1938-01-08 — Page 1

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No. 29,832

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SATURDAY, JANUARY 8, 1938

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BIG BATTLE

ALONG

AUSTRALIA'S CHOICEST

BUTTER

PENDING

LUNGHAI LINE

Enormous Extension Of Japanese Troops In China

PEACE

NEGOTIATIONS

OUT OF QUESTION

Shanghai, To-day.

The Japanese Ambassador to China, Mr. Kawagoe, in an inter- view yesterday, declared that

negotiations with

the

peace Chiang Kai-shek regime were out of the question, and Japan_should repudiate the National Govern- ment.

Formation of a new government in Central China was a necessity. which should be protected from pressure by the National Govern- ment Reuter.

PLAIN FACTS OF JAPANESE INTENTIONS

London, To-day.

The "Daily Herald," comment- ing on the declaration of the se- cretary of the Japanese Cabinet that "Japan will go ahead" in the Far East, talks of the Japanese dream that Japan is supreme

boss.

Military Jugular Vein Of China At Stake

The Japanese armies are “enormously extending,” according to qualified observers, who point out that the dispositions of the Japanese forces comprise an area greater than the combined European fronts in the Great War.

The Japanese are believed to have more than

350,000 men spread over vast area in China.

JAPAN'S PLANS

FOR NORTH CHINA FINANCE

Peiping, To-day.

The "provisional government of

the republic of China," recently established under Japanese sus. pices, announces formation of committee of eight local bankers for the purpose of creating a joint re- serve bank.

It is semi-officially

ated that

As a result of troop movements, the number of sol- the new bank will have a capital of

diers in the immediate vicinity of Shanghai has now been reduced to about 6,000.

approximately $3,000,000 and will issue new currency linked with the yen, and the Manchukuo dollar. Reuter.

Main operations at present are concentrated on the battle for the Lunghai Railway, "militari- ly China's jugular vein," which connects Sian-JAPAN fu, capital of Shensi, with the seaport of Hai- GETTING chow.

east

line

Railway, the Chinese have aban- CAUTIOUS? Two Japanese armies, totalling doned their plans to hold the

of Hsuchowfu, and are en-

Shanghai, To-day. about 60,000 men, whose ranks

Reliable reports state that aban- have been steadily swoollen gaging in blowing up all important

Or in Haichow, just structures

as donment

of postponement have been

Japanese invasion of South China with reinforcements,

The defence works along the is explained by determination to advancing from north and south they did in Tsingtao. in the past week along the

their Lunghai line were built under Ger- avoid possible repetition of inci- Tientsin-Pukow Railway,

man guidance but an unhappy fea-dents such as took place on the

(Continued on Page 24)

Yangtse. Trans-Ocean, objective being Hsuchowfu.

KWEITEN EXPOSED There is no room for an inde- The army from the north is now pendent Chinese Government, no heading for Lincheng, but sudden room for Western nations, and abandonment of Tsining by General

that fact sticks out in sharp Han Fu-chu's troops, exposes Kwei-

black above the snowstorm Japanese apologies. -Reuter.

SYMPTOM OF ANESE TENSION

of teh, on the Lunghai line, west of

Hsuchowfu.

London, To-day. The attitude of the Japanese au- thorities in Shanghai is sharply cri- ticised by the evening papers here in connection with the maltreat- ment of British members of the In- ternational Police Force.

The next move, therefore, may be an attempt to isolate the Chinese troops concentrated on Hsuchowfu, compelling them to re- tire westwards along the Lunghaj Railway to Kaifeng and Cheng- chow, in Honan, in order to form junction at Chengchow with Chinese force on the Peiping-Han- kow Railway, where strong de fences have been prepared.

KWANGSI DIVISIONS Chinese troops in the Hsuchowfu area are estimated to total about 100,000, including three "Kwangsi The papers unanimously regard divisions under the command of the new incident as a symptom of General Li Tsung-jen. growing, tension between Britain and Japan.-Trans-Ocean.

These troops have plenty of courage and fighting spirit but are severely lacking in artillery.

Non-Official Justices of the It is estimated that China's total Peace who are expecting to be artillery is barely sufficient for absent from the Colony for any two divisions, whereas the Japan- considerable part of the current ese have full artillery support for year are requested to notify the the seventeen divisions already in Chief - Ølerk, Colonial Secretary's China, Office accordingly, and to furnish at the same time the dates of their intended departure and return,

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