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The

FINAL EDITION

Coury

Hongkong Telegraph

Telephone GD101.

FOUNDED işt No. 15712

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PE FARBY THURSDAY, DECEMBER 29, 1938. BAWA PER ANNUEL

MUSSOLINI TO DEMAND

JAPANESE

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WHITEAWAY'S

KWANGTUNG BATTLE:

LIBERAL JAPANESE WITHDRAW

4 MAJOR CONCESSIONS LEADERS FROM TSENGSHING

Britain Will Be Asked

To Help

ROME, Dec. 29. SOURCES CLOSED to French diplomatic! circles here declare that Signor. Mussolini in-

tends to ask Mr. Neville

Chamberlain, during

the latter's visit to Rome next month, to use his good offices to obtain four major concessions from France.

are

These concessions designed to satisfy Italy's "national aspirations." Only their concession will prevent the possibility of a Franco-Italian conflict.

Italy's four-point demands are! believed to be:

a wide measure of autonomy for!

Tunisia; Italians refiding

permission for Hallans to emle rate freely to Tunisia, and to buy and exploit lands which have not bern cultivated;

erasion by France to Italy of the part of Djibouti and the sale to Italy of French shares in the Djibouti-Addis Ababa rallway; and

active Italian participation in the management of the Suez Canal.

It is reliably learned from London, however, that Mr. Chamberlain will make no attempt to mediate in the Franco-Italian dispute.

Great Britain, it is believed cer- tain, will not press France to make any concessions to Italy,

FRENCH FOSITION MADE CLEAR

London, Dee, 28.

Reliable sources say that, as a re-ļ

LIEUT. J. B. COX, Executive Officer of H.M.S. Cockchafer, pl.otographed with Japanese Army oflicens behind the Japanese lines on 'Lushon after he had escorted the 41 foreigners stranded in Kuling safely through the Chinese and Japanese Boes,

WANG CHING-WEI COMING TO COLONY

Wang

CONFIRMATION OF REPORTS that Mr. Ching-wei, Chairman of the Central Political Council, is en route to Hongkong was given by Mr. Chen Kung-po, former Minister of Industry in the Chinese Government, when he arrived from Hanoi by Air France

sult of the recent exchange of French plane this morning. and British views, the French Gov- ernment has made It quite clear that) they intended to deal directly with the Italians.

It is understood that Britain has fully approved.

Mr. Chen Kung-po was met at Kai Tack Airport by several rominent Chinese citizens of Hongkong.

interview,

he

JAPANESE

AIR ACTIVITY

IN PURGE

VIOLATION OP the Peace Maintenance Law hns cost five leaders of the Popular Front in Japan their freedom. necording to a "Domel" message this morning.

They include Kin Yamakawa, the noted critic. Japan's purge of its leading liberals has even

extended

to the Diet, and two members of the House of Representatives, Kanji Kutoh and Hisao Kuroda, have been indicted.

They are alleged to have Intrigued with the Proletarian Party,

CHUNGKING, Dec. 29.

WHILE GENERAL SUGIYAMA, Japanese War Chief in Shanghal, was telling foreign war correspon- dents that fighting in China had ended, Japanese soldiers in Kwangtung were withdrawing across the Tseng River from Tsengshing, which they have occupied since early in November.

NAZIS FRONT-PAGE

'BRUTAL' BRITISH

ON ORDERS from Dr. Goebbels, Minister of Pro- paganda, who, London newspapers state, first con-. sulted Hitler, the German Press has launched. a unanimous and bitter attack jon British administration

of colonies and mandates.

Screaming headlines brand British measures in the Neur and Middle East as "inhuman," "Barbarous," "brutal," and "bloody," while editorials de- mand that Britain should not interfere in German affairs.

Berlin newspapers lead the attack, i

is also dis- but the propaganda seminsted to the far corners of the world, arsily by radio propaganda from the German short-wave stations jat Zeesen, and secondly by German

news agencies.

Last Saturday the "Telegraph" re- vealed a typical message received for publication from the Trans-Octan News Agency.

In this instance the allegations proved so stunderous that the British War Office officially issued a denial.

being emphatically slated that there was no truth whatever in the allegations.

This morning, the Trans-Octar Agency turned its attention to Cyprus, where "great dissatisfac- tion is being felt among the in habitants with British administra- Hou."

populace resents Brilleh ad- savouring ministrative methods as unpleasantly of dictatorship," is one

Lokal-Anzeiger

Uraber-Empörung über Palästina Terror

*Mollege orgen sås brittich LA

Bongerdesher Frauer Land im Elena

a reproduction of Abore is headlines from the Berlin news- paper Lukat

The Anzeiger. article they are based on says that despite England's use of crmed forev, the Arab "freedom mpement is paining ground,

and uses these phrases-"Many examples of almost unbelievable brutality. If the House of Commons still concerns itself about the Jews in Germany, thea possibly the Reichstag might busy itself with the horrors in Palestine.

SILENCE FOLLOWS

S.O.S. RADIO APPEAL

WARSAW, Dec. 29.

"S.O.S... S.0.5.. We Are Going Down." From the icy cold waters of the Baltic Sea, this message in Morse code, sent from the German freighter Funkerbrunt at 10 o'clock last night climaxed a drama of six hours.

JAPANESE

TRADE DROPS

TOKYO. Dec. 29.

Shortly before dusk the freighter, en route to Germany from Sweden, apparently struck; an ice-berg,

The S.OS signal, the three dots, thres dashes and three dots of the

Ship to coast traffic for a radius

The Chinese are now in control of the East Bank of the river, and, it is believed, will shortly occupy Tseng- shing.

On the West River the Japanese are maintaining their positions in the vicinity of Samshui only by the use of artillery, which has 50 far prevented Chinese attempts to cross the River,

Meanwhile, on the northern front, Chinese vanguards are now at Nantsinkang, only two miles from Yoyang.

The Chinese are facing the depleted Japanese garrison at Yoyang across the Yung Lake, and are exerting considerable Fressure.

Feeler thrusts by Japanese troops on the north bank of the Slu River during the last two days have met with some success. On Tuesday the Japanese burned down all the villages around Kluisin on the north bank and heavily bombarded the Chinese post- Llons across the river.

On Wednesday morning they resumed the bombardment. More than 100 shells were fired and under the barrage a party of about 100 Japanese tried to Cross the river. They were repelled by the Chinese defenders on the south bank.

Juponese reports claim that the Japanese mupping-up campaign in the mountainous area between the Fen River and the Yellow River is making steady progress,

The Japanese precs are pushing their sice from three directions, north, east and south.

Three detachments of Japantse traps started from Sangling on the west bank of the Fan River and advancing westward along the high- (Continued on Page 4.)

LATEST

£250 Million Deficit Looms

of the gemi contained in the German JAPAN IS FEELING the pinch international Morse code known and agency's message.

of economic boycott through dreaded by mariners of every mari- "Trans-Ocean, continuing. draws attention to the "press ag" In out the world, which has result-time country, was immediately flash- Cyprus, which is "pariicularly ed in her exports dropping to

ed out by the German operater. exclusive Consequently Mr. Chamberlain Is

resented" by the populacel

The German Agency quotes the new low levels, and of financial expected to concentrate on securing nformed the "Telegraph" that he withdrawal of Italian froops from ad come to Hongkong to confer with INTENSE AERIAL activity London "Daily Telegraph as mating atringency at home, which has Spain, which the British consider is Mr. Wang Ching-wel whom, he the only means of putting Franco- evented, was already en route to the Japanese Army and Naval air- ating of any expression of public

continues to be shown by that anti-British feeling is growing also considerably decreased her of hundreds of miles was suspended, year 1938 has reached 2482,469.985,

throughout Cyprus as a result of the imports. Itallan, as well as Anglo-Italian re- Colony by steamer. lations on a solid basis.

Mr. Lum Be-sung, former Editor craft, according to messages opinion. of the Central Daily News, which is

received in Hongkong this Meanwhile, these are some of the owned by Mr. Wang, is also in Hongkong to meet the Chairman of morning.

FRENCH TROOPS MOVE

Paris, Dec. 28. The Minister of Colonies has con- the C.P.C., Mr. Chen revealed.

"Domel reports that units of the Armed the fact that a battalion of Mr. Chen refused to comment on Army air force atacked Tuning and Senegalese colonial infantry has been reports that there had been differ Kitsien, in south-western Shansi, ordered to sail for Djibouti from Mar-ences between Generalissimo Chlung sellies, next Friday.

Kul-shek and Mr. Wang Ching-wei Yesterday morning, At present, a battalion is slightly "I have not seen Mr. Wang Ching-leations" In the districts were violent-- less than 1,000 troops-United Press, wei since December 2, und am not înly bombed, the message states,

a position to say what has happened," Two squadrons of Japanese war-

Girl's New

Nose Made From Rib

WHE

Belfast. THEN-bandages are removed from her face, 10-years-old Josephine Glasser, who is in the Mater Hospital here, will look into a mirror to

her new nose-made of a piece of her rib and of skin from her arm.

sec

WAR

he said.

Mr. Chen refused to discuss any

PROCEEDING TO EUROPE?

"Chines fort-

planes also appeared over Shihlu and aisten, the message states. Bombs

(Continued on Page 7)

Puppets Will Boycott Jews

During the period from January 1 to December 25, imports of raw cotton decreased in value by 423 the million yen compared with corresponding period last year.

Imports of raw wool have de- creased in value by 202,000,000 yen. puip by 73,000,000 yen, rubber by 49,000,000 yen and tuber by 30,000,- 100 yen.

In order that there should be no radio interference with the stricken vessel's enlls for help and the responses from near-by rescuers.

-

But rescue came too late. A 10 o'gizek, as German, Swedish and other ships were steaming to the assistance of the Funkerbrunt, came the last drumatic cry-"SOS.. S.OS.... We Are Going Down."

Then silence.

It is hoped that the crew of 10 were able to take to lifeboats.

The vessel In not registered at

rumours concerning Wang Ching-wel.I were dropped on the snow-covered]by the Japanese are taking steps to rayon fabrics by 39,000,000 yen und Lloyds./nited Prcs3.

on

"I understand, Mr. Wang is pro ceeding from Hongkong to Europe Chinese Government. I would not take too much noiice of any rumours that are floating about," he said.

mission for the

Mr. Chen Kung-po Is one of the best known younger leaders of the Kuomintang Left Wing, and has given unswerving loyalty to Generalissimo Chiang Kai-shek and the nation.

Last year he donated $4,117 his total salary for eight months to swell China's war chest.

of the He is General Manager Shanghinal Commercial Savings Bank,!

Exports show a decrease in cotton TIENTSIN, Dec. 20.

piced goods of 187,000,000 yen, raw Chinese administrations sponsored it has decreased by 44,000,000 yen, prevent Jews from entering Shang- rayon yarn by 30,000,000 yen. [hal and other parts of China, accord- aircraft simultaneously launched an aerial attack on Liuchowing to the Yung Pao, Japanese Army

organ. in central Kwangsi, according to a Japanese Naval communique,

towns.

Naval

"Most Jews nre Communists, and Intense anti-aircraft Are greeted must not be allowed into China," the the ralders, the message states. report states-United Press.

WOLVES ATTACK TOWN

4 Peasants Die In Strange War

has just

ONE OF THE MOST amazing battles in history been fought in Brusturi, a village in Rumania, according to aj Reuter Special message,

wolves.

Although Japan's trade with other i countries has decreased enormourly, her decrease in Importa has outweigh- ed her decrease in exports to such an extent that, for the first time in 20 years, she has a favourable trade balance. Exports exceed inports by $50,000,000 yen, which compares with An unfavourable trade balance of last

2640,000,000 yen that year.

City's Freedom For Duke of Kent

- It

London, Dec. 28. was offlckily announced in

Ten Degrees Variation In Temperature

There was a variation of ten dow grees in the temperature during the past 24 hours, ending at 10 o'clock this morning, the maximum belog 45, and the minimum 55.

LONDON, Dec. 29. ALTHOUGH REVENUE for the

which is £12,647,332 bigher than the corresponding period fast year Britain is facing a deflett of at least £250,000,000 for the current year as a result of increased defence expendi. ture from revenda

085.

Revenue, which totals £482,459,- the corresponding period of last year. compared with £469,813,053 in is already exceeded by expenditure by £242,497,312. The total expendi- ture is £724,957,297, compared with £037,301,814 In the corresponding period lask

утаг

increase £87.595.482.

Most of the Increased revenue comes from Income taxation which Jing yielded £83,704,000, nearly £10,- 400,000 rucs than at the same period Tast year.--British Wireless.

Soo Back Page For Further Late Nows

Stock Market Quiet But Steady

WON

London, Dec. 28. The London Stock Market generally quiet, although gilt-edged securities encountered some provin clui demand, while gold minings were supported from Paris.

Her nose was disfigured 10 years and gained world-wide fame when

At 10 am, to-day the thermometer

as 68, with humidity Industrials wero Irregular npart ago,

when she had a fall.

he concluded a Sino-American silver-

won a low

were registering 54 per cent.

from iren and! steel which For years she sorrowed about her purchasing agreement on behalf of appearance and took no part in the the National Government with Mr.

Oils used at the Londonderry to-day that the Duke report Isturd

The Royal Observatory weather generally stronger. gaielles of her friends-avoided Henry Morgenthau, U.S. Secretary of

this morning sinted outset on Continental offerings, und parties, dances, and plenies.

the Treasury, in 1930.

The village was attacked yesterday no less than four peasants were killed and Duchess of Kent will visit the that the risti-cyclone retains its in-subsequently called on demand from

city on March 9, when the freedom At last a family conference Lost December, Mr. Chen led the morning by several packs of famished in the encounter. held and the operation to give her a "secret mission" party which flew by

When the packs dispersed, they left of the elty will be conferred on the tensity and has extended southward the same quarter.

Commo:liucs and eastward, covering China, Indo-

wire quict, the holl- now nose was arranged.

The entire populace of the village fourteen bodies on the blood-stained Duke.-Driish Wireless. Pan-American Airways Cilpper from

Chiun, southern Japan, and the day on the markets continubg EXC and trampled snow in the village

Foreign The operation has been successful stongkang to San Francisco to nego- fought for several hours with

quiet neighbouring sens Pressure con-)

exchanges Her aunt, Mrs. Elizabeth Gargarn, tiate on behalf of China for a loan. picks and spades. Even knives were street. Bid:

aftermath of this The

visit in used by some of the villagers when

American President Line an.nues to be relatively low ever the apart from forward dollars, the pre- niums on which widmed owing to The wolves are in such a starving nounces that services to Shanghai wiji East Indies.

extension of bill accounts Into "A woman thinks of her appear- believed to have been the decision of the wolves sprang to close quarters.

Women and children as well as condition that they are fighting each bo resumed by the President Pierce, ance first, last and all the time. Now, the United States, inst month, to

Local the which leaves Ban Francisco on Decem

Wall Street was forecast i<:- North-east the New Year. 4 preliminary credit uf men battled with the famished dogs. other in cannibalistic battle in we hope, Josle will be able to look grant

steady.Iteuter Special. winda, fresh; fair. in the mirror and feel happy." U.S.$20,000,000 to China.

Remarkable though it may seem, mountains,

The

Der 30:

on

were

Page 25Page 26

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