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The

FINAL EDITION

FOUNDED 1401

一拜禮 號九月五英港香

MAY MONDAY,

9, 1938.

日十初月四

Hongkong Telegraph.

No, 15317

SINOLE COPY 19 CENTS

$30.00 PER ANNUM

MOTORISTS WHOSE MOTTO IS

Safety

First

ALWAYS FIT

DUNLOP TYRES

JAPANESE DETAIN SHANGHAI BRITONS

CLOSE TO DANGEROUS COLLISION

Shooting Party In Suburbs Causes Garrison's Alarm

Shanghai, May 9.

Two prominent British residents here were detained by the Japanese military for one hour early yesterday morning after shooting at snipe near Lincoln Avenue in the western suburbs of the International Settlement.

Britain Drops Move For Conquest Recognition

BATTLE CENTRES IN ANHWEI

Chinese Check Dangerous Japanese Drive

Hankow, May 9.

With the stalemate on the south Shantung front continued unbroken, both the Chinese and Japancae armies are massing troops in the plains of north Anbwel for a Berce battle to

determine the fate of the Japan-

esc

northward drive on Lunghai line.

the

A

has fierce engagement already broken out at an undia- closed place between the main Japanese forces advancing along the Mengcheng-Hwaiyuan high- way, and the Chinese defenders, who have received strong rein- forcements.

The Japanese units which succeed- crussing the wal River, now military reports reveal, are

They are: Mr. Eric Moller, and Mr. Lindsay B. Moller of Mollers' Limited, well-known shipping firm.

Their They were both released after a warning. arms were not confiscated. Other unidentified members of the shooting party were also permitted to return home.

Hearing the sound of firing, Japanese soldiersed in garrisoning the area thought that "something untoward" had happened, a Japanese Embassy spokesman said to- day discussing the affair at a press conference. Lincoln Avenue, he said, under "particularly strict surveillance".

was

The hunting guns, the spokesman said, had "apparently been smuggled“ from the Settlement into the western countryside since they had not been seen by the sentries posted at various barriers between the foreign areas and Japanese-occupied territory,- Donte't

Admiral Sees

Prolonged

Firing Causes Alarm Struggle Ahead

Shanghai, May 9.

Three or four foreigners, in a shoot- ing party in the Hungino eren outside Shoughal yesterday, nearly caused a

to u incident, according serious spokesman of the Japanese Embassy who spoke to press men this morning. Entering, the Lincoln Avenue area, the foreign party started shooting and Japanese troops near-by took

alarm.

A of Japanese rushed to The A party scene and ordered the foreigners to cense firing.

Apparently the shooting party en- tered the prea from some other direction than through the Japanese sentry lines, as they would have been prevented carrying firearms had they been seen, the spokesman said.

In view of the conditions prevail- ing the

spokesman appented foreigners to refrain from such acti- vities-Reuter.

Sabotage In Chemical Works In Russia

10

Moscow, May 0. Sabotage und wreckings in the chemical industry caused failure of the entire 1937 Plan, declared M. L.M. Kaganovitah, Commissar for Heavy Industry.

M.. Kaganovitsh added that more wreckers and sples were found in this industry than in any other in the Soviet Union, owing to vital part It played in the nation's defence.- Reuter.

Huge Deficit In America

Washington, May U.

The United States Budget will have

n deficit of approximately £744,000,-

Japanese "Fire-Eater" Confident Of Success

cheeked to the south of the Hwai

River.

Competent military observers be- lieve that the centre of operations of the south Tientsin-Pukow railway battle will be along the treacherous stretches of the wal River, with Pengpu and Hwalyuan as to pivot points.

the

Despite

some headway by

MA ON SHAN

The littlo Hongkong Kotch. which Squadron-Leader G. Francis and his wife are sailing to Singapore, and which was feared to have run into the typhoon last week, is safe.

High Chinese

Japanese forces advancing in Officer Dies In

મા

northwest direction towards Peng-; pu, the

Invaders will encounter more and more diffleullies us they penelente deeper, as Chinese forces have already threatened their rear and in the vicinity of Fengyung Tingyuan.

At Hwniyuan, the Japanese forces have been increased to 2,000 waiting apparently for an opening to attack the Chinese troops to the nerth and the weat

At the same time, the Japanese forces fisting castward from Hwal- yuun along the highway towards Tokyo, May D. Mengcheng are being effectively Foreseeing the possibility of con-harassed by Chinese troops who have tinued resistance by Generalissimo damaged the entire streich of light- Chiang Kai-shek even after they are "driven deep into the hinterland of Chir, that the settlement of the conflict in China was "the greatest problem at present besetting Japan.

Admiral Suctsugu, who gained the sobriquet of "Arc-enter" because of

his

outspoken statements when he commanded the Japanese Combinedi Fleet several years ago, expressed himself confident that the downfall of the Chlang administration could

Wave

At Shungyao, the Chinese troops have captured a number of heights to the east of the town after a heavy Severe artillery duel yesterday.

gun is proceeding at Laoshushan, Central News.

Appearances Misleading- Shanghai, May 9. Foreign press reports, based on

men

be brought about by force of arres. Chinese claims emanating from Hon- "The Chiang Kai-shek administra-kow, to the effect that two groups tion," he said, "will collapse when of Japanese forces, one 8,000 the situation comes to a definite puss. strong, another consisting of 4,000

is a limit to every

military men, had been encircled by Chinese There

troops in southern Shantung were situation."

(Continued on Page 4) Admiral Suetsugu, however, admit- ted that Generalissimo Cidang may sky that he la "not yet done in" after he is driven from Hankow Into the hinterland.

The Home Minister stressed the close relationship between a reform in domestic politics and the accom- plishment of Japan's China policy in calling for popular, endeavour along those lines.--Domel.

Claims Soviet Has

Powerful

Undersea Arm

Shanghai, May 9.

That the Soviet submarine fleet ut Vladivostok outnumbers those ot! other countries was admitted by?

Death Or Life

Of Blindness

Ship Collision

Canton, May 9. Major-General Chen Chih- haing.

of commandant

tho Central Military Academy, in Canten, was drowned on May G. near Samshui, on the West River. when the steam launch in which he was a traveller collided with a steamer plying between Hong- kong and Wachow

The launch sank soon after the impact.

The academy head was travel- ling with his wife, daughter and staff, who were also drowned. Efforts are being made to re-

cover their bodies. Inter- national.

INSURGENT TRAWLERS

HALIFAX COLLIDES WITH OPPOSITION OF STRONG GROUP

Ethiopian Issue Before League Unlikely To Be Settled Either Way

Geneva, May 8.

A few hours after the arrival of Lord Halifax to attend Monday's meeting of the League Council, Britain abandoned efforts to seek a Council resolution whichTM would have opened the way to recognition of the Italian conquest of Abyssinia.

The proposal originated when it became evident that Emperor Haile Selassie's right to regain the throne of Abyssinia became a direct challenge to British diplomacy. But since an unanimous vote of the Council would be necessary to adopt proposals releasing League States from their pledges not to recognise the conquest, Great Britain will, it is believed, be satisfied with a statement by the President of the Council, the Aga Khan, the viewpoint of nations favouring recognition of the Italian conquest.

HONGKONG summarising

KETCH EVADES

BERLIN

TYPHOON SENTIMENT

-

Ma On Shan Safe, Coasting South Towards Saigon

FAVOURS CHINA

REICH MILITARY LEADERS UNEASY

AT TREND

Berlin, May 9.

4

Britain, and probably France, will then unnounce recognition of the conquest, thus fulfilling in principle Britain's pledge to Italy in the Anglo- Italian Agreement.--United Press. Famous Jurists Work For Ethiopia

London; May 8, The Ethiopian Legation has announced that Emperor Haile. Selassic has directed Ato Taezhz, of permanent representative Ethiopia at Geneva, to attend the Council meeting to-morrow. Eto Ephrem Medhen will act as substitute representative.

Sir Norman Angeli, the famous author-journalist who was awarded

The 52-feet Hongkong yacht, Ma On Shan, with Squadron Leader G. Francis and his wife aboard, is safe.

Welcome news has been re- Edward W. Beattie, United the Nobel Peace Prize In 1933; Pro- ceived in Hongkong that the Press Staff Corespondent who fessor J. L. Brierly, the famous in- ternational jurist and Chichele, Pro-. little ketch-rigged yacht which flew from Hongkong to Berlin at fessor of International Law at All

learns ago,

that Souls College, Oxford; and Professor left Hongkong on April 80 for fortnight Singapore, evaded the typhoon Japan's difficulties in China are Stanley Jevons who founded the which raged in the China sca ou causing concern to officers of the famous Manchester Guardian, Hon. Monday and Tuesday last, and German General Staff, who doubt Treasurer of the Abyssinia Associa had since been sighted by two the advisability of continuing to from the ships.

look for the ald

military The Jardine steamer, Islami, bound German - Japanese for Saigon and Hongkong from alliance implied in the tripartite Singapore, reported passing a small white yacht, flying the Red Ensign, anti-Commintern Pact.

Public opinion in Germany is in- becoming pro-Chinese. position then being Lat. 12.43 N. and creasingly Long. 100.48 E.

The man-in-the street, as well as the is wondering This placed the yacht, which is professional soldier, practically certain to have been the what Germany has to gain from the HAS QUICK RESPONSE Ma On Shan, nearly 700 miles south partnership with Japan if the latter is Indo seriously weakened by the war in of Hongkong, hugging the China coast, and approaching Saigon. China,

reported to be

FLEE FROM

al 5 p.m. on Friday, May 6. her DESTROYER

BRITISH SHIP'S S.O.S.

For Baby Girl the British freighter Befast, south-susa-west. No distres signals Japanese dicelaration, is alred: at

PARENTS' MOMENTOUS

DECISION

Chicago, May 9. Herman Colan and his wife Estelle have agreed to allów n jury of twelve men, represent- ing science and religion, to de- cido the fate of Helaine, their five-weeks-old daughter, who 1x

retinal suffering from glioms, a malignant growth across the eyes.

The baby has already lost the

STOP PRESS

SHANGHAI FACTORY TRANSFERS TO COLONY

Gibraltar, May 8. S.O.S. from captain of

It is considered that the Germano- Soviet Russin, and United Press is stating that she was being pur- were made.

A German steamer, the Crefeld, Informed, that the German General sued near Gibraltar by two also reported that she had sighted a Staff is wondering how effective surgent trawlers, brought an yacht about 1 pm, on May 6, but Japan is going to be against Soviet immediate response from the this vessel was near the North Reef Russia it her strength continues to bo Many feel that Japan British Navy to-day.

(north of the Paracels) and it seems dissipated. The 1,335 ton destroyer Grattan, doubtful that she was the Ma On might be of doubtful value in view of (Commander.C. L. Firth) which was Sinn, as the ketch could not have her record in China.

made up such a lot of mileage is a commissioned only two and 13 one of the speediest vessels few hours.

The German ship said that the in the British Navy, was rushed in- mediately tu tha assistance of the yacht was about five miles away, British ship..

RA.F. RECEIVES REPORT

The Managing Director, Mr. P. N the vempany Won, acting for Alr The Royal

Force Baso this quest. had received 11

A survey of opinion reveals that, purchased Kowloon Inland los num- and made for the sanctuary of Ceuta. morning stated it

The Refast, which was formerly signal from the Islami reporting the whilst offelally Germany is continu-bers 4, Oil and 4,014 at the Nantucket Chief, was detained eighting of a small yacht which is

years

ago

As soon as the destroyer hove Into aight the tenwlers altercil their course

MARKETS IN CHINA

.The Tien Chu Vo-tain Man- ufacturing Company, formerly of Shanghal, has purchased a big fac In addition, the Germans are con- tory building site in Kowloon and I cerned with the prospect of losing planning to transfer the bulk of itam their markets in Chiu u the event business to this Colony. of Japan succeeding with her can-

n

Crown

Lieutenant Zenichi Okazaki, navallsight of her left eye, and the attache to the Japanese Embassy intright oye is also believed to be for a fortnight at Palma, where she generally "believed to have been thoing a pro-Japanese policy, a pro- Land anie this afternoon. The lots

Moscow, who is now back in Japan, affected. The growth is belic- was seized by the Insurgents Inst Ma On Shan. The Telegraph was according to a Tokyo report.

"The Soviet navy, influenced by ved to be slowly reaching across January-Reuter,

the British and American application to the brain, where it would

of the escalator clause, is inclined to cause death.

build large capital ships," he said.

"That the Murmunsk fort along the

The alternatives are to allow

Chinese sentiment is unofficially are 154,000 square feet in area and

the cost price was $80,400.

The company proposes to erect a site and informed that when sighted by the rowing throughout the Relch.

It is significant that there in no talk $1,000,000 factory on the Islaint, the Ma On Shan was off Cape Varela, close to the Indo-China const. of recalling the German military will employ several hundred men.

Omcial circles are sceptical that advisers who organised the Chinese SHANGHAI-NINGPO

the yacht reported to have been seen Army, and who are known to re- SHIPPING STOPS

by the Crefeld was the Ma On Shan, Port to Berlin quite regularly as her position falled to taily with Informants agree that the official Ningpo, May 9.

that of vessel later observed, by pro-Japanese, nttllude will continue If President Roosevelt's proposed ex-apparently changed the naval opera-operate, and possibly save the life of the child. Even with an

Shipping between Shanghal the Islami. Further indication that for some tirae, but secretly, Germany penditure for Recovery is fully car- Tied out.

Lieutenant Okazaki noticed consi-operation, however, the child will Ningpo has been ordered suspended the Jardine ship did sight the Mn On will depend less on collaborallen from This estimate was made in Con- derable O.G.P.U. agents in Siberia be permanently blind in both by the Chinese military authorities, Shan is contained in the fact that her Japan in the event of a general war.. firess by the Acting Budget Director, Lengeged

lo-day-Central position was consistent with the

(Continued on Page 4.) cyos-United Press. "Mr. Daniel Boll-Reuter,

000 sterling for the fiscal your 1930,

Arctic const has been completed hes natura to take Its course, or to tions

In the Aretle."

In

International.

counter-espionage.---

boginning

News.

from

and

-United Press.

(Further Stop Press News on Page 12.)

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