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Water-16.03.

The

FIRST EDITION

Hongkong Telegraph

FOUNDED 1881

五拜歳 號五十月三英港香

FRIDAY, MARCH 25, 1938.

日四十月二

No. 13474

SINGLE COPY 10 CENTE $30.00 PER ANNUM

BRITAIN LOYAL TO TREATY

The Worlds

Master Tyre

PLEDGES

PREPARED TO FIGHT Britain Won't Accept Restrictions WHERE SHE IS BOUND

BY

COMMITMENTS

But Giving No New Guarantees, Says Prime Minister in Strong Speech

London, Mar. 24.

Loud ministerial cheers greeted the Prime Minister, Mr. Neville Chamberlain, when he made his declaration of the British Government's attitude to foreign events to-night. It was an attitude rather than a policy, the Premier explained, that he was dealing with, because nobody imagined any events could change the fundamental basis of British policy, which was the maintenance and preservation of peace and the establishment of a sense of confidence.

Peace was the greatest interest of the British Empire,"but that does not mean nothing will make us fight," he said amid cheers. We are bound by treaty obligations which entail the necessity of fighting if occasion arises."

He hoped nobody doubted that they would be prepared in such an event to fulfil those obligations

Cheers).

Then there were certain vital British interests for which they would "fight" if they were menaced-the- defence of British territories and communications which

vere vital to their national interests.

"There are other occasions, too, under which we *ght fight if it was a choice of fighting or abandoning hope of averting destruction. Those are the things hold dearest. Nevertheless, our object must be to eserve the things we consider essential without war if at is possible, because we know in war, there are no winners. (Cheers). There is nothing but suffering and Fuin for those involved, and, even if we are not directly involved, with our world-wide trade ramifications, we are involved in the consequences which must sooner or Jater react on ourselves."

Believes In League

DECLARES RUSSIA ANXIOUS

Sun Fo Speaks On Far East Dangers

London, Mar. 24. Mr. Sun Fo, Chinese political leader and son of the late Dr. is touring Sun Yat-sen, who Europe, arrived in London by air from Paris to-day, and in an interview said, referring to his recent visit to Moscow, that Russia regarded the war in the Far East with great anxiety, but at present there seemed to be no prospect of her intervening owing to the dangers and com- plications in

LOVELIEST QUEEN?

This is the first picture of Queen Farida of Egypt in her wedding gown. The gown is of rose peach brocade in lotus. foliage design, embroidered with waterdrop pearls, Its 24-foot lame train is spangled with jewels and trim- med with blue velvet and ermine. For decoration a quarter moon of gold bears a verse from the Koram She is said to be the loveliest Queen aliye,

HULL TRIES TO RESCUE REFUGEES

Asks Doors To Open To People From Germany, Austria

Washington, Mar. 24.

HOPE TO STEM INSURGENTS' ADVANCE

But Thousands Pour Across Ebro

Barcelona, Mar. 24.

TOKYO RESPONSIBLE FOR ANY DAMAGE TO SHIPPING IN CHINA

New Tariffs and Customs Discussed in Commons

London, Mar. 24.

In the House of Commons to-day, Mr. R. A. Butler, Under-Secretary for Foreign Affairs, said his attention had been drawn to a press report of an announcement issued jointly by the Japanese diplomatic, military and Naval authorities in Shanghai, that no ships could ply in Chinese internal waterways in the Japanese controlled areas, without special permits, failing which ships and their cargoes would be subject to seizure.

He added that the Government had received no official confirmation.

The Government would not recognise any such order, and would, if necessary, inform the Japanese Government, that Britain would hold it responsible for, damage to British interests resulting from such an order.

me.

MIGHTIER BRITISH WARSHIPS PROBABLE

Escalator Clause Likely To Be Invoked

the

Europe, which Mr. Cordell Hull, Secretary can zone of the Aragon front are at before the new tonnage is laid down,

- FAVOURS JAPAN

Mr. Butler replied to a question put by Major H. A. Proctor (Cons.) and said the revised North Ching tariff appeared to tend to favour Japanese trade, but apart from the general complaint from trade or- ganisations as to the prejudice caused to British trade in North Chino by the present "conditions; -- no specifie instances of hardship resulting from the tariff had been brought to his nolice,

The Japanese Government's reply to the protest addressed to it had now been received. The Japanese Government disclaimed responsibility for revision of the customs rate enacted by the Peiping Provincial Government, and contended that the & few .com- reduction of dulles on modities needed for rehabilitation or relief, was unavoidable.

of

London, Mar. 24. There is reason to believe that Britain, like the United States, has decided to invoke escalator clause of the Londonad been no discrimination against The reply also stated that there Naval Treaty in the face of third powers, and the revision had Japan's refusal to furnish details the effect of doing away with special of her naval building program- trade in East Hopel. This reply, said Mr. Butler, was under considera- The renty requires that a

period tion. of three months shall clapse after the

NO IMPROVEMENT All available men in the Repub-escalator clause has been invoked

Mr. L. C. Hannah (Cona) asked for of the new the result of the representations to might start a world war.

present erecting defences in an at-and the actual size of State, has proposed the tempt to stem General Franco's ad- | British

and American battleships Japan respecting the collection Mr. Sun Fo had a long conversa-establishment of an internation-vance.

probably will not bo settled until customs duties in Shanghal. lon with M. Josef Stalin, Russian al committee to get political

Meanwhile the Insurgents continue this period for consultation opens. Dictator, who struck him as an ex-

France at present is not anxious to Mr. Butler replied that the Japan- embark on heavier battleships ese Government had promised early tremely practical man, who knew refugees out of Germany and to advance on the edges of the Re- exactly what he wanted.

publican territory. Austria. The suggestion is Thousands of Insurgents crossed tonnage, but her final attitude is consideration of the representations. Germany and He regretted that he had no report in the vicinity of likely to depend on As far as Mr. Sun Fo was able to made in telegrams despatched the Ebro River

of any improvement in the situation, judge, the Russian people appeared from the State Department to Huesca before they were discovered. Rusda.

to The Soviet attitude is most. im- and His Majesty's Ambassador absolutely to support their Govern- nine European governments, in- A feree, bottle ensued, after which portant, writes Reuter's diplomatic Tokyo, Sir Robert Craigie, was

a slight reverse.

WHOLE LOYALIST ARMY they could get the co-operation of

THREATENED sufficient number to present an 42,000 R.A.F. ex-service officers was sure Herr Adolf Hitler meant transporting the refugees would be

Hendaye, Mar. 24. overwhelming power to the poten- is planned by the Air Council.to scize Austria. Immediately Mr. borne by private organisations in

The Insurgents. have threatened to tlal aggressor, but the value of such

Sun Fo left Moscow for Vienna, and every country which agreed to re-encircle the whole of the Loyalist an allance must obviously depend Reuter Bulletin.

he only left Vienna a day before the celve them.

army in upper Aragon, where In- seizure of Austria.

An official communique

severed says the surgent cavalry have United States Government is taking road to Lerida, the key to Catalonia. this action owing to the "necessity |—United Press.. He expressed the opinion that the for speedy and co-operative effort

The Premier confessed his original bellef in the effectiveness of the League had been profoundly shat- tered, but said the League shall be trengthened so as to serve as an effective instrument

peace,

to preserve He appealed to the Labour to co-operate and help the Logic backs to health. It was not necessary for collective security to of all the 50 the co-operation 4): ensure

members of the League, so long as

upon its military efficiency.

EMERGENCY AIR FORCE PROPOSED

London, Mar. 24.

An emergency

ment, and the recent purge had not cluding the British Government have suffered

the Republicans were found to

and

every country in Latin Reuter Bulletin.

shaken the stability of the State,

Mr. Sun Fo frequently

M. SOW Litvinoff, the Russian

Foreign America. of M reserve

Minister, who informed him that he Under Mr. Hull's plan, the cost of

take

READY FOR LONG WAR

the

"If Britain is to make a subslan-lary force on her behalf? Or, should; tial contribution towards the estab- we declaro our readiness to lishment of our greatest interests, military setion to resist any forcible she must be strongly armed for interference with the independence war in Ching would last at least under Government supervison, if France, Belgium, Holland, Denmark, defence and counter-soffence. and integrity of Crocho-Slovakia, another year, possibly much longer, widespread human suffering is to be Sweden, Norway, Switzerland and

and invlie any other of the nations The Chinese armies were far better overted."

Italy. No country will be asked to desire to associate themselves organised and equipped than at the

The European countries to which receive more refugees than permitted

were sent ure Britain, by the present laws-Reuter. with us in such a declaration?

"Under elther alternative, the decl-beginning, and it was now clear that telegrams

Japan was having no easy time. whether Bellain would find

Japan was obliged to

to keep two- self involved in war would auto-

thirds of her resources

in reserve

Czecho-Slovakian - Problem "One of the questions necessarily present in many minds concerns the relations between Czecho-Slovakia

who

a

and the German minority there. A malically be removed from the dangainst the possibility of a quarrel solution of the question will probably cretion of the British Government, with a third Power, hence she could go far to re-establish essential cretio

and this

position which

the only

use one-third against China, slability over an area much wider Government cannot see its way to and she had to draw heavily on that. than that immediately concerned, and | rocent.. :(Loud Ministerial Cheers), Mr. Sun Fo said he had no doubt; Gabcordingly the Government has THIS position is not one which the

about the stability of Chinese cur

Chineso reserves abroad ver

in relation

to an area where rency 1 ta

vans special attention to the matter, Government could see its way

the

Mited Kingdom, in addition to the

to

And has fully considered whether a link interests, are not concerned were intact, and Chino was able to Misling obligations, should, as in the same, degree as in the case of finance the purchase of arms abroad

undertake new specific commitments lon urther contribution towards peace, France and Belgium. Such a post- without injury to her currency ro-

serve. the does not result from Curste, particularly relating to Covenant. Hence the Government is unable to give the prior guarantee sasure | suggested,

1

echo Slovakia. -

forthwith ithal in the event

Pelepon by Cermin serres Smoby. Blovakia to Laple Mellora do Cabo

STOP PRESS NEWS

NEW LITHUANIAN CABINET

ATTACKED. AND ROBBED

Kovno, Mar, 24. Norman Alt, clerk, reports to the President of Lithuania has accept-|police that at 10.30 p.m. yesterday, ed the resignation of the Cabinet, and when he was mounting the stairs to of currency formed Provisional Cabinet: has: been his home in Thomson Rond, he was

Mironar

Spoiled Japan's hopES Chinese restrictions

ja new

attacked by four men and $1,000 was taken from his person..

-under

Father of her ***Where peace and war are con- spolled Japan's hopes of buying the Chaplain to the Army.

No change, has occtired in the cerned, loyal obligations are not alone foreign exchange to finance the new involved. It probable that other Bank of Pelping with notes of the exlating regime, and all Ministers are countries beside vihe "parties to the Central Bank of China, of which members of the Covernment party,||||!

(Continued on Paos 12.).

(Continued on Page 13.) ** thus avoiding any coalition-Reutet.

[{Fürthér Slop Press News Fóri: Page 12.)

correspondent, because should Mos- continuing to press cow decide to increase the size of Router. battleships for use in Far Eastern waters, Germany might feel bound to build up to them, thereby involving an increase in French tonnage.-

Router.

the matter-

Second Appeal To Trade

Diet Prepares Union Workers

For New

China Regime

Tokyo, Mar, 25.

Government Seeks Solid Support

London, Mar. 24.

The House of Peers, unanimously, The Minister for the Co-ordination and without amendment, passed the of Defence, Sir Thomas Inskip, con- National Mobilisation Blil, while the forred this afternoon with engineer Lower House adopted the North ing Trade Union leaders, when he China

Development Bill, and the conveyed to them the Government's Central China Promotion Company views similar to those given to the Trade Unions Congress deputation At an extraordinary session of the yesterday. Diet, the Foreign Minister, Mr. Koki Hirota, reported on the Central China regime, which

Bill.

brought into would shortly be

The Union promised to consider the

stalement at the earliest possible op

portunity.

Leaders of the Amalgamated In-

existence.. Mr. Hirota expressed the hope that the Government would take appro priate steps concerning this, on the Eineering Union, which incover understanding that the Central China: Whelmingly the most powe administration sword aventublly" be naizing absorbed by the existing North China, the m regime. Reuter,