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Hongkong Telegraph.

FOUNDED 1881

No. 16034

AMO BAЛ- SATURDAY, JANUARY 6, 1940. 日七十月一十

War-Minister Provides First Class

Sensation

HORE-BELISHA TENDERS

HIS

MacMillan

Out

RESIGNATION

Famine Threat

Peasants

Also

To

of Cabinet

SPECIAL TO THE "TELEGRAPH"

LONDON, JAN. 5 (UP).—MR. LESLIE HORE-BELISHA HAS RESIGNED HIS OFFICE AS BRITISH MINISTER FOR WAR.

IT IS ANNOUNCED THAT HE WILL BE SUCCEEDED BY MR. OLIVER STANLEY, FORMER PRESIDENT OF THE BOARD OF TRADE.

Mr. Hore-Belisha refused another post in the re- constructed Cabinet.

The resignation, which was entirely, unexpected, came as a complete hombshell.

It is also announced that Lord MacMillan has: resigned as head of the Ministry of Information,

MR. HORE-BELISHA

On H.K. Border

SPECIAL TO THE "TELEGRAPH"

FAMINE is threatening the tens of thousands

of peasants residing in the Hongkong border areas just vacated by the Japanese, according to reports received by the "Telegraph" from reliable sources. This year's crops, both of rice and sugar-cane, are irreparably ruined.

HOW

The rice crops, which were planted before the second Japanese occupation, remained unharvested, while it is

too late to plant the |sugar-cane crop.

The next planting season will commence in April,

But

the. rich

.

Sir John Reith will succeed Lord MacMillan and Sir COLONY'Slowners sought resis Andrew Rae Duncan replaces Mr. Stanley as President of

ELGIAN

the Board of Trade.

Mr. Hore-Belisha sent a letter

ELGIAN to Mr. Chamberlain, regretting

CABINET DESIGNS

SLS. Jan. † (Reuter)

ian Cabinet has re-!

that he was unable to accept a different Cabinet post.

RECORD RESERVE

in Hongkong before the Japan- ese invasioni show no signs of returning, it is feared that the peasants will be unable to plant this year's crops.

In the pust it has been usual for landowners to advance the Imoney necessary for planting and

Balance Of Assets Soars

harvesting. To $17,285,669

"I shall, however, naturally give! all the support in my power to the firm conduct of the war until isj brought to a successful issue. I am

HONGKONG'S balance of glad there is no difference in policy assets over liabilties soared from between us,"

$15,986,508 at the end of In his reply Mr. Chamberlain padSeptember to $17.285.669 at the Ereal_tribute_to__Mir. Hure-Belehals) work in the War Ofice anul, to the end of October, despite war on The retiring Prime Ministerinportant reforms he had arcon- two continents. has been asked by King Leopoki to form a new cabinet.

ECONOMIC

is of great sailsfuction to me

Practically the entire populace of the peninsula south of the West River are destitute and ulready living on the verge of starvation.

-Mustaf...Qan. Chinese....who returned. to their native

foucl.

whatever of

WAR FRONT: Conflict With "Brass Hats"? much as $1b), 175. in excess of villages because the wells have been

Nazis Making Little Go A Long Way

LONDON, Jan. 5 (Reuter).- Field Marshal Hermann Goer- ing's new appointment as the Nazi economic lictator occupied the forefront of British Press

omment to-day.

as

The Nazi Government is worried by the problem of financing the war,

and

the says the "Tinies," difficulties multiply and hardships on the people increase, blame is placed by one lender on another. Goering is to be made to decide between them.

BINGLE COPY 10 CENTA

$30.00 PER ANNUM

Whiteaway's

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SALE Begins MONDAY

Soo Pages 3 &

"GOOD-BYE, MR. CHIPS" AS "TELEGRAPH" SERIAL

THE "TELEGRAPH" takes pleasure in snnouncing that it has acquired permission to reprint, in serial form, the famous novel "GOOD-BYE, MR, CHIPS", written by James Hilton..

The serialisation is Lebbeus Mitchell, who is responsible for successful scrialisations of several other well-known novels. "GOOD-BYE, MR, CHIPS" will commence in the "Tele- graph" on Monday next, and will be published daily thereafter." A picturisation of the famous novel, produced by Metro- Goldwyn-Mayer, is shortly showing at one of the Hongkong theatres.

FOOD RATIONS FOR ITALY

ROME, Jan. 5 (Reuter). -Italy will soon have food rationing, it was announced to-day.

Ration cards for coffee will be distributed by the middle of this month and the same cards will be used for other foods later.

Coffee rationing will start un February 10.

Japan willing

to talk

peace

LONDON,

More Dublin Arrests

Jan. 5 DUBLIN, Jan. 5 (Reuler). Following a Police round-up 12 men (Reuter).-The belief that were detained at Cork and 12 others it would be possible to ar- in various parts of the county.

range a satisfactory peace in the Sino-Japanese dispute. within a short time was ex- pressed to "Reuter" by Viscount Kano, the London manager of the Yokohama Specie Bank, in an interview to-day.

Viscount Kano said that Japan had now reached a position where she could that her reasonably say ceonomic claims on China had been satisfied.

"

Astonishing Russian Reverses Continue Jane output

SALLA CLAIMED

MILLIONS of these Japanese military banknotes which Chinese residing across the Hongkong frontier were forced to accept during

Japan Achieves Aim the Japanese eccupation are now, with the departure of the Japanese If economic readjustment was villages after the troops, valueless. They are issued in denominations ranging from | maintained, there was no reason Japanese evacuation this week Arc 1 son (less than one ent Hongkong currency) to one yen, and have why the two countries should not

· Revenue for October amounted already back in Hongkong, preferring been lavishly distributed.

resume friendly relations. to the British Colony, that there is not now, and that there to $4.170.810 and expenditure to to return

Japan had achieved the desired never has been, any differences be- $3,180,649, giving a credit where they are at least assured of

the share of China's markets for The majority simply crossed ween us in policy and in particula. Įbalance for the month of the border to salvage

of manufactured in the necessity for prosecuting the i$1,293,161.

their belonings they could ind.

goods of all kinds, and access to the war with deferințation to a success-

raw materials produced by China had In the face of war in Europe and it is stateel that, in any case, it is fut isme."

also been attained. China, the Cetoher revenue totalled impossible to reside in many of the the revenue for the corresponding polluted with heavy oil. Mr. Hore Belisha's methods and pericet last year, and total revenue forj reforms in ile War Ofice brangi The rear up to the end of Delober; him into conflict long before Beamounted to $14.775.227, which was) Gulbreak of war with the conver-over $4.000.000 more than for 1930. vative army eldefs, who never for-¦ gave him for sweeping out the old i

Remarkable Figures "brass hats" and appointing more Some appreciation of the remark competent mess in thele places, re- able increases in revenue enjoyed It is believed that the Chinese Finland indicate that the intensive fighting north of gardless of seniority.

during 1989 can be gained by the troops do not intend to remain in the Salla on the central front promises to give the Finns He jumped Viscount Gort, who fact that at the end of October thef border cities, and will depart ay soul rommond the British Aring, nytit muggregate revenue was but half as the new Magistrate of the Po On another great victory.

many senior officers and also ap-million dollars below the estimated district recruits his local militia. pointed younger ollleers to the Army | tutal for the entire year, Council.

Guerillas On Border

Chinese querklas have re-occupied Shum Chum and the Chinese portion of Shataukok. Approximately 1,000 guerillas are in Slum Chun and al. small unit is in Shatoukok.

IN FINN HANDS

LONDON, Jan. 5 (Reuter). All reports from

Pokut is entirely destroyed and Copenhagen

Increases in expenditude were also Wangpuliang has been half-gutted by the Sovietsen reporte state that U.S. WARNS He tried to democratise the army realised, but not to the same extent. fire. Otherwise, the border towns after two days of intense fight- and wetablished the rule at the out- October's total was but $404,030 appear to be fairly intact. break of war that officers would be bigger than that for October 1938, and Japanese evacuated so hur-ing, while the Danish paper, the total for the first tea meats of riedly that they have abandoned all "Berlinske Tidende," says that chosen from the ranks.

last year was $31,051.702 against their field communications, which the Finns have recaptured Salla $28,018.208. For the same period in include an elaborate telephone systelf.

War's Greatest Surprise Mr. Hore-Bellsba's resignation lef 1938, regarded as the greatest polititcol sur- The aggrogate for the first ten It is ntting, the "Times" continues,

prise in the war to date.

months was still $6.705.431 short of that he who has so often boasted that

However, as the exchange of let-the estimated total for the whole ters shows, there are no political dif- year. Nazi Germany would not be much affected by the Allied blockade shouldferences between Mr. Bellshin and now be charged with counteracting Mr. Chamberlain. its Inroads on Germany's commercial and economic vitality.

Special Difficultios

It is therefore assumed that the War Minister did not see eye to ryo with the Army chiefs.

Some Details

WA9

'The next three months will present Belisha refused was the presidency way continued to show a loss, but

special dificulties for Nail exchange the Balkan states, of goods with which aro now. Herlin's best cus- tamera,

It is understood that the post M of the Board of Trade, which is post outside the War Cabinet.

The

BRITAIN Damage To Detained tem. An electric power plant, in- cluding two generators, has

American Ships been In the south, the temperature Je abandoned. In Shum Chun.

now 30 degrees below zero and attacks As far as can be ascertained, the have stopped,

WASHINGTON, Jan. 5 (Reu- Japanese have evacuated the entire

United Soviet arillery is heavily shelling

Tho

States area south of the West River with the the Mannerheim Line..

Government has warned Great

Shot In The Stomach

Finns Still Advancing LONDON, Japan 5 (Rauter) ---- Finnish troops have penetrated 10 to 15 miles into Russian territory In the direction of Rapols, sccord- ing to the spokesman of the Finnish Legation in London.

ter).

With regard to China's Iron and steel requirements in particular, it was not possible for Jupan to pro- cluce oil that China wanted, and China must therefore continue to rely on Britain as well as Japan for these muterluls,

It was in everyone's interests that " the war in China should cease, he

d

Not Competitive

Asked whether кото modus operault had been found between

PLEASE Turn To Page 4.

LATEST

Britain that she will be held BRITON ESCAPES

responsible for damage resulting from "losses, and injuries" if American. ships are forced into British control ports.

the text of a long note dealing with The State Department has issued

this matter which has been landed to Lord Lothian, the British Ambas- nador,

So far as details pre, concerned, excoption of Taiping and Tungkoon, largest revenue increase

in where nominal garrisons have been duties, which jumped from $621,300 retained. In October 1938 $1,200,800 last October, The Kowloon-Canton Rail- this was offset by an increase in Post" Office receipts, which improved by Mr. Oliver Stanley, former Pre-

close on $50,000. Land Safes also. sident of the Board of Trade, now showed a slight increase, as did enters the Cabinet, but Sir John Hicences and internal revenue. Reith and Slr Andrew Duncan have Largest Increase among expenlis posts outside,

ture items was Air Raid Precautions, Mr. Hore-Bellshu lolterly became which lumped from $4,740 in 1930 aggressive in his methods and had to $420,003. Beyond this there were many political enemies.

no stariling increases, although tho At the end of 1930 junior Ministers Police Department, Charitable Ser- led by Mr. R. H. Hudson, launched vlees, C.S.O., and Harbour Depart Goering says the Times," will unsuccessful campaign to oustment all required more money than A uniformed Japanese, supposed

ilm. His position, however, won. year previously. Public Works to be intoxicated, last night Sails from Kambalahal (presumably Neutrality Law Violatod

generally consitiered strong, especial- Extraordinary also advanced from climbed the wall of the quarter. another version of Kandelakhja)' but ly after dils successful of the British Expeditiontity Pera to $105,394 to $236,070, France without a single casualty,

These goods, which include oil, timber, wood, copper, etc., usually came through the North Sen, but now that that has been closed, all traffic inust be carried on the already over- worked rallway system of Central Europe.

tackle this with energy.

Newspaper's Worning

The "Manchester Guardian" warna readers against under-estimating Ger- man war economy, thich, the paper says, is successfully making a little fon long way..

The German Government will have 4o turn the screw still Ughter on the German people, and no one is better fitted for the task that Geering,

German economy is not to be demplied,

Kays The "Manchester" Guardian." It is built for war, while

urs is not-oven entirely ready.

Force to

Lord McMillan's departure from Warships Conclude

the Ministry of Information was nati- cipated. He has been under a con- sistent fire of criticism.

The appointment of Sir John Belth

Courtesy Visits

Ite sald that there has been fight- Ing on Soviet soil for several days.·'

The State Department disclosed Fresh Russian. Troops

that the American ship. Mooriacsun, Japanese Wounded

en route to Bergen, has been taken SPECIAL TO THE "TELEGRAPH" By U.S. Guard

COPENHAGEN, Jan. 5 (UP)The to Kirkwall, one of the control ports newspaper

"Berlingske Tidende's" within' the area in which American PEIPING, Jan, G (Reater) Stockholm correspondent reports the vessels are forbidden to sail under

Russians brought up fresh troops to the Noutrality Act.

master's compound of the Ameri-were unable to halt the Flans. can Embassy Geard and broke, The number of killed and wound- into the barracks creating, a dis-ed, number of prisoners taken or the amount of war booty is not known (urbance.

an yet, When challenged by the Guard,

Damaged Wanships he refused to halt and was shot......... BUENOS AIRES, Jan. 0 (Reuter), in the stone man received A Tallinn messago says that tiree

HELSINGFORS, Jan. 6 (Reuter) inasmuch as it was widely expected-H.M.S. Achilles concluded her The wounded that Sir Walter Monelion would two-day courtesy visit to-day and immediate medical aid and was towing the damaged Russian warship, Russian tug boats arrived at Libau alled from Buenos Aires this mom handed over to his authorities: Kirov, which is so badly damaged by Mr. Oliver Stanley's appointment ing as War Minister is also a surprise. ILMS. Jax loft Montevideo 100s The da affair is being in rinnish coaxial batteries that she will

PLEASE Turn To Pago 4.

* PLEASE Tum To Pago 4.

in his lead has come as a surprise

succeed him.

afterwarded.

...

The Department added' that since is a violation of United States Neutrality Law for an American ves sel to enter an area of combat, the Department has requested the Ameri- can Embassy in London to get, in touch immediately with the master of the Moormicsun 'in order to obtain a full statement of the circumstances

The Stato Department note, which

ada preliminary to possible action.

is dated December 14 and signed by

Mr. Cordell Hull, pointed out that United States shipping companies are PLEASE Tum To Pago 4.

ASSASSINATION

SHANGHAI, Jan. G (Beuter)-An -unsuccessful atlanpt was made this moraing to assassinate Mr. Godfrey Phillips, British Becretary General of the Shanglial Municipal Council.

Mr. Phillips was driving to his office in his car shortly before 0 a.m., when two Chinese who were walking rickshaws on the side of the road opened fire.

The bullets wont wide and nobody was hurt. The assailants escaped.

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