1940-01-22 — Page 7

HONGKONG DAILY PRESS

EARLY CRISIS DEVELOPING BETWEEN JAPAN AND THIRD

in

POWERS: SURPRISE ANTI-BRITISH STEP

Pamphlets Distributed: U.S. Embargo Campaign

TOKYO, Jan. 20 (Reuter)-Early development of a Crisis in relations between Japan and third Powers was in- dicated in two unrelated reports last night.

In Tokyo, the Japanese, War Office has taken the sur- prising step of distributing pamphlets throughout Japan stating that unless Britain alters fundamentally her atti-... tude towards Japan, friction between the two countries is to be expected.

Simultaneously, in Washington, Senator Key Pittman was beginning his campaign. for raising an embargo against the supply of oil and other war materials to Japan.

Political observers suggest

the possibility that the Jap-

anese Army is engaged in WANG - JAPAN

focussing hostility upon Bri-

tain while strenuous efforts are made to reach a modus vivendi with the United States.

CONCILIATORY GESTURE

The Japanese Army's anti-British pamphlet coincided with a con- cillatory gesture by Japan to the United States and a speech by the British Ambassador in which he declared that points of difference between Japan, and Britain were chiefly on the surface.

SENATOR PITTMAN WASHINGTON, Jan. 20 (Reuter) -Japan must abandon her policy in the Far East, which means the absolute domination of China, de- clared Senator Key Pittman in a speech in Washington last night.

AGREEMENT

Continued from Pare 6

with the stationing of Japan- ese troops in new Shanghal;

Relating to matters con- nected with Japanese partici- pation in establishing and un- proving aviation.

Ĉ.

Regarding the Specially Designated Istands along the Sea Coast of South China. ` DESIGNATED ISLANDS:

Among the specially designated Islands along "the" son ccast of South China. Hainan Island shali be given a local administrative or ganization (including departments for military

di- affairs) placed rectly under the control of the New Central Government.

In view of the paramount post- tion that Japan enjoys in that Island, the said political organka- tion shall be empowered to dis- pose of the following matters raised by Japanese demanda

1. Those connected with. the stationing of Japanese troops. 2 iose connected with Sino-Japanese co-operation in military axairs and in the

maintenance of order:

3. Those connected with the development and uillization of specially designated resources indispensable for national de-

fense.

4. Those connected with avia- tion. Dostal and telegraphic services and ocean transporta-

t100

ARTICLE ATTACHED

The above mentioned' govern- ing principle will be applied to demands which should be

OUT Important ocean transportation and postal and telegraphic

ser- vices.

51

4. Relating to the settle- ment of matters connected with Japanese participation in other enterprises ! new Shanghai (2) In order to expedite the realization of the above mentiori- ed Japanese demands, necessary He said the United States had arrangements for more rights in China than mere Sico-Japanese economic consulta- permission to sail boats up the tive organization Yangize..

PORT REGULATIONS Japan's port regulations even dictated where cargo is to be un- loaded, and the United States had to use yen instead of dollars.

Senator Pittman sala sentiment || was growing in the United States in favour of an embargo on oll and other exports to countries which break treaties to which the United States is a signatory,

establishing

and the like

should be planned and pùs inbo

RELATIONS WITH MONGOLIA

III. Main Provision Regard- ing the Readjustment of Re- lations with the United Auto- nomous Government of Mon- rolla.

1. The term "Mongolla" herein employed is intended to designate in general the territory north of the Inner Great Wall (the Inner) Great Wall itself is included),

* In view of the special cha-

GIVE AND TAKE TOKYO, Jan. 20 (Reuter)--"I feel sure that my country is very much awake to conditions not only in Europe, but also in Far East." de-racter of Mongolla in that it is clared the British Ambassador, Sir Robert Cralgle, at a luncheon party in honour of the newly-appointed Japanese military attache to the London Embassy.

the zone where the strongest solidarity between Japan, China | and Manchukun in macters "relat- g to national defense and ecrs-

Sir Robert, who presided at the nomic development exists." and in

luncheon, referring to the question

the helds outside of diplomacy (negotiations with Japan "and

agreed upon later between Japan and China and also to matters connected with China's interna). affairs that should be regulated by

nerself.

CONDITIONS TO BE

FULFILLED BY

JAPAN

Conditions desired to be ful" filled by Japan' prior to” the ́establishment ... of the Central

Government. (Presented

to

Japan by Wang Ching-wel in August. 1939)

The Japanese have replied in writen form with reference to the earnest desire or the part of the Chinese for carrying out of the principle of respecting China's 50- vereignty. Regarding the hope that the Chinese have expressed. the Japanese have fully appre- elated the aim thereof and have promised to try to make it really ed.

Now, In view of the approa-, ching establishment of the Central Government, the Chi- nese consider the following as the

indispensable conditions

for its establishment. The ful- filment of these conditions be- ing no hindrance to Japanese considerations relative to the elements of time and place. Il Is expected that the Japanese will agree to it.

of improving Anglo-Japanese rela- tions, said: "It is a question of try-Manchukuo excepted), such as ad- CUSTOMS REVENUES: ing to adjust ourselves to incom- ministration, legislation, Jurisdic- patibilities on certain questions or policy.

"There are mainly on the surface and it will be a ques- tion of give and take in order

to attain the cherished Ideas of all of un.”

CABLE

Arrest Of Communists

In Sweden

Anhwel "Provinces are at present independen; organizations and are not under the control of the Re- formed Government. The monthly yields from these taxes are direc:ly sent to the Japanese Intelligence Service, which transfers a part of it to the Reformed "Government. When the Central Government is The newspaper Social Demokratan established. It should negotiate with the Japanese for their con- sent to permit the Ministry of Finnce to take over those ganizations and have the yields from these taxes put in the national ttreasury.

SALT REVENUES 3. Although sålt revenues siltute a main source of China's income, yet practially no collec- tion therefrom is made at present.

STOCKHOLM, Jan 21, (Reuter)—

have

Boy

itatea that the Police unearthed

Communist with tentacles in organ'sation OF-

every part of the country.

Many Swedish Reds are stated to have been arrested following the discovery of a secre; wireleas station which has been trans- con-mitting details of military, Indus- trial and defence measures.

Many Communists have been re- moved from responsible posts in In Central China there is a su labour organisations since the called Tung Yuan Company, a Soviet invasion of Finland. Japanese

the undertaking for transportation and sale of salt. which practically pays no tax. Prior to the establishment of the Central Government; it should negotiate with the Japanese for their consent that when the Cen- tral Government is established, the administration and regulations for payment of salt taxes should all be restored to the stars previous to the Incident.

Those mentioned in the above three articles relate to state finance. In case they are not achieved, the Central Government cannot be estab- ilshed.

YANGTZE OPENING

4. The Japanese are requested to agree to the opening of the Yang ze River between Shanghai and 'Nanking within two months after the establishment of the Cen- tal Governmen:

The negotiation. therefore, wil be conducted by the Central Gov- ernment. As to preventing foreign ships from transporting arms and munitions to guerilla forces, stringent ways and means may be devised with respect to technique.

After the establishment of the Central Government, it is necessary to secure from Great Britain, the United States, and France their de facto recognition thereof. If the Yantze River is not opened, then their recognition is absolutely im-

possible

5. The passes for travelling along the Nanking-Shanghai Rall road

should be issued by the Cen ral

Government.

14

SEARCH AND EXAMINATION.

6. Searching and examining at

the railway stations and various city gates in Nanking should be conducted by Chinese police and gendarmes. Any time when Jap- anese gendarmes make artests within the city it is expected tha they will do it in collaboration with Chinese police and gendarmes.

Though what are mentioned in the previous two articles seem to be trifles, yet it is very important so far as they exercise influence

affecting the falling psychology of the people,

on

and

ALLIES

MONDAY, JANUARY 22, 1940. -PAGE

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UNDER: NO ILLUSIONS

ABOUT THE WAR: LORD HALIFAX

CHURCHILL'S «

BROADCAST

Continued" from Page 1

and a messure of the fate in stoc to any Nazi warship which dabbles in piracy on the broad water."

M. Churchill refacer his remark given earlier about things going well by saying that he was "suite sure that many losses and misfor- tunes lay ahead for us on sea,"

He added: "We look forward, as the months pass, to establishing such a degree of safe sailing as will enable commercial nations, whose ships accept our guidance. not only to live but to thrive.

"This part, at least, of the Nazi attack on freedom is not going to bar the path of justice or re- tribution.”

ATTACK »ON SOVIET

OUTLINES BRITISH-

AIMS IN CONFLICT"

Of Purpose Will

Unity Of Spell Defeat

Defeat For Hitler

LEEDS, JAN. 20 (REUTER)—'WE ARE UNDER NO ILLUSION ABOUT THE WAR. WE KNOW HOW GREAT ARE THE ISSUES THE LIBERTY AND INDEPENDENCE OF OUR OWN COUNTRY AND THE COMMONWEATH AND OF ALL EUROPEAN STATES," SAID LORD HALIFAX, IN A SPEECH AT LEEDS TODAY

"Neither are we under-rating the strength of our cliemy or thes sternness of the struggle upon which we are engaged,” he continued. "We realise that to secure the victory in that struggle we require sif the energy and all the resolution that we can command.

"There is, isn't there, a profound tree men and individual will (30; difference between a Dictator and plause). a democracy In this business of

war.

INITIAL ADVANTAGES "A dictator enjoys great initial Hs preparations and

no

they

"And it is that unity of par- pose which Herr Hitler rates so tow that will be, if I mistake not, the principal cause of his defeat.

"The strain of modern

tu

In paying tribute to the magni- Acent service- Finland has render- ed to mankind, Mr. Churchill said: "They have exposed for all the advantages. world to see the military incapa-policy can be made in complete very great, but there is no doubt city of the Red Army and. Air secrecy. - The people have

in my mind, and I think there wil Force.

part in that policy:

be none in yours, that it will be don't know what it "Many illusions about Soviet 15. They cannot place themselves borne more easily by men who are In from conviction than by men Russia have been dispelled in these in opposition to and therefore. who are in it by coercion, '(ar fierce weeks of fighting in the all actions of a Dictator andear Arctic Circle, and everyone can to the outside world as the expres see how Communism rots the soul slon of a single will of a naton and make it abject and hungry in peace and proves it, base and, abominable in war.

"We cannot tell what the fate of Finland might be bù: no more mournful spectacle could be pre- sented than that this splendid northern race should at last be worn down and reduced to servi- tude worse than death by the dull and brutish force qi overwhelming numbers,

"In a democracy, there is no sutrender of private judgment, There is no suppression of out, side contacts, and thery is no coercion by secret poffce--and admittedly that increases the difficulty of any government In the time of preparation and planning..

OVERWHELMING FURCE

plause).“

BROKEN PROMISES

Lord Halifax referred to Ripers: speech shortly after the war, in which te Fuenter "objected strongly" when foreign statesmen said he had broke his, word be- he had "carried nut re-

cause

| visions."

On the contrary, Hitler said, he had carried out his so'emin promise to the German people to put an end to the Versailles Treaty. In

"But when trouble comes the other words, any breach of pro- themise was in Hitler's Yew justified

khow

Lord Halifax had no doubt that

"I the ligh; of freedom" which fact that the people But these can only be put into still burns so brightly in the frozen Goverment's policy, and have ap-if it helped him to realise his ans effec; with the thorough under-north should finally be quenched, proved the government's decision standing of the Japanese military it might well herald a return to registers the overwhelming force off they had abided by Hitler's authorities now stationed in Nan king. It is expected that the Jap- anese will pay due attention to and take appropriate action on

tion, military affairs and hego-

Since the conclusion of the tiations with Outer Mongolia, the Anglo-Japanese customs agree- Central Government shall recog-ment in May last year, the cus- nize that Mongolia should possess toms revenues have been deposited them, broad autonomous powers and in the Yokohama Specle Bank, Up

the dark ages when every vestige of human progress during 2,000 years would be engulfed."

SMALL NATIONS

Mr. Churchill asked what would

should form a highly anti-com- to the present, the revenues col- THE JAPANESE REPLY happen if all the small and neutral munist autonomous area on the lected by the Shanghai Customs basis of accomplished facts WRITEN DOCUMENTS:

House alone already amounts to more than 180,000,000 dollars.

OFFER TO US. TOKYO, Jan. 20" (Reuter)-An

Up to 31 January this year, the important Ordinance will be, pro-

3. In order to establish the re-necessary payments on mulgated on Wednesday and wil

foreign lationship between the United loans and indemnittes have been be enforced on Saturday next, un- Autonomous Mongolian Govern-already made by the Chungking der which no discriminary tariffs |

ment and the Central Government Government. Therefore it is re- will be imposed on imports from the United States after the existing or to the convocation of the quested that the funds on which trade treaty has expired, states the Central Political Council, the fol-foreign loans and indemnities due

lowing items shall be agreed upon before January Asahi Shimbun" today.

in written

documents between secured and the surplus of cus- Wang Ching-wei or his represen-toms revenues be handed over to tative and Prince Teh or his re- the Central Government." presentative in conference.

Since the completion of legal transaction only be made after the establishment of the Central Government, the Japanese are expected to agree to the two following points:

Under this Ordinance, the news-

paper says, American goods will continue to be accorded most- "favoured nation treatment, while the appropriate. administrative steps will be taken to ensure pro- tection of the rights of Americans residing in Japan.

PHARMACEUTICAL FACTORY

SINGAPORE, Jan. 21 (Céntra:-) A pharmaceutical factory is being established in Singapore by the Southseas Chinese Relief Associa- tion to manufacture medicine for use in China.

(1) The Central Government recognizes the accomplished fact of the United Autonomous Mongolian Government being highly anti-communist and autonomous.

(2) Relating to the adjust- ment of the relations between the two regimes, a separate agreement shall be made after the establishment of the New Central Government with the present understanding as the básla

can

(Delivered in October 1939) 1. Regarding Customs Revenues:

now

of advancing 40,000,000 dollars from

nacions concerned were spon- taneously to do their duty in accordance with the Covernant of

I

CHINA WAR REPORTS

Continued from Paga 1.

assurances, he would, when he had strengthened his hold on Europe. have turned his attention to the main obstacle to world domination. the British Commonwealth an France

WAR AFMS

After contrasting the lack of

the League and stand together central Hupeh amidst a snow-freedom in Germany with that fi

with the British and French Em- pires against aggression and

wrong.

storm.

Butain, and speaking of Ribben-

Allies.

+

(1) A loan prior to the establish- ment of the Central Government

aking advantage of the disrup-trop's part in bringing about the The Shanghal branch office of the Yokohama Specie Bank is

tion of communications, the Chi-War, Lord Halifax compared Ger holding the yields from the cus-

He said that at presen.. their nese are intensifying their activity many's war arms with those of the toms revenues of the Shanghai plight was lamentable and would behind the Japanese lines.

Germany wanted the de- Customs House. As to the proposal become much worse,

In north Hupeh, fighting con-

truction of the British Empire, tinues to the northeast of. Sulhsien, All of them hope that the some 2,000 Japanese withdrawing,

the loot, and the destruction this year Ere the said deposits in the form of a

of all that the Allies stood for loan, under definite conditions storm will pass before their turn from Kancheng are being engaged prior to the establishment of the comes to be devoured, but the by the Chinese near Vinchiatien.

---freedom, Justice and those principles based on the Chris- Central Government, the Japanese sacrm will not pass but will rage

Han conception of the sternal are ready to make efforts to comply and roar even more loudly and

values of every human soul. with such wish if the basis for widely and spread to the south formally adjusting the new rela- and nort. There is no chance of end except through tionship between Japan and China, a speedy that is, the principles for adjust united action," he said, ing the new Bino-Japanese rela~ tions and other arrangements for the transitional period can be de- finitely agreed upon after the adjusting such matters, namely, to establishment of the New Central restore the consolidated taxes of Government in the future.

(2) Arrangements regarding cus-

$40,000,000 LOAN:

(1) Prior to the establishment of the Central Government; the Japanese are requested to instruct the Yokohama Specle Bank to

"BBATTLING IN SNOW CHUNGKING, Jan. 21 (Reuter)—–

ghting is going on in snow- storms, particularly in the area northeast of Sulhsien, while an artillery duel is in progress "across the Han River, in the vicinity of Shayang.

In

Klangsu, Cheklang and Anhwel of the Yangtze River either Provinces to. the Ministry of whole or in part at least may be advance, in the form of a loan, toms revenues after the establish- Finance. to put the income from brought about earlier. But under

40,000,000 - dollars out of the de- ment of the Central Government. - posits of the 'custom; revenues. | UNIFIED CONTROL:

such taxes into the national trea-the present state of affairs, it is sury and so forth after the estab-still dimcult to set a dennite time lishment of the New Central Gov-for it. 1

5. Regarding the Issue of ernment, the Japanese have no ob jéction.

Passes for Travelling on the Nanking-Shanghai Railroad, and Search and Examination at the Nanking Railway Stations..

3. Regarding Salt Tax: As to the proposal for gradually

BULLY DEFERRED?" Hitler's one, way of winning the war was to strike a crushing blow at the beginning, when he had alt the advantage of long prepara- tions, his fortifications on the west. and his air force.

He had not attempted this crush- ing blow. Might that not be for the same reasons that deter a baily the knowledge that he is against

someone who may kit ha back?

ORDEAL & SACRIFICES Speaking of the ordeal and sacrifices that war would bring, Lord Halifax said that the Home Prunt, though possibly not so dangerous at the moment, was just as important to the successfut prosecution of the war

One of the main ways those at

4. After the above mentioned When the Government is estab understanding is made, the United

lished, this will", be... Hquidated With reference to the customs A medical committee has been Autonomous Mongolian

through clearing.

system and the income from the Govern- organised under the Association to ment shall despatch delegates to.

(2) The entire sum of the customs revenues after the estab- plan for the establishment of the participate in the Central Politi- the Yokohama Specia Bank is ment, they should be, in principle, adjusting the administration and

customs deposits now placed lishment of the Central Govern- factory and to purchase patent car Council. medicine for contribution to the 5. In the Central Political Coun- to be handed ever. The monthly placed under the unified control regulations for payment of salt tax

With reference to the Chinese Chinese Government. Mr. Tanell no discussion shall be allowed yield from these revenues here of the Central Government. Nevar-in areas outside of North China Kah-kee, prominent Chinese in-on matters lying outside of the after are also to be put into the theless, the income from the cus- and Mongolia after the establish- desire, the Japanese, in view of the conception of respecting the ad- so that the status previous to the tral Government, have no objection Government. A part of it, how- Mongolia, the part assigned as ever, is to be deposited in the securities for foreign loans being Incident shall be restored, the in pricciple. But regarding the phere of rational savings This Tokobama Specle Bank. The rest excepted is expected to be given Japanese have no objection.

practical adjustment of such mat-would provide practicable help in thereof will be deposited in Chi-to North China and Mongolia, 4. Regarding the opening of theters, It is hoped that negotiations an especially valuable way: nese commercial banks designated

All the income from cus- Yangtze River:

therefore shall be immediately con-

"Therefor, let us rive, and toms revenues is expected to The Japanese also desire the ducted by 'the respective authori- give freely, and let tis be deposited temporarily in the accessary relaxation in warlike ties of both Japan and China, iri: member that one great came Yokohama Specie Bank. P

operations of the Japanese military accordance with the actual local can only end in victory if PT in the Yangtze Valley so that the conditions relative to the main are prepared to spend them- situation for the factual opening tenance of order.

selves in its behalf,”

dustrialist in Singapore, is chair scope prescribed by the under national treamry of the Central toms revenues in North China and ment of the Central Government ministrative power of the New Cen-home could help would be it the.

man of the committee..

A site for the factory has been

chosen and three motors have;

been contributed by a well-known Chinese merchant. -

standing embodied in Article II

AMOY "SPECIAL AREA"!

IV. Regarding Amoy,''• Wang Ching-wei shall recognize

Local Mosters celebrated their the fact that Amoy la a'rpecial New Year festival yesterday.

administrative area.

by the Central Government.

·MONTHLY YIELDS

2. The bureaux for consolidated taxes in Kiangsu, Cheklang, and

2. Regarding Consolidated Taxes: As to the proposal for gradually