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THE FAR EAST AVIATION COMPANY, LIMITED. 26, Nathan Rd, Kowloon. Telephone 59101,

Low Water:15.31.

gkong Telegraph

Morning Post, Ltd., "Street, Hongkong.

The

FIRST EDITION

Library, Supremes Court

Hongkong Telegraph.

No. 14154

FOUNDED REAL 一拜禮號七廿月六英港香 MONDAY,

JUNE

27, 1938.

THOUSANDS OF

CHINESE

RECAPTURE

日十三月五

SINGLE COPY 10 CENTS $30.00 PER ANNUM

DUNLOP FORT

This new tyre meets ' the conditions pro- duced by increased car efficiency". §

90

JAPANESE SLAIN

Chinese Air Fighters Claim Big Victories

DIPLOMAT

HSIANGKOW RUSHING

Survivors of Fierce Battle Flee West; Road to East is Cut

Telegraphic Messages Ordinance,

Coppripht b

Un Telegraph, 10,17 p.in., June 28, pubilfabed 10,15 nm. June 27,

گوں

کے

لے

ازه

Hankow, June 27.

Recetpra

The Chinese spokesman announced this 10rning that the Chinese forces had recaptured Hsiangkow, 33 miles above Anking.

The Chinese entered the city at noon on Saturday, after decimating the Japanese defenders, who lost between three and four thousand dead.

I

The remnants of the Japanese, numbering not more than one thousand, are fleeing in a westerly direction along the south bank of the Yangtse, because their retreat eastward has been cut off.

The spectacular Chinese victory was gained ¦ after fighting that lasted from 8 o'clock in the morning. The Japanese, in retreating, left huge quantities of munitions and supplies, which fell into the hands of the Chinese.--United Press.

Bitter Fighting

Hankow, June 27. Bitter Bahling is reported to be go- Ing on at Matang, and also at Hsiang- shan, according to a statement by a Chinese miliary spokesman.

Japanese troops at Halangshan arc oying positions to the north-east Je town and the Chinese aro 13sed to the south-west.

The Chinese, it is stated, “are cking vigorously" in an attempt prevent the Japanese establishing foothold on the south bank of the angise River.

Part of the Japanese forces nt :sinngshan are said to have retreated į

Saturday in the direction of Aintang, where they are now report- and to be surrounded.-Reuler.

WATER SPOUTS OFF H.K.

Phenomenon Seen By

Peak Residents

Three water

spouts

in

phenomenon rarely scen Colony waters-were observed, by two Peak residents on Sun- day morning. The first occurred about three miles west of

TO BERLIN

German Ambassador's Mission A Mystery

Hankow, June 27,

The German Embassy hus NOW informed the Chinese Foreign Office of the departure of Dr. Oskar Trautmann, Ger- man Ambassador to China, by air liner from Hankow to Berlin.)

The Chinese authorities deny the

regarding Stro-Germ.on retations, which, necording to quarters, have become strained as a result of the recall of the German

FUNDAR

re

advisers to the Chinese Government,

It posted that the newly-appoint- Led Chinese Ambassador to Germany. 3 Cheng Chien, will be leaving

ortly to Bertin-Reuter,

Di Traubnanu arrived in Hong- boug yesterday. He flew here from Hankow. According to Chloese sources be was remaining in Hong- kong only briefly and would return to Hankow.

ITALIAN WARNING TO SPAIN

Swift Vengeance If Bombing Of Fascist Cities Attempted

Rome, June 26. Searchlights played over Default Signor Benito Mussolini's

Partial

On Austrian Loan Interest

London, June 26. Only 85 per cent. of the in- terest due on the seven per cent. Austrian Government's foar coupons will be palit on July 9.

This announcement was made to-day by the Austrian bankers, Messrs. Morgan, Grenfell & Co.. acting upon instructions from the Bank of International Selflements at Basle.

Payment on the Austrian loans for June has not yet been made.

Trans-Ocean.

NANKING REBUILDS BUSINESS DISTRICT

Stores To Replace Residences

Shanghal, June 27.

be

the

TC-

sidence on the outskirts of Rome until late last night.

It is thought that this precaution was taken in view of the threat by the Barcelona Govemment to carry

Japanese troops photographed in Anking, capital of Anhwei Province, during the occupation on the night of June 12----Presa Union Photo.

FLOOD VOLUME LIKELY

TO BE SWELLED VASTLY BEFORE RELIEF POSSIBLE

out reprisals against Italy and Ger- pouring across

many for the nir Loyalist Spain.

The extent of the Yellow River floods, which are the plains of Honan into Anhwei bombings of Province, and threaten the greatest disaster in the Omeial quarters state that they do history of China's Sorrow-as China's second largest not take the Barrciona treats ser- river is called-may be gauged from statistics issued by attempt to carry them into effect, the Yellow River Conservancy Board. The total flow of Italy's reply will be swift and de-water past Chengchow, junction of the Lunghai and Peiping-Hankow railways, is at present 3,240,000,000 gallons an hour.

lously, but odd that should Barcelona

cisive-Reuter.

Close Watch Kept For Terrorists

Of this huge quantity only 250,- 000,000 gallons is flowing to the sea In the Gulf of Chihil, along the existing river bed. The rest pouring through the breaks in the dykkes in the vicinity of Kaifeng, and is spreading across the country.—72,- 000,000,000 gallons every 24 hours, spreading death and devastation in lis path, respecting neither Chinese

or Japanese.

Shanghai, June 27. Sunday having established itself

The floods have driven a 100-mile as the favourite day for the activities of Chinese terrorists, the polles of wedge between the Chinese and both the International Settlement and Japanese forces in Honon and, except French Concession kept a speci-|14 Isolated positions, where the ally vigilant watch last night.

Japanese have been cut off on the Chinese side of the flood-waters, has

The Settlement police mobilised all completely stopped the war in the uniformed and plain-clothes men in north. readiness to be sent out anywhere in

по means

the Settlement at a moment's notice. But Conservancy officiale state

A special watch was kept over the that the floods have by radio stations, which had been reached their peak, bombed previously, and the riot squads stood by during the night hours Router.

FIRE DOES GREAT DAMAGE TO PLANT

Lantao, the second on the north- A new business district will aat corner of Lantao near developed in Nanking within abmaring Islands, and the third next three months, according to also off Lantao, west of Papai. plans revealed by the Nanking] ·

The disturbances, which loaled

Municipal administration. about Ave minutes, occurred just. Areas on both sides of Shanel before 8.45 o'clock yesterday morn- Rond, the residential district" of Ing. The spout

before near Submarine Nanking

tho Japanese

Paris, June 26... Islands was large. It is estimated

occupation, have been marked out ne

Damage catimated at 10,000,000 that it reached a height of 1,000 feet a new business district.

francs was caused by fire in a tergo where it merged into heavy black Blocks of new buildings will be French rug factory at Beauvals yes- clouds. Its base was believed to be constructed in this area ind; when Kerday afternoon. Large stocks of about 220 yards, and the top of the completed, w!]] Un lensed to wool were destroyed in the conflagra- column was estimated to be half a merchants as shops and premises ut tion, cause of which is at present un- mile wide. It travelled fairly quickly reasonable rentals.

known-Trans-Ocean,

Merchants desiring

to

secure

The present flow of the Yellow River past Chengchow is 3,240,- 000,000 gallons an hour. By the end of July the anticipated flow will be 15,040,000,000 gallons an hour-a Ave-fold increase. Omelals bellevo that the river will definitely increase its flow by the amount, due to the summer ralna anticipated in in/d- July.

Russians Dance To Polls

Increasing Output Of

RAIDERS DEFEATED IN BATTLE OVER CITY OF NANCHANG

Bombers Destroyed While Attempting to Refuel

Shanghai, June 27.

Chinese reports state that 20 Japanese planes clashed with over 50 Chinese pursuit planes at Nanchang yesterday,

At least five of the Japanese planes were shot down. The Chinesc losses are not mentioned.

There were a series of dog-fights throughout the day as the Japanese attempted to bomb the boom across the river at Matang and the Chinese bombed the Japanese warship concentration in the Yangtse.

Reports claim that Chinese planes destroyed twelve Japanese bombers refuelling on the ground at the aerodrome at Anking, while several Japanese planes were also disabled at Wuhu,

May Drive

Into Fukien

From Amoy

Shangha), June 28. The Japanese forces at Amoy are reported to be concentrating large supplies on the Island. apparently in preparation for a drive inland through Fukien pro- vince.-United Press.

CHINESE AIRMEN SINK MORE WARSHIPS

At Least Three Destroyed, In Yesterday's Raid

Tungliu, June 27.

Crack Chinese air squadrons

The Chinese claim to have disabled three Japanese warships In the Yangtse near Anking.

Hankow reports stute that Chinese planes come and went from the Hankow aerodrome throughout the day, taking off and landing at fre- quent intervals for what were parently continuous raids on the Japanese,

ap

The Japanese now have 32 mine- sweepers in the Yangtse a few miles below Matang, endeavouring to clear a path through the mine-strewn river for the transports and war- ships.'

The Japanese spokesmon in Shang- hal denies the Chinese reports of un afr rnid on Änking whieli, he de- ctares, must have been carried out in the imagination of the pilots and In Invisible planes.-United Prom.

Japanese Version

Shanghal, June 27. A Japanese communique states that Japanese naval and army plancs

(Continued on Page 4.),

STOP PRESS

Chinese Gain Fresh Ground

Hankaw, June 27. The Chinese succeeded in re-taking

continued their devastating war Shiangkowchang yesterday, according

Kailan Mine against the Japanese naval con-

Japanese Pleased By Company's Policy

to a military spokesman, who stated centration in the vicinity of that the land forces were assisted in Slankow yesterday morning at the battle for possession of the cliy 6.30 o'clock as they sank at least by Chinese planes. three enemy vessels in a terrific bombardment.

The Chinese air force rained tons Peiping, June 25.

of high explosive on the Japanese The Tung Pao to-day announced ships, more than fifty in number. that the Kallon Mining Administra-Direct hits were scored on several of tion, co-operating closely with the them and four were seen to catch fire Japanese authorities, is planning the and founder. Increase of its annual coal produc- tion to over 5,000,000 tons.

with the

The Chinese aerial attack yester- day morning was carried out at the The newspaper says that aftersame time that a violent battle was

Japuntaoraging ashore. conferring this year's output as follows: authorities, the K.M.A. is allocating As the bombs hit their targets,

Ares, huge

accompanied by blinding smoke, rose from the Japoncso vemola which prevented the Chinese planes ascertaining the exact extent of the damage done, melde from the ships

(1) 1,000,000 tons for Japanese military transports;

(2) 200,000 for Tientsin sales; a) 500,000 for Shanghal sales; (4) 100,000 for Hongkong soles; (5) 200,000 for local use;

(0)' 1,700,000 for export to Japan.

were sunk.

4

SECOND RAID

Japanese marines who had occu- pled the city on Saturday were forced to withdraw under heavy fire, being closely pursued by the Chinese. An attempt is now being made to isolate and surround the retreating Japanese.

Chinese reinforcements have arriv ed in considerable numbers on the

south bank of the Yangtse, particu larly in the neighboured of Matang, and the Chinese are confident that they will be able to withstand any Japanese efforts to break the booms across the river.

Japanese bombers bombed Matang yesterday, but, according to Chinese reports, did little damage.

In addition to recapturing Shlang. kowchang, the Chinese carried out a scrleg attacks on the Japanese positions near Tikangcheng, recover in several vantage points which had weet Captured by the Japanese last week. Nine Japanese warships en- under a

heavy barrage, for tho despatches. Chinese machine-gun fire"

attempt.

The Chinese air force directed two

ing beon

Japanese officials are pleased that lightaler raids on the Japanese ficel an important official of the K.M.A. In the Yangise yesterday morning, deavoured to land reinforcements, recently went to England, following now announced. a conference with Tokyo authorities, for the purpose of raising additional capital to finance the increased pro- duction.-United Press.

in a northerly direction.

・・・ Moscow, June, 20. The other two apouts were smaller, portions of land within the district

Amid gay scenes, with singing and hey also moved north, hitting in order to construct shops of their

Socialist Fedoral Soviet Republic The spout off Cheung Chau own dealm will be permitted to do Rond for the numerous stall-holders dancing in the streets, the Russian

who now carry on busiNGEJ on the

Russia proper poiled to-day to viously council a disturbance in the so, providing they submit the plans sidewalks. surroundingsen,

elect lis Supremo Council. but so far. Into the Municipal, administration. bos

The Russiari Socialist. Federal Several markets will be erected on men of the new business aren al- Jélsify of either," and there if no

eloven constituent republies of the mon stor ballava the phenomena the, alte of the former Municipal rondy have been set aside by the

Soviet Union;. Moralelor damkgo.... swimming pool off. Hanchung Road Municipal administration--Reuter,

and includes 22) Reuter.

known; no sailing craft was: in tho] fore commencing-consiruction. Funds required for the develops soviet Republje is the largest of the

autonomous republies, which also elected'. Supreme Councils,

The only nominee for each district was a candidate of the "blog of party and non-party Bolshevika."--

but

One of the Japanese vessels hit. Innanese forces in Rimed

was a

every

Japanese attempts to capture Taihu

according to military

of cruiser type. a large craft, As this vessel took fire and found- ered, the despatches any, the rest of have failed, and the Chinese have the smaller ships, more than iwenly succeeded in driving the Invaders

In number in

the Immediate back towards Talensham. Sovero vicinity, were put out of formation fighting is now taking place between. |and steamed down-river.

the two towns-Trans-Ocean,

(Further Stop Press News On Page 12.)

Two of the three Japanese vervola sunk, it is stated, were hit during the second raid.--Central News,

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