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The

FINAL EDITION

FOUNDED 1881

No. 15320

三拜禮 號八十月五英港香

MAY WEDNESDAY,

18, 1938. 日九十月四

Hongkong Telegraph.

SINGLE COPY'10 CENTS

$30.00 PER ANNUM

You need.

the SECURITY and

DURABILITY

DUNLOP FORT 90

JAPANESE BOMBARDING HSUCHOW

HANKOW

ADMITTED

OBJECTIVE

Chinese Continue To Deny Lunghai Line Cut by Invaders

BUT JAPANESE CLAIM VAST ROLLING STOCK CAPTURE

Shanghai, May 17.

A Domei report issued at 10.30 a.m. to-day states that Japanese artillery has intensified the bombardment of Hsuchow and the surrounding valley, following the arrival of mountain guns.

British Leaders At Significant Shai Parley

Planes Like These May Defend H.K."

1010

Meanwhile, a Japanese spokesman states INSURGENTS that Japanese troops have succeeded in crossing the Kwei River six miles south of Suhsien, and are now advancing on Suhsien.

Japanese planes are incessantly bombing Chinese troop concentrations north-east of Hsuchow-United Press.

Objective Is Hankow

Peiping, May 17.

Occupy

"Our objective is to annihilate the Kuomintang and to Hankow," said a Japanese spokes- man to-day.

were

He added that it was likely that Isuchow would be occupied this work at the latest, since Japanese columns approaching from the

south-west west, cast and TIGAT

"doomed" city. The columin approaching from the south-west was

within 12 mile"almost artülery range"- of suchow.

now

It is understood that Japan's North China Army Headquarters are to be moved from Peiping to an undisclos- ed place in Shantung. General Terauchl, Japanese Commander-in- Chief of the North China forces, will soon move United Press.

with his

stuff...-

Stubborn Resistance

Tokyo, May 18. Vanguard troops of the Japanese army advaneing on Hauchow from the vicinity of Sinohsien clashed with the main body of Chinese troops out- side Yaolu, a small town 10 kilo- metres south-west of Hauchow, at 5 o'clock yesterday afternoon, it was reported here to day.

CHINESE SUCCESS

IN SHANSI

Japanese Retreat Towards Honan

Tungkwan, May 18. The Chinese general counter- offensive in Shansi province has met with further successes, according to reports received here.

Wanchuan, Yungho, and a village to the south-west of Kuwo in south- west Shansi have all been retaken by the Chinese in their vengeful march.

THREATEN VALENCIA

Two Main Forces Join

At Corbalan

Hendaye, May 17.

W

These are Overstrand bombers of the 101st Bombing Squadron, a fast, long-range machine with a gun-turret in the nose. Such as these may form part of the aerial defence force of Hongkong eventually, it is understood.

WARSHIPS, TROOP SHIPS

Insurgent forces have smashed OFF MACAO

the Loyalista "Iron Ring" around Corbalan, northeast of Teruel, and have now succeeded) in extending their line almostĮ directly east and west of Teruel to Alcaldechivert.

The new drive has succeeded

in uniting the two Insurgent

from Cedrillas to Borbalan,

Lead To Bolief New Attacks

Imminent

Macao, May 17.

SUDETEN PROBLEM DISCUSSED

Benes And Hodza In Conference

RECOMMENDATIONS LIKELY TO BE GIVEN TO LONDON

Shanghai, May 18.

For the first time since the outbreak of war between China and Japan, Britain's navy, army and diplomatic leaders in the Far East have met in conference.

Vice-Admiral Sir Percy Noble, Commander- in-Chief of the China Squadron, Major General A. W. Bartholomew, General Officer Command- ing the British Troops in China, and ́ ́Sir Archibald Kerr Clark Kerr, British Ambassador to China, are participating in the conference to be held to-day.

It is understood that a result of the conference will be that joint recommendations by the three British leaders will be forwarded to London.

FRENCH FINANCE SOUND

Plenty O. Money For Investment

was

Paris, May 18. The fundamental change in 'the economic condition of France is re- Beeled in the rapidity with which the Jatest National Defence Loan oversubscribed. The widespread propaganda that was to have been put into operation proved entirely unnecessary.

The

Immense

France.

reserves of

capital

Both state and public institutions,

Tho exact subject of the discus- sions is undisclosed.

In the meantime, British authori ties here are still awaiting Japanese replies to protests at the seizure of the s.s. Tung Wo, the Wilkinson In- cident, and also another protest, the subject of which not disclosed.

It is understood that prompt re- plies were demanded to each of the three protests-United Press.

BELGIAN POLICY OUTLINED

M. Paul Spaak Tells Of Programme To Spread Work

Brussels, May 18,

Prague, May 10. President Benes received Dr. Hodza, the Czech Foreign Minister yesterday to discuss the problem of In the French official Gazette to- the Sudeten Germans. It is announce day a notice will appear declaring ed at the same ume that the Foreign the subscription list closed.

of the Czech Par-amount of issue, as is well-known, Affairs Committee The largest concentration of liament has been summoned for May was limited to 5,000,000,000 francs. forces operating east and west of the city with those operating Japanese warships in the water- 24. Dr. Hodza will then take the The total applications, it is expected, will exceed the issue by several

M. Paul Spank, the new Belgian north and south, thus clearing ways leading up to the West opportunity to deliver his long exlards. This proves that there are Prime Minister, read out his eagerly

situation. the whole region along the road River since the present Sino-pected report on the international

inawalted Government declaration to Japanese hostilities began can Contrary to the original arrange-

the Chamber and Senate yesterday. now be seen and reports from ments to postpone the municipal

He began by making a profession of Chinese sources indicate that elections in certain communities till however, are still in great need of faith in democracy which, however, there are at least seven troop all elections due or overdue on May being no new loans will be issued in revision of the Belgian constitution.

autumn, it has now decided to hold long term loans but deepke that it was in need of drastic reforms.

has been decided that for the time ships and over a dozen small 22, 29 and June 12,

He then proceeded to announce the warships at the Ladrones 14-

Czech Minister in Paris, M. arder that the repatriated

He promised to do his utmost to meet lands, San Cho Island, and Osusity, is reported here to have in-seeking Investment will find its way the cultural wishes of the Flemish-

of by means of industrial loans formed the French Government

and and Wallone peoples and to restore Coulan Island.

credits and share issue participations the equilibrium of of the Czech the firm intention

the National Oververs are convinced that determined attempt is about to be

authorities

Budget by adoption of Ave measures, and population to main-into the natural channels

The experience hitherto has shown namely:

Introduction of the National emer- geney tax and increase of the import dulles;

of Inauguration

A National campaign to combat fraudulent Anan- cial deals;

a

The victory payes the way to concentrated drive on Valencia by the entire Insurgent forces.

United Press.

LOYALISTS AIRCRAFT HIT BACK

Madrid, May 17.

A communique claims that twelve Loyalist bombers, accom-

22 The

capital

tions for a southward thrust on the anied by pursuit planes, raided) made by the Japanese to land forces tain order and discipline. Contrary that in this regard the investors

Following the recapture of Yungho, the Chinese are now making prepara- Japanese in Yunghel.

Meanwhile, in Yuncheng, north the Insurgent aerodrome east of Chichsien in south Shanal, Caude.

at on this part of the China coast, and to the gonerat expectation no Inter" favour short term commitments.

that it is likely that several places view took place between Dr. Hodza

After the successful issue of the will be attacked simultaneously, while and Herr Konrad Henlein, the leader

securities markets outskirts of the city where a battle Fiat planes on the field.

The raiders discovered twelve the several minor engagements dure of the Sudeten Gormans-Trans-Into Loan both shares and fixed

They ing the last few months are believed

the Chinese have renched the eastern

is reported to be in progress,

to be part of the Japanese programme

In the vicinity of Linfen, about unloaded their cargoes of bombs to test the Chinese defences at the 100 miles south of Taiyuan, the on the grounded machines, various points. From "pill-box" positions the Chi-Chinese recently staged a surprise destroying the entire fleet. nese are said to be offering stubborn attack on the Japanese at Chinchuen resistance and Berce fighting is still station on the Tatung-Pukow Rail-Router Special

in progress.

Japanese occupation of Hsuchow i expected within the next few days (Continued on Page 6

Fog Delays Search For Lost Plane

way.

In north Shansl, the Chinese forces have systematically destroyed the bridges on the highway near Hsin- kow, 50 miles north of Taiyuan,

Manchukuo

rendering Japanese communication Seeks Coolies

dificult.

A column of Chinese troops la re- ported to be attacking Chlahan, and Sinklang, west of Kuwo in south Shanel, while another is rapidly advancing on Kuohslen in north Shans!,

A

Hard-pressed by the Chinese Japanese force of about 10,000 men, including artillery, cavalry and Infantry units, withdrew towards northern Honan a few days ago......... Central News.

From N. China

Labour Needed For ·

Five-Year-Plan

If the recent attempted landings

some

Ocean.

Plan To Aid Refugees By

Joint Action

U.S. PROPOSAL

London, May 17.

weak.-Trans-Occur.

were

STOP PRESS

PERSISTENT SHELLING

Shanghai, May 18.

An economy drive:

Creation of a system of State supervision of Gnance;

Adoption to the 1930 budget before the end of this year.

As regards the economic policy of the new Government, it would be the slogan "work

The *blg

The Japanese are keeping up a carried out Lifu Rolution." Ho

steady artillery bombardment of the Hsuchowfu in an effort to level the announced Chinese defences around the city

Tho

only

then

roads, schools,

hospitagramme

be

and steps to obtaned

undent has been

going

on necessary means will

day he

are any indication of the Japanese tactics, it is believed that invadere will attempt to occupy Lappa_Island, a large island across from Macao's Inner Harbour, where the Portuguese had at one time estaten and gardens, and over which the Portuguesa are believed to have some claim, while BRITAIN AGREES TO the other point near Macao that may

walls, according to Japaneso reports. revive .tho shipbuilding trode. The possibly be attacked is the coast near

since 3 p.m. yester-through loans. The new Government Tongka and Heung Chau, twenty miles north of the Portuguese colony.

will also devote its attention to the On the other hand it is possible

atarted a few hours needs of national defence and to the An answer was given in the that the Japanese will attempt to take House of Commons to-day re- after the Japanese occupied the Chi- promotion of Belgian foreign trade. Ngaimoon, the passage that goes megarding the American proposal Pawanshan Mountain, alx miles south

nese fortifications o the top of Trans-Ocean, Kongmoon, tind there are people who believe they might at-for international action to deal of the city. The Japanese stormed tempt to force the Bocco Tigris/ Farts with the problem of refugees the mountain slope in the face of

Whatever their plans, the large driven from their homes Los Angeles, May 17.

concentration of Japanese ships in

for intense Chinese fire. Near the sun- mit the Japanese used their bayonets, A pea-soup fog forced fiere to high

these waters might seem to Indicate racial, religious or political rea- took the fort in a bloody fight and altitudes and thwarted an exhaustive

the possibilty of a severe engagement (sons. search. for the missing Lockheed

within the next few days.

Mr. R. A. Butler. the transport plane, which has not been

Under reported since.3 p.m. yesterday, when ELECTRIC CLOCK

Vigilance At Mouth Of

Secretary for Foreign Affairs, said It took off with nine persons aboard

that more than thirty countries have and beaded for St. Paul, Minnesota,

now agreed to co-operate in Min River

establishment of an inter-Govern- There only the faintest hope that

The Daldo Company has requested

Foochow, May 10. mental Committee, on the lines pro- any of the nine persons aboard have

London, May 17,9 The Chinese military survived. It la belloved that the

Mr. M. G. Carruthers, of 353 The the Japanese Pacification Corps In

authorities posed by the United States Govern-

Exchequer returns show that toil machine, which was to have been do- Peak, has reported to the police the She notossary labour to help "recruit" are taking strict precautions at all ment, which had suggested that the

North-West Inc, of an clock, at

harbours at the mouth of the Min frst meeting should be held at Evianj: Mr. Sun Fo, the Chinese diplomat, ordinary revenue amounts to: 2779,- Placards are already being posted | River, Including Changmen, Melhua | ori July 0.

has arrived and was received yester“ | 098,918, compared with 70,195,089. has crashed into the rugged Techa- $50.

A leather belt,

year agenditure, les self-balanc- two provinces, exhorting and Wuted. All shipping is sus chapi Mountains.

pair of in the

Mr. Butler thought the bearing of day by M. Moronov, head of the Far this Committeo's work hundred searchers bangles and money to the value of Chinese coolics to go to Manchukuo. pended between 7 p.m. and 3 a.m. Meanwhile,

upon the Eastern Department of the "Fareign Tatal expenditure, lass five on the ground are tramping along the $57, the property of Wong Yung was The placards read: "Manchukuo N. A Important eltics in Pukien were refugees activities of the League of Ministry Rester, entry Free Any item, fs, 111,179,000 compared With: 2102,914,958 at the corresporid” not FO there?" rough mountainside, making the reported stolen from room 202, Mee paradise. Why

again bombarded by Japanese planes Nations would no doubt bo discussed (Further Stop Press NeuroN. Chow Hotel, yesterday.

United Prest.

(Continued on Page 6.) Färduous search/---United Press.

at that meeting-British WirMINGGUN

THAT WENT!

purse,

Paiping, May 17. The Tainan Correspondent of the Yungpeo reports that the Manchukuo authorities have in formed the Dalde Trust that 107,000 North China labourers

are needed to carry on the Five Year Plan.

the

then aided the artillerymen to get their guns in position to bombard Hauchow cityReuter,

SUN FO ARRIVES IN MOSCOW

· Moscow, May 18.

Exchequer Shows Big Revenue Loss

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