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The
FIRST EDITION
Supreme Court
Hongkong Telegraph.
FOUNDED) 1801
No, 15404
五拜禮 號一卅月二十英港香 FRIDAY, DECEMBER 31, 1937.
SINGLE COPY 10 CENTS $30.00 PER ANNUM
Fit
DUNLOP
190
JAPAN OFFERS CHINA NEW PEACE TERMS
PERTURBED BY
RESISTANCE ENCOUNTERED
Germany Again Acts
As Mediator
Moscow, Dec. 30.
Cold British Reaction To Japan's Apology
*
More Hankow NOBLE MAY Refugees On Way To H.K.
Third International Train Departs
Hankow, Dec. 31. Over 180 noisy and mischievous achuo) children consideraluge benchtoa. ot the departure for Hönn og m the third international rerogee than
children of m Hankow. Risking ane Krug left at 9am. yesterday.
1:
Lost
Hankow despatches made public in Moscow to-day wich med 313 men, women and reveal that Germany a few days ago offered to China' a six-point Japanese peace offer, the terms being as follow: 1.-Economic agreement giving Japan participation in national resources, customs, foreign trade, aviation and other transport and communications;
2. Chinese adherence to a pact against Communism directed against Japan and Manchukuo;
3.-Permanent Japanese garrisons in China;' 4.-Demilitarised zones in regions specified by Japan; 5.--An independent Inner Mongolian Government; 6. Chinese payment of war indemnities.
The despatches add that Italy is
somewhat annoyed
inediation efforts.
by
Germany's
It is alleged that public opinion in Japan is disturbed at the Chinese re- sistance, as a result of which effort in under way to stir up anti- Russian opinion, centred on the re ported despatch of Russian war sup- plies to China.
However, it is said that Russian aid to Chinn is "significant" com- pared with that of Britain, France and America, and even the Indian and German cupplies, and, it is argued that due to this anxiety, Japan has given promission for mediation 15
terms which outlined in the
Dr. Oscar Trautmann has presented
United Press.
Egypt's New Premier Is Strong Man
Caira, Dec. 30. Mahmoud Pasha's first act as Premier of Egypt has been to disarm, and to disband, at "coloured shirt"; bodies. Orders to this effect are al present being carried out throughout Erypt.
3
Last Defiant
Gesture Of
Old Patriot
The Gain christened "The Train From Madrid" and was only decorated with enorinflu Američati. French and German Bags on the mots of the contites.
The Japaneses authorities were ad- vised of the date of the departure well within the specified request of 48 hours
For two hours before the departure the station was the scene of activity as leading memmers of foreign communenty worked mur side with office boys carrying and bundles of bedding and pamant them in the train.
At 9 o'clock sharp the gone tunnel- ed and after blowing as wh.. He, the train slowly steamed station.--Reuter,
out
POWERFUL HANKOW ·.
Mr. Chang Yi-hsin, veteran educa-DEFENCES
donist.of Shochow, is
Into
Hankow. Dec. 31.
reported have committed suicide by jumping
well after the a
Japanese force authorities had attempted to hit to become Mayor of Soughtow.
Mr. Chang won fame for his sug gestion to Marshal Chiang Kai-shek Mr. Chang proposed to -that-he-form unfold-manki regiment,”!
Jend United Press.
BLOW TO JAPANESE FISHING
President Seeks To Keep Boats Out Of U.S. Waters
Washington, Dee. 30.
Making The City Impregnable
COMMAND WAR NAVY
New Admiral For China Station
BUT SATISFACTION EXPRESSED AT GUARANTEES GIVEN
Secret Plans Of Versions Of Wuhu Attacks
Admiralty
VICE-ADMIAL SIR PERCY
NOBLE
In sweeping changes which) have recently been made in the administration of Britain's war service, a future Commander-in-
Chief of the China Station may
play an important role.
The British Government, it is, believed, has already chosen the
man who will command the!
Hard Fighting Royal Navy at sen in the event
In North
the
Shanghai, Dec. 31. Por purpose of making the approaches to tankow impregnable, it is understood Marshal Chiang Kai-chok has ordered the construc- tion of 800 steel-cased
concrete block-houses which, is reported,
of war.
His identity is a secret. But the Naval Correspondent of the London Daily Express believes that Vice- Admiral Sir Percy Lockbart Harnam! Noble, who will relieve Adiniral Sir Charles Little as Commander-in- Chief of the China Squadron early
The
yeur, is the man who has been)
new Commander-in-Chief of)
i will be equipped with anti-aircraft; The China Squadron is fifty-seven! guns, heavy machine-guns and trench Mars old. He is still comparatively
Each block-house W:H acrom medate 8 meg.-Reuter.
Incendiary Bombs
L
junior, which enables him to receive) intensive training for the importantį task said to have been assigned to him.
Differ Considerably.
London, Dec. 30.
Pending the return of Mr. Anthony Eden, the Foreign Secretary, this afternoon, it is not certain whether the Japanese reply to the British note concerning the shelling of the British warships at Wuhu is considered acceptable.
Certain points in the reply are considered to be couched vaguely.
JAPANESE HALTED IN SHANSI
INVADERS DRIVEN OFF AT HOSHUN
Linfen, Dec. 31. Following an ubortive invasion against Hashtun and Lluohsien by the Japanese troops, qulet once more revalls in vantern Shonsi und for twenty miles north of Hoshun the place is cleared of invaders.
Military authorities believe that the during the last few days were manoeuvres calculated to test the strength of the Chinese ever, are fully prepared to cope with defence. The Chinese troops, how-
Japanese movements. any emergency which may arise from
Japanese activities
The same authorities confirm that Japanese reinforcements huve been arriving in several cities in northern Shamsi. Including Tatung and Chi- chow. The Japanese garrison at Tal- 16,000 men.--Central Newa.
been
Present indications are that the Foreign Office has now. increased acknowledgment will be cold, though courteous in tone.
It is known that the British Ambassador to Tokyo, Sir Robert Craigie, has already objected to the military report of the incidents on which the Japanese Govern- ment appears to rely. Exception is taken to the
| assumption that foreign warships and merchant vessels
had no right in the vicinity of the fighting.
Teruel
Battle
Continues With
Heavy Losses
"Tadrid," Dec. 30," There has been little change in the aliuation around Teruel dur- ing the last 21 hours, though feree fighting is in progress.
Reports indicate that the In surgents are still holding out in some sections of the town, while both the Government and the Insurgents claim to have,inflicted heavy losses on the enemy. Renter.
SILVER
The spokeanon for the Chinese Admiralty and Government of the MARKET
#huge future inportance of the China!
particularly of Hong-
If the presumption of the Daily Express Naval Correspondent is cor- The new Premier declares that he
Hankow, Dec. 30, rect added recognition by the intends to act constitutionally and to
Army ated to-day that adopt a concillatory altitude towards his opponents. He guarantees a good, Well-informet quarters state that quantity of mendiary bombs were Squadron,
requested dropped on Taan by Japanese put these been a new war in administration and to render justice:sident Roosevelt has
and Singapore, seems indicated. SAVED Bill passage of M
to feet the two days ago, which resulted in a big grachtal climunstion of Japanese and
which fire- His Cabinet will generally represent alien fishing beats fan American. hours, doing sering for the past 48 About 1925 the successor to Jellieen!
all round.
all parties in Egypt except the Wafd, waters, which will be introduced to -Reuter
special session of Congress by Mr.
STOCK EXCHANGE
CHEERFUL
London, Dec. 30. factors combined
. G. Copeland, Chairman of the Senate Commerce Committee,
! Renter.
to
Several impart a more cheerful undertone to
operated.--
J
After
has
damage.
Chinese Success
20 as
"1
"Bears" Beaten By U.S. Move
FISHING BOAT
SEIZED
lo
Los Angeles, Dec. 30. Federal agents seized a Japanese Ashing boat to-clay.
יי
It was anchored In Los Angeles
The owner is said to be an allen named S. Nakawa,-United Press.
The British acknowledgment of the reply may point out that the Bri-harbour. tish Government prefers to rely on its jowa report.-Router.
OFFICIALS satisfied
London, Dec. 30. Mr. Anthony Eden returned to London from Yorkshire, where he spent Christinas, to-day, and he hopes "to ̄leave London next week for a few days' holiday in the south of France. when he will attend the opening of the League Council at Geneva on January 17.
Mr. Neville Chamberlain, the Prime Minister. will be in charge of the Foreign Oflce during Mr. Eden's absence.
It is learned. in offcial circles that the British Government notes with satisfaction that 1}} Japanese apologies and other settlements with regard to the Wuhu incidents cover attacks on the merchantmen as well as the warships.
Whilst the British version of the) Wuhu incidents differs from that of
the
STOP PRESS
CLEARING BRITAIN'S
SLUMS
London, Dec. 30. Japanese, the British Government of Labour show good progress is be
The returns issued by the Minister appreciates that measures are to being made in the final stages of the taken by the Japanese Government
ended
with regard to the punishment of the Government's great slum clearance ofleers responsible, and is glad that September 30 Bust 50,438 During the year campaign. in the Note Jull guarantees are offered against the possibility future attacks, Reuter.
Italy Offers Olive Branch To Rumania
houses were demolisher or closed compated of during the previous 12
with st inontlis.
To same date 103,274 houses, with accommodation for 764.660 persone, have been provided for the purpose of rehousing persous displaced by Istum
clearance operations. The returns also record that 3,484,132.new England houses have been built in and Wales since November 1018.-- British Wireless,
EQUALISATION FUND
would have been an admiral who
work good
in minor plans bombed Sian and hurt yesterday.
commands is the Great War," says ihe occupation of Thanan, the Express writer, as their immediate objective. They The State Department is also re-
is now on the retired list and left only one division of troops in in the last ten years the Admiralty ported to be backing the measure which will stipulate flat Bshing boats: Tsinan city but three trainloads are has three times marked out a possible. execeding five tons must
be on their way from Tiențšiu.
new Commander-in-Chief for the
London, Dec. 30. American-owned,
The Chinese have destroyed them
of war. railway bridges at Chichshou, ten,
of them has been given thau's statement that the understand- ......! Interpreting Mr. Henry Morgen- kilometres north of Taian.
Opportunities. for
command of
Ing with China relating to the pur different squadrons and fleets to obtain all the training possible. chase of silver and the sale of gold |
Itome, Dec. 30. A string declaration of friendship
IS SOUND oldest of the three has now will continue until January 7, as in
Bumanin, nge at which it is dicating that there is now no possi- towards
following the
London, Dec. 30. The Treasury has issued the fol- meat with Fascist sympathies, is lowing statement: "On June 28, 1937 information bureau.
atnic- cellor of the Exchequer mado a The declaration says that respon-ment as to the holdings of the Ex- sible Italian circles think the new change Equalisation Account at the Rumanian situatian is Indicative of end of March 1937, and undertook the profound transformation which is that the Treasury would publish off- taking place in the whole basin. Reuter's Special
Danube cially a similar statement every six
months.
the London Stock Exchange to-day EXTENDING ITALIAN-
but business continued to be small, with end of account Influences erasing some irregularity.
חוז
Home Rails were particularly firm
the excellent holiday traflic receipts, Commodities and rorDa were firm on Continental buying and covering, but jute eased sharply in sympathy with Calcutta. Colton and rubber rallied slightly. New York opened firm.-Reuter's Sprctal.
JAPAN NOT SATISFIED
of the
new
JAPANESE TRADE
AGREEMENT
Rome, Dec. 30, A supplementary trade agreement between Italy and Japan was signed
Central Newa says Chinese troops The
reached the grecaptured Fuyang, near Hongchow.ractically certain that he would not Bility of Chinese stocks in London formation of a Rumanian Govern- | ye derday. The Military spokesman be considered equal to the strain of being ung on the market, silver published by the Italian diplomalle in the House of Commons the Chan-
war.
also announces that Weibslen. In eastern Shantung, is still in Chinese
"bears" rushed to cover to-day. hands Japanese troops
PROBABLE CHOICE are trying to outflanks the Chinese positions at
Sellers were very reserved and the "The two others are still active "bears" were forced to pay up to Talan by crossing the Yellow River but it is the younger of them (Vice- 10d. though business was only at Tungeh, above Tsinan. But fur they have not succeeded.
so Admiral Noble) on whom the cholce small. Later the market quietenext
would probably fall.
[down, closing with buyers at 191. The Chinese are trying to, cut the by Count Clano and the Japanese Japanese columns
"The naval system of selection for Ambassador this morning. It ex-Lake, in Kiangsu, und have been sue-notice of the officer's position in the buyers, it is interesting to note that
of Taihu important commands takes
Though India has been biggest little tends the existing Halo-Japanese cerful to a certain extent United seniority list."
American "bears" have been particu- trade facilities to Italian East Africa, Press. where, it is understood, Japan will
Vice-Admiral Noble is expected to larly keen to cover their commit- relleye Admiral Sir Charles Little ments. trade on a basis of strict reciprocity
to the extent of 10,000,000. lire un-i numily.
Jupan will buy East African saltj and probably also raw cotton'in ex- change for textile goods,—Renter's
west
[NEW GOVERNMENT
Peiping. Dec. 31.
STARTS WORK
6
In Hongkong In April. He will be
It is pointed out that China will 68 in January and has just relin-now have plenty of time in which to quished the post of Fourth Sea Lord. quidate any stocks remaining with- During the Great War
was he
In her boundaries, commander of he cruiser Achilles
The market is somewhat mystified and Courageous.
After the Home and Mediteranesin regarding the extension of the Ameri- Fleets, the Ching Station is the most can understanding with Mexico and
the Four sub-departments of the Pro-Important of
British naval Con
Conuda until January 31. Some visionat Government of the Republic commands afloat, and includes some suggest the understanding has not of China have been started.
75 units of all types, among them been renewed till later as President The Foreign Affairs ofce is headed being the 5th Cruler Squadron, 8th Roosevelt intends to use it ne by Yong Shino-tsang, Communica- Destroyer Flotilla, 18 gunboats nor-bargaining weapon. Others are of Berlin, Dec. 30, Lions are controlled by Hsu Halu-chih, mally stationed in the Yangise and the opinion that the United States A German-Siamese friendship and commerce has been Secretariat
trenly of Industry by Yu Chin-20 and the West Rivers, 4th Bubmarino Flotilla, Government is temporising pending
by Chu concluded at Bangkok-Reuter,
Shu-yuan and the 2nd Minesweeping Flotilla President Roosevelt's stalenient-a United Press.
Reuter. at Singapore.
Tokyo, Dec. 31. The Foreign Ofee has stated that Special. due to the Soviels' dilatoriness in pre- venting the signing
flaheries treaty before the end of the year, Japan was compelled to agree to the protocol signed in Moscow on December 20, extending the old pro- visions for a year.
In the meantime an endeavotte will be made to conclude a new tresty United Press.
GERMAN-SIAMESE TREATY
a
STRIKERS WIN DEMANDS
THEN RETURN TO WORK IN PARIS
Parla, Dec. 30. The Government has agreed to thei Paris strikers' demands, according to communique issued by the Workers' Unions in the Paris region and the General Union of Pubile Services,
The strikers returned to work this morning and the municipal services are now functioning, az
Again-Router.
the
In pursuance of this undertaking Treasury announces -that |September 30, 1037 gold held in the
account was 30,084,000 Ano
ounces, and that held in the issus department of the Bank of England was 70,843,- 000 fine ounces. The total amount was 110,697,000 fine ounces which at £7 an ounce would representin round fitures £815,000,000. At the same date the Account did not hold more than a trißing amount of foreign currency-British" Wireless.
(Further Stop Press News on Page 12.)