FOUNDED 1681
No. 10434
三拜發 进二月三英港香
Flying
Standard
IDEAL
FOR
YOUR
HOME
LEAVE
"TWELVE" SALOON—£205 ex-Works
FAR EAST MOTORS
THE PAD MAST AVIATION COMPANY, LIMITED. 20, Nathan Rd., Kowloon. Telephone' 50101.
Manager
Dollar T.T..-15. degkong Telegraph"
TT New
Cal Morning Pont, Ltd.
Aw podbam. Strast, Hongkong.
Hongkong Telegrap
The
FIRST EDITION
Fit
Lorary, Supreme Count
DUNLOP 190
MARCH WEDNESDAY,
2, 1938. 日一初月二
SINGLE COPY 20 CENTS $30.00 PER ANNUM
ANGLO-JAPANESE
TENSION
ACUTE
SENTRY FIRES Armed Nazis Mobilise for Test of Strength INTO BRITISH Italian Army WREATH ON CENOTAPH "STATE OF ALARM” IN DEFENCE ZONE
Kills Fleeing Chinese Who Refused to Halt
Estimates Climb Higher
More Mediterranean Garrison Troops
Rome, Mar, 1.
the
An Increase of 100,000,000 lire is. shown in the Army estimates for the 1938-39 Anuncial year compared with the figure for the current year. It is estimated that expenditure will total 2,012,000,000 lire,
The
accompanying report estimates says: "All the world is States ruled by so- democratic regimes Justify called their armaments US the supreme guarantee of peace. But Italy, more than any other nation, has always brought realistic und fruitful contribution to a radical solution of the problems of prace."
DURHAMS EXCHANGE HOT arming to-day.
WORDS WITH JAPANESE
Shanghai, Mar. 2.
A semi-official Japanese report says that acute tension, lasting half an hour, prevailed along the
The report adds that a new organisation in the Aegean Islands has been created in order to raise the garrisons there to the level of
un-Reuter.
International Settlement boundary, the western peri- their importance in the Mediterrane- meter of which divides the British defence sector from the Japanese occupied areas, following the fatal shooting yesterday of a Chinese by a Japanese sentry,
The report asserts that the British troops closed the Great Western Road crossing in the face of Japanese objections. "Hot words" were exchanged between the British sentries and the Japanese soldiers, adds the report.
The Chinese entered the British! sector from the Japanese occupied
territory by eilmbing through a New Bank In
barbed wire fence ilning the
perimeter. The fatal shot was fired
from the Japanese side of the fence North
as two Durham
rushed
sentries
on duty
forward to question the
Chinese. They were within a few Fails
yards of the man when he was shot.
At the time the Chinese fell a fatigue party of the Durhams and a number of foreigners were walking about, or were in cars in the vicinity. Major-General A. P. D. Telfer- Smollett is investigating the affair.
An official Japanese report says that the Chinese had stolen some copper wire inside the Japanese terri- tory, and he had refused to obey the Japanese centry's order to halt- Reuter.
WARNING SENT POLICE
New Development In S'hai Terrorism
Shanghai, Murch '2. It is learned that the French police: have mucceeded in Indentifying four! out of the six decapitated heads found in French Concession since February 7 as those of Chinese ex-soldiers be longing to an anti-Japanese gang of terrorists.
China
to Open
Peiping, Mar. 2.
The New Federated Reservo Bank, organised by the Provi- slonal Government, did not open ita doors yesterday-the opening date officially announced a fort- night ago.
Oficials of the Provisional Government stated that they were unable to give reasons why It had not opened.
The new bank notes have not yet appeared.---Reuter.
FRENCH, ITALIANS CLASH
Vicious Fighting In Shanghai Carbarets
Quarrelling Over Date Of Olympics
Germany And Italy Back Japanese Contention
A wreath was laid on the Cenotaph yesterday by Messrs F. and D. Davies on behalf of St. David's Society, in memory of the Welshmen who fell in the Great War.
Dienrement over the date the JAPANESE SLAUGHTER
Paris, Mar. 1.
of-the-
1040 Olympics.nt. Tokyo arose at a
meeting of the International Amateur RETREATING CHINESE
Ex-
Athletic Federation to-day, when the Japanese delegate pointed out that Japan did not accept responsibility end of for the chosen date at the Autust, when the weather was tremely hot and moist in Japan. Japan suggested that a better date would be the end of September or the beginning of October.
France, Britain and America, how-
said. this would ever,
prevent participation
their university athletes, who provided a large section
of the teams.
by
The German and Italian delegates snid in. view of the importance of the Olympics, surely the governments
would
that concerned
sce
their students did not suffer.-Neuter.
IN SHANSI
STRUGGLE
Peiping, Mar. 2.
The Japanese columns in Shansi are striking in every
direction intending to slaughter as many Chinese as possible, The column which advanced south through Lingshin has joined the column which took Pingyuan, while the column which. moved westward from Taiyuanfu, has planted the Rising Sun flag on the Yellow River, north-west of Senshow, and is now sending a column rapidly southwards along the river in an endeavour to cut off the retreat of thousands of Chinese who are flecing from Hwochow towards Shengi.
Meanwhile Japanese planes are bombing and machine- gunning the fleeing Chinese in various parts of Shansi-Reuter.
McNutt Pays Situation At Linfen Tenso
Tribute To Filipinos
Shanghai, Mar. 2. Happy Relations With bombing by Japanese planes during
Passion ran high last night when French and Italian sailors engaged in a free for all in 'Blood Alley," n yards lunz in French street, 100 Concession, which is lined on both sides with dance halls.
Islanders
HONGKONG PREPARED FOR EVERY EMERGENCY
GRAZ INDICATION OF GRAVITY OF POSITION
Seyssinquart to Intervene Where Unrest Centres
Vienna, Mar. 1.
The authorities declared a state of alarm at Graz to-day where the Nazis mobilised armed formations awaiting a test of strength with the Government, and the arrival of Herr Seyssinquart, Minister of Internal Security and the Police.
The authorities are keeping Herr Seyssinquart's arrival secret, having learned that the Nazis planned to give the Minister an ovation.
It is reported that Herr Seyssinquart is already at Graz where, it is emphasised, Dr. Kurt von Schuschnigg's orders to ban demonstrations must be. obeyed.-United. Press,
White Paper On Japanese Defence Measures Worried By To Be Debated Guerillas
London, Mar. 1. NIK. Noville Chamberlain, Trinie atinister, announced-that the Government will publish to-morrow a White Paper con- cerning the defence programune, and the House of Compions would devoto next Monday to debating it-United Press
BUSINESS OUTLOOK · BRIGHTER
Says Midland Bank
London, Mar. 1.
"It seems doubtful, to say the least, whether we have entered, upon a heavy cumulative slump in business," concludes the Midland Bank monthly review, after a lengthy survey of business prospects,
The review
adida
Shanghal. Mar, 2. Evidence-of-the concern aroused in circles by the Japanese military activities of Chinese guerilla forces in the
between Shanghui and Nanking, is illustrated in a striking manner in the immediate vicinity of Shanghal.
orea
A large number of "Japanese troopa to-day was seen busily digging trenchies south of the Hungjao uerodrome which is only a few miles south of the British-manned western perimeter.
the Hungjao nerodrome that the incident, leading
the hostilities
Shanghai,
to
It wat
near
occurred.--Rauter.
STOP PRESS
GUERILLAS HARASS
JAPANESE
Shouhslen, Mar. 2.
that If Britain Though a lull prevails on the banks were to form an opinion hopefully, of the Hwal River in Anhwel, Chin- actively harassing Instead of with bias towards caution, ere guerillas are
transport and It would be to the effect that the Japaneso military downward turn had spent its force, troop movements. and that a rather more buoyant con- dition might be expected in the course of this year-Reuter.
ARMAMENTS QUERY SIDE-TRACKED
Д
to
Chengchow, Mar. 2. Reports received here late last night Indicated that the situation at Linfen, south Shansi, was tense, with fighting still raging around the city. The city has been subject to severe
Constantly attacked by the Chinese the last few days. Most of the
guerlilas, the Japanese troops station. bombs were aimed at the railway
ed at Hainomachang in Chunnchino
withdrawn district have been station. On February 27-a refugee train
Fengyong. was bombed and machine-
Two hundred Japanese troops who Washington, Mar. 1.
gunned by several Japaneco machines.
trom marched
to Tingyuan Mr. Paul McNutt, Philippines High Some 50 persons were killed, the re-
Shuangchinchlen, Col. N. M. S. Irwin, G.S.O. 1,
neighbouring ut lunched Commissioner
the port added.Central News.
town, were ambushed on February 28 National Press Club to-day, the func-
who was one of the guests at
by Chinese guerillas on the way. Out of the remaining two heads, The cause of the clash was jealousy tion being featured by an informal Chinese Successful On
the dinner given at the Kam
About 10 Japanese were killed. one is still unident@ed, while the between a French and Italian sallor debate with Mr. Phillips of tho
Ling Restaurant by the South Taoching Line
Meanwhile, 50 Japanese cavalrymen other the first to be found-wan at over the fickle affection of a Russian House of Representatives Naval Com-
escorting army China A.A. in honour of the
provisions from At- the outset identified as belonging to taxi dancer. One man lost his car mittee on the significance of Ameri-
Chengchow, March 2,
Tingyuan to Chilhochen, were London, Mar. 1. Mr. Tani, editor of the Social Evening in the clash, while four others were can occupation of the Philippines.
The Chinese forces which crossed Islington Corinthians last night,
tacked by guerillas. In u two-hour Mr. McNutt's only quotable com- also injured severely enough to re- News.
Mr. R. S. Hudson, Secretary of engagement the Japanese were driven ment was that complete accord exist- the Yellow River in northern Honan struck a serious note when he
recaptured Hwahsien Meanwhile three high officers of the quire hospital treatment,
In a referred to the "black out" on Overseas Trade, aald in the House of off and their provisions scized.
Commons to-day that in the present
by For fear of beinst attneked French police have each received a The French sailors were in the ed between the High Commissioner and
a counter-offensive on February 27 are Monday evening. paid
Chinese guerillas and peasant volun- package containing a human finger majority, and after about 20 minutes and Filipino oficials. He
their preparedness for steadily forcing back the Japanese on
Col. Irwin, who is responsible for circumstances it would be contrary with the warning to censo investign of ghung, in which fists, clubs and tribute to
to public interest to publish informa-teern, the Japanese stationed the cast sector of the Taokou-Ching- Independence.
the co-ordination of Hongkong's | 10 Pu
fo tion into the despatch of the severed bottles were used with wild abandon,
armaments of a Chihhochen have marked out a de- Mr. McNutt conferred with mem-hua Railway, military advices re- defences, said the
inton relating Corinthians,
for such a short fence sector. Anyone who enters hands belonging to two Chinese the Italians took refuge in
spite of what they had heard before particular
the area in instantly fired at by the alleged to have been responsible for dance halls, where the iron gates crs of the Treasury and the Joint ceived here reveal.
Commitico to-day regarding the They are expected to reach Trokou, coming here, would have noticed how period as a
This reply was given to a question sentinels. Watch fires are Bighted publishing anti-Japanese material in were hastily closed.
proposal to modify the income tax the east terminus of the railway soon. tranquil the Colony was. He hoped, local Chinese newspapers.--Reuter.
The French police, arrived on the for the alleviation of American
Meanwhile, another column of therefore, that when they returned by Lieut-Condr. Fletcher, who asked there at pight-Central News. scene, and forming a human ring businessmen the Philippines-Chinese troops operating in southern to England, they would tell their what was the value of exports of uround the Italians, escorted them to Reuter.
Hopel has recaptured Changyuan on friends that "we in Hongkong are machine-guns and machine-gun parts the north bank of the Yellow River. perfectly well and that we are alive to Japan during November, 1937- -Central News.
and kicking."
There need be no anxiety on our behalf; we are totally prepared for whatever role we are asked to play," lie anid.
SOONG BACK.
IN HARNESS RUMOUR SAYS
a few
the wharf on the French Bund, where j they boarded pinnaces for their war- ship in harbour-Reuter.
in
NEW U.S. AMBASSADOR
COURT UPHOLDS STRIKERS
Drive On Railway
Chengchow, Mar. 2 Though the Japanese troops in Shans are driving rapidly down onl
Router.
ACCUSED EXPECTED
at
NEW SZECHWAN- SIKONG COMMANDER Chungking, Mar. 2. At its regular meeting yesterday morning the Executive Yuan decided TO CONFESS
to appoint General Teng Hal-hau ne pacification commissioner for Szech Mexico City, Mar. 1.
the Tatung-Puchow Italiway, largo | 27 as their rear was menaced by a which
Moscow, Mar. 1.
wan and Bikong succeeding the inle REACHES ENGLAND
The Supreme Court to-day refused units of Chinese forces remain on column of Japanese troops
It is expected that at the outset General Liu Halong Central News. ond continue succeeded in reaching Nankwan, London, Mar. 1. an injunction to foreign oil com- both sides of the ino
Fouth of Lingalih, by a round-about of the trial of 21 Soviets charged
with explonago, murder, and sabolage, (Further Stop Press News on :quarters to have got back into per-
panies against the award of the harassing their advance, 2*
According to official reports re-route.
Page 12) and the accused will confirm lengthy vica with the Chinese Government. Mr Joseph P. Kennedy, new Arbitration Board mulcting them to
After capturing Nankwan This time he is said to have pe United States Ambassador to London, the extent of nearly £2,000,000 for colved in those circles, the Chinese cepted the highly important port of arrived at Southampton to-day, and annual increase in wages and other forces withdrew from Lugo, im Tingshth, the Japanese have mocess-confessions which they are reported
lown on the Fatung Puchow fully taken Houtaten, Chaocheng and to have made while Imprisoned. Chairman of the Aeronnulleri Com- cordially welcomed members of the exponses arising from
thegenera) | SWRY north of Lanfon, in Fotuary.
(Continued on Page 6.) montti Linibed. Pronu, ze mission --United Prom
preas.United-Press.
atriko last May-Reuler.
Hankow, March 2,
Mr. T. V. Goong, foriner Minister
of Finance, is reported by reliable