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The

FIRST EDITION

Hongkong Telegraph.

FOUNDED 1881 二拜禮 號九月一十英港香 TUESDAY, NOVEMBER 9,

No. 18360

1937. 日七初月十

OF

NTEREST

To

---HONGKONG LADIES SPECIAL WINDOW DISPLAY

Of GORGEOUS EVENING DRESS FABRICS JUST RECEIVED from PARIS;

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SINGLE COPY 10 CENTS Whiteaway, Laidlaw & Co., Ltd.

$34.00 PER ANNUM

SIGNS OF S'HAI CHINESE WITHDRAWAL

TWO ARMIES Japan May Now Attend Brussels Parley

LOCKED IN CHANGING

DEATH GRIP

Second Day of

Big

Battle to West of

War Girdled City

HANGCHOW BAY

DRIVE

HALTED DEFINITELY

Shanghai, Nov. 9 (8.09 a.m.)

Chinese and Japanese forces on the western front are at present locked in a severe battle, in which the din of trench mortars and howitzers punctuates the almost continuous machine-gun fire. This battle has raged two days. Casualties are heavy.

The Japanese appear to have made further gains, but so far there is no sign of a general Chinese withdrawal, which was formerly anticipated in some quarters.

Meanwhile the Japanese claim to have captured part of the Sungkiang estate, and Japanese troops are now fighting for possession of the whole town from where the entiro civilian population, estimated at 70,000 has al- ready evacuated.

On the other hand the Chinese!

claim Japanese penetration from!

Hangehow Bay has been de BIG TREK

finitely checked with the arrival

of Chinese reinforcements,

which have Laken-up their

tions on three sides of the

BACK TO

Japanese forces in an attempt NANTAO

Shanghai, Nov. 9.

to localise the warfare on the const and to forestall a decisive outcome in favour of the

would vitally factorily completed, the refugee zone Japanese which affect the Chinese positions in Shanghai-Reuter.

Matsui's Prediction Coming True

Shunghal. Nov. 9, 'General's. Matsut's prediction that the Shanghai area would be cleared) of Chinese troops by November 10 is being fulfilled.

With dotalled arrangements sutis-

fat Nantao will be formally opened at

noon to-day.

The safely zone will be maintained by Chinese police, anned with pistols and batons, according to Mayor OK Yui, and the zone arrangement will remala in force so long as the Shang- hai hostilities last,

POLICY INDICATED

Move Would Show Real Spirit Of

Conciliation

Brussels, Nov. 8. 'The possibility of Japan alleguding the Brussels con. ference is suggested in a state- inent issued by cireles in very close touch with the Japaneseļ Embassy at Brussels,

The statement points out that the Japanese Government is. fulfilling the terms of the Nine) Power Treaty by a full and frank disenssion with represen- tatives of America, Britain, France and Italy in Tokyo.

The statement odds that the conference is inspired by the League

Nations.

WALL OF FIRE STRETCHES ACROSS CHAPEI

and includes Soviet FURIOUS

which is not a signatory to Russia, the Nine-Power Treaty, and claims liat if Japan should agree to em delegates to the conference it would be showing a large spirit of conciliation. and making

real concession.

#

The full Conference will meet at 4 p.m. on Tuesday in secret com- mittee. Meanwhile the delegates are diseursing questions of procedure, Mr. Malcom MacDonald, Sceretary of State for the Dominions, hund informat talks with Duminions' re- presentatives whom he mel this

review the situation. evening to Reuter,

Sinking Of Jean Weems Admitted

Insurgents Ready To Arbitrate

London, Nov. 8. When the incident of the sinking of the Jean Weems, steamer, which was bombed by a "pirate" airerufi on November 1, was raised in the House of Commons to- day, Mr. Anthony Eden, the Foreign Secretary.

stated that the aircrati concerned belonged to the Insurgent forces at Salamunen.

TAIYUAN CONFLICT

Hard Fighting. In City Streets

CHINESE IN BAD

POSITION

Peiping. Nov. 9. The streets of Taiyuanfu were the scene of grim conflict yesterday after- Hoon as Japanese troops gradually enlarged their gains, driving the de- fenders to the south.

At 2 pm. Japanese artillery com- pleted the third breech in the walls, enabling the infantry to rush in-and- seize the north-east corner of the city, one third of which is now claimed to be in Japanese hands.

The Japanese plan to force the Chinese troops out of the south gate where an umbush awaits them.---- Reuter.

the British NEW AIR

ROUTE TO HONGKONG

Meanwhile, former residents of

The authorities had undertaken to Nantao are flocking back to their express official regret and to order The bulk of the Chinese forces on homes from the International Settle-forces to take all possible precautions the western front are withdrawing ment and French Concession. Many against incidents of this nature.

the shops in the Chinese city are already i Regarding liability of compensa- quietly in good order, while rearguard a fighting a bitter action reported to have re-opened and tion, the authorities had also agreed, resume if necessary, to submit the case for Scattered Chinese outposts tre Nantao is expected soon to

and to abide by the engaging the enemy, but their with its former busy and prosperous ap-urbitration, drawal or annihilation is expected somelimo to-liny.

pearance.

The Refugee Committee is taking This development means that war-over all pubile places in the peace fore will, for the first time for almost zone including schools, missionury three months, be removed from areas establishments, amusement centres contiguous to the International Settle and theatres in which the refugees, ment

now crowded in the Settlement and whil be The Chinese take the view that the French Concession camps, engagement at Soochow Creek, like given sheiter. The area is reported Chapel, is only a phase-not the end to be capable of accommodating 100,-

000 refugees.---Reuter. of the war.-Reuter.

800 Japanese Wounded Soldiers Sent Home

Shanghai, Nov. 9. Anuther Red Cross vessel carrying 800 Wounded Japanese soldiers, lett here yesterday for Jupon.-Central Netos.

Japanese Reinforcements Pouring Into Shanghai

Shunghal, Nov. 9.. Japanese reinforcements are con- tinuing to pour into Shanghai.

Three thousand Japanese troops, In addition to 1,000 Formosana

and

Blum Strives For Warmer Association

Britain And Soviet

His Subjects

Paris, Nov, 0.

Koreans, were landed here yesterday. M. Leon Blum, former Premier ofj from three transports. A number of France, said during the week-end heavy artillery pièces and a huge that nothing should be done to alter quantity of munitions

also

The Franco-Soviet Pact. unleaded-Central News.

were

Chinese Make Determined Drive On Pinghan

with, a

To promote peace to-day Franco was doing her best to bring Britain and · Russia together as she did in 1014.

results-Reuter.

HIMALAYAN TRAGEDY RECALLED

Germany Praises British Official

Munich, Nov,

A memorial service was held to- day for members of the German Mimalayan expedition, all but one of whom were killed by an avalanche.

The German Government warmly praised the British oficial in the district near to where the disaster! eccurred, for his assistance, and reported that he may be given the Order

the German Eagle.— Router.

of

DANZIG TURNS "ALL-NAZI”

of

Donzig, Oct. 8. The Diet, which in ordering an amnesty for all those convicted Taming. Hopel, Nov. t. view to cutting off theHe added that if the Non-Inter-offences analnet the Nazi regime be- fors. Ontobug 1 stin has ordered the Japanest rear on the Pelping-Honkowvention Committee discussions con- compulsory adherence of all young Railway Chinese reinforcements are tinue, to be delayed France. will persons to ih" Fitler You'h making a determined drive toward resume the liberty to permit exports Organisato Shuntch on the railway in south Ho- of war material to Spain. through the politfent mali

(Continued on Page 12.)

|frontiers—Reuter,

the N

Prohibited oil the excention of

Kwellin, Nov. 9. Prepurations are in the making by the China National Aviation Conjora- Uon for the early inauguration of an air service between Chungking and Hongkong.

The ports of call will include Kwelyang, the capital of Kwelchaw, and Kweilin and Wuchow In Kwangal

The service is expected to start as soon as radio fncllites are installed of the various stations.-Reuter.

Japan Plans

Peiping - Jehol Railway; Line

Nanking, Nov. D. A comprehensive scheme has been mapped out by the Japanese for the construction cf a new rallway link- Ing Peiping and Jehol, according to Chinese reports received in the capital.

Large quantities of construction materials are stated to have been transported to Pelping from Man- churia, and efforts are being made to recruit Chinese workers for the project-Router.

REWARDS FOR BRAVERY

London, Nov. 0. At Buckingham Palaca his morn- ing. His Majesty the King -Invested Major A. Paten with the D.S.O, for conspleuotis gallantry on the North Western Frontier,

Second-leut. T. Pickman was also Invested with the M.C. for. bravery

Pairing,~~ftruier.

When the Chinese army retreated from Chapel, leaving only a skeleton force to light a rear-guard sellon, It set fires in many sections of the city so that a Japanese advaure on the heels of the retiring troops was made Impossible. Vast volumes of smoke rolled over the Japanese lines, choked their infantry in advance positions. The Chin ese, meanwhile, established themselves on the south bank of Soo- ehow Creek, where to-day a batlle rages. Rain finally checked the Chapel Bre. pletored here. after two days.

NOTHING POLITICAL ABOUT BRITISH TRADE AGENTS WITH FRANCO

London, Nov. 8.

The proposed appointment of Agents 'to represent_British interests in that part of Spain now under General Franco's Government, was again brought before the House of Commons to-day, when Mr. Anthony Eden, the Foreign Secretary explained the proposals announced by the Premier, Mr. Neville Chamber- Jain, on November 47

He said! negotiations for this arrangement had been conditional on the settlement of questions concern- ing seized British ships and cargoes. Satisfaction in this direction had been accorded.

many

Mr. Eden referred to the millions of Brilish capital invested) in the extensive territories occupied by General Franco, and said the British Government had been at a greater disadvantage than any other Power In protecting its interests in

iL Spain, and WHS necessary 10 establish machinery to end this state of. affairs.

At the conclusion of Mr. Eden's statement, and the putting of supple- mentary questions, it was arranged that a debale on the subject should take place later in the day.

ARRANGEMENT CRITICISED

Coalition

Government

For Belgium

Brussels, Nov. 8.

M. Paul Spaak has virtually succeeded in forming a new coalition Government comprising Bix Catholics, six Socialists and three Liberala-Reuter.

STOP PRESS

KAITANGATA INQUIRY

RUSSIA PROTESTS TO ITALY

Adherence To Anti- Soviet Accord Unfriendly Act

Rome, Nov. 8.

It is officially announced that the Soviet Ambassador has informed Count Ciano that Russla considers Italian adherence to the ont-Comin- tern Pact as an unfriendly act,

The Polish Ambassador alto called on Count Claso and is understood to have discussed the pact, but it is denied that anything was said about Poland adhering to it.

--PÄCT-VIOLATED----

It is revealed that Russia also ac- cuses the Italian Government of violating the Italo-Russian Pact of friendship signed in 1033.

When the Sevict Ambassador called on Count Clano this morning he was informed that the pact

directed against the Comintern was not anti- Russi

End therefore it gave no grounds for Soviet complaint.

After cabling Count Clano's *X- planation to Moscow, the Soviet Am- bassador received further instructions and again called on Count-Clano.---` Reuter.

Canadian Missionary Party Safe

Japanese Avoiding Marked Property

Tientsin, Nov. D. Rellevios all anxiety concerning the safety of British missionaries who were in Changtch, north Honan, at the time of its capture by the Japanese, a message has been re- ecived here

Mr. A. V. Alexander in the course: of the subsequent debate stated that i the arrangement was likely to pre- judice the situation in Spain and be. fore the rest of the world, and to bring British interesia and the British position into danger. The decision to

with exchange missions

General

25, which resulted in the death of 19 United Church of Canada Mission, Franco went a long way towards Chinese members of the crew, was and Include Dr. Margaret Forster. recognition of General Franco, and

Dr. W.

An inquiry into the burning and General stating that everyone is safe.

of the ss. Kaitangata on Delober

here by the British Consul-

The missionaries belong to the

ายส

Reeds, Rev. J. C. Mat- the move was definitely a contraven- commenced at the Marine Court this Lion of the spirit of the non-interven-morning before the Hon. Comdr. thews, Itev, D. K. Faris and the Res.

J. B. Newill, ..., R.N.,, (reld.), Act-W. H. Mitchell. tion agreement.

Ing Harbour Master.

No casualties have so far occurred · · Mr. Eden interrupted the spenker Besides the Harbour Master, Lieut. to missionaries in the war zone in with the remark: "This gives no Commander 1. V. Keogh, RN. Mr. north China according to reports res recognition whatever," Reuter's W 0. Lambert, Government ceived by the Britt Consulate.

Marine Surveyor, Capt. C. Asquith. Special.

master of the s.s. Scalaria, and Capt N. Hardie, master of ss. King Yuan comprised the board.

GOVERNMENT WINS POINT

London, Nov. 8. Mr. Anthony Eden to-day Informed the House of Commons that orrangé- ment to appoint "Agents" In Insurgent Spain would be completed very shortly.

The arrangement did not recogṛise General Franco as the Government of Spain or na bolligerent.

The Agents' purpose was limited 10 trade protection and the protection of British nationals. The task was not pollucal.

A Government mation for the nđ- journment on which the matter wDE debated was carried by 241 to 107 Reuler,

The musicities have molded the whereabouts of the mughes to the Japa

Love Japanese, who are reported t avoiding bombing and shading man ision compomis tekin

quested to display provenby sid distinguishing them trees caner Saths.

DUKE OF WINDSOR SENDS REGRETS

R

Waskan, Xin Preside? Roses has rectivesă m mtuary from the Dakz oč v bran expressing regnet, commandig. Mee postponement cá

United States, wilb Hoosevelt has acknowledged by Below grafit---{\ruler.

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