A high power-weight ratio enables the smooth
12 b.p. engine, developing 44 h.p. at 4000 r.p.m.
e provide 70 m.p.h. and vivid neceleration, All
seating is within the wheelbase, and the front sents have tubular frames.
FAR EAST, MOTORS
THE FAR EAST AVIATION COMPANY," LIBITED. 20, Nathan Rd., Kowloon. Telephone 59101.
HeitarkerSouth Chipasddorning Post, Ltd., TOTXAyndal Street, Hongkong..
High Water:--18.53;
Low Water:---13.30.
The
MOTORISTS
FINAL EDITION WHOSE MOTTO IS
Hongkong Telegraph.
FOUNDED 1881
一拜禮 號入廿月三英港香 MONDAY, MARCH 28, 1938.
日七廿月二
No, 18470
BINGLE COPY 10 CENTS $30.00 PER ANNUM
Safety
FirstTM
ALWAYS FIT
DUNLOP
TYRES
JAPANESE NOW FACING DISASTER
RELENTLESS
PRESSURE
BY CHINESE
Lincheng Falls And Victorious Armies Pressing Tsining
RETIRING FORCES MAY
EASILY BE TRAPPED
Hankow, Mar. 28.
New Nanking
Nanking Government Proclaimed
SLUMP IN
PART OF WAR'S "GLAMOUR"
Chinese headquarters announced this morn- ing that Chinese troops recaptured Lincheng SHANGHAI yesterday evening, and that the Japanese troops there were retreating eastward towards the mountainous regions, and may easily be bottled
up.
The railway tracks north of Lincheng were destroyed in many places beforehand, so that they cannot be used in the retreat.
Meanwhile the Chinese counter-attack at Tsining has been successful. It reached the immediate suburbs last night, and the Chinese are also counter-attacking in the Lini area, where Japanese troops are retreating towards Chubsien.
EXCHANGE
Sterling Rate Goes Down To 101⁄2d.
Shanghai, Mar. 28.
Long after the "Banzais" that cheered them on to'vic- tory as they left.Tokyo have died away, here is a phase of war that takes away the glamour. Marching through snow and mud these Japanese soldiers are moving up to the front. through a hamlet in central China. They are now largely on the defensive.
LOYALISTS BECOME
MEMBERS IDENTITY REVEALED AFTER MAIDEN MANIFESTO
Previous Administration Condemned for Decision To Wage "Unequal Combat'
Shanghai, Mar. 28.
The Central China Provisional Government has been proclaimed at Nanking.
The five-barred flag has been hoisted over the New Asia Hotel. Nevertheless, Japanese sources state the Nanking headquarters has refused additional details until to-day's press conference, when the establishment of the new Government will be formally announced.
The new Central China regime, entitled the "Reformed Government of the Republic of China", has issued a manifesto proclaiming its inauguration in Nanking to-day.
The Government is pledged to the continuance of happy relations between China and America and Europe.
It condemns the Nationalists for leading an unprepared
Heng-chi, Wen Tsung-yao, "et cetera," thus not revealing the other members of the Government.
DESPERATE AS ARMY country into an "unequal combat, and it is signed by Liang
The exchanges opened this CONTINUES RETREAT
morning with merchant rates down to 1/- for sterling and
[24
for U.S. dollars, the banks apparently hoping that they might be able, by doing this, lo the outside market rates some- draw the merchant- rates and
what closer.
However, the result of the foregoing was that the outside.
going as low as 10%d, at which some business was done. The rate later improved to 10%1⁄2d at
Military Observers State End of Resistance Near
Hendaye, Mar. 27.
A dozen organisations comprising women of the
A Chinese announcement says that Tsao-market ran away, with sterling chwang was re-captured yesterday, and that 300 Japanese troops inside the school campus at the price there were sellers. Anti-Fascist Front, have issued a manifesto demanding Tsaochwang were annihilated.---United Press.
Across Yellow River
Shanghai, Mar. 28. STOP PRESS
It is admitted that numerous
Chinese detachments have re-crossed
the Yellow River north of the Kal- feng and Menghsien-vicinities.
Very heavy fighting is going on at Linyi where Chinese and Japanese artillery, are engaging in A duel across the Yi River.
the re-
"HONGKONG CURRENCY SAFE AND SOUND"
WAS
-Reuter
Agreement Broken
Shanghai, Mar. 28. To-day's foreign exchanges crash means the breaking of the gentlemen's Shanghai agreement between the
that all able bodied men be "rushed to the front to stop those cowardly enough to give way before the claws of the Germans, Italians and Moors."
The manifesto said that women were prepared to foreign exchange banks and the operate the war industries "with the help of our children, Ministry of Finance, undes which the if necessary, while the men are defending their loved former agreed to support Chinese currency by refusing to sell foreign exchange
for ones from barbarous invasion." below 1/2 1/168 sterling and an equivalent rate for
Meanwhile the Barcelona Defence doitors. United States dolls
Following the Chinese Gover- Ministry has issued a communique ment's exchange control measures, admitting
the Loyalists, are
that
[s
the
23 Injured In Portuguese Theatre Fire
Japanese reports admit that tens of thousands of Chinese troops are blocking the Japanese advance. The reports state that "rivers of blood are
the foreign banks continued to main slowly retreating because "the pre- washing the borders of the Shansi
tain exchange for merchants up to and Shantung provinces."
the end of last week,
but in the duction from the war factories Chinese reports claim
meantime the outside market. occupation of a dozen towns.
had inadequate to cope with the huge Sir Vandeleur Grayburn, Chief sprung up and the consequent allot-quatity of Italian
war materials The counter-offensive the Manager of the Hongkong and ments of foreign exchange by the which is arriving daily."
is greatest yet made by the Chinese. Shanghai Banking Corporation, Central Bank of China were too small It extends from eastern Shantung to
to meet the demand, with the result The communique described north-west Shand, and both regular confidence that Hongkong cur-ously dropped daily, until Saturday, the motorised untis of Insurgents emphatic in expressing that the rates quoted outside continu-valiant and desperate resistance to troops and guerillas are taking part In it. Fighing is sine going on in rency will not be affected by the when sterling wore a los cors caring crossing the Curdial Plain en route
as 11 d. the southern part of the Tientsio- position in Shanghai.
Apparently foreign Pakow railway front and at Lako "You may publish as
the week-end came to the conclusion to Fragu. my that they could no longer supported fears that 50,000 anarchists, com- pled 'upon and 23 were seriously in- opinion that Hongkong cur-change with such a divergence Over 80 Japanese planes bombed rency is perfectly safe, and tween their rates of 1/2 1/164 and Hankow and Wachang aerodromes sound, and is not likely to go bankers are hoping to maintain stari-
the outside rate of 11%. While be executed in the event of General yesterday, this being the biggest any lower," he declared in an Ing around one shilling, many brokers
Franco selzing Barcelona, raid yet staged in Contral China-interview with a Telegraph re- are gloomy, predicting that the rate
Military observers predlet that the Insurgents will win the war within a month.-United Prem..
Tal, and casualties everywhere are reported to be very heavy.
United Press.
Japanese Admit Troubles
Pelping, Mar. 28. thousands of Chinese
Several troops have managed, unobserved, to re-cross the Yellow River in North Honan to-day, causing the Japanese some trouble.
porter.
H.K. MARKET STEADIES
wero
Hongkong banking circles generally disinclined to comment on the Shanghai exchange situation and the possible effects upon the local
may go ny low ns eight pence. Reuter.
CX- Penetration of Catalonia has arous-
Loyalist Defences Crumbling
Hongkew Merchants Bar China Dollar
Shanghal, Mar. 28.
Saragossa, Mar, 27. Exchange dropped after the in- nouncement of the new Nanking now in motion along the whole line General Frunco's army which is The Japanese claim to have re-
rogime. At present the rote from north of Huesca to the north currency. pulsed one body of 3,000 men at
22% for U.S. dollars, Hongkew mer corner of the province of Castellon, market steadied this morning chants are accepting only yen and is advancing al fantastic speed, and Menghalen north of Loyang, and to
at 1 2
2 21/32," one authority Bald. other have fought other engagements with "But It may go lower. It is difcult Press.
foreign currencies United is now within sight of the borders of small groups of Chinese elsewhere. to make any forecast."
Valencia and Reuter.
Catalonia, gravely Another source pointed out that
threatening to cut off Barcelona from the rest of Spain. falling dollar
The
Successes In South Shanai the Goverment stood to lose on a and would probably Chengchow, Mar. 28. take steps to defend it. But here Smashing Litrough the Japanese again it was impossible to make pre-
lines, Chinese troops operating north diction of the Yellow River have again ro The Hongkong dollar has dropped i clotured Pinglu, strategic city: in from: 12/31/32 to the present rate South Bhanal, bordering the Great Ins fortnight; hincs; the Chinese Government Introduced its exchange pontrol; scheme para v
Vijin disorder has ruinated serurther Blop, Press Neste, ois
PRISON MINERS DIG TO FREEDOM
Petrostann, Mar. 27. Thirty-alx convicts at the Brushy Mountain prison, who were working In a coal mine, dur 20 Adat below the surface, and escaped.
Twelve of the men were captured in'n few hours-United Press.
The Insurgent forces which crossed the Ebro River last Wednesday, ad- vanced north and drove the Loyalists out of the so-called Lenin Líne at the point to the bayonet, and con- tacled Sarenina with the Insurgent troops from Hueren,
Many Loyalists ato mid to ba entrapped in a pocket hear Baragosso, and thousands of prisoners as well
**** (Continued on Page 3)
French Army
It is reported that Liang Heng-chi is leading the new regime, and that Tang Shao-yi, will assume leadership if the regime appears to be success- ful.
The manifesto said that the re-
Plane Crashes formed regime was of it temporary
Off Sardinia
Rome, Mar. 27,
It is officially announced that a multi-engined. French planc. fiying over the coast of Sardinia the night of March 20, descended in flames and all the crew peridhech
on
An inquiry is being made to discover why the plane was flying over Italian territory at night.
It is learned from' well~- Informed circles that the plane was a military one, with a crew of four-Reuter.
nature, and would amalgamate with the Pelping Provisional Government 15 soon as the Tientsin-Pukow and Lunghal railways were restored.
communications
"It is not our desire to have two rival Governments within the same country," states the manifesto, and It condemns the scorched earth policy as national suicide. Referring to the Communists, the manifesto says the Nationalists have "Invited robbers to Lour home."-United Press.
General Hata's Message
Shanghai, Mar. 28. General Hata, Commander in Chief
In of the Japanese forces
Central 10 Chino, has sent a message
the Nanking regime, pledging the Jap- anese army's support. He said that he wax gratifleri the provisional administrators' policy was to main- Falling down a flight of stairs in tain intimate co-operation
with Shanghai Street while carrying a pot Japan, and added: The Japanese of boiling congee, Wong Chlu-yec, 65, army will never relax efforts scalded himself and was taken to the chastise the old influences which are Kowloon Hospital.
(Continued on Page 5.)
OLD MAN SCALDED
to
H.K. & WHAMPOA DOCK CO.
HAS PROFITABLE AND
PROGRESSIVE YEAR
Lisbon, Mar, 27. panic among the
Fire in the projection room caused audience at a charity performance in a theatre in
An interesting year in which large profits and considerable More than 100 people were tram-progress in the scope and technical ability of the company were
Aliveiradore.
ren-United Press.
Americans Strike Back At Mexico
Washington, Mar. 27. Arising out of the dispute over, the expropriation of foreign ell companies holdings. in Mexico, It is authoritatively stated that the United Sixtes Clovernment has abrogated, na from April 1, the agreement for the purchase of Mexican allver; which ha been regarded as a major factor In stabilising the Mexican currener system.-Reuter.
No Decision Yet
-- Washington;: Mit; 27.-
י -
A Treasury Department spokesman issued a statement to-day that no (Continued on Page:5,);
achieved, was commented upon by the Hon. Mr. S. H. Dodwell presiding at the ordinary yearly meeting of the Hongkong & Whampoa Dock Co., Ltd. held in the City offices at noon to-day, The work done in salvaging typhoon-wrecked ships was also remarked upon.
Those present were: Hon. Mr. S. materials and of the cost of new H. Dodwell (Chairman), Hon. Mr. ships, which included owners to J. J. Paterson, Mesars J. H. Jensen, keep their older ones. In working L. Kadoorie (Directors), Mr. E. Cook arder, and the security brought about (Chief Manager), Mr. E. L. Hosle by a stable dollar, are three.gpod Messrs. Lo Koon-hang, reasons for the increase, but another.
Wong Ping-Jun T
N. V. one is our ingreased emelaney
Secretar Ramsey,
Lo
Croucher.
G.
NET PROFIT SATISFACTORY Mok, Wong Pak-kan, A. II. Vaswani, The nett proft
Marshall, G. W. Sewell, Dr. T. E
of $1,188,964.10
Ezra Abraham, A. H. Potts, Felix must also be considered satisfactory Joseph (By his attorney A. R. and in relation to the gross proft Fullerton), J. E. Joseph (By his at- shows a large proportionate
fro |torney A. R. Fullerton).
provement on last year. This is due
The Chairman said: The gross pro. of course to the larger volume of ft of $1,760,879.59 is the best we have
business, since certain of our over had for very many years. It is the stationary in both good and bad head charges remain moro- or: lesn result of hard work during what we
times. must regard na an, exceptional year.
Stocks of material have
In that it embraced one of the worst naturally increased, with the larger typhoons in the history of the colony. volume of work and are conserva
Before the typhoon however, our Lively valued at present-day Spro
work had increased considerably The financing yerek pusztar above the level of 1935, several The tors contributing to this welcome imel Quit provement. The worldades hezrin
pa