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The
FIRST EDITION=
Liberry, Supreme Cout
Hongkong Telegraph.
No.
FOUNDED JUGE TDD 三拜禮 九月三英港香
WEDNESDAY, MARCH 9,
1938. 日八初月二
SINGLE COPY 10 CENTS $30.00 PER ANNUM
DUNLOP FORT 90
This new tyre meets" the conditions pro- duced by increased. car efficiency.bl
DOUBLING STRENGTH OF CHINA'S ARMY
FINAL VICTORY Horrible Poison
ASSURED,
SAYS
NATION'S HEAD
Chiang's Confidence Unshaken Despite Japanese Penetration
'Hankow, Mar. 9.
Complete confidence in China's ultimate victory was expressed by Marshal Chiang Kai-shek in a recent interview here, The Generalissimo said he believed the strength of the Chinese army would be doubled in two months' time compared with the strength of the fighting forces at the outbreak of the conflict.
In contrast to the pessimism felt in certain circles regarding the military situation in Shansi, Marshal Chiang said he was confident that the Japanese forces would not be able to penetrate further into China's north- west provinces.
He expressed the opinion that the Japanese troops in Shansi were already experiencing very great difficulties, with 25,000 Chinese troops scattered in the
HEADS NANKING GOVERNMENT - Bearded Tao Hai-shan, hending the new autonomous commission ruling the Chinese city of Nanking under Japanese advisers, is shown reading a manifesto denouncing the Chinese government formerly in power.
Hongkong First Storm
mountains east and west of the Tungpu railway, which Sees connects Taiyuanfu with Tungkwan.
These
Chinese forces were coll- stantly harassing the Japanese troops along the railway, he said.
Asked by foreigner where the government was likely to meet next
the Generalissimo replied:
Another Peer
Forsakes
The Chinese National Government Labour Party
is not the corrupt and militarist re- gime such as those witnessed in China's post history, but a revolution-
Government, representing the Bry Chinese race and nation, and every temporary reverse the Chinese army has suffered means the redoubling of China's determination to continue resistance. It would not be surpris- ing if we re-meet at Hankow, and li is even possible that we will re-meet
In Nanking!"—Reuter.
Advance Checked
Hankow, Mar, 9.
A Japanese detachment succeeded
In crossing the Yellow River at a point in the extreme north
of the
Shansi province, where the river la frozen, and occupied Fuku on March 2, It is learned here.
However, a Chinese detachment later pushed back the Japanese lo their original position as a result of fierce counter-attack, and the .rcistive Chinesp 11.31 Japanese positions this, and the other fronts, remain stationary-Reuter. Japanese Aim At Hsuchow
∙here.
on
Hankow March 9.
London, Mar. 8. Following a similar step taken by Lord Arnold, Lord Sanderson is resigning from the Labour Party on the ground that its Foreign policy involves haired of olher powers, and that it is pre- pared to go to war on behalf of collective security,
Because of this he would re- card fis attainment to office as a menace to peace.--Reuter Bul- tetin.
IMPERIAL AIRWAYS CRITICISED
But Government To Increase Subsidy To Civil Flying
The
development of
Hail
Freakisli
weather continues here. For the first time in its history, certainly for the first time in the records of the Royal Observatory which-go back · 1884, hall fell in the Colony this morning.
for
This phenomenon follows the heels of a heat record March, Sunday, was te hottest this month of any on re- day cord, the temperature reaching 84 at 2 p.m.
And at 9.50 a.m. to-day hall fell. It startled meteorological experts, It started a series of excfied tele. phone calla to the Telegraph offices and it frightened Chinese children. It fell in Kowloon, 100. for about
The three minutes. largest of the hallstones Way about the size of a ble pea. The hall followed a single (lash lightning.
of
Big New York Brokerage Firm Fails
Richard Whitney And Co. Insolvent
New York, Mar. 8.
U.S. Railways Granted Rise For Freights
Can Charge Five Per Cent. More To Haul Farm Products
Washington, Mar. 8. The Inter-State Commerce Commission has issued a decision granting railroad companies an increase in freight rates. It is estimated that the increase will amount to approximately five per cent.
on
The Commission. has allowed increases of 10 per cent.
the majority of Bents, but has exempted) several major commodities including) agricultural products, on which five per cent. Increase is allowed.
The companies claimed an inercase of 15 per cent.-Reuter.
BIG GAINS FOR RAILWAYS
Washington, Mar. 8.
It is estimated that the Increase in railroad freight rates will bring the revenue of the lines up by $270,000,- 000, which represents two-thirds of the
by the amount requested
operating companies.
The Inter -State Commission exempted agricultural products from the increases in rates, with the excep- tion of tropical fruits. Bituminou
Plot
Revealed at Trial
BRITAIN RUSSIAN ACCUSED NOW
ADMITS HIS PART IN
MEETS
ITALY
Long-Anticipated
Conversations Finally Started Atmosphere Of Cordiality
a
Rome, Mar. 8. Anglo- Italian converantions opened this evening with meeting between Lord Perth, British Ambassador to Rome, and Count Ciano, Itulian Foreign Minister. The meeting lasted over an hour, after which a communique was issued stating that a survey of the ground to be covered was made, and that the conversations will be tinued.
reserve
con-
It is believed that the next meeting will be held on Thuraday. Absolute maintained In both British and Italian circles regarding the nature of the talks, with a view to not endangering their success by premature publicity.
The atmosphere, however, is very cordial, while the Italian press is full of extracts from foreign newspapers
ACTING FOR MUSSOLINI
Count Ciano, Italian Foreign
coal, lignite cake and Iron are also Minister, was once. a fighting pilot escape the addition in rates.
Anthracite will pay ten cents a ton more to the railways, and lumber and shingles, lathes cotton seed and Vegetable oils, cost shippers five per cent. more.--Dalted Press.
£6,000,000 WAR LOSSES IN SHANGHAI
POLITCAL SLAUGHTER
Moscow Court Hears Story Of Doctors' Deceit Which Led Patients to Death
Moscow, Mar. 8.
The judge in the sensational Soviet treason trial, to-day granted M. Yagoda's request to have his evidence heard in secret session. This decision came after M. Yagoda had again startled the court by repudiating his denial, made in the morning, of complicity in the murders of Menzhinsky and Peshkov.
This happened after M. Paul Bulanov, Yagoda's private secretary for many years, had testified for 90 minutes against his employer.
M. Andrew Vishinsky, Attorney-General, asked: "What do you say now?" and Yagoda replied: "I admit complicity in the murder of Menzhinsky, and of causing Peshkov's illness, but I beg-permission to testify at મ secret session."
Understanding
Judge Ulrich granted the request, M. Bulanov painted Yagoda is a kind of Borgian polsoner, and said that Yagoda had equipped a special laboratory for experiments with chemists
Over U.S. Claim polsons, and had engaged
To Tiny Isles
Washington, Mar, 8. The United States and Britain have fairly necurato views of each other's altitude regarding the islands of Canton and Ender- bury, declared Mr. Cordell Hall, Secretary for State, at a press conference to-day.
The statenient Is taken to indicate that a`considerable ex- change of views has already been carried
and that clarification has been reached.→→ Reuter.
DIR
Japanese To Stage Huge Demonstration In Shanghai
Shanghal, March 0.
with the Hallan Army. To-day he is in a position which calls for every bit as much dexterity and cool For the first time since December | judgment lie is representing his 3, 1037, when the Japanese staged a Government in the conversations"Victory Parado" through the Interna- with Lord Perth of Britain. It is
the aim of these statesmen to smooth thele differences and attempt the appeasement of Europe.
commenting favourably on what is described as a new turn in British | policy-Reuter.
Vital Efforts
London, Mar. 8.
to The Government has decided One hundred thousand Japanese troops are being massed in Shantung dopt the recommendations of the to make renewed attempt to cap- Cadman Report that a permanent The firm of Richard Whitney and ture Hsuchow and to menace the | Under-Secretary of Air shall be ap- Lunghal Railway at Halchow, accord-pointed who will exercise general ad Company, a member of the New York ing to reliable Information received ministrative direction of civil aviation Stock Exchange, has announced its
affairs. The Government has not yet inability to meet obligations. finally decided whether to adopt the The Stock Exchange subsequently These troops, 1! is sold belong to recommenation that an additional suspended the firm for insolvency. the 3rd, 5th, 7th and 10th Divisions, Parliamentary Under-Secretary, sole- The New York Curb Exchange ulso which will be placed under a unified ly concerned with civil aviation, supspended the senior partner of the command for the drive. A column shall be appointed, but is prepared firm, Mr. Richard Whitney, former will advance southward along the to recommend an increase in sub-President of the New York Exchange. northern sector of the Tientsin ridles for air transport companies-Reuter. Pukow Railway and another column from £1,300,000 to £3,000,000.
A United Press message says that
London, March 8. will drive down into Kiangsu from
Empire the Curb Exchange lina suspended
The opening of the Anglo-Italian south-east of Tainan, which will be services by Imperial Airways and the Mr. Clement J. Dirrick from regular
Shanghai, March D. conversations in Rome ushers in a an important converging point in creation of new air services in Eur-membership, as he is unable to meet
It is reliably estimated that claims vital perlod in efforts to reach a their drive.
ope by British companies are other obligations.. It is said that this action recommendations of the committee, is in no way related to the suspenso far entered to the consulates in general appeasement, states Reuter'
Shanghal
Buffered by diplomatic correspondent. It is Im- Simultaneously the Japanese troops now stationed at Taining, on the left who also strongly criticise the man- sion of Mr. Whitney.
foreigners as a direct result of the possible, at the moment, to forecast agement of the Imperial Airways.
Shanghal hostilities, total just under the full scope of the discussions in the dank of the Tientsin-Pukow Railway. The Government has agreed, and it
£6,000,000.-Itcuter. will push southward to attack Kwel
Italian Capital, but
felt is generally that the British aim is to secure a teh, about 150 miles west of Hauchow
detente on the widest and most sure on the Lunghal Rallway.
basis, covering the Mediterranean, the Near East and the Middle East,
It such an aim is also shared by the Italian Government, It is felt in London that the negotiating states- men will not be without grounds for hoping for success.
Owing to the constant menace of
EXCHANGE INVESTIGATING
ALLEGATIONS
is understood that the Company will welcome the suggestion that a whole-
New York, Mar. 8. timo chairman should be appointed. Simultaneous with the announce-
Airways have The Imperial
ment that Whitney & Co. had been Chinese guerilla units on both sides intimated that they fully agree with suspended, the New York Stock Ex- that personal change announced that it was lif of the railway and the stift resistance the recommendation put up by the Chiara forces on the contact between employer and envestigating evidence that. Whitney & north bank of the Hwal River, the ployee should be supplemented by Co. had been engaged in cond Japanese troops on the southern collective representation.
STRONG CRITICISM
conduct con- trary to the ethics of trade.
Meanwhile the Secretary of Stols
for losses
NEW POST IN AIR MINISTRY
sector of the Tientsin-Pakow Ball-
London, Mar. 8. Way in Anhwel, will temporaril
and the Attorney General aro It is understood that Sir Donald
German Relations Abwadon their drive "northward to
The report states that although the separately investigating the affale. Banks will be appointed to the newly- menace Hsuchów, laeving the task to carriage of air passengers in safety Whitney & Co. have filed a volun-created post of permanent Under- Regarding Anglo-German relations, the farees in Shantung. They will and comfort, and the conveyance of tary petition in bankruptcy in the Secretary for Air,
the recent conversation between Herr Instead, strike westward to capture malls and freight has been achieved Federal Court. The announcement Sir Francis Shelmerdine will con- Hitler and Sir Neville Henderson,
· Hotel, important, town-in. central by Imperial Airways with considera- | has, stunned Wall Street.-—-United tiraus ad Director of Civil Aviation- and the talk Lord Halifax is to have GAREs stated Central News. (Continued on Page 4.)
Preta
Reuters
(Continued on. Page 1.) -
tonn! Settlement, the Japanese have announced a vast military, naval and air force review through the Japan- ese sector of the Settlement on March 10.
It wll be in commemoration of the 34th anniversary of the Russo-Japan- ese War.
to prepare compounds with which he hoped to dispose of his politieat enemies. A mixture of mercury and aeld was sprinkled in Yagoda's office after he had been removed from the Ogpu, which meant he had caused the death of his successor, Yezbov.
M. Bulanov proceeded to describe Yagoda's dictatorial ambitions, his admiration of Her Hitler, and his hopes of becoming head of the Gov- ernment by the seizure of power.
HOW GORKY DIED
he
When the triol was resumed in the morning, Yagoda repudiated part of his confession, denying that ordered the killing of Menzhinsky and Maxim Gorgy.
The plot to undermine Muxim Gorky's political activity by killing his son Peshkov was described to
(Continued on Page 4.)
STOP PRESS
JAPANESE PLANES SHOT DOWN
south
assisting counter-
Hsuchow, March D. Whilst returning from a Shunst mission of bombing Japanese troop concentrations. and the Chinese forces in offensive, a planer shot down
sundron ok Chinese
three
Japanese plance in dog-fights over Hushsien, Weinan and Chaawangchwang on the Although the parade is not taking Lunghai Rallway yesterday, place within the non-Japanese sectori
The Japanese plane shot down at the
nevertheless Settlement, elaborate precautions are being taken Two of the occupants were killed Huahsien was a three-senter, bomber. against untoward incidents such as and the third was seriously wounded those which marked the victory in the crash.
of
parade.--Reuter.
FRANCE PUTS VAST SUMS
INTO ARMS
Parle, Mar. 8. The French Minister of Finance to {day revealed that expenditure on armaments amounted to £1,000,000 this during the first two mouths year, and that before the end-of-the year, the total would be over £100,- | |000,000-Rester Bulletin.
All the Chinese planes returned is their huse safely.-Central Newa.
́(Further Stop' Press News on Page 12.)