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The
FIRST EDITION
Supreme Copri
Hongkong Telegraph
24, Maibam Rd, Kowloon, Telephone BB101.
FOUNDED 1881
No., 18082
ERD BATA=+EF WEDNESDAY, DECEMBER 16,
CHIANG REFUSES
REBELS?
TERMS
Chang Pleads for
Union
With
Soviet Russia
MEANWHILE LOYAL TROOPS
1
HAVE SURROUNDED SIANFU
Nanking, Dec. 15.
It is announced that Sianfu, where General Chang Hsueh-liang has established himself and a strong body of troops, and where he holds Marshal. Chiang Kai-shek captive, has now been completely sur- rounded by Government forces.
Aeroplanes.dropped leaflets over the city this morning, calling upon the rebels to surrender their captives, which include Marshal Chiang's chief staff officers.
Meanwhile, Mr. W. H. Donald, British adviser to Marshal Chiang, has returned from Sianfu. He denies the report that General Yan Hu-chen is leading a counter-revolt in Chang Hsuch-liang's camp and described a dramatic interview with Chang and Marshal Chiang himself.
In this interview Chang entreated Marshal Chiang to accept his proposals, particularly that for an alliance with Russia against Japan.
Marshal Chiang,. however, declared this was impossible at present.
Shortly after the interview, Mr. Donald telegraph- ed Nanking saying intensive negotiations would be necessary to secure the release of Marshal Chiang....... The rebels were evidently determined to exploit their possession of so valuable a hostage in order to force the Government-into concessions.
The danger is, said Mr. Donald, that the initiative may pass from Chang Hauch-liang to the younger rebel officers, who might decide that general disruption of the country, which would follow the death of Marshal Chiang, would be more favourable than any other con- dition to the realisation of their aims.-Reuter. Chiang Refuses Proposals.
Tokyo, Dec. 16.
The Japanese Domel correspondent in Shanghai quotes the Central News Agency despatches of December 10 announcing that Mr. W. H. Donuld, foreign adviser to Marshal Chlang Kal-shek, had arrived at Loyang following a visit to Chang Hsuch- Bang. He also saw Marshal Chiang, alive.
FREIGHTER ASHORE AT
CASTLE PK.
"There is no change in the cona-EXPECTED TO FLOAT
Hon of Chiang Kai-shek," said this authority.
Marshal Chiang refused various proposals urged upon him by Chang Hsuck-lang, asserting they must be submitted to the Kuomintang Con- gress.
This announcement contradicts all
previous Dome! reports. United
Press.
We presume that among the reports contradicted is that to the effect that Marshal Chiang Kai-shek had been executed, to- gether with other staff generals. at the bands of the rebels in Slaufu-Ed.
AT HIGH TIDE
DAMAGE NOT SERIOUS
GERMANY.
1936. A SINGLE COPY 10 CENTS
33900 PER ANNUM
LOYAL REGT. TAKES OVER
During the ceremony of change-over of the British troops in Shanghai, men of the Lancashire Fusiliers and the Loyal Regiment fraternizing and lining up for refreshments: (lower left) Brigadlar. Telfer-Smollett and the Brigade Major, Captain Rennie, watching the 'ment (low right) the colour
party of the Loyair.
DUKE MAY PREPARED
REQUIRES BUY ESTATE TO GUARD
COLONIES
BRITAIN WARNED OF WAR'S COST
RIBBENTROP OUTSPOKEN
London, Dec. 15. The solution of the Colonial
question is in the interests of
everyone in the long run, declar- ed Herr Joachim von Ribbentrop;
the new German Ambassador to
London, strongly emphasising his argument when speaking at Grosvenor House to-night. It was his first speech to an English audience,
"Herr Hitler sees in the posscasion of colonies for the supply of raw materials, and in world trade, the two most essential means of raising the standard of life of Germans from the present subsistence level" he The Norwegian steamer såld. Promise, of 1,291 tons, is at another world war, would mean the Another Anglo-German conflict, present ashore at So Tun Pan, inevitable victory of world revolu- and the rule of Bolshevism for
tion,
cd last night whilst on her way said, that the German Chancellor's from Canton to Swatow with a cargo of coal.
He
this
IN HUNGARY
Budapest, Dec. 15.
It is reported that the Duke of Windsor is negotining for the acquisition of an estate at Leng- yellou, belonging to Count Zichy.
The estate Is over 4,000-acres In extent and beautifully situated on the shores of Lake Balaton, 80 miles from Budapest.
It includes a castle and pro- vides splendid shooting and golf: -Reuter Special.
RUBBER OUTPUT TO RISE
RESTRICTIONS ARE MUCH REDUCED
CONSUMPTION' IS STRONG
STERLING
BANK OF ENGLAND'S TACTICAL MOVE CITY CIRCLES CONFOUNDED
London, Dec. 15: The City has been confounded
You need.
The SECURITY and
DURABILITY
of thin
DUNLOP FORT 90
Gardeners On
Strike; Paris Goes Hungry
Paris, Dec. 15.
Market gardeners have struck, and though the shortage of supplies of vegetables is not yet acute, the volume of incoming. produce to-day is only ten per cent of the usual quantity and, for that food. with. which steaks are garnished, Paris will go hungry.
The gardeners assert their strike by the Bank of England's largo is due to the fact that the cost of gold purchases, suddenly execut-production is higher than the price ed, amounting to £65,000,000, paid by market dealers. Reuter Bui-
from the Equalisation Fund. And Anancial circles have been startled by the simultaneous reduction of the fiduciary note issue by £60,000,000.
From a host of diverse opinions emerges the majority view that the action indicates the British authori- tles' bellef that such pressure on sterling as may be experienced by the withdrawal of French funds and the possible resumption of the out- flow of capital to Wall Street, could be counteracted by the Equalisation Fund's remaining vast gold holdings. It is pointed out that-a-time when the underlying trend of sterling is firm is the most opportune for re- establishing the Fund's freedom of nction, as after disposing of some of ita gold Holdings the Fund is better equipped to arrest the undesirable appreciation of sterling..
Questioned in this connection in
Service.
GERMANS SUPPORT MOORS
IN FIERCE FIGHT
IN SPAIN
PREDICTS BETTER BUSINESS
NOTED ECONOMIST STATES VIEWS
BUT SAVANTS DON'T AGREE
Cleveland, Dec. 15.
Mr. Leonard Porter. Ayres, political economist, predicts better business in 1997. He states that, despite world unrest and the threat of labour diffoultics, "we are at present well along in the process of re- covery, and the rest of the world is still further along."
Mr. Ayres predicts that the auto- motive industries will hold the lendership in 1937, and that there.... would be slight increases in whole- sale and retail commodity prices, as well as in the cost of living. "It_{n unlikely that inflation will develop in this country in 1937, " he added. "Inflation does not develop in depres sions, and, despite all the recovery we have made, there is still a de- pression."-Unlied Press.
CONTROLLED INFLATION
Professor Irving Fisher, political economist of Yale University, inter- viewed by United Press, statedi. "The stage is now set or a Doom and Indation" in the United States. He urged that the Federal Reserve Board be granted greater powers to control the situation, saying the law creating the Board should be altered to permit of the raising of reserve requirements to an unlimited extent.
Mr. Fisher said juflation is possible in the United States, but added that "the stage is set for the control of such tendencies." He zald the Board could control a boom or in
nation,
ton, Asily, by selling bonds or assets, and by withdrawing
money or credit from circulation: secondly, by raising the re-discount rates; thirdly, by raising the reserve. requirements from member banks.-- United Press.
MEDIATION PROPOSALS ACCEPTED
POWERS TO EXAMINE SUGGESTIONS
London, Dec. 15.
In a Parliamentary answer, the Foreign Secretary recalled the ap pranch made by the British and French Governments to Germany, Italy, Portugal and Rússia in favour of strict renunciation of foreign "in- tervention of the Spanish Civli War and the joint offer of mediation, and said: The replies of the four |Governments have now been received.
The Government of the Union Soviet Socialist Republics have given' their support to the proposals; end the German and Italian Governments, whilst doubtful of the successful
BUT LOYALIST. outcome of the proposals for media-
·LINES HOLD
London, Dec. 16.
A fierce battle. which lasted over
the Boadilla del Monte sector, south-
near Castle Peak, having ground-generations, he added.
Herr von Ribbentrop regretted, he
"repeated offers" of disarmament, non-aggression parts and other peace The steamer, which is
instruments had failed.
London, Dec. 15. · commanded by Captain Meling, is officered by
was convinced. sald
The International Rubber Restric Norwegians. She was built in 1920 diplomatist, that the world would be for Messrs. II. M. Wrangell und Co., unable to return to order and peacetion Committee's announcement of a the House of Commons, Mr. Neville Ave hours, is reported to-day from and her port of registry is Haugesnd. fut development as long as the des-75 per cent quota for the first quar-Chamberlain, Chancellor of the Ex-west of Madrid. Her local agents are Messrs. Karsten tructive Communist ideas Were ter of 1037 and an 80 per cent, quota decided to increase temporarily the chequer, simply stated it had been
As a result, over 200 dead, besides Larssen and Co.
for the following three months, has gold held in the issue department of many wounded.
Government lines, been accorded about the quietest re- the Bank of England by
£65,000,000. ception ever experienced in the Lon-Such a step, by itself, would mean a launched by the insurgents. In the
The attack was don rubber market, where prices very sharp expansion of the credit subsequently cased slightly and then-basis which was at present unjustl. Bendlila sector. steadied, up,
fled, he sald. Therefore, the fiducl- Bry Issue had been reduced by
£60,000,000.-Reuter.
Washington Shocked
Washington, Dec. 15. The State Department lacks con- firmation of the Domei News Agency report of the execution of Marshal Chiang Kai-shek, but the rumour has startled and shocked officials here, causing fears of protracted confusion In China and possible widespread re- percussions in the Far East, upon which the United States would look with serious concern, although she would continue her polley of non-Whampoa intervention.
not {
On enquiry this morning it was learned that the steamer has suffered any serious damage, and that it is expected that she will be re- floated at high water to-night.
Meanwhile, the Hongkong and Dock Campany's. tug Henry Keswick has left for the scene Confirmation of Marshal Chiang's of the grounding. death would cause genuine regret, due to the fact that he is regarded as
a strong leader, fostering the unifica-
tlon and pacification. "of China. United Pres3, ·
Gangster and
CONSIDER PORT "Moll" Fight
FOR TELAVIV
London, Dec. 15. Asked whether the Government proposed to take steps to provide a
Police Army.
New York, Dec. 15. Thirty "G-men" and 180 police harbour for Telaviv, in Palestine, the engaged in a gan battle with a gang Colonial Secretary,
Williamster and his "moll" on the famous, Ormsby-Gore, told the House of and exclusive, Riverside Drive Commons to day that the question day.
to- was being
considered by the Gov- ernment in consultation with the High Commissioner of Palestine,
At present, he said, he was unable to make a statementReuter.
effective. Reuter.
Air Express Missing
LAST SEEN FIGHTING AGAINST STORM
Salt Lake City, Dec. 15. A Western Air Express liner is ten- hours overdue here, carrying four passengers and three of a crew on the run between Los Angeles and Chicago.
The machine was last seen in a storm above Milford, Utah, at 2.20 a.m. this morning.
It is generally considered that what strength, the market, gained on the 75 per cont. January-March
roundabout, it about lost on the 80
Though the decision of the control committed releases about 39,000 tons in the first quarter and 55,000, in the second quarter. more than at present, It is generally held that consumption is running so well, especially in the United States, thoi it is unlikely to be overtaken by production.
BRITISH LOAN POLICY.
declared
interfere with foreign tracheaper In-
were
left in the
of three one
Moroccan troops, with German contingents which recently arrived. carried out the attacks, supported by aircraft and a number of tanks.
It is claimed that the loyalists "re-- pulsed the attacks in every instance, Inflicting heavy losses.-Reuter.
Great Damage By Storms
tion, have expressed their readiness to examine any proposals which other Governments may formulate, and to participate in their eventual realisa- ilon. reply of the Portuguese the Government, whilst indicating- dimculties foreseen by that Govern- ment, states that if both parties in Spain desire mediation they will be glad to study the form It should. take."British Wireless.
QUEENS IMPROVING
IN HEALTH
London, Dec. 16.
It is officially stated that “ thể Influenza, from which the Quem da suffering is taking its usual course. Her Majesty is making good. pröstem towards recovery
per cent. April-June swings. Con-
London, Dec. 15. sequently It is difficult to take up. His Majesty's Government has any particular view on the future constantly in mind the desirability of course of the market, which is exsecturing removal of restrictions on pected to remain steady for some foreign trade and of restrictions upon the movements of capital which, little time.
the Chancellor of the the House of Commons
He added figures of the United Kingdom Imports showed
According to present arrangements, there were with this
fewer restrictions
the King and Queen and the young on trade
London; Dec. 15. than elsewhere
Princessos will go next week to country
The storm which had raged over Sandringham, where Queen Mary Answering a supplementary us southern England since Sunday has the Duke and Duchess of Gloucester tion suggesting ference
Lering of rom Bjaayn itsell out..
Family will join them for Christmas. recently set up over, with a loss of livestock, and it is understood to be. His Majesty.") to give guidance on foreign leading trains have been held up in many intention that, as far as possible, due to the washing away of Balmorel and Sandringham shall be berlain said he thought the terms
the collapse of kept up in the same way as during were very fexible. The embargo on tracka qe
his father's reign. Jending to foreign countries did not Rainfall was almost an inch-in 24 H.M.S. Bruce left harbour this apply where loans had a direct In-hours over most parts of the country morning on her way Home for refluence on increasing British Export and In some places three inches were
Trade, he said.—Brkish. Wirelem, nt and re-commission,
recorded. Reuter Special.
of
Nevertheless, the decision probably Advisory forciona of the 259'eral villages are flooded, how and other members of", the "Royali
·Planes and trucks are checking the emergency landing fields and search- ing the rough terrain over which the liner's course lay-United Pross.means the appearance of complica
tions while "spot "commodity is sa lightly held Reuter,
NAVAL TALKS
London, Dec. 18. The Anglo-Turkish naval talks continued to-day-British
Over 100 shots were Bred and eventually the gangster and his warnan companion were wounded were and foally arrested.-Router Special. Wireless.
should be made flexible, Mr. Cham- places ments' and's
Tho King will maintain the racing, establishment and brie stud of his father's time Wireless.