1937-03-05 — Page 1

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The

FIRST EDITION

Library, Supreme Court

Hongkong Telegraph

FOUNDED 1881

·五拜禮 號五月三英港香

FRIDAY, MARCH 5, 1937.

日三廿月正

No. 1514K

FRANC SLUMPS

ON RUMOUR OF DEVALUATION

Official

British Intervention

GOVERNMENT DENIES

CABINET CHANGES

Paris, Mar. 4.

BRITAIN

SINGLE COPY 10 CENTS

$16.00 1ER ANNUM

DUNGA

make every road

a SAFER road

URGED TO LONDON'S

SPEED ARMAMENTS

CHURCHILL

ASKS NATION TO MATCH GERMAN AIR POWER

London, Mar. 4.

A qualified blessing was given the Government's rearmament policy by Mr. Winston Churchill, long an advocate of stronger British defence. forces, at the resumed debate in the House of Commons to-day, when the Defen ce Bill was up for third reading. He declared that the fact that the Government was pursuing a five-year plan on this scale, the evidence of the country's great financial strength, the general acceptance of the policy by all parties, the welcome it had received, particularly in the small countries, "all give the Dominions and foreign countries advantages for walking in step with us.”

"The Havas News Agency announces to-day: stabilisation of the franc, if carried out to-morrow, as appears to be generally believed in financial circles, will

"We have now_got a foreign policy based on the not be effected below the present parity of the franc."League of Nations Covenant and upon special agreements

Reuter.

Paris, Mar. 4.

DEVALUATION RUMOURS

Prices on the Bourse substantially improved to-day on rumours of impending Government changes and currency devaluation.

with France, which is what the great mass of the nation

desires.

"If we resolutely pursue our defence programme for four or five years we are likely to be in a far safer and. more agreeable position than at time since German re- armament began in earnest," Mr. Churchill declared.

But they had not heard the Air Estimates, he warned, which were most important of all. He hoped that cotne, and he would be reassured it, froceeding on the present lines, more than £60,000,000 or £70,000,000 were

There were reports of the imminent resignation of the Finance Minister, M. Vincent Auriol, and his replace-large supplementary estimates were to ment by M. Leon Blum, the Prime Minister. It was also suggested that M. Charles Rist, the financial expert, would replace M. E. Labeyrie, Governor of the Bank of France.

required by loan in the coming year. Where Are The Guns?

Mr. Churchill regretted the absence of a quantitative statement in the

It was suggested that the franc would be devalued matter of rearmament, or fixed dates from 105 to the pound sterling to 112, lowest legal tender,

and that a free market in gold would be reestablished.

The Impression has been gained, and has grown, that the Government will be bound to adopt positive meu- to solve the Treasury and sures economic difficulties, instead of-con- tinuing the policy of "wait and see."

When the Bourse closed, 3 Per Cent. Government bonds were 73.75 against 70.95 yesterday. Bank of France shores were 1,475 against 7,900, and Rio Tintos were 3,150 against 3,240.- Reuter.

Bears Open Attack

London, Mar. 4. Paris bunks closed at noon to-day for the mid-Lent holiday.

When the

IAPANESE

SHIP GOLD TO FRISCO

4o progress points.

Germany, he asserted, has 1,500 Runs, apart from the guns in pori- on. How soon, he asked, would Britain have 1,500 good, modern runs, with trained crews and with all necessary equipment?

--He-find the same criticism.to make. of the Air Force, which was nt pre- sent in arrears, he said,

In no other generation would the tiouse of Commons have been willing to continue in complete ignorance of this vital to the security of the

IMPROVED BALANCE nation, he went on, especially in view

URGENTLY NEEDED

"bear" operators seized the oppor- NO CAUSE FOR

tunity and launched the heaviest

delve against French currency seen

for some time,

Discounts on francs

delivery

for forward

against sterling slumped

sharply to 1.81 for one month and

APPREHENSION

Tokyo, March 4.

The Japanese Government has de- 3.37 for three months, compared tofelded to ship gold valued at 50,000,- 1.27 and 3.03 respectively at the 000 yen, at current prices, to America opening.

Pressure against spot francs neces-

in three instalmenis,

of the Governments admission of mis- calculation.

Could the Government assure the House, he asked that the Brilish Air Force a year hence would be more nearly a match for the Ger- man air fleet than it was to-day, or that the German Army would not then still maintain its superiority over the French?

Naval Superiority Mr. Church. said that he thought they could rely upon the superiority The first instalment will consist of the future British Navy in Europe.

aboard the Asama Maru

APPROVES NEW DEFENCE LOAN

MR. WINSTON CHURCHILL

silned the heavy intervention of the of 18,500,000 and will be shipped as long as the right feeling towards Rearmament

British Equalisation Fund.

to

The dates of other shipments have not been disclosed.

The Anglo-French understanding, he continued, undoubtedly amounted Mr. Scitare Yuki, Chief of Gen-to-day to a defensive alliance against

unprovoked aggression,

he

Admittedly

Necessary

eral Affairs has asserted that these shipments in no way give cause for "Anglo-French friendship," apprehension regarding the Japanese maintained, "Is one of the greatest ALL PARTIES AGREE specle reserves.

guarantees of the continuance of However, he said that the Govern-peace, or, at the very worst, our Joint ment and the people of the nation survival."

MORE COLD NEEDED

FUNDAMENTALLY

Mr.

To Sabotage R.A.F. Plane

Disclosed

London, Mar. 4. A case of what appears to be deliberate damage to a Service aeroplane at a Midland aircraft establishment has been reported to the Air Ministry.

The incident is now being in- vestigated by the secret service. It is understood that the Alr Ministry does not consider it to be a sérious caso of sabolage

Other incidents are also under investigation--Reuter.

GERMANY STUNG TO PROTEST

MAYOR LA GUARDIA "INSOLENT JEW”

CALLED HITLER

"FANATIC"

Washington, March 4. Acting on instructions from Berlin, the German Embassy has protested to the State Depart- ment against a speech made by Mr. La Guardia, the Mayor of New York, in which he referred

AIR

DEFENCE PLAN

Wardens to Guard Public Safety

London. Mar. 4.

London's air raid defence plans were announced by Mr. Geoffrey Lloyd, Under-Secretary for Home Affairs, in the House of Commons to-day, -when he stated that a memorandum was being despatched to local Councils re- commending them to organise, in consultation with the police, service wardens for the safeguarding of the general public in the event of an air attack.

It is proposed to establish fixed posts from which the wardens should operate approximately one post for every five hundred inhabitants, while in the commercial areas the number of posts will be governed by distance.

Each post, said Mr. Lloyd, will be manned by at least two wardens. The wardens will advise on air raid pre- cautions and give immediate assistance in dealing with air raid damage. They will also probably be utilised for the distribution of respirators to civilians.

MANY DIE IN MINED STEAMER

SANK AFIRE OFF SPANISH COAST FLYING FLAG OF GREECE?

Perpignan, Mar. 4, A ship, the nationality of which-has-not-yet-been-de- termined, struck a mine off Palamos, within Spanish terri-

torial waters, to-day.

The vessel caught fire and sank, with the loss of many

lives. According to one report, the ship was the Greek tanker, Loukia, which was carrying 3,000 tons of petrol when the dis- aster occurred.--Reuter Special.

POPULAR

to "the brown-shirted fanatic NOVELTIST

who is now menacing the pence of the world."

PASSES

JOSEPH HOCKING DIES SUDDENLY

At a press conference this after noon, Mr. Cordell Hull, Secretary of State, said that although he was not |acquainted with the facts concerning Mr. La Guardia's speech, he regarded ony ulterances which might be offen- sive to another Government as a matter of regret, and added that the

London. Mor. 5. American Government would deal with the situation as soon as he had

It is learned that the well-known had an opportunity of studying the novelist, Mr. Joseph Hocking, has text of Mr. La Guardia's remarks passed away-Reuter. Reuter Special.

RUBBER EXPORTS

Volunteers undertaking the duties of wardens, Mr. Lloyd stated, will be trained and supplied by the Government with the necessary equipment. The Government were confident that a sufficient number of volunteers will be forthcoming for the effective performance of this ghost important part in the work of Eivil defence.

It is estimated that at least 250,000 wandens will be required.-Reuter Special.

FRANCO ACCUSES FRANCE

FEARS INVASION OF MOROCCO

OVIEDO STILL HOLDS OUT

Salamanca, Mar. 4.

A Note accusing France of planning to invade the Spanish zone in Morocco has been sent by General Francisco Franco, in- surgent leader, to the signatories of the Algeciras Treaty, accord- ing to news sent out by the Salamanca broadcasting station.

The Note alleges that the French activities on the frontier in the region of the French Protectorate and Spanish Morocco alm at causing disturbances in Spanish Morocco, providing a pretext for French thus pro

invusion.

It

is added that the insurgent Government will nak the signatories of the treaty to appoint on inter- national commission to very the truth of the allegations. It is also slated that General Franco will ask the London Non-Intervention Com mittee to put an end to these activi- tics. Reuter.

OVIEDO'S SIEGE ··

Burgos, Mar. 4. Notwithstanding flerce assaults on

1

leaving the British Empire was not with- Foreign Exchange circles its Lon: Kobe on March 5 en route to San drawn by the United States. don point out that to-day's slump of Francisco.

not indicative of any the trane s new developments, but serves

of the emphasise the seriousness French financial situation-Reuter,. No Government Changes

Paris, Mar. 4. It is categorically denied in au-

RECRIMINATIONS thoritative circles that the Govern-

Berlin, March 4. ment has any intention of modifying

by must co-operate in expanding Japan's The Labour Opposition motion, re-

London, Mar. 4.-- Mr. La Guardia's alleged reference

London, Mar. 4. its present composition, olther

Neville Chamberlain, the to Herr Hitler has caused a storm of

By a Protocol amending the 1934 Briain, including new Ministers or reshuffi- creative power and the development ing portfolios. It is added that no of the country's natural resources.us ecting the Defence Loan Bill, was resignation is contemplated by any well as the promotion of exports, defeated by 241 to 117, and the Bill Chancellor of the Exchequer, vinding indignation in the German press.

The Nazi journal, Angriff, violently agreement between France,

India, Holland and Siam regulating because the improvement of an inter- was given third reading and passed up the debate on the Defence Loan

on to the House of Lords.--Reuter. Bill to-day, said that the addresses attacks Mr. La Guardia, whom it the production and export of rubber, Oviedo, the Government forces have Minister.-Reuter..

national balance was the country's

in the House of Commons had shown describes as "an insolent Jew."

signed on February 5 and published suspended their attempts to capture tho elty, according to insurgent most urgent need.

Munitions Works there was a real," general and The Deutsche Allgemeine Zeltung | lo-night, Article 4-A of the agreement

fundamental measure of agreement says: "This stupid vulgarity must notis amended as follows:-Netherlands pos

The city has suffered terribly from London, Mar: 4.

be ignored by Washington. We ex- India: 1936, 500,000 ons: 1837, 620, the Government bombardment. The upon the necessity of rearmament. Fourteen new or converted, muni-

The The

that pect that suitable measures will be. 000 tons; 1038, 640,000 tons." Opposition argued Mr. Ikeda, Chiel Manager of the

In force-British Cathedral tower has been destroyed to the level of the nave, whilst there Bank of Japan, commenting on the tions factories in various parts of the Britain's armamentis were excessive taken to prevent a repetition." Protocol is now

Are foreshadowed to country

in because other nations had promised! Reuter Special. shipments

fa not a single building which is not of Japanese gold

marked by shell bursts and bullet America, to-day said that in view of Ordnance Estimates totalling £18,-te assist if Britain were attacked; but

104,000, which

holes. anticipated commercial contracts re£10,178,000, compared with last year, to assist those other nations in turn, is an increase of that implied that Britain would have

It is estimated that, another thou- quiring yon, and also the GovernReuter Bulletin Service..

sand ment's

it the necessity arose, and his in-

civilians have been killed payments of obligations

creased British liabilities, rather than

during the past week-Reuter. abroad, the shipment of 50,000,000

decreased them; yen in gold would probably be in-

Although Britain, under the League

REPATRIATION OFFERED sumclent.

Covenant, had no liability to assist

Paris, Mor, 5. with arms the victims of aggression,

The Spanish Government has the he believed

DI measure

agreed with the iden of repatriating rearmament the Government was

Introduction of the International Non-Intervention Scheme volunteers from Spain, providing the advocating Wes да essential preliminary to the final

stage of is likely to be postponed a fortnight from March 6, the insurgent fortes reciprocate, accord- disarmament-Reuter,

ing to a Spanish press message from originally arranged date for commencement of supervision on Valencia-Router. the Spanish frontiers, as it is now admitted in British circles that it will be impossible for observers of the neutral powers WINDFALL FOR EXCHEQUER to reach their posts either on the high seas or on the land borders by that dato,

Caledonia Completes Long Trip

London, Mar, 4.· The Imperial Airways (Iring- 'boat Caledonia ban made a return non-stop 'voyage from Alexandeta to Southampton in fifteen and a quarter hours, despite head winda and periodio bad weather,

The departure from Alexandria at 18.30 in the morning was faol- ∙Hliated by tho uso of a flars path. Commiteuter.

The problem, therefore, was that of replenishment of the gold supply. In the event of further shipments being necessary, it would be decided inter whether to send newly mined

the gold or to increase

purchase price of gold-United Press.

SHIPPING ORDER

London, Mar. 4.

French Navy

Personnel

Increased

Paris, Mar. 4,

The French Navy's effectives uro to be increased.

The number of naval officers will be raised from 2.112 to 2,340 and the

The Polish steamship line the number of engineer officers from 418 Gdynia Amerika Line, has ordered to 516, not including Reserve officers from Swan, Hunter and Wigham on the active list and midshipmen, Richardson, the famous Tyneside ship-konstr

Wirclear.

NEUTRAL SUPERVISION IN SPAIN DELAYED

London, Mar. 4.

AMP London, Mar, f

EMPIRE DEFENCE

London, MaRREK Voluntary contributions to the cost of Imperial defence by Colonial dave i building firm, a motor vessel of 11,000. FeNaval" ratings will be Increased Dominions Office, has now returned to and are bound fdr Spain from“Amaxi" WHEN Kre not labia Lac ernment amount 1:0 000 to the tone for the Bouth American service from 01,118 to 70,017-Reuter duty at the General Post

- RETURNS TO FOST

London, Mar. 4.

The Non-Intervention Committee's It has been decided, also, to recom-The Exchequer will benent to the Lieutenant Colonel E. T. Crutchley, Public Relations Officer in the Post experts have decided to recommend mend a special control systems for the extent of R352,740 in death duties Office, who was seconded temporarily extension of the control system to la- Canary Islands in order to end on 4 to, just proved, totalling contreband 1,004,300, left by a Miss Watson, last summer to act as additional as- clude ships of powers which are not foreign ship landi

tunity be who died last December, and who sistant ---- Under-Secretary in the

there which might

**ships. | wait a puzdanent Director at Sutton's, aignatory to the neutrality agreement carried to gpain, ging

atrol by the the well-known firm of carriers, Omce.

Bryan Wireless

ca and other non-European porika Neus valorswatient – Beuterede Brition Wireless,