1932-12-12 — Page 1

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No. 28,288

HONG KONG, MONDAY, DECEMBER 12, 1932.

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BRITAIN TELLS AMERICA WAR DEBT WILL BE

POWERS AGREE

UPON FORMULA

OF ARMAMENT

Germany Pleased With: Success.

FIVE POINTS SETTLED.

Berlin, To-day.

The new Geneva formula is hailed -as a great success for Germany's disarmament policy.

The telephones with Geneva were in constant use on Saturday night and Sunday morning, and Baron von Neurath spoke to Gen- eral von Schleicher several times for long periods, ·

FURTHER OBJECTION FROM US.

FUNDING AGREEMENT AMERICA'S

CAN'T BE BROKEN

INSTALMENT OFFERED AS CAPITAL PAYMENT

WASHINGTON BALKS AT PLAN.

LONDON, TO-DAY.

GREAT BRITAIN HAS INFORMED AMERICA THAT SHE WILL MEET HER DECEMBER WAR DEBT PAYMENT WITH GOLD, BUT HAS POINTED OUT THAT THE INSTALMENT RE- The Chancellor saw President PRESENTS A CAPITAL PAYMENT AND SHOULD BE TAKEN Hindenburg during the evening and immediately afterwards INTO ACCOUNT AS SUCH IN ANY SETTLEMENT ULTIMATE- Baron von Neurath was instruct- LY REACHED BY THE TWO NATIONS.

ed to sign formally an agree- ment with the other four powers) assembled.

The United States has replied to the note, and once more il ob-| The new formula jects to the plan advanced by Great Britain. The United States means to German officialdom] Treasury cannot accept any payment except under the provisions of that Part Five of the Versailles Treaty can now only be maintain the present debt funding agreement, Secretary of State Henry L. ed if its stipulations apply equal- Stimson has told London.

ly to all nations participating in Disarmament Conference.

the

ANSWER TO

DEBT NOTE

Administration Feels Much Easier.

SYMPATHY FOR BRITAIN,

Washington, To-day. Great Britain's decision to pay the war debt instal- ment on December 15, ap- parently is a relief to the administration and is view ed as placing the President In a favourable position for the forthcoming debt mess- age to Congress,

The Administration is most sympathetic towards the British situation and the decision to pay is considered wise," particularly In view of the hosille attitude display- ed by Congress up to now to wards any debt revision, The American reply to the day, places the administration's British note, despatched yester

Whether this attitude will prove a further stumbling block m Germany holds herself free to the way of the debt negotiations, and whether Great Britain will withdraw from the Conference pay the December instalment under any conditions other than those should the principle of equality which she has offered to America, are problems which are not disposition in a clearer light. in arms be disputed in respect to technical details.

Should difficulties arise in res pect of the carrying out of the principle, it is contended Ger

cussed by the notes of either Government.

The full text of the British note was made public to-day and the reply-from Washington has been announced in abbreviated form. many would be in an advantage. Great Britain will pay in gold payment of war debts, due Thurs- ous position, being able to point her December war debt instal day next. Britain will pay in full to the flagrant violation of the ment to the United States, de- agreement.

Full Agreement.

London, To-day.. Full agreement on the future procedure of the Disarmament Conference was reached by the Five Powers at Geneva at its closing session, Saturday, Bar. on Von Neurath having receiv. ed authority from the German . Government to accept the new formula which contains five main points.

These points are, firstly, that the Five Powers shall recognise that one of the aims of the Disarmament Conference is to assure equality of] rights to powers disarmed by the peace treaties; secondly, that Ger- many is ready to return to the Dis armament Conference; thirdly, that European powers will solemnly sub- scribe to a declaration that they will not in any circumstances resort to arms for settlement of any dis- pute that may arise; fourthly, that the Five Powers agree that the re- duction of armaments as provided by Article Eight of the Covenant to the lowest possible level com- patible with national security, will be brought about by stages, . and fifthly, that the work of the Con- ference will be continued.--British Wireless Service.

American Banks Criticised

It

but requires an immediate plan for discussion of war debts,

clares the new note to Washing ton. But the payment must not be regarded as the resumption of the

annual payments. must be treated capital payment, of which AC- British count should be taken in any final, settlement. The note urges' the]

Washington.

Later. Secretary of State H. L Stimson has replied to the Government, note: stating that the Secretary of the Treasury has authority to accept payments on the war debts except as provided by the funding agreement.

Text Of Notė.

no

The reply says the right is re served by Congress for a final decision in respect of changes in international obligations. The executive has no power to amend or alter these agreements and therefore "it should be under- stood that the acceptance by the Secretary of the Treasury of funds tendered in payment on the December: 15 instalment can- not constitute either the approval

Admiral von Raeder, Com mander-in-Chief of the Ger- man Navy, demands equality for Germany on the sen and déclares "The German Army cannot longer remain with the diminished rights of a second clnas power."—(§. & G.)⠀⠀

NEW POLITICAL

CLASH FEARED

Fort

TYRES

are made for those who

prefer

SUPERLATIVE QUALITY

PAID IN GOLD

www.STATESMEN

HANS BERTRAM ATTEMPTS NEW FLIGHT RECORD.

Hops From Port Darwin On 7-Day Race To England.

Port Darwin, To-day. The German aviator, Hana Bertram, scared up from the landing fleld here at 5.45 a.m. to- day, having announced his inten- tion of

seven daying to England within The young German flyer expects to lower the records set up be- tween Australia and England by anch famous airmen as Kingsford- Smith, Mollison, and Scott-Rex-

.ter.

WEARIED BY

ARMS TALK

MacDonald Heading Back To London.

BUT SIMON DELAYED.

Geneva, To-day. Premier MacDonald left for London last evening very tired after spending a couple of hours in Paris,

The Disarmament Conference has adjourned until January, al though the Bureau will meet this week,

2

The next important stop en-

Amy Johnson On visaged is a meeting of the Five

Record Flight

Powers on January 15, probably in London, which will be attend- ed by Mr. Arthur Henderson, who henceforth will attend all meet

Ahead Of Schedule Onings of the Five Powers.

Home Trip.

Benguella, To-day. Miss Amy Johnson (Mrs. J. A. Mollison), who left Capetown at 6 a.m. yesterday on an attempt to es- tablish a new Cape-England air re- {cord, arrived ut Mossamedes at 3.45

Mr. Norman Davis, Ameri- can delegate, goes to New York on Tuesday. His plan.. to embody measures for dis- armament has. up to now Europeans, This document been fully agreed to by the

will probably be discussed in London in January...

p.m., hours ahead of her schedule. Sir John Simon will be detain After refueling and brief rest, the ed until the end of the week over intrepid airwoman left on a non the Sino-Japanese issue. There stop hop to Duala-Reuters reason to believe things will

Miss Johnson, who recently beat]

not move. smoothly in the Com- her husband's flight record for the

mittee of Nineteen and that the houra, has been waiting for favour will come up early for discussion. able weather conditions before at¬

-Reuter. tempting present flight back to Eng- land.

IN KUOMINTANG England-Cape Journey by 10% non-recognition of Manchukuo

Canton Will Quarrel With Chiang's Plan

GENERAL LI RESIGNS.

General Li Chal-sum, Director or agreement with any condition General of Military Training in the or declaration of policy inconsist-Nanking Government, since Janu ent with the terms of the agree ment."

NOTED CHINESE

DIPLOMAT DIES

AT EARLY AGE

Stricken Following Reception.

HOST TO ADMIRAL KELLY.

[From Our Own Correspondent.] Canton, To-day.

JAPAN WANTS

INCREASE IN

NAVAL POWER

Proposals Arouse Little Comment.

Mr. Chu had been entertaining to 75 per cent.; her strength in

ary, has resigned his post, and arrived in Hong Kong yesterday on In other words, America's ac ceptance of the payment does not the s.8. Conte Rosso...

MEAN EQUALITY WITH U. S. mean that she will accept any When seen by the China Mall, change of terms in the present General Li said that his fli-health

Geneva, To-day. debt agreement.

had prevented him attending the London, To-day.

There is not much British offl- “The sum must be credited as Third Plenary Session of the The following note, was ad principal and interest as provid Keumintang, which is to be held in

cial comment on the recent dressed to United States Governed," says the note. "It would Nanking on: December 15. He fore-

Japanese naval proposals, but ment: His Majesty's Govern seem therefore undesirable that casted a further rift between the

The untimely death of Mr. Chu what there is emphasises that the ment, having received the note any steps should be taken which, southern and the northern parties, Shao-hain, Inspecting Commissioner proposals would increase Japan's addressed to them by the United by causing" a misunderstanding, when the Session, meets, and said of Foreign Affairs for the South-strength in capital ships from 60 States Government on December would increase the difficulty that that the arbitrary demands of western Provinces, is reported here. per cent, of the British strength 7. observe with satisfaction that must be overcome in finding an Marshat Chiang Kai-shek would not the United States Government ultimate solution satisfactory to be tolerated by the Canton de His Excellency, the C. in C. of China eight inch gun cruisers from 74 welcomes the suggestion for both nations."

legates, many of whom had declined station, Admiral Sir W. A. H to 88 per cent. and her present close examination between the

Kelly, K.C.B., C.M.G., M.V.O., at a submarine strength by 42 per two countries of the whole sub-! Mr. Stimson assumes that the to participate in the Session.

British note does not propose to

After a stay of four days in Hong dinner party, and shortly after the cént. ject dealt with in the British make the December payment Kong, General Li will proceed to party had dispersed, he collapsed They welcome any limitation

otherwise than in accordance with Kwangsi, where he will take the appropriate to reserve for this the terms of the funding agree complete rest ordered by his doctor. joint examination its comments ment, but that Britain, in her on certain of views expressed in note, is stating her views regard- the United States note of Decem-ng the steps which the British ber 7 but thinks it right to state Government may desire to pro- that after further careful con pose susequently, after the re importance of a debt discussion sideration it sees no reason to examination of the entire pro- with the United States, to con- modify the general conclusions blem of international debt. —-

Reuter..

· ́Mr:' “Al" Smith, one of the

leading Democrat lenders who oppose cancellation of the War Debts.

note of December 1. His Majes- ty's Government feels it will bej

clude before June 16, 1933; in set forth in the note of December

H. M. S. DEVONSHIRE AT SHANGHAI.

Battleships

and died, at 2 am of capital ships to 25,000 tons Mr. Chu, who was 58 years of but suggest that guns be kept age, bás occupied official posts for under fourteen inches. Reuter the past 20 years, and took over the Washington, To-day.ja post as Inspecting Commissioner for A State Department official de- | Foreign Affairs in April this year.clared that the Government did,

· Educated in the United States, not contemplate any action in he was appointed Consul-General at respect of Japan's naval strength MS. Devonshire of the Fifth San Francisco in 1922, and occupied proposals. He pointed out that Cruiser Squadron arrived in Shang- that post for five years, later being the proposals mean substantial order to obviate the risk of a gell-1.

hai on December 8 to relieve HMS appointed Charge d'Affaires in equality with the United States.

London, and later still, Chinese Reuter eral breakdown of the existings Majesty's Government will summoned to a small outbreak of fire day bound for Hong Kong. She

The Kowloon Fire Brigado were Cornwall, which left on the same Minister to Italy. He was a mem inter-governmental agreements. therefore in the present communica- which occurred at the Foo Wah Bak-1s duo to arrive during the week. ber of the League Assembly and Paying In Fall tion deal only with the last portion of ery, No. 11, Pel Hol Street, Shamshut-H.M.S. Suffolk, having completed Council in August, 1928. * the United States Government's noto, po, at 220 this morning. The flames her annual refit, left the Talkoo The Government la remitting which relates to the immediate ques were noon extinguished, and “ the full amount due to the Unit- tion of the payment on December 15. material damage was suffered No Dock on Saturday and is now at DOLLAR STEADY AS Washington, To-day.

ed States iu December, including that the United States Government Te

His Majesty's Government observes person was injared. Severe criticism of the Ameri-interest. This means it will not cognises the difficulties of can banking system was made be treated, as a budgetary pay-transfer. It rem by the Comptroller of Currency ment, in the sense that it won't no solution other than a suspension of Temaina. convicting cont out would of the United States in his an- be brought into the year's ac- debt

obviate these debt payment

It notes, therefore, with nual report count as an outgoing item, and no difenities.

He points out that in the first supplementary budget will be contained in the Bri | PALAK regrot that notwithatinding ten months of the year, 1199 quired.

thh note, the United States) Govern. banks, with deposita" of G$604,-

ment has decided not to recommend It is officially denied that 000,000 suspended payment.W

this

solution to Congress, France is lending gold to Britain In view of this decision, His He declares that the continued Improvement in business and the to assist her to meet the pay Majesty & Government has deter, whic

ment

Enormous Losses To

Depositors.

support of tho credit agencies. the Government will not by themselves correct the defects

that

adidas mined to make payment of the

amount due to

reparing Reply

New York, To-day

of the banking structure of the The Secretaries of State and of June

country Router

the Treas

and Mrgc

Mills are pre

wery to note which Britain's intentions.

No. 6 Buoy

China Refuses To Silence

Nan

ess

Broadcasts In Japanese

SILVER FALLS.

Pound Improves Since Saturday.

In spite of a slight decline. In

Condemned

U.S. Urged To Scrap Large Vessels.

Washington, To-day.

A bill proposing, thn all battle- | Manchukuo, the people In Manchuria silver prices,the local dollar re- ships of the U.S. Navy should be

find in radio receiving sets the most mained steady over the week-end decommissioned, was introduced In - convenient channel of obtaining and opened this morning at 1/8%, com

„House of Repre- such nowa.

Spot alliver, quoted on Saturday sen ves by Mr. James M'Clintic, Hyer the Japanese acting at 17%, fell 1/18, forward silver

believer in fast private declining a similar fraction

oi tão

pproach

the Chin-17%.

pound impr

Fat the