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The

SECOND EDITION You need

Hongkong Telegraph.

FOUNDED 1881

No. 13412

一拜禮 號七十月正英港香 MONDAY,

JANUARY 17, 1938.

日六十月二十

SINGLE COPY 10 CENTS $30.00 PER ANNUM

tho SECURITY and

DURABILITY

of

DUNLOP FORT '90'

JAPAN'S AIM TO SPEED CHINA'S DEFEAT

INDICATIONS OF Blum's First Effort To Form Cabinet Fails

MORE VIGOROUS CAMPAIGN SEEN

Prime Minister And Admiral Suetsugu Rally Nation's Power

Tokyo, Jan. 17.

U.S. Navy Building Secretly

Only Britain And France Will Bo Kept Informed

Washington, Jan. 16. The Navy Department will no longer publish periodical reports: on the strength of the United! States navy, with the number! and nanies of ships under con- bystruction, according to reliable

The Home Minister, Admiral Suetsugu, travelling train to the Osaka district, gave a statement, in the form of an interview to all Japanese circles, including industry, finance and agriculture, and said they must rally to read- just internal conditions, and proceed on a punitive expedition against China

avowed to accomplish their purpose, which was complete peace in the Orient.

Prince Konoye, Premier of Japan, is meeting members of the Japanese Diet to-day to explain the Imperial Conference ar- tion and to request fullest co-operation in the fulfilment of its nima,

It is stated that while "spiritual mobilisation" will be worked to its highest pitch, the army and navy will prepare for a more vigorous punitive expedition against China.

An organisation composed of Secretaries to members of the Diel who are members of the League on China Probierre, have passed n To- solution urging the Government to petition the throne to declare War against the anti-Japanese regime in Chinu

It is a small organisation and 110 members of the Diet were present ut the meeting--United Press,

Intentions Communicated

Tokyo, Jun. 17.

The Hochi Shimbun declares that Germany and Italy have Informed Japan unofficially-of-their-Intentions-i to recognise the "Provisional Gov- ernment of the Republic of China." --Reuter.

Chinese Check Advance

Chengchow, Jan. 17.

of crack

#

With the timely arrival Chinese reinforcements at various points along the southern section of the

railway. Tientsin Pukow major battle between

the opposing forces is believed by competent ob-

be imminent servers

Despite strenuous

Japanese at- ure Hsuchow and cut Lempts to capture

JAPANESE POLICY ATTACKED

Continued Criticism In British Press

Labour Boycott Embarrassing

London, Jan. 17.

The Daily Telegraph, in nlcuder to-day, says that Japan evidently feels

she can dispense with the formal 7

sources.

The Naval Affairs. Committee ofi he Senate this year did not Issue the ustomary statement of comparative trength of the world's leading navies which extensive Inforination re- arding the United States navy has been given in the past.

In addition, the United States will furnish the ormaments section of the League of Nations with less Informa-: tion for publication for the League's armaments book.

Britain and France will continue

to receive full information in virtue of the London Naval Agreement. It is understood the Information will not be passed on to other countries. -Reuter,

Discipline Lacking On U.S. Vessels

Consuls Report Complaints. Many Seamen Communists

Washington, Jan. 16. The Senate Commerce

Com-

of declaring war and dispose of Lmittee report, issued after recent nccredited Chinese Government and its director, by disregarding them, secret meetings, reveals that u The new Chinese regime establish- dozen Consular reports recently ed by bayonets, may have

received deplore American mer characteristics agreeable to Japanese chant

discipline. genuine taste, but it can hardly be

season, but it will strike no roots.

marine

A

CHINA WATCHES RAIDERS CARRYING DEATH LOADS

This dramatic picture was taken near Shanghai, as an aged Chinese woman and her young grandson follow the progress of a squadron of Japanese planes in the sky.

STORY OF HOIHOW'S BOMBING RELATED

Hoihow, Jan. 12 (By Mail).

at about 7.30 this When the fog lifted from the straits morning, the inhabitants of Hoihow were alarmed to find that two Japanese warships had crept in during the night and were anchored just outside of the harbour limits.

off Chinese communications along Chinese. It will be exotic in un-typical roport is that of the Anxious watchers kept the invaders under observation, but the Lunghal railway, Chinese forces congenial soil. It may blossom for a Shanghai Consul-General of July for well over an hour no untoward move could be discerned from are holding their Armly.

ground Small unlis of Japanese

troops The paper asks: "Will the new re-2, which stated:

the shore. Finally, at about 8.45, two large sea-planes left the continue to hold Tsining at the_rail- g.me be anything more than the "I have the honour to bring to the vicinity of the vessels and circled over Hoihow, apparently con- Meanwhile Chiang Kai-shek and nil serious, not to say deplorable, lack ducting observations. They then disappeared for 15 minutes rapidly advancing and it is hoped an he stands for will continue to exist of discipline prevalent on American; and inter returned followed by three other machines, after and it may well be that the growth vessels touching Shanghal. The al- which bombs were loosed over Hoihow and the city of Kiung- of the new Chinese regime will be most complete lack of a sense of chow, which is in the near vicinity.

responsibility and discipline among

way stallen and its vicinity. Rein- satrapy of Tokyo?" forced Chinese troops, however, are

(Continued on Page 4.)

STOP PRESS

slower than expected.

attention of the Department the

15

How the intention to respect the American seamen has aude American lerritorial integrity and sovereignly shipping almost the laughing stock.of of China la to be reconciled with the this country. These conditions urmed occupation of Chinese pro- vinces and the virtual deposition of yet, are largely confined to vessels the accredited Chinese Government, whose crews are shipped at Pacific will require very subtle diplomacy to coast ports."

01-

explain.

It is learned that the hearings in»! The leader concludes by describing|cluded charges that some operating the International Labour pinn of companies hesitate strictly to Sanctions as a mischievous intrusion, force the maritime laws, that some and that which could only embarrass diplomucy scamen are communistic.

two without restraining aggression-one Captain during the past Reuter.

years has "seen discipline vanish en- boys trap tirely, and that elevator young girls in the elevators between decks and make advancea."—United Prckt.

Chinese Talks

In Amsterdam

--

ALLEGED

Now Concluded CRUELTY TO

Ambassadors Leave For Posts In Europe

MUI TSAI

Roosevelt Talks With Industry

Employers Silent On Necessary Step For Co-operation

NOW SEEKING HELP FROM COMMUNISTS

Aims To Bolster Popular Front with "Red" Element

Paris, Jan. 17.

M. Leon Blum, a former Prime Minister, has given up his attempt to form a National Union Government,

He will now try to form a Cabinet with members of the Communist Party to back the Popular Front- Reuter.

THWART PRISON

BREAK

Dangerous Criminals Try For Freedom; Two Shot Down

M. BLUM'S POSITION 15 PRECARIOUS

Paris, Jan. 10. M. Blum's decision followed the refusal of M. Reynoud to take office unless the political composition of the Cabinet extended to, and includ- ed the Right group, led by M. Louis Martin.

Full support of the Radical group. who have postponed their decision until the morning, is also doubtful.

M. Blum's decision to include the Communist Parly in the Cabinet is not regarded as facilitating his task. A Communist Party statement says that the Communist leaders indicated application of the Popular Front programme was an essential condition for their co-operation in the formation of a Notional Unity Government.

that Joliet, I., Jan. 16.

criminals to

an

EARLIER PROGRESS

An attempt by five escape from gaot to-day was frus- trated after Harry Gerkin, serving a for 30-your sentence for murder, Peter Ristich, sentenced for life us

M. Blum expected to be able to habitual criminal, Donald Luftis, give the President a definite answer William Yoho and Edward Robblls, by 0 am. on Monday,—Reuter, serving terms of one year imprison- ment for robbery, overpowered the guards while they were working in

Paris, Jan. 10. the laundry.

M. Albert

Minister Sarrault,

of

a constructed

makeshift State in the former Chautemps They todder-with-clothes-and-scaled the Government, was reported to-day-to- prison wall. Despite the fact that it have been asked by the President of was dusk, one guard, Thomas Shaw, the French Republic, M. Albert Bred on the convicts and seriously Lebrun, to form

a Popular wounded Cerkin. Ristich and Yoho Cabinet. M. Sarraul is & Radical- effected a brief escape, but were Socialst Senator. caught within 100 yards of the pri- son.-United Press.

4

War Chutempe

Supreme Council Named

Six Noted Leaders On New Body

Chungking, Jan. 17.

Front

Later it was stated that M. Sarraut and M. Camille Chautemps, whose Government recently resigned, were only

called before the President for consultation, and that M. Leon Blum, Socialist Vice-President of the Cabinet, had been asked 11 Government. According to very well-informed it is M. Blum's Intention to circles, form a Government covering a wide range of political groups, including parties of Popular Front.

to

form

-WHY BONNET FAILED Explaining his failure to form Cabinet, M. Georges Bonnet, erst- (Continued on Page 1.)

It is belleved that he may offer the Ministry of Finance to centre parties Deputy, M. Paul Reynaud. M. Blum has asked the Parliamentary Socialist Party to give him full con- “ Six special members of the Mill-fidence in the negotiations he tary Affairs Commission, which har about to begin, until Monday evening. Two bombs scored direct hits on the been re-organised as the Supreme when the party's National Council Kiungchow City Maternity Hospital, War Council, have been appointed will meet. which was mercifully almost empty by the National Government. at the time and, although the build-

They are General Yen Isl-shan, ings were razed to the ground, there Director of the Taiyuan pacification were no casualties here.

headquarters; General Feng Yu- One bomb hit the High Court hslung, Vice-President of the original Irison, four prisoners being killed Military Affairs Commission, and and five others woonded.

recently Commander-in-Chief of Two bombs landed in the crowded forces on the Peiping-Hankow rail- stum

of the North Gate, way front; General demolishing two houses, but the Pacification Commissioner for occupants had already taken covers and Anhwel; General Cheng and fortunately nabody was killed.

Chief of General Staff and Comman- Nine bombs landed on open ground der-in-Chief on the Peipina-Hankow in the viélaity of the city, 1.

area

the

heng Chien,

railway front; Admiral Chen Shao- The Socony Office had an extreme- kuan, recently Minister of the Navy

by narrow escape, when a bomb land- and at present Commander-in-Chici

WANTS NO MORE PUBLICITY

Japan Seeks $50,000,000 U.S. Credit

INDUSTRIES

Washington, Jan. 18. Fifty industrialists, representative ed directly on the building next door. of naval forces, and General Li Chi- of big and little business employing This was blown to pieces and one shen, former Kwangit leader and FOR MANCHUKUO

was killed and two Inspector-General of military train- millions of workers, will confer with young man President F. D. Roosevelt on Wednes children seriously injured, while a ing-Reuter. day. The conference is expected to maid-servant, who has since been Infuence the nature and scope of missing, is believed to have been

New York, Jan. 18. which burled in the debris. business 'control legislation

One bomb Innded in a padi-field.

A report that Japanese Industrial President Roosevelt is cnosidering.

Intereste are trying to establish a It cannot be ascertained whether where an old woman on her way to

to places.

credit of G$50,000,000' In the United they will discuss holding companies. work was blasted to

States for the purchase of machinery, was revealed that, none of the The raiders, In addition, machine-

is published in the New York Times. conferees was willing personally to gunned the streets and buildings, but

Seattle, Jan. 10.

The report states that Mr. T. J. An engineer and his wife, both on express an opinion as to the neces- the inhabitants were all under cover,

A 19 year-old orphan named Joseph Watson, President of the International of and $40 ball, appeared before Mr. K. M. sery steps by Government and Busi- so that this had little effect.

Finally, at 12.45, the planes retum-Rinehart, en route to visit his foster Business Machines Corporation The Chinese Ambassador Ministers who have been meeting in A. Barnett at the Kowloon Magis-ness in order to bring about clorer Amsterdam, where they assembled to tracy this morning charged with co-operation in the interest of econo-ed to the warships, which weighed father, Lee Kwong In New York, who New York, has been approached an

the mReuter.

since infancy he has lived in the the International Chamber of Com→ Treet Mr. Sun Fo, Int to return to keeping an unregistered mul-taal at mic stabilisation. However the in- anchor and departed at about 1.30, speaks no English due to the fact that President of the American section of

Defendants dustrialius are testifying that

up river from merce in connection village of Namsol, are Nga Tan Wal Road. he capitals to which they

were Honr Wal, 45, and Kong Pun-Senate unemployment investigators at reception to the propoml that Canton, was bewildered here to-day | Japanese enquiry,- accredited, to-day,

vision of the prests and capital gains

United States buy the Common- by the curiosity of Americans. The man was also charged with have favoured a reptal or drastic re- i Iun and Southerns T. V. A. aren

tazes and the Wagner Act, the

Through an interpreter he said: in order "I am just a boy from a little village. purchases stock | eliminate duplication of operations,

Brussels, Jan. 10.

The results of the Amsterdam deli~szc, 30. berations are still being kept a close Becrat-leuter.

with the

If arranged, the credit will be used for the purchase of plant for the Manchurian Heavy Induririal Devo- 10, and with assaulting her.

Company, which was- The NDL liner Potsdam which in At the request of Mr. H. w.lon, a temperate policy towards of such dus here at dam. to-morrow from Fraser, inspector of Mul Ta hora utilities, a relaxation of the

described it an the "first step in Stats more photograph taken with boxes over the heavy Industries of h

chukua-Beuter:" berth at Kowloon ing in this case was fixed for Thure market restrictions and decentralisa-but Representative Andrew J, May give no more interviews and have no organised on January 1, 1937, to talon Shanghal will

that dish.”United Press. Mr Nash unille Congress has given a Socialism" United Pren.

· Meanwhile Wharf and will all for Europe at 10 day, January 27.

will appear for the defendanta. pm, the same day.

| ill-treating the girl, Chin Bau-yeuna, mination of Government compet!-properties. Senator Norris app to I have no story to givo and I will ❘lopment

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