1938-05-20 — Page 1

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SHANGHAI

AUSTRALIA'S CHOICEST

BUTTER

ACCEPTS

FALL OF HSUCHOWFU Chinese Extricate Themselves Skilfully

TENSION Gallant Rearguard PEAK HOUSE

DENIAL

Paris, To-day.

Authoritative circles in Rome declare that the Franco-Italian negotiations are following their usual course,

Havas says the Agency correspondent, and they deny that a state of grave ten- sion exists between Italy and France. Reuter.

CHINESE AIR

Action Covers Withdrawal

Shanghai, To-day. Extricating themselves without serious losses, the last Chinese troops in Hsuchow withdrew ear- ly this morning, according to latest reports from the front from reliable sources, which in- dicate that Japanese occupation is now com- plete.

RAID IN JAPAN Street fighting was still going on in the southern

TO DROP LEAFLETS!

STRUCK BY LIGHTNING

NO. 401, THE PEAK, WAS STRUCK BY LIGHTNING,

!

DURING THE REMARKABLE STORM WHICH BROKE OVER THE COLONY IN THE EARLY HOURS OF THIS MORNING.

The damage was not serious, but the flash hit the roof and tore a small hole and put the en- tire lighting circuit out of action. The storm was accompanied torrential rain, which part of Hsuchow last evening. Detachments of by

caused temporary flooding in the Chinese rear-guard were making a desper-many parts of the city and Kow- ate stand with the object of covering the re-loon. In the 24 hours ended at 10 a.m. to-day, 3.75 inches of treat of the main body of the Chinese forces rain were recorded at the Royal The latest reports make it quite tion to start immediate operations Observatory, of which more than certain; however, that, if they have against Hankow seeing that only a three inches fell between two Hankow, To-day. not already occupied, it is now only comparatively small part of the and five a.m. Brief details of a sensational a few hours before the Japanese Chinese forces suffered a revers The main-body o' put themselves in complete posses-at Hsuchow. Chinese air visit to Japan,-with-nosion of this important railway General_Chiang Kai-shek's best other object than the dropping of junction which, for six months, has troops is concentrated on the west- border of Shantung where been the goal of their military ern

fierce fighting was still in progress operations.

With the same degree of certain- yesterday. ty, it can be said that they have failed to achieve their strategical objective which was the annihila fighting with a fury and obstinacy derate; cloudy generally, occasional

leaflets, is reported this morning.

"Chinese bombers raided Osaka and the Sasebo Naval Base early this morning, dropping tons of leaflets but no bombs.

en-

"The planes did not counter any Japanese pur- not suit planes and were fired on by anti-aircraft guns.

"The Chinese planes turned to their base safely."

Reuter.

re-

LEADING SOVIET FLIER KILLED

tion of General Chiang Kai-shek's picked troops.

THREAT EVADED

These elite divisions evaded the threat of Japanese encirclement and were moved westwards sever- al days ago leaving provincial troops to bear the brunt of the Ja- panese onslaught on Hsuchow.

Even these troops are reported to have made a successful withdrawal and to be, in the main, still intact.

There is an astounding discre pancy between the Japanese and the Chinese reports on the battle Babushkin, one of the Soviet's for Hauchow." leading airmen, and three other

Moscow, To-day.

The Japanese are making most men, were killed when their of the capture of this city. It is plane crashed while taking off claimed that General Chiang Kai- from an aerodrome near Archan- shek will now be compelled to. re- move the seat of his government gel yesterday.

They were returning from from Hankow further inland. Franz Josef Land. — Reuter.

CHINESE STAND

The Chinese on the other hand, Whilst still not yet admitting the

have avoided a major decision.

GOVERNOR TO MAKE fall of Heuchow, claim that they SUBMARINE TRIP This, they predict, will occur on

the left wing of the Chinese army in the area of Lanfeng along the

nan

provinces where strong Chinese forces are now menacing the Japanese flank.

His Excellency the Governor borders of the Shantung and Ho- making a trip in a submarine or Tuesday next. Sir Geoffry is to em: bark in H.M.S. Rorqual off Queen' Pier and will go out of harbour fo a short cruise.

General observers' contend thất the Japanese will not be in a posi-

Here the Chinese troops

(Continued on Page 24)

are

OCCASIONAL RAIN

The Royal Observatory reported - this morning that the anticyclone is unchanged over China and the depression is moving into the Paci- fic to the east of Japan.

Local forecast:-S. winds, mo-

rain.

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