal trespassing on Manchukuo territory. by the Soviet and Outer Mongolian's continues unabated. ・・
The statement that these troops are destined for the policing of North Manchuria has not shaken the bellef of observers that they are to be used for some other purpose, as the anti- bandit campaign is nearing termina- tion-Reuter.
Determining Frontier
CHINESE-BURMESE PROBLEM
Bra Mayako, Dec 18.
In the House of Commons, Mr. R. A. The House of Commons will expect Butler, Parliamentary Under Secre the new Foreign Secretary to be a tary to the India Office, replying to really. big man,
Mr. Gallacher, announced that a joint The appointment of Mr. Neville commission to determine the southern Chamberlain, Chancellor of the
Ex-section of the un-demarcated Chinese chequer, would be n populat moveBurmese frontier had been formed. with the Government supporters and would undoubtedly calm the situation, The Commission's
personnel, Mr. giving the Government's critics a Butler stated, WES na follows;- necessary measure
Colonel Iselin (Switzerland), chair- of reassurance, The fact that Mr. Winston Churchill man: Mr. J. Clague and Mr. F. S is on his way home from a holiday Grose (Britain), Mr. Liang Yu-kon cannot be overlooked. He must be and Mr. Yin Ming-te (China). considered among the possible can-
is transferred.
tu the
Sir Samuel Hoare, who has resigned his
1100!
British Foreign Secretary.
MINUTES
DECLARED INCORRECT
PEPPER CRISIS IN LONDON RECALLED
SOLICITOR'S EVIDENCE
Londen, Dec. 18, At the resumption of the hearing with respect to the alleged Irregu- corning Messrs. James and Shako- tarities in the prospectus Issued con- peare, in which three prominent City men are involved, Mr. Andrew Barrie,
Holiellor, gave testimony to-day. was seriously involved in the recent The firm of Jones and Shakespeare London poppor market crisis.
The three men chargod are Mr. Garabed Bishirgian, a director of the firm of James and Shakespeare, Mr. John Howexon, and Mr. Louis Hardy.
HOPE REGAINED AT GENEVA
PEACE PLAN NOW BELIEVED DEAD
ETHIOPIA PUTS FAITH
IN LEAGUE
Geneva, Dec.. 18.
At a public session of the League of Nations Council to-day, Mr. Anthony Eden, Great Britain's Minister for League Affairs, emphasised that the Franco-British peace proposals made from Paris were not advanced as hard and fast, but in order to ascertain the views of the parties to the dispute, and the League itself.
If the proposals did not satisfy the conditions of an agree ment by the parties and the League, the British Government could not continue to recommend the League to support, be- cause this particular attempt at settling the Italo-Ethiopian controversy could not then be regarded as having achieved its purpose.
Mr. Eden recalled that it was originally recognised that any proposals put forward must be acceptable to the two parties and to the League.
Though the present Juncture of events may have proved that this was an almost impossible task, it was proper that at attempt should have been made, he said, however, invidious the task of those who made it.
ITALIAN OPINION DISMAYED ·
WILL PEACE PLAN BE SCRAPPED?
M. Pierre Laval, the Fronch Prime Minister, who was, with Sir Samuel Hoare, responsible for the proposals, pointed out that he did not know what reception the two parties, would give to their suggestions. Ho the
Counel!
pressing an
ho
Ex-
desire to vagined inion on the proposal. But if this attempt did not meet with the consent of all parties, went on, -the-Council-would-not-be-relieved of ita duty, namely: not to neglect any means or miss any opportunity to secure a just and honourable solution to the conflict, as diotated by the Interests of peace and the spirit of the League.
ETHIOPIA SPEAKER
Mr. Barrie testifled that he had been invited to join the board-of- Messrs. Williams, Henry and Com- The expenses would be defrayed by pany in 1928, and had subarquently didates for the poultion of Chancellor London, Dec. 18.
the Board of James and of the Exchequer if Mr. Chamberlain the Indian and Chinese Governments joined
equally, and it was hoped that the Shakespeare and also the Sumatra One reason suggested for Sir Commission would complete its work Company, Samuel Hoare's resignation from the in the field next spring-Reuter.
He said that although the minutes Foreign Office is that he considere
of the Sumatra company showed he the proposed amendment
joined the Board, he did not know about it until a considerable time It is forecast that to-morrow's Labour vote of censure a virtual vote debate in the
aferwards. Minutes stating he at- Commons will be of censure upon himself,
tended directors' meetings onc. Already to-day Mr. stormy Baldwin faced a hail of Opposition
wrong. A mindte alleging he wished to be relieved of his directorship ow-
Rome, Dec. 18. The news of Sir Samuel Hoare's questions.
SANAISHANcn resignation has caused dismay and bo
wilderment here. People wonder if U.S. UNWILLING TO will throw the whole of the peace of the Council and reserves the right "Ethiopia puts herself in the hands proposals into the melting polo submit observations later," M. Beuter.
Maryam concluded.
were submitted,
Sir Francis Acland asked whether his support of the Anglo-French peace the Dominion Governments were con- plan, and at a moment when tension sulted before the ренес proposals was increasing. But the storm clouds have in no way disappeared,
Government supporters do not dis- guine their extreme embarrassment vis a vis their constituents as a result of the events of last week.---Keuter.
Benes Chosen President
CZECHO-SLOVAKIAN APPOINTMENT
(Special to "Telegraph”)
Prague, Dec. 18.
Dr. Edouard Benes, famous Czecho-
Mr. Baldwin replied that the House of Commons, as far as possible, had een kept informed of all develop- ments as they arose.
The Premier reiterated that the Government had received assurances of French
in the event of an! support Italian attack on the British Fleet. ile also re-stated the position with that of the
to sanctions
regard t
Commking
to recommend the League was mioption of any other
measures within Article XVI of the Covenant.
Replying to
Wood' URB. Commander Wedge.
that the
should include compensation by for Ethiopian or European
be properly left for the detailed negotiations.
* dir. Baldwin said the point
Pressed
any
to state whether restrictions were attached to the pro-
grant of a
of a strip of territory to with the port
of Assab, Mr.
Ethiopia,
Slovakian statesman was to-day elcct-nosed ed by the Assembly na President of the nation.
He was given 340 votes to his opponent's, M. Bohumil Nemes, 24.
| Baldwin asked the House to awalt Sir
nut
At any rate the fact stands plainly that the Government has sustained one of the most severe jolts WENDESNESGRUNCAMSİ
HEAVY LOSSES IN TAKKAZZE FIGHT
Italians Claim Hard Won Victory
Rome. Dec. 18. Describing the two days' battle ending on Tuesday, a communique from Marshal Badoglio states that the italian forces attacked an Ethiopian column which had effected flanking move- ments at the pass Dembeguina and dispersed them with bayonets after a violent engagement.
Samuel Hoare's statement to-morrow.
officers The Cabinet met for two hours in
Dr. Benes has been Foreign Minister the morning, in preparation for to- since 1918 and has distinguished him-morrow's debate. Sir Samuel Hoare solf at Geneva and in other interna-Wan again absent-Router. tional gatherings.-—United Press.
NO AIR PACT AGREEMENT
ANGLO-GERMAN TALK
FRUITLESS
London, Dec. 18..
The Prime Minister, Mr. Stanley
Baldwin, deel'nod an invitation in the
House of Commoms at question-time
Herriot May Resign
SURRENDERS HIS LEADERSHIP
Paris, Dec. 18.
M. Edouard Herriot has resigned
to make a statement on the recent the presidency of the Radical Socialist conversations with the German Gov-Party.
ernment, but added "It annoured frost
His position lins been rendered
at
at
The Ethiopian losses were estimated.
over 500, whilst the Italians killed included seven white and 20 white N.C.O.'s, 48
Eritrean N.C.O.'s and 197 Askaris. Two officers and two other ranks, as well
25 25 Askaris, were wounded.- Reuter.
ever received by any administration so noon after an election.
*
There is strong indication that the eventual result will be reconstruction of the Government-Router.
LOCAL DOLLAR ADVANCES
MORNING MARKET
STEADY
the conversation which His Majesty's lifficult owing to many members of Ambassader at Berlin had with the his party having voted against the
The Hongkong' dollar advanced German Chancellor last week that n Government, of which he is a member, en mening this morning, the progress with regard to the proposed At the same time he has personally Bank's official rate being 15. 3.11/10. air pact and air limietien aeremony attacked the "Spolation" of Ethiopla
The business rate was 10. 3/7.8,
elpally to drawings from the Straits.
is at present possible."--British Wire-and has hinted he might resign from the market being steady, due prin-
the Cabinet Reuter,
Dr. Edouard Bones, teha has been elected President of Carcho-
Slovakia.
STOP PRESS
Washington, Dec. 18.
BUY SILVER
were
Marketing Centre Likely To Be In New York
London, Dec. 18. Another step towards the transference if the world's silver centre to New York was the authoritative com- ment on to-day's events in London when the American Treasury was unwilling to buy, even with sellers at 23d., which was 1.7/8d. below the previous day's quotation.
The fact that there is a continued disparity between the London and New York sliver prices renders New York a
more attractive market in which to dispose of the metal-Renter. VERUNTANCEMENTOS
ing to extreme pressure of business, was incorrect.
for
ETHIOPIANS
GRATIFIED
LAVAL IN DANGER
The Ethiopian delegate, M. Maryan duclared that his Government not accept the peace terms, which could only mean capitulation and apollation,
He could not believe, he said, that Ethiopia would be abandoned and delivered to a cruel enemy.
ADJOURNED "SINE DIE"
adjourned the meeting sine die as he The President of the Council, then, said the members would like to know the replies of the two parties to the plan dispute with
the respect to
peace
-Paris, Dec. 18. It is believed here that Sir Samuel Ileare's resignation will have the effect of making M. Pierre Laval's position most precarious.
His majority of 54 yesterday was far from satisfactory and some be- Relief and hope have replaced the lieve that as many as a hundred votes disappointment cast for him then might wing the which preceded the speeches of Mr. despondency other way to-morrow.
and M. Fierre Laval, which
It is thought in some quarters that
Eden
(earlier
and
view that the Paris peace was
M. Laval will have to follow, Sir were regarded as confirming Geneva's Samuel Hoare's example or riak de dead. feat in the Chamber t Deputies next week-Reuter,
GERMANY SURPRISED
Berlin, Dec. 18,
Russia, Spain and Denmark are ex- pected to make Important statements. at to-morrow's private meeting of the Council, but it is believed there will Sir Samuel Hoare's resignation has be no scathing criticisms as the peace surprised the Wilhelmstrasse. The pinn has fallen to the
ground reason is supposed to be the discon- However, it is felt that M. Laval tinuity of the British foreign policy will oppose any proposal to extend under his direction.
sanctions to all and other key pro..
A Foreign Offico spokosinan inter-ducts if Italy replies favourably to the viewed by Router declared: "The Paris peace plan-Router, in a purely British affair. Germany READY TO DROP PLAN is a mere spectator."
Geneva, Dec. 18. The French and British delegaten Government, under pressure of pubile were willing to abandon the Interested to see whether the British told the League Council that they
Other political quarters
aro most
Opinion in Great, Britain, is going to plan. revise ita policy towards Italy Reuter.
AMAZEMENT AND REGRET
lie made an excellent Impression bly conne
at tho
ponce
to-morrow
Mr. Anthorny Eden's Mr. Barrie sated that it was not
said it had al- ways been in the minds of the two until the meeting of the board of
Governments that, the terms should Williams, Henry and Company on
bo Genova, Dec. 18.'. November 29 that he was informed
by the League: M: Laval, in a message, said the News of Sir Samuel ffoare's Council should continue its efforts to there were large pepper commitments.signation has been received here with In the light of to-day's silver intering into large commitments willi-
protested to Mr. Hardy against amazement and regret
Kecure reasonable and just solu tion, if the plan is rejected... developments, some allver dealers put his knowledge.
commit when he attended the Langue Assem
Courail adjourned and will ments were
approximately 21,000 bly In Septembor and it is folt that believe the U.S. Treasury is quitting to get a satisfactory explanation, so of fecign affairs sorved him it
valued at £2,000,000. He falled his lack of experience in the domain criticism of the plan.
In order to
allow members to expre z the world market altogether and resigned from the Board of Williams,
Henry and Company,
critical
A London message states that in Juncture of international the House of Commons, Mr. Baldwin intends to await adjustment of the Afterwards he discussed the pepper
matters. His
said France had assured Britain that position constantly with Mr. Tardy
resignation confirms the Im-n the event of Italy attacking the bo speare..
Franco would support England. Witness
The Ethiopian delegation resignation from
hore United Press. board of James and Shakespeare was the turn of events. His resignation the frankly admitted it was delighted with accepted on January 1, 1936, although is regarded as evidence that Great
FASCIT COUNCIL ADJOURNS he had tendered it the provious Britain will stand firmly by the
Rome, Dee, 18. November. He was annoyed, he sold, League of Nations and the principles Fascist: Grand Council examined the A communique states that the hat these transactions had been en- of the Covenant, and soo the present political situation-in-relation to the tered Inta without consultation with dispute ended in conformity him--Router.
with Franco-British proposals anıl :· ̈ade journed until December 20.—Beuters)
price to a level where other buyers as a director of James and Shake-on of his sincerity and good British Fleet in the Mediterranean.
I
bosides
the Treasury would attracted;--Reuter,
those principles-Router.