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FINAL EDITION

Hongkong Telegraph.

FOUNDED 1081

Nu. 23370

五拜禮 號五十月七英港香

FRIDAY, JULY

15, 1938.

日八十月六

SINGLE COPY 10 CENTS $30.00 PER ANNUM

UXURY ANY HOME

MATTRESSES LODSE CUSHIONS UPHOLSTERY," ETC.

DUNLOP RUbber co.

(CHINA) LTD. Marina House.

CHINESE PREPARE FOR NAMOA ATTACK

RECAPTURED

ISLAND TO

BE

DEFENDED

Guerillas Operating Close to Tientsin

Colonel Hung Chih-cheng, commander of the daring Chinese guerilla units which recaptured Namoa Island last Monday night, was appointed by the Kwangtung Provincial Government yesterday as the acting magis- trate of the island hsie», according to local Chinese press reports from Canton.

Meanwhile, anticipating an imminent Japanese counter-attack on the strategic island off the eastern Kwangtung coast, defence works are being feverishly built by the guevillas, with the assistance of the civilians who played an important role in the recapture of their island.

It is reported from Swatow that at present above four Japanese warships and several armed fishing boats are concentrated in the waters near Namoa. Two Japanese seaplanes which took off from a vessel patrolling near Swatow, made a reconnaissance over the island yesterday morning.

11 is revealed that the number of -the Japanese garrisoning the island at the time, of the Chinese operation last Monday night was only 200.

Chinese Guerillas Active

Hankow, July 15.

Chinese guerillas have recently extended their activities to the im- medinte outskirts of Tientsin, message from that city revealed.

A few dags ago, they disarmed the polloemen auiside the west gate and selzed two trucks from them.

20 KILLED

IN ITALIAN

AIR CRASH

Big Plane Vanishes; Wreckage Found

British Labour Press Demands Loan for China

JAPANESE PRISONERS questioned at Hankow, by foreign correspondents, through the aid of an interpréter. Hankow, strategic city on the Peiping railway, and temporary eapital of China, is seen as the next objective the Japanese forces hope to capture, as a new drive is opened through Central China.

FLEETS LEAVE PARACELS

Japanese Avoiding Misunderstanding

Canton, July 15.

The Yut Wah Pao reports that both the French and Japanese naval concentrations off the Paracels are dispersing.

On July 13 Ave Japanese naval, Rome, July 15. units were sighted sailing, apparently Meanwhile, the message added, All of the twenty passengers in returning to Swatow. Chinese mobile hands in eastern the 1-fated Italian air-liner. lost

Seven more Japanese craft left on Hopel, who have hitherto confined Wednesday, were Italians.

arc only their operations around Yullen,

The victims included the Marquis the same night and there

re- Japanese minesweepers Marina, Taunhwa, Hinglung and Kihtien, Fesdivilla

Gentleman-in-three

vicinity

the maining in the have extended their activities to Waiting to the King of Italy. Luanhsien on the Peiping-Liaoning The cause of the disaster is alter-Paracels, Railway and districts along the natively stated to have been a broken;

On July 14 several French ships Luan River since the beginning of air screw and a fire aboard. this week--Central News.

General Valle participated in the were seen leaving the Paracels and search by alr-Reuter.

Chinese Pressing On Taian

WRECKAGE FOUND

Ronie, July 14. The wreckage of a missing Italian between commercial plane, lost

Hotsch, Shantung, July 15. Military reports received here state that strong Chinese troops and militi- amen are pressing on Titan, Import-Cagilari and Rome Wednesday morn- ant town on the Tientsin-Pukow

ing, has been found. Railway, 72 kilometres south of Fifty planes and several ships participated in the search for the The Chinese have defeated a unit missing air-liner, which carried 10 of 3,000 Japanese in a heavy engag-passengers and a crew of four. ment at Shinkow in the suburbs and The cause of the disaster is un- are pursuing them toward Talan. known.United Press,

Tsion.

Trac 00 the northern section of Tientsin-Pakow Railway has agnin beep'isrupted following the destruc- tion of a steel bridge at Chuchiafu, gouth of Taian, by Chinese guerillas.

Central News.

Retreat Reported

Pelping, July 4.

“KWANG”

PROVINCES CO-OPERATING

Canton, July 15.

-03

returning to Kwongchowan.

of

11 was on July 14 when the French ehlps celebrated the fall of the Bastille, by "dressing ship" and firing that Japanese a salute of 19 guns,

departed "10 ships in the vicinity avoid any misunderstanding."--United |

Press.

Paid Holidays Legal Reality

London, July 14,

Britain Hoping To Keep Old

BRITAIN CONCERNED AT TRADE

Ally, Portugal POSITION

London, July 14. Britain has no intention of withdrawing the military mission present In Lisbon. and negotiations between this mission and the Portugese Government regarding the supply of British armaments to Portugal will be continued.

Clase friendship with Portugal Great Britain's oldest ally—ls regarded as being more necessarz than ever because of the im- portance of the sea-route through the Mediterranean

the and strategie significance

of the Azores on the route to the Cape. ---Trans Ocean.

Junk Pirated

Near Harbour

Adverse Balance Should Be Removed

London, July 15.

Concern at the recent tendency of British overseas trade is expressed in a memorandum by the Federation of British Industries to the President of the Board of Trade.

The memorandum, drawing atten- tion to the recently increasing adverse trade balance, declares that the pre- sent world situation does not war- rant the assumption that the position wil right itself automatically.

Discussing remedies, the memorn- dum instances eleven countries which sell to Britain substantially more than they purchase, aggregating a visible adverse trade balance Britain of £382,000,000.

to

Govern- The memorandumi uzges ment to assume greater powers than It has at present and, among other things, to limit the operation of most- favoured nation treatment to coun- tries granting reasonable reciprocity, and thus cheek the entry of subsidis- ed goods.-Router Special.

BRITAIN ON LOSING END'

London, July 14.

GOVERNMENT WOULD

BE SYMPATHETIC TO PRIVATE DEAL

But Negotiations Thus Far Apparently Ineffective

London, July 15.

"A loan to China-a thing that the Chinese people need if they are to buy anti-aircraft guns for their defence-has been turned down because the Cabinet is afraid of offending the Japanese, just as the defence of the British ships bombed by Franco was refused for fear of annoying Mussolini," declares the Daily Herald in an editorial to-day.

'

The Daily Herald adds that it is the wish of the British people to help as far as they can the innocent victims of aggression. And it is that principle which ought to govern the policy of the Cabinet, and not the fear of the harsh words of war-makers.

British Loan To China Now Impossible

London, July 14.

The reported breakdown in negotiations regarding the graut- ing... of... a loan by England to

now China is

confirmed

in informed quarters here.

It is stated it would have been necessary for the loan to be guaranteed by, the British Gov- ernment.

The British Government, it is understood. was not willing to assumo this obligation under existing

· circumstances.—Trans- Ocean,

UPROAR AS CHINA LOAN DISCUSSED

Opposition Storm Against Decision

Two boat people were injured in an alleged piracy at sen yesterday.

They were Chal Chook-you and his son. Chan, who is master of a fishlog bout, reports that about 6.30 a.m. yesterday, while one and a half hours from Tak-Min, they were stop-

The first effects of the recent Angio. ped by a boat containing seven men Elrean trade agreement is shown in armed with revolvers and knives. Afigures of Anglo-Irish trade for the during question time to-day, i couple of shots were fired, and some month of June. thing like pellets hit him and his the son

In moving the Second Reading of the Holidays with Pay Bill, Minister of Labour, Mr. Ernest Brown, said the measure gave per-

AUSTRIAN DOCTORS

Four other fokis hid at the back mission and power to certain wage of the boat while the robbers ran The Kwanglung Provincial Bank is Oxing authorities to fix holidays with sacked it, taking, in addition to $30

In money, a total haul of $100. The four Chinese divisions, which planning to establish a large branch pay. surrounded the Japanese Takahashi in Wuchow, the research department The Bill affected potentially about unit near Hotsin, In south-enstern | having already sent its entire staff to 2,000,000 workers and a result Shanel Province, yesterday started to Wuchow,

holidays with pay would become a retreat to the south-west towards

This is interpreted here as pre-legal reality. Jungho, unable to withstand the

Increased economic

The Amulree Committee, he added, vigorous onslaught of the Japanese Yamadaki unit which has come to operation between Kwangtung and estimated that up to the end of 1930. holidays with pay were assured to assist the hard-pressed Hotsin unit. The Provincial Bank is also ship- about 7,750,000 work-people

The Japanese are now in pursuit ping large stocks of salt to Kwangst in proportion of forty per cent. of the He of the retreating Chinese, according response to appeals from Kwangsi to reports received here. Meanwhile, | marchants.---United Press, Iwo

other Japanese units arc continuing their attack on Chinese troops retreating south from the Yuanku sector-Domel.

Leaving Kiukiang

Tokyo, July 14,

enging, Kwangsl

some Japanese hulks, but are looting the Chinese houses.-Domci,

Japanese In Shanhi Withdrawing

were

MAY GO TO GREAT BRITAIN

London, July 14. Amazing scenes were witness- ed in the House of Commons

Its up to the British people to convince the Government of that fuct. ct us begin at once with this matter of a loan to China.

Resolutions dernanding this loun must be passed and posted in Down- ing Street and wherever lovers of peace are gathered together.

"We owe it to the

women and children of Canton to mauke a'loan' lo China--for is only by such a loan that Chino can get air defences to protect her population against the Japanese bombers."--Reuter,

Government Sympathetic

London, July 14%" The Chancellor of the Exchequer, Sir John Simon, stated in the House of Commons to-day that various pro- posals had been made by the Chinese Government for obtaining a loan in Great Britain.

If, in certain circumstances, the Chinese Government found it possible Lo obtain toan from British financial. Institutions, any request for Govern- ment approval would be sympathetic. ally considered.

His Majesty's Government had no power to grant or guarantee a loan without legislation, which, in certain circumstances, it did not see its wait, clear to introduce.—British Wireless.

STOP PRESS

BOMBERS OVER HANKOW

when the Chancellor of the Japanese air raiders appeared over The most striking feature is that Exchequer was informing the Hankow on another bombing exped!- while, for example, the value of House that the British Govern- tion this morning, according to cattle imported from Elre increased

radio telephonte advice received in The raid was still in progress when from £433,000 in June, 1937, toment was not in a positoin to Hongkong shortly before noon.

bv In reply to a question 2828,000 in June this year, practi-grant a loan to China.

Mr. communication was suddenly inter cally

of United overy category.

for rupted. Kingdom exports to Eire show de- A. Greenwood, Labour MP creases Reuter Special

Wakefield, the Chancellor said that Efforts to re-establish radio contact the Chinese Government had made with Hankow since the dramatie several proposals for a British loan, silence has falled. but under existing circumstances the T

could

Rush Serum For China

Government

not submit to

Parliament any proposals for grant

ing or guaranteeing

Ioan.

When Sir John Wardlaw-Milne,

Cholera Gains

Conservative M.P. for Kidderminster In Hongkong

was asking Sir John Simon a question in this connection, proceed inse were interrupted by a distur- bance in the Strangers Gallery,

total of 18,500,000 worksperimentul had already set up a

There has been a striking increase Manila, July 15 to com committee co-ordinate Industrial,

in cholera Incidence in Hongkong educational, transport and lodgings,

London, July 15. In reply to a request from the holiday

"Nations' büreau in Singu- other

arrangements.

no less than 52 cases have been Answering a question in the House League

people?" a woman. screamed.

15 during the Considerable progress had been made.

"We want our freedom!" she yell-reported, including of Commons last night, Sir Samuel pore, the Philippines Govern Slug Why don't you think about Eng during this week. Since Sunday fas The educational authorities endeavouring to arrange school holl Hoare, the Home Secretary, admitted offered to manufacture and deliver

prouched,

183, a good percentage of days, elementary and secondary, so that he had been in consultation with to China before October 0, six millioned, as the Sergeant-at-Arms ap- past 24 hours. as to fit in with industrial holidays, representatives of the British medical doses of anti-cholera setum.

The serum will be manufactured the woman struck out in all dirée

Violently abusing British Fascists, year tomber of notifications this

which have profession regarding the admission of

proved fatal. Chinese troops have sinrted to

In the main this would be a Tungkwan, July 15.

Dysentery continues ould be a local Austrian medical practitioners into and delivered at mere production Lions as the police approached. She

to claim withdraw from Klukiong, on the Unable

vletime, five now cases being reported to withstand repeated problem, Yangtse, according to Information Chinese onslaughts, the Japanese at

d of Education had also the United Kingdom.

cost, namely 2% U.S. cents per dose. The Board of Education had also a NE EN BACK A

yesterday, bringing the aggregate to A mesango from Singapore stated Sir John Simon's answer to Sir

474) for 1986 09 reaching hare, which says the Chin-Yangcheng, west of Tsingcheng, in been in consultation with Universities There was an unanimity of opinion, ese in, the area have not only des- south-eastern

In addition, there yesterday authorities and examining boards and, the Home Secretary said, that only a that China requires alx million doses John Wardlaw-Milne

were Ave troyed foreign satablishments, in started to withdraw in the direction the Board had been impressed with restricted number could be admitted, before the middle of August.

The message adds that Yugo-Slavia Mr. Arthur cluding the French Catholic churches of Tatarcheng significant the readiness of al concerned to help and that each Individual case, would the Amoricán Hospital" and the "A strong Chinese

column is in dealing with the problem have to be carefully scrutinised on Anglo-American School, as well on pursuing theme Central Nawa and Britch Wireless,

ita meritapTrans«Dogan,

Shank,

was eventually removed.

drowned

in the uproar, madaour housedilons of enteric fever two of:

Henderson, is Goriating 800,008 douver M.E for Kingswinford, asked the

(Continued on Page 4.)

·Special

mealer and one of diphtheria

(Further Stop Press News on Paga:124)

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