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Dollar T.T.—-14 1-jengkong Telegraph" (PET)##SaWikCluna Morning Post, Ltd., IanoUYmbuẩ3⁄4irm, Hongkong Low Water:-20.00.

The

FINAL EDITION

Court

Hongkong Telegraph.

FOUNDED 1801 五拜禮 號九廿月三英港香

No, 18108

Nazis May Start Submarine

FRIDAY,

MARCH

29, 1940.

日一廿月二

SINGLE COPY 10 CENTS

$36.00 PER ANNUM

Warfare In Far East

80 U-BOATS VLADIVOSTOK,

Reich Seeks Bases On Hainan Is.

SPECIAL TO THE "TELEGRAPH" PARIS, MARCH 28 (UP).—AC- CORDING TO THE PARIS "SOIR", EIGHTY U-BOATS HAVE BEEN SHIPPED PIECEMEAL ACROSS SIBERIA AFTER BEING KNOCKED DOWN FOR RE-ASSEMBLING at VLADIVOSTOK.

DIPLOMATIC QUARTERS IN PARIS, HOWEVER, ARE SCEPTICAL OF THE REPORT, ALTHOUGH NO DENIAL HAS BEEN YET ISSUED FROM ANY SOURCE.

RUSSIA

MANCHI

SAKHALINE

ADIVOSTOK:

YELLOW.

SEA

SEA OF

EJAPAN:

MILES — 100,200 300 20

The newspaper said that Russia has already given Germany submarine bases privileges at Possit Bay, southwest of Vladivostok, and that the Reich is attempting to negotiate for similar bases on Hainan Island, through an agreement with Tokyo.

However, the French authorities doubt whether Japan would rise to an Allied challenge to the Japanese occupation of Hainan, which neither Britain nor France have ever recognised.

EXTENSION OF WAR TO

FAR

EAST POSSIBLE?

SPECIAL TO THE "TELEGRAPH"

WASHINGTON, Mar. 28 (UP).—The possibility of Germany extending the war to the Far East through U-boat warfare from a Soviet port in the Sea of Japan is now being openly discussed in Washington following the return to-day from his European tour of Mr. Sumner Welles.

Significance is seen in the recall of the Soviet Ambassador, M. Souritz from France, and the recent seizures of copper shipments to Vladivostok.

SENT

TO

REPORT

Chamberlain And Halifax Bittorly Assailed

WELLS WARNS OF BREAKDOWN OF CIVILISATION

SPECIAL TO THE "TELEGRAPH"

LEEDS, Mar. 28' (UP).—Mr. H. G. Wells, speaking before the British Student Congress to-day, criticised the Government's war publication "The British Case," which, he said, would probably damn Britain in the eyes of the United States and other neutrals, and even

France.

Nazi Navy' Challenge

He said that Lord Halifax and Mr. Chamberlain were "playing about" with the war.

de-

"The world is faced with three alternatives; firstly, a world revolu tlon; secondly, political gangsterdom;- and, thirdly, decadence and

"Order is tottering in every coun- try and war expenditures will soon. lead to bankruptcy and inflation.

"Will Damn Us Ultorly** "The British Case is calculated to en and all neutral countries, even "I challenge you to read it and say or not Lord Halifax is a t whether or

in

Said To Be On Way To fentism," he said.

Fight Brich Flect LONDON, Mar. 28 (Reuter)-An unconfirmed report that German war-damn us utterly in the eyes of Ameri- ships "have steamed or are our ally, France. steaming" out of Wilhelm- shaven to engage the British forces on contraband control duty was made by the Rome radio announcer to- night.

The announcer added that merchantmen in German northern waters have been ins- tructed to sock shelter in the nearest porta. As a result of this the Scandinavian harbours, according to the announcer, are literally teeming with German vessels.

Nazi Ships Aground OSLO, Mar. 28 (Router). The German ship Ostpreussen, which ran

aground north of Jutland some days! BO while evading Briush warships, has been joined by another German which ran aground on Tuesday night. Neutrals Warned COPENHAGEN, Mar. 29 (Reuter), The Danish newspaper, "Politiken, reports receiving a message from Berlin stating that Germany will scon demand that neutrals consider all armed Allied ships as warships and allow them to stay only 24 hours in port.

Officials in Washington believe that the partial blockade in the Pacific indicates vessel, the trawler Wilhelm Maric that the Allies are confident that the Atlantic situation is sufficiently under control.

Mr. Welles arrived here to- day, and without making a single comment, proceeded direct to the State Department and later conferred with President Roosevelt for 45 minutes.

Official quarters expect part of Mr. Welles' report to deal with the possibility of the extension of the European war to the Far East as a result of the new ten- alon between the Allies and Russia.

Donies Peace Plan SPECIAL TO THE "TELEQNAPH"

NEW YORK, Mar. 28 (UP)-The

British Press Perturbed

By Slump In Sterling

SPECIAL TO THE "TELEGRAPH"

If neutrals do not agree to this, says the report, the "Reich will consider their neurality broken."..

Direct Challenge

and proper person to continue charge of our foreign affairs.

"I bellovo'you will say with me that if this is the stuff for which we are fighting, it is foolish to fight. Lord Halifax and Mr. Chamberlain are, at the present time, still play- ing about with the war,

"War Will End Us"

It is a truism now that if we do not end the war, the war will end us.

There is a call for a revolution in human life which dwarfs all previous revelations

"We are in the presence of a single world system which is breaking down. "There is nothing whatever in sight to set against a collapse in western civilisation. In every country we are living in a tottering order."

Nazis' Latest Balkan Move

Agriculture Minister To Visit Hungary

SPECIAL TO THE "TELEGRAPH"

Going on Leave?

We have a

comprehensive schemo for trading in your car,

„CONSULT ÚS —

GILMAN'S the car

people

THE WATCH ON FRANCE'S SHORES

ONE OF THE THOUSANDS of patrol units who keep care- ful guard of France's coastline against possible invasion from the sen. France has a systematic chain of fortifications along its coastline' as well as along its western front.-French Oficial Photograph.

Real War Chiang's Son

To Start In Spring

Expected Effect Of Allies' Decision

SPECIAL TO THE "TELEGRAPH”. LONDON, Mar. 28 (UP).— The Allied Supreme War Council met in London to-day and "de- cided on future action."

The Council agreed neither to conclude a separate armistice or pence or to discuss peace terms bofore reaching a complete agreement on the conditions necessary to ensure their own

security.

They also agreed to maintain, after the conclusion of peace, "a com-

manity of action in all spheres for so

long as it may be necessary to safe- guard their scourity, and effect re- construction, with the assistance of other nations, of an International order which would ensure the liberty of peoples and their respect for the law and maintenance of peace in

Studies U.S. Air Tactics

SPECIAL TO THE “TELEGRAPH" WASHINGTON, Mar 28 (UP).

Generalissimo Chiang Kai-shek's second son, Lieut. Chiang Wai- kuo, has enrolled for three months course in aerial com- bat tactics at the training station, Maxwell Field, Ala- bama according to an an- nouncement by tho. United States War Department.

Lieut. Chiang graduated from a German military academy, and has been in the United States during the past five months.

LATEST

Two Planes Lost

BERLIN, Mar. 20 (Reuter).-D. N.

Nazi planes have jadmits that two

falled to return from reconnaissance Britain was represented by Mr. nights over the North Sea, France, the Mr. Orkney and Shetland Islands yester-

BERLIN, Mar. 28 (UP)-German Europe." efforts to capture the economie

16 Attend Mooting markets of the Balkans took a new

France was represented by, M. turn to-day when the official news ugency announced that the German Reynaud, M. Compinthi and M. Minister of Agriculture will leave for Laurent accompanied by the Freneli Ambassador to Londor). Gentral LONDON, Mar. 28 (UP).—Sterling's severe slumption against German ships by Allies virit to the Hungarian capital.

BERLIN, Mar. 20 (Reuter),Any Budapeal on April 2 for a three-days' | Gamelin, Admiral Durian and AB. (the German official news agency) on the New York and other markets is proving a shock in neutral waters will be considered He is going at the invitation of the Marshal Vulliemin.

in Berlin as a direct Allied declara-Hungarian Premier and the Minister

Chamberlain,

faith Lord Halifax. for Agriculture. to the British public, despite repeated efforts on the part ton of war on neutrals,

The aim of the visit will be to Ins- Churchill. Mr. Oliver Stanley and day Agency claims that several hits International law will be upset, of the press to explain that New York's turnover of moan the Nazis, if the Allies clain pect the Agricultural Exposition at Sir Kingsley Wood accompanied by

Alexander Cadogan, General were obtained in bombing attack on the right to police neutral waters, Bucharest and "to discuss economic Sir Italian Liner Conte di Savon docked sterling to dollars is so small compared with London's, and havoc will be created among the "elations between Hungary and Ger- Ironside, Air Chief of Staff Sir Henry a British convoy off

many, and the extent of their co- at 9 am, to-day and Mr. Sumner Welica, carrying a small brown case that gyrations in the New York rate are meaningless. principles of war.

Germany is ready to meet the operation in the agricultural domain." crammed with confidential reports, At the same time a large as for years in Berlin. But the challenge, says Berlin. departed for the White House at Washington at 10.30 am, aboard the section of the Press severely suthorities refuse to voice any con- dence in this suggestion and it la "Judiciary Flyer" of the Pennsyl- criticises the authoritics "imp their polley to

Ing exchange control" which enough control to insure that there is the possibilities of referred to his permits the New York rate to an adequate flow of guilders, belgas peace, Mr.

SPECIAL TO THE "TELEGRAPH" Rome statement in which he denied furnish Lord Haw Haw with and Swiss francs into the official pool London for the purchase of war- that he had received any peace plan propaganda which he gleefully time supplies abroad.

TOKYO, Mar. 20 (Domel),~A exploits. or had any knowledge of such.

British cotton piece good, worsted disastrous fire destroyed about 10 One popular suggestion is that tissues and iron and steel manufac-houses in the Shiba Ward of Tokyo association to accompany Mr. Wellca

The blazo broke out about 1.15) SPECIAL TO THE "TELKORAPH" every step of the way and certain exchange control by the expenditure tured goods are all cheaper in terms early thle moming. trends that I noted will undoubtedly a relatively small amount of of foreign currencies than they were

SHANGHAI, Mar. 29 (UP)—After UP. dollars could control the New York a week ago. But there is no enthu-a.m., and was not put under control affect his

writes .a

until two hours Inter.

two and a half years of idleness, the rate the same as it pegs the offcialism shown for this depreciation.

Does Not Solve Problem Fire-fighters had to contend with Whangpoo Conservancy Board will Firstly, Signor Mussolini during the rate in London.

As an export advantage because it a strong gale which considerably once more begin dredging operations last three weeks gave the impression The Times", which is frequently

a vehicle for any explanation by the contributes nothing towards the solu- hampered their work and caused the in the Whangpoo that he believes Germany now..has a chance to win the war. The linlian authorities, has not yet commented on tion of Britain's paramount export flames to spread to an alarming de

problem at this time-how to mobl=gree. press in again boastfully using the this idea.

liso British manufacturers who prefer Word "axis."

Vania

Asked

wall

member of any press

uncial compon

at

the

establish only Just FIRE DESTROYS

home market as being safer

Tochnical Theory.. Another and more technical theory is that Britain should abandon hat quicker and more profitable than the and establish Full Sport trade; how to grow British

* Allies' Confidence Secondly, the Allies are confident way measures

caucratic restrictions, and finally how that they are winning air supretincy control. This would moan among exports through the tangle of bur-

owned

to transport British goods regularly over Germany and have resources for other things that foreign

sterling deposited in London banks PLEASE Turn To Page 2. PLEASE Turn To Pago 2.

I would be blocked” the name as it

80 HOUSES

COUNT TELFKI GOES HOME

ROME, Mar. 20 (Reuter)Count Teleid, the Hungarian Prime Minister, has left for Budapest..

Dredging The Whangpoo Operations To Be Re-started

the Shetlands and Admiral Dudley last night, arul that a successful ot- tuck was made on a French destroyer Informed quarters say the Council's in the Channel. deliberations were political more than military and centred on a new bld for Italy's friendship. Although these quarters doubt the press reports that Hitler's plan to reconcile Italy and Russia is a total failure, they point to M. Reynaud receiving the Italian Am- bassador and his summoning of the PLEASE Turn To Pago 2.

Soo Back Pago For Further Late Nows

ALLIES PLEDGE TO WAGE TOTALITARIAN WAR

SPECIAL TO THE "TELEGRAPH"?

The duties of the Conservancy

BELFAST, Mar. 28 (UP)~That Britain is pledged to wage Board were halted in August, 1037.

It is understood that the first foba total war was emphasised by Mr. Leslie Burgin,' Minister of Supply. of dredging will be just below Point when speaking at Belfast to-day, Istand within two weeks.

Shipping circles here hail the re- He declared: "Britain is pledged cut off and her exports, save to sumption of the work, although to wage a total war with all that 16 neighbouring, countries, have been Į reduced to very slender proportions. limited, as an Indication of a "loosen-means.or may involve."

He added: "Germany is beleagur- "The dice is loaded in favour of Ing-up tendency of the tight grip held by the Japanese military authorities." od and surrounded. Her impörts ärel an Allled victory."

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