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The

FIRST EDITI

Hongkong Telegraph.

FOUNDED loạt

No. 13410

二拜禮 號七十月五英港香

TUESDAY,

MAY

17, 1938.

日八十月四

HSUCHOW

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and Linen Hats A special ling at

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WHITEAWAY'S

AT JAPAN'S MERCY

ARTILLERY Suggests Japan Waging Narcotic War on China

COMMANDING

RAIL CENTRE

But Final Assault Not Yet Indicated

Shanghai, May 16.

A Domei report states that Japanese troops, advancing from Siaohsien, have occupied the hills west of Hsuchow, from where they claim they are able to bombard the city,

The report does not indicate whether the attack on Hsuchow has begun.-United Press. Japanese Review Situation

Shanghai, May 16.

Japanese reports state that Japan- ese planes beavily bombed Chinese troop concentrations inside Tang- shan's walls, also at Subsien and Kuchen und iwenly nearby villages.

The Japanese report slates that the Lunghat Railway was severed first of all at Neihwang, ten miles south- east of Langfeng, where further pro- gress has not been reported.

www.

S'hai Exchange Rates Slump

the

Shanghai, May 17. The opening rates on Foreign Exchange market this The line was severed again at morning were, U.S. dollars 22 Wangchi bridge, three miles east of and Sterling 10.13/16d. Tangshan, a third column_straddled

The continued decline, which it ut Simanchen, south of Tancheng, while à fourth column reached it at has been maintained since the Paoche, 18 miles west of Simanchen. latter end of last week,

is

While foreign military observers mainly attributable to the rapid anticipated an immediate renewal of developments on the war front broadside Chinese attacks on the and the reverses of Chinese Tientsin-Pukow railway from the west,

and the the Chinese military leaders forces near Hsuchow Hippear to be trying to shift attention Lunghai Railway,—United Press, firstly to Sh

Shanal, where they claim troops have

been 27,900 Japanese killed in the past six weeks due to

towns, under-garrisoning of

and secondly to the Hofei-Chaohsien line. to which Marshal Chiang Kai-shek sent a message of congratulation after the Chinese troops, according to their own reports, had occupied Chaphsien,-

Occupation of this town threatened the Japanese rear at Hofel where, Chinese reports claimed, the defen ders were still holding the city, despite a terriße Japanese artillery bombardment.United Press.

Japanese Press Reports

Tokyo, May 17.

The Japanese press gives great prominence to the reports from the Lunghai front describing the success of the Japanese troops there.

dis-

Special editions of the leading papers were first issued reporting the bare fact that a victory has been won while later the editions cussed the effects that this victory may produce. The Japanese press emphasizes that a further develop- ment of the struggle depends on whether the Chinese troops will con- tinue to fight in the present altuu- tions or attempt to break through to the south-west from Hruchow. In any case the crucial point of the ' (Continued - on, Page 4)

STUDENTS RESTLESS

IN MEXICO

Sequel To Break With Britain

Mexico City, May 16. Bloody clashes, reflecting the tense situation created by the expropriation of foreign oil com- pany proporties and the diploma-

the break with Great Britain,

are occuring in Mexico.

Police to-day were forced to drive Sociullat Youth Organisation mem-,

U.S. Can't Help

British Air Programme

Washington, May 16. British The

Air Mission, which left for Canada on Satur- day, according to well-informed official sources liere, has reported to the Air Ministry in London that while prices for American planes are reasonable, American manufacturers are at present too basy to "produce planes. In Bufficient quanillies to meet Britain's needs.---Reuter,

France To

Buy American

Fighting Planes

Paris, May 16.

GREAT IMPERIAL AIRPORT

FRANCO- ITALIAN ACCORD DOOMED

Paris Right Wing Paper Makes Disclosures

Paris, May 17.

An interesting light is shed on the Franco-Italian negotia tions which are openly admitted to have reached a deadlock by the Right Wing paper Le Jour

The paper alleges that a group of "Pro-Soviet" politicians, headed by the President of the Chamber, M. Edouard Herrlot, and the Colonial Minister, M. Mordel, succeeded in blocking the negotiations with Rome. The former Premier, M. Leon Blum, according to the paper, had already Intended appolating French Am. bassador to the Quirinal but the matter was postponed owing to the fall of the Bium Cabinet.

0

new Daladier Cabinet took up the question and it was proposed to rominate ex-Premier Pierre Flandin to that post. The Foreign Minister, M. Georges Bonnet, however, desired before the nomination of the Am basador to ascertain the opinion of certain prominent personalities in- cluding M. Herriot who strongly op- posed proceeding with the appoint-

before the meeting of the League Council and the settlement of the Abyssinian problem.

M. Herriot was supported by some influential members of the Cabinet,

The French Air Ministry has among them M. Mandel and M.

decided to purchase Π

HOUSE OF COMMONS HEARS OF BRITISH GOVERNMENT STEPS

Halifax will Consider Representations To Tokyo Authorities

London, May 16.

The alleged greatly increased trafficking in narcotic drugs in China by Japanese and Korean traders under the control of the Japanese Government, was drawn to the attention of the House of Commons to-night by Mr. David Adams.

Mr. R. A. Butler, Under-Secretary of State for Foreign Affairs, said the Foreign Office had received reports that there had been a considerable increase in this traffic recently, but he had no reason to suppose it was the outcome of any systematic or deliberate plan.

He believed, said Mr. Butler, that to give publicity to the situation would be more productive of results than

Here is a rafter-climber's view of one of the busiest hangars in the British Empire. It is at Kal Tak. Big planes are crowded into the building, two giant, bi-motor, silver bodied, new monoplanes for the C.NA.C., a fast tri-motor Eurasia machine, the Iperial Airways Daedalus, hidden on the right by the C.N.A.C, ship in the foreground, and a number of smaller craft. And approaching the hangar, just after landing, is another swift Eurasia passenger and mail plane from Hankow. Beyond, in the background, are the buildings which house the R.A.F., steadily expanding the Hongkong air defence system.any other move. Government, he said, was very much Staff Photographer.

BRITISH CABINET RESHUFFLED AS SWINTON RESIGNS

Sir Kingsley Wood Named Secretary for Air

London, May 17.

a

Cabinet changes were announced last night as consequence of the resignation of Lord Harlech and Lord Swinton, the latter the Secretary of State for Air.

Mr. Oliver Stanley, President of the Board of Trade, becomes Secretary for the Dominions;

Mr. Malcolm MacDonald, goes from the Dominions' Office to that of Secretary of State for Colonies;

Sir Kingsley Wood becomes Secretary for Air; Lord Colville becomes Secretary for Scotland;

Mr. Walter Elliot becomes Minister for Health; Capt. Euan Wallace is made Financial Secretary of Treasury:

the

Lieut. Col. Muirhead, from Under-Secretary, of State for Air, becomes Under-Secretary for India and Burma;

Mr. William Balfour is the new Under-Secretary for Air; Mr. RH. Cross becomes Parliamentary Secretary of the Board of.Trade.

Hundred Reynaud, as well as by leading American fighting planes, with Presi-jofficials of the French Foreign dent Roosevelt's permission.

Ministry. The paper goes on to say The decision has been taken

In that

acting

of the on Instructions view of the inability of French French Government, the Charuc Lord Swinton's letter of resignation manufacturers to fulfil the first part d'Affaires, M. Blondel, presented alludes to the political difaultles of of the Air Expansion plan.

Count Clano, Italian Foreign Minis-a Minister in charge of a great An oficial statement expresses the ter, demands which were known in spending, department being bette hope that French manufacturers will Paris to be unacceptable relating to House

of Lords and unable be able to meet the country's future the Spanish question. The French participate in the House of Commone

It is understood that the first hi. Mandel, has

Government under the Influence of debates. He recalls that

lel, has also informed Italy, than once had asked the Prime American plane will be delivered

Minister whether, a change were not next November, and the order according to the paper, that on inter- Руголеся

desired, national control of the be completed, by the spring of 1930. frontier will not be re-established 8 A stage has been reached, ho ~~~~Reuter.

long as a single Italian volunteer re- continuca, where the disadvantages matus on Spanish soil. The popci of interruption, which the Prime asserts that the attitude of M. Man- Minister wishes to avald, have been

greatly reduced,

needs,

HENLEIN'S VISIT UNRECOGNISED

London, May 16.

In reply to a question in the House bers from the University and proof Commons, the Under-Secretary for

el and the other Ministers is motivated mainly by the desire to conciliate the Communist Party Trans-Ocean.

paratory law schools. Two students Foreign Affairs, Mr. R. A. Butler, said PRIME MINISTER were injured, one seriously, In the that Herr Konrad Henlein, leader of elash. No arrests were modø.

„& Students, harmed with

the Sudeten Germans, had not been pistols, received by any members of the

The report

sticks and bricks, seized the buildings Government that Herr Henlein final

in poanection with a dispute over the

tad, ludent body, a

A Doaby Dr. Chico Goerne, which split visited Mr.

Malcolm MacDonald,

HAS GOUT

London, May. 10. The Premior, Mr. Neville Cham **** | Secretary of Stale for: the Dominions berloin, has had a mild attack of Add Meanwhile, all is quiet at San Luis (who has become Secretary of State gout. He has consequently postponed verotomy and there are no indications for the Colonies under the Cabinet his visit to Dundee, where he was atolog kestuprising Troops are enforcing re-shulle announced this mining) to have received the Freedom of the

the unial precautions, United Press, was denied by Mr. Butler-Reuter City-Reuter.

Outlines Air Ministry

Work Accomplished

After outlining the work the Air Ministry has already accomplished,

Government decided to accelerate its programmo I would be possible to give immediate effect to its decision, The personnel requirements of the Royal Air Force of the next two years had been fully worked out, as had also, the training arrangemonta for a large intake of pilets, airmen and boys, focused

Lord Swinton stated that, when the

leave my work to be judged later in the light of fuiler knowledgo

Great French Defence Loan Oversubscribed

closed

Parle, May 16.

The 3,000,000,000 frano Nation- al Defence. Loan, which opened this morning, was oversubscribed within a short time, and

Wan this afternoon with atriking syCCEEN. Finance 1010

Minister, M Marchandeast, in a broadcant at noon, thanked the people of France for their great aupport of the loan-Router.

alive to the matter and was using its strongest efforts., Although it had not made representations, Lord Halifax, the Foreign Secretary, would consider the situation.

25 Perish In Atlanta

•

Hotel Fire.

Atlanta, Georgia, May 16.

A serious fire which broke out last night in the Hotel Atlanto, has caused fifteen deaths. A number of hotel residents were also injured.

The cause of the fire was an explosion in the basement. The building, A modern five-storey des- Biructure, was completely troy Reuter.

The Government's information did not bear out that systematic demoralisation was a part of the deliberate policy of the Japanese Government.

Heroin And Morphine

At Very Low Prices

In a further reply, Mr. Buffer sald he was aware that heroin anci morphine were selling at very low prices in North Chino.

Mr. Adams suggested the price was three half-pence per packet of heroin, but did not state how much of the drug was contained in the pucket.

With regard to the world's pro- duction and distribution of these narcotics, the British Government was doing its utmost to control clandestine manufacture and distri- bution in its territory, under the Atlanta, May 10.

oplum Conventions, Mr. Butler went Twenty-four bodies have been re- covered from the ruins of the Atlanta on. Hotel. Twenty have been identified.

Fourteen persons who are hospital are critically Injured.- United FreLS.

FEARS FOR

BRITISH INTERESTS

Nanking-Appointed Customs Officers Can Do Damage

But Government Not Perturbed

in

London, May 16. Mr. A. C.. Moreing Conserva-

shortly consider steps to limit the The League of Nations would cultivation of raw materiala from which all narcotic drugs are made.

Reuter.

STOP PRESS

CHINESE PRESSING TOWARDS LINFEN

Tungkwap, May 17, Chinese forcen in Shansi arc vigorously pressing on Linfen, about 100 miles south of Taiyuan.

Fighting has been in progress near Linien and Yuncheng, north-cast of Chichsien in south past three

Shanat, during the with the

Japaneso

tive, asked in the House of Com-suffering hop the Japanese troops

south-

mons to-night whether the recent On May appointment of a Superintend-in Yungisi and Yuslang in ent of Customs at Shanghai by west Shansi were rushed to reinforce their units around Yuncheng. Only the Nanking authorities had a small number of Japanese now re« been confirmed by Sir. Frederick main in both citer, p Maze, Inspector-General of The areas to the immediate north Cnmeso Customs.

of Yungtel have been cleared of

Ho wished to know whether the Japanese soldiers. Central News... appointment will be subordinate and under the control of the Inspector-

than obviously can now be made Genoral... available" Lord Swinton concluded,

Resignation Accepted With Sincere Regret

Mr. R. A. Butler, Under-Secretary. for Foreign Affairs, repiled that the answer was negative in both guns

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