1937-01-09 — Page 9

VOLUNTEER AID IN SPANISH WAR

BRITAIN CONSIDERING

MEASURES

Foreign Office Talks With German Diplomat

London, "January 8.

The terms of the replies of the German and Italian Goverm→ ments to the Anglo-French demarche urging measure to prevent despatch of volunteers to Spain have now been received and are undergoing close examination at the Foreign Office.

It was announced in Berlin when the text of the communica- tion was issued there that, the German reply was drawn up in col- Jaboration with the Italian Government. The Italian reply is to the same general" effect as that received from the German Government.

These cominunications will" be treated by the British Government , as a basis of further action which it is recognised here is urgently demanded:

At the request of the Foreign Secretary, Mr. Anthony Eden, the German Chargé d'Affaires 1. London, Herr Woermann, called at the Foreign Office last evening. It understood that Mr. Eden desired to ensure that the German Government fully apprcelated how strongly Britain felt that a stop must be put to the flow to Spain of foreign "volunteers," There is growing stiffening of the British

view in this regard...

It is, however, emphasised anew that the fact that Germany and Italy have been addressed to im- press upon them Britain's strong opposition to the despatch of large bodies of volunteers does not mean that she hopes for emer- gence of a Red Government Spain any more than her oppos!- tion to interference on behalf of the Valencia Government tokens

HONG KONG DAILY PRESS, SATURDAY, JANUARY 9, 1937.

REBELS GAIN GROUND

Warships Bombard

Two Towns

Avila, Jan. 8.

It is stated that the position of the Government forces around the villages of las Rosas and -Aravaca on the Escorial road westward of Madrid bas become untènable, The insurgents claim to have gained nearly a hundred square miles of territory in recent operations. Two surgent warships bombarded Outera and Portbou as well as Culera bridge on the France Spa- Idsh border this morning and then rut out, to en. The extent of the casualties and damage is not yat known.-

Reuter's Bulletin Service.

ARMS AND PRISONERS

Beville, Jan. 8. insurgent radio message claims that one Russian tank, six machine guns; three hundred rines and

An

→

MADRID REPORT

Madrid, Jan. 7.

blem of volunteers in the Spanish civil war is the fault of the Ger-

a quantity of ammunition man government. The Reichs go- were captured in the Cordoba sec-

em- vernment, therefore, again

tor in the past few days. Many pri- phasizes that it was the German scners were taken, whilst over 400 and the Italian governments Government troope déserted to the

the beginning de- | Insurgents' ranks ---- which from manded the prevention of the de- Reuter's Bulletin Sermee. parture of volunteers for Spain to participate in the upheavals and that it was the British and the

A communique issued by the red French governments who refused

defence committee of Madrid yes- to decree such a prohibition,

The Initial. attitude of the terday. admits that the battle French and British governments which began in the Podielo el in this action can only be ex-Flantio de las

O plained by the assumption that Wednesday was continued through- these governments did not wish to out the night but asserts that the red defence forces "entrenched in strongly fortified positions, offered and successful Ie- take & different sistance to the offensive of a strong point of view, then the German body of nationalist troops which Government must seriously ask were supported by a great num- whether the proposed prohibition ber of tanks." at the present juncture would not

regard the influx of volunteers as inadmissible interference in the Spanish affairs. If these two gov-stubborn ernments, now

Rozas sector

The communique further claims in reality result in an unbiased that the attacking nationalist 'support for the elements Dghting troops suffered extremely heavy

the fight against the Spanish, nationalist losses, particularly in be-

red troops captured a that the tank from the nationalists.- Prunkorean News Service.

a desire to see Fasciam government, after the Bolshevisting around las Rozas. Itself, and triumphant in that country. It laclements were allowed unhamper- ed access to Spain for months past, It is difficult to escape the im- pression that the prohibition would benefit the Bolshevist party in

In the British view, a delusion to belleve that the side that wins the war will necessarily constitute the ultimate government

STEAMER STOPPED

Cibraltar, Jan. 7.

BALANCED BUDGET

NEXT YEAR

Rapid Recovery In America

Roosevelt's Optimism

Washington, Jan. 8.

Transmitting to Congress the Budget for the fiscal year ending June 30, 1938. President Roosevelt said that the 1938 Budget ba- lances and except for debt reduction of $401,515,000 will · remain balance even with additional expenditure up to $1,537,323,000 for recovery relief, in which connection plans will be submitted later.

""We expect, moreover, if the improvement in economic condi tions continues at the present rate, to be able in 1839 to attain a completely balanced Budget with full provision for meeting sta- tutory requirements and debt reduction." The President recommended the continuation of the so-called nuts- unce taxes at the present rate, the maintenance of three per cent. postage rate, and establishment of civilian conservation corps on a permanent basis..

The fiscal year 1936 receipts were $4.115,957,000 and expenditure $8.- 879,798,000. The defcit was in-, creased by the Supreme Court iniva- lidation of processing taxes and Congress insistence of payment of veterans' bonu

The fiscal year 1937 receipts were estimated at $5.828,151,000 and expenditure at $8.480,804,000, including $790,000,000 which Con- gress will shortly sak to appro- priate to continue the work of the relief programme from February 1 to June 30.

The gross public debt at the end of the current fiscal year is esti- mated at $35,026,000,000, which is an increase of $1,248,000,000 which is an increase of $1,248,000 000 over 1938.

sum for debe retirement, there will therefore be an estimated surplus of $1,135,608,000.

The President added that the programmes inaugurated in the last four years cost large sums of money, but the benefits obtained therefrom far outweigh all their costs. Business conditions shown 1933 have made annually since marked improvement over the pre- ceding year.

NAVY EXPANSION President Roosevelt's Budget re- record peace time quest for a national defence fund for. 1938 includes money for reconstruction of two new battleships. this cor- responding to the action of Great Britain. The new battleships will be of 35,000 tons and cost about $50,000,000 each.

To enable a start to be made in construction, the President bas increased the original Navy De partment estimate for 1938 from $563,996,000 to $587,302,000.

NEW PLANES. For the fiscal year 1938 the

Besides provision, to carry out President does not make any re- commendation-for revision of the the Navy's regular building pro- tax on undistributed profits, which gramme which is designed to ex- he declares gives every indicationpand the feet to full strength by of having accomplished its pur- 1942, it is proposed to allocate poses.

$49,500,000 for the Navy Bureau The Budget for 1938 provides of Aeronautics of which 838,000,000 estimated expenditure, ex-will be required as provision for cluding work relief, of 30,168,000,- 400 new aeroplanes compared with

$27,000,000 authorised for 1937, NATIONAL DEFENCE

for

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In association with the Grand Hotels Wagons Lits. Pekings.

The President recommends the NO REPLY FROM

Spain which is clearly now suf- The Norwegian steamer Ibis was

ciently provided with foreign vol-stopped in the Straits of Gibraltar | 000.. unteers. As, however, the Ger-

this afternoon by a Spanish insur- man government from the very

gent gunboat and was compelled The national defence estimates expenditure beginning advocated the preven

to proceed to the insurgent port.increased by $27,000,000 to a new military needs, tion of the influx of volunteers to

of Algeciras where her papers and peace time record total of $991-nearly $18,000,000 over the

estimate, of which $37,435,000 wil cargo were inspected by the 600,000. authorities,

Receipts are estimated at $7,183,be expenditure on new aircraft, an

As has been frequently stated, the British Government's hope is

by that Spain may be ruled

wanta government that Spain What such government won'd be Spain herself does not know yet. But it is firmly believed that if Spain, it is still prepared to sup foreign interference and propa-port all measures to promote this ganda can be stopped, war Thay come to an early end on more moderate terms of settlement than would otherwise be possible- British Wireless.

Ki!

GERMAN REPLY TO PROPOSALS

Foreign Volunteers In Spanish Struggle

aim, but it must voice the expecta- tion that after this all possibilit- les of direct or indirect interfer- ence in the Spanish conflict wil be eliminated once and for all For this reason the German govern- ment makes its assent dependent on the following assumptions:

$393,460,000 for

increase of 1937

VALENCIA

The Ibis came from the insur 607,000, the gain being largely due increase of nearly 84,000,000 on the German Seizure Of

gent port of Huelva and was bound for Mediterranean points.

!Center.

four typewritten pages, will not be made public before midnight.

to increase in income tax as a re- 1937 Agure. The Army plans re- sult of improved business condt-quire à minimum, of 530 new air- tions and operation of the Revenue craft in 1938 the same number as provided by the 1937, expend!- Act 1936.

ture... Reuter.

Without provision for work re- Hef but including the necessary

THREE CONDITIONS (A) That other states concerned The contents of the Italian, re- undertake to adopt the same at- ply, according to informed quar-}, titude...

ters, closely conform to the Ger- (3.)

That the solution of all man reply. Italy, so it is declared, other questions connected with in-accepts in the proposal that the direct interference be taken in Influx of foreign volunteers into Spain should be prevented but states that Italy is taking an ex- in tremely grave view of the situa tion which "Indirect French and Boviet Russian intervention" have produced in Spain during the last few months,

band forthwith.

I

Berlin, Jann, 7. A note embodying the Reichs government's reply to the pro-

(C.) That all governments, con- posals recently made by Great cerued consent to the institution Britain and France for the preof a thoroughly efficient supervi- vention of the influx of foreign sion to be exercized on the spot volunteers into Spain, was handed to the British and French Ambas to ascertain the observance of the

sadors in Berlin yesterday after- 2100TL

It is learned

pronibitions to be agreed upon.

The German government will instruct its representative in the that the Reichs London committee to conduct fur- government's reply was drafted in

ther negotiations on this collaboration with the Italian gov- ernment, whose answer was hand- Should, however, no agreement.be

0

basis.

Transocean N»us -NaemIED

IMPERIAL TITLE RUMOUR

Berlin, Jan. 8. A circumstantial story published. Paris, to the effect that Herr Adolf Hitler contemplates the early assumption of a title equiva- lent to "Emperos," has evoked u sharp semi-oficial denied from Berlin

The denial says that papers publishing such senseless rumours own completely discredit their political reputations.-- the heater.

THREE POINTS RAISED

Rome, January 8.

13 the note answering ed over to the British and French reached about the prevention of Anglo-French proposals for the prevention of the influx into ambassadors in Rome simultane-ather forms of indirect inter- Spain of foreign volunteers in-| The text of the German potement must reserve the right to re-tending to take part in the civil was as follows:

qusly.

"The German Government must, first of all, express its astonish- ment that the British and French Governments shoula nave CON.

ference, then the German govern-

consider its attitude towards the

question of volunteers.

In the opinion of the German government the best solution of The volunteer question—if it could

war, the Italian Government frat raises the question of the compe- tence of the Non-Intervention Committee.

Secondly, the note refers in de-

PREMIER TO SEE THE KING

--London, Jan.`7. The Prime Minister, who return

there

MORE UNREST IN SHENSI

Two Vessels

NAVAL ACTION DEFENDED

German Reply To Valencia

Berlin, Jan. 8,

Berlin, Jan. 8. . The time limit in the German Protests against the seizure of ultimatum to Valencia has expired Spanish ships by German naval and no answer has been received. forces in Spanish waters which The ultimatum on January 5 by have been addressed to the British- the Admiral in command of the Government and the League of German Naval Forces in Spanish | Nations by the Valencia Govern- waters stated that if the passenger ment, re characterised by au- Nanking. Jarı 8. and cargo of the steamer. Palos thoritative sources here as obvious" -

sttempts to defect attention from The Central Government troops are not returned by 8 o'clock on

have been withdrawing the morning of January 8, the acts of violence on the high seas which

committed by Spanish Reds them- from Shenisi since Marshal Chiang steamers Aragon and Marta Jun-

the selves. Kai-shek's release last month, have quera will be "realised by

to return to the German Government.""".. been ordered troubled province immediately.

In view of the non-receipt of This dovelopment is a result of the Spanish reply, it is concluded the defiant and unruly attitude that the Spanish authorities have adopted by General Chang Hauch- no intention of "considering the llang's and General Yang Hu- German offer. It is understood chen's troops, who bitterly oppose that the two Spanish vessels seized the reorganisation of the Bhenst will be "realised," which probably provincial Government and the means that they will be handed military administration of North- over to the Franco

Government against payment for the cargo west China,

General Yang Hu-chen Is, re taken from the, Palos and pay- ported to have proclaimed himself ment of indemnity to the family Governor and commander-in-Chief of the detained Spanish passenger. in Bhensi

It is underfood that the in- bo considered Skirmishing has already occar-afdent will then red near Ewahslen. a: Lunghai closed and there will be no re Railway town, 50 miles east of sumption of reprisals polley unless ed although Nanking is doing its German shipping

utmost to achieve a peaceful solu- &euter. tion of the problem Reuter,

ITALIAN ENVOY TO BRAZIL

;

The Valencia authorities, it is pointed out, have admitted that the German steamers Pluto and Falos were halted by armed pa trol boats outside the three mile zone which is internationally re- cognised as the boundary of Span- ish territorial waters, although they failed to reveal the exact lo cations where the two steamers were seized.

It is once more emphasised that the halting and seizure of the two Cerman ships as well as the mea- sures subsequently taken by the Valencia authorities, constitute a serious infraction of the rights' of neutrals and that the justification

recognized by competent quarters abroad

The British Government itself, It is pointed out, on various OGCR- stons has announced that British varships in Spanish waters would do everything in their power to prevent acts of violence against British merchantmen in those wa ters

sidered it necessary for the sec.be, realized-would be the removal tall to the various proposals made ed to-day to Downing Street from | Blantu, and a major clash is fear- there are further violations against ct the Clerman viewpoint has been ond time, while the Non-Interfer- from Spain of all non-Spanish by Italy in August and September Worcestershire, where he spent ence Committee sat at work in participants in the present up- that the volunteer question should the Christmas holidays, will go to be made an integral part of non- | Sandringham on Saturday to visit heavals including all agitators and London, to make a direct appeal political propagandists, thus re-interference and recalls that these the King and will remain to ather Governments represented in this committee. The subject of instating the status of affairs pre- proposals were at the time reject over the week-end

ed by Britain' and France.

British Wireless this appeal, namely the question vailing in August last year.

The German government would Thirdly, the Italian Government of the prohibition of the parti- cipation of foreign volunteers in be very gratified if the London points out that owing to the great the struggle in Spain, is at present Committee would forthwith pro- Influx into Spain of foreign, volun- being discussed by the London ceed to ascertain in what manner teers, since the Italian proposals. committee. It is not possible to such a measure could be effectively were first made, the prohibition see how far these deliberations applied. The German government now proposed would, if adopted, should be furthered by such spe is ready on its part to collaborate, have the effect of favouring the party opposed to the Spanish na- cial diplomatic action on the part in such steps in every way,"

tionalist government. of individual Governments. I Tranencean News Service.

the procedure in the committee

for the discussion of the Spanish questions is considered Inadequate or inappropriate, then in the in- terests of clarity and uniformity in the treatment of these ques ~tions, it would be better to dis- continue the procedure of the com- mittee altogether.

ITALIAN REPLY.

FOREIGNERS IN SHENSI

Nanking, Jan; 8. The Sheast Provincial Govern- ment has given assurances to the SPECIAL AGREEMENT

American Embassy here that every ...Nevertheless, Italy declares her means will be taken to protect self ready to consent to the volun-Americans residing in the pro- teer question being made the sub vince

Reuter Rome, Jan. 1.ject of a special agreement but de- The Italian reply to the Franco-mands, however, that this be of a British Note regarding the ques-general character and also to tion of the participation of for-treat the whole problem of non- Anglo-French proposals, it cannot elga volunteers in the Spanish Interference, including that of WRONG IMPRESSION. civfi confict was handed by the propaganda and financial aid, as The German government is ob- Foreign Minister, Count Ciano, to one subject. liged to safeguard itself against the British Ambassador and the Italy further proposes that all

Spanish territory. If the Italian Government decides to meet the

the impression given by the new French Charge d'Affaires yester non-Spaniards be removed from step taken by the British and day afternoon, but the text of the which embraces nearly French governments, that the pro- I reply,

nevertheless conceal its view that the methods used by the Govern ments concerned in dealing with the problem have been erratic and incapable of leading up to any thing but pertions results Transocean News Service.

Shanghai, Jan. 8. Bignor Lojscono, who has been appointed Italian Ambassador to "Erazil, is leaving for Feiphing short- ly to call on Senor Lago, Brazilian Minister to China, after which he will leave for Italy some time in February Reuter

ARAB ATTITUDE

Jerusalem, Jan. 7. Following the announcement" on Wednesday, that the Arab leaders declared a "boycott" against the royal commission of inquiry, Arab representatives appeared yesterday before the committee to present their point of view. Tranineson Mewn Sevier,

EMPIRE AIR ROUTES

Completion Of New Systern

Similarly, Germany made London, Jan. 7

clear that she would take ener The present year will see the Betle steps to protect German 80- completion of the great system of vereign rights and German navi- ground organisation along Empire ation on the high seas, in order air routes designed to permit the to prevent a reoccurrence of such operation of the services to a incidents sẽ those mentioned twenty-four hours schedule.above

LADY PRATT PASSES

Improvement of the ground or- Transocean News Services ganisation involves the establish- ment of new air ports and landing grounds, provision of more wire- less stations equipped with the latest aids to flying, installation of new airway beacons, and per- fecting of the meteorological sys tem furnishing, continuous day and night service of weather forecasts and reporta de la British Wirdet.

London, Jan: 8. The death has occurred of Lady wife of Bir John Prats Reuter