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Hongkong Telegraph.
FOUNDED 1881
三拜禮 辦三月八英港香
WEDNESDAY,
AUGUST 3, 1938. 日八初月七
SINGLE COPY 10 CENTS $30.00 PER ANNUM
1938 DUN LOP
SO YEARS OF GROWTH,
DUNLOP Fort
The Tyro with 2,000 Teeth
MILLION RUSSIANS BELIEVED ON MARCH
MOSCOW CONFIRMS Germany Blames Russia for Clashes
HEAVY CASUALTIES AT CHANGKUFENG
Soviet Leaders Conferring In Atmosphere of Tension;
May Face Choice of Peace or War
Moscow, Aug. 3.
A communique issued this morning states that all day long on Tuesday, Russians and Japanese fought at Changkufeng, with heavy casualties on both sides.
The communique warned that the "continuation of military action was pregnant with the most serious consequences, which would be considered inevitable."
It forecast serious consequences if "the Japanese continue aggression on Soviet territory."
The communique stated that artillery and aviation bombard- ment was employed, indicating that it was the biggest engagement so far at Changkufeng.
an
M. Josef Stalin conferred with defence leaders in atmosphere of reserve and watchfulness like times of crisis when governments fear they may be called definitely to choose between peace and war.
FOREIGN
EXPERTS
EXAMINE
CRISIS
Rivalry For Railway Cause Of Friction
Washington, Aug. 2.
Mr. Cordell Hull, Secretary of State, in a statement to the press, anid that the United States was following with special interest the Soviet-Japanese crisis, but he had not obtained information beyond the press re- |ports regarding the true nature if anyone had fully clarified the of the incident, and, he doubted
accurrencies.
He dealed that the United States had told the disputants that it hopes
for a peaceful settlement.
Neatral military experts character-
Ised the struggle as one for control
of the strategie railway linking the shortest route between the indus- trini area of Japan and Central Man- churia. They said that Changkufeng heights were within 10 miles of the railway connecting the Korean ports
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.
of Bushin, Seishtin and Yukl with the he usually appears, Herr Adolf NOT SO MILITARY here as Chinese Eastern Railway at Hailan
The Berliner adds that the whole affair is a Hitler is on his way to hear an and the capital of Manchukuo.
Tliese
experts observed that opera: Europe is wondering disturbing factor for Japan, but not dangerous because dominate artillery At Changkuteng could what significance lies in in the Japanese have never overlooked for a single moment-
the railway, hence the atractions given to farmers to Russians had presumably seized it in hasten the harvesting and the the possibility that Moscow, at some time, might utilise order to put the Japanese at a dis-transportation of labour to rush Japan's engagement in China for sly attacks.
advantage.United Press.
CHINESE SURROUND CHUNGYANG
Meanwhile there are strong indications that Russia's 1,000,000 troops in the Far East are moving up to the Manchukuo border.--Guerrillas Active Near
United Press.
MOVING TOWARDS FRONTIER
Peiping, Aug. 3. Reliable sources assert that the Japanese have received reports that Sheng Shih-tai (Governor of Sinkiang appointed by the Central Government and controlled by Soviet Russia) is moving troops eastward.
The movement is believed to have started three weeks ago.
Since Sinkiang troops are Soviet trained, the movement may account for the report that Soviet troops have been massing on the frontier of Outer and Inner Mongolia during the past week.-United Press.
Russians Cross Korean
Border
Tokyo, Aug. 3.
Į were left on the battlefeld.-United
Prcsa,
Ready To Hit Back
Tokyo, Aug. 3.
Kello despatches have been re- ceived regarding yesterday's reported,
BULLION MARKET REFLECTS DISTRUST
Nations Rush To Purchase Cold
Britain
Off
Turns Tap
London, Aug. 2.
Hangchow
new lines of fortification in the western areas.
Storms And Floods Rage Over Japan
Nine Known Dead On Shikoku Island
The
Slan. Aug. 3, The Chinese have completed their encirclement of the walled city of
Kobe, Aug. 3. Chungyang in west Shansi and are
Kobe Observatory reports atkicking the zily with great that rains flooded large tracts of violence, according to military ad- country around the Inland Sea on vlees.
Wednesday. The floods are subsid- Two hundred Japanese troops suf-ing, but the railway at Osaka is still |fered a serious defeat in the outskirts disrupted. An army of labourers is
of Chaocheng, north-east of Linfen, removing landslides. recently. Understimating the Chin The storm is sweeping the Inland ese strength around the city, the Sco, and on the island of Shikoku Japanese attacked and occupied two nine are, officially reported to be villages. The Chinese counter- dead; and: six injured.-United/Press." attacked and routed them with heavy losses-Central News.
GUERILLAS ACTIVE
Slaoshan, Cheklang, Aug. 3. Chinese guerillas, are again active in the Shanghal-Hangchow Rallway zone cast of Hangchow.
three
They recently dynamited steel bridges on the railroad near Wangtien station. ‚“. Japanese troops trying to drive them away were at- tacked and slain.
Big Narcotic Haul Made
"Japan, however, has been holding not a few of her best divisions in roserve for such eventualities.
"Marshal Bluether must know this, and undoubtedly he will think twice before embarking on further provocations which are fraught with serious consequences."--Reuter,
In Jerusalem STOP PRESS
Jerusalem. Aug. 2.
The C.I.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 that Informa- tion received from the French Surete led the local police to scize a quantity of books after delivery had been made to an
dresses from the post office.- Reuter.
JAPANESE ENVY OF BRITAIN TEMPERED BY BUSINESS SENSE
HANKOW HEAVILY BOMBED
Telegraphie Messupos Ordinance, 1894.
conuright ou United Praks Received.
3, 1.15 p.m.
Hankow, Aug. 3.
What is feared may be a very
serious bombing attack commenced at 10 nm. to-day.
On the night of July 31, about 20 Domei's correspondent at
Chinese "dare-to-die" men staged a
Viscount Tadashiro Inouye, member of the Japanese Any idea that Continental surprise raid on Haining. Inflicting House of Peers, has arrived in Hongkong from Formosa, August 3. 11:35 am, published August Keijo reports that Soviet air raid by Soviet munchines over nervousness concerning the severo
losses on the Japanese. Meanwhile, anotlier Chinese "unit planes, flying in formation, Korean territory. It is stated that situation
in Central Europe attacked Slashth, north-east of Hal-
on a lengthy tour. He plans to leave for Saigon and the Soviets used tanks and aero- crossed the Korcan border planes in the attacks.
would be allayed by recent ning on the Shanghal-Hankow Rall- French Indo-China on August 4. at 6 o'clock yesterday, hover-fraining from reprisals, it was stated. tered this morning, when an
The Japanese were patiently re-developments was rudely shat way-Central News. ed over Kojo and dropped bombs. The results of the marshy country, and the
tanks are proving ineffective in the descended on the London bullion Japanese market. raid are
not reported. United Press.
Diplomats Stand By
Tokyo, Aug. 3. The Japanese Foreign Office was open all last night, but it is understood no formal confer encea were hold,
The reports add that the "enemy avalanche of gold-buying orders Chinese Lines
forces are confident of their fighting
xing price exceeding £1,000,000.
Intact
Hankow, Aug. -3.
ability. Army and navy planes are The demand for gold, which rendy against the worst emergency, emanated from all the principal and once they take the air no enemy European countries, including Ger- position will be able to withstand many, resulted in a turnover at the No change in the mliltary situation them."-United Press.
on the south bank of the Yangtse was Renewed Fighting
It is noteworthy that while the reported during the day, according to British authorities supplied all of the a Chinese military communique.
Chinese troops are said stilt to be metal required at fixing, they subse Renowed fighting occurred yester-theless further, gold changed handa nt range of hills, running from the west quently furned off the top, Never holding positions along the Lushan but diplomats professed that they was twopence above the day's official vicinity of Singlze-Reuter. hoped for a settlement.
Tokyo, Aug. 3.
reports that the Korean Army The Manchukuoan Government at
quotations.
in the
In an interview with a reporter of the Telegraph, Viscount Inouye discussed Anglo-Japanese relations.
"On the China question, we firmly believe that grounds exist for antagonism between Great Britain and ourselves," declared the Viscount.
no
"We base our optimism on the fact | common knowledge that the same is that the welfare of all countries, no true of the Japanese as a nation we| less than the welfare of China herself, envy you your material and physical calls for co-operation in the develop resources, our diplomacy should be ment of, her vast resources.”
tempered by business good sense to confine this sentirent" within safe limits. We realise our shortcomings
Western cousins in
ENVY AND ANTAGONISM
to
world possessions, Cered the torpect I equipping ourselves for the demands
“As a nation of unrivalled power in emulate our
and must needs be content
a position to command the so very willingly accord her. And I which the future will make on us." should like to say how much I envy
"OPEN DOOR" POLICY
Viscount Inouye commented upon
Coincidently with the demand for SOVIET AMBASSADOR what appears on the assets side of Consul-General at
gold, foreign exchanges reported a widespread buying of dollars, which, some were of the opinion, was secon- the latest developments in the For tuated by nervousness resulting from
ENDS HOLIDAY
#
her balance sheet, both as a nation
Domel's correspondent at Kello
authorities have
Hanking has sharply protested to the| announced that ucting Soviet since the inception of the Changku Harbin, demanding a cessation of the
and in character of her people. I say the effects of the Open Door pelley in feng incident at 0 p.m. on August 2, affucks, and stating its reutliness, to the Japanese fatalities have been negotiate amicably when aggress
this fully realising that only a fine Manchukuo, where he had been titce officers and 27 soldiers, while censos.
London, Aug. 2. dividing Lino 07. soldlam have been wounded.
The Central Japan
Defence East,
It is announced in the press that envy and active twn between stalloned for some time.
active antagoniam, but as "Britlah felends of mine in Tokyo the Soviet Ambassador and Madame between nations it is well to be frank have often complained to me that Headquarters announced that the It is roughly estimated that the fight control started yesterday and maintained the frame rate By absorb-from the Soviet Union where they so apt to bring about calamitous and the introduction of the so-called The French authorities rigidly Malaky, have, returned to London and to hold in check those sentiments will the creation of the new state Soviet onsualties include 250 dead that they also proposed to practice ing all offerings in connection with have been on holiday--British Wire-results in our relationships. and wounded, of which 70 bodica
(Continued on Page 4)
"Open Door" policy, British | trade (Continued on Page 4.)
Therefore, although-and "{\"fe} (Continued on Page 4.).
leks,"
There were eighteen Japanese bom- bers overhead with ten pursuit planes guarding them and they dropped their londs in the direction of the alr
dele. However, the first batch of about 40 bombs obviously missed the. airfield and probably landed among elvilian houses and other institutions.
It is significant that there was no anti-aircraft fire from the city- United Press.
(Further Stop Press News On Page 12)