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The

FIRST EDITION

Hongkong Telegraph.

FOUNDED 1801

No. 13333

一拜禮號六月二十英港香

MONDAY,

DECEMBER

6, 1937.

日四初月一十

SINGLE COPY 10 CENTS $30.00 NEN ANNUM

DUNLOP FORT *90*

This new tyre mects the conditions pro-

duced by in

¿car

icienc

PUPPET DECLARES SHANGHAI AUTONOMY

STRANGE War Planes

FLAG

Stunt Over

OVER

Race Course.

POOTUNG

Japan-Educated Chinese Sats

Up Government

Shanghai, Dec. 6.

Action Does Not

Allay Foreign Apprehensiveness

Shanghai, Dec. 6.

The apprehensions aroused by Su Hsi-wen, a native of the the Japanese military parade | Fuklen province, who was through the International Set- educated in Japan, has in-flement on Friday last were not| augurated a so-called "autono-allayed by the action of three| mous government" in Greater Shanghai, proclaiming himself Japanese planes in stunting to be "Mayur" of the "Tatao over the Racecourse in the heart (Greatway) City Government of of the Sellement yesterday. Shanghai

Su assumed oflice yesterday in While 2,000 foreigners, mostly the former Bureau of Police British; watched Accer and building at Pootung.

In a manifesto which he issued rugger games, the planes per- and llew announcing the Inauguration of his formed power dives Government, Su denounced war and

upheld peace and co-operation. He very low over the race course. --

said: "The Imperlat Japaneso army. Reater.

ou beliealf of the Chinese people, has eradicated the militarists and Com- munists from the Kuomintang."

He also announced that he had formally changed the flag, of which many specimens were holsted over buildings in Pootung. The flag has yellow background with a circle half bloc, half red, resembling the symbol of Taolam-Rauler.

New Kiangsu Government Inaugurated

Yangchow, Dec. 8. The new Kiangsu Provincial Gov- ernment has been Inaugurated at Yangchow on the north bank of the Yangtze River, opposite Chinkiang- Central Newt.

STOP PRESS

SLASHING

AMERICAN

EXPENSES

Roosevelt Striving To Balance Budget

New York, Dec. 5.

on

Culs totalling $800,000,000 amounts appropriated last year are being made to full President Frank- lin Roosevelt's promise of a balanced budget for 1038-39, according to the Washington correspondent of the New-York-Times-

"One Man Incident" Causes Japanese Outcry

VOLUNTEERS GO OUT WITH GUNS

During the week-end members of the Volunteer Force carried out further exercises with machine-guns. The photographer caught them in action at firing point, with officers watching the gunners' progress.-Photo King's Studio.

JAPANESE ENTER

BRITISH SECTOR

Suggested Permit Be Asked In Future

-Shanghai.-Dec._.___|

As a result of Japanese troops at- tempting to pass, and one instance

The Budget Bureau is reported al- ready to have agreed to the cuts.actually passing, through the British Reuter.

has

defence sector of Shanghai without permission, it is learned it has been informally suggested that in future the Japanese Army request leave to enter this pren.

U.S. TREASURY MOVE

Washington, Dec. 5. The United States Treasury

A lorry loaded with Japanese offered for publle sale $250,000,000 troops entered the sector without per- worth of B-year 2.5 per cent. bonds mission to-day, on the way to stallon and $200,000,000 worth of 5-year 1 at a Japanese milk. per cent. Treasury notes.

JAPAN'S ENVOY

ANXIOUS

TALK

TO TO EDEN

VISCOUNT ISHII DENIES COUNTRY PURSUING

IMPERIAL

SCHEME

Paris, Dec. 5.

Viscount Kikujiro Ishii, Japan's envoy to Europe, arrived from Rome to-day and is proceeding to London to-morrow.

In an interview with Reuter, Viscount Ishii said he ALARM SYSTEM

Earller, six Japanese cavalrymen hoped to see Mr. Anthony Eden, the British Foreign TESTED

attempted to enter the British defence Secretary, with whom he would discuss the Far Eastern It is announced that persons hold-sector at the point through which the Hongkong authorities continued to in the $277,000,000 worth of Treu-parade passed on December 3, but situation.

the barbed test alarm apparatus to-day and the sury notes maturing on February 1the British troops refused to remove

wire barrier and siren und bell clamouring from the next, will be permitted to exchange troopers rode nway.—Reuter. Post Office loud-speaker bar the effect of summoning curious Chinese them for an equal amount of the new

A United Press despatch tells of a

many blocks away.

the

While in Rome he saw Signor Mussolini, but it was untrue to say he was on a special mission. "I am on a in the direction of the sound from bond and note issues, but the securi-Japanese soldier having twice as purely private visit," said the Viscount, "but naturally ties which they receive will be in saulted a British Fire Brigade oder I am taking opportunity to discuss the Sino-Japanese addition to those offered for cash sale Molineux, was fighting a

while the latter, Sub-Inspector E. C

blaze in conflict with European statesmen. This question was to the public.

Yangtzepoo on Friday.

touched upon during my interview with Signor Mussolini, but was agreed that nothing should be made public.”

FIERCE FIGHTING

Mr. Henry Morgenthau, Secretary The Japanese appears to have of the Treasury Department, explain-butted the Sub-Inspector with his ed that the new securities will refund head and later to have kicked him NEAR TANYANG others already outstanding, and so from behind,

new money for borrowing is in sight Nanking, Dec. 6. A grim battle is now progressing for the next two months. about five miles southeast of Hsin-

Officials interpret the statement as fengchen, a small village between confirming the Administration's 'in- Tanyang and Chinkiang, where two tention to retrench in the current Japanese regiments are making a financial year and to balance the bud- frantic attempt to smonth the Chinese get next year-Router, left flank, military reports received

here state.

that heavy It is also revealed Chinese troops have been massed at Chinklang while two divisions, which broke through the Japanese cordon at Klangyin, have arrived at their designated positions to check the Japanese advance-Central News,

(Purther Stop Press News on Page 12.)

Precautions On Chinese Air Lines

Identification Of Passengers Asked

Chinese Recapture Changhing

Hangchow, Dec. 6. Changhing has been recaptured by Chinese crack troops which ousted the Japanese Garrison there, necord- ing to reports received from the front.

Part of the victorious Chinese | forces, despatches reveal, have pushed on to Wushing, where, together with other Chinese units, they have now practically enveloped the town. Sanguinary fighting is now going on In the suburbs and the recapture of the town is expected at any moment.

The Changhing populace is said to be jubilant about the re-appearance of Chinese troops.-Central HELDE.

GERMAN MEDIATION FAILURE

"Nothing Definite" Emerges From Kuling Talks

Hankow, Dec. 6. Dr. Oscar Trautmann, the German Ambassador, who has been in conference with Generalissimo Chiang Kai-shek at Kuling endeavouring to prevent persons of an undesirabla, Nanking was subjected to two air persuade the Chinese leader to seek character travelling on planes of the raids during the past two days. peace terms, arrived from Nanking

:

What is seen as an endeavour to

tions,

Nanking Bombed

Nanking, Dec. 6.

Japan 50 the city today, accompanied by the Chinese

that

with

Eurasia Aviation Corporation, is Yesterday morning six new regulation

announced by the bombers appeared over National Government

of China, shortly after the warning had sound-Vice-Minister for Foreign Affaire. through the Ministry of Communica-ed, and bombed the civil air-feld| It is authoritatively stated

within the city limits, scoring Ave "nothing definite" emerged from Dr. hite,

conversations All passengers are now required to Other misalles struck open land in Trautmann's furniss satisfactory identification the vicinity, and one partly demolish Generalissime Chiang-Reuter, either from their accredited officers, ed a house. their Consulates, from recognised There were no casualties—Reuter. public organisations or from their

have received notification from the firme

Americans Warned- United States Consulate

them to prepare to evacuate at short Nanking, Dec. 0. American subjects in Nanking notice, possibly to-day-Reuter.

Advance bookings are included under their régulation.

warning

MASS MEETING VIRULENTLY ANTI-BRITISH

E. T. Maitland Tells His Version Of Shanghai Episode

Shanghai, Dec. 6.

Japanese residents of Shanghai held a mass meeting yesterday in connection with the "flag incident" during the Japanese military parade through the International Settlement on Friday when, it is alleged, Mr. E. T. Mait- land, broke a Japanese flag across his knee. The residents passed a resolution requesting the Japanese Government to "assume a determined stand and to take all mea- sures necessary to secure consideration of the inci- dent by the British Government and the people by im- pressing upon them the outrageous nature of the affair which cannot be condoned:"

Speaking at the mass meeting, Mr. Hamano, President of the Japanese Residents' Corporation, solemnly con- tended that the flag incident was a clear indication of Britain's pro-Chinese and anti-Japanese attitude. All of the speeches at the meeting were virulently anti-British.

CYGNUS TOOK OFF IN GALE

Eye-Witness Tells Of Fatal Crash

Air Marshal Injured

London, Dec. 6.

It is now stated that the Australian passenger killed in the Imperial Airway flying-boat tragedy at Brindisi carly, to- HOPES FOR SETTLEMENT

day, wie Captain MacDonald Viscount, Ishli said he knew nothing Falconer, and not Captain Mac- about German and Italian mediation|Donald, as originally reported. in the Far East, but he certainly hoped that it might be possible to reach a settlement soon.

To-night it was revealed that Air Marshal Sir John Salmond, who was a passenger in the plane, and who There was no question of Japan was at first stated to be suffering from carrying out any Imperial zcheme

The plane, Cymus, was carrying

a cut shoulder, sustained a broken and there was no danger that the right collar bone, but his condition is war party in Japan would get too not serious. much power. But the Communist peril was very great and there might come a time when their patience was Australian and Hongkong mall, and |tried too far by Soviet propaganda

in Japan, he warned-Reuter.

British Labour Leaders Visit Spanish Front

the Crashed at rapidly.

take-off, sinking

Meanwhile Mr. Maitland has mude a.statement to the effect that he was watching the Japanese porade when "suddenly R Japanese civillan violently pushed into my face a

apprese Bag and shouted "wave the When I attempted to avoid his effort he persisted, at the same time pushing his face unpleasantly near my own. He then trust a flag into my hand, whereupon I broke the frail stick.

"Japanese civilians created a com- motion and other Japanese congre- gated about me, punched me about the fuce and body, with the result that I am now, for the first time in my life, the possessor of a beautiful) blue, black, green and pink eye."

Mr. Maitland described how he was rescued by a British police officer and taken to the pollee station where he was kept in the private quarters for safety, as a number of Japanese tried to reach him--Reuter.

Lindberghs Visit U.S.

But Children Stay In England

New York, Dec. §. Colonel and Mrs. Cheries Lindbergh arrived here on an unexpected visit, the first they have paid to the United States since they took up residence in England two years ago.

Complete secrecy marked their voyage on the President Harding.

Col, and Mrs. Lindbergh disembark |ed through the third class gangway. It is understood that the Lind- bergh children are remaining in Eng- land.

A

Tho`.famous aviator and his wife appeared in the passenger list an "Mr. and Mrs. Gregory", and they remaine ed in their suite until the vessel loft Queenstown, after which they ming-

TAKE-OFF IN GALE According to an eye-witness of the disaster there was a wind of gale velocity when the Cygnus left its moorings. After an unusually long run the Cygnus just menared to leave | Jed freely with the passengers.

Colonel Lindbergh refused to talk the water when a sudden gust of wind

to reporters when the ship docked, apparently upset the balance of the but officers of the liner said that the machine which crashed in a gigantis | Lindberghi had come to spend Christ- Madrid, De. 5. Mr. Clement Atilce, lender of the cloud of spray. The nose of the hull mas with Mrs. Lindbergh's mother at be returning abroad immediately British Labour Party in the Flouse of appeared to crumple up like card-Englewood, New Jersey, and they will

after Christmas, Communs, together with Mr. Noel board.. Baker and Miss Ellen Wilkinson, Mir. Robert Lutyens whe one of the Labour Members of Parliament, ar passengers, but he was not seriously rived here to-day on a visit to the injured. He is the son of Sir Edwin

the devastated Madrid front and areax=-Router.,

Lutyens, the architect--fleuter.

Recently it was reported that a friend in United States had received a letter from Col. Lindbergh exprem-- ing a "desire to return to St. Louis |very soon."—Router,

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