FALSE PRETENCES
ALLEGED
Court Hears Evidence Of Military Contract
Evidence was continued by Mr. ), A. Duff before Mr. B. Edwards at the Central Magistracy yesterday, when hearing of two charges of obtaining money by false pretences against Edward Davies Sykes, of Sal Yeo Street, Kowloon, was resumed. The charges against Sykes alleged that he had obised $1,250 on March 7 by falsely pretending that a tender made by Reliance Motors had been accepted by the Military au- thorities, and obtained $1,000 by similar false pretences ou March 14.
The money.
according to the the document had to be returned prosecution, had been advanced to the same night. Sykes by Reliance Motors us com- "lle
the document, produced mission due to him if the contract which I found was one of the signed had been made by the Military nu- copies of our original reply to the therilles. Sykes had represented to questionnaire. On the reverse side. Messrs. W. A. 11. Duit and J. A. were tome typewritten notations Duft, Directors of Rellunce Motors, giving in very brief form what pur that he could secure a contruct for ported to be instructions to various them for the supply of trucks and departments ns to the manner in motor cors to the Militney, adding which contracts were to be issued. that through his contacts, he was ini a position to quote lower rates than other people could tender.
Mr. D. E. C. Marlon prosecuted on behnit of Reliance. Motors, and Mr. F. H. Loseby was for the defence.
Mr. J. A. Duff said that on March 2, he wrote a letter on Sykes' request to Col. Henderson, stated by Syzes to be in charge of military contraets, Sykes returned later that day and said everything was all right. Je added that he was anxious to obtain money in advance, ile was
no! given money that day. The follow- ing day Sykes came igal and again asked for an advance on his cum- mission, mentioning the sum of $2,000,
No Evidence of Contract "I and my brother declined to advance him money," continued Mr.¦ Duff, "pointing out that we had re- ceived no evidence that the contract had been awarded us. We told him to go at once to see about it. Sykes lett, saying he was going to see Col. Henderson. On his return, he said the contract would not be ready for a while, as a period of seven days had been reserved by the Military for the purpose of investigating our eredentials.
"On March 4, he said he had been
the
At this point, Mr Loseby objected to the statement, saying it was not evidence. The objection was over- ruled:
Continuing, Mr. Duff said: "These notations were in accordance with the information Sykes had previous- ly given to us verbally. The words Tender accepted' were on the docu- ment, and Department to make the necessary investigations. At the foul of the document, in the place stally reserved for signatures, was rubber stamp chop leadquarters China Comunid
"Conclusive Proof"
Saturday,
HONGKONG TELEGRAPH
OVERNIGHT NEWS PAGE
Lord Stanhope
· London, June 9.
The resignation of the First Lord of Admiralty, the Earl of Stanhope, Is forecast by the Daily Herald this morning. Lord Stanhope would resign his port and perhaps take up a lens m- portant post in the same Ministry Immediately after the conclusion of the Thetis Investigation. The paper, belleves that the resigna- tlon of the First Lord of the Admiralty would be lakeń as an opportunity for a reconstruction of the Cabinet-Trans-Ocean.
Reactions To Halifax Speech
London, June D. Lord Halifax's speech in the House of Lords is given prominence in the Press.
June 10,- 1939, CHINA CURRENCY WAR HEIGHTENS
The Chinese dollar rate Is still engaging the keenest attention, of officials in Chungking and Tokyo,
Reflecting the fluctuation in the Shanghai market, the Chinese currency declined in the New York Exchange on Thursday,
In Hongkong the yuan opened yesterday at 48 (1.c. H.K.$18 for every 100 yuan) and closed steady at 45.20 after reaching as low as 44.50 in the Chinese exchange.
- In Tokyo exchange bankers believe that the yuan will eventually be stabilised at a new level. A spokesman of the Finance Ministry in Tokyo is sceptical that Britain will totally withdraw its support from the Chinese currency.
Japanese banking circles point out that Shanghai's foreign trade has been gradually declining since the beginning of the year so that the adverse balance recently amount to £8,000,000.
A Chungking spokesman belleves that depreciation is partly due to heavy Japanese selling of the yuan in order to absorb foreign currency.
The Ministry of Finance is now studying the matter and will make a statement on it.
memorires to the
Powers
Tokyo, June 0. Commenting on the fluctuations in the Chinese currency rates following
TE I ofcinly confirmed that the suspension of inter-bank transactions
Office yesterday by the Hongkong and Shanghai Chinese Foreign Banking Corporation, a spokesman sent Identical notes in the form of of the Finance Ministry declares that aldes they disclose the precarious basis of through their respective Embassies to und Legations in China, and though legal temier and will serve the
de- correct the wrong ideas on the part tails, it is understood that the notes
ollicin circles refuse to divulge of third Powers.
concern the currency situation, par it is
Is with grave
ticularly In connection with the Japan is watching further develop establishment of the Hua Hsing Com- ments of the Chinese currency situa-mercial Bank in Shanghai---Reuter.
Shangang
concern
that
other
the
tion in
and their effects, in und Hongkong, Tientsin, places, the spokesman says.
He is sceptical, will totally with-
however, of opinion that Brita The Times in a leader says the draw its support from the Chinese speech may be found to be of ex-currency in view of its past attitude
toward the legal tender.
sacers of which
"From this, and from other docu-ceptional importance if its spirit is mentary evidence Sykes hurl furnish-
reelproented by Germany.
If its ed, I came to the conchision that the
met by nothing more than jibes and document was conclusive proof of
recent German our tender, and that Sykes had been
articles and speeches, even in the telling the truth regarding the cm- tract.
highest quarters had been so lament- ably full, it will stand as an excellent statement of the British case. should and response worthy of Its own careful moderation then it might well mark the start of a constructive approach to the differences now dividing the nations in Europe.
"On March 14, he came to see ine. saying he was ansious for further advances of money, as his wife was in delicate health, and expected to be confined soon. ile further sug- gested that I should help him open an account in the Underwriters' Bank, so that he would have money to cover any, emergency to his wife. He suggested the sum of $2,000.
"I declined to do this, but handed hins an advance of $1,000. The saine evening, he told me he had ascertain-
new
#
the
to the R.A.S.C. offices and had seened the contract would be delayed as our application, and the signature of
It had 10 be redrafted 19 the the General under the word 'hccept-
to use Miltary hund decided ed. Sykes emphatically stated that
contrnel was ours and
24gain!
ears. Sometime during the next asked for an advance. He mention tract would be delivered
two days, he told me that the con- by des- ed that we would in due
course receive a communication from the patch rider, accompanied by
Military Attorney Military which would be defulle confirmation that the contract had "On March 17, Sykes sald been awarded us. This communica-i contract would be delivered by tion, he said, had to do with cur noon the following day, bahen it registration as military contractors, not arrive as expected, res "On March 6, Sykes came to a sald the reason was the absence office bringing a memoranduri with Lo Wu Camp. Between March 20 all senior officers at a conference at him, which he said was a rough copy and 31, he gave a variety of excuses of the terms of condition contract. He told us the memoran- Receipts were received on March 28 of the for the non-delivery of the contract. dum had been copied for him by a from Sykes for the sums advanced. clerk. He again #sked for
ap Towards the beginning of April,
The News Chronicle, on the other hand, fears the speech may be mis- interpreted as a weakening of British policy and a return to the policy of appeasement. It adds that if it is su misinterpreted abroad it will leave the country in a worse position than before.
Although the true circumstances leading up to the steps taken by the Hongkong and Shanghai Banking Corporation are yet to be ascertained, it is possible that they are connected, with the alleged drain on the Anglo-
stabilisation fund. Chinese
It is not believable that they are motivated to reduce the Yen rates along with those of the legal tender because they are actually having only slight effecis on the yen exchange situation.
Mr.
Japanese Inquiries
Toshio Soma, Japanese Financial Commissioner In Shanghai, who has been staying in Tokyo, bas been ordered by the Government to proceed to Shanghai immediately and carry out inquiries into the currency situation there In connection lilh the Auctuations in the Chinese cur- rency rates,
Stabilisation Likely
The newspaper refers to the dras- tic measures being taken by the Nazis in Bohemia and Moravia, and says that the first condition of negotiation is that such a display of brute force shall cease. Until that Japanese exchange banks do not condition is observed, Britain must believe that the Chinese legal tender own re-will decline indefinitely but agree circles armament and build up an impregn- with the Finance Ministry push ahead with her able peace froni-Renier.
that it will eventually be stabilised at a new level.
Times Comment
advance, and we advanced him $500. Sykes said he hnd discovered that equally moderate tone, there would
In such an eventuality, the same circles point out, the 'closest attention will be engaged by the possible new currency policies of the Hongkong | and Shanghai Banking Corporation and the National Government.
Burma Railway
London, June 9. In a written reply to Lieut.- Col. Sir Arnold Wilson (Con.. Hitchin) In the House of Com- mons to-day. Licut.-Col. A. J. Muirhead, Parliamentary Under- Secretary of State for India and Hurma, said that the proposals for the railway connection be- tween Burma and Yunnan so far put before Lord Zetland have not been sufficiently, specific to enable a decision to be taken. All the proposals for such a connection, of course, will receive the fullest consideration by the military advisers of the British Government as well as the Gov- crnments India and Burma Renter.
Japan And The South Seas
Will Never Give Up Mandates
London. June 9. The Times says that if the speeches should be answered in an
Tokyo, June 9. The idea that the South Seas "On March 7, we received a ques- the contruct had been sent by air-
be real hope for a "rapprochement." tlonnaire from Colonel Henderson's
They suggest that restrictions will islands are mandated territory must mail to London and would be re- England did not prefer war to a office. Sykes was extremely pleased ceived back about April 20. My solution by conferences, but it was
possibly be imposed on the inter- be dispelled. for they form Japan's and said that was definite confirma- brother return from Manila on essential that in the case of differ- bank transactions, while an exchange "fe-line" in the South in name and
is likely to tion
Yuzuru that our
be reality, declared Captain tender had been April 5. On April 22, Sykes told me ences both sides should prove a will-control seteme accepted He said it was necessary the contract had been received tackingass to make concessions Re-organised.—
Okuma, IJ.N.R who returned here for the Military to have information from London, and said he expected pudiating the charge of an “encircle- Analyzing the circumstances lead-on Thursday after serving as the In order to register us as military that it would be delivered to me by ment" policy. The Times declares ing up to the discontinuation of the South Seas for a year and a half.
Japanese Naval resident officer in the contractors. We made several copies May 5.
rent differences did that although
did Control Fund selling, Japanese bank- of the answer to the questionnaire,
exist, England and France did not ing circles point out that Shanghal's Captain Okuma has newly been by any means contemplate obstruct-foreign trade has been gradually de-appointed chief of the first section of ing the normal and natural expan-clining since the beginning of the the Navy Department of the Imperial sion of German trade and German year so that the adverse balance General Headquarters. influence. The Independence of recently amounted to £8,000,000, small European States must, how-
Fully protected by the Japanese As the commercial
for authorities, the native Inhabitants in Yuan sales and foreign currency the southern islands are well aware rapidly increased the Chinese cur- of the real aspects of the Sino- rency stabilisation
fund established Japanese conflict,
so that some
handing two signed copies to Sykes for delivery to Colonel Henderson, and keeping one.on our files.
Advance Made
"Sykes asked for an advance of $1,500, but having given him $500 on the previous day, we decided to let him have $1,000. Sykes, how ever, wanted more, and after dis- cussing with my brother, we agreed to let him have $1,250.
"On the rough draft of the terms of contract Sykes had given us was
not
n clause requiring a bankers' guarantee of $50,000. He had
mentioned this, and we previously cabled to our Shanghai office the same day, requesting a remittance for this amount.
"On March 9, Sykes suggested that 150 motor drivers be employed, and
for a period of ten days, drivers
"Nothing happened on May 5, and from that date until May 5, we could not get in touch with Sykes. On May 10, however, we met him in Jimmy's Kitchen in Kowloon and he produced a document contained in an official envelope. We took passes-ever, not be destroyed in the course sien of this."
of this expansion.Trans-Ocean.
"Ready To Negotiate"
The hearing was adjourned to June 15 at 2.30 p.m.
PALESTINE BOMB OUTRAGES
Jerusalem, June 9. A new series of bomb assaults caus- being recruited. Ätter con-jing à dozen explosions in and about were siderable discussion had passed be- the
city's clectric transforming tween my brother and myself, we station and cutting off the current came to the conclusion that used supply of four elty districts, occurred cars would not, be suitable, The here yesterday. The bombs were next day, Sykes came to our office, upparently supplied with time-fuses. and we told him what conclusion we The police suspect Jews have had como to. He concurred with chosen tils method for celebrating the our view and stated that he would Kings birthday, which the Jews get in touch with Col. Henderson's and Arabs generally boycotted by office immediately. He later return-not hoisting flags nor granting school- ed and sald the Military had stated} children a day off, as has been a preference for new curs,
customary in the last 20 years.-- "Up to this date, the contruct had Trans-Ocean.
Women With Bomb
not been received. Sykes sald the contract had been referred to London by cable. As there were in- sufficient passenger cars in Hong
Jerusalem, June 0. A Jewish woman dressed in Mus- Rong to fulni a contract of this size, my brother and I thought that im clothes and carrying a basket Manila would be the logical source containing a time bomb was arrested of supply-and-on-March-11, my to-day-outside the main entrance of brother left for Manila to inspect the the Central Gaol in Jerusalem.
Apparently the Jewish woman was cors and make the necessary finan- clal, arrangements.
endeavouring to smuggle the bomb into the prison. To-day was visitors' day at the prison and a large number of Araba were expected to visit their relatives-Trans-Ocean,
Cars From Manila. "On March 13, I asked Sykes about the contract and pointed out that it was urgently required if the
Arab 'Stand Point contract was to be fulfilled in time, for it would take from 10 to 14 days
Cairo, June 0, to prepare the cars from Manila for
The Chairman of the Executive service. Sykes told me later the same day that the contract would be Committee of the Arab World Con- delivered within three days, saying gress, Alluba Pasha, has issued a that cabled confirmation had been statement defining the attitude of the Congress towards the British received from London.
About 0 o'clock that evening, Palestine proposals.
He describes the proposals con- Sykes telephoned me, naking me to meet him at the Kowloon Star tained in the White Paper as falling Ferry. I met him, and he took me far short of the Arab minimum de to the Railway Station refreshment munds. Hence the Congress would be room. He told me a friend in the 11-advised to accept them.
The British Government, he said, Military ofeen and managed to secure the document which would should endeavour to find a more prove to me conclusively that the satisfactory settlement of this pro contract was ours. He added that blem-Trans-Ocean,
While an attemp!
demand
to check
.of
at the end of March has allegedly. them volunteered for service on the London, June 9.
already been reduced considerably. front, Captain Okuma said. "Mr. Chamberlain and Lord Hali-
As political reasons, these circles fax are ready to negotiate with Ger-
Studies are being made to clange remind that the foreign currency ac- many on the German claims." is the quired by the Reformed Government the names of various islands in the keynute struck by the British press and the Japanese cotton spinners in South Seas, Captain Okuma revealed,
greatly this morning in commenting on Mr. China recently
increased. and renaming in the Japanese style before
be Chamberlain's speech
in the effected the The Reformed Government bought will probably House of Commons and Lord Hall-foreign currency by selling legal near future. fax's speech in the House of Lords,
He stressed the significance of the hile Japanese cotton interests Stender while
1,400 islets and reefs, in national de- the fence, economic developments in the
of various kinds of re.. manipulations is seen it is also be ment leved passible that the inauguration sources in the tropical zone. of the Hua Hsing Commercial Bank Declaring that their importance has furnished an indirect factor in increased in connection with the suspension of Control Fund sales. China Affair, Captain Okuma point- ed out that recently it became pos- sible in those islands to grow oranges. bot
fibres and perfumery
Not to speak of the gathering of to the depreciation of the Chinese phosphate, bauxite and gold mines tegal tender in Shanghai.
were recently discovered at New shares in the Tokyo Stock Ponape, Yap and other islands. The Exchange which usually are regarded prospect of developing nickle minçs as the barometer of stock markets in is also bright,
who declared yesterday Japanese ond Chinese currency Southern Pacife and the develop
the
as well as on the efforts being made acquired exchange through the im-southern Islands, which include some by Sir John Simon and the Secre- port of India cotton. tary of Overseas Tratic, Mr. R. S. Hudson, evening in n speech before the Bri- tish industrialists that a prosperous and satisfied Germany could become one of England's best customers.
In speaking of the "new peace offensive," the press also stresses Str made in a John Simon's remarks Epeech delivered at Yarmouth yes- terday which concluded that the aim of the British policy is "live and let live."-Trans-Ocean.
German Criticism
Berlin, June 0.
Tokyo Stocks Higher The Stock Market to-day showed considerable fluctuations us a sequel
Palao,
Commenting in headlines attached Japan, dropped two yen on Thurs- The recent rise in the price of
to news summaries of the speeches day
Mr. Chamberlain
of
and Lord be Halifax, German newspapers to-day
say: "British manoeuvres to distract at
which is
understood to copra has done much in bettering the
Ho
yen. bet Pressed the belief that in--
to the alleged living conditions among the Islanders, traceable
of the Anglo-Japanese who during the past year donated Tientsin in
and
Shanghal. about 100,000 yen toward the national The afternoon session opened with defence fund... attention Peaceful words by Chem- berlain and Halifax-Their actions sharp gains in the new shares owing give them the lie "Fine words to the slump of the Chinese dollars.
of the regular air service Japan and the South Seas is mixed with Insults-Hallfax again The highest gain reached 25 meddles in other peoples affairs" Other shares registered one to three accelerating greatly the cultural de-
old trick Intrigues against Axis," yen gains, while some yet recorded velopments in the native Islands, "No word about encirclement-Not Josses, a single proposition or suggestion."
United Frest.-...
Outcomo Of Doubts
Berlin, June 9.
Explain To Cabinet
Referring to conditions in general the Southern Pacific, Captain Okumu sold that the overtens Chi- The Finance Minister, Mr. Sotaro nese in Borneo and "Sumatra ore Ishiwata, at to-day's regular session, allegedly gradually losing enthusiasm of the Cabinet, explained the Govern- for China's campaign, of resistance, Lord Halifax's speech is the out-ment's attitude toward the currency following the extension of Japanese come of the "doubls which certain fluctuations in Shanghai and sought military operations to South China
Domei. Powers are beginning to feel regard his colleagues' understanding as to ing the non-aggression front" is the the temporary policy of maintaining view expressed by authoritative cir
a watchful waling pending clarifica cles here."
tion of the circumstances leading up A spokesman said, "A number of to the heavy slump of the legal
tender-Doinel. Powers feel that the non-aggression policy has an ambiguous aspect, and undoubtedly Lord Halifax thought it wise to let Britain's desire for peace enlarge in a brighter light. In short he made an attempt to revalue the word 'nence."-Reuter.
..
Noto To Powers
Chungking, June 0. Reports on the Shanghai market conditions are not published-in-the Chinese Press.
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