1938-08-08 — Page 1

MASON'S

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O.K.

SAUCE.

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Library, Supreme Court

Hongkong Daily Press.

Registered as a Newspaper at the General

Post Office in the United Kingdom. |

ESTABLISHED 1857

15-19 Marina Ebuse, Queen's Road Central.

GP.O. Box No. 1.

No. 84946, 號陸拾肆佰玖仟肆萬弍第 日叁拾月年寅戊 HONG KONG, MONDAY, AUGUST 8, 1938. 堂拜禮, 日期月挝年舞佰玖仟雀英

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SOVIET AND JAPANESE FORCES FLYING-BOAT MAIL CAUSES

CAUSES OF THE RISE OF THE FIGHT AT CLOSE RANGE

Tokyo Claims Destruction Of Fifty Russian Tanks Ryuken Machine-Gunned

Tokyo, August 7.

Intensification of fighting in the Changkuleng rea following determined Soviet attempts to dislodge the Japanese was recorded In a War Office communique issued at 11 o'clock this morning which says that Soviet troops yesterday persistently attacked a fifty-two metres hill about 1.500 metres to the south-east of Changkufeng. Fighting at close quarters ensued in which hand grenades were used. At 9.30 this morning the two sides were facing aud fighting each other in an area separated by a distance of 800 metres and exchang- ing artillery and Infantry fine. It is claimed that 50 Soviet tanks were destroyed or disabled during yesterday's fighting.

HAWAII CLIPPER

SIGHTED?

Honolulu, August 7. The greatest excitement bas been caused here as the Pan- American flying boat, Hawaii Clipper, missing since July 29, was reported today to have been seen '900 miles south of Japan by a Japanese steamer. -(Reuter).

R.A.F. Crashes During

Air Exercises

The Kwantung Army in a com- One battalion, making a fron- FIVE MEN DEAD.

pene-

munique stated that the dozental attack, succeeded in Soviet soldiers who violated thetrating the Japanese front lines border south of Sultengho andjand in the ensuing fierce hand-to- were driven back at 1 am left two hand fighting, they were Anally killed, a light machine-gun, a case ejected by the Japanese. Tanks of ammunition and feid telescope were used by, the Soviet to assist apparatus.

their attack.

A War Office.communique lasued

There are no details at present

+

at 3.30 p.m. says that at about 10 on the losses sustained by both this morning Soviet war planes sides.-(Reuter). machine-guinned the area around. Ryuken, a north Korean village. and subsequently 27" light planes bombed Changkufeng and Kojo.—- (R(euter),

".

SEVERE ENGAGEMENT

Yuki, Aug. 7.

Reuter's special correspondent reports that a most severe engage- ment occurred at dusk last night when Boviet forces finally launch- ed an attack on the Japanese lines. They used two battalions in a} flanking" movement to the south- east of Changkufëng,' *

GUIDE TO THE NEWS

PAGE 2-Cutlery losses at hotel. Patriotic and comest Chinese students, Roman, statue sold to Reich. Counterfeir colas illega- tion.

PAGE 3.-Chinese in Ceylon In- dignant. Musical review of the week. Pearl River conservancy. PAGE 1-The Services. London

Gazette. PAGE 5.-Groups from war-torn provinces settling in Szechuen. Cinema notes and news. Cross- word. Diary of local events.. PAGE 6-Japanese air force visits Canton. More. Japanese boasts. Terrific Aghting on banks of Yangtse. Complete accord. PAGE 7.-Cathedral sermon: Wed- ding bells. Successful tenderers.

"NO NEED TO FIGHT"

Tokyo, Aug. 1. "It is absurd and outrageous for the Soviet to continue its attacks. Manchukuo

on

and Korean territory while diplo- matic negotiations are going on'in Moscow but we must keep our patience because we wani Russo-Japanese peace," said a spokesman for the War Office to Beuter's correspondent, to- day.

Continuing, he said: "There is no need to fight Russia while we are fighting China but there will be limits to our endurance if the Soviet continues to challenge us." (Continued on Page 9)

||

GUERILLAS ATTACK NANYUAN

Hankow, August 7. Chinese ruerillas launched an attack on Nanyuan, in the sbuthern outskirts of Peiping on the night of August 1. and the fighting continued the fol- lowing day, according to a,,be- lated Tientsin report just re-" ceived.

It is stated that the Japan-" ese force there suffered heavily. The Chinese, seized quantities of maaltions."

The guerilla bands have also PAGE 8 "Leading articles: Live been active in eastern Hopel the

and let live; Thirteen months of war, Guns for Britain's "mer-

report added, They recently had several chance encounters with

chant ships. New Army weapons the Japanese Kuwaki-detachment PAGE 10-Lawn Bowls league rat Chihsien. Inflicting consider-

sults and tables. County cricket. Hong Kong golfer wins medal, able casualties on the enemy.

Crowd chants "Bradman,"

PAGE 12-Financial.

Ahy letters for you?

On August 5, a guerilla party descended on a village near Then

London, August 7.

The crew of five of an RA.F. bomber, participating in the Eastern Counties air exercises, were killed in a village near Bury St Edmunds, Suffolk, when trying to land in a thick fog early this morning.

The machine struck a tree in a meadow and caught fire with a series of explosions, shaking ever?» house in the village.

Two other crashes were reported In connection with the exercises, one at a Cambridgeshire garden when the machine missed a house. where the occupants were asleep, by a few yards, and the other near Royston. In both instances mem- bers of the crew took to parachutes and were not hurt-(Reute:).

Tension In Pootung Increasing

Hankow, August 7. Despite the vigilance taken by the Japanese, tension. In Pootung caused by Chinese guerilla activities has not re- laxed.

The guerillas are now pressing on the main highway in Pootung with the apparent intention of disrupting communications. Thele vanguards have reached Taaoan- | tao east of Shenklahong, which is

about a mile from the highway.

INAUGURATED

The inauguration ceremony at Southampton on July 28 of the new flying-boat mall to Australia at the unsurcharged rate of ijd. a half-ounce. Major Tryon, the Postmaster-General, 'is seen post- ing a letter, and among those on the platform with him are Sir Kingsley Wood, Sir John Reith; and Lord Mottistone.

Japanese Preparing For Attack

On Outer

Mongolia

Hankow, August -7.

In preparation of an attack on Outer Mongolia and to cut the trans-Siberia Railway, Japan is strengthening her hold on Sulyuan and Chahar, states a Peiping dispatch to the Sao Taur Pao

Both in Kalgan and Kueiqui, provincial capitals of Chahar and Sulyuan. military roads, arsenals aerodromes were recently completed. Thë-ditimate objective is to create a Mongolia Border. Puppet Government

and

No minerals, iron and steel are permitted to be exported from these two provinces.

An' Associated Press dispatch from Peiping confirmed the move.. ment of Japanese troops from Mukden to the border.-(Inter- national).

Anti-War Feelings Growing

Shanghai, August 7.. Japanese sentries are guarding Anti-war feelings among Japan- the ferries and other communica-

ese troops in Kiangst are reported tion points as a precaution.

to be growing, and anxiety is felt Many Japanese were killed dur-by the Japanese command. ing a clash with the guerillas at Liulikiaochen on Friday. (Central

News).

DEATH OF MISS B. HELBLING

FUNERAL SERVICE

PAGE 13.-Radio programmes. tsin and disarmed the policemen THIS AFTERNOON

of the bogus government and eap- PAGES 14 and 15-Shipping news tured the village elder.-~(Central

and directory.

News).

AT REPULSE \BAY LİDO

Mr and Mrs. LA Tobias, “popular: Colony residents, photo- graphed at Repulse Bay beach,

It is with great regret that we have to record the death of Miss Betty, Helbling, of the 'staff of the

Communists and radicals in the ranks are starting"subversive pro- paganda against the militarists and Fascista, and such mottas as "No More War," "Go Slow Strike." etc. are being coined,

It is estimated that about. 15,000 Japanese soldiers are on the sick list, not to mention those wound- ed in fighting-(International).

RECORD NOW IN SIGHT

Asiatic Petroleum Company Ltd. Queen Mary's Fine

which occurred yesterday morning at the War Memorial Nursing Home.

Extremely popular in local cir- cles the late Miss Helbling, who was only 24 years of age. was taken about six weeks ago. Her passing yesterday came as a shock to her many friends. Formerly residing in Foochow, she had been in the Colony for the last three years.

She was a very keen hockey player, having represented the Hong Kong Ladies Hockey Club for several seasons.

Westbound Rùn

New York, August 5. The Queen Mary broke the record for the fastest' day'a Fun for the westbound cross- ing with a run þf 790 miles at en. Average speed of 371.60

·knots' for twenty-five' hours ending at 'noon on Friday. The previous best was the Nor- mandie's record of 781 miles at an average speed of 31.24 Anot.

Lull Prevails On North Honan Front

Chengchow, August 7. A full now prevails on the north Honan front:

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the

HONG KONG DOLLAR

Government Control Of

Foreign Exchange One Of Major Reasons

CANTON BEARS BURDEN

Hankow, August 7.

Manipulation of speculators, flight of capital and exodus of refugees to Hong Kong constitute only the minor causes of the phenomenal rise, of the Hong Kong currency: the major canses are Fovernment control of foreign exchange and the fact that Canton alone has been bearing the bulk of the nation's unfavourable trade balance, according to Dr. Ma Yin-chu, Chairman of the Finance Com- mittee of the Legislative „Yuan.

1:

Since the outbreak of the Shanghal hostilities on August 13 st and the blockade of the Yangtze River and the Chinese coast, Dr. Ma said. Canton has become the nation's chief exporting and importing centre for Hunan, Hupeh, Szechwan and Klangsi. 'Between January and March of each Hong Kong dollar was only this year, Canton's monthly im-six cents.

porta averaged $39,000,000 and But when a moderate control $10,800,000 registering ад un-over the transactions in foreign favourable balance of $28.900,000. | exchange was introduced on March With such an excess of imports 14, importers" began buying in a over exports, the foreign exchangé | large amount of American dollars, was "bound to rise.

pound sterling and Hong Kong Others purchased #

Furthermore, Dr. Ma added. 70 currency. per cent. of the import business in large amount of foreign importa Canton is controlled by foreign beforehand, "lest foreign exchanges

not firms. Quly 27 per cent. of the should be obtainable later. business is in the hands of Chinese This resulted in a gradual risé of agents in Hong Kong, while only the Hong Kong dollar.

3 per cent of the imports comes. (Continged on Back Page) | directly from abroad.

All accounts with the foreign firms in Cantón are settled in terms of Rong Kong currency, while 98 per cent, of the accounts with the Chinese importers in Hong Kong is also paid out in Hong Kong dollars. Only a small fraction is settled in Kwangtung

currency.

SMALL AMOUNT SENT BACK

Japanese Transports Damaged

: on

Tunki, Anhwel, Aug. 7. Damage was Inflicted three Japanese transports by Chinese batteries on the south bank of the Yangise River on Friday.

In ordinary times, the un-" "A part of the Japanese force

favourable balance can be off- In the Tsinyang-Po Al area

set by overseas, remittances. have been withdrawn eastward

But with the war going on, to Sinsiang on the Pelping-

Three transports steamed down- such remiitances have been

stream at 3 p.m. The Chinëse bat. Hankow Rallway where they

held up in Hong Kong, and

teries at Kweichih opened up on will entrain for the north,

only a very small amount has

them. One of them was hit by presumably Manchuria.

been, sent back to the interior

Chinese shells both in the bow and Communication jines

districts of Kwangtung..

the stern whilst another In the neighbourhood of Po Ai have been

Then there was the govern-smokestack. damaged by the Chinese. greatly mental restriction on the purchase At 5 p.m. another Japanese trans- impeding Japanese military trans-of foreign exchange. Before the port steaming upriver was fired at portation.

Sino-Japanese war broke out, one and disabled. It was unable to go Over 80 Japanese soldiers at Hong Kong dollar was equivalent farther when it got to Hsiakiang- Tainyang were waylaid by Chinese to $1.02 Chinese currency, Even kow, Itttle distance above" mobile bands on Saturday morn- before March 12, the premium for Kwelchih-Central News): ing when they were proceeding to-

PRETTY KOWLOON WEDDING wards Po Al. About 40 of them were stain while the rest beat a hasty retreat.

In the afternoon. another party of Japanese troops in 20 trucks from Tsinyang was at- tacked by Chinese guerilläs on the south bank of the Tsin River. Thirteen tracks were damaged and the Japanese were forced to retire.

It is learned that many Chinese peasants in Tsinyang and Its "neighbouring villages have joined the Chinese guerillas to harass the Japanese.--(Central News8).

RETURNING TO

NORMAL

SITUATION AT NANCHANG

Nanchang, August 7. The situation here is return- ing to normal with the popula- tion showing less signs of ap- prehension with regard to iše prospect:, of -Japanese cap- turing the city.

The Municipal authorities have isgried # proclamation advising Up to noon on Baturday the merchants to return to their Queen Mary had covered 1871 establishments and re-open their miles from Cherbourg at an stores. This met with immediate To her parents. Mr. and Mrs. average speed of 30,87 knots as response and many stores were re- James Heibling, of Cheam, Surrey: compared with the Normandie's opened last week

her sister, Mrs. John Oswald of record of 30.50 for the complete Official cuarter- are most Foochow and a brother in England, crossing...

much sympathy will be extended. The Queen Mary now has a good

A service will be held today at chance of beating the Norman 5 p.m. at the Colonial Cemetery die's record of three days, 23 hours Chapel, Happy Valley, after which and 2 minutes for the westward the remains will be cremated. Atlantic crossing —(Renter);

optimistic and suggest that it may even be possible to hold Nanchang until winter mon

The missionaries have expressed their intention of remaining in the city in all eventualities (Renter);

Mr. E. J. Thomson, photographed with his unide formerly: Miss - Kath Frances Ingram, after their marriage at the Kowloon Uplan Church on Saturday. The bride is the eldest daughter of Mг.. Å, W. Ingram. Secretary of the European YMCA. Kowloon, and Mes, In-

(Thoto, Ming «Yuen),

日