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FINAL EDITION

Court

Hongkong Telegraph.

FOUNDED 1001

五拜禮 號十月二十英港香 FRIDAY, DECEMBER 10, 1937. 日八初月一十

No. 15307

BINGLE COPY 10 CENTS $30.00 PER ANNUM

OTORISTS

WHOSE MOTTO IS

Safety

"First"

ALWAYS FIT

DUNLOP

TYRES

TERRIFIC BATTLE FOR NANKING PREDICTED

Japanese Expected To Have Foothold In City by Night

BUT STREET FIGHTING WILL GO ON FOR DAYS, SAY OBSERVERS

Chiang's Old Enemy, Kwangsi

Veteran, Defending

(Special to "Telegraph”) ·

Capital

Shanghai, Dec. 10.

Foreign military observers expect the momentary fall of Wuhu. They predict, likewise, in the absence of any Chinese surrender to General Matsui's ultimatum, that the Japanese army will have gained a foothold within Nanking's walls before night-fall.

This entry, however, will probably be followed by days of bitter street fighting.

It is known that the Japanese main columns are at present three miles from the city, but the vanguards everywhere are within machine-gun range of the outer defences.

Chinese anti-aircraft fire is filling the sky with shrapnel and the terrific noise is rocking the United States Embassy windows. Planes are flying over the Embassy and the safety zone to the north-east and power-diving on Chinese troops. Some of their bombs have landed in the heart of the city.

Half a dozen two-engined Jupunese j bombers, crammed with enses nf champagne, took off for Nanking to- day for the celebration of the Japan- | ese victory which is expected at any time.

Japanese officials smilingly ad- mitted "We have kept some for our- selves."-United Press.

Kwangsi's Veteran Holding Nanking

Shanghui, Dec. 10. With the issue of General Matsul's ultimatum to Ranking, the Kwangsl warlord, General I'el Chung-hal, who at the outbreak of hostilities buried the hatchet

Generalissimo with Chiang Kai-shek and came to the foro no second military commander, In Chino, is the man of the moment.

General Tang Shen-chi as Gorrison Commander is nominally in control of the city, but actuni power is vested in General Pei Chung-hst, the "Ironsides" Commander, General

JAPANESE

PRESENT ULTIMATUM

Would Spare City If Surrender Guaranteed

Matsui

Offers

Harsh Terms

WAR WILL CONTINUE

"Inner Cabinet" Of Japan Reaches Decision

Tokyo, Dec. 10. In an historical decision, members of the "Inner Cabinet" to-day agreed upon

the necessity of continuing hostilities in China after the fall of Nanking.

Simultaneously it was decided to disregard all Chinese peace

mavest "unill

und

unless China manifests a sincère desire for the reconsideration of her anti-Japanese policy."

The Prime Minister, Prince, Konoye, the Foreign Minister, Mr.

Кокі Hirota, the Finance Minister, the Navy Minister. Admiral Yanni and the War Minister, General Sugiyama participated in this momentous meel

It agreed that as a result of the severe blow dealt to the

"

Bombs Narrowly Miss U.S.S. Panay

CARRY USEFUL, WEAPONS

Better training and longer experience of discipline may be largely responsible for the Japanese soldier's apparent superiority over the Chinese, but weapons make much difference.

Apart from their mense superiorityinjartillery, aircraft, tanks and other such modern weapons, panese have equipped their infantry with the best of up-to-date tools, including light machine-guns, rifle grenades, trench mortars, which are in- valuable in isolated actions such as the little group of outposts above is fighting at a bridge-hend.

LOSS OF ITALY FROM LEAGUE NOT DISASTER

BRITISH PRESS NOT LAMENTING DECISION

EXTENSIVE AIR ATTACKS BLAST NANKING AREA

HEAVY CHINESE FORCES MOVING TOWARD FRONT

Nanking, Dec. 10.

Three Japanese planes bombed Pukow intensively yesterday, and three others flew directly over the U.S.S. Panay, dropping half a dozen bombs into the river some yards from the American warship, their deafening ex- plosions shaking the ship. Other bombs blasted the Pukow waterfront.

Members of the United States Embassy staff moved to the Panay permanently to-day due to the Chinese notification that the gates would be closed at 3 p.m. "General Quarters" was sounded aboard the ship during the air raid, machine-gunners and men armed with rifles, hastily donning helmets, while officers rushed the civilians into cover.

RUSSIANS TRUMPET WARNING

Molotov Campaigns Belligerently

Fascists Are

Enemies

Moscow, Dec. 9. Soviet Russia has kept out of war for more than 16 years, but now she is ready to meet any attackers, declared M. Molotov,

The Daily Mail, in an editorial on Italy's reported President of the Union Council intention to leave the League of Nations says: "Such of People's Commissare in at:

a break would not surprise any who recall how election address to his const-

would completely crush her

The Panay was preparing to move up-river about a mild and a half when the bombs dropped at split second intervals on the port the vessel. One fell 300

tipping the ship up end pjom

terride splashes of w

Eventually the Pne anchored near

the present

dens

more dangerous, dua there are Chinese machi

and-troop concentrations

yons.

banks only 200 yorda away the Panay.

Black smoke was billowing up from Pukow from fuel stores, which had been blasted opposite the Panay, Half of Nanking was also obscured by smoke.

Reinforcements Arriving

A noon-time tour yesterday showed that new Chinese troops, field guns and machine-gun units were moving southward to the front, but did not enter the city. However, many were just outside the city walls.

The American evacures reached the gate when it was obscured by smoke (Continued on Page 4.).

embarrassed have been the relations between Italy and tuency. He added the Soviet STOP PRESS

the League since the sanctions attempt during the enemies, but the main enemy Abyssinian campaign. Another defection by the front was beyond the borders of the rank group must make the League organisation still Soviet and in the camp of belli- more shadowy and attentuated."

cose Imperialism, especially the

The Daily Express says: "If Italy goes it makes fascist countries. no odds. Mussolini treats the League as some Christians out serious measures to conseil- The Soviet was persistently curry- treat the Church-as an excellent organisation so long date the defence of the as it does nothing about anything."

The News-Chronicle observes:

inte

armies the Chinese Government leaders

were apparently making peace moves through the good offices of third parties. These moves, how- ever, cannot but. be regarded an "in- sincere efforts to bring about Shanghai, Dec. 10.

patched-up peace" for China hes as Chang Fah-kwef, and other pro-war According to Domei's corres- yet failed to show a desire to co- generals.

pondent at Nanking, Japanese operate whole-heartedly with Japan General Pel Chung-list who is re-planes dropped notes inside then furthering the cause of peace in gorded as Chiang Kai-shek's logical

East Asia. successor, is believed to be responsible wall of the city at noon yester

For this reason there can be no talk "Few tears will be shed. Honesty in for stiffching the previously flogging day requesting surrender of of peace unul the Chinese Govern- International relations is always pre- morale of the defenders. On him, Nanking to the Japanese forces, ment reverses Its

towards ferable to hypocrisy, and Mussolini at therefore, rests the momentous an- and indicating that a reply was

last is going to make an honest coun- Japan, it is stated. swer to General Matsui's challenge—

The decision of the meeting will be try of Italy an regards the League. Reuter.

submitted to the Cabinet for approval The League will be stronger, and to-day-Ruter.

purer for her departure."United Preis.

Claim Amazing Air Victory

Shanghal, Dee, 10, The Japanesa naval spokesman said that during the Nanchang rakt yesterday "alightly over six" Japan- ese planes shot down 10 out of be-! tween 20 and 20 Chinese planes which fought them.

MILLION MEN IN YANGTSE. VALLEY

Shanghal, Dec. 10.

polley

ANGLO-FRENCH GESTURE

HINTED

needed before noon to-day.

At 7 o'clock last evening the Chinese had not replied and the battle was still proceeding. Tokyo Seeks Money For United Press.

China War

Tokyo, Dec. 10,

Parle, Dec. 10, National Bonds worth 800,000,000 It is semi-offcially Indicated that yen, designed to cover part of the Britain and France may recognise cost of the China incident and a frace Italy's conquest of Ethiopia in the General Matsul's "ultimatum to ton of the budgetary deftelt, will be

event of Mussolini withdrawing Nanking reads as follows: "The issued by the Treasury this month, Italy's resignation from the League, In addition the Japanese machines Japanese forces, exceeding 1,000,000 It is semi-officially learned.

United Prus), bombed 13 or 14 of 30 Chinese planes men, have occupied the entire south Of the first instalment of 300,000,

FORMAL RESIGNATION ON which ware on the ground, after Yangtee Valley and have now com-000 yen to be lasued to-day 200,000,- which they returned safely to their pletely surrounded Nanking, IL 1000

SATURDAY be classified although one plano lost two anticipated that bostilities will bid no Manchurian Incident Appropriation. wing in a collision with a good to anyone, but horm alone. The bonds will bear interest at 3.5 Chinoro pinne in mid-air.

Nanking is an old capital, and until per cent. to mature in seven years

(Continued on Page 4.)

and three months-Reuter.

The Japanese army spokesman this morning was silent pending the Chinees reply to the · untimatum United Press,

A

If peace moves had succeeded, it is stated, he might have resigned, but this step "le out of the question as

as resistanco continue."

Chiang Not Resigning

ekada Nanking, Dec. 10. The Generalissima le continuing The rumour that Generalissimo active direction of the Chinese opet Chiang Kai-shek has, resigned or in- tions from headquarters in an, um tonda to resignt la emphatically deuled divulged pantre in the interior Jis auslai quartors hära

| Reuters.

ven

will

:

LOYALISTS ATTACK MAJORCA

But Air Raiders Fail, Dismally

Pariz, Dec. 10.

country,

ULTIMATUM IGNORED

Shanghai, Dec. 10. There has been no reply from the "We are strengthening the Red army Chinese garrison at Nanking to the and strengthening the defence of in-¦ ultimatum presented by General dustry, and we desire that every Matsul. The [plant and every collective farm noon to-day.

should be a fortress to defend

This word culture" he de- authoritative economy and our clared.

Reuter.

our

After a satirical reference to the anti-Comintern Paci, M.

ultimatum expired at

was given out by quarters to-day

Molotov 77 DEAD IN COLD WAVE stated that "in the event of armed

New York, Dec. 0. attack on the Soviet, the attacker will

Arctic air in an unbroken line feel both the might of our iron self from Point Barrow to the Gulf of defence and the power and light of Mexico has spread a sheet of ice and The Soviet ruby stars which shine for know over half the nation, and beyond the borders of our country." brought a steadily mounting death From all parts of the Soviet Union roll to 77 known dead in the winter's crowded meeings heard an oddress severest cold wave. These Include It is reported that in one of the from all the Union Central Council five dead in one of the worst storms most spectacular engagements of the and Trade Unions, in which it was in the history of Niagara, Feurtern. war the Loyalists sent 24 planes to stated that the "Soviet will merci have died at Knoxville, Tennessee, in Majorca in an attempt to carry, the early crush and destroy all enemies. Oregon arid Illinois from fires as a means to result of overheated stoves, and one battle to General Franco's fleet, which The Soviet now has the te blockading Barcelona and Valencia. Crush enemy foreca and fascist bands death has been due to exposure,

An attack was made on the they attempt to attack our coun- Herlin, Dec. 10,

Canarias and other warships In Port try,"-Reuter. Well-informed officials here state Palma, but Insurgent land batteries, that it is expected Italy will formal-anti-aircraft guns, aeroplanes and

y resign from the League of Nations warships drove off the Loyalists. on Saturday-United Press,

DECISIÓN ANNOUNCED

Geneva, Dec. 9. Italian quarters confirm that Italy Uic League on Saturday will announce her withdrawal from

CONFIDENCE VOTE FOR BELGIAN CABINET

Brussels, Dec. D. Adence in the Government by 122 to The Senate, pamei a vote of em

with three abstentions to-day, following a ministerial declaration of

foreign and domestic polley, la

meeting of the Fascist Grand Council According to a Rome message, the

expected to last only a few

(Continued on Page 4.).

It is claimed that seven Loyalist! machines were brought down, but the Loyalists claim that only one was lost and that three Nationalist planes were destroyed. Neither report mentioned whether the warships had been hit.

GREAT FLIGHT BY

US. PLANES

"

New England escaped the sub- normal blast, But at Battleford, Saskatchewan, 40 degrees below zero was recorded, which is the lowest for any part of the country. The highest 78 at Miami. At Temperature was Charlotte, NC., three inches of snow has fallen, and further now is ex- preted at Toronto.

The second day of the blizzard do- Cocosolo, Panama, Dec. 9.

layed trains and blocked highways in The American navy planes landed western Pennsylvania, where the here at 11.10. a.m. E.S.T.. after 21 death roll at the present numbers Loyalist planes combed the suburbs which was without incident

Unable to attain their objective the hours and 95 minutes non-stop dying eight-United Press,

excopt north-east of Palms, and 40 civilian for squalle during the last 100 miles.................(Further Slop, Prem News on casualtios are reported.----United Preps. |--United Press;

Page 12.) E

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