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The
FIRST EDITION
Library, Supreme Court
Hongkong Telegraph
FOUNDED 1881
·五拜禮 號五月三英港香
FRIDAY, MARCH 5, 1937.
日三廿月正
No. 1514K
FRANC SLUMPS
ON RUMOUR OF DEVALUATION
Official
British Intervention
GOVERNMENT DENIES
CABINET CHANGES
Paris, Mar. 4.
BRITAIN
SINGLE COPY 10 CENTS
$16.00 1ER ANNUM
DUNGA
make every road
a SAFER road
URGED TO LONDON'S
SPEED ARMAMENTS
CHURCHILL
ASKS NATION TO MATCH GERMAN AIR POWER
London, Mar. 4.
A qualified blessing was given the Government's rearmament policy by Mr. Winston Churchill, long an advocate of stronger British defence. forces, at the resumed debate in the House of Commons to-day, when the Defen ce Bill was up for third reading. He declared that the fact that the Government was pursuing a five-year plan on this scale, the evidence of the country's great financial strength, the general acceptance of the policy by all parties, the welcome it had received, particularly in the small countries, "all give the Dominions and foreign countries advantages for walking in step with us.”
"The Havas News Agency announces to-day: stabilisation of the franc, if carried out to-morrow, as appears to be generally believed in financial circles, will
"We have now_got a foreign policy based on the not be effected below the present parity of the franc."League of Nations Covenant and upon special agreements
Reuter.
Paris, Mar. 4.
DEVALUATION RUMOURS
Prices on the Bourse substantially improved to-day on rumours of impending Government changes and currency devaluation.
with France, which is what the great mass of the nation
desires.
"If we resolutely pursue our defence programme for four or five years we are likely to be in a far safer and. more agreeable position than at time since German re- armament began in earnest," Mr. Churchill declared.
But they had not heard the Air Estimates, he warned, which were most important of all. He hoped that cotne, and he would be reassured it, froceeding on the present lines, more than £60,000,000 or £70,000,000 were
There were reports of the imminent resignation of the Finance Minister, M. Vincent Auriol, and his replace-large supplementary estimates were to ment by M. Leon Blum, the Prime Minister. It was also suggested that M. Charles Rist, the financial expert, would replace M. E. Labeyrie, Governor of the Bank of France.
required by loan in the coming year. Where Are The Guns?
Mr. Churchill regretted the absence of a quantitative statement in the
It was suggested that the franc would be devalued matter of rearmament, or fixed dates from 105 to the pound sterling to 112, lowest legal tender,
and that a free market in gold would be reestablished.
The Impression has been gained, and has grown, that the Government will be bound to adopt positive meu- to solve the Treasury and sures economic difficulties, instead of-con- tinuing the policy of "wait and see."
When the Bourse closed, 3 Per Cent. Government bonds were 73.75 against 70.95 yesterday. Bank of France shores were 1,475 against 7,900, and Rio Tintos were 3,150 against 3,240.- Reuter.
Bears Open Attack
London, Mar. 4. Paris bunks closed at noon to-day for the mid-Lent holiday.
When the
IAPANESE
SHIP GOLD TO FRISCO
4o progress points.
Germany, he asserted, has 1,500 Runs, apart from the guns in pori- on. How soon, he asked, would Britain have 1,500 good, modern runs, with trained crews and with all necessary equipment?
--He-find the same criticism.to make. of the Air Force, which was nt pre- sent in arrears, he said,
In no other generation would the tiouse of Commons have been willing to continue in complete ignorance of this vital to the security of the
IMPROVED BALANCE nation, he went on, especially in view
URGENTLY NEEDED
"bear" operators seized the oppor- NO CAUSE FOR
tunity and launched the heaviest
delve against French currency seen
for some time,
Discounts on francs
delivery
for forward
against sterling slumped
sharply to 1.81 for one month and
APPREHENSION
Tokyo, March 4.
The Japanese Government has de- 3.37 for three months, compared tofelded to ship gold valued at 50,000,- 1.27 and 3.03 respectively at the 000 yen, at current prices, to America opening.
Pressure against spot francs neces-
in three instalmenis,
of the Governments admission of mis- calculation.
Could the Government assure the House, he asked that the Brilish Air Force a year hence would be more nearly a match for the Ger- man air fleet than it was to-day, or that the German Army would not then still maintain its superiority over the French?
Naval Superiority Mr. Church. said that he thought they could rely upon the superiority The first instalment will consist of the future British Navy in Europe.
aboard the Asama Maru
APPROVES NEW DEFENCE LOAN
MR. WINSTON CHURCHILL
silned the heavy intervention of the of 18,500,000 and will be shipped as long as the right feeling towards Rearmament
British Equalisation Fund.
to
The dates of other shipments have not been disclosed.
The Anglo-French understanding, he continued, undoubtedly amounted Mr. Scitare Yuki, Chief of Gen-to-day to a defensive alliance against
unprovoked aggression,
he
Admittedly
Necessary
eral Affairs has asserted that these shipments in no way give cause for "Anglo-French friendship," apprehension regarding the Japanese maintained, "Is one of the greatest ALL PARTIES AGREE specle reserves.
guarantees of the continuance of However, he said that the Govern-peace, or, at the very worst, our Joint ment and the people of the nation survival."
MORE COLD NEEDED
FUNDAMENTALLY
Mr.
To Sabotage R.A.F. Plane
Disclosed
London, Mar. 4. A case of what appears to be deliberate damage to a Service aeroplane at a Midland aircraft establishment has been reported to the Air Ministry.
The incident is now being in- vestigated by the secret service. It is understood that the Alr Ministry does not consider it to be a sérious caso of sabolage
Other incidents are also under investigation--Reuter.
GERMANY STUNG TO PROTEST
MAYOR LA GUARDIA "INSOLENT JEW”
CALLED HITLER
"FANATIC"
Washington, March 4. Acting on instructions from Berlin, the German Embassy has protested to the State Depart- ment against a speech made by Mr. La Guardia, the Mayor of New York, in which he referred
AIR
DEFENCE PLAN
Wardens to Guard Public Safety
London. Mar. 4.
London's air raid defence plans were announced by Mr. Geoffrey Lloyd, Under-Secretary for Home Affairs, in the House of Commons to-day, -when he stated that a memorandum was being despatched to local Councils re- commending them to organise, in consultation with the police, service wardens for the safeguarding of the general public in the event of an air attack.
It is proposed to establish fixed posts from which the wardens should operate approximately one post for every five hundred inhabitants, while in the commercial areas the number of posts will be governed by distance.
Each post, said Mr. Lloyd, will be manned by at least two wardens. The wardens will advise on air raid pre- cautions and give immediate assistance in dealing with air raid damage. They will also probably be utilised for the distribution of respirators to civilians.
MANY DIE IN MINED STEAMER
SANK AFIRE OFF SPANISH COAST FLYING FLAG OF GREECE?
Perpignan, Mar. 4, A ship, the nationality of which-has-not-yet-been-de- termined, struck a mine off Palamos, within Spanish terri-
torial waters, to-day.
The vessel caught fire and sank, with the loss of many
lives. According to one report, the ship was the Greek tanker, Loukia, which was carrying 3,000 tons of petrol when the dis- aster occurred.--Reuter Special.
POPULAR
to "the brown-shirted fanatic NOVELTIST
who is now menacing the pence of the world."
PASSES
JOSEPH HOCKING DIES SUDDENLY
At a press conference this after noon, Mr. Cordell Hull, Secretary of State, said that although he was not |acquainted with the facts concerning Mr. La Guardia's speech, he regarded ony ulterances which might be offen- sive to another Government as a matter of regret, and added that the
London. Mor. 5. American Government would deal with the situation as soon as he had
It is learned that the well-known had an opportunity of studying the novelist, Mr. Joseph Hocking, has text of Mr. La Guardia's remarks passed away-Reuter. Reuter Special.
RUBBER EXPORTS
Volunteers undertaking the duties of wardens, Mr. Lloyd stated, will be trained and supplied by the Government with the necessary equipment. The Government were confident that a sufficient number of volunteers will be forthcoming for the effective performance of this ghost important part in the work of Eivil defence.
It is estimated that at least 250,000 wandens will be required.-Reuter Special.
FRANCO ACCUSES FRANCE
FEARS INVASION OF MOROCCO
OVIEDO STILL HOLDS OUT
Salamanca, Mar. 4.
A Note accusing France of planning to invade the Spanish zone in Morocco has been sent by General Francisco Franco, in- surgent leader, to the signatories of the Algeciras Treaty, accord- ing to news sent out by the Salamanca broadcasting station.
The Note alleges that the French activities on the frontier in the region of the French Protectorate and Spanish Morocco alm at causing disturbances in Spanish Morocco, providing a pretext for French thus pro
invusion.
It
is added that the insurgent Government will nak the signatories of the treaty to appoint on inter- national commission to very the truth of the allegations. It is also slated that General Franco will ask the London Non-Intervention Com mittee to put an end to these activi- tics. Reuter.
OVIEDO'S SIEGE ··
Burgos, Mar. 4. Notwithstanding flerce assaults on
1
leaving the British Empire was not with- Foreign Exchange circles its Lon: Kobe on March 5 en route to San drawn by the United States. don point out that to-day's slump of Francisco.
not indicative of any the trane s new developments, but serves
of the emphasise the seriousness French financial situation-Reuter,. No Government Changes
Paris, Mar. 4. It is categorically denied in au-
RECRIMINATIONS thoritative circles that the Govern-
Berlin, March 4. ment has any intention of modifying
by must co-operate in expanding Japan's The Labour Opposition motion, re-
London, Mar. 4.-- Mr. La Guardia's alleged reference
London, Mar. 4. its present composition, olther
Neville Chamberlain, the to Herr Hitler has caused a storm of
By a Protocol amending the 1934 Briain, including new Ministers or reshuffi- creative power and the development ing portfolios. It is added that no of the country's natural resources.us ecting the Defence Loan Bill, was resignation is contemplated by any well as the promotion of exports, defeated by 241 to 117, and the Bill Chancellor of the Exchequer, vinding indignation in the German press.
The Nazi journal, Angriff, violently agreement between France,
India, Holland and Siam regulating because the improvement of an inter- was given third reading and passed up the debate on the Defence Loan
on to the House of Lords.--Reuter. Bill to-day, said that the addresses attacks Mr. La Guardia, whom it the production and export of rubber, Oviedo, the Government forces have Minister.-Reuter..
national balance was the country's
in the House of Commons had shown describes as "an insolent Jew."
signed on February 5 and published suspended their attempts to capture tho elty, according to insurgent most urgent need.
Munitions Works there was a real," general and The Deutsche Allgemeine Zeltung | lo-night, Article 4-A of the agreement
fundamental measure of agreement says: "This stupid vulgarity must notis amended as follows:-Netherlands pos
The city has suffered terribly from London, Mar: 4.
be ignored by Washington. We ex- India: 1936, 500,000 ons: 1837, 620, the Government bombardment. The upon the necessity of rearmament. Fourteen new or converted, muni-
The The
that pect that suitable measures will be. 000 tons; 1038, 640,000 tons." Opposition argued Mr. Ikeda, Chiel Manager of the
In force-British Cathedral tower has been destroyed to the level of the nave, whilst there Bank of Japan, commenting on the tions factories in various parts of the Britain's armamentis were excessive taken to prevent a repetition." Protocol is now
Are foreshadowed to country
in because other nations had promised! Reuter Special. shipments
fa not a single building which is not of Japanese gold
marked by shell bursts and bullet America, to-day said that in view of Ordnance Estimates totalling £18,-te assist if Britain were attacked; but
104,000, which
holes. anticipated commercial contracts re£10,178,000, compared with last year, to assist those other nations in turn, is an increase of that implied that Britain would have
It is estimated that, another thou- quiring yon, and also the GovernReuter Bulletin Service..
sand ment's
it the necessity arose, and his in-
civilians have been killed payments of obligations
creased British liabilities, rather than
during the past week-Reuter. abroad, the shipment of 50,000,000
decreased them; yen in gold would probably be in-
Although Britain, under the League
REPATRIATION OFFERED sumclent.
Covenant, had no liability to assist
Paris, Mor, 5. with arms the victims of aggression,
The Spanish Government has the he believed
DI measure
agreed with the iden of repatriating rearmament the Government was
Introduction of the International Non-Intervention Scheme volunteers from Spain, providing the advocating Wes да essential preliminary to the final
stage of is likely to be postponed a fortnight from March 6, the insurgent fortes reciprocate, accord- disarmament-Reuter,
ing to a Spanish press message from originally arranged date for commencement of supervision on Valencia-Router. the Spanish frontiers, as it is now admitted in British circles that it will be impossible for observers of the neutral powers WINDFALL FOR EXCHEQUER to reach their posts either on the high seas or on the land borders by that dato,
Caledonia Completes Long Trip
London, Mar, 4.· The Imperial Airways (Iring- 'boat Caledonia ban made a return non-stop 'voyage from Alexandeta to Southampton in fifteen and a quarter hours, despite head winda and periodio bad weather,
The departure from Alexandria at 18.30 in the morning was faol- ∙Hliated by tho uso of a flars path. Commiteuter.
The problem, therefore, was that of replenishment of the gold supply. In the event of further shipments being necessary, it would be decided inter whether to send newly mined
the gold or to increase
purchase price of gold-United Press.
SHIPPING ORDER
London, Mar. 4.
French Navy
Personnel
Increased
Paris, Mar. 4,
The French Navy's effectives uro to be increased.
The number of naval officers will be raised from 2.112 to 2,340 and the
The Polish steamship line the number of engineer officers from 418 Gdynia Amerika Line, has ordered to 516, not including Reserve officers from Swan, Hunter and Wigham on the active list and midshipmen, Richardson, the famous Tyneside ship-konstr
Wirclear.
NEUTRAL SUPERVISION IN SPAIN DELAYED
London, Mar. 4.
AMP London, Mar, f
EMPIRE DEFENCE
London, MaRREK Voluntary contributions to the cost of Imperial defence by Colonial dave i building firm, a motor vessel of 11,000. FeNaval" ratings will be Increased Dominions Office, has now returned to and are bound fdr Spain from“Amaxi" WHEN Kre not labia Lac ernment amount 1:0 000 to the tone for the Bouth American service from 01,118 to 70,017-Reuter duty at the General Post
- RETURNS TO FOST
London, Mar. 4.
The Non-Intervention Committee's It has been decided, also, to recom-The Exchequer will benent to the Lieutenant Colonel E. T. Crutchley, Public Relations Officer in the Post experts have decided to recommend mend a special control systems for the extent of R352,740 in death duties Office, who was seconded temporarily extension of the control system to la- Canary Islands in order to end on 4 to, just proved, totalling contreband 1,004,300, left by a Miss Watson, last summer to act as additional as- clude ships of powers which are not foreign ship landi
tunity be who died last December, and who sistant ---- Under-Secretary in the
there which might
**ships. | wait a puzdanent Director at Sutton's, aignatory to the neutrality agreement carried to gpain, ging
atrol by the the well-known firm of carriers, Omce.
Bryan Wireless
ca and other non-European porika Neus valorswatient – Beuterede Brition Wireless,