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The

FIRST EDITION

24, 1937.

Hongkong Telegraph.

FOUNDED 1001

No. 15399

DECEMBER 五拜祖 號四十月二十英港香 FRIDAY,

BA+SINGLE COPY 10 CENTS

PER ANNUM

B

DUNLOP FORT ·

This new tyre meets the conditions pro- duced by increased car efficiency.

90

JAPANESE GAINS IN HANGCHOW DRIVE

FLANKING BLOW Date of Tokyo's Reply to U.S. Still Unknown

SUCCESSFUL,

LICHI CAPTURED

Chinese Defenders Now Admit Difficulties

Shanghai, Dec. 24.

Adopting again their favourite and highly successful out-flanking strategy, Japanese forces attacking Hang- chow area are developing a menacing thrust towards the famous city from the direction of the Chekiang, and Anhwei border. Moving swiftly from its base on Kwangteh and Szean, a Japanese column is reported to have reached a point only 20 miles north-west of its objective.

After capturing Lichi, a small town on the highway from Szean to Yuhang, 15 kilometres west of Hangehow, the Japanese are now building strong defence works around the town, preparatory to establishing it as a forward base for future operations.

The Japanese are believed to be planning to strike next at Huanghu, 33 kilometres from Yahang. From Huanghu the atackers will likely drive on Yuhung. The capture of the Jotter point would virtually scal the fate of Hangchow as the town controls one of the two highways on wölch Chinese soldiers cun transport | supplies and reinforcements,

Admit Soriousness Of Threat

The Chinese forces believe this! new Japanese move is by far the most serious threat to Hangehow, pointing out that the outflanking movement from the Chekinng-Antiwel border, with frontal attacks along the Shang- hai-Hangcho

railway Hangchow-Wuchow and Shanghai- Hangchow Highways would increase the difficulty of defending the city.

and the

To counteract the Japanese flank- ing movement, Chinese mobile units: are reported have been sent to conduct extensive operations in the -vicinity of Kwangteh and Szean. At the same time the main body of Chinese troops is also rushing pre- parations along the Szenn-lianchow highway to stem the advance of the Japanese forces along the road to Yuhang-Reuter,

"Notified Zone" Proposed

Hankow, Dec. 24. The Consular Corps here Is dis cussing with the Japanese a proposal for the establishment of a "notified zone" in Hunkow for the protection of refugees in the event of the elty being bombed and bombarded by the Japanese.

The proposed zone would include the French Concession and special

rens along the Bund,

The plan in understood to be meeting with considerable opposition: by the Japanese who maintain the zone would interfere with Japanese military operations,

King to Open

Empire Exhibition

London. Dec, 23. Besides the King, who will open the Empire Exhibition in Glasgow on May 3, the Prime Ministers of Canada, Australia, South Africa, New Zealand and Southern Rhodesia have accepted Invitations to become honorary Presidents of the Exhibition, to which 12,000,000 visitors expected between May and ̈Octo ber.

are

The cost of the exhibition is estimated to reach £10,000,000,-- Reuter,

WORLD WHEAT PRODUCTION

Washington, Dec. 23. The Department of Agriculture re- ports the estimated world wheat pro- duction, excluding Russia, as 3,779,- 000,000 bushels-United Press.

Chinese Advancing In South Hopei

ITALIAN ATTACKS RESENTED

Stirring Trouble By Radio Talks To Palestinc

Mussolini's Poison Pen

London, Dec. 23. Strong criticism of Italian anti-British propaganda was ex- Fletcher (Lab.) on n motion for pressed by Lieut-Comdr. R.T.H.

the adjournment of the House of Commons for the Christmas recess to-day..

He accused Signor Benito Mussoli

of being the poison pen of Europe relations, Italy had completely mentacious story about

and the whole world of international

started

Portuguese colonies whens Anglo-

Portuguese relations had recently in- proved. Since Signor Mussolini's personal message to Mr. Neville Chamberlain last July, the Bari broadcast had increased in violence.

stirred Bari had persistently

up in Palestine agitation

and fomented discontent here, said Commander Fletcher, Italian agents practically give away radios to Arab cafes which pick up the broadcasts. Talks in Arabic were now given dally.

TANK UNITS APPROACH NANKING

Photogranked while a belet halt was called in the vicinity of Nanking during the recent attack on the former capital by the Japane e, this time, or mechanized army later played an Important tune for bris th w of pict The Ene of

tanks la trovar -~ ot tur reads leading through the hilly district surrounding Nasing-Photo by Domci,

DENY FALL

OF TERUEL

Insurgents, Rushing Relief Column

Lord Cranborne, replying for the

Salamanca, Dec. 23. Government, said Mr. Anthony Eden, Insurgents to-day denied the the Foreign Secretary, had sent for capture of Terus by Government Count Grand a few days ago and troops, and sinted that the garrison told him that unless the propaganda there is holding out with great against Britain could be terminated, | bravery. and that reinforcements

Renter.

it would be impossible to create an are being crushed 10 its relief. atmosphere for the prosecution of a successful

conversation aimed at

improving mutual relations.

"We hope, and believe, the good sense of the Italians will see that our representations, which were effective an previous occasions, will be effective again. Otherwise it is clear we must take further measures," sald Lord Cranborne.

He assured the House Chat the Government would not hesitate to take whatever measures it thought (necessary or uppropriate for the pur-

pose.

the

The matter was then dropped and i

adjourned. Reuter's

} Special.

House

ARABS MUST DIE

Navy Hunts Helpless Steamship

Four Men Picked Up In Open Boat

istanbul, Dec. 23, The British fleet-tender, Olympus, picked up four men in an open boat Norwegian steamer which lost her propeller 00 miles off Malta and had drifted within 15 miles of the island.

near Malta. The men were trom a

The mate and three seamen then took about in an attempt to reach shore but were unable to land.

Jerusalem, Dec, 24. Four Arrbs were sentenced to death at the Jaffa Assizes for the murder of another Arab during a highway robbery near Ramlel on July 26.

Eleven Arabs were estimated to be killed when police and troops engaged. la big Arab porty near Arrabeh, west Hsuchow, Dec, 24. of Tiberius, The engagement follow Following the capture of Tamingfu,jed a pincer-like movement carried 120 miles south of Shinichinchwang, out over several days by police and

frontiersmen, southern Hopei province, the Trans-Jordan Chinese forces are advancing rapidly operating with troops and aircraft-Reuter. on to Kwangping and Chenguń, ] Reuter," according to a military despatch received here-Central News

in

Counter-Offensive Launched

Isuchow, Dec. 24.

A section of the river is included in A counter-offensive is bring

the proposed protected urea because launched by the Chinese forces at of the numerous foreign warships and Chuhsien on the Tientsin-Pukow merchantmen which are at held up at Ilankow because of the Railway about 50 kilometres north

Chinese booms below that city.

present

The Consular Corps Insists on the erm "notißed zone" being applied, us they wish to emphasise that while they are doing their best they are unable to guarantee the safety of lives and property within the urea.- Renter.

Chinese Progress- In North

suchow, Dec. 24. With crack reinforcements rushed to the front, Chinese forces advancing southward along Tientsin-Pukow Raliway zone, uc- cording to military advices.

are the

of Pukow, according to a foreign missionary who just arrived from

Chubsien.

BRITAIN'S

ATTITUDE

STIFFENED

The steamer is still adrift, and British destroyers and naval planes CON are at present searchlag for her.

But Intentions Kept Close Secret

CHRISTMAS BANK NOTE ISSUE RECORD

London, Dec. 23, The London Stock Exchange was inactive and there were few notable changes, Gilt-edged stocky

en countered a little pre-holiday liquido- There is no trace vi Japanese troops immediately north of Pukow,

tion. The Continent bought Royal London, Dec. 23. Dutch and Paris enquired for a few he said.

All newspapers continue to give | Kafra. Far Eastern bonds were prominence to the China news which again marked down. Chinese youths in north Kiangau,in now the first topic of public he revealed,

The Christmas currency demand ure organizing them-Interest. The Government's inten- selves Into volunteer corps to harass tions are a close secrecy but it is resulted in the Bank of England note the Japanese troops and defend their widely believed that the British issue reaching a new high record native land.-Central News.

attitude has been stiffened by recent of £509,300,000, which compares with events. Official clrctes regard the £474,100,000 for the correspondia possibility of a Japanese threat to week last year,

Wall Street opened quietly irre- Canton with reassuring equanimity, and are of the opinion that Tokyo is gular-Router's Special, concerned by unwieldy commitments

Japanese Warships

Sighted

Anlting, Dec. 24.

In which the army's exuberance_has

According to a telephone message plunged Japan. The Japanese Gov- One crack unit han already pro- from Hohsien, several Japanese war-ernment is now completely puzzled ceeded south of Mingkwang, ships have been sighted steering up how to dene the country's precise Chisshan and Chanpaling and are the Yanglse River. While pressing on the Japanese at Shanghai. Hohsien in the afternoon of Decem

passing aims in China.

U.S. SILVER PRICE

Washington, Dec. 23. Mesars. Handy and Harmon's official silver price was quoted at

Several columns are also moving ber 21, two of them machine-gunned Mr. Que Tal-chi, Chinese Ambassa-443 cents per ounce here to-day. on towards Cliuhalen, strategic the Chinese on the bank. Anhwel cky, and Chuanchino.

Another report states that ferce Aghting has broken out along the Grand Canni al Kabyul and Shaupo, nor of Yungchow.

The situation around Huainan is quiet-Central News.

French Strike Spreading

Workers Occupy Aircraft Works

Paris, Dec. 23. Three nationalised aircraft factories two at Argenteuil and one nt Sartrouville near Parls have been occupied by workers who state that their action is an expression of solidarity with the workers Columbes who are threatened with forcible expulsion from the factory they have occupied.-Reuter.

QUAKE ROCKS MEXICO

Feared Casualties May Be Severe In Interior

at

NO FURTHER NOTE

FURTHER CONTEMPLATED

But Hull Stands Firmly On His Original Demands

Washington, Dec, 23.

It is not believed that a fresh note on the Panay inci- dent will be despatched to Japan, but such new informa- tion as emerges will be forwarded to Mr. Joseph C. Grew, the United States Ambassador, for use in presenting additional facts to the Japanese Government as an adden- dum to the original protest.

The United States Government stands firmly on the basis of its original d „mands.

Tokyo Cabinet Considering Grave Matter

Tokyo. Dec. 24.

The Cabinet to-day will consider d "certain Important diplomalle measure" the nature of which is not divalged,

The measure will later. De presented formally to the Privy Council for approval before the year's end.

It

rumoured that Uils measure may be one of two things: the Announcement of Manchukuo's adhesion to the Anti-Comintern Pact or a do- mand for the revision of the _Nine_Power_Pact__Reuter.___

“CHRISTMAS

EXPRESS" DEPARTS

Cancellations At Last Minute

Mexico City, Dec. 23. An earthquake shock, the heaviest

Hankow, Dec, 24. ever experienced here, rocked the city to-day for Ave minutes. A large

Owing to last minute cancellations surrounding area, including a num-on the "Christmas Express," the train ber of towns, was shaken.

also sharply left Hankow yesterday with only 204 refugees of all nationalities for Hong- of the 324 originally kang, Instead The casualties and damage are not booked. yet known, though in Mexico City i itself the earthquake caused slight

Hundreds of husbands and friends damage and only two deaths so far gathered on the Butterfield and Swire have been reported,

hulk at 6.30 m, yesterday to bid good-bye to the passengers. Many Nevertheless, serious damage feared in the interior where the quake across the river to the railway sta- accompanied the refugees in launches was very severe. Telegraphic com- tion at Wuchang. munications have been interrupted.- Reuter.

THREE DEAD IN MEXICO CITY

Mexico City, Dec. 23.

At least three are dead in Mexico City as a result of the earthquake, and it is feared the death roll and damage in the outlying areas, will be high-United Press,

SEASON'S GREETINGS

The Hongkong Telegraph wishes to take la opportunity to wish all its readers, new and old, a happy Christmas Season.

Thla newspaper will not be -published Christmas Day, nor on Sunday, but wilt resume normal production Monday.

RESTRICTIONS REMOVED

The quarantine restrictions Impos-

Promptly at 9 o'clock the brightly be-flagged train drew out of the busy station carrying its none-too-huppy travellers, who waved last forewells.

135 WOMEN ABOARD

A London drizzle completed the quaint pletare, Hopes that another International refugee train will be ørranged ore rising, and it la learned that negotiations ure proceeding to send another batch of Innkow re- sidents southward about December 23 or 20.

Yesterday's train took 107 Bilions, 06 Amerleans, 41 Germans, 23 Nus- sians, ten French, nine Italians, three Swedes and three Norweginns. of the total number, 138 were women, 05 children net 71 men.

Providing everything goes as plan- ined, the train should reach Canton at dawn on Christmas Day, and pro- spects are bright that the train will go straight through via the loopline to Hongkong-Reuter.

dor to London, goes to Paris to- The Industrial price was quoted at

ON LECTURE TOUR Large batelies of Japanese troops Ambassadors in a conference in the

morrow to meet Continental Chineer 4234 cents per ounce.-United Press. are withdrawing from Wuhu

London, Dec. '23. Kwangteh on the Anhwei-Cheklang is now in Europe, and

to presence of Mr. Cheng Kung-pu, who

ed by the Government of Japan Colonel Thomas Chou, former who w Manchester fund has sent a first against arrivals from Hongkong on Secretary to Marshal Chiang Khi border presumably to reinforce their afterwards return to Chinn. one new fichting around Tengehow, I

contribution of £300 and a further | account of cholera have been shek, left to-day from Southampton -Central News..

The Lord Mayor's Chinese Relief! £000 is expected to be forwarded | removed, as have restrictions in the for New York on a lecturing tour of Fund now totals £70,300. The early in the new year-Router,

Netherlands East Indies.

the United States Reutered

Mr. Cordell Hull, Secretary of State, informed pressmen to-day that the official report of the United States Naval Board's enquiry into the Panay Incident had been received, but it raised no new major controversin! points.

Hull added that the Japanese

Government had indicated it was attention. riving the Incident daily but there was still no definite in- formation when the reply might be expected.

Mr. Hull stated that he had not discussed with President Roosevelt or the Naval Department the advis- ability of advancing to February the annual Paelßc manoeuvres which were now scheduled for March 14.- Reuter.

REPORTS TO BE PU. LISHED

Washington, Dec. 23. Mr. Cordell Hull announced to-day that he had received complete reports of the Panay affair on the basis of which it was decided to make addi-

·tional-

representations to Japan through Mr. J. C. Grew, the United States Ambassador, as the nature of the evidence supported previous de- mands.

Included ore the reports of Captain Bughes. Mr. Atcheson of the United States Embassy, and the Andings of the Naval Court of Inquiry, all of which will be published very shortly. Senator Borah in an interview, warned against the psychology of war, but said: "We have a right, and it is our duty, to protect Ameri

and legitimate United Stutes interests in China,

cans

He did not think Amerien should et out of China or leave the Fast, helther did he think that if they falled to do so they would go to war with Japan.-United Press.

New Planes Ordered

New York, Dec. 23. The Glenn Martin Co., has received a contruct from the Navy Department for the construction of 21 nerontones at-n cost of $5,300,000.-Reuter.

STOP PRESS

مجھے

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