1936-12-16 — Page 1

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No. 29,525 HONG KONG, WEDNESDAY, DECEMBER 16, 1936 PRICE $3.00 per Mouth

SIANFU SURROUNDED BY TROOPS OF

SURRENDER DEMANDED GENERALISSIMO BELIEVED TO

BE IN GRAVE DANGER INITIATIVE MAY PASS FROM CHANG TO THE YOUNGER REBEL LEADERS

Nanking, To-day.

It is announced that Sianfu is now completely surrounded by Government troops and aeroplanes dropped leaflets on the city yester- day calling upon the rebels to surrender their captives.

Mr. W. H. Donald, the Generalissimo's European adviser, de- nied that General Yang Hu-chen is leading a counter-revolt against the rebels but described a dramatic interview between Marshal Chang Hsueh-liang and Generalissimo Chiang Kai-shek, in which the former entreated the latter to accept his proposals, particularly the al- liance with the Soviet against Japan. The Generalissimo, however, declared that this was impossible at the present.

A later report states that Mr. Donald sent a cable message COUNTRY BEHIND to the effect that extensive negotiations will be necessary to se-

CHIANG

ASSURANCES OF

LOYALTY

EXPEDITION AGAINST

CHANG URGED

~CHINA MAIL" SPECIAL

Nanking. To-day.

·

cure the release of Generalissimo Chiang Kai-shek as the rebels, are evidently determined to exploit the possession of their valu- fable hostage in order to force the Government to make conces- sions. The danger is that the initiative may pass from Marshal Chang Hsueh-liang to the younger rebel officers, who might de- cide that the general disruption of the country which would fol- low the death of Chiang would be favourable to their aims. ---- Reuter.

Canton: The safety of Gea-] eralissimo Chiang Kai-shek was definitely confirmed after the return of his European adviser,

Wang Ching-wei - Returning

Canton: Hearing of the capture;

All ranking military officers Mr. W. H. Donald, to Loyang of Generalissimo Chiang Kai-shek have sent telegrams here laud-i ing Generalissimo Chiang Kai-from Sian yesterday afternoon. by the Young Marshal, Mr. Wang shek. Chairman of the Military It is stated that the Generalis Ching-wei, Chairman of the Cen- Affairs Commission and Presi-sixo is being detained in the tral Political Council, who is on private residence of General leave in Europe for medical treat dent of the Executive Yuan. and condemning the mutiny of Yang Fu-chen Pacificationment, has promised to return to Marshal Cang

China at once, so as to assist in Commissioner of Shensi, and is Hsueh-liang, according to official quarters

being guarded by the body-the management of the Chinese Government with Dr. E. H. Kang, here.

Marshal Chang

the Acting President of the Execu-¦ tive Yuan.

of

guards Hsueh-liang.

(Continued on Page 5)

Early Settlement 'Expected

Apart from messages from the loyal followers of the Gen- eralissimo, telegrams express- ing regret

over the Shensi affair were received last night! from General Lin Hsiang, Pa- cification Commissioner of Szechuen, General Lung Yum, Pacification Commissioner of gram to Rester, Mr. W. H. Donald, China, and the Mongol-Manchu- Yunnan, and General Li Chung- the European jen, Pacification Commissioner Generalissimo, expresses optimism From Our Own Correspondent.

Adviser of therian bandits in North China of Kwangsi

concerning the situation in Sian-

It is reliably learned that Dr.): Kung has announced that the Gov-{ ernment is carrying out its deter- mined policy regarding the Sino-j Japanese relations and the sup Shanghai: In an exclusive tele-pression of bandits, meaning the Communists, in North-western

To-day

Other general officers under fu and says that "unless unfore Generalissimo Chiang are agi-seen difficulties arise or obstinacy Wang Leaving London tating for a punitive expedition influences the situation, a settle- against the Young Marshal, who ment is likely within the next few is leading the revolt against days.” the Generalissimo and the Nan- king Government Union Newa talk

Students Denounce

Rebellion

ed

Gerzzava zrodDDIN

CENTRAL

The latest development in the diplomatic puzzle involving Europe concerns the zliance between Germany and Italy, a union which may have far-reaching political and military results. One factor which has cooled Premier Mussolini's former friendship for France, and brought Chancellor Hitler more in favour with 11 Duc, was the Franco-berler treaty because of the exity which Fascism has for Commitiam. It is yet too soon to determine what effect the new alliance will have, bar the creation of a solid bloc comprising Germany and Italy, together with their subservient neighbomx. Austria and Hungary, is something which has given the rest of Europe real cause for thought.

-KING GEORGE TO MAINTAIN RACING ESTABLISHMENT

London, To-day--Eis Majesty the King will continue to main- tain a racing, ext-blishment for breeding and stud purposes on the same lines as his father. He will also keep up, as far as pos- sible, Balmoral and Sandringham. -Renter's Bulletin Service. --

AVIATION PLANS

OF SOVIET

We Must Have 150,000

Airmen”

BETTER DISCIPLINE NEEDED

Suppoone Court

Carrier

Air-Conditioning

MEANS

Automatïe: Control af temperature, humidity and cire

of clean air in your home, office, or place of business.

"ANDERSEN, MEYER & COMPANY, LIMITED

Tel. 23091 Sole Agents

Tel. 28091 David House, 2nd Floor

GOVERNMENT

£65,000,000 GOLD PURCHASE

FROM EQUALISATION

FUND

REDUCTION OF FIDUCIARY NOTE ISSUE BY £60,000,000°

London, To-day.. The city is confounded by the Bank of England's large gold purchase of £65,000,000 from the Equalisation Fund and the simultaneous reduction of the fiduciary note issue by £60,000,000.

From a host of diverse opinions emerges the majority view that the action indicates the British authorities" belief that such a pressure on sterling as may be experienced through the with- drawals of French funds, and the possible resumption of the oat Bow of capital to Wall Street, could be counteracted by the em- ployment of the Equalisation Fund remaining in the form of vast gold holdings

It is pointed out that the time when the underlying trend of sterling is firm is the most opportune for re-establishing funds for freedom of action, as, after disposing of some of its gold holdings, the fund will be better equipped to arrest any un- desirable appreciation of sterling.

Mr. Neville Chamberlain, Chancellor of the Exchequer,

stated in the House of Com-

mons that it has been decided INSURGENTS

temporarily to increase the

amount of gold held in the

issue department of the Bank of England by $65,000,000.

Such a step by itself would mean a sharp expansion of the credit basis, which is not justi- ¡fied at present. Therefore the fiduciary issue has been reduc- jed by £60,000,000. Beuter.

Mr. Chamberlain said, "Such a step by itself would mean a very sharp expansion of the credit base,

DRIVEN BACK

AT BOADILLA

THREE ATTACKS LAUNCHED

FIVE HOUR BATTLE

London, To-day.

A fierce battle, reported to have

for which there is no justification lasted over five hours yesterday, at the present time. I have, there-took place in the Boadilla del Monte fore, at the request of the Bank sector, to the south-west of Ma- directed a reduction of the fidnei-drid, leaving over 200 dead in ary issue by $60,000,000 the powers conferred by the Car- Government lines.

under addition to many injured in the

rency and Bank Notes Act 1928, to thus limiting the expansion

The attack was one of the three small dimensions. I would add launched by the insurgents, and that there is no greater perman-in the Boadils sector the Moroć- ence in these arrangements than can troops and Gerinan countin- seem desirable, since the gents, who recently arrived to take The Soviet's plans for the carry-fiduciary issue may be increased charge, were supported by aero- ing out of a prodigious increase diminished at any time in fu-planes and tanks.

It is claimed that the enemy

"CHINA MAIL" SPECIAL

Moscow, To-day.

may

MARKET GARDENERS study the visions of the Act named "British were driven back in each instance in their air force are already be-ture, in accordance with the pro-

ON STRIKE

Responsibility Lies

With Dealers

Paris, To-day.

maximumz extent, in accordance Wireless Service

with the resolution formulated at

the recent Soviet Congress: "We 40-HOUR WEEK

must have 150,000 airmen.”

IN ITALY

with heavy losses-Reuter

BED CASUALTY LIST

Paris: The Red. lossen during the last three weeks of fighting in jand round Madrid ́is estimated to be in the region of 5,000 dead and according to the casualty, list issued by the Flead- (quarters of the Red Sparigh

Army, states.

Pre message "to the Paris Midi from their Madrid cor- respondent.

Compulsory Measure wounded,

For All Industries

Nanking: Mr. Wang Ching-

A dispatch from Kew, the Mr. Donald reports that in his wei, former President of the

Investin ́revals, stated that 71⁄21⁄2 yesterday with Marshal Executive Yuan and concur

times as ́many' airmen · will be Chang Hsuch-liang and his col-rently Minister of Foreign leagues, he was assured that the Affairs, who

Market gardeners have gone on trained in the Ukraine during the was obliged to strike but though there is a short-current year as compared to inst latter have no intention whatever leave his posts as a result of age of supplies of vegetables, the year and that Ukraine has set up of harming Generalissimo Chiang attempts on his life here a situation has not yet become acute 11 new zero-clubs.. Kai-shek.

Rome, To-day. Peiping: Even the students of

year ago, sent a telegram from Supplies festerday from gardeners

· Lively ́propaganda is being de- the North Eastern University, of for the first time, the Generalis-shek expressing concern over quantity.

Mr. Donald-adds that yesterday, London to Mrs. Chiang Kai-were only 10 per cent. of the usual veloped, throughout the Union in-

The Italian Council of Ministers which Marshal Chang Hsueh-liang simo discussed the whole situation the detention of her husband.

cluding the Caucasian and Central have now decided to institute a

SOVIET INDIGNATION Is the Chancellor, are against the with the Young Marshal. who

The 'gardeners gave the reason Asiatic republics. for inducing 40-hour working week in all fields; revolt.

Moscow: Considerable irritation The former official announc-why they went on strike--because youth to join the air organisations of industry with the provision

A leading article in the Investia that in the cases of industries has been caused here over the in the telegram that he the cost of production is higher would leave London to-day for than the price paid for the goods throws light upon the present state which must operate without inter-holding up of Soviet ships in the China. Appointed as Chairman by market dealers-Beuter's Bul-of the Soviet air armament when ruption the time may be increas-Mediterranean, this being reffect

it states that although Enssia to ed 42 hours.

led in a leading article in the of the Central Political Coun-letin Service. Gen. Yang's House, Mr. Wang is utilising the

most Farmers in Algiers will dis-day possesses the world's

Prieda Up to the present · 17 · This measure will require 20 present situation to return to continue their vegetable shipments powerful air force and 167 lying special changes since it has been ships have been stopped and Nanking: A. Sianfa telegram the political area. One of the to France as from to-day. Trans- clubs, yet much must be done to from Mr. W. H. Donald, European bullets lodged in his back has Ocean Service.

improve the discipline and train-in force, generally, for some time

past-Trans-Ocean Service. adviser to Generalissimo Chiang not yet been removed, and he

ing methods in order to opercome The students have also sent

Kai-shek, stated last night that is still being treated by several

the present extraordinarily large telegram to Marshal Chang Hsueh the latter and his colleagues are Harley Street specialists, it is

number of accidents, which, the TELA-VIV HARBOUR lang addressing him as "our tea imprisoned in the home of Gen-learned Union News.

The Communist spectre alarms newspaper says; is the outcome of cher and expressing amazement eral-Yang Hn-cheng, Pacification

Japan, and Chinese opinion must too superficial training. be perturbed by the serious re-Ocean Services volt in Kanst, yet it is far from

The Students' Association of the Law and Literature Depart=|| ments have sent a cable to Nan- 'king declaring that the Young

Marshal has acted in collusion with) the Red bandits and urge the Gov- crament. to send a punitive ex- pedition against him to "vindicate law and discipline."

afterwards conferred with his col- leagues-Reuter.

Generalissimo At

at his action and asking him to Commissioner of Shensi release the Generalissimo)"= Mr. Donald added that he would General Fu Tsoi-yi has sent leave Sianfn for Nanking this cable to Nanking stating that the morning by aeroplane to report

events in Sian, have made no dif-

he is pushing on against the Reda

according to plan. Reuter.

on his interview with Marshal

Japanese Government Should Be Pleased

Trans-

PRESS SUPPORT FOR GENERALISSIMO

Under Consideration

By British Govt.

London, Today.

searched in a manner which is alleged to be a violation of Inter national Law, states the journal, which added that in every case-

the ships proved to be barmiess transport vessels.

[Continued on Page 10)

CABINET MEETING TO-DAY certain that Mardial Chang Hauch-liang cherishes any but

London To-day-The House of purely personal and predatory

Asked in the House of Commons Commons, which will adjourn on London: The Young Marshal's ambitions. He has expended a ference to his campaign and that Chang Haneh-hang. It is not stat treachery has perhaps saved the great part of the fortune with lists Association in Nanking has to take any steps to provide a ceas, will meet again on January Canton The Chinese Journa- whether the Government proposed Friday next for the Christmas re- ed whether he succeeded in secur Japanese Government, Rys the which he retired from: Manchuria declared that all the Chinese harbour at Telaviv, Palestine, the 19. The usual weekly meeting of tag the release of the Generalissimo, Times in commenting on the son a large and disorderly, any newspapers in the country are Colonial Secretary said that the the Cabinet will be held to-day.” while General Changeling tuation in China. Their Chinese and he believes that he can supporting the present policy of question is being considered by it is expected that the Prime is said to have remained firm. (“

A later report stated that Mr. many had incurred the criticism his warlords by this

policy and agreement with Gen tract, better terms for himself and the Central Government object the Government in consultation Minister will afterwards » go to London, To-day: The death is Shao Yuan-chang, a loyal suppor- of many politicians but the

ing to the introduction of Com-with the High Commissioner to Chequers for a few days. He will reported of Indy Bowes-Lyub,ter of the Generalissima, died of

and app wife of Sir Francis Bowes-L

the wounds sustained during the position has momentarily been

confounded Candean-Paunt of Her Majesty} shooting on Saturday: moming....

Queen Elizabeth-Beuter.

LADY BOWES-LYON PASSES

Foot of Next Col)

Whether he succe

public to help/in

the Palestine, LL-Gen. Sir Arthur G. leas

Condon pe

the re Way

that he was not forto

Christmas