1938-02-16 — Page 1

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No. 15443

LORD

FOUNDED 1001.

三拜禮號六十月二英港香

WEDNESDAY,

FEBRUARY

ELIBANK

DEMANDS ARMY Japanese

WITHDRAWAL

FROM SHANGHAI

GERMANY

FORCES AUSTRIA'S

Customs Seizure Could SURRENDER

Never Be

Be Forgiven

SEES GRAVE MENACE TO

BRITAIN'S

INTERESTS

London, Feb. 15.

The House of Lords to-night staged its first parliamentary debate devoted exclusively to the China war. Lord Elibank's motion was responsible for the procedure, and he drew attention to the magnitude of British trade investments which precluded the country from taking a passive attitude in the Far East. He did not wish to be provocative towards Japan or China, but he declared the Japanese problem of over-population and lack of raw materials would remain while emigration beyond the China Seas was closed to her.

On the other hand, China's population problem was just as acute as Japan's, and it was not surprising that she should resist when the Japanese were forcibly -depriving her of land and laid waste others parts of her

territory.

Armed Forces On Bordor As Cabinet Changes Brought To Vienna

Vienna, Feb. 15. ---

It is believed that a virtual ultimatum, backed up by a demonstration of arnied force under the guise of

to Austria by Germany. manoeuvres, was presented

*

16, 1938.日七十月正

ATTACKS Pickets Cannot

AGE WILL NOT BE SPARED

Reports from all along the border indicate a concentration with the "amicable discussions" of German forces concurrently between Herr Hitler and Chan- Aged men and women, Uny boys and girls, nove are immune from cellor Schuschnigg.

the ravages of the war in Spain. The old man in the picture, one of the apparently nominated by Hitler, probably inhabited without fuel or food, no doubt, for the population Herr Seyssinquart, who was starved and shell-shocked, populace at Teruel, is being helped by two Loyalist soldiers into more comfortable quarters than the cellar o has been given control of the was starving in the bitter winter weather while the stere continued. trian Cabinet. This is one Police in a reconstructed Aus-

the most important and vital

He positions.

was at first offered the non-vital portfolio of Home Minister. Reuter and United Press.

of

Vienna, Feb. 15. A communique states that oll questions respecting Austro-German relations were discussed by Herr

conversations on February 12′′

It was found during the discussions that there were three difficulties In

Lord Elibank, however, said he sympathised-withter and Dr. Schuschnigg during Japan on the question of the Soviet menace, for Russia was trying to impress communism upon China. Japan could, not look upon that without anxiety,

Japanese ambition in China trade in such a way as to squeeze out all other competition was exemplised in Manchukuo and by the recent dis- criminatory Import duties and deci- slons of the Government at Pelping, Moreover, Japan's actions in and around Shanghel were most repre- hensible and, like the sands of the sea-shore, likely to leave a gritty taste in the mouth. Shanghai was the centre of many hundreds millions sterling invested in various parts of China. Britain's share of this investment was over £150,000,- 000. If the recent Japanese demands were granted Japan would acquire -complete control of the International International

and

of

Settlement character would be destroyed. Any power controlinig Shanghai would be able to injure the interests of other nallons right into the centre at China, while control of the customs there would plainly imply control of every other customa station in the Yangtse Valloy.

Revenue In Yokohama Bank

Lord Elibank declared that the revenue from the Tsingtao and Tientsin customs atations had been placed in the Yokohama Specie Bank. ite asked what guarantee there was that the Japanese would not do the same with the customs revenue from Shanghai, and ultimately appropriate; It for their own purposes.

He, recalled that Japan's General: Matsui had been reported to have; stated he was getting tired of long discussions and might be compelled to take over the Shanghai customs. Lord Elibank asked what steps the Government was taking to secure British Interests and prevent this not of aggression which, if it were carried out, would never be forgiven - In -Britain.

Full Postal Censorship

For Shanghai

Shangha), Feb. 16.

The Japanese are planning to. Institute

censorship In the Shanghai post office February 20, according to Chi- nese sources.

after

It is rated that 20 examiners will be appointed for this pur-

pose.

These examiners, it is belloved. are coming to Shanghai from Japan.

confirmation

No official obtainable-Reuter.

Boom Across

Ningpo River Stops Traffic

Chinese Authorities Notify Shipping

Shanghal, Feb. 15. Foreign shipping firms in Shanghai have been notified that as from to-day, the river Ningpo will be blocked by the Chinese military.

Demands Withdrawal Lord Elibank demanded that Japanese troops occupying the northem and castern paris of the International Settlement be

In view of the importance of sub- stituted by Municipal Police and maintaining communleation between protested, at the same time, against Ningpo and Shanghal, the Ningpo Residents' Association has forwarded the Japanese censorship.

a telegram to Chinhal; where the Urging wider Anglo-American co-boom is situated, asking the authori operation, Lord Elibank accused ties to delay the closing. Yapan of disregarding the ethics of

and laying waste behind her Following closure of the boom, Armies. He elled figures showing passengers from Ningpo will have to how trade had been affected by the travel to Tinghai and thence by AUNI was raising against motor launches to Chuenshan. An- libiseliking, public opinion of almost other route to Ningpo would be from

hallon even linly and Ger-Talchow along the Cheklang.coast (Continued on Page 4.)

Reuter.

connection with the guarantee given

BRITAIN NOT WORRIED

BY MILD DEFLATION MOVE OF U. S. TREASURY

London, Feb. 16.

The United States' Treasury's decision, announced

in the agreement of July 11, 1030, last night, to limit its gold sterilisation operations to which needed clarification, and it was agreed that both parties were resums over $100,000,000 acquired each quarter, was the

solved to hold fast to the principles

a starting point for the satisfactory

of the agreement, and to regard it as subject of a question by Mr. C. R. Attlee, Labour development of relations between Opposition leader, directed to Sir John Simon, Chancellor

Both parties resolved to adopt im- of Exchequer, in the House of Commons last night.

both states,

mediate measures of guarantee close (Continued on Payc 4.)

The Chancellor said, that as he understood it the announcement is that it is desirable in the present con- ditions to modify arrangements which may have or may

STOP PRESS be feared to have a deflationary tendency and so act as a

JAPANESE OCCUPY

PINGYAO

Linfen, Feb. 10, Japanese troops took Pingyao_on

brake on business activity. He cordially agreed with this view.

The American measure, he said, was in line with the general policy of easy credits which he regarded as appropriate in this country,

Replying to supplementary 'qU¢â« flons, Sir John agreed that currency countries, arrangements in the two

widely Britain and America, were

and

SHANGHAI FACTORIES

different. Britain had continuously. WHISTLE

avoided deflationary measures [he thought that existing arrangements

Government would carefully

the Tunggu Railway out of were adequate. He further agreed But Normal Conditions yunn on February 14 after sacrificing the considerable men in a fierce attack. watch the results of the new United

The Chinese forces have withdrawn

to Changlanchen, south of Pingyno. States polley and act accordingly if a considerable change in the exchange According to a military message, value of the dollar occurred as a re- Chinese guerilla unit has entered Chlachuanyin, a point near Paotao in

cult. Sulyunn-Central News,

(Further Stop Press News on Page 12.)

NO DEPARTURE FROM AGREEMENT

Long Way Off

Shanghai, Feb. 15.

SINGLE COPY 10 CENTS

$30.00 PER ANNUM

You need

the SECURITY and

DURABILITY

of

DUNLOP FORT 90

JAPANESE

Pass U.S. Lines

PARTY DISARMED ON ATTEMPTING ENTRY OF FRENCH CONCESSION

Japan's Forces Expected To "Climb Down" Rather Than Provoke Serious Issue

Shanghai, Feb. 16.

Negotiations are in progress for the settlement of the incidents arising over the emphatic refusal of American Marines to allow Japanese pickets to patrol the United States defence sector in the International Settle- ment.

It is understood that the American authorities have taken the view that the maintenance of peace and order in the United States' sector is entirely their business and they have decided to remain firm in consequence and refuse to allow the Japanese to share their duties.

The Japanese Art expected to |"climb. down" rather than provoke 'n serious issue. But it is recalled

Falmouth To Cruise that in the past two days they

H.K. Waters

H.M.S. Falmouth left harbour at 8.30 a.m. to-day flying the flag of the Commander-in-Chief, H. E. Vice-Admiral Sir Percy Noble, The Falmouth, which is the Admiral's yacht, has been in dock for a month and it is thought that. His Excellency has, taken this opportunity of being on the trial trip to go over the waters of the Colony, The Fal- mouth will return to-night.

GUERILLAS HARASS JAPANESE

Maj.-Gen. Nakashima

Killed, Chinese Reports Maintain

have tried three times to penetrate the American area, and have each time been halted..

Entered French Concession

It is also learned that some Japanese pickets entered the French concession and attempted—lo...carry. out patrol duties there. But they were promptly disarmed.

The

no

episode has received publicity heretofore by mutual agree- ment. It has been "hushed up.***

Meanwhile, it is learned that con- ditions in Nanking are for from normal. Foreigners, are still con- sidering it too dangerous to move freely in the streels,

The only British officials in Nan- king, two Consular officers, are virtual prisoners in the Embassy, as they And it discreet to keep within the grounds. At the same time the crews of the small British gunboats in the area are confined to their ships, although all men are anxious to stretch their legs ashore-Reuter,

Italy Claims Damages

Hankow, Feb. 16. The right to claim damages has been lodged with the Foreign Office here in memorandum from the Italian Embassy, colling attention to the Chinese air rald on Pengpu on February 12, in which a bomb dam- aged the Italian Catholic Mission.

The memorandum requests the Chinese Government

prevent a re- They clte as an example of these currence of the Incident.

Chinese circles are bitterly point- operations .the attack between Yenchow and Chufu, the birthplaceing out that when an Italian journ- of Confucius in which the Chinese ed as a result of the Japanese attack alist, Signor Sandro Sandri, 'was kill- "Allied a large number of Japanese,

Hankow, Feb. 10. Chinese despatches from the front claim that guerillas are still seriously kerassing the Japanese 011 both southern and northern fronts.

including Major-General Nakashi-event protest to Japan.--Reuter.

ma."

The Chinese also claim the

garrison in a two-hour combat, they Tientsin-Pukow railway bridge over recaptured Llentang, north-west of the Yellow River, which Japanese Huancheng. Three months after the re- has been blown up again by Chinese rushed from Hsuancheng to counter-

engineers took six weeks to repair,

One thousand Japanese troops were moval of the theatre of war to planes, They also destroyed a pon-attack and the Japanese batterics on

No sort of departure from the fet land areas, factory whistles toon bridge bulit by the Japanese. Ching-ting Hill outside the city fired

party agreement had been indicated,

were again heard over Shanghal | Reuter, the Chancellor went on He belloved to-day.

the parties to this financial pact were respecting it.

"We have no intention whatever of departing from It," he declared. "Our methods are not quite the same (as other methods of attaining the same results and I do not consider that because the United Sintes has taken these steps It follows we should take exactly the same form of steps. But we do desire to main-. fain the common position."

Labour conditions, however, are

JAPANESE TROOPS DISARMED

Hauchow, Feb. 10.

•

un-

a fierce barrage against the Chinese advancing forces. To avoid necessary losses the Chinese Inter withdrew to their original positions. far from normal, as only a compara-i Part of the Japanese troops sur-Central News, tively small number of Industrial rounded by the Chinese forces at concerns have, decided to

CHINESE GUERILLAS ENTER Shangyao; Important town south of resume the Hwal River in north Anhwel,

TSINING operations with skeleton staffs. were disarmed yesterday, according that Chinese guerilla units have Military advices received here.state to a messago, received here, An Interesting lilustration of thei

The Japanese arms seized included broken into Taining city and street present labour" situation may be some 200 rifles, 10 heavy and light canwhile, both Lisaghslation and

fighting is now going on. found in the number of workers machine-guns, 10 employed in the International Set-jother military supplies.

war horses and Tsowlsion on the northern sector of

the Tientsin-Pukow Hallway

have tlement. These are estimated at On the north bank of the wai bern surrounded by Chinese forces over 40,000, compared with 150,000 River Chinese reinforcements swung communications

nasisted by volunteer corps. Japanes

between the Into action yesterday. Brisk Aghting towns have been cut, the advices as- Of the 40,000 workers at present Japanese troops

took place at Tsaolacchi. Part of the employed in the Settlement, over 50 have been withdrawn to Linhwalk-

are reported ~ to serted,

Anotlier Chinese column is press- per cont, are engaged in factories in wan on the south bank of the river to in vigorously on Chunghsintion, a the western district.

cope with the Chinese guerilla units point between Tsowhsien and Yen- which are actively menacing the chow will view to cutting Japanese The action is Interpreted as a com-

The once thriving industrial centre rent-Central News contact between these two places.

"On the right flank of the railway promise between Mr. Marriner Eccles in the eastern district new emplora Chinese ATTACK HsUANCHENG in the Chinese forces are advancing reported desire to de-sterilise the only 2,000, and there svema nd prosper

Chucheng, Luchi Mongianandi: entire" inactive guid. Lund and « the spect that the situation will improve. - Kuangieh, Anhwel, Fab. 18. Brestul in four direct försa===zysz, strong sentiment of Mr. Henry Stor in normal times as many na: 90,000 | -- ́A-Chinon columa, made brick voluma advæfiding anger manchupyle genthalt und "others for retaining it. | have found work in this, aromami advance on Heuanchions rday CADORÍAllylimakin' a good boots Platf

Rauler,

morning o

It is indicated In London that Wall Street regards the Treasury action as mildly inflationary, with the likell- hood of having little effect on tho credit altuation. However, it is be Heved it may hold open the door for still further changes in the monetary policy.

during normal times.

two