Saturday,

'HONGKONG TELEGRAPH

July 8, 1939.

OVERNIGHT

NEWS PAGE

Australia's Budget

London, July 7.

Australia has a surplus of £627,000 for the year ended June 30. This was due to

the abandonment of National

Insurance and reduction of expenditure in public works, despite a hugely increased

armament: programmo.****

Reuter Bulletia.

Border War

SOVIET'S COUNTER DRIVE

More Extravagent Japanese Claims

Mocow, July 7. A Suviet-Outer Mongolian counter offensive to throw bout the formu- tlons of Japanese and Manchukunan forces from the position to which they advanced in the offensive on Monday, in reported by the omelal Soviet news uency, Tess.

#

Japanese Warned To Be Be like me- Ready For World Crisis

SUDDEN DEATH OF

U.S. NAVY SECRETARY

New York, July 7,

The death has occurred of Mr. Chaude A. Swanson, United States Navy Secretary, who has held this past since soon after Mr. Franklin Roosevelt was first elected President in 1932United Press -

Dlerin' Mountain Home

San Francisco, July 7. Mr. Claude Swanson died at Q o'clock this morning of his camp In the Blue Ridge Mountaing in his home county of Virginia.

President Roosevelt has issued an announcement expressing his pro- found sorrow-United Press.

Announced At White Houto. Washington, July 7. The Orst news of Mr. Swanson's death, which occurred at his Rupidur River camp,

came from the White

President Hiotise, when

Roosevelt made a statement But he joined the entire country in mourning, for one whose many years of faithful service for the nation entieared him to all. President Roosevelt added. "I per- sonnlly mour! the passing of H stendust und intimate friend of more than a quarter of a century." Mr. Swanson had been many months.Reuter.

for

"Big Navy" Advocate Claude A. Swanson, who became Secretary of the Navy with the advent of the Roosevelt Administra tion, won his gabinet spurs as a "big

intently seenunt of the fron- tier elashes during the last few days, Į navý" advocate, Tass declares that the Japanese Man. For years prior to his appointment churian troops, considerably streng- as Secretary he had adviented an thened, made an offensive uti Mon-American navy "second to none" in, day in the region south-east of the the world in strength and efficiency, Lake of Buinor.

He lived to see his advocacy will on the way toward attainment.

He came to his post at the head of Die Navy Department when

The fensive was carried as far as the western bank of the Chalcist River but the Soviet Cuter Mongolian troops succeeded in throwing back The enemy wh suffered many casual- ties and was compelled to leave many dead behind.

post-

Only in the north-western Bon of the front, were Japanese to- fantry detachments able, with the suport of numerour tanks,, to en- trench themselves on the western bank of the Chalcha River.

In the counter-offensive, the St. f viet Ouler Mongolian troops und been able, however, to dislodge the enemy, so that there was now muí a single unit of Japanese Manchurian forces left on the west side of the Chalcha River-Trans-Ocean,"

N.C.O. Sots A Record

ninar, July 7. Non-Commissioned Officer Hiro. michi Shinohara of the Japanese frontier air patrol is credited with Outer Mongol planes, in the air duels near the border during the past few days.

the

MR. CLAUDE SWANSON

service, or were unmissioned In

and scores of nearing completion,

thers were well on the way toward completion.

Swanson was nearing his objective navy was at low chi. The Wasting-of being Secretary of the largest and to Naval Conference had resulted most efficient navy the United States

in serapping large number of has ever had. American warships under construe-

tion and a long "building holiday" Was Veteran In Congress

in the construction of capital ships.

Tientsin Affair: Griffiths Tortured

Spenking in Tokyo, the Premier, Bazon Hiranuma, said that the agenda at, the coming Anglo-Japanese talks will bo Umited to questions affecting the Tientsin Concession, but a real settlement of issues could never be attained unless negotiations were conducted on the basis of the real significance of the construction by Japan of a new order in East Asia.

The War Minister, General Itagaki, warned the Japanese people that "the nation must be ready to face a possible world crisle."

Yesterday the Japanese authorities in Tientsin released Mr. E. T. Griffiths, the British engineer of the B. & S. steamer Yochow.

London circles belleve that the Tokyo conference will be a 'protracted affair. Japan desires the first two days of the conference to be devoted to discussion of general topics, after which the Japanese will present concrete demands,

Tokyo, July 7. on Sunday night and scented some- Empliasising that Japan's policles thing wrong, in a room with Japan- on home and foreign affairs are bas-ese officers, who immediately started ed on morality, Baron Biranuma said questioning him in that this was witnessed in Japan's language, with which

the Japanese he was not participation in the World War on Lamlar. Later they twisted his the side of the Allies. Japan Join- thumbs and Ongers, forcing him to the World War in respect for algo a statement which is believed to the Anglo-Japanese Alliance whose have been provisions, however, did not bind Press, Japan to join in the war in Europe

L'd

on the British side.

his confession-United

Que Tai-chi Reassured

The actions taken, by Britain since the World War have been

London, July 7. such as

The Chinese Ambussador, Dr. Que have caused dissatisfaction to Japan Tai-chi, saw Lord Halifax last even- un many occasions. Anglo-Japanese ing when they discussed the situation en-operation will be difficult, there-Tientsin, among other matters. fore, unless this sentiment is amend- ed, Baron Hirunuma concluded.— Dumet,

Delegates Arrivo

It is understood that it was made quite plain to the Ambassador that the Brish Government has no in- tention to compromising upon any major issues which may be raised at the Tokyo conférence-Reuter.

Electrified Barricado

Tokyo, July, 7. The four representatives of the Japanese military authorities "on the spot" including Major-General Akira Muto, Colonel Saburo Kawamura,

Tientsin, July 7, Lt.-Cul. Kimihide Olita, and Major| Foreigners coming into the British Seiichi Ohta,.arrived at Tokyo from concession to-day reported that an- North China this morning.

other Chinese was electroculed inst Taking-up their quarters at the pight, They said the body Wats

He was born March 28, 1882, Military Club, the military delegates lying near the place where the first The London Naval Conference of Swansonville, V. Ite entered the to the Anglo-Japanese parley told 3 viction was killed, a few hundred 1930 had limited the number and New Deal Cabinet after 10 years of newspaper men that, they would re-yards from the U.S. Marine Barri- size of cruisers and other ships which political experience. It included ser-present not only the Japanese Army endes,

until

nation.

.

out

They said the man was undoubt electrocule-United Press.

Report To Berlin

the navy mhh! have. The economy vire in the 53rd, 54th, 55th, 50th, "on the spot" but also the whole programme of the Coolidge anit 57th, 58th and 50th Congresses. Hoover Administrations had reducet He was Governor of Virginia from

Major-General Muto. said that it warship construction to a level fr 1000 to 1010.

even that authorised in the below

In that year he was appointed to was due to the existence of foreign the unexpired term in the Senate settlements in the vicinity that the val treaties. When Swanson took over

Berlin, July 7. the used by the death of Sen. George recent hostilities in Shanghai were the Navy Department | Warwick Daniel.

Japan's measures in Tientsin, de- From then

protracted for a long time. direction of

Major-General Muto pointed

clared the Japanese conunander warship construction was almost nt he entered the Cabinet he was cu

that incendiarism alone has been Voelkischer Beobachter

there, General standstill, and naval officera asserted tinuously re-elected to the Senate.

Hammo, tu The the Navy had been reduced Swanson. asked by reporters con-

committed 130 or 140 times in Tic dent, are no longer concerned with in- to

correspon second or third rate in comparison cerning his polities, replied invariista, while attempts to wreck rail- with the British and Japanese fleets, obly, Liberal Democrat. Nothing ways and pro-Japanese personalities

dividuat questions but are designed amounted to over 200. He added Many of the warships then in com- else." mission were being operated on a

changes that have taken place in the have never He attended Swansonville's pubite that Japanese soldiers "routing" basis-that is, held in port schools until he was 18.

world situation." Then he stripped foreigners naked,

Even after the isolation of the Bri- Afterward he enrolled in Virginia Communist and other anti-Japanese part of with year

Polytechnic Institute for # Later he attended Randolph-Macon organs in active operation in the College, and obtained his law degree

settlement, Major-General Muto revealed.-Domel, from the University of Virginia.

to cause Britain to reflect on the

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the Japanese Up to Wednesday, Aler assertedly shut down 29 hostile planes. During the air battle near Nononham on Thursday, the Japan-navy" man. ese airmon accounted for about half which of the 24 Soviet machines were lost-Domet.

Attacks Intensified

On the Khalha River, July 7. Japanese and Manchukuo land and air forces

term.

He lived for many years at Chat-

Naval Policy Changed Swanoom was fortunate in that his "Chief." President Roosevelt, hud once served as Assistant Secretary of the Navy and was himself big ham. Vo.

When the New Deat for emergENCY obtained huge sums

hnd no relief purposes Swanson difficulty in obtaining generous allot- ments for new warship construction. With the able assistance of Ad- miral Willam II. Standley, Chief of Noval Operations during Swanson's first term of office, Swanson was

SWATOW FIGHTING

foreign

side he claimed, was sit open. The humllation of individual Britons had been neither ordered nor to- icrated!

Possible World Crisis

Tokyo, July 7. Another warning to Britain against continued Intervention on the side of General Chiang Kai-shek and against Japan, was pronounced yesterday by of further measures in Tientsin. the War Minlater, General Itagaki.

General Itagaki, in a message to

It was not true that a Briton had recently been stripped, nor had the entry of foodstuffs been stopped, al- though there had been delays in the supply owing to supervision!

The General raised the possibility

The British have little reason to

the Japanese people, said that the complain," he said. "I have hitherto China episode" could not yet be sent none of my soldiers into the

Concession."Trans-Ocean.

to-day intensified their credited generally with inspiring and Women Abducted By regarded as closed.

attacks on the Sovint and Ouler Mongal forces along the banks of the Khatho River, apparently in honour

China Campaiga.

obtaining passage of the Vinson- Trammel Naval Bill authorising con- struction of warships up to treaty

put the

Swanson immediately

Japanese Troops

Hingning, July 7,

of the second unniversury of the limits by 1942.

Under cover of heavy aerial and authorisation into execution with Opening a counter-offensive on nrtillery bombardment Japanese funds obtained from emergency re- Fungkat, on the Chaochow-Kityan units were exerting Increasing pres- lief allotments. He was able to con-highway, west of Chrochow,

and sure against the main position of the tinue this construction, and to start Fowyoung, on the Swatow-Chao-

Hallway, 4,000 Outer Mongol and Soviet troops new construction with added funds, chow

south-west of the who have crossed the border from

various directions.

BUS.

"Even after the fall of the Chin-. ese Generalissimo," optimistically de- clared General Itagaki, "it will be) recessary to eliminate the anti-

Japanese polley of third Powers, in order to deliberate China from her semi-colonial condition.

"The nation must be ready to face. a possible world crisis."

Admiral Yonni (Navy Minister) had Baron Hiranuma (Premier) and an pudience of the Emperor yester following day.

Defence Of Burma

Talks At Simla On Singapore Lines

Simin, July 7.

from regular Navy Appropriation city, an July 4, the Chinese annihilat- ed over 100 Japonese and drove the The Vinson-Trammell Bill au-rest from the area the A range of heights dominating the thorised construction of 101 ships morning. Outer Mongol main position on the costing more than $500,000,000 over During a night attack on the roll- The Ministers reported on the banks of the Khalha River has a ve-year period. Swanson would way station at Chaochow thirty Ja-forthcoming Anglo-Jupunese negotia- ready been reduced by Japanese accept no compromise in the execu-panese were slain, while the Chinese tone in Tokyo, Japanese action in forces. While a powerful detach- tion of this programme. When con-retired later with some casimlites. South China, and Japan's attitude;

The defence talks which Sir Ar- ment was continuing a frontal attack | struction of (« new Navy Bullding on the enemy position, mobile units was proposed Swanson gave the pro- island south of Swatow, are reported

The Japanese in Tathowfow, an, towards the European aituation. galbald Cochrane, Governor of slaged flanking attacks,

The Tientsin question and Japan's Burma, will have with the Viceroy pasal no encouragement.

have been totally wiped out, relations with Britain will be dis-here next week are expected to em "What the nuvy needs The five-day-old' battle on the ships and more men.

is more Peaceful conditions are now prevail-cussed at a ministerial conference brace questions of constal defence. Khalha River is likely to come to a manage to work most anywhere," he Kityang, respectively south-west and the Premier, Foreign Minister, War piles and the financial aspects con- We all can ing in the districts of Chaoyang and to-day which will be attended by air strength co-ordination, war sup- showdown in the next few days said on more Domci.

than one occasion, north-west of Swatow. "When we have any money to spend

Minister and Navy Minister-Trans-nected with these subjects. we'll spend it for more ships."

Over one thousand Japanese who Occan. attacked Tenghai, north-cast of

'In

Tokyo Statement

Tokyo, July 7. statement Issued Haron

Mado To Confess

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Major-General McLeod, General H. F. Foot Remedy stops foot and To Keep Peace In Rach Swatow, have been repulsed.

Omeer Commanding Troops in Enormous quantity of foodstuffs |

Burmo, and Mr. D. C. P. Phelips, When Japan terminated the naval stored in Hiranuma sald that the lackdent on limitation treaties and Great Britain which had not been removed during the city of Chaochow,

Tientsin, July 7. Defence Secretary in Burma, will ki- the Manchurian-Mongolia frontier at invoked the "escalator" clause to in- the retreat, was seized by the Japan leased Mr. E. T. Grimths, the Bri-

The Japanese authorities have re-tend the talks, Normonkhan was nothing more than augurate a huge naval construction ese who niso abducted four hundred tish engineer an united action of the Japanese and programme,

Although the talks are officially Swanson

of the Butterflold & Manchurian troops who drove back called for additional naval construc- the female captives were

Immediately women and girls. The booty and Swire steamship, Yochow

described as routine, they will fol who has the Soviet

low closely the lines of the Bingn- and Outer Mongolian [tion.

sent to been held in 'custody since last forces thai find crossed the frontier.

Saturday for allegedly "insulting are Conference, which Major-Gen- Obtainable at All Drug & Department Stores The United States, he asserted, Swatow.-Wali Kits Yat Po.

Japanese sentry" outside a cate in eral McLeod attended, and they are the Japanese Concession-United certain to be influenced by the de- velopments in the Far East which vitally affect the strateglé position of Burma and India-Reuter Special,

R.A.F. On Display

London, July 7

Although the Prime Minister said would not initiate a naval building' that he had no exact knowledge of race, but neither would the United the Inner-political situation of the States permit itself to be out-built, Soviet Union, he mentioned neverthe-by other powers. less that according to the judgment

Chinose Rocapture Fungkai. Liuhuang, July 7. Chinese forces .recaptured the small town at Fungkal, about three Admiral Standley was succeeded miles west of Chuoan, in a vigorous

of cothpetent observers the Soviet by Admiral William D. Lenhy as counter-attack on the afternoon of Union was not in n position to wage Chief of Naval Operations. Leahy July 4.

a provocative anti-Japanese war. saw eye to eye with Swanson in tie

Press

Forced To Sign Confession

Tientsin. July 8. Griffiths, of Swansea, Wales, for-

About 50 Japanese casualties were mer Air Force officer, after signing

Ja "confession" was forced to share a Ten new Wellington Vickers bomb-

The Japanese Government continu-need for a navy "second to none." inflicted by the Chinese forces. ed to make strenuous efforts to reach Out of this able, combination came Sovere Aghting between Chinese vermin infested cell willi a coolie in ers of the Royal Air Force left Eng- a peaceful settlement of the

dis- the President's $1,000,000,000 Naval forces and militis corps and Japanese a gaol with two other Chinese. He land for France to-day. pate about Japan's fishery in So Expansion Dill authorising a 20 per blue-jackets raged Tenghal and said that he had received foreig viet Russian waters. In the, Far East | cent. vertical increase in American Hokting, about Ave miles north-east food and was not molested, However

Next week 50 machines will go and the question of the Japanese oflnaval tonnage, and construction of a of Swatow,

his condition was unsanitary, for to Paris for the celebration of and coal concessions on the island number of new capital ships to

French National Day. The Japanere attacked Tenghai which reason the stench was almost of Sachalin. The Japanese Govern- match similar construction abroad. and Hokting with 500 men supported unbearable,

The Air Ministry in negatlating ment, concluded Baron Hiranuma, By this time more than score of by six field pieces and four armed The British Consul sold that Grl-with the French Air Ministry for would use all means at iw disposal the new warships on whitch con- taunches. The assault started on the fitha did not remember insuiting the R.A.F. flgits to France in order to to defend the Japanese rights instruction started soon after Swanson evening of July 6 and is proceeding Japanese army. He said that the Arst give British pilots training in long these regions.--Trans-Ocean.

took office bad been launched and unabated-Ceritral News.

indication was when he woke up lataliiights-Reuter Bulletin,

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