1938-05-18 — Page 1

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The

FIRST

EDITION

Elbrary, Supreme Court

Hongkong Telegraph.

FOUNDED 1001

三拜禮 號八十月五英港香

MAY WEDNESDAY,

1938. 18,

日九十月四

No. 10320

SINGLE COPY 10 CENTS $15.00 PER ANNUM

You need.

The SECURITY and

DURABILITY

DUNLOP FORT 90

CHINESE DENY LUNGHAI RAILWAY CUT

MAINTAIN

ATTACKERS

BEATEN OFF

Japanese Claim

Ring

Of Steel Tightening Around Hsuchow

Hankow, May 17.

The Chinese authorities here still refuse to admit that the Lunghai Railway has been cut by the Japanese, and claim that Chinese defenders successfully drove off the attackers last night.

It is officially stated that the Chinese forces defending Hsuchow are still in control there, and have no intention of withdrawing.

While deep anxiety prevails over the situa- tion in Hsuchow, Chinese artillery authorities here emphasise that extreme alarm is unjustified.

Reuter.

Tokyo, May 17,

A Japanese claim states that, after several days of successful operations, the Japanese not of steel is tighten- ing around Hsuchow.

One column is sald to have occu- pled Pawangatan, six miles south of the railway junction, and another is at Shihpall, five miles west of the city,

The Japanese claim to have cut the vital Lunghai Railway at five points. -Reuter

Imminent Danger To

Lunghai Line Averted

Hsuchow, May 18.

CHINESE RAID PAOTING

Peiping-Hankow Railway Town Scone Of Clash

Peiping, May 18. Imminent danger to the Lunghal

A spokesman of the Govern- Railway has been averted after the Chinese troops successfully repulsed ment to-day admitted that there

Fear for Safety of British Woman in Hsuchow

Planes Like These May Defend H.K.

1010

Royal Assent For New Pact

With Ireland

London, May 17.

The Elre Agreement Bill passed the remaining stages in the House of Lords lust night and is receiving Royal assent this evening.

In consequence of the enactment of the Anglo-Irish Pact by the parliaments of both countries. the Trade Agreement has been arranged to come into force on May 19.

On this date, special British dutles

while specifle tarif adjustments will goods from Eire, and the Eire retullatory duties, will be abolished, be brought into operation. In addition, licences will no longer be

the concerted attack of the Japanese had been fighting at Paoting, an from both the south and north yes-important city on the Peiping- terday.

Hankow railway south of here. The Japanese spearhead at Han- The Japanese, it is claimed, succeed required for the importation of Eire taokow and Hullungtsi, 30 kilometres in driving out in Communist unit cattle into the United Kingdom.— north of Yungcheng in west Honnn; which had apparently fought its way 40 kilometres south of the Lunghal into the city. Railway, which a u Japanese spokes- man described as "powerful", suffered a crushing defeat as a result of a

Chinese counter-offensive early importance to what ite termed a the morning. Japanese cavalry units which appeared at Nelhuang, 15 kilometres cast of Lanteng on the Lunghal Railway, and at Lichwang cast of Tangshan on the same line. were also beaten back by the Chinese after a spirited Øght.

Three Chinese columns are now converging on Mengcheng, Important lown on the north bank of the Ko River, north-west of Fengpu. column is reported to be only about (Continued on Page 4)

EGYPT ANSWERS PROTEST

No Discrimination Against Lancashire

One

Cairo, May 17,

Reuter,

Canada May Supply Planes To Britain

Ottawa, May 17.

MOTO

W

These are Overstrand bombers of the 101st Bombing Squadron, a fast, long-range machine with a gun-turret in the nose. Such as these may form part of the aerial defence force of Hongkong eventually, it is understood.

FRESH SQUADRONS

OF R.A.F. PLANES

BEING SENT EAST

London, May 17. Arrangements have been made for the despatch of

ONLY JOURNALIST TO REMAIN AFTER BOMBINGS STARTED

Last Seen Riding Donkey Toward Lines of Action

Hankow, May 17. Great anxiety is being felt regarding the safety of Miss Iris Wilkinson, # New Zealand novelist and journalist.

She is the only foreign correspondent in Hsuchow, and was last seen last week, riding a donkey up a steep hill overlooking the battle front at Lienfanshan, east of Taierchwang and north of Pihsien.

Foreign journalists who evacuated Hsuchow, last week' and arrived in Hankow on Monday night, atated that trains were still running between Chengchow and Hsuchow five days ago, the journey taking four days.

HOPES FOR FRANCO- ITALIAN PACT FADE

But Paris Continues To Negotiate

Paris, May 17. Following a Cabinet meeting,

Except for Chinese troops guarding bridges and stations, the journalists saw no troop movements on either side of the railway.

It is learned from railway authorl- ties that trains were still reaching II suchow yesterday (Monday) morn-- ing.

though intensive Japanese bombings from planes were constant- ly holding up traffic, while railway tracks and bridges were being re- paired.

0

The foreign journalists had narrow escape from death when the Garden Hotel, in which. they.. were. staying prior to their evacuation, was ocmpletely demolished by Japanese de- bombs on the day after their parture.-Reuter,

Royal Air Force squadrons to Ceylon, Penang and other M. Blondel, the French Charge STOP PRESS

centres in the Far East.

This step is in accordance with the authorities in 1936 to provide an additional twelve squadrons for overseas stations.

Squadrons have already been sent to Singapore, Egypt and Kenya, and three additional squadrons, recently sent to Egypt, will be located at Ismalia, Helwan

and Helipolois.-Reuter.

Because Hongkong at present has

no adequate accommodation for R.A. F. planes, it is thought improbable that any of the squadrons will be nitached to this Station for the time being.

The spokesman denied that any large quantity of stores is kept at Paoling and therefore attached little skirmish.United Press.

GUARDING PRINCE CHICHIBU Piping, May 17. Traffic through streets of Pei-

dislocated ping was seriously several hours to-day, when the streets were cleared on at irast four ocensions to allow Prince Chichibu and Prince Harubito Kanin to travel through the city.

A gradual expansion of the During the past fortnight Japanese Canadian aircraft industry is gendarmes have carried out most expected here as a result of the strict examinations of pedestrians.-negotiations between the British United Press.

Air Mission and the various companies concerned.

It is believed that most of the The Defence Ministry has laid twelve squadrons will be based on before the Mission the results of o Malaya, British North Dorace and survey, showing that at least eleven Canadian companies are ready to turn out service planes suitable for

CHINA'S PROSPECTS BRIGHT

More Staying Power Than Her Enemy

London, May 17. The Financial News gives In the course of its reply to the British Ambassador to his representa- prominence to an article to-day tions against new tariffs on British by its Special Correspondent in cotton goods, the Egyptian Govern- ment is understood to have relterated the Far East on the question of that the increases are in no way staying power in the Sino- directed against Lancashire.

Japaneso war,

expressed the

Accommodation

R.A.F. at the Station at Kai Tak it is stated, is fully taxed with the machines from H.M.S. Eagle, Although the landing field at the new R.A.F. base at Kam Ling, in the New been prepared, it is stated that no

Territories, has

hangars have been erected there.

Penang.

ship.

DFD

LOYALISTS

AIRCRAFT HIT BACK

Destroy Insurgent Fleet

On Ground

Madrid, May 17.

d'Affaires at Rome, has been instructed to inform the Italian Government of the surprise felt in French circles at Signor Benito Mussolini's speech in Genoa,

Ilowever, the French Govern-

ment is continuing its negotia-

tions in Rome for a Franco- It is doubt-

Italian agreement.

ful, however, whether a fruitful result will be achieved.-Router.

Grand Jury May Probe Car Business

Washington, May 17,

Lunghai Line Cleared Of Japanese

Hauchow, May 18. The Lunghat Railway is now clear-

A spokesman of the Department of ed of Japanese troops, according to Justice declared to-day that another information from the Chinese field Grand Jury investigation of the headquarters.

Affairs of three of the largest motor During the engagement with the A communique claims that cor manucacturers and their asso-Japanese who succeeded in penetrat- Powerful and fully-equipped Royal twelve Loyalist bombers, accom-clated finance companies might being to Llchwang station, cast of Tang- shan, from. Yungehog, 40 kilometres the British Air Force, The Minister Air Force stationa

being panied by pursuit planes, raided Proposed for the very near future.

Tho spokesman added that action south of the railway May 15, the for Defence has

constructed at Kluang, Johore, and the Insurgent aerodrome at might be taken because the com-Chinese troops inflicted heavy casual- opinion that most of the companies Sungei Patani, Kedah.. The Kiuang Caude.

pantes had failed, to revise certainties on the enemy and captured four, are well able to handle substantial nerodrome is being constructed on a

trade practices to the satisfaction of tanks and seven armoured cars, it is orders from Great Britain,

1,000-acre, site near Kluang town- The raiders discovered twelve the Attorney General.

revealed. Fiat planes on the field.

It will be recalled that a previous They

On the same day Japanese escorted Extensions to landing grounds and unloaded their cargoes of bombs against the General Motors Corpora- Huangkow station, 20 kilometres cast attempt to obtain indictments by several innks, which appeared at. the facilities are being made at Aden, on

grounded machines,tion, the Ford Company, and the of Lichwong, were also driven away. Bahrein, Malta and Trincomalee, destroying the entire fleet. Chrysler Corporation ended in a Ceylon.

'À Japanese cavalry unit of 100 men Reuter Special.

stalemate.

made an appearance at Nelhwang, These companies have since made 136 kilometres. west of Tangshan, numerous proposals for a settlement yesterday morning, but was scattered, by consent, but none of these have-Central News. satisfied the Department of Justice.— Reuter.

At present at least 200 planes of eight different types are under con- struction in Canada for the British and Canadian governments and for export elsewhere.--Reuter,

EVEREST CLIMBERS UNDER WAY

Kalimpong. May 17. The British Mount Everest expedi- tion has now established Camp No. 3 in their ascent.

STOCK MARKET QUIET, EASIER

of

U.S. Naval

Expansion Bill AIR DEBATE Becomes Law

The reply points out that a 40 per

Dealing with Japan's economic cent, surtax against Japanese goods strength, the writer concludes that ald got lend to any perceptible in the period in which it will be possible

London, May 17.. crease in Lancashire's exports to for Japan to put up an effective Dght

The London Stock Exchango was Egypt, but Italy's trade has been in the economie field is probably leas

quietly easier. Through Jack greatly "Intreased in the cheaper indefinite than the period in which

tresli support gilt-edged stocks were articles formerly supplied by Jupan.. China may possibly be able to carry

dull and Industrials were sogging, The Government's present action on her more primitive yet so damag- Capt. Smythe Shipton, leader of although aviations and textiles were.

Intended to correct that position, ing warfare of attrition,

the expedition, who has reconnoitred moderately resistant Kafire pro and to give required protection. .to The time element la clearly against the route above Camp No. 3 reports vided about the only bright spot on focal industry.

Japan and rather in favour of China, that the lower slopes are dißcult but | Cape and local support. however, that and the fact that this is suddenly the route is possible, t The reply adds, LEUTELS awaiting Lancashire's do and much more clourly recognised by Cold, windy weather is hindering]. The Commodities and Foreign Ex2, tataled case, and is ready to exchange Japan indicates the first Initial; the expedition, but the party ja fit change: markets were fentureless,

wistownrder a friendly i under" | kuccess of the Chinese tactics, except for somo BOTA throats Wall Street was quietly easter ---.. for the construct

Rauter.

Reoter Special

Reuter.

Washington, May 17. Prouident Roosevelt has signed the £231,000,000 Naval Expansión: Bill

It provides, among “ölker::iikinke

ships of up to 45.0001

ADJOURNED

London, May 17. The debate which was to have been held in the House of Copinion on motion regarding Air: Detenchan Thursday on Mi Clement "Allies's been postpon