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The
FINAL EDITION
Supruzzo Court
Hongkong Telegraph.
FOUNDED 1801 No. 18664
二拜禮號二月八英港香
TUESDAY, AUGUST
22,
1938. 日七初月七
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WHITEAWAY'S
EVEN CHANCE OF RUSSO-JAPANESE WAR
OMINOUS
WARNING
BY TOKYO
Soviet Air Raids Make Frontier Situaton
Much More Menacing
BOTH GOVERNMENTS SEND
STRONG PROTESTS
Tokyo, Aug. 2.
The chances are fifty-fifty, said a Foreign
Office spokesman to Reuter, whether the Soviet air raids meant peace or war. Everything depends on the Soviet, he added.
"We want to localise the affair, maintaining a non-provocative attitude as far as possible, but there are limits to patience."
The spokesman claimed that no Japanese planes had gone into the air to engage the raiders, adding that anti-aircraft guns were responsible for bringing down the Soviet machines.
Britain Contemplates Big Credits For China
RUSSIANS
AGAIN BOMB
BORDER
Tokyo, Aug. 2.
It is learned from the War Office that 15 Soviet planes bombed Changkufeng this morning.
The damage is described as negligible.—Nenter.
JAPANESE TRYING TO GET HANDS ON SILVER
Held By Chinese National Banks
Peiping, Aug. 2. The Japanese Embassy here has informed foreign embassies that according to law
EL mulgated on February 5, the
pro-
Council of the National Govern- ment, which has the custody of the silver reserves in North China, will be abolished and re- placed by a Provisional Govern- ment Council.
He emphasised that a Russo-Japanese war would not result in the relaxation of the Japanese campaign in China, as Japan was united in her.determination to crush Chiang Kai-shek. foreign concessions
Reuter.
ENERGETIC PROTEST
Moscow, Aug. 2. According to the official Tass Agency the Soviet Charge d'Affaires in Tokyo has been instructed to protest energetical- ly to Japan, and to draw atten- tion to the possible very grave consequences of the actions of Japanese militarists who do not wish to respect the inviolability of Soviet territory on the fron- tier, which was established by Russo-Chinese treaties and is clearly marked on maps annex- ed thereto bearing the signatures of the Chinese representatives. -Reuter.
HARBIN RAID DENIED
Tokyo, Aug. 2. The Japanese War Office yesterday afternoon characterised the rumoured Soviet air raid on Harbin as utterly groundless. The Foreign Office also issued a statement that it had not heard
anything of the reported raid. Lights burned inte in the Ministrica for War and Foreign Affairs officials awaited further reports from Hsinking and Keljo, conferring with utmost gravity upon the situation.
25
Nowa of the Soviet border air raids has electrifled Tokyo.
Observers told Reuter they bo- Heved a
conflict was avoidable if Japan refrained from reprisals and Russia from further action. Their is that Japan, in view of her
utmost to achieve a diplomatic settle- mont.
But attention is drawn to the danger of commanders on the spot. .taking steps which will exclude the
possibility of appeasement.—Reuter. RUSSIAN VERSION OF CLASH DISCLOSED
View menta in China, will do her
Tokyo Recalls Troops for Manchukuo
Hankow, Aug. 2.
A Pelping report Just received here reveals that about 20,000 Japanese troops, mostly from Shans and other places in North China, have passed through here and Tientsin en route to Man- charts in the past four days. Several Japanese transports have arrived at Dairen with many
тоге,
Observern bellove that theso troop movements
are connected with the growing tension on the Boviet-Manelinkto Central News.
border. -
Resistance Will Be Maintained
Miss Koo Cheered
At Oxford
..
London, Aug. 1, "China has accepted the challenge
The announcement does not state whether only the silver held in the National Government banks in the Tientsin will
be affected or if the ruling is also held to apply to the silver held 313 foreign banks,
Recent attempts to obtain poses- sion of silver in the National Govern- ment banks in the French Concession in Tientsin have failed,
The announcement is possibly attempt to establish legat de prior to further attempts to obtain moterlat possession. United Press.
GRIM WAR ON EBRO RIVER LINE
Loyalists Gain By Surprise Attack
But Comrades
Trapped
Well-nigh impregnable in a "military paradise" high in the Pyrenees Mountains, the Spanish Loyalista" "lost bat- tulion" is healthy, well-fed, well-armed and apparently safe from dislodgement. Although cut off in the heart of In- surgent territory, these government troops have little fear of attack, as small groups, such as that pictured above, can hold the narrow passes against overwhelmingly larger
forces,
CHINESE ATTEMPT
TO TRAP INVADER
IN TAIHU'S HILLS
Hankow, Aug. 2.
Chinese troops on the north bank of the Yangtze River are trying to trap the Japanese in the hills in the Taihu-Susung sector, meanwhile delivering heavy blows
against them, reported a Chinese military spokesman at a press conference yesterday.
MILLIONS MAY BE AVAILABLE FOR NON-MILITARY DEAL
Government May Guarantee 75 Per Cent. Of Risk
London, Aug. 1.
It is learned that the Government's Exports Credits Department contemplates a £10,000,000 or £12,000,000 credit to China for non-military purposes, with the Government guaranteeing 75 per cent. of the risk to manufacturers and exporters.
The interest rates for credit purchases of non- military capital goods, including materials for railway and communications construction, would be fixed at 5% per
cent.
The risk is not merely one of Chinese default, because of the possibility of Japan's refusal to pay Chinese debts if the capital invested happens to be in the territory Japan occupies and conquers after the present hostilities have ended.
Pressure on the Government to aid China through public institutions and the press has been considerable. However, the Cabinet continues to be eager to avoid partisianship which will incense the Japanese and heighten Anglo-Japanese tension-United Press.
SERIOUS SHORTAGE
OF RAIN
17 Inchos Behind Average Fall
AVIATOR MAKES 100TH CROSSING
New York, Aug. 1. Captain von Blankenburg, piloting the German acaplane Workmeer, arrived from the Azores, this being hls 100 trans-Atlantic fight. Reuter Special.
Hongkong's rainfall for the year now lags 17 inches behind the average, the total being 36.70 inches, as compared with STOP PRESS 53.99.
82. This morning
Maximum temperature yesterday was 80 and the minimum last night, the temperature was 85, with humidity at 82 per cent. The Royal Observatory weather
pressure is low over China generally.
Fighting of great violence, according to the report issued this morning stated that spokesman, is raging in the hills west of Taihu. A fierce
Chinese counter-attack on 3,000 Japanese infantrymen at Liangho and Feng Huang Shan (Phoenix Hill), about 25 kilometres south-west of Taihu, on Sunday effectively crippled the Japanese force.
On the Kluklang front the Chinese, { the spokesman said, are persistently holding their defence line at Shaho, 17 kilometres south of Klukiang. Bitler fighting has been going on at Hendaye, August 2.
Shomaoshan, a strategic hill in the The Loyalists, in a surprise vicinity. The hill which has changed assault upon the Insurgents' rear hands several times in the last few in the vicinity of Gandesa, have days, and the Shaho railway station reached Puebla de Masaluca, on are both still in Chinese hands, he the Saragossa-Catalonia border, asserted.
it is reported.
Inter-
A large number of peasant corps, In broiling sun, and stripped to the the spokesman revealed, have sprung waist, except for their rifle pads on up in cast Honan. Armed with old their shoulders, men of the
guns, forming implements and wen- national Brigade advanced across the pons seized from the Japanese, they Bardal Elills, north of Gandean, while are harassing the invaders with great their comrades to the cast, stalling effect. Japanese garrison posts and outside Gendesa, faced 9,000 of the transport
corpy are constantly at- best troops and anni- tacked. since their communications
rear. The In north Honan the bulk of the
hlients'
14
of Japan, and we mean to realat to are disrupted from the ter of Dr. Wellington Koo, amid held runs while relays of bombers Al on the western terminus of the the end", declared Miss Koo, daugh-Insurgents pounded them with. 460 Japanese is sill at Talnyang and Po Railway. Intel- cheers, at the Liberal Summer School attempted to destroy completely the Taikou-Chinghus at Oxford, to-day.
ontoon bridges across the Euro, gence reports state that they are The insurgents claim to have cap-making preparations to cross the tured 350 men of the International Yellow River to invade south Honan Brigade, including many Americans, again,
In the same area the Insurgents claim Lo
repulsed have
strong
Japanese Prepare To Dodge Air Raids
Precautions Taken Against Russia
No further inference is possibic ow-
Local forecast is:- South
and
as to lack of returns. south-west winds, moderate; fair to showery.
An
DECLINE IN CHOLERA
CABINET LEARNS OF NEW BOMBING
Tokyo, Aug. 2.
The bombing of Changkufeng
appreciable decline in theby 15 Russian sircraft is said to number of new cholera casca has have started at 7.40 a.m. to- been apparent in Hongkong during day, but its duration, and other the last three days, which yielded
only alx additional cases, making the details are not yet available, year's total 245.
seven new casca
ingitis.
and
The news arrived in Tokyo as the Cabinet was holding its ordinary meeting where yesterday's develop ments were under discussion. There was a full attendance of Ministers who were expected to continue their were deliberations until lunch time, and fever, then resume their session in the af men- ternoon.
Dysentery is still prevalent during the past three days nine new cases have been reported, making the aggregale 638 for 1938. Tokyo, Aug. 2.
During the same period there The Fukuoka Prefectural au-two of measles, anci
of enteric
one are beginning im-| thorities mediately to portion the Fukuoka Prefecture for light control measures until further notice.
Fukuoka has heretofore been a part AMBASSADOR AT disputed frontier area, and frufilcied
WUCHOW
!
Wuchow, Aug: 2.
of a control zone during protective measures against Chinese neroplanes. The western air defences have so Moscow, Aug. 2. A
"We realise that the challenge, we
far not reported whether these mea- moro extended Soviot are facing to-day is the challenge
Furce will bo taken in Moji, account of the fighting at the world is also facing, and white
Shimonoseki and other cities which Changkufong is contained in a we are fighting for our freedom, at
In Shans!, the spokesman further are considered to be within the range Sir Archibald Kerr Clark Kerr, A of the Soviet air force.-United Press. British Ambassador to China, arrived communique stating that the the same time we are Aghting for Loyalist counter-attacks with heavy reported, the Japanese Inunched
the establishment of international losses7nited Press,
third "mopping up" drive last monti.
here from Kwellin by motor car at Japanese, supported by artillery, law and order, and the sanctity of
Yuanku, Telnahul, Wensi, Yunchong, attacked and recaptured several of 7 pan, yesterday. He was welcomed attacked a Soviet border patrol treaties which Japan has violated.
Ishih, Lintain and Chiehsien again them.-Central News,
by a large group of government fell into their hands. However,
officials and representatives of var- and penatrated four lilometres
Chinese forces which withdrew from
fous organisations. Into Soviet territory.
HMS. Daring is due to-morrow these elties lurked in the billy out- that the civilisation of the world and from Swatow where she has been on skirts and upon the departure of the human happiness depends."Reutor. routine patrol.
bulk of the Japanese troops counter-
A fow hours later, Soviet reinforce (Continued on Page 4.)
"We realise that it is on the triumph of law, order and Justice
II.M.S. DARING RETURNING
JAPANESE WITHDRAWING
Loyang, Aug. 2, Japanese_forces along the Trokow- Chinglun Railway in north Honan (Continued on Page 4)
The British Ambassador in leaving this morning for Hongkong-Central
News.
A spokesman of the War Office, interviewed by Reuter, ridiculed and branded as n complete falsehood, the reported Sovlet claim that Russian troopa yesterday re-occupied the 400 casualties on the Japanese, cap- luring five field pieces and 15 machine-guns.--Reuter,
(Further Stop Prass News on Page 12.)