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HONGKONG

THURSDAY, TELEGRAPH.

CHINESE DIPLOMAT DENIES HE CARRIED NEW PEACE OFFERS

Hankow, Feb. 10.

Replying to a question as to the basis of the persistent rumour that he had brought back from Japan four new peace conditions, Mr. Hsu Shih-ying, Chinese Ambassador to Tokyo, addressing the foreign press, declared: "The rumour is entirely groundless. Since Tokyo refuses to recognise the National Government as a legal entity it cannot make representations through the representative of this Government.

"Even if any terms had been offered I could not carry

them.

"Nelther would the Japanese ap- proach me. as I have always told |

them that I belleved Ching must MORE MILLIONS

resist to the end," Mr. Hou declared.

the

Mr. Hsu suld it was ha impression that the Japanese army, after occupation of the Tientsin Potraw railway, would pause to consolidate its position and then attack flankow, Chin's political centre.

FOR AMERICAN

WORKLESS

Washington, Feb. 9.

to

FEBRUARY

1938.

Refugees Increase Coin Circulation

Government's Big

Order For Mint ·

Hong

Principally because kong's population bas been increased by the refugee influx into the Colony, the value of subsidiary coins in clrculation has increased by over $450,000 in the past six months.

Government will not withdraw the cupra-nickel subsidiary coins for some time yet the Telegraph is in- formed.

Although new "Security Rin" #ve-cent and ten-cent coins to the value of $1,800,000 are on order from the Royal Mint in London, only $300,- 000 worth have been received. New coinage

the value of $202,500 is

now in circulation.

Cupra-nickel coins in circulation total $1,550,000, compared with $1,400,000 in December, 1930, ·

It is estimated that, in addition to the cupra-nickel and "Securify Rim" subsidiary colns in circulation, old Japan's agresion hud

President Franklin Roosevelt wisitver subsidiary coins to the value of been planned in three stages, he went on. Brobably this week ask Congress to

$14,000,000 are stil outstanding. First come military conqueat, second-l Krant a deficiency relief appropri- | although this type of coinage was 15, establishment of puppet regimes; ution. It authoritatively stated recalled by the Government some and thirdly, reonomile, consolidation, that this is expected to amount

time ago. an example of which was Japan's between C200,000,000 and $300,000.- new reserve bank in Niels Chine

Emerging from the White House, The Japanese authorities, under Senator William Barkley said that pressure from a people wie deuredi Presiden; konst velt was preparing to prace, had approached · China, bn, submit the catinate; in a day or two. with termus equivalent to gobletion, | The deficiency would be in addition Therefore China refused them, pre-la the G132,000,000 already budgeted -cipitatimit the Imperial Sapanese] for in the 1936 Ascal year, and It Conferenes and the decision hot taj would be spent strictly work- recognise the Central Government, rellef projects

To-day President Roosevelt con- ferred with congressional, seul, am retlef officials to discuss methods to. old the unemployed.-United Press.

Mediation Failed

Mr. Hsu declared that the German Ambassadors at Hankow and Tokyo had very energetically tried to mediate. They had failed because the Japanese terms were not RC- ceptable to China. But their efforts] were highly appreciated.

The Japanese people were asking three questions regarding the work he went on. The first was: "Why do we fight China?" To this the Government replied: "The Chinese Government Is anti-Japancse and pro-Communist." But this unswer was not satisfactory.

"What

The second question was: is the aim of the China expedition if It has no territorial or administrative umbitions?" The Government was unable to clarify the position in this direction, either, Mr. Isu said.

How Long Will It Last?

The third question was:

"How

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ese people are tired, impatient and irritated as a result of the repeated false assurances, that hostilities are of a local nature and will be quickly terminated.

10

When the Japanese told him that the wor was likely to weaken both China and Japan, and therefore should be stopped, he had answered: "More than that.' It is likely destroy both nations, But the Initiative for peace lies with Japan, and she must terminate her aggress- Jon.

He told of cases where Chinese residents had been inrtured to death in Japan in attempts to make them contribute to war funds. Others Ind been driven to suicide. But on the ether hand, many Japanese "Liberals" had visited the Chinese Embassy

andi secretly contributed to China's war chest, he asserted.-Uulted Press.

Guards Die On Frontier

Another Estonia- Soviet Incident

Tallinn, Feb. 9. Two Estonian frontler guardsmen on a sled, accompanied by an Eston- Jary driver disappeared while patrol- Ing the Soviet-Estonia border, run- ning across the frozen waters Lake Peipus.

of

in-

Later the Soviet authorities formed the Estonian Government that all three Estonians had been killed "In an exchange of fire" in Soviet territory.

The press here is asking whether this is not an "act of revenge" for the recent border incident which, it was alleged by the Soviet authori Ules two Russian guards on Soviel-Estonia border, were shot and killed by Estonian frontiersmen.— Router.

INDICATION OF DISSENSION

the

Hankow, Feb. 10. The magazine "New China" to-day published an article recupitulating the Eighth Route Army's anti- Japanese struggle and the services rendered in thila direction by the former Red Army. This is the first Communist counter-blast to recent editorials praising the work of thei Kuomintang in the Wuhan Daily News and advocating a Kuomintang one-party dictatorship.

The Chinese military organ, Sao Tang Pao, enstigating a "cerinin north-western army" for maintain- ing a awn system of organization and training, even to organising its own 'schools, newspapers and so on.

United Press.

מני

STOP PRESS

It is probable that the greater part of this coinage will never be seen again. Most of It is presumed to have been melted down when the price of silver exceeded the value of the coin as currency.

The new Security Rim subaldinry colns appear to have folled the counterfeiters who reaped such a rich harvest with cupra-nickel colns. Only one case of attempted counter- feiting of the new coins has come to light, and the counterfeit in this case was very crude.

Sweden Sends Medical Aid To China Army

A gift of surgical dressings and many other medical supplies from the Swedish Red Cross has been despatched to the Chinese Red Cross Society by the m.v. Shantung, accord- ing to Dr. C. Y. Wu, who was inform- ed by the Swedish Consul of its coming here.

Dr. Wu, the officlal representative of the Chinese Red Cross in Hang- kong, in his reply to the Consul, expressed his thanks for the generous gift on behalf of the Society.

"It is especially welcome at the present time when medical supplies are urgently needed at the front", Dr. Wu emphasized in his letter.

A

great consignment of medical supplies was also sent to the Society recently by the Health Service of the Swiss Federal Army through the International Red Cross Headquar- "lers, Geneva, proved-of-great-use-to- the Chinese Red Cross indeed.

Cessation Of Air Attacks Implored

APPEAL TO BOTH SIDES IN SPAIN

London, Feb. 9, Lenders of the Church, famous legal men and dignitaries and notable women in many walks of life have signed an appeal imploring the two parties in Spain to abandon air bomb- ing of civilian populations.

Coples of the appeal have been presented to the Prime Minister, the Spanish Embassy and General Franco's representative in London.

The appeal implores the leaders of Republican and Nationalist Spain, for the sake of the Spanish people and in the interests of humanity, to abandon by express agreement, de- Ilberate bombing of civilian popula- tions. Reuter.

Powers May Bargain With Mussolini On Spain Issue

.

London, Feb. 9. The British Cabinet to-day dis- cussed anti-piracy plans In the Mediterranean and the new efforts to be made to speed up the evacus- llon of volunteers from Spain.

It is reported that a move 15 under- way in non-intervention circles to direct the London, Paris, and Rome discussions towards the Non-Inter- vention Coinmilter, because it is realised that rapid' progress cannot be expected within the sub- commitice.

This would involve an endeavour by France and Britain to persuade Musolini to agree to withdrawals from Spain in exchange for Franco- British concessions, presumably con- cerning the recognition of Ethiopia.- United Pres.

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JAPAN WON'T DISCLOSE NAVAL SECRETS (Continued from Page 1.)

the pre-established principle of non- menace and non-aggression.

UNABLE TO COMPLY WITH REQUESTS

+

of

pared to participate in disarmament which aims at limitation both quantity and quality,

RECALLS ATTITUDE AT PARLEY

WIE

The official communique, recalling the Disarmament Conference of 1036, Anys that Japan took the stand that disarmament restricted only to limi- tallon in quality and unaccompanied by limitation in

In quantity was not dis- With regard to the request for in armament, and that it unreason- formation concerning Japan's naval able to involve notification at naval plans, the replies will declare that building plans in such a disarmament this is incomprehensible" to the "cheme. Japan further proposed a Japanese Government, which "regrets plan for establishing a a common upper Ita inability to comply." The com limit which would restrict both the municulion will further

quantity and quality of battleships responsibility for the current rumours possessed by the powers concerned. that Japan is building vessels of size exceeding the Imitation of the 1930 treaty.

disclaira

The powers, failing to agree to this proposal, tha Japanese Govern- ment did not subscribe to the dii-

Surprine is voiced at the invocation armament trealy concluded. Inasmuch of the escalator clause, because of the as it had only to do with the limita Japanese failure to reveal her bulldtion of quality and the notification of Ing plans, as it her course of action naval construction plans. Therefore who Indicative of the construction of the requests of the British, French vessels constituting “a menace to and United States governments for others. The Japanese Government such notification to which Japan had adhering to its carnest desire for dis not agreed, is quite beyond the under- armament, andt le taking this oppor-standing of the Japanese Government. tunily to announce that she is pre-Reuter,

Printed and Published for the Proprietorý by TerraRack Percy FRANELEM, at 1 and 3, Wyndham Street in the City of Victoria. Hongkong

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