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Court

Hongkong Telegraph.

FOUNDED 1831

Nu. 13403

四拜禮·號十三月二十英港香 THURSDAY, DECEMBER

30, 1937. BÄTЯHINGLE COPY 10 CENTS

$30.00 PER ANNUM

25%

off

Aftor Xmas Raduction

WHITEAWAY'S

BUDGET MUST NOT HINDER U.S. ARMING

ROOSEVELT'S Chinese Forces Claim Kwangteh Recaptured

ORDERS ARE JAPANESE

FOR SPEED

WAR DEPARTMENT AND NAVY TO DISREGARD QUESTIONS OF COST

WARSHIPS

ACTIVE

Apparently Based On Lintin Island

Landing Party Meets Portugal's Wongcam Police

Washington, Dec. 29. Enquiries at the Navy and War Departments to-day revealed that President Roosevelt had ordered them to press rearmament plans with all possible speed regardless of budget-balancing and other domestic political require-warships being moved up from

ments.

It is revealed that the President is expected to ask Congress to appropriate well over one billion dollars for national defence in the next fiscal year.

The Navy supply bill is expected to be about G$580,000,000 in addition to special appropriations such as extra warship construction for which President Roosevelt may ask. The Army supply bill will probably be G$415,000,000 and in ..addition to both bills it is anticipated there will be several

deficiency supply bills.

It is believed that the extra ships| President Roosevelt is considering | include two or more cruisers and at; leant one aircraft carrler.--United Press.

$15,000,000 NAVAL DEPOT

nu-i

Washington, Dec. 29. Mr. Charles Edison, of the N.R.A.,; has recommended Congress to thorise the construction of a $15,000,- 000 naval supply denot at Oakland, California,

le announced

that the olierna-¦

tive site for the depot at India Basin.! San Francisco_was_unsatisfactory. ----United Press,

IMPREGNABLE OUTPOST

San Diego, Dec. 20.

Hurrying plans to convert the

Pearl Harbour base In the Huwatian!

10 about mid-

TWO-POWER STANDARD FOR NAVY ENVISAGED

American Experts-

Show Concern

Washington. Dee. 29. High naval authorities, though

(Speelal to "Telegraphi")

Macao. Dec. 30. Greater netivity has been noticed in the Canton River,

the Ladrone Islands to Lintin

stand, and seaplanes have been observed all through the day! lying up river or back to the base in the Ladrones.

The Japanese marines who landed

neanwhile, seem to be at a loss to

RELIEFS FOR FAR EAST

Sometimes Jack's a passenger. These

at Wongcant Island on December 26, bluejackets were on their way to a on what to do, for having met the trooper at Southamton and salled the recently for the Far East where they Portuguese police stationed in Istand they appear to

realise that will replace time expired or invalided there must have been sume mis men. understanding of their

instructions. Instead of the activity of yesterday, when they took steps to put the vil

age huts at Haimoon Bay in order for occupation and carried quantities of supplies usitore, they have done little to set up permanent quarters in the island to-day.

At the same time the Japanese vessels that stood very close in shore I have now proceeded much farther out into the broadway, taking with them quantities of materials and pro- visions from the village people.

One explication of the

apparent indecision of the Japanese to

to take further steps to make themselves comfortable in Wongeam Island 좋았다 their discomflture it their Portuguese police. They

ADMIRAL INSPECTS NAVY MEN

Marines, Bluejackets

March At. Valley

COUNTER DRIVE

BRINGS ARMIES NEAR HANGCHOW

Exodus From Tsingtao Continues As Cable

Heads Blown

Blown Up

CANTON BOMBED AGAIN

Governor Laughs In Dug-Out Damage Not Yet Known

Canton, Dec. 30. Mr. Granham Barrow, Reuter correspondent, was interviewing Governor Wu Toh-chen this morning when the air rafd ́sirens sounded in Canton, followed 'a few minutes later by the thud of bombs and the splutter of machine-guns. The bombs were upparently directed on the near- by Provincial Government hend- quarters.

Hankow, Dec. 30. According to well-informed Chinese quarters, quoted by Central News, the counter-offensive which is developing inland from Hangchow Bay has over-run Kwangeh. The city is now in the hands of the Chinese, constructed reinfored concrete dug- it is stated.-United Press.

CHINESE RECAPTURE FUYANG

Kinhwa, Dec. 30.

Fuyang, important town 25 kilometres south of Hangchow on the Chientang River, was recaptured by Chinese troops at 9 o'clock last night. The Chinese success was the result of a bitter counter-offensive by two columns from Tunglu and -Hsinteng, 70 and 50 kilometres respectively from Hangchow,

Hotly in pursuit of the retreating Japanese invaders, the advancing Chinese troops have now reached Chuantang, within eight miles of Hangehow.Central News.

Alarms In Tsingtao

Tsingtao, Dec. 30. Tsingtao was 'rocked by a series of explosions in the early hours of Despite a considerable thinning of

yesterday morning as the Chinese meeting numbers as compared with previous

blew up the cable heads connecting ap years, this morning's annual inspec~

Tsingtao with Shanghai, Chiefoo and parently awaiting instructions from tlun and march past of naval landing

Susebo. The telegraph and wireless partier was as-smart-and-impressive"öfices were also destroyed. [higher authorities.

is as ever.

!on.

are

be

The fact that the whole island known

will to be malarious against any attempt to use it as hospital depot, if that was the Inten- It is reported that a large number group into an impregnable outpost, not speaking officially, indicated of villagers from

the island have the U.S. Navy has advanced the date to-day, that the United States sought refuge

on the Portuguese of the scheduled Dight of twelve may be forced to adopt a "two-island of Colowan, applying to the patrol bombers

power" naval standard in order Portuguese authorities for shelter and January."

help-Our Own Correspondent. It is also hinted that the fight may adequately to protect any por- Involve eighteen machines.

tion of the western world from) Navy officers stress that he official aggression at the hands of date has been set and refused to either Europe or Asia. discuss whether the advance date, was a result of the development in A two-power standard feet would the Far East. They indicated that be able to defend its responsibilities the suggestion of sending additional against the navies planes to Hawaii might be due to a power and desire to supply the Hawaiian squco-ordinated. drons with spare planes as capidly Great Britain has for long as they are constructed.

"The flight of 18 big bombers would polley of supporting a ne be the largest in naval history andle of engaging a combination of the would involve a personnel of at least strongest European fleets, 120.- United Press.

SPEEDIER US, ARMAMENT APPLAUDED

of one Asiatic one European, whose operations might theoretically be

recalled

is

that! maintained fleety- |

Disclosures of attention being paid this problem was made simultaneous- ly with the revelation that President Roosevelt may ask Congress for an extraordinary naval construction pro- grainme.

SPAIN'S BLOODIEST BATTLE

Now Being Fought Outside Of

Teruel

Vice-Admiral L. E. Crabbe, acting Commander-in-Chief of the China Station during the indisposition of Admiral Sir Charles Little, took the salute and inspected the four hundred seamen and marines. His Excellency the G. O, C., Major General A. W. Bartholomew and Commodore E. D. C. Dicken stood by Admiral Crabbe's side as he took the salute.

Mrs, Bartholomew and Mrs. Dicken

were present, as were also Flag Capt. J. C. Lench (H.M.S. Cumber land). Capt. C. B. Barry, D.S. O. (II.M.S. Medway), Capt. A. E. M. B.

nger, D.S.C.

Cunninghame Graha (H.M.S. Tar- 7. Capt. C. Copping Moody

Capetown), Capt. (H.M.S. Engle), Brigadier B.

A. Thomson, Col, N. M. S. Irwin, Major

C. A. Power,

ver, R.M., Captains and officers of the French sloop Dumont d'Urville and the Portuguese war- ship Goncalo Celko,

Meanwhile the Bight of residents for safety has been, intensifled with the steady advance of the Japanese forces along the Tsingtao-Tsinon railway.

Hung-lich Mayor Shen Issued n proclamation urging the in- habitants to evacuate 115 soun ឆ possible in order to avoid "unneces- sary sacrifices."

Much excitement has been caused here by the news that a Japanese destroyer and transport have been sighted off Tsingtao.

steamers left

Four B. and S. yesterday all crowded with refugees, including many foreigners.

Judgments

In Severn Leigh Case

Papers For Appeal To Privy Council

Not Yet Filed

the

Government officials hustened in orderly manner Into the well- puts and Governor. Wu Tch-chen continued his interview 40 feet below Around, laughing and cracking jokes, and complaining that the Japanese planes were delaying his tlinn party

Eight out of the twelve planes circling overhead were easily visible from an opening in the dug-outs.

This is the first time since the dis- astrous Hon bombing. a few weeks ago, that the Japanese Invaders have taken this route. Usually they confine their activities to the two railways.

WVhampoa, Fatshan and other points nearby were subjected to the most severe visitation for several weeks. Thirty planes were sighted, necording to a telephone call to the Governor from outlying districts.

Down in the dug-outs. It Was dificult

ascertain what was actually happening, but anti-oitcraft guns and others were silent after live -minutes-

to

FIRES STARTED

A local message stated that three fres were started in the vicinity of Salchuen, which lies few micB north-west of Shaineen.

The Governor later left the dug- out, which holds about 300, and mony Chinese women were sitting there Written judgments of

Chief quietly awaiting the "all-cicar." The Justice, Sir Atholl MacGregor, and general murale was splendid. Mr. Justice J. A. Fraser concerning Governor Wu between 15

According 10 reports reaching the appeal brought by Capt. Albert bambs were dropped in north-west und 20 Edward Ford, master of the 5. Canton, Damage and loss of life at Severn Leigh, which they verbally dismissed on November 12 when I present is not known. was first heard, were inade public heard at 12.45 p.m., but apparently The sound of bombs was ogain to-day,

It Was some distance The appeal was in connection with Reuter. Reap Rich Harvest

the alleged attempt of a number of Tringtuo sampan owners renped a the crew to impede, the progress of rich harvest as the only means by the vessel to which to reach the steamers which demanding war-zone money or to be Japanese ports by were anchored in the bay, was by paid off, and against the decision of the Hon, Comdr. J. B. Newill, Acting

Muster, in

sampans.

Many foreign firms are now pre-Harbour the

Capt. H. Hickling, R.N., was in command of the parade and Royal Marines company was com- manded by Capt. R. M. Giddy, R.M. The G.O.C. arrived shortly before While the siege of Teruel st 10 aan, and saluted the parude which

Saragosso. Dec. 29.

volunteer corps to maintain peace" of the crew in question and order in the event of the dis-gine

charge. paring to evacuate their Chinese guilty on that chariot finding them staffs. The question of organising a

Hollingworth, second En- IL. Steinman, a German; and London, Dec, 20.

Power. D. Crowden, E. ruption of Chinese authority is being M. Welcoming President Roosevelt's The Navy League's President 10- grimly continues, the two ormica was drawn up to alténtlon. A few

seriously considered by foreign resi- F.

Macdonald, R. Initiation of speedier naval re-arma- day drew attention to the fact that shed in battle on a 40 kilometre minules later Admiral Crabbe drove

dents here. The volunteers would be Redmond, E. Burgess, R. Lambert, ment, the influential Washington Star the Atlantic seaboard had been vir- front outside of the city, comparable on to the ground and walked to the

armed only with batons.

| Stanley Eames, Willam Matthews, F says the nation will interpret the tually undetended for the past five with some of the biggest engagements aaluting base facing the long line of

of the World War.

at Davies and E. Todd (British_deck- move as a reply to the "Intolerable years due to the necessity of concen-

Severe fighting is going on seamen und marines. The general

E. O. Ganton, James, Bassey, hands); Both sides were using every kind salute was given as the Union Jack affront regarding the Panay affair, trating the full fleet in the Pacific of fighting power, including hundreds was unfurled.

Welhsien, an important railway town between Taingtao and Tsinantu. James Isiah, J. Chiku, Dixon Jamess,

Joseph Davies and adds: "The United States thus as a result of Asiatic hostilities and of tanks, artillery, planes of every

John Todd Davica,

institutes its own' guarantees for

but despite vigorous Japanese attacks description and numbers of machine- Japan's good behaviour. It is exactly

the city is still sald to be in Chinese John Stephens, and Coxon Ayama guns and automatic rifles of the the kind of moral suasion that a

latest types,

Mr. 11. Sheldon, K.C., Instructed force-worshipping nation and like-

by Mr. R.M.M. King, of Messrs. minded people west of Suez, under-

and Stokes

Master, stand

presented

and

Representative Edward T. Taylor, Chairman

of the Appropriations

(Continued on Page 4.)

Seven Die

Board, to whom President Roosevel In Mountain

that

letter was addressed, "decinted: "We want peace, but we must be pared to lick hell out of them if they tramp on our toes." He added he was sure Congress would approve. Opposition to the re-armament programme is announced by Senators Borah, Wheeler and Johnson, and niro by peace societies. Thus the pro- posals are likely to get a mixed re- ception in Congress next week. Reutor.

DIFFERENT VIEWS

Plane Crash

Goodwill Flight Ends Tragically

INSPECTS RANKS Accompanied by Capt. Hickling and his staff, Admiral Crabbe then The Insurgent General commanding | inspected the men walking along the the column is quoted as saying that from

front line and then the

e rear line, the batile can develop into a decisive also inspecting the bands of H.M.S. one for the whole

H.M.S. Cumberland, which Eagle Lieut-Colonel of the General Start, were included in the parade. who was Milltary Attache in a Eur- The landing parties then marched opean Embassy during the World past the saluting base in very smart War sald: "We have not witnessed formation, the bands playing appro a battle like this."

printe marches while Admiral Crabbe took the salute,

war.

while

The Insurgents objective is # reflet of Teruel.-United Press.

NO NEW YEAR'S DAY ISSUE

Cali, Colombia, Dec. 20. Three Cuban goodwill planes were There will be no issue of the Hong- caught

in A storm, collided and kong Telegraph on New Year's Day crashed in flames in the mountains (Saturday), Week-end features of- Washington, Dec. 29. twelve miles west of Cali to-day. dinarily published on Saturday will While the Senate' so-called Six Cuban army officers wore kill-be included in to-morrow's issue. Economy Group and Neutrality Grouped as well as one newspaperman. A The pictorial supplement will include are joining the opposition to Pre fourth plane, piloted by a Dominican several photographs of Christmas sident Roosevelt's proposed armament army officer, landed at Paitilla, festivities in Hongkong, while there scheme, Senator Wheeler came to the Panama.

will be the usual competition for front to advocate an alternative ex- The planes werd touring Latin children. penditure on irrigation, reclamation capitals on behalf of the proposed The Telegraph takes this oppor- and food control.. "The danger of

Columbus Memorial Lighthours, tunity to wish its renders a happy Bang (Continued on Page 4.)

United Press.

New Your.

The landing parties comprised, in ordor, men of 1.M.S. Cumberland, ILM.S. Adventure, HMS. Eagle, HI,MS, Lowestoft, II.M.S., Falmouth, H.M.S. Westcott, ÍL.M.S. Medway and. the 4th Submarine Flotilla, the 8th Destroyer Flotilla and Royal Marines.

DISASTROUS 'QUAKE

Lima Dec. 30. Twenty-five were killed and over 100 Injured in an earthquake at Oxepams, In the province of Piura, in which goveral villages, were ples- troyed---Reuter,

hands.

Japanese aircraft subjected Talan,

away...

STOP PRESS

MAY SEIZE VESSELS

TC-

Washington, Dec. 20. The Treasury Department announc cd to-day that

(LS BOOK

the

of

08

25 miles south of Tainan lo a severe Johnsonant. Ford, and during thel Commerce Department Bureau.

of General Han hearts appeared in

nir attack yesterday. Talan became the headquarters Fu-chu on the fall of Tsinan Reuter.

violation

of federal

A message from Mexico City states

of the appeal several of the Navigation approved, the Customs in Los Angeles were prepared to seize Since the verbal announcement five fishing boats. It is said they Chinese Counter-Attack

dianalising the motion, an applica have been operated by Japanese. tion for leave to appeal to the Privy allegedly In Hauchow, Dec. 30. Council has been mode and granted, registration-United Frets. The Chinese forces at Peimashan, but the papers for it, it was learned, (White Horse Hill) south of Tsinan, have not yet been sent pending the have recovered several kilometres on written judgments of their Lordships, a result of a counter-offensive. The which are given below. Chinese batterics

Chienfuahan on (Thousand Buddha Hill) in the suburbs of Tainan are intermittently shelling the Japanese troops inside the city, according to military advices received here.

CHIEF JUSTICE'S JUDGMENT The judgment of the Chief Justico was as follows:

The Brittel vessel Severn Leigh, on time charter to the Mitsui Bussari The right and left Chinese wings | Kalaha Ltd., a Japanese

company. are still holding Tzechwan on the renched Hongkong" on September 1. Poshan-Changlien branch line of the Here she discharged a cargo of coal, Klarial Rallway and Changtaing on and the master Intended to sail in the south bank of the Yellow River, † ballast to Hongay via the Hainan about 37 kilometres southwest of Straits, at which port she proposed Tsinan, the reports reveal.

to load anthracite for Keelung, Miiki, About one division of Japanese Wakamotau and Tokoyama. troops, equipped with over 20 ́tanks, On September 7 the master re-

(Continued on Page 4)

(Continued on Page 45)

that all activities of Japanese fishing vessels in Mexican waters are per- fectly legal and are covered by concessions or contracts,

(Further Stop Press Newa on

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