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THE WAR.

THE HONGKONG

THE AMERICAN-GERMAN RUPTURE:

LATEST DEVELOPMENTS.

UNRESTRICTED SUBMARINISM": HEAVY TOLL OF SHIPPING AND LIVES:

BRITISH INDIA LINER SUNK.

CHINA'S PROTEST TO GERMANY:

THREAT TO SEVER DIPLOMATIC

General.

· LATEST CABLES. (EHROUGH ZEUTER'S AUDICE.]:

THE AMERICAN-GERMAN RUPTURE.

IF US HAS TO USE FORCE→→,

WASHINGTON, February 10th

In the event of Germany compelling the United States to use fores it has been learned authoritatively that President Wilson will again go before the Congress, not to ask for a declaration of war, but to follow literally the words in his recent address in the Senate To request authority to use the means deemed neces- sary to protect American seamed and people,"

While details and plans have not been discussed, it is known that the arming or conying of merchantmen is being con "sidered,

DAILY PRESS.

MONDAY FEBRUARY 12mm.

1917

HOLLAND AND SUBMARINISM Naval Activities,

STRONG OFFICIAL PROTESTS,

PGA

THE HAGUE, February 11th, A White Book containing correspón dence between the Dutcli Forvigu. Minister: and the Austro-German Ministers has been issued. The former protests most

strongly against unrestricted submarine oporations, and says the responsibility for the loss of Dutch ships and lives will fall upon Germany,

Franco-Belgian Front,

LATEST CABLES.

[TAROUGE REUTER'S AGENCY.]

RELATIONS.

COUNT BERNSTORFF'S

DEPARTURE

WASHINGTON, February 11th, Mr. Lansing declares that von Stumm's statement of the 10th inst. (published on page G of this issue) is untrue Every facility was given to Count Bernstorff to telegraph.

BRITISH FRONT.

ENEMY BEATEN OFF-SUCCESS- FUL BRITISH RAIDS.

LONDON, February 11th. Field Marshal Sir Douglas Haig, in & communiqué, says: -The enemy attack- ed our new positions cast of Bailly Saillis). He was everywhere unsuccess.

A number of the German Consule inful. the United States have been instructed from Berlin to go to Central South America, instead of accompanying Count Bernstorff.

COAL SHORTAGE IN HOLLAND.

· FACTORIES CLOSED AND TOWNS LIGHTLESS

AMSTERDAM, February 10th.

Owing to shortage of coal 200 fac tories have either closed down or are

working on short time.

Many of the smaller towns are with out light.

CHILE REFUSES ACQUIES- CENCE.

DEVIATION FROM NEUTRALITY

LONDON February 10th.

LATEST CABLES.

ROUGH REUTER'S AGENOX,]

RESCUING SUBMARINE

VICTIMS,

جانتا ہے ہے

DANGEROUS OCCUPATION,

CHINA AND GERMANY.

THREATENED SEVERANCE OF DIPLOMATIC DELATIONS.

ENERGETIC PROFEST AGAINST UNRESTRICTED SEBMARINISM.

[FROM OUR PERING CORRESPONDENT]

THE STABILITY OF GREAT BRITAINI

A

NO ROOM FOR ANXIETY.

besetting tin, nationally and individuaky, is the taking of narrow VIEWS, or the failure to grasp the broad significance or influence of incidental "accurrences. All capable of taking a broad view should, when possible, lift the vision of the people from their narrow outlook, and Dr. Dugald Clerk did useful service when, in his address as chairman of the Royal Society of evening energetically protesting against | Arts, he dealt widely with the stability the new submarine warfare and intimat of Great Britain. The subject covora

Lowbox, Ferunry 11th The danger, entailed in rescuing sub- marine victims, is illustrated by the

Fekixe, February 6th. evidence given at the inquest by the chief

The Chinese Government landed a officer of the steamer At. mins, HeNote to the German Ambassador Inst

said that he had picked up the crew of the Corsican Prince, which was sinking a mile ahead of the St. Ninian, and that while returning to his own ship he saw the periscope of a submarine, which sank the St. Vinian in three minutes. Four- teen were drowned.

A PERUVIAN PROTEST.

GERMAN SUBMARINE FLYING FRENCH FLAG IN SPANISH: WATERS

LONDON, February 10th, A wireless message from Berlin states that Peru has protested against a Ger

relations

The Chinese Nuts to the German åfinister was to the following effect :--

ing that, should the protest prove in-practically the whole field of thought and action. It ruines tão question of our effectual, the Chinese Government would financial solvency in the face of immense be constrained to sever diplomatic and increasing burdens imposed upon as by the war. It, embraces the entire scope of future trade relations, not only from the imperial but from the international standpoint. It concerns the efficiency of productive methods, and particularly the relation of employer to worker Is encompasses the whole field of applied and pure scientific knowledge, art and literature, in their relation to the well- being of the nation. So far is the finau- cal condition was concerned, Dr. Clerk saw no room for anxiety. He established that our annual income per head of the population now averages £54, as com

The new measures of submarine warfare, inaugurated by Germany, im. perilling the lives sud, properties of Chinese citizens to an even greater extent than the measures previously taken, which we already cost so many human lives to China, constitute a viola

pared with 49 in the case of Germany, while our annual suvings, which before the war were 300 millions sterling:

We repulsed attempted raids south-east man submarine, flying the French fagtion of the principites of publie interna-increased in 1915 to 600 millions sterling of Neuville St, Vans, east of Vesmelles, in Spanish waters, outside the war zone,tioned law a present in fores. The will probably come up to 1,000. and South of Neuve Chapelle.

We entered the enemy's lines east of Neuville St, Vanst and destroyed a concrete machine gun emplacement.

We carried out a successful raid at Givenchy and took 26 prisoners,

Wo dropped bombs on a number of places of military importance, damaging. an enemy aerodrome.

FRENCH FRONT.

SURFRISE ATTACKS.

LONDON, February 11th

A French communique says:We car ried out coups des mains west of the

Auberive sectors at Besanges and Parroy

sinking the Peruvian sailing ship Lorton, says that it is an unjustifiable offence, and demands indemnity for damage and

ishment of the authors

MORE SINKINGS.

PIRATES HEAVY TOLL

LONDON, February 11th. The steamers Dauntless, Hollinside, Saxonian, Turino, Fedumere, (British), Songely (Norwegian), Varray (Swedish), and six small craft have been sunk, The total, including the California, amounts to 3,200 tons,

A LLOYD GEORGE PARALLEL,

LONDON, February 11th. Mr. Lloyd George, in a message to tho New York Times on the Lincoln Anni

The Chile Government; in its reply to the versary says:-We have welcomed the latest proof that Americans are realising | German Submarine Note, rofuses to that we are fighting the same battle as acquiesce in the German measures, be Lincoln in 1881. We only realised in enuse they are opposed to the ancient voucher Austille and Caurieres Wood The British India liner Muntola has

been torpedoed August, 1914, that either the machine privileges of non-combatants, and would destinies of Germany | mesu a deviation by Chile from strict controlling the

case of German violation thereof,

and made prisoners.

There has been violent artillery fire at

front,

Karlsruhe,

An enemy aeroplana was brought down, would destroy the liberty of Europe, or neutrality. Chile holds herself at liberty and a French aeroplane last night bomb the people of Europe must defeat its to claim in respect of all rights in thioed the railway station and barracks at purpose by the supreme sacrifice of war. Unity and freedom are again at stake. There can be no compromise in such a war, for liberty is an issue which can only be decided by victory.

MR. GERARD'S MOVEMENTS.

1 NEW YORK, February 10th. A Berlin message states that Mr. Gerard and the American Embassy staff received their passports last night, and leave for Switzerland to-night

All American Consuls, Red Cross and other relief workers have been ordered to assemble at Munich to proceed to Berne.

Austerdam, February 10th. The Cologne Gazette states that a num- ber of private Americans and Americans newspaper correspondents will leave Ber lia in Mr. Gerardia train, but the repre- sentatives of the Chicago Tribune, the Daily News, the New York World, and Hearst's papers intend to remain in Ger-

many,

A FURTHER CLIMB DOWN,

NEW YORK, February 11th.

com

NEW G.C.M.G.

LONDON, February 11th, The King has invested General Sir Arthur Heury McMahon with the Grand

Cross of the Order of St. Michael and St. George.

BRITISH

WAR

CREDITS.

COLOSSAL TOTAL

LONDON, February 11th,

HIS THIRTY-FIRST VICTORY

LONDON, February 11th. A Freach official message states. —We

carried out a successful conp de main west of Ponta Mousson..

There has been lively artillery fire ou

both banks of the Mouse,

tolerance of their application would have, as a result, the introduction into international law of arbitrary principles incompatible with even legitimate com merci intercourse between neutral States, aan hetween neutral States witli belligerent Powers. The Chinese Govern- ment, therefore, protests energetically to the

Imperial German Government against the measures proclained on February 1st, and sincerely hopes that, with a view to respecting the rights of nontral States and maintaining friendly relations between the two countries, the

Six of the crew of the Duuntless have said measures will not be carried out

In case, contrary to its expectations, this died and four are in hospital,

BRITISH INDIA LINER SUNK, protest should be incfectual, the Govern- ment of the Chinese Republic will be LONDON, February 10th.

constrained, to its profound regiet to sever the diplomatic relations at present All the passengers were saved, but existing between the two countries,” seven Lascars are missing,

Zertat Activities.

LATEST CABLES. (THROUGH BEUTER'S AGENCY.)

AN ATTACK ON Z BRUGGE.

AMSTERDAM. February 10th..

The Telegraaf announces that an air squadron attacked Zeebrugge inst night,

AERODROME BOMBED.

There were numerous French nereplane

LONDON, February 10th. bombardments last night, when from The Admiralty umounces that naval Mr. Bonar Law, in the House of Comworks and railway stations were attacked. aeroplanes attacked an aerodrome at Ghistelles on Friday. A large number of mons on Monday, will ask the House to

bombs reached their objective. All our pass Votes of Credit for £550,000,000,

machines returned. total making a

War Credit £4,082,000,000.

Italian Front.

** WAR LOAN DAY.””

A HUNDRED THOUSAND

MEETINGS.

of

LONDON, February 11th. To-day 10

"War Loan Day," A hund red thousand meetings are to be held throughout the country, including de monstrations at the Royal Exchange and Trafalgar Square, where, bosides

It is undertood that Germany has gigantic War Loan advertisement, eight addressed to the United States a

captured German guns will bo exhibited. munication suggesting a discussion with

The takings at cinema houses during view to avoiding war.

three days next week will be assigned to the War Loan

COMPULSORY MILITARY

TRAINING

WASHINGTON, February 11th.

A Universal Training Bill has been reported to the Senate It applies com pulsion to men 10 to 20 years of age.

A TEST FOR GERMANY.

NEW YORK, February 11th. The cargo steamers Orleans and Rocher ter sailed on Saturday for the war zone, not painted as Germany has prescribed, but with the letters "U 8.A painted a huge size on the sides of the vessels. The owners announce that they rely on the right of American vessels to traverse the seas. Both vessela are unarmed and

will not resist attacks. The crews are mostly Americans. The destination is

Bordeaux

Sixty-two Million War Savings Cer- tificates have been sold during the year. BRITISH NATIONALS'

INTERESTS.

THE HAOCE February 11th. The Dutch Minister at Berlin will pro tect the British nationals' interests in

Germany. THE RAJAH OF SARAWAK,

LONDON, February 11th,

Tha Rajah of Sarawak has arrived

with health restored.

FORD'S PEACE BUREAUX.

DISSOLVED IN FIVE COUNTRIES,

THE HAGUE, February 11th.

Mr. Ford has disolved his peace bure

sux in five of the neutral countries,

Many air fights took place, and two enemy machines, including a tri-plane were felled, one being Lisut. Guynenier's thirty-first victory.

GERMAN REPORT,

LONDON, February 10th.

A Berlin official message states: -We repulsed a British detachment south of Saillk, and checked a French attack on Hill 304. A French company's assault on Acoivre Hill failed. The Germans penetrated the French lines noar Vaux,

LATEST CABLES.

[THEOGUNEKUTER'S AGENOT.]

AUSTRIAN CLAIM.

LONDON, February 10th

A wireless Austrian oficial, message

claims that in the region of Gorizia, the Austrians gained a footing in several trenches and inflicted severe sanguinary north of St. Mihiel, and destroyed dug losses, besides taking ous men and cap

oute and their jumates.

The Near East.

LATEST CABLES, THROUGH REUSER'S AGENOT.]

MESOPOTAMIA.

GAINED POSITIONS CON- SOLIDATED.

LONDON, February 10th.

A Mesopotamia official message states: The positions gained on the 5th instafit

liave been consolidated..

Our artillery on several occasions has bombarded a liquorice factory, which is strongly held by the enemy.

Despite two counter attacks we secured and consolidated a portion of the new front line west of the Hai, and further westward we secured and consolidated treaches on a frontage of 1,200 yards:

Yesterday the Chinese. Government, also replied to the American Minister's Nots of February 4th in the following

terus

The Chinese Government is ductant to believe that Germany will netually carry out the monstres proclaimed, which, if allowed to be enforced, would tend to introduce a new principle into public international law, The Chines Government, being in secord with the principles set forth in your Excellency's Note, and firmly associating itself with the Government of the United States. has taken similar action by protesting energetically to the German Government

GERMAN CRUELTY TO EAST

AFRICAN NATIVES,

millions sterling in the current year. Our external vestments are 4,000 millions sterling-four times those of Germany and the utilization of the profit from these in paying for war und other supplies from neutral countries without affecting exchange, and the min- tenance violate of our foreign capital, apart altogether from the continuance of import and export trade, are import- ant results of the work of our uñzy,

PRINCIPLES OF FOREIGN EXCHANGE. As regards future commercial relation. ships, Dr. Clerk very properly zusited on the view that the idea of a self-con- taiqod nation was unattainable if such a nation was to prosper. He elaborated the principles of foreign exchange, which are not sufficiently understood by the general public, pointing out that what

nation required is not money but materia, things and services. All that, the financial system does is to make services within the country and in the possilde an exchange of these goods and

| exterual world.” To give an exsniple-- the 32 millions sterling a year going to Canada is mostly used by the Canadian people for the purpose of buying goods from the United States. That country may in turn use the money so placed to its-credit"in London fer the puraansa of: tes from India, ilk from Japan, coffee from Brazil, French works of art, etc. i molely our credit to Canada is applied by exports to these countries whers British goods are needed. In other works, imperts are as necessary as exports, the one paying for the other. It follows, however, that the country which can export most can import most, Cinse quently the prosperity of a nation both colectively and individually, is depan- dent upon the volume and output of her trade and the securing of markets for their productions.

PROSPERITY AND EFFICIENCY,

follows, therefore, that prosperity depends on efficiency in manufacture, alike in the appliances available and in their utilization. Labour thinks often that it does not get its adequate reward. There can be no doubt that the Limita workers' sepicion that the employer or tion of output is largely a result of the

his representative will reduce total earn- against the new measures of blockade.ings, when he considers these too large, by leasening the piece work rate. The The Chinese Government also proposes tendency should rather be to offer overy inducement to the worker to earn the to take fuch steps in future as will be argest sums per week, provided the deemed necessary for the maintenance of price of each article is a fair one, which can be borne by the selling prices avail the principles of international" law.” able. This latter can the more effectively by actieved if the appliances are of the most efficient character Dr. Clerk enter ed into a consideration of the census of: production taken in 1997, showing that in manufactures the total earnings of industry por head per annum were £102, The Rev. E W Doulton, of the Church from which there bad to be met, not only Missionary Society who has been remuneration for capital, the sccumula

the wage of the workers, but the prisoner of war in German East Africation of funds for the extension of works, for the past two years, describes the flogging of natives by the Germans, who, and the development of new inventions

or industries by experiment and re sought us this means to compel their arch. If wages are to be increased, and victims to give felse evidence if there is to be development in science At Tabora, Mr. Doulton and another and in its application to industry, the missionary, the Hev. Dr. Westgate, were volume of output, and therefore its value,- faced with a trumped-up charge of must be increased. In America the ant having taught the native Christians put per worker per annum is quite 1} heliography, which, it was alleged, had times what it is in Great Britain; an been used in signalling to the enemy Germay it is considerably less. Barn WHY HELICOLAND WAS CEDED TO In order to establish evidence, the Gerings are fairly proportionate in the re man commander flogged several natives spective countries to the output. An into saying that they had been taught increase of the output, in Great Britain heliograph by the missionaries, but, for to the extent of 50 per cent, by greater cunately for the latter at the Court utilization of automatic machinery would martial the two man brought forward produce a great improvemo fur recanted and said that they had told prosperity as a whole, without increasing *** Bismarck sout one of his agents to sce

lies. The rice fell througs, but was the working hours, it would tend to me and to tell me that he wished ne on taken up again a little later. A third raise earnings and increase, parchering my arrival in London to give to Lord converted native, who was flogged and power. Our future stability therefore, Balisbury the following message That bullied in a vain attempt to make him will be greatly increased by greater he, Bismarck, had found imposible swear fasely replied: The English sympathy between emplyer and emplov. to carry on business with Gladstone's have taught us to read and to write and ed, and a fuller realization of their Government. They never know their own educated us, und taught us of the things mutual obligations and their duty to mind or case, and at times they would of God. Never anything else." This themselves and to the State not even answer his lettera He therefore after receiving 110 lashes with a hide hoped Halisbury would take office, and whip

turing maabine guns.

← Telegrama, received on Saturday and on Sunday morning and published in un ** Ecira ** on Sunday, will be found on page 6.]

GERMANY S

Lord George Hamilton in his Reminis cences sheds a sidelight on German methods and on the cession of Heligoland A Colonel S told Lord George

if he did so he would try to establish, Right up to the tire that a Belgian Ar the result of a conference with En. better relations with England, as he patrol entered Tabora, Dr. Westgate and Thomas White, Minister of Financo, wanted Great Britain to be a greater Mr. Doulton were menaced with the Canadian bankers will furnish a credit force in the councils of Europe than the threat that evidence would yet be ob- of 850,000,000 (£10,000,000) for the pur- was at that time" And Lord Cicorge | tained however, when the Germans casse of munitions for the Imperial Hamilton adds !! It waz, upon these knew that they would have to give up togerhment. This makes a total of that we were induced to code Heligoland were treated a little better and given Canadian banks and the Government for manifestations of goodwill towards us their Eml African capital the prisoners000,000 (£50,000,000) provided by

o similar purngse since the war began t

to Germany

better food,