1938-08-03 — Page 25

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The

FINAL EDITION

Cours

Hongkong Telegraph.

FOUNDED 1981 三拜體號三月八英港香

WEDNESDAY, AUGUST 3, 1938. 日八初月七

SINGLE COPY 10 CENTR $30.00 PER ANNUM

No. 16586

CONTINUED

HOSTILITIES

SOVIET BELIEVES JAPAN PROVOKING HER DELIBERATELY

Official Agency Denies Planes Ever Crossed Either Korean Or Manchukuoan Frontiers

Moscow, Aug. 3.

by

Sensational further statements have been issued by the Moscow authorities. It is reported here that reports of flights by Soviet bombers over Manchurian and Korean territories. circulated Japanese telegraph agencies and newspapers, are emphatically refuted by competent Soviet circles. This is the declaration of the official Tass Agency.

The Agency points out that since the very beginning of the frontier conflict the Soviet Government has declared it intends only to defend territory indisputably belonging to the Soviet; and that its troops are strictly obeying these instructions.

Both land, sea and air forces have remained throughout exclusively within the limits of Soviet territory.

It is supposed the Japanese reports were circulated deliberately by interested Japanese militarists in order to justify their repeated attacks on Soviet territory, and the tremendous losses which they have had to bear.

The assumption is also expressed that the Japanese military is being encouraged in its provocative actions by certain Japanese diplomats.

Under these conditions a continuation of hostilitics, fraught with extremely serious consequences, is regarded as inevitable.-Reuter.

A

Moscow, Aug. 3. communique issued this morning states that all day long on Tuesday,

and Russians Japanese fought at Changktu- feng, with heavy casualties on both sides.

The communique warned that! the continuation of military action pregnant with the most serious consequences, is sidered inevitable."

It

con-

con-

serious forecast sequences if "the Japanese con- Soviet thue aggression 01 territory."

The communique stated that artillery and aviation bombard- ment was employed, indicating that it was the biggest engage ment so far at Changkufeng.

M. Josef Stalin conferred with defence leaders in an atmosphere of reserve and watchfulness like time of crisis when governments fear they may be called definite- ly to choose between peace and

war.

BOMBERS ACTIVE IN SOUTH

Bombs Dropped In Many Parts Of

Kwangtung

Canton, Aug. 3.

Į

JAPANESE

MAKING COUNTER CHARGES

Unable To Guess Russia's Purpose

In Provocation

1938 DUN LOP

50 YEARS OF GROWTH,

DUNLOP Fort

The Tyra with 2,000 Teeth

INEVITABLE

"War On Grand Scale" May Be Near

HANKOW HEAVILY BOMBED

Missiles Apparently Miss Aerodrome, Hit Dwellings

Hankow, Aug. 3. What is feared may be a very serious bombing attack menced at 10 a.m. to-day.

com-

There were eighteen Japanese bombers overhead with ten pur- suit planes guarding them and they dropped their loads in the direction of the air field. How- ever, the first batch of about 40 bombs obviously missed the air field and probably Innded among civilian houses and other institu- tions.

It is significant that there was no anti-aircraft fire from the vity--United Press.

FOREIGN EXPERTS EXAMINE CRISIS

Rivalry For Railway Cause Of Friction

Washington, Aug. 2.

Mr. Cordell Hull, Secretary of State, in a statement to the press, said that the United States was following with special interest the Soviet-Japanese crisis, but he had not obtained information beyond the press re- ports regarding the true nature of the incident, and he doubted if anyone had fully clarified the occurrencies.

Tokyo, Aug. 3. "We are umble quite to under-sed the

stand the reat intentions of the Soviet of the strateg as one for control i

NOT SO MILITARY here as he usually appears, Herr Adolfi Hitler is on his way to hear an opera. Europe is wondering

what significance lies in in- structions given to farmers to husten the harvesting and the transportation of labour to rush new lines of fortification in the

western areas.

BULLION MARKET REFLECTS DISTRUST

Nations Rush To Purchase Gold

Britain Turns

Off Tap

BRITISH NEWSPAPER TAKES GRAVE VIEW OF FRONTIER FIGHT

Stresses Necessity Of Guarding British Interests In Far East

London, Aug. 3.

"Neither Russia nor Japan appears anxious to treat the skirmishes at Changkufeng as a quarrel that cannot be solved except by war," says the Daily Telegraph and Morning Post, in an editorial this morning. "But the situation may provoke at almost any moment a war on a grand scale. The difference in view should be capable of arbitral settlement.

"Until some settlement is reached a big section of the Japanese arany in China will be held in readiness to, meet what is regarded as a Russian threat and operations elsewhere will be conducted with increasing difficulties.

"Some check may be placed upon the Japanese disposition to treat as permissible whatever may suit its purpose in the punishment of China."

(Wanton Interference With

British Trade Referring to the losses of British Interests in Shanghai and China generally, the Telegraph goes on to point out that the damage is only portly consequentini upon hostilities. Much of it has arisen from wanton interference by the military auth- orllies with legitimate activities considered inimical to Japanese trade Interests.

BRITISH SUBJECT KILLED

When Bombers Hit China Customs Ship In Yangtse

Honkow, Aug. 3.

A Briton, Captain J.G.C. Crawley, of Dublin, who is commander of the Chinese customs cruiser. Chinnghsing, was kifled at 4,30 yesterday afternoon when six Japanese seaplanes bombed the vessel at a point 36 miter below Hankow.

returning The survivors are

to

He denied that the United States had told the disputants that it hopes for a peaceful settlement.

Neutral milltary experts character-

linking the railway Union, which is deliberately driving shortest route between the indus- relations between Japan and Itself trial area of Japan and Central Man- into a most serious crisis by dis-churia. They said that Changkuteng regarding Japan's protest in connec heights were within 10 miles of the

London, Aug. 2. tinn with the legal occupation of railway connecting the Korean porta

The Chinese second engineer and Changkyfeng hill by Soviet troops, of Rashin, Seishun and Yuki with the

Any idea that Continental}

boat-boy were both killed, and the at Hailan the Nichinichi, leeding Tokyo dally, Chinese Eastern Railway at

concerning nervousness

the cruiser was gutted by fire. declares in its editorial this morning, and the capital of Manchukuo,

ín that situation observer

Central These

Europe Under

experts the caption, "Outrageous

could would be allayed by recent at acts of the

Changkuteng Soviet Union", the artillery editorial further charges the Soviet dominate the railway, hence the developments was rudely shut-

Owing to the fact that Crawley is with avoiding diplomatic negotiations Russians had presumably seized it in tered this morning,

a British subject, the navy despatch- with Japan for an amicable settle-order to put the Japanese at a disavalatiche of gold-buying orders ed H.M.S. Ghat to the scene at 6.30 ment of the Changkufeng affair. ndvantage-United Press.

descended on the London bullion this morning to bring back the body, market.

which is expected shortly.

It ju pointed out that the The demand for gold, which Chianghsing was not engaged in re- emanated from all the principal moving beacons, but was engaged in European countries, including Ger- carrying out normal duties. many, resulted in a turnover at the

Mrs. Crawley is ELL expectant fixing price exceeding £1,500,000.

mother. at present Hankow-Reuter.

The Nichinichil considers that the Soviet authorities are trying to shift It is reported that 15 Japanese the Soviet people's attention to the bombing planes, in two groups, raid-outer world and away from the in- Kwangtung ternal political and economic unrest ed several points in

and the dissatisfaction with 1hc sirty yesterday afternoon.

over

GUESSING AT PURPOSE

At 3.30 pm, tett planes appeared Soviet nuthorities, by taking the pre-

the Kow- sent dangerous step with Japan. Cheunghoultnu on toon-Canton Hallway line where they dropped 16 bombs. Other near-by points were bombed, and the planes then made off towards Pingwu, to the south.

It is also possible, the paper con-

S'hai Cabaret Proprietor Is Shot Dead

when an

It is noteworthy that while the British authorities supplied all of the metal required at fixing, they subse- quently turned off the top. Never- San theless further gold changed hands at and varying prices up to 141/10d, which was twopence above the day's official quotations,

Shanghai, Aug. 3. siders, that the Soviet Union is trying Mr. Albert J, Istaci of to restrain Japan by taking the side Francisco, for 20 years owner of the Chiang Kai-shek administra

The second group of five planes tion as milltary operations are pet-operator of one of Shanghai's most famous cabarets, the Del Monte, was raided Sheklung on the Canton-greasing towards Hankow.

found shot dead In his office this Kowloon line.

the It is most probable

paper morning, with a bullet wound In the

becquac

are

►

Coincidently with the demand for gold, foreign exchanges reported a At some were of the opinion, was necen- widespread buying of dollars, which, tuated by nervousness resulting from is the latest developments in the Far

East.

These planes also bombed the states, that Stalin is now convinced head. Bocen Tigris forts in passing a little that the Soviet Union is Internally

Municipal polict Meanwhile there are

strong later.

not prepared to come into an open Sheng American authorities and the

of this

its present Investigating. indications that Russia's 1,000,- The "all clear" signal was sounded clash with Japan

It is not yet clear whother it 000 troops in the Far East are in Canton at 4.40 p.m.-Unlled Press. small border incident. On the con-

trary, Stalin is more likely to be murder or suicide. moving up to the Marichukuo

feeling acutely the necessity of se euring a fundamental roadjustment Wife Heard Shots of border disputes which tend to

border-United Press.

Moving Towards Frontier Chinese Lines

Peiping, Aug. 3.

Reliable sources assert that the Japanese have received reports that of Sin- Sheng Shih-tal (Governor

the Central

klung appointed by Government and controlled by Soviet

Russia)

Intact

strain relations with Japan.

rigidly

lankow by junk.

?

"If the Japanese Government is as anxious us it professes to be for better relations with Britain it could make a beginning in cliccking the (Continued on Page 41

STOP PRESS

FLIERS FIGHT STORM

The third trial flight of the Air France Company from Hanoi to Hongkong was made to-day under appalling weather conditions,

The resident in

Tri-motored Fokker plane Jauded at Kai Tek at 12.07 p.m. The plane Wan piloted by M. Cariou. with M. Hutzinger, engineer, and M. Montel, the radio operator. It took off from Hanoi nt ( a.m.

JAPANESE

MOBILISE SABOTEURS

Hankow, Aug. 3.

the

chick

For three hours of the journey the plane was flown by the Instruments alone and the pilot's visibility was nil.

For the first two hours the plane flow

at varying allitude between 5,000 feet and 8,000 feet but stormy conditions were everywhere.

Over the Gulf of Tongking condi❤

The Sao Tang Pdo, official military tions were even worse and the plane organ, declares the Japanese ore was forced to come to within several saboteurs in hundred feet of the sea before there mobilising spies and East and North China to be sent to was a break in the clouds.

Last week the Air France mas the new situation at Changkufeng. ching was forced back by storms and Manchuria and Korea to deal with

the plane of one week before that, The paper states two-thirds the Japanese secret service men in a typhoon on the way to Kai London, Aug. 2. the Shanghai area have already left

It was announced to-day by the Exchange holiday under orders for Korea.

local agents for Air France that the

The French; authorities maintained the frame rate by absorb Deceased went to the upstairs Ing all offerings in connection with The Nichinichi thinks that Japan apartment above the cabaret around the purchases of gold and dollars. may also be similarly disposed, as 40.m. when the last customers had Reuter. in indicated by the fact that the departed, while his wife remained to Japanese Government has urged the settle up the accounts. Soviet Union to settle the present

affair amicably through diplomatic negotiations.

Hankow, Aug. 3. No change in the military situation moving troops eastward. on the south bank of the Yangtse was The movement is believed

have reported during the day, according to

SETTLEMENT wanted started three weeks ago.

a Chinese military communique.

"Although diplomatic negotiations Since Sinkdong troops are Soviet Chinese troops aro said still to bel trained, the movement may account holding positions along the Lushon have been virtually deadlocked des- for the report that Soviet troops have range of hills, running from the west pite Japan's peaceful intentions, the been moasing on the frontier of bank of the Poyang Lake in the border. Incident must be settled once

(Continued on Page 4.) (Continued on Page 4.) vicinity of Singize-Router.

About half an hour later, the wife and brother-in-law, hearing two shots, ran upstairs and found one of

the bullets had entered the woodwork and the other had entered Mr. Israel's mouth. He was elend.

Friends and acquaintances assert that Mr. Israel had been despondent stato of hin for some time. The health and financial condition were said to be excellent.-Router.

FAR EAST BONDS WEAKER

The Stock

rncod

Tak.

market continued with the turn- Central News reports withdrawal Inaugural service of the route will

0 Arra

over very small, but with undertone generally maintained, ex-of one Japanese division from Shan-be made on August 10 with a Dewoi- tung for service in Manchukuo und tine plane, the fastest aeroplano in capt in the case of Far Eastern bonds, also the switching of some troops the Far East. which weakened following reports of

(Further Stop Prces News on Russo-Japanese frontier incidents.

Commodities were quiet through-defend Peiping, it is claimed--United

Page 12.) out, and generally rather ensler in

(Continued on Page 4)

from Hopcl.

Only 2,000 Japanese are left to

Press,

1

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