1938-01-27 — Page 1

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12mary, Supretes. Court

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CHINA

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IN THE FAR EAST.

ESTABLISHED 1845.

No. 29,848

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THURSDAY, JANUARY 27, 1938

JAPANESE

Price: 10 Cts.

AUSTRALIA'S CHOICEST

BUTTER

MILITARIST

CHIEFS DISCUSS BRITAIN AS

Cost Of China War Causing Tokyo Apprehension

Tokyo, To-day.

ས

The question of whether Japan is able, economical- ly, to continue the China campaign and at the same time to provide funds for consolidation and development of Manchukuo and North discussed with some apprehen-

China, is hangse financial and industrial cir-

cles.

These discussions found an echo in the Diet yester-

day, when various awkward questions were put to the Government by M. P.'s who obtained no answer from Government spokesmen.

MOSCOW

BREAKS POSTAL

RELATIONS

WITH JAPAN

Moscow, To-day.

The Soviet has decided tem-

JAPANESE HARASSED BY GUERILLAS

Shanghai, To-day. "We are having considerable difficulties owing to Chinese guer- illas,"

Japanese admitted a spokesman last night.

Both north and south of the Yangtse, the spokesman said, many detachments of Chinese ir- regulars are harassing Japanese troops-Trans-Ocean.

AN ENEMY

"Unless Japan peels off the thick skin of the Bri- tish for all Orientals to

see, eternal peace will not dawn in East Asia,' asserts Vice- Admiral Masataka Ando.

""

"War between Japan and Bri- tain is not likely, but if it broke

LIFE AND DEATH out Japan Gould have litt

STRUGGLE AT WUHU

to

de-

clares Rear-Admiral Toma Uema- tsu (reserve list). "For the British land forces don't count. They learn to march in dance- halls and are not a match even for the Chinese.”

"Yes!" says Rear Admiral Sosa, Shanghai, To-day. "the British were în a quandary in the More than usual significance is

Chinese and Japanese troops World War. The Government tried to attached to the public admission by

in a life and death infuse a spirit of patriotism into the the Finance Minister, Mr. Kaya. are locked

hearts of the people, but few would

that

and fight for their country. the Japanese Government struggle for possession of Taku enlist

Mostly Indians were sent to the West- wants foreign credit.

Mountain, dominating Wuhu.

An official Chinese report says ern Front, Canadian volunteers and Australians. In every war, the British He declared in the Diet yester- that ten Japanese warships have have always used the armies of other day that the Government is con-fired more than 1,000 shells into lands to fight their battles. The British sidering ways and means of ob-the Chinese positions in the past Navy is quite strong, I should think. the taining foreign capital for rapid 24 hours, and asserts that 10,000 It is formidable compared with

Army."

"Cut Britain off from the Far East. expansion of industries, but has Japanese troops have arrived to no definite plan at present.

reinforce the Japanese garrison That's my motto," declares Vice-Ad-

Reuter. of Wuhu

(Continued on Page 6)

SUGGESTION REJECTED

that part of

the

A suggestion

porarily to break off all postal gold reserves of the Bank of Ja- relations with Japan forthwith.

The decision affects mails in transit as well as direct mails between the two countries.

Reasons for the Soviet action are

pan

be used for investment in China was rejected by the Minister on the grounds that it is absolute- ly necessary for Japan to retain al ther gold re

reserves.

the alleged detention of a large The growing control of the State quantity of Soviet mail in Man-over Japanese industry is clearly churia and detention of a mail indicated by the new national mo- plane which was forced to land in bilisation law announced yesterday. Manchukuo on December 19.

"Mail posted to Japan in foreign

countries to-day will be the last to

ALL-EMBRACING

be accepted for transit across So- viet territory, while mail from Japan to other countries which at present is in Soviet territory will be forwarded to its destination. being to the present conflict.

The law provides for mobilising all the nation's reserves during time of war, but it is declared that it will not be applied for the time

The postal administrations of those countries with which the So- viet has agreements, also the In- ternational Postal Bureau and the Universal Postal Union, have been notified of the Soviet decision. Reuter.

Enquiries at the General Post Office in Hong Kong re-. veal that as the result of the Soviet action," it is “almost cer-- tain" that the Siberian mails between London and Hong Kong will be stopped,

Industries to be mobilised include not only armaments but also com- merce, shipping, railways, commer- cial aviation, electricity, oil, materials and machine, factories.

raw

-In other words, the law can be extended to cover every branch of Japanese. industry and will further empower the Government to permit wage or price increase competition, press control and direction of the financial policy of corporations and limited companies. -Trans-Ocean,

Be sure the name

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