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Laging UVALA High Water:=14.07. Low Water:-19.38.

The

SECOND EDITION

Hongkong Telegraph.

FOUNDED 1801

二拜禮 號八月八英涉香

TUESDAY, AUGUST 8, 1939.

日三廿月六 $30.00 PER ANNUK·

BINGLE COPY 10 CENTS

No. 15309

TAKE YOUR PICK OF

THESE TWO REPORTS

WARSAW, Aug. 7 (Rou- tor).-Polish customs con- trol in Danzig is to bo maintained in full, declares an official statomont, report- ing on the Danzig Senate's reply to the Polish note,

The statement adds that the reply confirmed the atti- tude of the Sonate that no fait accompli in respect to customs inspectors had taken placo.

DANZIG, Aug. 7 (UP) — The Danzig Senate has handed the Polish Commissioner a note rejecting Poland's de mand that Danzig should cease interference with the Polish Customs Inspectors.

It is understood that the Danzig note described the Polish note as "provocative" and based on false rumours.

DANZIG LEADERS FLY TO HITLER

DANZIG, Aug. 7 (Reuter).--The Nazi chiefs, Herr Foerster and Herr Zaske, to-day took off in Herr Foerster's private plane to consult Herr Hitler, who is now at Berchtesgaden.

The Polish customs inspector, M. Lipenski, who was arrested two months ago by the Danzig authorities on a sensational charge of espionage and kidnapping, was to-day tried only on a charge of the breach of the peace involving insults to Herr Hitler and Dr. Josef Goebbels. He was sentenced to 18 months' imprisonment.

NEW MOVES FOR PEACE Declaration Against

Aggression

EASE IN TENSION

While the situation in Danzig is

BERLIN, Aug. 7. (Reuter).—

being watched with particular

closeness here, it is considered

Political

that the week-end developments have now reached the com- rntively safe stage of regular tiplomatic negotiations.

quarters regard the SPECIAL TO THE "TELEGRAPH" Senate's reply as providing a pusst LONDON, Aug. 8 (UP),-Ability for the exchange of views on movement is afoot in Britain, the customs question. and is gaining momentum inside the three

leading political parties, in favour of a declara- tion against aggression and the enunciation of the alms of the peace front Powers.

German clrcles are Indignant at any suggestion that the Senate bas retreated, and the affairs re- presented in the German press as a dangerous act of provocation by l'oland.

Ukrainians Killed

It is being suggested that the -Anglo-French-alliance-with-Russin,-if-DANZIG,-Aug-7-(Trius-Ocean) .—---

It is concluded, should be followed Two Ukrainians were discovered 10-

by a prompt statement on the so-day lying fatally injured in one, of called Peace Eloc's specific terms for Danzig's railway shunting stations. a new settlement in Europe.

Appeal To Peoples

It is presumed that the two men were fugitives from the Ukraine, and that they jumped from a Polish train Exponents of the iden, among whom as it was passing through Danzig, Sir Arthur Salter, Mr. Harold without stopping: on its way to Nicolson and Mr. Ernest Bevin are Gdynia. prominent, urge that if the ulms full

Japan And Europe

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British Warship's Narrow Escape From Disaster

JAPANESE

CLOSE

HAIMEN

TO THIRD-POWER VESSELS

JAPANESE land forces captured this Sovlar anti-tank gun during the fighting on the plain hear the Halhar Rivor, which forms the boundary between Manchoukuo and Outer Mongolia.

Chinese Dollar Crashes To New

.

Record On Shanghai Market

SPECIAL TO THE “TELEGRAPH"

SHANGHAI, Aug. 8 (Domei).-The Chinese 3.15/16d. in the Shanghai exchange market this morning.

DEADLOCK

IN TOKYO

Some circles attribute the depreciation to the report that Britain has sought an understanding from the Chungking Government on the progress in the Anglo- Japanese conference in Tokyo, and also to fears of inflation as the result of the TOKYO, Aug. 8 (Domel)-reported printing of Yuan for the laying down of arms and the Ministry, and the War Councillor, The British Ambassador, Sir 1,000,000,000 of and after a discussion to-day between Robert Craigie, has received notes in England.

to secure. the acceptance of Hitler and Mussolini, they should at least serve TOKYO, Aug. 7 (Trans-Ocean).-— to appear as a direct appeal to the The army will invite the Government German and Italian people and would to take up un unambiguous attitude thus strengthen the elments opposed towards the situation in Europe. It to war inside the Axis countries. was deered in political quarters

If war breaks out, neverding here to-day. advocates of the plan, the proposed "After a thorough. okamination of definition of the objectives against the entire situation" in conferences aggression would survive as terms with the general stoft, the War

rebuilding of Europe.

Call To The World

Japanese Threat Of "Important Stand"

SPECIAL TO THE "TELEGRAPH"

General Itagaki and Admirai Yonai, fresh instructions from London. the Japanese army has decided to Japanese clrcles believe that the

the

Sir

Rapid Decline

SHANGHAI, Aug. 8 (Trans-Ocean).— The Japanese naval authorities have informed the foreign consular corps that the port of Haimen in Chekiang will be closed as from noon to-day.

Entrance to the port will be impossible owing to the position of obstacles being laid, by the Japanese navy,

The closing of the port is described as a military necessity. Vessels of third Powers, including warships, are asked to leave before the expiration of the time limit, the Japanese rejecting any responsibility for vessels which remain.

At the same time foreigners

residing in that area are advised SINGAPORE

to leave, ns the district is being included in the zone of hostili- tics.

The Japanese spokesman said that the object of the action was to tighten up the blockade of the coust.

Gannot's Near Disaster

SILANGHAI, Aug. 7 (Reuter) ---- Unimpeachable foreign reports show

DEFENCES

48 Planes Arriving At R.A.F. Station

SPECIAL TO THE "TELEGRAPH", SINGAPORE, Aug. 7 (UP).-

that H.M.S. Gannet closely escaped A squadron of twin-motored damage, or complete destruction in British bombers, forming the both Ichang air raids yesterday. vanguard of 36 bombers, eight

In the Arst raid, two bombs from a

formation of four alrerafi passed over transport bombers, and four the ship and landed on the foreshore lying boats arrived here from 460 yards ahead.

India to-day. In the second raid the planes With the Sunderland 8ying boats, power-dived and released a bomb which are niready here, these will which passed over the Gannel. The provide a force capable of long-range warship had moved her position after reconnaissance Bights as far as Hong- the first attack had bit the Kiawo,kong, plus auficient bombers and lying 100 yards nstern.

Aghting planes to defend Singapore

Japanese Plane Wreckage attack from the sea.

SPECIAL TO THE "TELEGRAPH"

CHUNGKING, Aug. 7 (UP)----Air

R.A.F. Night Flights LONDON, Aug. 7 (Reuter).

Defence authorities here to-day re-Royal Air Force squadrons are flying venied that part of a Japanese bomb-jover France by night for the first time ing plane's wing painted with the Sun during the air exercises-beginning at emblem has been found two kilo-17 p.m. to-morrow.

the dogfight over

dollar fell to metres cast of the airfield following Bombers of the "Eastland" force, Chungking on after leaving their home bases, will fly south as far as Beauvais before Searching parties are trying to returning to raid the defended area locate the wreckage.

of "Westland."

AMERICANS

& THE P. I.

Manila Fears Of Japanese Success American concern about the LONDON, Aug. 8 (Reuter), Chinese future of the Philippine Islands is likely to become a serious Although evidence is lacking that propose to the Government to draw week-old deadlock in Anglo-Japanese banks are refusing to deal in "Daily Telegraph" to-day.

issue in United States politics, British and other foreign is the opinion expressed by the the British Government is now pre-the consequences from the policy negotiations will reach a critical stage legal tender. paring such £ manifesto, those agreed upon in principle on June 5to-day. espousing the scheme would have the towards the European situation, and British, and if possible the French towards Italy and Germany in parti- poried to have decided to take an The Japanese authorities are re- and Soviet governments, presentacular, which had become of unnvoid-important stand if proposals are not statement to all the governments of able interest to the country's defence received from the world,

Robert Craigle The sponsors of the scheme dif-patic safeguarding of the Fur East before to-night. ferentiate sharply between appease-

British Embassy officials refuse to It is assumed that this suggestion divulge the contents of the

new ment nd peace making, and will come up for discussion at a meet-instructions

London, from emphasise that their project is far ing of the Inner Cabinet convoked for "Domel" was informed that the Em- from an attempt to buy off an Tuesday. aggressor by allowing him to victi-

All the papers regard the meeting London's views regarding outstanding U.S.

bassy has not yet been informed of mlse another country.

as being of exceptional Importance.

Poland Not Co-operating

The British Ambassador, who spent the week-end at Hakone, is return-I LONDON, Aug. 7 (Router)In a-Reports appearing in the English

WARSAW, Aug. 7 (Truns-Ocean), ing to Tokyo this morning. speech to-day at the Liberal Summer and French press concerning the School at Cambridge, Dr. Benes, alleged visit

Sorious Complications .. former Premier of Czecho-Slovakia, mission to Moscow to participate in stood to be of the opinion that serious printing in London of a large num- be whether Japanese ambitions on

of a Polish military

The Japanese authorities are under- of China have formally denied that opinion in the Blands, which may be ony now order has been given for the left to make their own decisions, will elled historical precedents Arm conviction that democracy and tions,

for his the Anglo-Franco-Soviet delibera- complications will develop if there is ber of banknotes by two British firms. the continent meet with success or Ireedom in Europe will be victorious. tive quarters to-day.

were repudiated in authorita any further delay in the negotiations, Dr. Benes was breaking the slience,

Pointing out that the recent London failure. An important communication will IL Is categorically imposed upon himself when he come, Poland will not participate in the } to-morrow If no proposal for re- and the Central Bank had given two

slated

that be made to the British Ambassador report that the Chinese Government

Dictators Cannot Endure,

Says Bones

to Britain from Czecho-Slovakia,

talks,

In general terms

issues.

suming the conference to-night.

(UF), Mr.

.and

Friday morning,

Plano Shot Down

Expanding Personnel CHUNGKING, Aug. (Central).- LONDON, Aug. 7 (Reuter)-The The Chinese Aviation Headquarters Admiralty announce two new mea- confirmed that a Japanese plane was sures designed to expand personnel shot down by Chinese pursuits, dur-by the dilution of personnel in the less ing the air raid early in the morning exacting and active duties, of Aug. 4.

The Best invites 3,000 ex-naval and

A wing of the machine, painted marine ratings under 53 years of age with the Japanese insignia, was found)

PLEASE Turn To Pago 4. Chungicing.

то

xix miles cost.

Searches are now being made for feved to have crashed somewhere at the body of the machine, which is be- Changshou, north-cast of here.

"Most Regrettable" SHANGHAI,

Aug. 7 (Trans- Ocean)-Regarding the bombing and destruction of two British vessels at, Ichang, the Japanese military spokes-

The newspaper points out that for man affirmed that he had no offetal the United States to carry out its de- information on the subject, but added SPECIAL TO THE "TELEGRAPH"

clared intention of establishing and that if the report were true the action Independent Philippine Republic in was "most regrettable." SHANGHAI, Aug. & (UP).-The 1946 might well prove a preliminary In the meantime it had been dc. Chinese dollar crashed to the new to the islands falling easy prey to Anitely established that the nero- record low level of 3d. at this Japan sequel which was never planes in question did not belong to morning's opening of the Foreign part of the American scheme. the navy, and therefore the protest. Exchange.

submitted by Rear-Admiral Holt to After noting in the past that any the Japanese naval Commander-in- The dollar was quoted 7 against suggestion of modification in inde- Chief had been forwarded to

currency.

pendence has not been popular with military authorities, who would in- the Filipinos, but that events in the vestigate."

Banknote Rumour Donied In Chungking CHUNGKING, Aug. 8 (Reuter)

Far East are stimulating second thoughts regarding the advantage of

the retention of the American flag..

the "Telegraph" concludes that the

The authorities of the Central Bank main factor in the formation of

received by contracts for printing more than 3,000,000,000 banknotes gave an Im- Mr. I B. Dennis, Chief of Police pression that the contracts referred the British in the British Municipal Counell into were of recent origin, and that the

He avoided current controversial questions; and

Strang For London criticised democracles and dictators, MOSCOW. Aug.

the former for their lack of beller Mr. William Strang.

and faith in their own principles, Foreign Office expert, departed for Tientsin, returned to his post by air/Chinese Government was embarking |

Jack of civic courage, their utilitar- London by airplane to-day. ianism, lack of real knowledge of Influx To Koenigsborg

concrete problems, for which reasons

they must have a right concept of democracy as a theory and courage

SPECIAL TO THE "TELEGRAPH"

BERLIN, Aug. 7 (Router).-It

to Implement their theories rightly announced that German and courageously.

yesterday.

Gormans, Italians Ald- Demonstrators

SPECIAL TO THE "TELEGRAPH" TOKYO, Aug. 9 (Domel).-With

territory bordering Danzig will become the many German and Italian as well as centre of attention the week before Chinese residents participating, about

on a course of inflation,' officials of the Ministry of Finance explained to "Reuter" that the two contracts were signed over two years ago.

Chinese Dollar's Further Slump

England's Bleak

Bank Holiday

German Food For

Spaniards

the

The German steamer Minerva ar- MADRID, Aug. 7 (Trans-Ocean). rived at Cartogena to-day with a cargo of sugdr, flour, beans and con- densed milk as a present from Ger- many for the social welfare work of the Falangists.

LATEST

Soo Back Page For

Further Late News

WIDESPREAD PLOT IN SPAIN STAMPED OUT

London, Aug. 7 (British Wireless). -Bank Holiday week-end crowds, which have been larger than ever, have experienced very mixed weather,

SPECIAL TO THE "TELEGRAPH** and the bank holiday itself in London. has had the least favourable conditions

MADRID, Aug. 7 (UP)-Sources here consider that the SPECIAL TO THE "TELEGRAPH" experienced for several years.

widespread plot to assassinate Right Wing military and political SHANGHAI, Aug. 8 (Domel)

leaders one by one has been crushed completely as a result of A 10 result, indoor places of On the other side of the picture, as the big Koenigsberg Fair opens on British demonstrations on Sunday.

Herr Hitler's Tannenberg speecil, 100,000 citizens of Kobe staged anti-imped again to be quoted at 3.07324 amusement, muscuns, plcture galler- the recent courts martial and rapid execution of the Gabaldon

3.9/32d. les, shows and exhibitions have been murderers. the authoritarian leaders must reflect August 20.

Franco And Alphonso the characteristics of thoir Staics,

Jointly organized by the Hyogo on London 7% on Now York.

The police consider the

SPECIAL TO THE TELEGRAPH” which are based upon the idea in cross the Polish Corridor special aicipal Assembly, and the Kobe buyer general ione

Many thousands of people will Prefectural Assembly, the Kobe Mu- Quotations were 80 sollers and 91. Well patronized.

The skies cleared towards the executions to be a sufficient

PARIS, Aug. 7 (UP) The, news- The was uncertain, evening, Lief was a battle, and that relations trains to vinit. the Fair, which ends Chamber of Commerce and Industry. The Hongitons and Shanghel Banis animated, the streets became more warning that General Franco's paper Excelsior reports a break- between nations and States was alon August 31, just before the "Party

the day's programme began with aing Corporation still failed to an activities of the day were greatly Spain will not tolerate any such General France and King Alphonse,

down in PLEASE Turn To Page 4.

negotiations between PLEASE Turn To Pago 4.

PLEASE Turn To Page 4.

attempts.

Life A'Battle

nounce its aftitude.

Yen

curtalled.

PLEASE Turn To Page 4

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