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The

FIRST EDITION

Jerome Court

Hongkong Telegraph.

FOUNDED 1801 No. 18300

三拜禮號三月八英港香

WEDNESDAY, AUGUST 3, 1938. 日八初月七

SINGLE COPY 10 CENTS $36.00 PER ANNUM

1938

DUN

LOP

50 YEARS OF GROWTH

DUNLOP Fort

Tho Toro with 2,000 Teeth,

SOVIET EXPECTS JAPAN "TO CLIMB DOWN"

NOT ALARMED German Press Blames Russia for Clashes

BY STORIES

OF CLASHES

But People Prepared

To Meet

Aggression

Moscow, Aug. 3.

The border fighting between the Russian and Japanese troops has not disturbed the calm of the Soviet capital, and the affair is regarded here merely as another local incident which causes bad blood, but which will blow over.

It is pointed out that Russia is not prepared for war, and she believes Japan is bluffing and will climb down if Russia makes clear her determination not to yield.

Brief reports of the fighting are printed inconspicuously in the newspapers, which studiously avoid comment, but the general sentiments of the public and the country's pre- paredness are summed up in the resolutions adopted at factory meetings yesterday, which was observed as “Anti-War Day."

One resolution declares: "Let thic Japanese Samurai remember that the Russian people are not scared by threats, and that Stalinist, youth is ready at the first call of the Party and the Government to repulse the enemy."

A London message on the Soviet- Manchukuo border incidents states that there is no tendency for alar In well-informed London circles respecting the Russo-Japanese In- cidents.

Reuter's diplomatic correspondent states that this feeling is based on re- ports from Moscow and Tokyo that the incident la not likely to lead to serious conflict, as it amounts only to frontler trouble.

Suggestions of posslite mediation

are discounted, DS there

Is no

tendency at the moment to think

RUSSIANS CROSS KOREAN BORDER

Bombs Dropped On Kojo, Says Tokyo

Tokyo, Aug. 3. Domei's correspondent at

such a course is necessary-Reuter. Keijo reports that Soviet

Public Indignation

Moscow, Aug. 2.

Although the official attitude over the Manchukuo border affair

planes, flying in formation, crossed the Korean border at 6 o'clock yesterday, hover

FUEL HAS BEEN ADDED to the Czecho-Slovakian minorities Hlinka, leader of the Clerical crisis by the entry of Father Slovak People's Party, the fight. He wants greater! autonomy in Bratislava.

into

Czechs Meet Sudetens In Conference

Prague, Aux. 2. Premier Milan Hodza fins written to Herr Kundt. Chair- man of the Sudeten German Parliamentary Party, appointing to-morrow for the official open- ing of negotiations between the Sudetens and Czech Ministers.

The Chamber met to-day and adjourned stue die after a formal 20 minutes session-Reuter,

BLOODY BORDER BATTLE

Chinese Fighting Determinedly

Nanchong, Aug. 3. Bloody fighting is proceeding on the Chinese have decided to make a border where the Hupch-Anhwei

10 check the Japanese westward thrust to the

described as being cnim and collected, ed over Kojo and dropped determined stand workers gathered at meeting halls to-day in the various factorics and bombs. The results of the Wuhan area. voiced war-like threats.

are

The Frontier Guards at Karello raid passed

not reported. resolution which read: The Red Army will give such United Press. lesson to the Japanese bandits that they will be unable to come near us for a long time."

Similar indignation meetings were held in Leningrad and Kharkov factories United Press,

HANKOW EVACUEES ARRIVE Uneventful Trip. From North

DIPLOMATS STAND BY

Tokyo, Aug. 3, was open all last night, but it is The Japanese Foreign Office understood no formal ences were held.

Chinese evacuation of Susung on the north bank of the Yangtse River, 30 miles to the north-west of Klu- kiang, according to military clrcles, was effected on the night of August 1 for the purpose of drawing the Japanese farther into the hilly dis-

on the border. Despite the fall of Susang, large confer- contingents of Chinese

troops are

CENSORS

DISTORT DESPATCH

First Concrete Evidence

Face-Slapping Incident

Shanghai, Aug. 3.

First concrete evidence of the actual distortion and re-writing of foreign correspondents' tele- grams by the Japanese censors was received in Reuter's Shang- hai office yesterday, shown by the receipt of a mes- This was

from Reuters Tsingtao corres- sage as despatched on July 7 pondent to Shanghai.

The message ran: "A Briton, Jock Crighton, was stopped by a Japanese sentry for smoking a cigarette on Commercial Whart this morning. Crighton extinguished the cigarette and apologised, whereupon the, sen-

ty slapped his face.

10

The message Wis handed NOT SO MILITARY here as Reuter's office in Shanghal on July 7he usually appears, Herr Adolf after passing the censor, and ran os Hitler is on his way to hear a far as the word "pologised" büt continued: "whereupon the sentry let what significance lies in in opera. Europe is wondering

him go."

BELIEVES JAPANESE WILL STRIVE TO AVOID GENUINE WAR Considers Tokyo Prepared For Any Real Challenge

Berlin, Aug. 2.

News of further clashes between Soviet and Japanese troops has evoked speculations with regard to the outcome of the incidents, but opinion generally is inclined to the view that neither Moscow nor Tokyo desire war, certainly not Tokyo, in view of the commitments in China.

The Nachtausgabe declares: "We do not believe Moscow is seeking to risk a genuine war, and we know Tokyo will do nothing to increase the tension." Soviet Russia is held responsible for the incidents which are used for an attack on Moscow by this paper.

al

disturbing factor for Japan, but not dangerous because The Berliner adds that the whole affair is the Japanese have never overlooked for a single moment Hitherto, the nets of censors have structions given to farmers to merely been traced to suppression of hasten, the harvesting and the the possibility that Moscow, at some time, might utilise the whole of telegrams or the cutting transportation of labour to rush Japan's engagement in China for sly attacks. out of certain passages. This is the new lines of fortification in the first recorded Incident of actual in-western areas. sertion of a different text by the censors.-Reuter.

CANAL COMPANY CONTRIBUTES

TO NEW ROAD

Cairo, Aug, 2.

It is reported that the Suez Canal Company has agreed to contribute 300,000 Egyptian pounds towards the cost of constructing a new military road from Port Said to Suez,

The estimated total cost of the rond, which is one of the four stipulated in the Anglo-Egyptian Treaty, will be 445,000 Egyptian pounds.

The road will run through Kantara and will entall the construction of four bridges, Reuter Special.

Big Narcotic

Haul Made

In Jerusalem

Jerusalem, Aug. 2.

The C.L.D. has just effected the largest haul yet recorded in heroin and cocaine, worth several thousands of pounds, which was found concealed in packages in the covers of 81 bibles sent from Paris.

It is understood at informa- Hon received from the French Surete led the local police to zelzo a quantity of books after delivery had been made to addressee from the post office Reuter...

An

BULLION MARKET REFLECTS DISTRUST

Nations Rush To Purchase Gold

Britain

Turns

Off Tap

London, Aug, 2. Any idea that Continental concerning the situation in Central Europe

nervousness

"Japan, however, has been holding. not a few of her best divisions in reserve for such eventualities.

"Marshal Bluccher

must

know this, and undoubtedly he will think. twice before embarking on further provocations which are fraught with serious consequences."—Reuter,

STOP PRESS

JAPANESE REPORT SUCCESS

Pelping, Aug. 3.

- would be allayed by recent developments was rudely shat- tered this morning, when an avalanche of gold-buying orders descended on the London bullion

A Japanese spokesman announced market.

that the Japanese encountered .500 'The demand for gold, which Chinese "remnants" at Pingyang, six emanated from all the principal mlies south-west of Chishih in south European countries, including Ger- Shansi on July 20. He said that the many, resulted in a. turnover at the ch

Chinese

were defeuted Axing price-exceeding £1,500,000.

and fled. south-west. The Japanese "captured It is noteworthy that while the some prisoners, and also counted metal required at fixing, they subse- British authorities supplied all of the nome corpses." quently turned off the tap. Never- of the Eighth Route Army attempted The spokesman said that 2,000 men theless further gold changed hands at to recapture: Taishin in north Shanst varying prices up to 141/10d. which on July 31. They wore "armed with was twopence above the day's official two

trench mortars quotations,

Coincidenlly, with the demand for

machine guns." gold, foreign exchanges reported a of Kuchslen had been warned, of on He reported that a Japanese unit widespread buying of dollars, which, attack and repulsed Communista in some were of the opinion, was secen- the course of three tuated by nervousness resulting from

ree skirmishes Chungchielkow, Changchlatsal, south-east of Tal- Chungchietsun and East.

The spokesman added that the Communists lost 020 men while

anese had begun a push towards the Japanese fast only one.

The spokesman said that the Jap- Puchow in south Shanal, but he hąd heard no details-United Press.

JAPANESE ENVY OF BRITAIN TEMPERED BY BUSINESS SENSE still fighting in the Japanese rear Viscount Tadashiro Inouye, member of the Japanese Domei's correspondent at Keljon

around Taihu and Tslenshan. "Heavy reports that the Korean

Army casualties have been inflicted on the House of Peers, has arrived in Hongkong from Formosa, authorities have announced

Japanese. thnt since the inception of the Changku front is steady. The

The

situation on the

on a lengthy tour. He plans to leave for Saigon and feng incident at 8 p.m. un August 2, still holding the line at Shaho, about

Chinese are French Indo-China on August 4. fatalities have three

been 17 kilometres south of Klulinng on and 27 soldiers, while the Nanchang Kiukiang Railway

In an interview with a reporter of the Telegraph, 87 soldiers have been wounded.

It is roughly estimated that the In a counter-offensive

Viscount Inouye discussed Anglo-Japanese relations. Soviet casualties include 250 dead Japanese at Shamoshars and Tung-

crack Chinese troops

troops replay were left on the battlefield.-United The latter withdrew and wounded, of which 70 bodies ingtao, points, south

"On the China question, we firmly believe that no of Kluklang. grounds exist for antagonism between Great Britain and to Klukiang. Batches of Japanese troops push ourselves," declared the Viscount. Ing toward Juichang, about 30 to-

the

prcess

Klukiang

tho

The

the latest developments in the Far READY TO HIT BACK

French authorities rigidly. Tokyo, Aug. 3. With more than 250 passengers

inaintained the franc rate by absorb Keljo despatches have aboard, including many foreigners, celved regarding yesterday's reported Central News.

metres west of Kiuklang, are check-that the welfare of all countries, no true of the Japanese as a nation we the purchases of gold and dollars,

"We base our optimism on the fact common knowledge that the same is ing all offerings in connection with been reed on the west bank of Sai Lake less than the welfare of China herself, envy you your material and physical Reuter. an international express, one of the air raid by Soviet machines over Jast by which foreigners can Korean territory. It is stated that evacuato Hankow, reached Kowloon the Soviets used lanks and station at 8.30 a.m. to-day from the planes in the attacks. temporary Chinese capital.

acro-

the

FAR EAST BONDS WEAKER

London, Aug. 2, The Stock Exchange holiday

ENVY AND ANTAGONISM limits. We realise our shortcomings market continued with the turn-

calls for co-operation in the develop ment of her vast resources."

Chinese Lines Intact

resources, our diplomacy should be tempered by business good sense to). conino this sentiment willin safo

to

Honkow, Aug. 3.

Western

and must needs bo "As a nation of unrivalled power in and world possessions, Great Britain is in emulate our

content

cousins

in over very small, but with a firm a position to command the respect I equipping ourselves for the demands undertone generally, maintained, ox. so very willingly accord her. And I which the future will make on us." Cept in the case of Far Eastern bonds, which weakened following reports of should like to say how much I

envy

"OPEN DOOR” POLICY Russo-Japanese frontier incidents. what appears on the havets” alde of

Commodities were quiet through- the effects of the Open Door policy in sympathy

Viscount Inouye commented upon out, and generally rather caster in Manchukuo, where he had been Street advices.

with

overnight Wall stationed for some time.

Foreign "British friends of mine in Tokyo with the dollar encountering wide. exchanges were nettve have often complained to me that spread Continental demand, nevesi- with the creation of the now state lating offelal intervention. and the introduction of the so-called Continent was also a keen buyer of

Tho "Open Door" polley British trade gold, paying up to 142 shillings.

(Continued on Pago 4.) Router Special,

The Japanese were patiently re- fraining from reprisals, it was stated. Though the date for the "last traini from Hankow" has not yet been fix- tanks are proving ineffective in

The reports add that the "enemy cd, the one which arrived to-day was marahy country, and the Japanese the last of three specials arranged forces are confident of their fighting for by the international committee ability. Army and navy planes are of foreign residents in Hankow.

The train left

ready against the worst emergency, on the south bank of the Yangise was and in character of her people. I say No change in the military situation bør balance sheet, both as a nation. Hankow station 10 on Sunday and came to position will be able to withstand

at and once they take the air no enemy reported during the day, according to this fully realising that only a fine Hongkong via the Canton loop line. them," United Pross

a Chinese military communique. dividing line can be drawn between RENEWED FIGHTING

envy and active antagonism, but as Chinese troops are said still to be between nations it is well to be frank Kowloon. There were barely a

Tokyo, Aug. 3. holding positions along the Lushan and to hold in check those sentiments Renewed fighting occurred yester-range of hills, running from the west so. apt to bring about calamitous on the platform day on the Soviet-Manchukuo border, bank of the Poyang Lake in the results in our relationships.

(Continued on Page 4.) vicinity of Bingtze Reuter,

"Therefore, although and it is

There was nothing

dramatic about the arrival of the ten-conch train at

dozen Europeans

(Continued on Page 4)

helen.

and

(Further Stop Press News on Page: 12.)

at

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