1937-12-15 — Page 1

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The

FIRST EDITION

Cont

Hongkong Telegraph.

Telephone 59101.

FOUNDED 1001

No. 15301

三拜雞 號五十月二十英香 WEDNESDAY,

DECEMBER 15,

1937. BETA- SINGLE COPY 19 CENTS

$30.00 PER ANNUM

Fit

DUNLOP

30

U.S. DEMANDS EMPEROR'S APOLOGY

Grave Reprisals May Naval Demonstration Impracticable

Be Taken If Fullest

Satisfaction

Refused

WASHINGTON ANTICIPATES SUPPORT OR PARALLEL ACTION BY BRITAIN Washington, Dec. 14.

Highly placed members of the Administration to-day indicated that only the Japanese Emperor's personal apology and personal assur- ance that effective measures would be taken to guarantee non-repetition of the U.S.S. Panay bombing incident, would satisfy President Franklin D. Roosevelt.

WILL EMPEROR WAR IN BUT

APOLOGISE ?

EMPEROR HIROHITO

Washington reports that the Pre- sident of the United States will not be satisfied with anything less than an apology and guarantee for the future safety of American ships from Emperor rohito kimse? This de- mand is a result of th, sinking of

The White House instructions that photostatic copies of the Pre- sident's memorandum to Mr. Cordell Hull, the Secretary of State, be distributed, to-day revealed the typewritten text of the American protest in its original form: "The President suggests that the Emperor U.S.S. Panay in the Yangtse, with be so advised. and so on. However, the word "suggests" was crossed out and "requests" substituted in the President's own hand- writing.

The photostatic reproductions of the note are considered addi- tional indication of the anger and impatience of officials.

It is considered that the demands presented to the Japanese Ambassador, Mr. Hirosi Saito, are the strongest -the United States has delivered_to_any_foreign_Govern-

ment in modern times.

The opinion is held here that President Roosevelt has

given the Japanese militarists a bitter pill to swallow, and that it will involve the "greatest loss of face" Japan has suffered since she became one of the dominant military and naval powers, because it draws the sacred person of the Emperor into world affairs and humiliates him through compelling apology for the acts of his military and naval forces.

President Impatient Olelais intimated that the Ameri- j can demand voiced the President's facility with Inpatience with the

which the Japanese civilian Govern- mént

members

militarists and apologise for the outrages and assaults upon the others, and then proceed to new and graver incidents of the same character.

It is said that the demand for the and assurance 'Emperor's apology

that there will be no repetition of such incidents is designed to end what the United States has come to regard as a travesty on world peace. Further. Action Indicated

Damage To Cygnus Mail

Very Slight

Postmaster General Tells Commons

Denies Sale Of Dum-Dum Ammunition

London, Dec. 14.

A denial thai there had been Issued export lecneea for dum- dun bullets to China and else- where was made by Major Ollver Stanley, President of the Board of Trade replying to a question put by Mr. J. W. klanfield (Lab.) In the House of Commons 10. day.

Mr. Banfield said that allega- lion was made by a Japanese news service issued to the House of Commons. He asked if any- thing was possible to stop pru- paganda which causes friction be- tween natlows, and Major Stanley said he thought the best way of counteracting false propaganda was to let the truth be known. He thanked Mr. Banßetd for ciabilug him to state what the position wax-Reuter.

London, Dec. fi. New Franco

Replying to Mic. F. Montague

Indlenting that further American (Lab.) who asked a question in thel Offensive

action may be anticipated in the event

of the President's demands not being House of Commons on Friday fast,

antisfied, President Roosevelt prefaced Major G. C. Tryon, the Postmaster Indicated that the American press and public General, sald to-day that the great

his note of protest with appeal

any decision which might be bulk of the matts on the air iner forthcoming regarding the Panny Cygnus which crashed at Brindisi Incident.

Gibraltar, Dec. 14. General Franco hus closed all

less of life.

FORMAL REGRETS RECEIVED

Japanese Officers

Call Aboard

H.M.S. Bee

Messages from H.M.S. Bee reveal that a Staff Officer of Vice Admiral Hashigara_and member

the Japanese Embassy flew to the scene of the Panay sinking yesterday and there met a Stuff Officer of Rear | Admiral Kanda from. Nanking. The three called on the Bee and express- ed formal regrets for the attacks on British warships and merchant ships at Wuhu. They also thanked the Cominunding Officer for the assist- ance which the Bee had rendered to the victims of the Panay Incident.

The American Ambassador yester- day called on Rear Admiral Crabbe and thanked him for the help given by H.M.S. Bee to the Fanay.

It is learned that Acling Pelty Omeer Smallwood, who was injured in the eye when H.M.S. Ladybird was fred on at Wuhu, hus not sustained infection. The eyeball was punctured,

the

Panay Victims. Now Accounted For

Shunghal, Dec. 15. So far as can be ascertained, all Panay victims have now been accounted for, Including Mr. Malcolm MacDonald, the London Times cor- respondent, and former Hongkong Journalist, who got away with first party,Reuter,

the

Panay Servivors At Scene Of Battle

Hankow, Dec. 15. Small armoured Japanese bouts

while carrying air mall from Aus- frontlers, it is believed, in prepara- In addition attention is drawn to tralia. Malaya and Hongkong, had tion for a new offensive. No person are reported to be attacking Hohalen, the fact that the White House has been salvaged and that the damage is allowed to enter Spain for recrca- and the survivors of the Panny are instructed the State Department to done to Individual letters was on a ton purposes. give full publlelty to the text of the comparatively small scale. memorandum to the Japanese Am-

The number of cases

In which

Reuter,

The Spanish frontier adjoining bassador, which is almost unprece- dented conduct in American foreign letters had been lost owing to veci France was closed some days ago.

dents during the eight years the Empire air services had operated, were not

Buch

as to

suggest it was

relations.

IN NETHERLANDS

boarding rescue ships-United Press.

AUSTRIA'S POLICY

UNALTERED

Government tendera state there are several measures, all short war, which could be taken to injure the necessary to resort to the costly ex-BIGGER CONSCRIPTION finances, trade and prestige of Japan, pedlent of providing special con-

Vienna, Dec. 14. tainers to and it is believed here that Great

meet those risks to which Britain

The authoritative statement that is likely to support any any form of transport unfortunately American action or adopt a parallel, Was liable, he said.

Austrla does not consider modifying Major Tryon added that one of the common risksi

The Ingue, Dec. 14.

its League palley in view of Italy's course-United Press.

from which these mails suffer was A large increase in the Nether withdrawal from the League is con- the risk of fire in which case rubber fands conscript army was voted io-tained in the Neuigskilswelblatt organ. was not a good protection.

day by the Chamber, whereby the Dr. Kurt Schuschnigg,

igg, the Chan- Tokyo, Dec. 10.

there is no reason for Japan has acted swiftly in the Major Tryon pointed out that anual conscript contingent Is raised celior, says Panay Incident and the diplomatic during 1035-37 Imperial Airways from under 20,000 to 32,000 from the Austria to become unfaithful and de- part from Geneva, Austria and crisis which has followed the attacks performed 1,270 airmail-carrying spring of 1939.

Hungary will be the lpformative link the Yangtse flights on Empire routes and only in on foreign vessels in

The period of training will be between the European powers inside River Anole has already been seven instances were mails damaged eleven, instead of eight and a half and outside of the League, he adds.-—---

(Continued on Page 4.)

[months.—Reuter.

Reuter's Special.

Tokyo Acts Quickly

or lost-Reuter's Special

SOUTH

CHINA

BRITAIN

TO PROTEST

FEARED WITH VIGOUR

Observers Expect

Blow To Cut Last

Route To Sea

Shanghai, Dec. 15. With the Japanese cumpaign in the Central China region con- cluding its first stage following

the

occupation of Nanking. foreign observers are of the opinion that the Japanese will hold off for at least two weeks before attempting to continue military operations.

It is believed the resumption of the campaign will involve either a drive to Hankow or prolonged hostilities in South China. If the

Japanese choose to attack Hankow, it is stated that probably. they will do so both fron The north mid along the Yangtse.

The majority of observers are of

the opinion that the next scene of

the war will be South China, where

a large-scale Japanese drive is ex- nected to be launched in an effort to cut China's last remaining route

to the sea.

This belief, it is pointed out, is strengthened by recent activities or

Japanese naval craft and war pinnes in South China, which point uminously to the fact that n de- termined drive is imminent as soon

May Follow U.S. Lead

In Yangtse Crisis

London, Dec. 15.

Mr. Anthony Eden, Foreign Secretary, announced in the House of Commons to-day that he hoped to be able to make a full statement on the Far East situation soon. "The Government has the situation under urgent examination," he declared.

There had been much talk publicly and unofficially of a joint naval demonstration in. Chinese waters. However, such action was officially over-ruled as being impracticable, if only because of the fact that insufficient Warships were available to make such a move effective. Moreover, it would be useless to imply a threat which they did not intend to support, he added.

as the hands of the Japanese army Germany Not piction of the occupation of Nanking To Recognise

and navy are freed with the com-

Reuter.

Unconfirmed Reports

Shanghai, -Dec.-15.- Unconfirmed reports are current here to-day that 50,000 Japanese troops are being removed from Cen- tral China and are being transported to South China in preparation for a large-scale drive.

Chinese sources believe a further Japanese drive up the Yangtse River Valley, unlikely in the immediate future. They think that after oc-

the

Japanese cupying Nanking troops in Central China will probably consolidate their positions and fer- ret out isolated groups of Chinese mobile units which have been re- ported nelively harassing. the Japanese lines of communication and! Korrisons.

Hangchow Next

The next large-scale campaign is expected by some to be in Klangsu, Cheklang and Anhwei and will likely be directed towards Hangchow, which is the last remaining Important city In the northern area under Chinese control,

n

That the Japanese are preparing for drive towards its lakeside city is given weight by the fact that the Army's labour corps is reported to be busily repairing bridges along the railway leading to Hangchow. Reuter.

STOP PRESS

EYE-WITNESS STORY OF PANAY'S END

New Government

Berlin, Dec. 14. Well-informed quarters here xlate that the constitution of a' new Government of the Republic of China does not modify Gel- many's relations with General- whom Issimo lang Kat-thek. Germany

continues to regard 0.5 the solo legal Government eblef in China.'

It is emphasised that Germany will continue to be represented by Dr. Oscar Trauimanu Im Marshal Chiang Kal-shek's capital-Reuter.

Enormous Industrial

Suffering

Staggering Loss Involved In S'hai Fighting

Hangkow, Dec. 15.

As a result of the hostlilties in Shanghai, Chinese light and heavy Industries in the port city suffered a loss of some $3,000,000,000 according to an estimate made here.

Most of the major Chinese indus- Iries and factories have been com-

Shanghai, Dec. 15. pletely ruined by shells and fro The U.S.S. Panay was hit by a while those remaining have.either bomb dropped from a great been seized by the Japanese or have height at 1.60 p.m. on December been ruined beyond repair, 12. She was abandoned at 2.05 It is stated, however, that more than 100 of the Arms succeeded in p.m..

ship was moving part of their equipment out Defore sinking the machine-gunned by Japanese naval of Shanghal before hostilities started, motorboats, the crews of which then The amount of machinery moved boarded the sinking ship. They left inland totalled over 12,000 tons, before she sank.

As a result of the "back-to-the- When she sank her flag was

was still country movement, scores of tac- flying, and had been clearly visible torlea have been established in the

whole throughout the

proceedings,key Inland cities near, the declares the first eye-witness story where raw materials are available,

arcas

He revealed that the Japanese Am- bassador in London had apologised for the attacks on foreign vessels.- United Press,

Strong Note Expected

London, Dec. 14. Britain is expected to send u

strongly worded Nole to Japan

-following-the-attacks on British ships believed in the Yangtze. It approval will be given to the Note

when the Cabinet meets to-morrow

mornin Prime Minister

and Mr. Anthony Eden have been in consul- tation to-night and it is understood that other Ministers are in close touch with every phase of the situg- tion,

The Note will in all probabliliy ask for compensation, demand that immediate effective steps be taken by the Japanese to prevent further occurrences of a similar kind and request general assurance of safely for British nationals, ships and other property.

It is understood the terms of the British Note may be on similar lines to that sent to Japan by the United States-Reuter.

Probable Terms Of British Note

London, Dec. 14.

A mole of protest, which is anti- elpated by Japan, will be sent to Japan against the attacks on British shipping at Nanking. It is expected that the Japanese will be asked to take the strictest precautions to en- sure there will be no recurrenco of these Incidents,

It is understood the note will not refer to the Emperor of Japan, but the question of compensation for damage nnd punishment of the offenders may be included in tho protest.--Reuter.

R. A. F.. Officer Murdered

Near Baghdad

Baghdad, Doo. 14. Pilot-Offser George William Jones of the Royal Air Force was found murdered on 's high- way near Baghdad to-day.

The crime was committed whilst he was cycling to vizit friends-Router.

AIR MAIL ONE

· DAY AHEAD

The Inward Europeuti Alt-mail by

of the Yangise outrage received by Dr. Wong Wen-hna, who is directing the Imperial Airways" pluho is ex- Reuter by radio to-day.

n special committee on mining, is pected to arrive in Hongkong

on

(Further Stop Press News on Page 12.)

taking steps to give to the basic industries

immediato ald Monday, December 20 instead of on

Central News, Tursday, December 21.