1937-12-31 — Page 1

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The

FIRST EDITION

Supreme Court

Hongkong Telegraph.

FOUNDED) 1801

No, 15404

五拜禮 號一卅月二十英港香 FRIDAY, DECEMBER 31, 1937.

SINGLE COPY 10 CENTS $30.00 PER ANNUM

Fit

DUNLOP

190

JAPAN OFFERS CHINA NEW PEACE TERMS

PERTURBED BY

RESISTANCE ENCOUNTERED

Germany Again Acts

As Mediator

Moscow, Dec. 30.

Cold British Reaction To Japan's Apology

*

More Hankow NOBLE MAY Refugees On Way To H.K.

Third International Train Departs

Hankow, Dec. 31. Over 180 noisy and mischievous achuo) children consideraluge benchtoa. ot the departure for Hönn og m the third international rerogee than

children of m Hankow. Risking ane Krug left at 9am. yesterday.

1:

Lost

Hankow despatches made public in Moscow to-day wich med 313 men, women and reveal that Germany a few days ago offered to China' a six-point Japanese peace offer, the terms being as follow: 1.-Economic agreement giving Japan participation in national resources, customs, foreign trade, aviation and other transport and communications;

2. Chinese adherence to a pact against Communism directed against Japan and Manchukuo;

3.-Permanent Japanese garrisons in China;' 4.-Demilitarised zones in regions specified by Japan; 5.--An independent Inner Mongolian Government; 6. Chinese payment of war indemnities.

The despatches add that Italy is

somewhat annoyed

inediation efforts.

by

Germany's

It is alleged that public opinion in Japan is disturbed at the Chinese re- sistance, as a result of which effort in under way to stir up anti- Russian opinion, centred on the re ported despatch of Russian war sup- plies to China.

However, it is said that Russian aid to Chinn is "significant" com- pared with that of Britain, France and America, and even the Indian and German cupplies, and, it is argued that due to this anxiety, Japan has given promission for mediation 15

terms which outlined in the

Dr. Oscar Trautmann has presented

United Press.

Egypt's New Premier Is Strong Man

Caira, Dec. 30. Mahmoud Pasha's first act as Premier of Egypt has been to disarm, and to disband, at "coloured shirt"; bodies. Orders to this effect are al present being carried out throughout Erypt.

3

Last Defiant

Gesture Of

Old Patriot

The Gain christened "The Train From Madrid" and was only decorated with enorinflu Američati. French and German Bags on the mots of the contites.

The Japaneses authorities were ad- vised of the date of the departure well within the specified request of 48 hours

For two hours before the departure the station was the scene of activity as leading memmers of foreign communenty worked mur side with office boys carrying and bundles of bedding and pamant them in the train.

At 9 o'clock sharp the gone tunnel- ed and after blowing as wh.. He, the train slowly steamed station.--Reuter,

out

POWERFUL HANKOW ·.

Mr. Chang Yi-hsin, veteran educa-DEFENCES

donist.of Shochow, is

Into

Hankow. Dec. 31.

reported have committed suicide by jumping

well after the a

Japanese force authorities had attempted to hit to become Mayor of Soughtow.

Mr. Chang won fame for his sug gestion to Marshal Chiang Kai-shek Mr. Chang proposed to -that-he-form unfold-manki regiment,”!

Jend United Press.

BLOW TO JAPANESE FISHING

President Seeks To Keep Boats Out Of U.S. Waters

Washington, Dee. 30.

Making The City Impregnable

COMMAND WAR NAVY

New Admiral For China Station

BUT SATISFACTION EXPRESSED AT GUARANTEES GIVEN

Secret Plans Of Versions Of Wuhu Attacks

Admiralty

VICE-ADMIAL SIR PERCY

NOBLE

In sweeping changes which) have recently been made in the administration of Britain's war service, a future Commander-in-

Chief of the China Station may

play an important role.

The British Government, it is, believed, has already chosen the

man who will command the!

Hard Fighting Royal Navy at sen in the event

In North

the

Shanghai, Dec. 31. Por purpose of making the approaches to tankow impregnable, it is understood Marshal Chiang Kai-chok has ordered the construc- tion of 800 steel-cased

concrete block-houses which, is reported,

of war.

His identity is a secret. But the Naval Correspondent of the London Daily Express believes that Vice- Admiral Sir Percy Lockbart Harnam! Noble, who will relieve Adiniral Sir Charles Little as Commander-in- Chief of the China Squadron early

The

yeur, is the man who has been)

new Commander-in-Chief of)

i will be equipped with anti-aircraft; The China Squadron is fifty-seven! guns, heavy machine-guns and trench Mars old. He is still comparatively

Each block-house W:H acrom medate 8 meg.-Reuter.

Incendiary Bombs

L

junior, which enables him to receive) intensive training for the importantį task said to have been assigned to him.

Differ Considerably.

London, Dec. 30.

Pending the return of Mr. Anthony Eden, the Foreign Secretary, this afternoon, it is not certain whether the Japanese reply to the British note concerning the shelling of the British warships at Wuhu is considered acceptable.

Certain points in the reply are considered to be couched vaguely.

JAPANESE HALTED IN SHANSI

INVADERS DRIVEN OFF AT HOSHUN

Linfen, Dec. 31. Following an ubortive invasion against Hashtun and Lluohsien by the Japanese troops, qulet once more revalls in vantern Shonsi und for twenty miles north of Hoshun the place is cleared of invaders.

Military authorities believe that the during the last few days were manoeuvres calculated to test the strength of the Chinese ever, are fully prepared to cope with defence. The Chinese troops, how-

Japanese movements. any emergency which may arise from

Japanese activities

The same authorities confirm that Japanese reinforcements huve been arriving in several cities in northern Shamsi. Including Tatung and Chi- chow. The Japanese garrison at Tal- 16,000 men.--Central Newa.

been

Present indications are that the Foreign Office has now. increased acknowledgment will be cold, though courteous in tone.

It is known that the British Ambassador to Tokyo, Sir Robert Craigie, has already objected to the military report of the incidents on which the Japanese Govern- ment appears to rely. Exception is taken to the

| assumption that foreign warships and merchant vessels

had no right in the vicinity of the fighting.

Teruel

Battle

Continues With

Heavy Losses

"Tadrid," Dec. 30," There has been little change in the aliuation around Teruel dur- ing the last 21 hours, though feree fighting is in progress.

Reports indicate that the In surgents are still holding out in some sections of the town, while both the Government and the Insurgents claim to have,inflicted heavy losses on the enemy. Renter.

SILVER

The spokeanon for the Chinese Admiralty and Government of the MARKET

#huge future inportance of the China!

particularly of Hong-

If the presumption of the Daily Express Naval Correspondent is cor- The new Premier declares that he

Hankow, Dec. 30, rect added recognition by the intends to act constitutionally and to

Army ated to-day that adopt a concillatory altitude towards his opponents. He guarantees a good, Well-informet quarters state that quantity of mendiary bombs were Squadron,

requested dropped on Taan by Japanese put these been a new war in administration and to render justice:sident Roosevelt has

and Singapore, seems indicated. SAVED Bill passage of M

to feet the two days ago, which resulted in a big grachtal climunstion of Japanese and

which fire- His Cabinet will generally represent alien fishing beats fan American. hours, doing sering for the past 48 About 1925 the successor to Jellieen!

all round.

all parties in Egypt except the Wafd, waters, which will be introduced to -Reuter

special session of Congress by Mr.

STOCK EXCHANGE

CHEERFUL

London, Dec. 30. factors combined

. G. Copeland, Chairman of the Senate Commerce Committee,

! Renter.

to

Several impart a more cheerful undertone to

operated.--

J

After

has

damage.

Chinese Success

20 as

"1

"Bears" Beaten By U.S. Move

FISHING BOAT

SEIZED

lo

Los Angeles, Dec. 30. Federal agents seized a Japanese Ashing boat to-clay.

יי

It was anchored In Los Angeles

The owner is said to be an allen named S. Nakawa,-United Press.

The British acknowledgment of the reply may point out that the Bri-harbour. tish Government prefers to rely on its jowa report.-Router.

OFFICIALS satisfied

London, Dec. 30. Mr. Anthony Eden returned to London from Yorkshire, where he spent Christinas, to-day, and he hopes "to ̄leave London next week for a few days' holiday in the south of France. when he will attend the opening of the League Council at Geneva on January 17.

Mr. Neville Chamberlain, the Prime Minister. will be in charge of the Foreign Oflce during Mr. Eden's absence.

It is learned. in offcial circles that the British Government notes with satisfaction that 1}} Japanese apologies and other settlements with regard to the Wuhu incidents cover attacks on the merchantmen as well as the warships.

Whilst the British version of the) Wuhu incidents differs from that of

the

STOP PRESS

CLEARING BRITAIN'S

SLUMS

London, Dec. 30. Japanese, the British Government of Labour show good progress is be

The returns issued by the Minister appreciates that measures are to being made in the final stages of the taken by the Japanese Government

ended

with regard to the punishment of the Government's great slum clearance ofleers responsible, and is glad that September 30 Bust 50,438 During the year campaign. in the Note Jull guarantees are offered against the possibility future attacks, Reuter.

Italy Offers Olive Branch To Rumania

houses were demolisher or closed compated of during the previous 12

with st inontlis.

To same date 103,274 houses, with accommodation for 764.660 persone, have been provided for the purpose of rehousing persous displaced by Istum

clearance operations. The returns also record that 3,484,132.new England houses have been built in and Wales since November 1018.-- British Wireless,

EQUALISATION FUND

would have been an admiral who

work good

in minor plans bombed Sian and hurt yesterday.

commands is the Great War," says ihe occupation of Thanan, the Express writer, as their immediate objective. They The State Department is also re-

is now on the retired list and left only one division of troops in in the last ten years the Admiralty ported to be backing the measure which will stipulate flat Bshing boats: Tsinan city but three trainloads are has three times marked out a possible. execeding five tons must

be on their way from Tiențšiu.

new Commander-in-Chief for the

London, Dec. 30. American-owned,

The Chinese have destroyed them

of war. railway bridges at Chichshou, ten,

of them has been given thau's statement that the understand- ......! Interpreting Mr. Henry Morgen- kilometres north of Taian.

Opportunities. for

command of

Ing with China relating to the pur different squadrons and fleets to obtain all the training possible. chase of silver and the sale of gold |

Itome, Dec. 30. A string declaration of friendship

IS SOUND oldest of the three has now will continue until January 7, as in

Bumanin, nge at which it is dicating that there is now no possi- towards

following the

London, Dec. 30. The Treasury has issued the fol- meat with Fascist sympathies, is lowing statement: "On June 28, 1937 information bureau.

atnic- cellor of the Exchequer mado a The declaration says that respon-ment as to the holdings of the Ex- sible Italian circles think the new change Equalisation Account at the Rumanian situatian is Indicative of end of March 1937, and undertook the profound transformation which is that the Treasury would publish off- taking place in the whole basin. Reuter's Special

Danube cially a similar statement every six

months.

the London Stock Exchange to-day EXTENDING ITALIAN-

but business continued to be small, with end of account Influences erasing some irregularity.

חוז

Home Rails were particularly firm

the excellent holiday traflic receipts, Commodities and rorDa were firm on Continental buying and covering, but jute eased sharply in sympathy with Calcutta. Colton and rubber rallied slightly. New York opened firm.-Reuter's Sprctal.

JAPAN NOT SATISFIED

of the

new

JAPANESE TRADE

AGREEMENT

Rome, Dec. 30, A supplementary trade agreement between Italy and Japan was signed

Central Newa says Chinese troops The

reached the grecaptured Fuyang, near Hongchow.ractically certain that he would not Bility of Chinese stocks in London formation of a Rumanian Govern- | ye derday. The Military spokesman be considered equal to the strain of being ung on the market, silver published by the Italian diplomalle in the House of Commons the Chan-

war.

also announces that Weibslen. In eastern Shantung, is still in Chinese

"bears" rushed to cover to-day. hands Japanese troops

PROBABLE CHOICE are trying to outflanks the Chinese positions at

Sellers were very reserved and the "The two others are still active "bears" were forced to pay up to Talan by crossing the Yellow River but it is the younger of them (Vice- 10d. though business was only at Tungeh, above Tsinan. But fur they have not succeeded.

so Admiral Noble) on whom the cholce small. Later the market quietenext

would probably fall.

[down, closing with buyers at 191. The Chinese are trying to, cut the by Count Clano and the Japanese Japanese columns

"The naval system of selection for Ambassador this morning. It ex-Lake, in Kiangsu, und have been sue-notice of the officer's position in the buyers, it is interesting to note that

of Taihu important commands takes

Though India has been biggest little tends the existing Halo-Japanese cerful to a certain extent United seniority list."

American "bears" have been particu- trade facilities to Italian East Africa, Press. where, it is understood, Japan will

Vice-Admiral Noble is expected to larly keen to cover their commit- relleye Admiral Sir Charles Little ments. trade on a basis of strict reciprocity

to the extent of 10,000,000. lire un-i numily.

Jupan will buy East African saltj and probably also raw cotton'in ex- change for textile goods,—Renter's

west

[NEW GOVERNMENT

Peiping. Dec. 31.

STARTS WORK

6

In Hongkong In April. He will be

It is pointed out that China will 68 in January and has just relin-now have plenty of time in which to quished the post of Fourth Sea Lord. quidate any stocks remaining with- During the Great War

was he

In her boundaries, commander of he cruiser Achilles

The market is somewhat mystified and Courageous.

After the Home and Mediteranesin regarding the extension of the Ameri- Fleets, the Ching Station is the most can understanding with Mexico and

the Four sub-departments of the Pro-Important of

British naval Con

Conuda until January 31. Some visionat Government of the Republic commands afloat, and includes some suggest the understanding has not of China have been started.

75 units of all types, among them been renewed till later as President The Foreign Affairs ofce is headed being the 5th Cruler Squadron, 8th Roosevelt intends to use it ne by Yong Shino-tsang, Communica- Destroyer Flotilla, 18 gunboats nor-bargaining weapon. Others are of Berlin, Dec. 30, Lions are controlled by Hsu Halu-chih, mally stationed in the Yangise and the opinion that the United States A German-Siamese friendship and commerce has been Secretariat

trenly of Industry by Yu Chin-20 and the West Rivers, 4th Bubmarino Flotilla, Government is temporising pending

by Chu concluded at Bangkok-Reuter,

Shu-yuan and the 2nd Minesweeping Flotilla President Roosevelt's stalenient-a United Press.

Reuter. at Singapore.

Tokyo, Dec. 31. The Foreign Ofee has stated that Special. due to the Soviels' dilatoriness in pre- venting the signing

flaheries treaty before the end of the year, Japan was compelled to agree to the protocol signed in Moscow on December 20, extending the old pro- visions for a year.

In the meantime an endeavotte will be made to conclude a new tresty United Press.

GERMAN-SIAMESE TREATY

a

STRIKERS WIN DEMANDS

THEN RETURN TO WORK IN PARIS

Parla, Dec. 30. The Government has agreed to thei Paris strikers' demands, according to communique issued by the Workers' Unions in the Paris region and the General Union of Pubile Services,

The strikers returned to work this morning and the municipal services are now functioning, az

Again-Router.

the

In pursuance of this undertaking Treasury announces -that |September 30, 1037 gold held in the

account was 30,084,000 Ano

ounces, and that held in the issus department of the Bank of England was 70,843,- 000 fine ounces. The total amount was 110,697,000 fine ounces which at £7 an ounce would representin round fitures £815,000,000. At the same date the Account did not hold more than a trißing amount of foreign currency-British" Wireless.

(Further Stop Press News on Page 12.)