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Hongkong Telegraph.

No. 10410

FOUNDED 1881 六拜禮 號八月正英港香

SATURDAY,

JANUARY

· 1938.

日七初月二十

SINGLE COPY 10 CENTS

$30.00 PER ANNUM

chuck

VALUES

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GREAT in '38 See Pages 3 & 5' WHITEAWAY'S

1

DESPERATE FIGHT TO HOLD HSUCHOW

CHINESE FACING *ATTACKS FROM TWO DIRECTIONS

Japanese Armies Attempt Pincer Movement From North and South

Hankow, Jan. 8.

area

The military situation in China to-day shows desperate Chinese efforts to defend the Hsuchow against Japanese attacks from both the north and south. Along the Tientsin-Pukow railway line in the Shantung province, Japanese troops have advanced as far as Yenchow and Tsining, while the main Chinese forces are now concentrated at Lincheng, which is inside Shan- tung's southern border.

South of Hsuchow, Japanese troops have advanced as far as Mingkwang on the Tientsin-Pukow railway, Hofei, on the Huainan railway in Central Anhwei, fell on January 4.

The Sao Taup Pao, tht

Chinese

riny organ, says that big numbers

of Chinese troops are concentrated

at the Hsuchow and Chengchow see-

2

a of the Langhai raway. Their

gth is great enough to repulse

the attacks from any direction. The same paper believes that Japanese cops from Shantang are atteking thward on three routes; one is the Tientsin-Hankow railway the to suchow, . Yenchan

Kweiteh Tsining 10 second from from Taming to Kaifeng. The second and third routes are designed to ex- "Pedite"Ulic"capture of Hsuchow

HAICHOW DESTRUCTION Japanese troops already in Hofei ure expected to penetrate westward along the surfaced highway to cut the Peiping Hankow railway at Rsunin und so lo expedite the capture of Chengchow.

In the meantime Central News re- ports that the Chinese authorities have already destroyed new construc- tions ut falchow, the eastern ter- inlous of the Lunghai rallway, and that the new Lienyun harbour, con- structed on modern lines, as it was originally hoperi it would replace! Shanghai for international trade in the Far East, has been completely demolished. The destruction at Hai- chow is interpreted as being for the same reason as the destruction carried! out at Tsingtao, since Halchow's military importance dissipated after loss of Shanghal, Nanking and

both in

nese guerilla uniis Shantung, Hopel and Anhwei are said to be very active among the Japanese troops which chiefly control a 20-mile belt along the railway lines in these provinces.-United Press.

ENORMOUS FIGHTING FRONT

Shanghai, Jan. 0.

The Japanese armies in China ure

e enormously extended, necording

C. I. O. Leader Speaks Out For

Communism

New York, Jan. 7.

Mr. John L. Lewis, of the CLO., said to-day that perhaps -It-was- time-something-clse_was

irled Lo replace the business

present

and Government

management systems.

He intimated that Communism was the solution, adding: "Demo- cracy is on trial. I canuel say what may happen, but I know some people have toand they could live happily and success- fully In conununal, form in which the whole, and not a few,

given were

consideration."—

n

United Press.

SUETSUGU

DID NOT SPEAK FOR CABINET

Japanese Spokesman Tries To Modify Interview's Effect

unalified observers, who point out A Foreign

Tokyo, Jan. 8. Ofice spokesman.

Air Raiders At Nanchang

Hankow, Jan. 8.

Alore than twenty Japanese aircraft yesterday participated in a bomblug rat on Nanchang.

A 11.30 a.m. ey came over the elty and concentrated on the aqrodrome, but according to a

Chinese oMelal report they

succeeded in doing no damage, --Renter

Giant Panda Expected In Colony To-day

Mrs. W. H. Harkness Flying Here With Odd Companion

Mr W 11 Harkness, who took a

gat China, h

de to tine United States from

China a year, and came again to spent the list awo months west of Weingu in order to get a

make pads to be the husband of the female she obtained a year ago.

However Mr. Harkness failed to get a male specimen. Instead she secured a two months old female, RA Iow which she brought to Hankow

Friends have proposed

days ad

at the name the new one Meimer,"

which in Char means "younger

["

Mr. Harkness and "Meimet" are leaving for Hongkong at 8 am fo

to the day by aurupline, en route United States. Mrs. Harkness will present "Memol" to the saine zoo to which she gave the pandis

caught last year United Press.

STOP PRESS

AIR RAID

ALARM

OBSTACLE IN JAPAN'S PATH

Requested To Leave Kwangtung

But Official Denies

Italian Priest Under Suspicion

Cunton, Jan. 8. The Canton Gazette to-day pub-i shes a small paragraph stating that, under suspicion of carrying on! "dangerous netivilles," Bn Italian priest at Shiukwan has been re- quested by the provincial authorities to leave Kwangtung.

The Italian Consul in Canton has Informed Rentor that this matter is many weeks old and that the priest was advised to depart slanger_from_ait_raids in his Jocolity. and not on acvotint of any subversive nelivities. Router.

because of

Chinese troops retreating before the Japanese in North China wrecked this railway bridge, near Hsinio Station on the Peiping-Hankow railway, to impeile the advance of the invaders. Here, Japanese soldiers go about the task of shoring up the bridge, preparatory to moving the wrecked locomotive.

LOOP-HOLE IN LAW? DANGEROUS DRUGS. STILL OBTAINABLE

TRADE TREATY ASSURED.

CORDELL HULL DECLARES

Washington, Jan. 7.

Mr. Cordeli Hull, Secretary of State, has issued a formal notice of intention to negotiate an Anglo-American trade agree-

ment.

The announcement MIN8 to 47 pages, and lists a vast number of articles on which the United States will consider granting a reduction. It also mentions numerous goods at present duty-free, a list which the United States will utilise us levers for bargaining.

Interested parties are given until March 19 to submit their views and publle bearings will open in Washing- ton on March 14-Reuter.

Peace Talks Impossible Says Kawagoe

Peiping Government Must Be Protected

The

Shanghai, Jan. 8. Japanese Ambassador Lo China, Mr. Shigeru Kawagoe, in an interview, declared that peace nego- tiations with the Chiang Kai-shek regime are out of the question, and that Japan should repudiate the National Government.

The formation of a new Govern- ment in Central China was a neces-

National

pressure by the

Govern-

Does the new Hongkong Pharmacy and Poisonssity, and it should be protected from Ordinance make control of the sale of poisons and drugs ment-Neuter. strict enough?

This question was put by the Telegraph to a pro- minent member of the medical profession this morning.

JOINT RESERVE BANK

Peiping, Jan. 8. The "Provisional Government of*

under China," recently established

the Japanese auspices, announces

local bankers for the purpose of creating a joint reserve bank,

He has expressed the opinion that in some respects formation of a Committee of eight- the new Ordinance is admirable, but that it has not sufficiently tightened up the sale of drugs, to prevent

Van Zeeland's Jabuse. Report Ready In Fortnight

Learns Chamberlain's Views In Conference

SOUTH CHINA

INVASION CONSIDERED

Shanghal, Jan. 8.

The new laws, which came into: force on January 1 by Proclamation of His Excellency the Governor, bring Hongkong laws relating to pharmacy and the sale of poisons Into line with existing British law.

It is been pointed out to the Telegraph, however, that the British law in obsolete in many respects. Siner the British regulations came Canton, Jan. 8 (10) an.)

into force on April 30, 1938, new Shortly before I am. Io-day the

drugs have appeared on the market.

It is learned thai Important con- London, Jan. 7. air raid alarm sounded first and

One of these drugs, a powerful ferences are taking place In the Before completing his report on Recond warnings throughout Canton.

can be purchased at several Japanese army regarding possible According to Chinese reports threw the mission with which he had been hypnotic,

establishments In extension of the hostilities to South Japanese planes were sighted ventrusted by the French and British pharmaceutical

Hongkong. It is known as

China, with Canton as the objective. says a the Rovernments,

communique Tangkouwung and are now 141

and

is seld to relieve vicinity of the Bocca Tigris forts had a four-hour conference with Mr. stimulate

issued after M. Paul van Zeeland had drine,

Immediately afler the fall of Msion,

fon, "magically" banish fatigue, No details can yet he obtained

brain

centres. produce Nanking, the Japanese andoubtedly in Neville Chamberlain, the Belgian their operations.

optimism-all without a "hangover." contemplated making a landing economist desired to make contact

Taken in correct dosages, benze Kwanglung, near Blas Bay, as wit- with the Prime Minister in order to ascertain his

Christmas of Japanese transports in views on the general drine may have the effect claimed acneed by the concentration around situation and

and in particular, inter- for it. But taken Indiscriminately,

the vicinity of the bay. Inational action

In economic and or if the patient is susceptible to its financial spheres,

effects, it can enuse almost un-

of

It appears their objectives are the Canton railways but the planes have not come near Canton Reuter,

thus

far--

Similiar drugs are constantly ap- the market. They are pearing on

is semi-officially stated that the capital of the new bunk will be npproximately £3,000,000, and that It will issue a new currency linked with the yen and the Manchukuo. dollar.Reuter.

ANXIOUS TO AVOID ARMS RACE

British, American Naval Building "Not Welcome'

"

Tokyo, Jan. 8. A Foreign Ofce spokesman said that "the increase in naval forces by Britain and the United States was not welcome in Japan, because an arms race should be avoided in the

For some reason the Japanese have delayed action in the South, but there in reason to suppose this area is still | future," A part of the Japanese calculation.

WHY CHANGE IN PLANS WERE MADE

In the course of the discussion, believable mental distress, and a M. van Zeeland summarised the re- condition verging on temporary-in- BRITISH CONSUL ON

sull of the investigations he had been sanity. WAY TO NANKING

conducting during the past year, and It was agreed that he should now Shanghai, Jan. 8.

complete his report. He anticipated at the Japanese forces are senttered referring to Admiral Suctsugu's state-

His Majesty's Consul at Nanking that it would be ready for presenta usually termed "safe" bypaulics, but over an area whose fronts are greater ment made recently, drew attention than the combined European lines of to the fact that the interview was Mr. Prideaux Brune, left for Nanking tion to the British and French eventually theyor the majority of the Great War,

Hiven before Admiral Suetsugu was yesterday aboard H.M.S. Cricket to

investigate the condition of the ernments In the course of the nex! | them-find their way into the Re-1 of December owing to the

gistrar's statistics of deaths from appointed Home Minister.

Embassy, Consulate and other British fortnight.

polsoning. M. van Zeeland said that so for as property there.

was concerned he agreed that pen the British Embassy.--Renter, the report should be published as soon as the British and French gov- ernments had had an opportunity of considering it.--Reuter.

The Japanese are believed to have ty 350,000 men spread over the

attlefield in China.

result of the

recent troop ents the number of soldiers in mmediate vicinity of Shanghal as now been reduced to about 6,000, The main operations are at present oncentrated in the Lunghal railway "China's 7. This rallway la

ur vein," and connects Slan, the of Shens, with the senport,

10W.

MAY ISOLATE CHINESE

Japanese armies, totalling

40,000 men, whose ranks have stendly awollen with reinforce- have been advancing from the and south during the past week long the Tientsin-Pukow" railway, their objective being Hsuchow.

The spokesman said the Admiral's views did not represent the Govern ment's opinions, and the original lext does not Indicate an attitude of driving the Whites from Asia.

Mr. Prideaux Brune will not re-

DUKE OF WINDSOR MAKES DENIAL

The spokesman said that Admiraiļ

the Suetsugu had emphasised that white dominance of the coloured races needed modification. Ils re-

London, Jan. 7. ference to ald extended to China by Britain and Russia should not be The Evening Standard to-day Interpreted

challenge. He denied that the Duke of Windsor wanted only to stress the importance was negotiating for the lease of n of halting the sources of arms supply house near San Mateo. observing

he

NEW AMBASSADOR

TO BRITAIN

to Chino, le did not say that Japan "The Duke is firmly resolved to ranke MR. JOSEPH KENNEDY wanted to fight Britain, nor did he his home near Paris."-United Press. ROOSEVELT'S CHOICE

with Britain.-- United Press.

predlet & ctual

Admiral Suetsugu, Minister of the Interior, was widely quoted as having The army from the north is now declared that British aid to China ting for Lincheng, but the sudden | might cause a clash between the donment of Tsiring by General | Empire and Japan. If such a conglet Fu-chu's troops exposes Kwellch | came It would not be Japan's foult, Mathe Lunghini railway line, west of he intimated,

Isuchow. The next move, therefore,

ay be an attempt to isolate the Chinese troops concentrated nt

His remarics were taken 08 A challenge and caused a stir in London,

auchow compelling them to retire and it is belloved that representa

stward along the Lunghai railway tons were made to Tokyo through Kalteng and Chengchow in Honan,

(Continued on Page 4.)

oclal british channels as a conse

quence.

(Further Stop Press News on Page 14.)

Panay Film Stirs Horror In Britain

London, Jan. 7.

Apparently speaking facetiously, he arlded: "We are not concerned be-

is cause our naval strength

now strong enough."

Commenting on the supply of mu- The transports dispersed at the end nlllons to China, the spokesman_re- sudden vealed that Japanese officials in Ber- change in plans which observers be-in had discussed Germany's ship- Heve was due partly to a decision toments to China which they considered reinforce the troops operating on the to be greater than Britain's, and they had been told that Germany would Tientsin-Pukow railway

trom ranke an effort to check the move- the north, and partly for fear of com- ment of supplics-United Press.

ne

plications owing to the proximity of the British colony of Hongkong, the Command having Japanese High

been shaken by the Panay and Lady- bird Incidents, which Indleated that the Japanese troops were partially out of control.

་་ ་

Claims

Needs

Gayda Italy Bigger Navy

Many neutral observers belleve that an attack on Canton will cer The T'anny Alm shown in cinemas tainly take place in due course, but in London and throughout the pro-possibly not before the Lunghal rail. vinces to-day was received with con- Way operation has been successfully thious murmurs of sympathy and accomplished.-Reuter, Washington, Jan. 7. horror. The clearness of the atmos- President F. D Rousevelt hasphere contradicting the Japanese plen named Mr. Joseph Kennedy, wealthy of for at the time of the bombing

DOLLAR LINE NOW supporter of the New Deal, organiser was specially remarked upon. and Chairman of the New Moritline] The Daily Herald, commenting on CAN HAVE SUBSIDY Commission, as Ambassador to Great the Japanese Cabinet Secretary's de- Britain.

claration that "Japan will go whend",

Washington, Jan. 7. Mr. Hugh R. Wilson, prominent says: "In the Far East of Japan's

Tho Maritime Comminion on disarmament expert, has been ap- dream Japan is the supreme boss, and pointed Ambassador to Germany to there la no room for an independent nounced that Mr. Joseph Kennedy, succeed Mr. W. E. Doda.

Chinese Government and no room for Chairman of Uie Commission, who is It is also announced that Mr. the Western nations; that fact sticks in San Francisco, has composed the tion of new and direct possessions, Joseph Davis, Ambassador to Russia, out sharp and black against the now-differences between the Dollar Line: the peaceful, political and economie of Japanese apologies." ****nligible for a temporary. Government presenco of Italy is spreading in the will be transferred to Belgium in the storm

operating subsidy-United Press, world-Reuter Bulletin... spring as Ambassador,--Reuter,

Reuter.”

Rome, Jan. 7. Signor Virginio Gayda, writing in the Giornale d'Italia, declares that in detence of Italy's Abyssinian empire and in the interests of peace Italy las decided to expand her navy,

Two 35,000 ton battleships, 12 destroyers and a large number of submarines have been ordered by Signor Benito Mussolini and will be constructed Immediately.

The writer adds that with the addi

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