1938-08-05 — Page 13

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The

FINAL EDITION

Library, Supruzas Court

Hongkong Telegraph.

FOUNDEDTM 1901

No. 13300

五拜禮 五月八英港香

AUGUST FRIDAY,

5, 1938.

日十初月七

SINGLE COPY 10 CENTS

$36.00 PER ANNUM

1938

DUN LOP

· 50 YEARS DI GROWTH/

DUNLOP Fort

The Tyre with 2,000 Teeth

JAPAN WILL PAY DEARLY FOR NANCHANG

POWERFUL Japanese Patience Near "Breaking-Point

DEFENCES

ERECTED

Misery of Refugees

Shocks

Foreign Correspondents

Hankow, Aug. 5.

CANTON DOLLARS NOT MUCH AFFECTED

By Issue Of Millions Of New Paper

The issue of another lifty million dollars' worth of Kwang- tang currency has bad only a slight efferi on the market to- Inquiries reveal that there was a little selling of National | currency by people who reneted Ito

the psychological implica- · tions of the announcement from

Canton 11 concluded hul National currency was weaken- !

The Japanese will have to pay dearly for Nanchang if they decide to advance in that direction, owing to the nature of the terraining. through which they would have to pass and the experts maintain. preparations made to defend the area.

This impression was formed by Reuter's correspondent who, accompanied by two other correspondents, spent four days visiting the Chinese lines in the vital Tehan and Mahuiling sector of the Kiukiang-Nanchang Railway, where the Chinese authorities gave them every assistance.

The furls are very far from this, Since the National Purrency was introduced it has at- ways to a fight to maintain itself. in pubile opinion in the souths against

the popular and well-known Canton National dollar has justified its name in the truest sense of the word and of the

stollar. Actually however, the

Sell continued popularity

the Canton dollar has been inspired

more by misplaced sentiment than

by backing, experts declare.

It was this sentiment that caused fix the the Central Government to rate of 144 Canton dollars to 100 National currency and Government. has been paying this sum to the large money-taking concerns in the Japanese propaganda and the re-

the

verses of the Central Government also conspired to keep the rate lugh.

Recently the Canton dollar apprecint-

ed to 134 for 188.

One authority points out that the Issue of more Canton notes

ment, which has all the reserves and has been more or less "cumshawing" Canton with the fixed rate of 144.

authorised by the Central Govern-

The party consisted of Sir Anthony Jenkin-south in the process of replacement. son of the Daily Sketch, Mr. A. Steele of the Chicago Daily News and Reuter's correspondent. They left Nanchang early in the morning of July 30 by train to Yungsui which is the terminus of the railway. The train was packed with soldiers going to the front, and a number of refugees returning to their homes in the hope that the Japanese will not come yet, preferring to risk waiting until the last moment before evacuating, rather than struggle westwards in a state of destitution.

Yungaui itself presented a picture of human misery which is common k Chinese war areas, Dozens of win- faced refugees, obviously inhabitants of small towns, stormed the train. fighting desperately to

get aboard

through the surging mass of soldiers and passengers which were not even riven time to leave the cur before the mob tried to enter.

Some would-be passengers, loo feeble to Join In the rush, old wo- men with bound feet and small children who were wounded. Iny About the platform watching apathetically.

to

From the station the correspon- dents started a 20 mile tramp Tehan, which is almost certainly the next Japanese objective. A system- of rail trucks was atle destruction

below taking place Immediately Yungsul.

A steady trickic of refugees, brudġ- ing wearly, with men carrying children who were too small to walk, in baskets shung on poles, and women following laden with household pos- sessions,

were mel. Many were exhausted and some of the older ones were in a state of collapse. One old man was leading an aged woman who was blind, and another aged pair moved slowly along, affording ench other mutual support.-Reuter.

Tribute Paid To Crawley

Japan Wants

Truce, London

Paper Argues

London, Aug. 5.

"Japan asks for a frure in her squabble with the Soviet," says the Daily Express in a leader to-day, and adds that this con- firms the newspaper's view that there would be no war.

"It proves, that Japan has her hands full in China, that she has bitten of more than she can chew, and is sore and fired of chewing. Now let us hope that to get this truce, Japan will have to give a truce elsewhere, namely In China"-Router.

CHINESE REGAIN TERRITORY

Guerillas Strike At Japanese Rear

Chengchow, August 5, Chinese re-occupation of Li- shih, in central Shansi, was reported in military advices received hore to-day.

The new issue is probably of old! notes which the Central Government bought from Canton and will serve incidentally, to bring the rate back to 144 and, lends to conjecture will not be whether the process carried further in the future.

carried

any case, the

THOT ANDS FLED FOR SAFETY when lava and great volumes of smoke burst from the crater of Mayon, 200 miles south-east of Manila, P. I. President Manuel Quezon himself went to the danger spot and attempted to dissipate the panic. Actually there were no casualties, but for days, while the earth trembled, Mayon threatened destruction to a populous country- side. A US Army plane got this photograph of the eruption.

JAPANESE RAPIDLY CLOSING SHANGHAI TO FOREIGN TRADE, OBSERVER ASSERTS

BORDER SITUATION EXTREMELY TENSE, COMMANDER STATES

"Reuter" Correspondent, At Scene Of Fighting, Tells Of Dangerous Position

Yuki, Manchukuo, Aug. 5.

"Japanese patience is rapidly approaching the breaking point," declared Major Tanaka, local Japanese commander, interviewed by Reuter at this frontier outpost and summing up the present border tension.

The Japanese have adopted a policy of "non- retaliation," Major Tanaka declared, but if the Soviet's aerial incursions into Manchukuo and Korean territory, which he alleged occur daily, are going to continue, he felt Japan could not remain passive indefinitely.

Major Tanaka described the position as extremely tense.

Changkufeng Hill still remains in Japanese hands. This correspondent saw Japanese troops there at 2 p.m. yesterday.

Watching through field glosses from the village railway station only. half a mile from the battle area, this

CONTINUED corespondent saw the Soviet gunners

FRONTIER FIGHTING

Dosultory Firing On Manchukuo Line

"The Open Door" policy outside of Shanghai foreign settlements is rapidly being closed to all Central Government but Japanese interests, according to British wil re-imburse itself eventually for

American businessmen in Shanghai," the artificial rate granted Cunton by and buying in the Canton dollar at its

Mr. Donald es-declared

Davies, American value and eventual depressed tablishing the National unit linally.

newspaperman, who arrived from Shanghai on Lis At one time

morning Canton dollar touched 148 in relation

the Felix Roussel last night. Mr. Davies, who to National funds.

was Picture Editor of the Associated Press for many years, spent six weeks in Japan and Shanghai, on an intensive survey of the results of recent hostilities, and will leave for Chung-issued by the king to-morrow.

DROUGHT SCARCELY RELIEVED

Rainfall Still Far

Below Normal

"According to rumours in Shanghai, Japanese com- merce and industry are contemplating the development

Tokyo, Aug. 5. Desultory firing is continuing

the

along

pouring a more or less steady stream of shells on to and around the dis- puted heights. The shell-bursis were clearly visible, throwing up mosses of rand and earth. Occasionally a column of water would spout up when a short shell fell into the Tumen River, below the heights.

This correspondent saw two Russ- ian scouting planes appear over the Japanese positions. They

(Continued on Page 4)

were

Soviet-Manchukun STOP PRESS border, but the general situation is unchanged from last night,

. according to communique!

War Ministry, which adds that the Soviet forces

are firing occasionally at the Restrictions Japanese front lines.

The prospects of appeasement to

of Woosung, in an attempt to cut off sea and river traffic the situation are considered brighter In Water

from Shanghai," said Mr. Davies.

Kun

Hongkong's Intermittent rainfall is

These rumours emanate from an doing little or nothing to alleviate the

however, source, serious water shortage. During the entirely relishic

As to Mr. Davies. was according last 24 hours only .09 inch

total recorded, making the

year's

example of this tendency, he cited as compared the textile mills situated outside of rainfall 36.94 Inches with an average of 65.57 inches.

Yesterday's maximum temperature the settlement. was 80 degrees, with the minimum

"These mills were originally owned 1. This morning the

then bought by last night 01. temperature was 86, and the huml-by the Chinese,

British or American concerns before dity 77 cont.

hostilities. The Royal Observatory weather re- the opening of The port issued this morning stated that Japanese claimed, however, that the China foreign interests were merely acting pressure remains low generally, the Eastern Sea, and the as a 'front' for the Chineze. Loochoos, and a continuance of non- soon winds may be expected along the China coast,

over

Actually it was far as ownership goes.

40-50 basis as However, the Local forcenst : South-west Japanese closed these mills down and winds, moderate; fair generally, with did not allow them to re-open except on a 51 per cent. ungis under Japanese locul showers.

direction, Mr. Davies said.

+

AMERICANS. THREATEN REPRISALS

Mexican Attitude Causes Rift

Washington, Aug. 4. The polley now being pursued by Mexico may result in the withdrawal of all United States capital, and the termination of the United States Government's purchases of Mexican member silver, said Senator Lewis, D of the Senate Foreign Relations Committee in an interview, in the course of which he commented on President Monuel Cardenas' declara- tion of yesterday. Reuter.

its a result of reasonable proposals wirich are officially stated to have the been presented by Japan for cessation of hostilities.

The proposals were conveyed to the Soviet Charge d'Afaires by the Vice- Minister for Foreign Affairs, who urged their prompt transmission to Moscow.

Supply Now Inevitable

It is intimated by the

The nature of the proposnis is not disclosed, but it is believed they are Director of Public Works on the lines of these submitted by that as the water storage in Mr. Mamoru Shigemitsa to M. Maxim LitvinofT.

unsatis-

The Foreign Ofee communique Hongkong is now says: "Whether the proposals, which factory, that, failing early

(Continued on Page 4.)

CHOLERA DANGER CONTINUES

and exceptionally heavy rainfall, a curtailment of the water supply is inevitable.

Consumers are earnestly requested to exercise every care in the use of water and to have defective water. Dally notifications of new cases of

in

continue fittings repaired without de- cholera

Hongkong steadily. During the past 24 hours

lay. Mexico's quarrel with the United reven additional cases were reported, States, BR with Great Britain, con-making the total since the outbreak further cerns the action of the Government of the epidemic, 200.

There were also In expropriating lands in which

COHER of dysentery, making the foreign In a leader yesterday, the Tu Kung of the town was completed im-bassador to

"American business is admittedly Senor Cardenas admits the

During the past 24 hours there Pao paid tribute to Captain Crawley mediately after the Japanese with- Kerr Clark Kerr, left for Shanghal and the Chinese crew of the customs drawal.

by the Empress of Asia early this marking time until the end of the to pay compensation, but claims the crusler who lost their lives while A Chinese column, chasing

to the hostilities, with the hope that there right to do so how and when he shall were five now notifications of enteric the morning. He was escorted

will be some vestige of free trade re- deelde. This altitudo is not approved fever, two of measles and lune carrying out their duties. Reuter retreating Japanese, is said to have ship by the Alde-de-Camp to the

outside Mexico.

of diphtheria, (Continued on l'ago 4)

maining." Mr. Davies concluded. Governor.. Special

Hankow, Aug. 5. The inquest held yesterday at the Consular Court confirmed that the death of Mr. J. G. C. Crawicy was a result of a bullet from Japanese planes.

Ambassador Off To Shanghai

Mr. Davies said that the Chinese coolfes, men and women who operate the textile plants in the foreign plants of the Yangtze-poo are transported from the Inter- by trucks dally national Settlement to the factoricy.

"The Japanese call this an emer- The funeral held yesterday after- abandoned Lish and retreated to

gency measure'. Obviously the fac- noon was attended by a large crowd Chungyang, to the south, on Wed-

tories can't operate on an efficient of foreigners.

nesday night, Chinese re-occupation In Excellency the British Am-basis this way," added Mr. Davies.

Chinn, Sir Archibald

It is stated that subjected to flerco Chinese onslaughts, the · Japonezo

Beven

enterprises were ontlonnggregate 550 for the year,

(Further Stop Press News on Poje 12.)