1937-07-13 — Page 1

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No. 18230

二拜禮 骏三十月七英港香

TUESDAY, JULY 13, 1937.

日六初月六

BINGLE COPY 10 CENTS $36.00 PER ANNUM

WAR NOW FEARED

Peiping Again Hears Guns Pound In Night

CHINESE BELIEVE ONLY HOPE OF AVERTING DISASTER LIES IN INTERVENTION BY POWERS

Shanghai Throwing Up Street Barricades As Troops Pour North Towards War Zones

Peiping, July 13.

The rattle of machine-guns in the Wangping area, only about six miles outside Peiping, caused fresh consternation in the old capital at 11.35 o'clock last night just as the population was commencing to breathe more freely.

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Japanese residents in Shanghai have been warned to be prepared to ovacuate their homes hurriedly in the event of trouble developing. Sandbag barricades are being thrown up in Shanghai danger areas as the tension between China and Japan grows more acute. Shang- hai fears it will soon see such scenes as these, pictured above, when Japanese patrolled Shanghai streets in the Hongkew area, and the Chinese city, Chapel, smoked in ruins near at hand.

There had been reports that during the afternoon Chinese and JAPAN

Japanese had reached an agreement whereby all troops should be withdrawn to positions roughly the same as those occupied before the incident of July 8. The hope thus engendered was shattered by the gun chatter around Wangping.-Reuter.

SITUATION MORE OMINOUS

Shanghai, July 13.

The situation in North China, despite two attempts to reach a friendly settlement, has become more ominous. It is feared a final showdown and serious fighting is now inevitable.

Little credence is attached to the idea that the in- cident will "fizzle out.” The Chinese believe the only hope of averting conflict lies in the intervention by the major powers.

General apprehension is felt in Shanghai. The city authorities are erecting sand-bag barricades around the North Station, scene of

of the most violent bombardments and infantry engagements during the fighting of 1932.

some

Powers May

ה.

Urges Britain

And Japan To Assist China

In Own Interests To Collaborate, Declares Sir F. Leith - Ross

London, July 12.

Tanks and military lorries do not make the best commercial travellers, declared Sir Frederick Leith-Ross at a dinner given by the Federation of British Industries to the Japanese economic mission now visiting England, Sir when referring to the present situation in China. Frederick, however, expressed confidence that common- sense would prevail and overcome all difficulties.

Sir Frederick said he was very glad to see an expansion of Japanese trade with China in the last eight months, but he believed that this could be much improved by a better Sino-Japanese understanding. Incidents such as the present were bound to recur so long as the

China were not respected.

WARSHIPS territorial integrity and the normal sovereign rights of

ORDERED

INTO

S. CHINA PORTS

Move To End Precautions Taken To

War Threat

Rumours Of Parloy Over Continuing China Tension

U. S. Warns Both

Protagonists

TROOPS CROWD RAILWAYS

Washington, July 12. Reports reaching here state that main railways leading' north are practically monopolised by troops, moving towards the nounced to-day that Mr. Cordell The State Department an- scene of conflict. Meanwhile, trainloads of Japanese troops are Hull, Secretary of State had arriving at Fengtai and Tientsin from Manchuria and Japan.

informed the Japanese Ambas- Emergency orders have been given to Shanghai Japanese sador and the Counsellor of the firms to be ready if necessary to evacuate women and children Chinese Embassy that an armed from the Hongkew area, while Japanese Consuls at other treaty conflict between Japan and China ports are also taking protective steps.-Reuter,

would be a great blow to the fcause of world peace and pro- |gress-Reuter.

TWO HOUR CLASH

Pelping, July 13.

Fighting "broke out late last night | at Chiasenmino, only two miles from Pelping's West Gate, and lasted for two hours, according to Chinese re- ports, after which the Japanese re- flred.

Artillery and machine-guns were, engaged throughout the action,

It is stated that after a conference between Chinese'and' Japanese mill- tary officers, Chinesó returned to Peiping from Wangping with the re- port that there had been a serious disagreement over the interpretation of the terms of the armistice,-feu- ter.

NANKING ATTITUDE Nanking, July 13. Japanese authorities are insisting that the crisis in North China musi be settled locally but the foreign. omico declares that it has informed Sino- Iocal the Japanese that no Japanese agreement will be valid unless it la first approved by the Central Government.

This evoked a strong Japanese warning against interference with a regional settlement, concludda to meet specific local conditions.

The Nanking Government, moving swiftly, has promulgated a law enabling the roquiation of foodstuffs, labour and military supplies through

(Continued.on Page 12.);

Situation

"Extremely

Grave" Now!

London, July 12,

A. Chinese Embassy statement, issued hero to-night, charac terises the situation in North China as extremely grave.

QUO TAI-CHI SEES EDEN"

London, July 12.

Prevent Incidents; Ronins in Swatow?

Foochow, July 12.

'It is reported here that the 13th, and 16th. Japanese Naval Squadrons at Formosa have been ordered to make a demonstration cruise along the southern coast of China. Two cruisers have already arrived at. Amoy, one at Swatow and another at Foochow.

There is also an alarming report prevailing here to-day that a number of Japanese "ronins" have secretly arrived at Swatow. Confirmation of this report is unavailable, but the Chinese authorities here have taken all necessary precautionary measures against possible

incidents in view of the critical situation in North China.

-Wah Kiu Yat Po.

TROOP MOVEMENTS

Peiping. July 12. Although large numbers of the Mr. Quo Tal-chl, the Chinese Am-Japanese troops at Lokuschlão have bassador, to-day called at the For- been withdrawn to Fengtai, consi- eign Office to see Mr. Anthony Eden, derable Japanese forces still remain presumably in connection with the there. threatening North China situation.-- Router.

I is rumoured that the Japanese wish to establish a garrison there. -Wah Kiu Yat Po

STOP AT TIENTSIN

Tientsin, July 12,

Striving To Put Stop To Intervention

Britain Pursues Delicate Task

"Nothing To Do With Free State

#1

Belfast, July 12. Northern Ireland to-day cele- brated the anniversary of the Battle of the Boyne and 40,000 Orangemen paraded in Belfast before the Mayor of the Clty.

In an address to the marchers, the Mayor declared:

"We have our own constitution and our own Parliament. We have nothing to do with the Irisi: Free State."-tcuter Bulletin Service.

NO HITS IN NAVAL BATTLE

Insurgent Cruiser Engages Three Convoy Ships

Valencia, July 13.

A bloodless naval engagement was fought at daybreak to-day between three Government warships and an Insurgent cruiser a short distance of the coast,

Only by making China more pros- perous, sald Sir Frederick, could Britain' hope to improve trade with her, and no country was likely to gain more from more prosperous state of affairs in China than Japan. Therefore, it was in the best interesta of Britain and Japan to co-operate in restoring a strong and peaceful China. It was because of this mutual interest that he had confidence in future Anglo-Japanese relations.

Sir Frederick suggested that the present expanding trade provided a most

favourable opportunity to. eradicate misunderstanding by smoothing the path of commercial relations. He urged that the exist- ing system of quotas should be re-

some placed by

other system to Britain

mutually advantageous and Japan.

The Japanese Ambassador replied to the speech-Reuter.

Discussing Partitioning

Of Palestine

As Arabs Threaten Wide Boycott

ARABS THREATENING

-

London, July 12. The House of Commons will debate the Palestine Royal Commission's Report on July 20, during the dis- cussion of the Culonial Office vote.

The report recommends the The Government craft were escort- Ing a freighter when the Insurgent partitioning of Palestine into three cruiser steamed upon the scene. parts, giving the Jews sovereignty in Shells dropped wide of the targets one, the Arabs sovereignty In when the vessels opened fire, not one other, and Britain a mandate over hit being registered.

The cruiser the third portion, which will include the holy places and a wide outlet to steamed off again after a short ex-

the sen which Arabs will be free to change of fire. ROME IS HOPEFUL

Meanwhile, on land, severe fight-use-Reuter. Itore, July 12.

ing continues, and the Insurgents claim 3,000 Government troops were Omcial quarters take a hopeful

killed on the northern sector of the

Jerusalem, July 12 vlew of the prospects of a peaceful

Madrid front during the week-end Aunl Bey Abduladi, leader of the It

London, July 12. describer the

settlement of the North China In- Japancso

A Japanese troop train, carrying

Istakalist Independents, who seek an fighting-Reuter Bulletin Service, action as a premeditated altempt

cident, as shown by the fact that no about 700 Japanese troops of the In the course of a long statement

autonomous Palestine within a wide special measures have been ordered Kwantung Army, left Shanbalkwan on nan-Intervention

PLANES ARRIVE discussion. to reduce North China to

Arnb federailon, is hending an Arub the for the protection of Italian residents early this morning. It passed Chin- Eden, Foreign Secretary, declared fo

carried out last week, Mr. Anthony

delegation of five to Genova in status of Manchukuo,

Bayonne, July 12.

Mandatea Corn- in the affected arens-Router.

A number of aircraft have arrived August when the wangtao at 2.30 am. It is under-day that while conscious of the dif- at Santander to assist in that city's mission will discuss the plan

for RUMOUR OF PARLEYS

stood that these troops arc fully ficulty of their task in accepting the defence. They have already been partioning of Palestine.

The Arabs here are stated to be equipped. Washington, July 12.

mandate to seck an agreement on engaged according to a Basque des-

anti-British boycott non-intervention, Brlifah statesmen patch, which states they attacked organising and There are rumours abroad that The train only proceeded as far as considered it their duty to make the to-day the Insurgent cruiser Almir from the Mediterranean Sea to the [British circles desire consultations Tientsin, where it remained at the attempt.

ante

and Cervern the destroyer Indian Ocean, if the partitioning is with the United States over the North East Station until this afternoon.-

completedReuter Special China affair, to be held under the Wah Ktu Yat Po.

They recognised, too, that realisa-Velasco off Santander. framework of the Nine Power Pact

tion of their aims must depend large- The warships were forced to return.

Bilbao. ly upon an increased measure of to International co-operation.

The planes also effectively inter- Insurgent retreat over an area of ten cepted Nationalist machines attempt aquare miles of the west of Madrid. The Government is fully WRTG After conferring with the Japaneso Seven

the Loyalists offensivo. They are more Japanese military of the urgency of the problem and is ing reconnaissance fights over the Thus was revealed the strategy of Ambassador,, Mr. Hirosi Saito, the planes arrived here this morning.

city.-Reuter, at present actively engaged-on tho

attempting to reach the Estremadura United States Secretary of State, Mr. There are now twenty Japanese į necessary work. It is the Govern-` LOYALIST STRATEGY

road, and it iHey, succeed will elther Cordell Hull, announced he had been military planes at the aerodrome ment's intention, said Mr. Eden, to

Madrid, July 12. Isolate the Insurgents main bases and informed that Japanese were making outside the Japanese Bartacka i make in Teport to the 1 Nón | The General Staff announced to- out their communications or foren

(Continued on Page 13.) Wah Klu Yat Po

(Continued on Page 13.)" day its troops had sivered the path of them to retrest.—Unted Press, e

While China is anxious and prepared to minimise the incl dent, she is determined, If neces- sary, to resist at all costs further oncroachment, upon her terri tory, the statement goes on.

It is alleged that over 20,000 Japanese troops are concentrated at Fougial, and outalde Pelping, while in addition Tokyo han despatched', the Fifth Division, from Japan, and. has already mobillard the Tenih Division: for possible overseas sorvičenie

ftelier.

or the implied obligations of the

Kellogg-Briand Pact."

PLANES CONCENTRATE

Tientsin, July 12.