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"Hongkong Telegraph!!

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The

FIRST EDITION

Hongkong Telegraph.

FOUNDED 1001

No. 16522

二拜禮 號九廿月七英港香

TUESDAY, JULY 29, 1941... 日六初月六問

NAZIS BROUGHT

Matsumoto Maru

SINGLE COPY 10 CENTS

$30.00 PER ANNUM

TO A Outside S'pore EIGHT

STANDSTILL IN CENTRE FRONT

OF

EASTERN

ZURICH, JULY 28 (REUTER).—UNDOUBTEDLY THE WAR HAS BECOME STÁTIONARY IN THE CENTRAL SECTOR OF THE EASTERN FRONT, WHERE FIGHTING HAS BEEN HARDEST, DECLARES THE BERLIN CORRESPONDENT OF THE "BAsler nachriCHTEN," REPORTS FROM THE FRONT, ADDS THE CORRESPONDENT, HAVE FREQUENTLY MEN- TIONED THAT GERMAN INFANTRY HAVE BEEN OBLIGED TO ENTRENCH THEMSELVES IN ORDER TO FACILITATE DEFENCE AGAINST RUSSIAN COUNTER-ATTACKS.

Stubborn Fighting By Reds

Latest Communique

MOSCOW, July 28 (Reuter). The following is the latest Soviet communlque:.

"Our troops continue fighting in the directions of Smolensk and Zhitomir.

tles elsewhere.

German propaganda has been forced to turn a back somersault over the German Army communique of July 7 reporting that the Russians had thrown into battle their last reserves and it is now alleged that the Rus- sians have received further, reinforcements from the Urals which district "was, of course, not taken into account by previous communiques."

The "Deutsche Allgemeine Zeitung" explains the hold-up of the German offensive by saying that "a big battle is proceeding against a very strong Russian army in order to enable the German Army to continue the war movement."

PRESSURE RELAXES

"The enemy offensive is break- ing against the strong stubborn fighting, our troops in certain places energetically altacking and inflicting heavy SPECIAL TO THE "TELEGRAPH" losses.

MOSCOW, July 28 (UP).- "There are no important bat-To-day's communique indicated that pressure has been relaxed "In other driections and in the Nevel, Smolensk and sectors on the front, there is Zhitomir areas where the fight nothing of importance to reporting is continuing but apparently Our air force, co-operating with without the usual ferocity. land troops, is operating against rge enemy formations of air force and against their Her- dromes.

Lull Descends On counter Soviet War Fronts

A fortnight ago to-day, the Berlin correspondent of the "Basler Nachrichten" reported that Berlin was expecting the fall of Kiev within a few hours.

Difficulties of Nazis

SPECIAL TO THE "TELEGRAPH"

SINGAPORE, July 28 (UP).—It is reliably report- ed that the Japanese steamer Matsumoto Maru is lying off Singapore' pending the clarification of the situation resulting from the freezing order.

The N.Y.K. stated that the steamer Hakone Maru which will arrive here, on Tuesday en route to Bombay has been fully booked for the return voyage from Singapore to Japan. due to the fact that she will be the last Japanese passenger vessel to leave for Japan prior to the diversion of the passenger lines from Singa- pore.

Asama Maru Fails To Show Up HONOLULU, July 28 (UP~.~ The Arama Maru did not appear off port at noon in accordance with her schedule. Unofflelat quarters understand thing the shit is walling about 500 milles to the West.

Tense Peiping

Reactions In

A New Shipment of JIG-SAW PUZZLES

By The Chad Valloy

Prices from

$1.75 to $12.50 Amuse yourselves during this tiresome weather,

WHITEAWAY'S

AIRFIELDS

FOR JAPAN IN SOUTH INDO-CHINA

HANOI, July 28 (Reuter).—Japanese troops began disembarking in southern Indo-China to-day, it is officially announced. The Japanese are allowed to use cight aerodromes under the agreement, including Saigon and Siemreap near Ankor on the new Thai border.

The strength of the troops is not disclosed.

The disembarkation was begun at Nhatrang, just (north of Camranh Bay.

The aerodromes to be utilised, in addition to Saigon and Siemreap, are Nhatrang, Tourane in the middle of the Annam coastline, Biendhoa near Saigon, Soctrang at the mouth of the Mekong, Kompongtom near the Great Lake in Cambodia and ¡Pnompenh, the capital of Cani- | radio request, 180 milltary lorries

bodia.

had arrived from Hanol..

The vanguard of the main bodies of Japanese troops, belleved to be on four transports and four des- Troyers, will arrive in Salgon Wednesday.

Vanguard On Transports SAIGON. July 28 (Reuter)The Japanese Military Mission in Saigon stated that as a result of on urgent

Atmosphere:

Shanghai

SPECIAL TO THE "TELEGRAPH”.

The

PEIPING, July 28 (UP).—The atmosphere in the foreign community is tense and rumours are abundant, including one that foreign banks will be taken under control to-morrow. ZURICH, July 28 (Reuter)-Ger-Yokohama Specie Bank has suspended payments of British and American accounts and only man propaganda expusing the slow the National City Bank is buying U.S. dollars. The American and British Embassies have not

advance on the eastern front con-

00

the

news-

floues to emphasise the

the diMculties the troops are encountering.

conditions Describing Finnish-Hussan frontier, the Berlin correspondent of the Berne paper

"Bold" says:

says: "An endless column of heavy laden soldiers march gasping and cursing through a night- more of endless forests. There are no roads, no communications, no lorries and no motorcycles. Only the absolute essentials of equipment are carried, overconts and blankets

Nations Lining Up Against Japan

Special to the "Telegraph”

For the past two days the Soviet

WASHINGTON, July 28 (UP).—Political circles are high- communiques have dropped their adjectives, "intense", "nerco" und being left behind although the nights ly pleased over Batavin's invocation of economic reprisals against "stubborn." and increly reported are terribly cold and damp. The Japan. The action is particularly welcomed because it creates a "Bathting."

days are frightfully hot while mile solid front of resistance among the nations having vital in- A luh has descended 171 other tons of torturing mosquitos shot down on July 20. Our losses fronts where there was nothing of round the labouring soldiers' heads terests in the critical south Asiatic zone where Japan has

-omisequenter~15-report

cxpanded

"In all, 109 German planes were

were 30-

"The Baltic coastal defence sank a torpedo boat, and two patrol boats. ing. Constanza and continued We lost one torpedo boat,"

The Red air Beet resumed bomb- Wading Through Swamps The impression is strong here AXIS PLOT

porta.

15

STILL GRIMLY night when the Luftwaffe falled to

DETERMINED

BECOMES A FLOP

"Often the soldiers must wade that all democratic nations with hummer enemy columns and air-knee-deej through black swamps.

"These forests provide the best interests in this region have The Muscovites enjoyed a quiet cover for the Russians, for the Ger-jointly "drawn a line" against

mans

the enemy. As further see cannot appear after Ave Buccessive night

Japanese expansion soon as the Germans enter a forest, ralds.

they meet with a withering fire from southward and, in effect, have Communiques Analysed the Russians from trees here, there, notified Japan to expect resist NEW YORK, July 20 (UP). The everywhere."

ance of a sterner type if sho LONDON, July 28 (Reuter). German High Command has report- Another difculty, the correspon-undertakes any new adventures. Further light has now been ed that a great victory looms in the dent continues, is "Soviet forts con~

Many experts were of the opinion shed on what was intended to be Smolensk tector, but Moscow reports structed as part of the landscape. indicate that the fighting around They are so well camouflaged that that Japan must

now expect to a great offensive in political war- The encounter concerted force if fare timed by German strategy Smolensk and elsewhere has taken a they are Caslly overlooked.

the Dutch NEW YORK, July 28 (UP).—favourable turn for the Soviet Union. ground in front is sown with mines, altempls on attack on

East Indies or Singapore,

to coincide with the military com- com- George Kidd, "United Press" The German and Soviet

customary

Stalwart Defence

Hint to Latin America the

attack on Russia, writes the muniques present correspondent who has been in contrast os thu battle along the Describing an attack on one such WASHINGTON, July 28 (Reuter). "Sunday Observer's" diplomatic Europe during the past five 1,000-mile front enters its 37th day, fort, the correspondent says: "TheMr Sumner Welles fo-day intimat-

correspondent. years, said on his arrival in New The Naz: High Command said that TURN to Back Page, Column 4 TURN to Back Page, Column 3

all altempts by the Soviet forces to York to-day that the German

break out of the encirclement around

German Attitude Towards War

SPECIAL TO THE "TELEGRAPH"

mined to carry, on the war.

people still appear grimly deter- TURN to Back Pago, Column 3

TWO JAPANESE

He sold the German people were confident of defeating Russia, des-

pile the

1

Iri apparent delay

Ore

srighat time schedule due to Russian PLANES DOWNED

resistance.

"Some unoMetal German quarters

the campaigu

at the beginning of

SPECIAL TO THE "TELEGRAPH"

CHUNGKING. July 28 (UP).--14

China's Assets

China's Assets Subterranean To be Frozen Fortification At Her Own Request Of Gibraltar

LONDON, July 28 (Reuter).

is reliably reported that two Japan-It was officially confirmed in heese planes were shot down by Chin- London

sald that they expected Russia to be defeated within six weeks,"

stated,

to-night that

[BY "REUTER'S" SPECIAL CORRESPONDENT)

The broadside military attack on Russia on June 22 was calculated at once to force Japan and Spain and then Turkey Into war against the British Empire. The lever to be used In the case of Japan and Spain was the revived Communist bogey, and in the case of Turkey a new demonstra tion of the Axis invincibility. Communism Lever

On July therefore. Germany and Italy gave "de Jure" recognition to TURN to Back Page, Column 5

become slightly mare restricted after was found near the city of Pishan, 40 to freeze Chinese assets in hastened during recent weeks Democracies

miles west of Chungking.

reason

the GIBRALTAR, July 28.-Im- ere pursuit planes in severe air Chinese Government has re-provements of the fortifications Mrs Kidd, who kept house in Ber- bottle in the vicinity of Chungking. lin, sald that the food situation has The wreckage of both machinesquested the British Government here have been considerably

two years of war.

Britain and the British Empire, and the training of personnel is Measures will be put into effect proceeding with great energy as shortly.

new war materials arrived, in- Tho

for The Chinese cluding a number Government's desire is that the devices, Japanese are in control of certain parts of China and consequently the assets of those territories. If the Chinese assets were to remain un- frozen, it would give the Japanese n loophole to continue trade with

A similar request was made by the Chinese Government to the Govern-

Hollanders Create Navy Dept. To Continue War

The only change in personnel is in the Defence Department. In view of the great importance

Britalia.

of new

Troops. participating in the exer- efses are about town daily while Brengun-carriers clatter through the streets day and night.

The Fort's air arm roars over the rack at all hours, keeping itself in full fighting trim.

"Network of Tunnels

Discuss Far

renewed their advice to evacuate, Bonds To Be Paid

on

British and American business- men, antleipating a peaceful occupa- tion, are remaining in Indo-China. Franco-Japanese Treaty

LONDON, July 28 (Reuter)—“A detailed agreement confrining the carrying out of un agreement between Japan and France for the joint de- fence of Indo-China was concluded fast Wednesday." It was announced by the Japanese Military Mission in Judo-China,

According to a "Domel" dispatch. from Saigon quoted by the Tokyo Radio, "negotiations for the conclu sion of this detailed agreement were started last Wednesday morning and were brought to an amicable

pm, the same dayclu

sion

On

The

ngreement was reached be- tween Major-General Sumita, head NEW YORK, July 20 (UP)The of the Japanese Military Mission, Japanese Financial Commissioner, and Vice-Admiral Decoux, Governor- Mr Tsuten Nishyama to-day stated General of Indo-Chino.

that despite the freezing of Japanese assets, interest and sinking fund pay- ments of dollar bonds will be met at cost.

estimated that

theso amount from $103,000,000 10 $138,000,000 but some are held by Japanese nationaly and agencies. Financial circles asserted that the ancunl cost of debt service on dollar bands probably would not exceed $12,000,000.

Nazis Protest Expulsion Of

Minister

Mr Nishyama said that he hoped the United States Government would LONDON, July 28 (Reuter). administer the freezing order in such The expulsion of the German a way as to facilitate payment,

Minister in La Paz, Herr Wen- Shanghai Reaction dler, has led to a second Note SHANGHAI, July 28 (Reuter) being addressed by the German The grave situation in the Far East Government has ousted the Russo-German war

the Bolivian

Referring to a document publish- ed by the Bolivian Military Attacho in Berlin, Major Delmonte, to Herr Wendler, the German Note describes it as "at first sight nothing more than a clumsy forgery."

TURN to Back Pago, Column 4 Government. *

LATEST

Finns Break

With Britain

to

to

The Note goes on to point out that Herr Wendler immediately tele- graphed to Berlin, stating that he had never received such a letter and had never entered into any kind of com- munication with Major Delmante, LONDON, July 28 (Reuter)-|

New Grounds Finland has requested the severance I1 adds that Major Delmonte of diplomalle relations with Great declared the German Foreign Britain, it is authoritatively stated in Office that he had never sent such a London.

letter to the 'German Minister nor The

Finnish Foreign Milster has had he ever sent him any letter or honded an "aide-memoire" to the received one from him. British Minister in Helsinki inform- The ing him that as Finland is

German Note "Major Delmonte fas

concludes: Co- belligerent

cxpressed a wish to make his declaration in the normal diplomalle relations between public. In the face of this, the Great Britain and Finland

German cap

Note must

must declare that the hardly he maintained.

Bolivian Government, at the Instiga-. In reply to Mr Vereker's question tlon of a third party and without any

attempt at whether this statement meant that

the facts, have explaining lent Finland was requesting the severance against diplomalle representatives

themselves to

procedure of diplomatic relations, the Finnish

of Foreign Minister replied that this Reich of a kind unparalleled In International relations. The German Government once more sharply.pro- test against this,"

WIS BO

with

Gerinany,

East Position Angry Evacuees Meet

NEW YORK, July 28 (Reu- ter) -Lord Halifax, the British Ambassador, called upon the Acting Secretary of State, Mr Sumner Welles, at Washington to-day for the purpose of dis-

In Sydney Flat

The task of completing the amaz-cussing economic measures to fiery protest meeting of six angry women evacuees from Hong- A Manly But recently was the scene of an unofficial but ment of the United States who haveing network of tunnels continues be taken against Japan.

night and day unceasingly, the troops

kong and a discontented husband on leave in Australia accord- already taken the necessary steps.

He told a press conference

Residents of China

attached, particularly in the preparation of a solution of problems quest of the Chinese Government ins

LONDON, July 28 (Reuter). The determination of the Netherlands Government to hold no parley whatsoever with the Nazi regime is re-affirmed in an announcement stating that Queen Wilhelmina has approved a number of ministerial appoint- ments.

continue to be directed to partici- paling most energetically with the Alles and United States in the

thus engaged coming from all parts that a review of the Far Easterning to the Sydney “Sun”. ."> London, July 20 (Reuter)-It was of Britain and Canada. They operate prosecution of the war, regaining

complete independence and the officially announced that at the re- in eight-hour shifts, 24 hours daily, situation was intended in the "We've had a dirty deal with "Every Hongkong nowspaper we

Sunday.

light of the Japanese move into this evacuation," they told aget has a cartoon making fun of us,"

said her sister, Mrs. F. C. Brown, which will occur after the war. and in order to assist China's finon-

uncoded barracks retaliatory measures by

the Rock Indo-China and the swift "Sun". reporter: "We're fod

"I'm fed to the, back teeth," said No Talks With Hitler cial position, the Treasury has issued now Neither discussions nor negotiations directions blocking sterling balances capable of housing thousanded United States and British Em-hongkong poilco depart who has had her Arst baby since she

the up."

Mrs K. M. Clarke, whose husband. The husband, Mr F. C. Brown, also is a pollee sub-Inspector and with Hitler and his conspirators, it is and other astels of persons realdent men. There IA stated will be entered into. Every in China.

hospital, an electele power generat-pire countries.

ment offelal, said: "It's been no arrived here. This department will function effort which the Kingdom of the The directions come into operation Ing system and cook-houses. Vast

N.E.I. And Britain

pleasure coming down here for a "We are desperate and ander Vice-Admiral Furstners, who Netherlands is capable will be made as from the opening of business on quantities of oil, water, food, tobacco

heart was Chief of Naval Staff in 1930 and in order to assist in the liquidation of July 20. Generat authority is given and oven bolled sweats have

LONDON. July 28 (Router)The holiday. I've been very surprised to broken," said Mrs II. B. Dewar, beca 11s year was made Commander-in-the present day Nazi German Wednes-authorised on behalf of the Chinese

Far Eastern situation was discussed find out the conditions under which "It's been tough going," sald Mra for any payment In a sterling area stored in subterranean tanks.

In London to-day between Mr. Hongkong wonen evacuees aro liv-|A. Mackle. Chlef in European waters.

Queen Wilhelmina

Working in dusty tunnels has not

"We have justification for grous“ Netherlands

Anthony Eden, the British Foreign ing and how unhappy they are. Government day address, through the medium of Government as well as payments injured the men's health which 1# Secretary,

Dr E. Nyan "We're prisoners here," said Mrsing," said Mrs G. Caltenful!, reiterates that the entire conduct of Radlo Orange, all Netherlanders innecessary for the fullment of cer- carefully guarded. In some Case | Kloffens, the Netherlands Foreign E. Orem, whose husband is a sub- There are still 840 British women affairs and method of working will Europe and territories oversens, tein outstanding transactions. the men have actually put on weight. Minister.

inspector of, the Hongkong police. TURN to Back Page, Column. 5

present circumstances, to the Netherlands Navy, a separate Navy Department has been created.

The

-

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