1937-11-12 — Page 1

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FIRST EDITION

FOUNDED IBAL

五拜型號二十月一十英港香 FRIDAY, No. 15543

NOVEMBER 12, 1937. 日十初月十

Hongkong Telegraph.

SINGLE COPY 10 CENTS $30.00 PER ANNUM

OF INTEREST Το HONGKONG... LADIES SPECIAL WINDOW DISPLAY Of [GORGEOUS EVENING DRESS FABRICSUST RECEIVEDİ from PARIS;

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HARSH PEACE TERMS DISCLOSED

China Would Become Britain Prepared To Defend S'hai

Virtual "Puppet" If Extremists Won Way

SUGGEST JAPANESE PRESIDENT TO REPLACE CHIANG KAI-SHEK

Washington, Nov. 11.

Peace terms of the extreme Japanese militarists for the settlement of the Sino-Japanese conflict were revealed to Reuter to-day as follows:

1. Recognition of Manchukuo and the formation of a Sino- Manchukuo economic bloc;

2, An autonomous, anti-communist North China and Inner Mongolia, both under Japanese protection, but controlling all their

own taxes and customs revenues.

3. A Japanese Inspector-General of Customs and Japanese advisers in all national and provincial departments, the revision of Chinese tariffs to promote the exchange of Japanese manufactured goods for Chinese raw materials;

4. Generalissimo Chiang Kai-shek to make way for a Japanese President, China to join the anti-communist bloc;

5-China- not to possess an army nor war planes, Peace Preservation Corps to be formed, and all commercial air services to be managed by Japan, and all aeroplanes supplied by Japan.

Some Japanese militarists are also believed to be her own concessions demanding that Japan shall have

at the various treaty ports such as Shanghai, Foochow, Amoy and Canton, and retain islands on the China const which she now holds, for aerial bombing stations in caso of anti-Japanese agitation in the interior of China, or failure to carry out the peace terms.-Router.

Disagreement Behind

Scenes In Tokyo

Washington, Nov. 11.

ure

An outline of the terms which ex- treme Japanese militarists urging should be imposed on China; received from a usually well-inform- ed source, shows that they are such as would make China completely subservient to Japan without

POWERS

TO ACT

General Sugiyama

Japan's War Minister is believed to be at odds with Prince Konoye; Prime Minster, over the terms of Japan should accept from

pence

China.

FORCE NOT NECESSARY FOR PEACE Must Show War Does Not Pay, Says Dr. Wellington Koo

Brussels, Nov. 11. Broadcasting to America this even- ing, Dr. Wellington Koo, chief Chinese delegate to the Nine-Power Confer- ence, referred to President Roosevelt's statement that about 60 per cent. of the people of the world wanted peace.

He said there were many ways in which the united purpose and joint determination. of the vast majority of the people of the world could be exerted effectively to check inter- national lawlessness and oppression without resorting to the use of force. Any concerted and co-ordinated plan, put with moral diplomatic and economic restraint on the part of the peace-loving nations, would have a deterring effect upon the forces of violence and disorder in international

STOP PRESS QUICKLY in order to be derade peace the

technically violating the Japanese GOVERNOR DENIES

offelst assertion that Japan has no territorial ambitions in China.

On the other hand, it is stated that behind the scenes in Tokyo there are wide differences of opinion,

and

particular the Premier, Price Konoye, and the War Minis- ter do not see eye to eye-Reuler.

ה!

KING IN NO DANGER

London, Nov. 11.

Sir Samuel care, the Home

PLAN TO VISIT

CANTON SOON

His Excellency Sir Geoffry North- cote has denied the rumour that a trip to Canton has been arranged for himself, and a Government party, "There is no truth in the runour." Sir Geoffry's Private Secretary said this morning. "No arrangements or preparatons have been made for such a trip."

JAPANESE IN NANZIANG

Shanghal, Nov. 12.

10.20 a.m.).

Secretary, Informed the House of It is reported that

cerned in the Cenotaplı

Incident.

A

If Japanese Reply Is In Negative

FINAL APPEAL SATURDAY?

Brussels, Nov. 11.

In have durable world must make it certain that war does not pay, he said-Reuter.

Twelve-Hour Curfew For Jerusalem

ANOTHER BOMB OUTRAGE

Jerusalem, Nov. 11.

*

"As soon as we receive the Following 3 bomb outrage, Japanese reply we shall decide twelve-hour curfew has been imposed what to do, but we have decided for the whole of Jerusalem, starting to net quickly," stated M. Yvonat 5 p.m. every day. Delbos, the lending Frenchi The bomb outrage resulted in on delegate to the Brussels con- Arab youth being killed and six other ference, in an interview publish- Arabs injured. ed this evening.

Seventeen Arabs have been arrested

as a result of an investigation into the This fact is confirmed by informs murder of the five Jewish labourers

on, Tuesday last. tion which was allowed to transpire in Jerusalem regarding the Powers' Intentions Reuter. the Japanese reply is entirely nega- tive.

Japanese oc- Mr. Anthony Eden, M. Yvon Commons to-day that the man con- | cupled Nanziang ut 5,30 nằm, to-day. Delbos, Mr. Norman Davis and Dej

Japanese gunboat,

reviewed the Wellington Koo met and near when he broke through the guard placed field guns in Poolung.

Whangpoo boon,

the newly the and

situation, particularly, it is are gathered, from the angle of the of honour and shouted out "Down shelling the Nanino waterfront where present situation In Chinn, with war" during the Two Minutes scattered Chinese machine-gun poste

are still holding out.-Reuter, Silence, had no intention of attack- Ing the King or anyone else. No weapons of any kind were found on his pernon.

Sir Samuel added that obviously the man was suffering from delusions and was now under observation-

·Reuter.

(Further Stop Press News on Page 12.)

unill

No decisions can be taken the Japanese reply is received but it Is learned that the possibility of t statement was envisaged dealing with the efforts to be made by the Powerst to find a conciliatory settlement. The document might even take the form of a last appeal to Japan with a pressing demand for a reply. It in anticipated that the final approch (Continued on Page 11)

Belgian Dilemma

Brussels, Nov. 11. The King of the Belgians has doolded to postpone ali further attempts to form a Government - until November 10 when he re- turns from a visit to London.

Meanwhile, JILs; Majesty ban asked for enquiries to be made with regard, to the factors neces- sary for tho successful formation of a Government-Reuter.

NANTAO TROOPS GIVE UP

SURRENDER ARMS TO FRENCH

LONDON GIVES

MATSUI SPEECH NO COGNIZANCE

BUT POLICY

Shanghai, Nov. 12. Apart from a few snipers,

REITERATES FIRM the Chinese forces at Nantao

IN SETTLEMENT completed its evacuation in the early hours of this morn-

London, Nov. 11. ing, when the remaining

No official cognizance has been taken here of the beleagured soldiers sur ren-statement of General Matsui in Shanghai yesterday. dered their arms and entered However, it is officially reiterated that the British commanders have the fullest power of strong action to protect the International Settlement and to immediately if Japan attacks the Settlement.-United Press.

French Concession.

All of Shanghai is now in hands Japanese

extept French Concession and the Settlement area south of Soochow Creek.

.

WASHINGTON SILENŤ

fire

Washington, Nov. 11. The State Department has not commented on General Matsui's statement issued yesterday in Shang-

The Chinese withdrawal was re- after ported to have been effected receipt of orders from the High Com-hai, mand, and it is stated that the with- drawal was partly due to exhaustion of water and food supplies.

The final battle of Nantes was fought in the, glare of flames from Rigantic fires which consumed build- ings set alight by Japanese shells and boribs.

The

VAST ARMS SUPPLY The arms surrendered. to French authorities were of many and varied descriptions, some Chinese soldlers even entering the Concession with machine-guns, although the majority only carried rifles, while the officers handed over service pistols. There were also many hand grenades and thousands of reunis of amnuni- tion. The quantity of small arms several was so large that it took

them to i trucks in which to cart French Police headquarters.

othen

It is presumed the United States will Powers in a vigorous protest against any Japanese.move for military domination of the International Settlement.

United Press.

FAITH OF POWERS IN WEAPONS

Delicate Balance May Swing To Peace Or War

"

Manlio Nov. 12.

Co-Operation May

Be Impossible

Shunghat, Nov. 11. General Matsui, Japanese Com- mander-in-Chief In Shanghai, gave grave hints regarding the course of Japanese policy in Shanghai in an Interview with Reuter."

He virtually accused the authori- ties of both the International Settle- nent and French Concession of a breach of neutrality throughout the Sino-Japanese hostilities.

He declared the Japanese expedl- tionary force went to China at the will of God. "I feel disappointed". he said, over what foreign officials Meanwhile the Japanese claim that Mr. Paul V. McNutt, the U.S. High in Shanghai do and say. I cannot Puntung is also completely cleared of

Commissioner in the Philippine Is-accomplish the co-operation I had

anticipated.

13 This

very Jatt Chinese armed forces-Reuter.

londs, a speech here last night as- tunale for the peace of the world, CHINESE STRATEGY FOILED

Serted that the peace of the world but it cannot be helped su long as the attitude of the foreign Powers Pelping, Nov. 12. hangs in the balance as ruling powers remains unchanged."

unfor-

He added: "I have no intention of

of the taking advantage

present

A bold attempt by the remnants of of Europe and Asia avow their faith the 29th Army to cut the Feipingin force. "There are nations on both state of affairs to take the Settle- Hankow Railway behind the Japanese front line was folled after continents where jsharp fighting, according to

stinels of man have been unleashed. things are going on at present, there Japanese military communique,

may be occasions when we cannot which states the Chinese were "The question whether, there, will work in co-operation."--Renter,

marching from Linching. in north- west Shantung, towards the railway, when they wert met and repulsed by a large Japanese force at Finghsiang, 25 miles to the cast of Shuntel, after which the Chinese retreated to- wärd Tuning-Reuter.

the primitive in- ment under in control, but as

be a war in Europe or Asin depends upon whether the strength of those wishing for peace becoines unmis- takably greater than the strength of those willing to gamble in an appeal to force," he said,

The United States peoples' pur- pose is to prove that to save them- selves from the disorders of the pro- sent age of violence men do not need to surrender their birth-right for a mess of Fascist, Communist or Naz!" pottage," Mr. McNuti declared.

AMERICAN. BUSINESS BRIGHTER

But Everything Rests On Roosevelt

JAPANESE BRING REINFORCEMENTS

ON 80 STEAMERS

Shanghal, Nov. 12. Eighty Japanese transports, convoy- ed by warships, are reported to have arrived off Woosung and are ready

London, Nov. 11. to unload reinforcements and addi-

1fe disclosed that he is considering

upon "Everything depends tional equipment for the forthcoming Japanese drive inland from Shanghai, a visit to Washington carly in 1038 Roosevelt.. Presumably he will do his to confer with President Roosevelt. utmost to bring about recovery before Foreign observers estimate that be- It is believed his visit will be in con- the May primary elections, but I am tween 50,000 and 60,000 Japanese acction with the Joint Preparatory waiting to see states one of the lead- troops are aboard the transports. A Committee's work concerning the in- Ing investiment experts large quantity of ammunition and dependence of the Philippines heavy field equipment is also believed. | United Press. to be aboard.

Meanwhile some

10,000. Japanese troops have landed at Wayside, Jukong and other local wharfs.

With the arrival of large reinforce- ments, the Japanese are expected to

оп

Nevertheless there is a distinctly

more cheerful atmosphere apparent

in the City,

by

which is

is mainly explained

the more concillatory attitude President Roosevelt is believed to be

Czecho - Slovakia dupting towards big business.

launch a campaign on a wide front. Won't Tolerate

from Litho to Chapel-Reuter.

INSURGENTS FREE BRITISH SHIPS

Salamanca, Nov. 11. The Insurgent Government has ordered is release. of Ave British

detained ships which are still

nt Insurgent persauter.

Any Domination

Paris. Nov. 11. Tha Forelat Minister of Czechoslovakia Bald think his Government would' restat, Ger« man attempts, to dominate the Inforusi affairs of his country,

He deplored the campaign of threats made by the Derman prose against Czecho-Slovaki Router Bulletin.

Relaxation of the tension is re flected in the gold market where the premium over American parity has the elsewhere ild, and fallen to dollar fas recovered to around 4.99, while prospects of improvement i America kive resilted in recovery of commodities, especially rubber and base metala, Die movement being 10- Infored by buying. This is based on the belief that consumers are at pre- sent understocked.

It would not be true, however, to imagine that the City has recovered It-nerva, the atmosphere reflecting subaldence' of the recent pessimimis rather than na necem of optimism. Neuter