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FOUNDED U1 六拜禮 號九月正英港香 SATURDAY, JANUARY

9, 1937.

日七廿月一十

No. 10102

TROOPS POUR INTO CADIZ Nameless Ships Bring Foreigners to Spain

BRITISH CABINET MEETS

TO DISCUSS CRISIS

Gibraltar, Jan. 8.

Recent arrivals from Cadiz assert that detachments of uniformed German and Italian soldiers are landing there almost daily from liners which have no name and fly no national flag.

The Norwegian steamer, which an insurgent gun- boat compelled to stop yesterday in the Straits of Gibraltar, has been forced to leave Algeciras for Ceuta, under escort of armed trawlers.

The insurgent authorities, it is reported, found con- traband aboard the ship, which they suspect to be destined to Government forces.

CABINET IN SESSION

London Jan. 8.

The Cabinet met at Downing Street this afternoon, under the chairmanship of the Prime Minister, Mr. Stanley Baldwin. It is understood it was called to deal with in- ternational problems, particularly the latest develop. ments in the Spanish situation.-Reuter.

France Delivers Reminder

Paris, Jun. 8.

It is understood that the French Government, having received อ re- port that barrocks are being prepared in Spanish Morocco for German troops, has nude a demarche to General Francisco Franco, reminding, him of the Franco-Spanish agree-' ments to debar the quartering of foreign troops in Moroccan territory. -Reuter,

More Germans

Rabat, Jan. 8.

According to Information believed “to be reliable, two or three hundred German soldiers have landed at ports In Spanish Morocco during the past few days,Reuter's Bulletin Service.

More Assistance?

Rome, Jan. B.

BRITISH EMBASSY BOMBED

MILITARY ATTACHE

WOUNDED

FIERCE FIGHT FOR MADRID

Madrid, Jan. 8 Rebel planes bombed the British Embassy here to-day. It is understood that Signor Benito Four incendiary bombs hit the Mussolini is seriously considering roof of the building, wounding withdrawing Italy from the ranks of Capt. Edmund Lance, honorary the Non-interventionist countries, and doubling Italian assistance to the military attache. Rightists in Spain. He will take this. step if other European countries de ellae to accept the Italian proposals prohibiting all direct and indirect old to the combatants in Spain.-United Prcas.

Italians Land

The Civil Governor has amounced the immediate publication of a decres ordering the evacuation of the civil population of Madrid.

. Meanwhile, a fierce battle is raging on the outskirts of the city. Leftist artillery has drawn a curtain of steel around the north-western Gibraltar, Jan. 8. section of the elty, following a night- It is reported here that

long battle in which both sides suffer- con- ed severe casualties. ingent of 3,500 Italian troops has landed at Cadiz, and has entrained

immediately for Seville.-United the woods-between Pozuelo and Maja

Press.

The

French Protest

It is reported that Remisa Hill, In

de Honda has been won and lost three times during the night's fight- ing.

Dawn found this strategic spot in Paris, Jan. 8,

the possession of the Leftists who French Government has are preparing to counter-attack on ometally protested to the Righust Que Maja de Honda Trunt, in an Government at Burgos against the effort to dislodge the strong force of Incursion of German troops in insurgents there.-United Press. Spanish Morocco, drawing, attention to the preparation of barracks in that territory for the use of German soldiers. The landing of German

.THREE, INJURED

+

Madrid, Jan. 8. The British Embassy was bombed troops there constitutes a violation of from the air to-day and three persons the Franco-Spanish Treaty of 1921, it is held.-United Press.

were injured.--Reuter.

Empire Art Exhibition

CORONATION PLAN DIVULGED

in

London, Jan. 8. representative exhibition

Later.

an

It is now disclosed that the wound- ed are the Military Attache, Capt. E. C. Lance, Mrs. Norris, wife of Englishman, who was at the bassy discussing business with allache, and the Embassy cook,

Em- the

The Embassy is at present. used only for the distribution of food,

Incendiary bombs also fell in other

parts of the city, all of them within

the so-called neutral zone, which the Leftists have never recognised.— Reuter.

BRITISH CABINET

GATHERS

EUROPEAN TENSION

UNDER DISCUSSION

I

DANGEROUS SITUATION

London, Jan, 8.

The British Cabinet held an emergency session here to-day amidst the growing European tension, to discuss the question of Itálinn and German military nid to the insurgents plus the alleged German penetration of Spanish Morocco,

These developments are leading to fears that Germany, with a strong foothold, wili confront France in the Mediterranean together with п powerful Fascist neighbour, possibly disturbing the delicate balance of power in the Infand sea.

It is reported that Franco-British authorities may endeavour to obtain n German promise to respect the integrity of Spanish Morocco, and that Germany will not attempt to make a deal with the Rightists whereby the Moroccan territory will become a new, German colony.

A spokesman of the Foreign Office announces that Britain adheres to the demand that measures designed to halt the flow of volunteers Spain shall take priority over 11 other forms of Intervention,

10

Despite the German proposal that the international, Non-Intervention Committee handle the volunteers sub- Jeet, Britain intends to pursuc negotiations through diplomatic channels. United Press.

LONDON INTEREST

London, Jan. 8. The concern

which all parties share with the Government regard- ing the situation arising from the wholesale dispatch of "volunteers" to take part in the Spunish civil war,

SINGLE COPY 10 CENTS

$36.00 PER ANNUM

HAPPY ROYAL FAMILY GROUP.

A new and informal group of His Majesty King George VI, Queen Elizabeth and Prin-

CERRES Elizabeth and Margaret Rose.

SPAIN READY TO ARBITRATE

MIGHT SURRENDER PALOS", CARGO.

was again manifested to-day by the CAPTIVE CREWS

visit of members

of the Liberal

Parliamentary party to the Foreign Ofice, where they were received by Mr. Anthony Eden.

TO BE FREED

Reichstag

Session

Ordered

HITLER MAY ASK CONTINUED POWER

Berlin, Jan, 8.

Herr Hitler has convoked a sitting of the Reichstag, for January 30, the fourth anniversary of the day 011 which he was entrusted by the late Marshal von Hindenburg to conduct The German Government.

HE'S hurrying to page

To see what WHITEWAY'S have to say about their GREAT JANUARY SALE

GERMAN HAND IN MOROCCO

AMERICAN NATIONAL DEFENCE

ENORMOUS SUM FORECASTED

DEBT REVEALS BIG INCREASE

Washington, Jan. 8.

In his nonuni report for the fiscal year ended June 30, the Secretary of the United States Tressury to-day said that expenditures for national defence totalled $911,000,000 which is an increase of 28 per cent, over na- tional defence expenditures for the previous year.

Details of these expenditures wore not revealed, but unofficlar elretes predicted that there will be equally as great or even greater expenditures will be made in the current year,

Mr. Morgenthau. said that Trea sury receipts totalled $4,110,000,000 which is an increase of 8.2 per cent. over last year's.

The national debt, he said, totalicd $33,778,000,000, an increased of $5,- 077,000,000 but interest on the debt had declined from 271 per cent. to 2.65. He said that cash gold asseta totalled $10,000,000,000 and cash silver

assets $1,218,000,000. Cus- toms receipts had increased by 12 per cent, reflecting increased foreign trade.

SILVER ISSUES

Further, the Secretary reported current cash assets on June 30 in- cluded silver seignorage totalling $318,000,056.00- 03 compared with $149,111,441.47 for the corresponding result of the. period last year, 08 0 issuance of

of silver certificates equal to the cost of silver acquired of the Silver Purchase Act of 1934 and the amount returned for sliver received under President Roosevelt's nationall-

PROPAGANDA HURTSsation proclamation of August 0.

FRANCE

DISQUIETING EFFECT

ate ex-

| 1034.

Silver acquisitions from all sources totalled 608,013,528 ounces, costing $395,313,730.

The Budget message forecast a re- lative decline in Treasury receipts from sliver seignorage for the scal year ending June 30, 1930, and

estimates the selgnorage in the Treasury's general fund will increase only by $25,000,000 as compared with the estimated $40,000,000 for the current fiscal year."

On Wednesday, the Foreign Secre

London, Jan. 8.

(Special To "Telegraph") lary saw leaders of the Parliamen-Government has offered to submit to that the Reichstag will deal mainly

Et is learned that the Spanish

Political circles are of the opinion tary labour party.

London, Jan. 8. arbitration by the Non-Intervention with Internal Affairs, but reference and British Governments Both deputations came to express Committee the question whether that.

It is understood that the French anxiety felt within their parties re- part of the cargo of the German ship may be made to foreign politics. garding_the_Spanish situation.Palos-which-the-Government-seized a further period at full powers, hat quieting situation-which-has-arisen-tion.of.$20,000,000 from the.previous.

Herr Hitler will probably ask for changing information on the dis- It is emphasized that there will be in Morocco since the outbreak of the If the Committee considers it is

Spanish civil war. Notes have been not war material then the Spanish no change in the Constitution of the exchanged by the two Governments

Relch Government is understood to be will-Cabinet.

the pr

composition of the

during the past two months. Ing to hand it back to Germany.

The French anxiety is largely due The Spanish Ambassador to Lon- A dental has been issued in semi- don made at communication to this that Herr Hitler intends to lay down tullan,

omlelal quarters regarding rumours to German, and to a lesser degree propaganda in Morocco, effect to the Foreign Offee in-day.

In the meantime the German and is, in fact, war material." Italian notes in reply to the Anglo- French demarche are being con- sidered by the British Gov

Government. Newspaper comment shows a major impression left by the first reading, in that the answers provide a basis for a further advance. towards the conclusion which has been accepted In principle by all. Great emphasis is Inid on need for speedy action.- British Wireless,

DANGEROUS STRIKE SITUATION

POLICE STAND BY WITH TEAR GAS

WORKERS NOT UNITED

Reuter.

CREWS TO BE FREED

Berlin, Jan. 8. The crews of the Spanish ships Aragon and Maria Junquera, Seized by German war vessels off the const of Spain, will be returned" to the Spanish Government, according to a statement issued in official quarters to-day.

They will probably be taken to n Spanish port and transferred to Spanish ships.--Reuter, -

SHIPS CONFISCATED

Berlin, Jan. 5. A communique qunted by u. Geze man news agency confirms the report that Germany has confiscated the steamers Aragon and Maria Junquera in the absence of any reply from the Valencia authorities to the German offer to exchange the passenger and cargo taken from the German steamer Detroit, Jan. 8.

Palos for the two Spanish steamers, Up to now 76,000 men have which Germany will now dispose of. been thrown out of work by the-Reuter's Bulletin Service. strike in the motor industry. Michigan, where police are standing An ugly sluation exists in Flint, by armed with tear gas bombs after a brush with riotous strikers... passed resolutions protesting against

Workers in several factories have

the strike and have formed an anti- strike organisation.-Reuter.

Syrian Crisis Now Eased

FRANCE AND TURKY NEGOTIATING

GEOLOGIST PASSES

The last figure represents a reduc-

estimate for the current year, which was announced a year ago.

Selgnorage receipts for the silver programme during the fiscal year ended June 30 exceed $175,000,000.

SERVICES PERSONNEL

the office of Chancellor and merely raising among the Spanish Moroccan The 1938 Budget for, the United, maintain his post 09

Leader.atives hopes of further concessions, States War Department contains Reuter Special,

and oven of autonomy, under General general estimates covering active mon Frunelsco Franco, the Insurgent on the strength totalling 12,175 come leader. The propaganda is having missioned officers, 771 warrant disquieting effeul in French officers, 675 nurses and 105,000 en-

Pope Pius Improving Gradually

Vatican City: Jan. 8.

It is announced that the con- dition of His Holiness the Pope is gradually improving.

He plans to impart his blessing upon the Manila Eucharistic Con- gress, at its conclusion, speaking over the radio from his bed. He may possibly add a

Rapal Benediction.

It is understood that experi- ments between the Vatican and the Philippines have been con- ducted with perfect reception re- aults-United Press,

Vatican City, Jan. 6. The slight improvement in the London, Jan. 0.

Pope's condition continues. His Holl- Mr. Thomas Crook, the well-ness passed a fairly comfortable day known British geologist, died to-day. without much pain.Heuter's Bullet- -Reuter,

tin Service.

PROMOTIONS IN NAVAL VOLUNTEER FORCE

His Excellency the Governor has been pleased to make, under Regulation 9 of the Regulations of the Hongkong Naval Volunteer Force, the following promotions in the Hongkong Naval Volunteer Force:-

Morocca.

In addition, preparations are in hand for the arrival of German troops, and guns are reported to have been mounted al Ceuta.

listed men in the Regular Army and 0,415 enlisted in the Philippine Scouts.

A lump sum estimate, the amount of which has not been disclosed is The British Government is con- included for the construction of sidering situation and awaiting, buildings including undescribed pro- further information from British au-jects.at Hickham Air Field and thorities. Meanwhile, a too serious Hawail. view of the matter is not taken in London-Reuter Special.

For the enforcement of the China Trade Act, the 1938 budget estimates $13,880 compared with the 1037 appropriation of $9,000. The increase will be used in the office of the Assistant Registrar in Washington.

GERMANY'S RESPONSE

Berlin, Jan.

£ The French report of German In- tentions in Spanish Morocco Is

The New Budget provides $54,075 described in well-informed circles as as salaries and expenses for the too absurd to merit official dental, It

United States Court in China which Is suggested the report is merely an

was the same as for 1937, and $123,- invention, the purpose of which is

000 for the promotion of Far Eastern to alarm public opinion.

Commerce also unchanged from 1987. Meanwhile, H is announced here

It is further estimated that the that a Portuguese shipping company

administrative expenses of the Jarvis, in Hamburg has decided to extend its Baker and Howland Islands, the services to northern Morocco and potential airline stations would be ulso to Algerian ports. — Reuter $30,000 as compared with the 1937 Special.

appropriation of $35,000,- United Press.

Foreign Office

London, Jatz B The Italo-German replies to the Anglo-French appeal for ban an volunteers to Spain, is under active. consideration of the Foreign Office. It is understood that the British view Is that any further negotiations should continued through diplomalle channels and should run concurrently. with the work of the Non-Interveni- tion Committee.

be

To be Commander, with effect from His Excellency the Governor has January 8, 1037, Lieutenant-Com-approved the following alterations in mander James Petrie, D.S.C.;

Spanish the Hongkong Naval Volunteer Force: To revert to Honorary Commander, at his own request, with original seniority of January 10, 1934, Com-

Arms Exports Stopped

ROOSEVELT SIGNS NEW MEASURE

Washington, Jan. 8. Immediately President F. D. Roose tion, the machinery was set in motion velt signed the arms embargo resolu- to prevent further shipments of war material to Spain

Offelal comment, up to tie moment, the German and Italian replies to the is lacking, but it is pointed out that Anglo-French notes may be regarded SWEEPING ADVANCE

indicate a readiness to maintain the with some satisfaction, insofar as they of The following offelal communique contemporary Empire art will be held from General Franco was received in

principle of non-intervention. London during the Coronation Hongkong this morning at 7 o'clock: perlod.

Meanwhile, Mr. Anthony Eden, the Invitations have been sent out by

Istanbul, Jn. 0.

Foreign Secretory, has discussed the Licences granted to Mr. Richard M. Kemal Ataturk, President of the Colonial Society of Artists, Nationalists launched

sector, the In the Guadalajar fe, Jan. 9.

situation

with leaders of the Dinely to export £900,000 worth of through the High Commissioners of counter-attack and forced

a brilliant Turkey, is returning from the Turko-

arms have been revoked by the Labour Party. It is learned that the the Dominions and India, asking each to evacuate several important post-

British Government has received re- Munitions Control Board and the us to send from 80 to 100 exhibits, of tions. A machine-gun and mony have lessened, owing to the resump- Franco-Turkish tension appears to

(about three weeks ago) of used licences issued to Mr. Robert German activity in which sixty per cent. must be oils, rifles were captured, and Captain tion of direct negotiations between

mander Andrew Lusk Shields;

Morocco; and that Cuse, in New York, have been cons thirty per cent. water colours and Foderico Perez Urbano

the situation has been discussed with colled-Reuter was found the two countries. The French rug¬" To be Acting Sub-Lieutenants, with To be removed from List II, having the French Government, ten per cent, black and white. among the dead.

gestion that the discussion of the effect from December 2, 1930, Proba- left the Colony, with effect from Unofficial reporta rrecived from Canada and India have already

The rebel troops continued their Syrian problem by the League of tionary Cadets Gerald Hollings December 2, 1930, Lieutenant Paris state that preparations are accepted the invitation. It is ex sweeping advance upon Madrid, cap-

Nations be postponed from · the Worth Band. Georga Merriman, Theodore Patrick Kenneth Kembi, well advanced to provide accommoda pected that the open exhibition will turing the Pozuelo and Humera rall- January 18 meeting, has also, contri- Patrick Donald Metcalfe Munro, Sub-Lieutenant Andrew John Man- tion and supplies for a large number coincide with a Royal Academy ex-way stations. The enemy is being buted to the amelioration of the John Bertrand Brunswick Shaw, ning Hozeland, Sub-Lieutenant Edwin of Gemine troops expected at Ceuta hibition-Reuter Special,

(Continued on Page 14,)

| situation.-Reuter.

William Ralph Ewing Stephenson, Jahn Speirs,

and neighbouring points-Reuter,

Syrian border to-night. the enemy

To bo Lleutenants, with effect from December 2 1030. Sub-Lieutenants Frederick Baker, Hugh William Mac- pherson Dulley, Leslie James Stevea son, Richard John Vernall;

The name of Dr. Leung Ti-au of the Hongkong Sanatorium wk), Hó pital has been added to the list of medical practitioners,