OVERNIGHT NEWS PAGE

Munitions Deal

London, July 3.

The Daily Herald and Daily Express pubila); reports to-day from their Singapore correspon- dents that large shipments of German shells, cartridges, explo- alves and revolvers for China recently arrived by the steamers“ Bertram Rickmers, · Hans Rick- mers, Haland Leverkusen, all from Hamburg, and were tran- shipped to a Chinese steamer which sailed for Rangoon,

The Daily Herald quotes a report that China and Germany recently signed a £5,000,000 barter agreement under which China supplies wolfram and bauxite And Germany supplies aeroplanes and munition———— Reuter.

Thetis Inquiry

STORY OF DISASTER IS TOLD

London, July 3.

Tuesday,' HONGKONG TELEGRAPH

July 4, 1939.

TIENTSIN RESTRICTIONS FURTHER TIGHTENED

To-Day's Silver Wedding

Japanese Detain British Engineer

The Japanese have tightened up restrictions against the.. British Concession In Tientsin and very little milk at for consumption and virtually no coal are entering the British. Сопсеняком,

It is understood that two Japanese armed motor-bonts are closely examining,all coul barges leaving the former Russian Concession, not letting them pass without defialte proof and a guarantee that the coal will not be taken. to the British Concession.

The Japaneso army spokesman announced that the gendarmes have detained Mr. E. T. Grifiths, British engineer of the Butterfield & Swire steamer Yochow for allegedly insulting the Japanese Army,

Anglo-Japanese negotiations on Tientsin are expected to open in Tokyo to-morrow.

The

Tientsin, July 3. Japanese appear. to have tightened up restrictions against the British Concession and very litte milk for consumption and vir- tually no cool are entering the Dri- tish Concession,

At the opening, of the public in- quiry into the tons of the Thelis, the Attorney General, Sir Donald Somer-hours, he vell, representing the Admiralty, said he proposed to call evidence in the following order:

Evidence of the survivors, who number four, regarding what hap- pened at the time of the disaster, the general procedure in regard to the trinis of vessels built under contract, previous trials and the history of the Thetis; the Davis Safety Apparatus and actual drill and instruction in connection with the Thetis, witnesses from the tug which accompanied the steps taken when the Thatis, submarine failed to come to tie sur~ face and vessels and aeroplanes were sent to search and asalst, the actions of the rescue vessels when the sub- marine was located, evidence froin

the Admiralty regarding the policy of effecting the salety of those ser- ving in submarines,

a

The Attorney General observed that he need not say what anxious, careful and repeated consideration has been given to the matter of the best method of saving life from submarine where possible, and the result of that polley was embodied In the structure of the Thells with two escape chambers to be used with the Davis Apparatus.

Sir Donald revealed that the Thetis was engaged in an acceptance trini prior to being taken over at the time of the disaster, and there was evi- dence which may or may not have importance that on the morning of June 1 there was some discussion as to her trim-Reuter.

Sir

Story Of Disaster

London, July 3.

Donald Somervell said

he

Thetis gave the signal she was pro- posing to dlve,

|

and

declared that although the Tokyo parley is designed in principle to settle the local issue in Tientsin, modification of the British

atlitude toward the current Sino-Japanezo situation would inevitably be the prerequisite for a satisfactory settle- ment of the lasue at stake.

The dairyninn, attempting to bring in 200 bottles of milk, told Reuter

The statement points out that the that, after queuing up for about live

was ordered to bring udjustment of the attitude of the Bri-

Japanese authorities would demand; large cans, unsen the bottles pour the milk into the cans.

th authorities concerned regarding The bottles were then examined. after

aitales of urgent necessity to the which he was ordered to refill the Japanese inlitary on the spot" in battles from the cans.

maintaining peaco and order and; their security.

mille turned sour in the terrine hent.

When the process was finished the:

Married twenty-five years ago in St. Joseph's Church, Hongkong, Mr. and Aira, A. W. Grimmitt are to-day celebrating their silver wed ding, and have been the recipients of shouls of congratulations. The above picture was specially taken for the "Telegraph" by "Josepho" to celebrate the event.

SERIOUS FIGHTING BREAKS OUT ON MONGOL BORDER:

HSINKING, July 3.

Pointing out that the Јарапске It is understood that from to-day military authorities in

Tokyo BTC two Japanese armed motor-boats are firmly and positively supporting the closely examining all cou! barges steps taken by the Japanese military leaving the former Russian Conces-on the spot" in enforcing the Bion, not letting them pass with- vigorous measures on the British out definite proof and also a guaran- Concession in accordance with thei THE Manchukuo-Outer: Mongol frontier is again torn by tee that the coal will not be taken urgent necessity for self-defence, the hostilities as Japanese, and Manchukuo forces started vigorous to the British Concession-Reuter. statement

regrets that British counter-attacks on Thursday night against the Soviet and Outer agencies have been propagating the Mongol forces along an extended front on the right bank of the Many Have No Milk

allegations that the Japanese were attempting to expel the whole of Bri tisi interests in China, or that the Japanese measures are also directed against the interests of other third Powers.-Domel,

Tientsin, July 3, The Japanese sentries inspection of the milk bound for the British Concession to-day resulted in the spoiling of so much thut n wide- spread check failed to reveal any regular customers who had received their daily supply.

Eventually British Milkary olli- cinis sent truck to the dairy for the military's usunt supply.--United

Pres.

Briton Detained

Tientsin, July 3, The Jupanese Army spokesman announced to-day that the gendarmes have detained Mr. E. T." Edwards, British engineer of the Butterfield

p.m.

DANZIG PUTSCH IS POSTPONED

The

Khalha Rver.

ese took control

of the 754-metre

Frontier dispatches indicate that led to the Japanese land and air of~ about 1,000 Soviet and Outer Mongol fucks with howitzers and anti-air |

troops, supported by arilllery pieces craft guns. and about 20 tanks, crossed the bor- der about 10 miles south-east of day accupied Painchaganobo. In pur- Two Japanese units at 2.30 a.m. to- Nomonhan on Thursday night and began to attack the Japanese and suit of the Outer Mongols, the Japan- Manchukuo positions.

Immediately responding to the height to the south of the Khalha Outer Mongol action, Japanese and River. Manchukuo artillery and machine- The Outer Mongol artillery gun units went into action and force entrenched on the bank of the Khalha fighting ensued.

River below the Fui terrain which have been bombarding the Japanese forces since yesterday morning, were counter-attacked by Japanese silenced artillery and completely down this moming-Domel.

Following several hours of heavy lightinut, the dispatches claim, the Soviet and Outer Mongol forces were repulsed.

London, July 3. British Press changed its & Swire steamer Yochow since his tactics on Monday morning. After Spirited engagements took place at arrest yesterday nt. to

on being screwed up to tension point olier points of the frontier and there Woodrow Wilson Street in the First over an alleged Naz) putsch on Sun-are indications that the hostilities will Special Area for allegedly insulting day, the newspapers now declare the the Japanese Army. The Japanese danger to be temporarily over "be- spokesmon said that Mr. Edwards.cause Germany changed her mind at had been drinking when he was the last moment."

restedi.

The tanks were slowly flooded and investigate the submarine was found Hght for-John Anderson word.

When the submarine was on trial she was without her complement of torpedoes and in order to trim the to Bood VCBEC it was not unusual the torpedo tubes.

to sce If the No. five and No. aix tubes were flooded. He opened the test cock of No, five torpedo tube and there was the test uo sign of water through

Lieutenant Woods deelded

cock, but as the door opened the water poured into the compartment. Woods was so certain of the safety cap on the tube that when the water poured in he thought there was some fracture.

Sir Donald Somervell observed from the rate the waler entered that there was an indication that the enp was in fact open.

oprend along an extended front.

1,000

men' Invaded

Some newspapers accuse Germany The Japanese have promised tu of starting the rumours to shatter

the allegation of Mr. Polish nerves but the Daily Expressja

of the Peking and says the British Secret Service could Tientsin Times that he was be trusted to prevent

a surprise stripped and slapped across the face, putsch-Trans-Ocean. -

intimated that he The spokesman did not belleve Mr. Anderson's story. Ambassador Reports

He said that he did not expect

London, July 3. the Tokyo negotiations will settle

Slr Howard Kennard, British Am-|^ the Anglo-Japanese issues involved

10 Warsaw, and Lord In the Tientsin crisis-United Preas, bassador

Halifax, Foreign Secretary, saw Mr. E. T. Grimths Held

Chamberlain, Premier, at 10 Downing off the Invaders. Tientsin, July 3.

Street to-day.

The British Consulate said thet the detained Engineer is named Ed- ward T. Grimths and not "Edwards" 115 nnnounced by the Japanese.— United Press,

Poiping Attitude

tim

Manchukuo

Major Battle Ragos

Three Divisions Attack

Heavy reinforcements are arriving.

Hsinking, July 3. The retreat of the Outer Mongol at the Outer Mongol frontier and the Soviet and Outer Mongol forces at and Soviet forces across the Khalha present-concentrated near the borderter was.cut off when mobile.units Manchukuo of the Japanese and are estimated at over 3,000.

The Asahi Shimbun reports that forces by 2 p.m. captured all strate- mixed cavalry, infantry and gle fordings points on the river bank, mechanised force including about

Up to noon to-day, the Japanese territory on Wednesday morning and and Manchukuo forces captured 30 advanced to within two kilometres of Soviet and Outer Mongol tanks.

It is understood that the Soviet the Japanese and Manchukub post- and Outer Mongol forces which tions.

crossed the border river prior to the opening of the Japanese and Man- Tanks Freely Used

chukuo counter-offensive on Sunday, The Japanese and Manchukuo Included about three divisions. forces counter-attacked und drove Domet

Between June 19 and 20, the Sir Howard reported on the general Japanese and Manchukue forces, situation in Poland.

(which engaged the Outer Mongai

Dairen, July 3. The Japanese Kwantung Army, forces to minor clashes near Laice Mr. Chamberlain was received in uir, captured an armoured car Japan's permanent lighting force in audience by the King at Buckingham loaded with a field-gun and o light Monchukuo, announces that the of

south of Palace this morning-Reuter Bulle-machine-gun, a truck equipped with fensive opened yesterday

on artillery-piece and & heavy Holombair against the Soviet-Mongol Pelping July 3,

machine-gun and ammunition, and a

forces which crossed the border from Urging prompt reply to its four- Crisis Believed Postponed

|wireless set.

Outer Mongolia early in June. point demand to the British Conces-

Paris; July 3.

About 1,000 Outer Mongol troops The fighting is at a scale greater The men escaped from the com- sion, the Provisional Governmeni

Following the passing of a quiet headed by 30 tanks cromed the bar-than any during the past few weeks.

amoured partment with dimculty and though yesterday afternoon Issued a state-

cars, artillery, they endeavoured to close the bulk-ment regarding Tientsin saying that week-end, which at one time was der on June 20 to engage the Japan-Tanks,

cavalry and planes are in action on have falled to thought might be eventful, the Press ese and Manchukuo forces. head, water entered the next com- Britais and France

will make On June 21, 300 Outer Mongols, both sides, in East foretells that Germany partment and as a result of the flood- realise the new situation

Immediate 110

putech in Danzig, led by 28 tanks, resumed the offen Japanese Acid despatches claim ing the ship hit bottom.

Asla.

wrllers emphasising

the feive against the Japanese and Man- that the enemy was driven back to smoke If the Concession authorities fail several

Juno the Khalkhingol River, some 20 So- with the four demands psychological effect of the firm stand chukuo forces, while to comply

Inbout 30 tanks and 150 troops viet tanks being captured about 13 It was four Impossible to blow the statement warns, the Chinese taken by Britain and France.

penetrated. Manchukuo territory, miles west of Nomonhan. Japanese any of the main tanks and the only authorities would be compelled to

M. Leon Blum,

writing in Le near Changchunmito,

artillery and aircraft are now TC- way to get the bow off the bottom take necessary measures, for a fun- Populaire, reminds readers that this On June 24, 30 tanks and 100 ported to be furiously bombarding appeared to be to get rid of the damental settlement.

entered the same region, the Outer Mangel positions on the water in the two flooded forward The Provisional Government re-sort of thing might be expected until troops

to recognise its the date fixed by Hitler for the final while on the afternoon of the same opposite bank. compartments.

A recent Soviet communique stated This could only be done if the rear administrative rights in North China. test which may be at the end of the day about: 50 tanks, under cover of

summer. "We must not let our field-guns, invaded Munchukuo. that Soviet-Mongol troops occupied door communicating with the sen-Domet,

nerves be worn out," he adds. During the severe fighting that en-positions along the established fron- could be closed.

Reuter Special.

sued, the Soviet and Outer Mangol ffer, which is disputed, about 12 miles forces reportedly fired about 2,000 east of

the Khalklingel River.-. Dental From Reme

Router, to shut the door... They had to pro- ceed via the forward Davis escape

Home, July 3. large number of bodies were left by Rapid Manchukuoan. Advance chamber, and this was a very com- been appointed delegates of the

A. denial has been issued by com-the invaders. Japanese military Authorities inf potent quarters that there was any The Japanese forces, in co-opera-

Undisclosed Pince, July 3. Tientsin to the Anglo-Japanese con-truth in the report that meeting tion with Manchukuo forces, opened Within 24 hours of the opening of versations. The two oficials are took place recently between Herr an offensive yesterday against the the offensive on Sunday, the Japanese dying from here to Tokyo to-morrow Hiller and Signor Mussolini on the Outer Mongol forces near Khalka and Manchukuo forces to-day com- morning-Domel.

German-Italian frontier. Trans-River, on the Manchukuo-Outer pleted encircling of the Outer Mongol

'The indicator buoys arki candles were released.

At the risk of their lives Lieutenants Woods and Chopman made attempts

pileated arrangerment involving the gravest riiks owing to the forward flooding.

After several aboclve attempts the scheme was abandoned as the men were unable to withstand the pres- sure and they then felt that nothing could be done without outside as- sistance..

quests the Powers

Army Representatives

Tientsin, July 3,

Lt. Col. Kimihide: Ohta and Gen darmerie Major Bellch Ohta have

Ocean.

Agenda Not Roady Yet

Tokyo, July 3.

sliella

Six tanks and armoured cars and a

Mongol border, the Kwantung Army Headquarters announced. The action is designed to clear up the southern

The date for apering the Anglo-QUARTERLY RETURNS sector of Holonball-Domet Japanese conversations in Tokyo on

It was arranged that a man or men should escape by the Davis apparatus the Tientsin Concession issue has not with a plan which could be com-

been fixed yet, according to the

municated to those on the surface upokesman

of the Foreign Office.

if the vessel was found. It was then The spokesman also said the agenda

10 p.m. and it was clear to those in had not been prepared. the submarine they had not been loented. Reuter-

The spokesman expected that the maiter of publicity on the coming talks would be decided upon between V.. D. M. A. GATHERING the representatives of the two parties.

to an all day conference of the V.

On Sunday, August 20, there will

D. M. A. at Stanley, commencing at

10,45 am and closing at 6.30 pan.

-Donici.

Defence Expenditure

Manchukuo Attack

Undisclosed Place, July 3. Doubled

At crack of dawn to-day, the 1 Japanese and Manchukuo forces London, July 2. launched a general offensive វាជ Quarterly revenue returns show Noronhan, which has lawlessly beeri the Soviet and Outer that defence expenditure at £123, occupied by 800,000 was nearly twice as much as Mongol forces since noveral days ago.

at the sarne period last year. Tho Nomonhan is situated total ordinary revenue for the quar-southwest of Hollar. ter amounted to £144,050,777 com- The vanguards of the Japanese pared with £131,880,830 a year ago, captured fringbrut, fvo miles south The total expendilure, less self- of Fui Terrola, balancing llema, was £301,137,240 Japanese aircraft bombarded. thờ

110 miles

Japanese Explanation

Tokyo, July 3. Commenting on the forthcoming The speakers will probably include Rev. H. A Wittenbach and Miss Anglo-Japanese conversations in compared with £234,940,001 in the Outer Mongol positions along the Rebecca Chen, as well as Dr. K. Tokyo," the spokesman of the War Beat quarter of the last financial year, Khalhp River.

once in a statement this evening' -British, Wireless,

Relchelt.

The Outer Mongol forces respond-

and Soviet forces near Nomoshan in the Holonbatr Steppe, field dispatches claim, a gen

The Outer Mongol and: Soviet forces were driven back as far as to the bank of the Khalha River by 3.30 p.m. on Sunday. The newly- constructed Mongol positions on Fui Height, the outpost of Nomonhan, were completely reduced by Japanese

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