1939-03-08 — Page 11

THE CHINA MAIL, MARCH 8, 1989

Pago: 11

FRANCO PLANS TO ATTACK MADRID

BEHIND EXCHANGE CONTROL

Tientsin, To-day. Interviewed by Reuter, a lead- ing Tientsin businessman stated his opinion that the objects behind the

new trade exchange control regula-

tions in North China would appear

to be to force acceptance of Fed- eral Reserve notes by foreign banks and give them an exchange value which they at present do not

possess.

It had been declared that the old Chinese notes were circulating in the interior, and it was doubt- ful whether the decree would have much effect..

If foreign governments allow their nationals to agree to the new regulations it would be tant amount to admitting the right of the provisional government, which they do not recognise, to control trade in North China, and would undoubtedly lead to elimin- ation of foreign interests built up over a number of years.

Misinformation About Situation In The Capital

ST. JEAN DE LUZ, TO-DAY. GENERAL FRANCO HAS DECIDED TO ATTACK IN THE MADRID SECTOR, ACCORDING TO REPORTS FROM BURGOS. General Franco is said to be counting on a decisive

military victory.

According to these reports the attitude of the ing the events in Madrid, as it is felt the atti-

Franco Government is very reserved regard-

It

tude of the National Defence Council is not clear.

is pointed out that the promise by General Casado that ex-Premier Juan Negrin's principal fol- lowers would not be allowed to escape, was not put into effect.

mo

JAPANESE MASS TROOPS IN SHANGHAL

Shanghai, To-day.

Japanese authorities have mussed about 50,000 troops be tween Shanghai and Boochow ac cording to reliable reports here.

A campaign to wipe out the guerillas operating in that area Is shortly to start –Our Own Cor- respondent,

FAMED LOYALIST LEADERS LAND AT TOULOUSE

Toulouse, To-day. General Juan Modesto, com- mander of the Army of the Ebro, was among three famous Spanish

here by air yesterday.

Reports of serious Communisting the short-lived Communist re-Republican leaders who arrived disorders in Madrid are also con- volt. firmed by Burgos, where it is stat- ed that vigorous rifle and machine- gun fire was heard within the city from the Franco front in Univers- ity City.

It is also stated that serious dis- orders have occurred at Cuenca, AK bacete and Guadalajara.

The view held in Burgos is that FOR ALL TO READ Manchukuo was a signpost the Madrid Defence Council is not which all could read, and although by any means in complete control the new regulations were framed of Republican territory.

in such a manner as to secure MADRID CONTRADICTION. the co-operation of foreigners, This Burgos account of condi- there was no doubt that the ulti-tions in Madrid is belied by a re mate object was to eliminate for port from Reuter's correspondent in eign interests for the benefit of Madrid.. Japan.

The only remedy appeared to be adequate retaliatory measures against Japan by the home Gov- ernment. Reuter.

SMALL FRENCH COASTER RUNS JAP. BLOCKADE

Manila, To-day. Successfully running the Ja- panese blockade a small French coaster arrived here from Indo-China to-day carrying 400 tons alleged to be Chinese silver and gold earmarked for America.

The shippers are reported to be the Bank of China, and the consignment is being transferred to the "President Cleveland" sailing for Hong Kong on March 9 en route to San Francisco..

Local shippers, recalling the “Pre- recent holding up of the aldent Coolidge' at Shanghai by the Japanese authorities until sho disgorged a similar cargo, speculate whether an attempt might be made to pre- vent the consignment roaching its destination.-

The consignment fa reported to be valued at several million and comprises 4,891

The correspondent toured the Republican capital late in the afternoon, and states that the streets are being patrolled by the military and that all is quiet within the city.

The Communists who had bar- ricaded themselves in two buildings have surrendered; he adds.

NEGOTIATIONS. BEGUN

Also in contradiction to the Bur gos reports of an impending attack on Madrid is the belief held in well-informed Paris quarters that negotiations for an armistice in Spain have already begun.-

The Defence Junta in Madrid is reported to have in mind an "ar- mistice leading to complete settle- ment within a fortnight or three weeks.

At the same time, the Junta is asking for assurances of the safety of persons "Implicated,” particu- larly an opportunity for them to leave Spain.

APPEAL FOR" ORDER Meanwhile Canys Reutor's Ma- drid correspondent) General Miaja, President of the Defence Council, yesterday appealed for order dur-

cases, including 2,251 crées of small money silver, 2,522 casoB of big money silver and 58 special cases of silver and gold.

The Fronch coaster, the "Lons," which brought the cargo, arrived from Saigon via Haiphong.

Router.

·

Generál Miaja declared: "We The others were General Hidalgo. don't want to shed more useless Decisneros, Chief of the Air Force, blood, and all I — who fought with and Colonel Enrico Lister, com- desire is to give you peace mander of the Anarchists Divi-

Reuter you If commonsense returns to us all I sion. assure you it will all end soon,”**

The brief revolt in Madrid, cen- A six year old boy, Fung Kee of tred in the working class quarter No 3. New Street was found near of Cuatro Caminos and the site the Ko Shing Theatre suffering of the old Hippodrome building. from a fractured skull after being Some gunfire and rifle shots were hit by an unknown vehicio. He heard in the morning, but by the died on the way to the Queen Mary

Hospital. afternoon all was quiet.-Reuter.

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