1938-01-17 — Page 1

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THIRD EDITION

CHINA

OLDEST NEWSPAPER

IN THE FAR EAST.

ESTABLISHED 1845.

No. 29,839

INSIST ON

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MONDAY, JANUARY 17, 1938

Price: 10 Cts.

AUSTRALIA'S CHOICEST

BUTTER

FORMAL RECOGNITION OF PEIPING GOVERNMENT Rumours Of Yangtse Valley Government Quashed

RECALL OF AMBASSADOR WITHIN FEW DAYS

U.S. NAVY TO WEAR CLOAK OF SECRECY

Washington, To-day.

The Navy Department will no longer publish periodical reports on the strength of the United States. Navy with the number and names of ships under construction, ac- cording to reliable sources.

the Senate this year will not issue the customary statement on the comparative strengths of the world's leading navies, in which extensive information regarding the United States navy has been given in the past.

TOKYO BANKERS PRESS FOR PEACE

Tokyo, To-day.

-RECOGNITION

OF NEW "GOVERNMENT"

~Tokyo, To-day.

The "Hochi Shimbun" declares to-day that Germany and Italy have informed Japan unofficially of their intention of recognising. the "provisional government of China” at Peiping.-Reuter.

That Japan will shortly formally recognise the "provisional government" of Peiping, was the opinion expressed this morning by political MANCHUKUO circles when questioned regarding the decision of the Imperial Conference to cease dealings TO RECOGNISE PEIPING BODY

with the National Government.

This quashes rumours to the effect that Japan was aiming at formation of a new Government in the Yangtse Valley.

a

Shanghai, To-day, Reports from Hsinking state that the Manchukuo Govern-

ment, in a proclamation yester- day, expressed approval of Japan's policy and announced refusal to deal with the Chiang

The Naval Affairs Committee of Recall of Mr. Kawagoe (Ambassador at Shanghai) and appointment of an Ambassador to Pei- ping, for which post Mr. Kawagoe may be

Kai-shek administration. chosen, are forecast within a few days.

Manchukuo, the proclamation Meanwhile, Japanese banking tension of the campaign to stated, only recognises the “pro- circles make no effort to hide South China..

visional government of the re- In addition, the United States their anxiety at the country's "South China will prove public of China” at Peiping. will furnish an armaments section financial situation as a result of hard nut to crack," he stated, It is reported that Manchukuo to the League of Nations with less the extended hostilities in "and it will cost us more than will formally recognise the Pei- information for publication in the China, and it is believed that we

Our Own ping - League's armament book.

prominent bankers have Britain and France will continue pressing the Government in the to receive full information, how-past few days to conclude peace ever, by virtue of the London with General Chiang Kai-shek Naval Agreement. It is under-even at the price of concessions. stood that this information will not be passed on to other countries,- Reuter.

MR KAWAGOE ADMITS RECALL

Shanghai, To-day.

Mr Kawagoe, Japanese Ambassa- dor to China, admitted in an inter- view this morning that he had been

OPPOSITION TO SOUTH

CHINA CÀMPAIGN

can

afford.

been Correspondent.

"Japan is more than willing that peace be restored in the Far East," one banker declared this morning, "owing to the huge amount of money she has spent and will undoubtedly con- tinue to spend."

The banker intimated that financial circles thought that military operations should be definitely suspended, and ex- pressed strong opposition to ex-

recalled to Japan, and added that SHANGHAI

he would leave for Tokyo shortly.

Stating that he hoped "peace

BOMB

would be arranged "very soon," Mr. INCIDENT

Kawagoe said that Shanghai -had become the gateway to North and Central China.

Shanghai, To-day.

Two unidentified men threw

The Chinese Central Government and the Communists, he stated, had bomb in the branch office in Shang- -combined to continue an aggressive hai of Domei, the Japanese news

attitude towards Japan, and there agency, this morning.

fore Japan would be forced to con-- Three Japanese In the office were tinue her present policy towards injured, while no arrests were made. China -Our Own Correspondent. -Our Own Correspondent.

government” ously with Japan. Correspondent.

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