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A NEW 1937

CHEVROLET

34 TON PANEL VAN

ALL STEEL TURRET TOP BODY Prico $2,750

FAR EAST MOTORS

THE FAR EAST AVIATION COMPANY, LIMITED."

20, Nathan Rd., Kowloon. Telephone 59101.

Dollar TT.1—)

T.T. on New Yor

(kong Telegraph

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Street, Haughstig.

The

FINAL EDITION LAST 3 DAYS

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Hongkong Telegraph.

TOUNDED 1001

No. 13431

四拜禮辦三月二英港香 THURSDAY, FEBRUARY 3, 1938. 日四初月正

SINGLE COPY 10 CENTS

$35.00 PER ANNUM

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JAPAN REVEALS CONQUEROR'S POLICY

COMPENSATION

WILL BE TAKEN FOR WAR LOSS

Government - Backed Industry To Exploit North China Areas

Tokyo, Feb. 3.

Mr. Koki Hirota, Foreign Minister, speaking in the Diot, asserted to-day regarding the indemnity to be. exacted from China, that "the fixed policy of Japan is to obtain due compensation for the China incident from -China, even in the event of it being impossible to obtain such an indemnity from the Chiang Kai-shek Government.

"The fact is that compensation is obtainable not only in money alone but in kind, as well," he continued.

"Japan may study precedents on the point to decide the form of indemnity to be demanded. She will also pro- ceed to obtain proper reimbursements for Japanese in- dividuals' losses due to the China incident," Mr. Hirota warned.

business;

He sald, too, that free competition would be permitted in North China except in a few more important Industries, Including trans- portation. communications, power and salt production. These would be controlled by a large company.

arcas

in

The Government, Mr. Hirota de- clared, would co-operate in cotton production with the cotton Indus- trialista of Japun.-United Press.

Wants No Complications

Tokyo, Feb. 3, In view of the Government's desire to prevent undesirable complications with foreign-governed Shanghal

the Japanese state- controlled enterprises will first make their bow in other parts of China. Therefore private Japanese concerns already operating in Shanghat are urged to engage in economic re- habilitation and development in the Shanghal area on their own initia- tive.

These statements were made in the Government Lower House by a spokesman in reply to questions regarding the establishment of state- controlled firms in China ond the scope of their activities.

SINGAPORE ALERT FOR ATTACKERS

Air Patrols Out Night And Day

Singapore, Feb. 3. Throughout yesterday the aircraft defending Singapore from the naval "attack" anticipated failed to sight the "enemy", which is steaming some- where to the north,

The planes scoured and Jave sens without result.

Anxiety prevalled as the coming of darkness blinded the watchers on the coast and in the air and the invaders be advancing were suspected to rapidly through the early night.

South

China

Gunfire was heard at one time

Japan Indicates Campaign To Be Extended

SURVIVORS VISIT WOUNDED COMRADES

Behind the Japanese lines of action, but not far enough to

be out of sound of heavy guns, Japanese soldiers, survivors of

rades. in an advance hospital.

some battle with the Chinese forces, here visit wounded com SMALLPOX

WILD DOG STALKS

EUROPEAN WALKER

IN TYTAM VALLEY

Wolf-Like Creature May Breed Pack With Mate

An alarming experience is reported by a resident of the Colony who went for a walk in Tytam Valley yesterday evening, which suggests that an Alsatian dog has run wild on the island and is by way of becoming what is known as a "killer". In fact, it is possible that

SUDDENLY INCREASES 200 CASES REPORTED

IN PAST NINE DAYS

It was disclosed to-day that 56 cases of smallpox-fifty-one of which occurred in the residen- tial areas of Victoria-were notified to the health authorities for the 24 hours ending mid- night last night.

for the whole of 1935 and 1930.

CHEFOO TAKEN IN BLOODLESS COUP

Foreigners Warned to Quit Wide Area Threatened By Accelerated Hostilities

Shanghai, Feb. 3.

The Japanese Embassy at Peiping states that "in view of the possibility of extensive operations" notes have been despatched to diplomats warning third powers' nationals to evacuate the area between the Yangtse River and a line from Tsingtao through Yenchow, Taming, Changteh and Taiyuan.

It is also recommended that national insignia be placed on foreign property and notification of the presence of foreigners be given to the Japanese authorities.

The spokesman here, announcing the Peiping Embassy's note, referred to Peiping as "the new capital."

Meanwhile, the Navy spokesman announced the air force near Amoy had destroyed the Fulishan forts and

and bombed barracks

the Chinese positions at

Hongchifong.

Three Slain- Tentatively Identified

Shoyang.

Hankow, Feb. 2..

Mra Alva

the at

Chinese reports say that Japanese planes dropped 15 bombs on Ningpo and destroyed 70 houses, wounding -eight-eivilians Foreigners report.

from

Ningpo

that the Chinese voluntarily tore up the railway lead- ing to the station in the heart of the city in an attempt to discourage the Japanese attacks. They add that despite frequent bombings the slation Is intact though blocks surround-

demolished.- ing it have been Reuter.

Chefoo Captured

Shanghai, Feb. 2. Japanese troops from Tsingtao bloodlessly occupied Cheloo this morning.

This is by far a record total for:

Je is believed possible that the any day since the commencement of the outbreak. It exceeds the totals Tce Americans which the Eighth Route Army reported as having been In addition, medical authorities slain by Japanese soldiers at Shoyang, Air patrols will continue to search

reveal that 120 cases, were reported Shans, were Mr. and for the week ending January 20, Harsh, of Peterburg, West Virginia, roughout the night, however,

increase of nearly and hilas Minerva Nether, of Zavern.

all belonging to during the day, but it was stated this

representing an 300 per cent. over previous week, Callfornia,

Brethren Mission upproaching "enemy" but to test the was not due to any action of the

and doubling the total for the first chu three weeks of 1038.

These three are reported to have ordnance of the defending examina-

Only fifty of the 120 persons con- tion service which ensures that mer-

and never to have returned. As a covered. control of the defence works. eventually be established in the chanumen sholl enter harbour under there are two of these animals, perhaps male and female.tracting the disease last week re- left their residence on December 2 southern suburbs.

These Ogures bring the total known reatt Chinese and Japanese accused The volunteers participating in the and if this is so, and they breed, the prospects are casts since the beginning of the year each other of their murder.-tinted

to 303, and the fatalities to more than manoeuvres are officers and ratings of

200. A total of

143 fatalities dogs-occurred between January 1 and Jan.

This

Eventually In Shanghai The offelal emphasised, however, that state-controlled concerns would

Shanghal area.

The development of Tsingtao. the

went spokesman

requires on, (Continued on Page 4.)

Strength Overcomes Antipathy

Sciyukai Membor Says Britain's Feeling Softens

Yokohama, Feb. 3. "The stronger Japan shall emergo from the current conflict, the weaker will be the anti-Nipponism in Britain," was the opinion expressed

the Royal Naval Volunteer Reserve, disturbing. which in stiffening the outer defences at night-time in patrol boats.-- Reuter

VOLUNTEERS AT SEA

Singapore, Feb. 2. Seven Bayal Naval Volunteer Re- serve vessels are proceeding to ses every evening during the manoeuvres on patrol duty.

They are manned by volunteers who work in business offices in the elty during the day, and forego their sleep in order to strengthen, the de- fences of the island.

Certain submarines and destroyers have been allocated to the defending force, with ILMS. Medway, the sub- morine tender, remaining at the Naval Base as their mother ship.— United Press.

AIR ATTACK FAILS

Singapore, Feb. 3.

+

The gentleman who encountered the dog-or yesterday had a most uncomfortable five minutes. is briefly the story in his own words:

CYNICAL QUERIES IN COMMONS

Will Pirates Go To Nyon Signatories'. Conference?

London, Feb. 2.

"I had reached a point on the path Feading from Wongnelehong Gap 10 Tytam where a small bridge crusses

The flgures for the first month of the current year, both for deaths and cases, exceed the totals for the whole of 1935 and 1030. In 1930 there were 61 eases and 44 deaths.

Of the 120 cases reported in the

a stream, and stood there very at last week in January, 07 occurred in

was a

Victoria, 15 in Kowloon, six in Aber- deen and one each in Shauklwan and the New Territories,

Press,

BULWARK AGAINST RADICALS

Japan Sends Her'

Censors Abroad -

Tokyo, Feb. 2.

Representatives of the Chinese Chamber of Commerce met the Japanese officials and arranged for the removal of armed police to the The Japanese dropped handbliis from acroplanes. advising noa- resistance to the Japanese occupallon. Posters to the same effect have been placarded throughout the city. -Reuser.

STOP PRESS

Japan Gives Warning

for a few minutes peering into the water, and observing the footprints of dog sandy patch by the

Of 24 dead bodies picked up by Ute bank of the stream, Suddenly a dark shape materialised in the almost dry police during the 24 hours ending D bed of the stream,

about twenty n.m, to-day, approximately eight were

Shanghai, Feb. 3. feet away. I glanced up, and saw of small-pox victims,

The newspaper Nichi Nichi reports,

Presaging most intensive bombing large dog standing among the small

CLING TO OLD REMEDIES

that Japan ir stalloning "quarantine and probably a large-scale extension boulders. He had evidently been taken by surprise, for there

Unfortunately, many Chinese still officers" at Berlin and Rome, possibly of operations in the field, the Japan strong wind and driving drizzle blow-hold to the opinion that the herbalist in April, for the purpose of exchangese Embassy nt Peiping has handed a note to the Legations in which third ing in my direction, and this prevent treatment of small-pox gives better ing information on Communist acti- ed his scenting me. He glared for a results than the methods adopted by vities and censoring "Inflammatory" party nationals are urged to evacuate literature mailed o Japan from the area bounded on the south by full ten seconds, and then slunk back qualified practitioners.

the Yangtze River, on the east by the and disappeared.

The Telegraph was informed this abroad.

This step is being taken, says the Ching Const, on the north by a line "I had a very clear view of the afternoon that the 251lbs of small-

In running roughly from Tsingtao animal: it appeared to be a wait in pox vaccine rushed to Hongkong from influential Japanese newspaper,

through Yenchow and Talyuntu. every respect, but as I know there Batavia by aeroplano Inst week-end order to "combat the Red plague."

The paper says that a similar

A Japanese Embassy spokesman In are not supposed to be wolves was for the League of Nations Anti-

official will possibly be stationed in Shanghal announcing the note sald the United States, due to the "vast it was sent to the Embassy offices in

"now

And edvlies capital" amount of Red propaganda malled to the Japan" from that country.

neutrals living in the ares to place However, a Japanese Foreign Office | Insignia visible from the ground and spokesman denies the Nichi Nichi, air on their various properties and authorities report, pointing out that Japanese to inform the Japanese officials abroad are already empower ed to carry out such activities

by Mr. Ichiro Hatoyama, a lending; The defenders of Redland (Singa- member of the Selyukal Party, on pore) forewarned by radio of the In view of the meeting between his return to-day from a prolonged approach of Blueland aircraft met the Mr. Anthony Eden, M. Charles Corbin visil to Europe and the United States. Invaders with a withering blast of and Count Grandi, representing the

He said British diplomacy is elastic anil-aircraft fire when they made signatories of the Nyon agreement, the laland, I decided it was on Alsali- and Britain would never attack the their arst appearance over the island held at the Foreign Office this after-an.

to-day.

noon to discuss the situation arising

strong.

In

Its slinking manner, unkempt

(Continued on Page 4)

Having paid two visits to London Anti-aircraft batteries ashore and out of the torpedoing of the British during the past few months, Mr. afloat joined in the crescendo of freighter Endymion with the loss of Haloyama went on, the second of sound that greeted the aerial Inva-cleven lives, Mr. Eden refrained from questions to Mr. Eden. Mr. Herbert which coincided with the Chinese slon, while defending airplanes telling the House of Commons the, Morrison asked if the Foreign Seero- withdrawal from Shanghai, he noted joined in a "dog-ight" above the details of the proposals the Govern-tary understood the cynical humour that British opinion had already city.

ment may make to prevent n recur- of the situation in which Britain pro- posed to co-operate with the allon greatly softened.

Some "bombs" were dropped, but rence of similar incidents, Mr. Intoyama proudly recalled that the Umpires ruied that the attack Mr. Eden said, however, the Gov- Government with a view to sinking his report to the Prime Minister at had failed. Despite the fact that ernment would consider what action the submarine which everyone knew Tokyo he had "correctly" predicted enriler rain had made conditions un- would be inken with authorities res-it had supplied to General Franc

Mr. Geoffrey Mander asked if the that Britain would take no adamant pleasant, nothing could diminish the ponsible for "this entirely unwarrant- sland against Japan at the Brussels vigilance of the garrison through the ed attack on a British merchant ship" pirates would be represented at the conference.

long hours of

darkness. Though na soon as the full report of the sink-conference of the Nyon Pact signs He added that Japanese propagan-hampered by local misis the men on Ing was obtained. da abroad was of the poorest and that duly at the various observation posts The Mediterranean patrol is already At this juncture Mr. Speaker Inter

vened, remarking that the supple-, foreigners want to know not Japan's started towards the sea throughout being strengthened, he stated. explanations, but her policy in dealling the night, while others listened in Opposition Labour-members al- moniary questions were getting wide with China.---Reuter,

dressed a number of supplementary of the matter-Reuler Special

(Continued on Page 4.).

tories.

(Continued on Page 4.)

YOUNG INDIAN MISSING

United Press.

of the position of these properties and

supply maps it possible,

view Ife added: "In

of the possibility

(eir lives being endangered all third party nationala are urged to evacuate."

of

.. STILI, IMPORTING OIL

It is noteworthy that Hankaw. Tokyo, Feb. 3.

where largo British Interests Are A young Indian;. Abdullah Hasit,

Replying to questions in the Diet situated, is included in the threaten- 24, has been missing from his, once to-day, the Minister for the Navy ed area, and Uist Anglo-American No. 270 Cheungshawan Road, January 30, according to a report declared that Japan allit imports oli,

adequate supply missions are scattered throughout,

Retter. for the present,liniced lad, with the police, by a friend, therefore

(Further Stop Press Newe on" Page.12.) Mohamed Ismail, building contractor ured to the Army.

PTESE-

A11

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