1939-02-07 — Page 26

2

GERMANY'S FINANCIAL DIFFICULTIES Hitler's Orders To Herr Funk

BERLIN, Feb. 6.

IT IS LEARNED that when Herr Walter Funk took over the presidency of the Reichsbank, he was told that wages, prices, and currency must be kept stable, and that increased taxation asi required by Dr. Schacht must be avoided.

Nazi theories also reject inflation, bat hold that an increase in banknote circulation is not inflationary so long as the increase is accompanied by a larger production of goods.

onc

It is fearned that Herr Funk's view is that the Onancing of the Nazi regime cannot be the task of generation, but debts must be spread over a longer period, which is also contrary to Dr. Schucht's policy.

CANNOT HELP STATE

Industrial firma and the public are i no longer able to help the State in defraying the cormous costs of armaidents and public works.

TWO

possibilities are being con sidered; one is the extension of shari and medium-term debts beyond the present maturity dates; the other s the creation of a new kind of bands resembling delivery roles.

It is understood that Herr Waller Tunk hopes, by development of the Four Your plan, and further rationalisation of industry, that 11 will be possible considerably to in- ermase production, thus preventing a rise in prices.

He hopes to Gettle Germany's international debt problem, and he la of the opinion that when Jewish emigration is settled, the danger of a night of capital will be removesi.

It will then be possible to relax foreign currency restrictions, and consider the question of new foreign credits for Germany.-Reuter,

Coded Cables Now Allowed In Canton

CANTON, Feb. 0. Because of improving conditions, the restrictions on coded telegrains, enforced since the occupation of Canton by the Japanese, have been suspended,

Senders of such coded messages, however, are in future required to send a copy of the translation to the Canton Communication Department for Ale record.-Neuter.

TERRORIST TO DIE IN SOVIET RUSSIA

Moscow, Feb. 6. The second death sentence within a week for terrorism in resistance to Labour discipline, has been imposed on N. K. Smirlov at Shotura.

Discharged for drunkenness disorganising production, he shot and seriously wounded his foreman.

and

The Workers Intelligentsia passed a resolution asking for the severest penalty to be imposed-United Press.

GIBRALTAR

OGRĀKAJA

Tuesday,

HONGKONG TELEGRAPH

FRANCE

1 Area occupied by

Insurgents etaLIRTY, Extent of adYpace

by Dec. 1996

February 7, 1939.

WAR ON TWO CONTINENTS

These two maps show you what has happened in Spain and in China in two years of warfare. Lightly shaded areas were those held by the Insurgents in Spain and by th the Japanese in China at the beginning of 1938. The heavily shaded parts show what they have gained in the intervening 14 months.

In Spain, Catalonia is about to completely fall to combined assault by Insurgents and Italians. In China, however, the Japanese hold on their "occupied territory" is precarious, be- cause 'there' are.

to

A million guerillas in the vast areas which they claim passes- sion, and they exercise control only in pro- ximity to navi- gatible rivers and the rail- ways.

BRITAIN'S BIG CLAIMS FOR LOSSES IN CHINA

NEW RECORD CAPE FLIGHT

CAPETOWN, Feb. 6.

Alex Henshaw, who set out from Gravesend at 3.35 a.m. on Sunday in an attempt to fly to the Cape and back in four days, arrived here to-day.

He took 391⁄2 hours for the i trip, which is five and a half hours less than the record- established by Flying Officer Clouston and Mrs. Kirby Green,

Henshaw, it is reported, will start on the homeward trip to-morrow morning.

REGISTER

OF MAN-POWER

HOBART, Feb. 6.

Mr. Joseph A. Lyons, the Commonwealth Premier, to-day announced that Australia would immediately compile a voluntary National Register of man-power and other resources which would be available in time of an emergency.

This decision is similar to that made last year by the Imperial Government-United Press.

AIR MAIL DELAYED

Londen air-mail dated January 20, due to-day, has been further delayed and will not now arrive until noon to-morrow.

LONDON, Feb. 6.

THREE HUNDRED CLAIM18, amount- ing to £230,000 for destruction, confiscation and damage by looting have been accepted as admissible from British firms in China, and have been presented to the Japanese Government, declared Mr. R. A. Builer In the House of Commons to-day, when answer- ing Sir Charles Cayzer.

Replying to supplementary questions, the Under-Secretary for Foreign Affairs stated that claims of this kind were usually settled at the end of the hostilities.

Asked whether it was not the case that the Japanese had declared they will pay no compensation for loss of property, Mr. Butler repiled: "I would not care to accept such a general statement as that."

ROAD TO BURMA

Caplain Peter Macdonald ask- ed whether the Government of Burma was giving any assistance to the improvement of the exist- ing road to the Chinese frontier, from which point it continued to Yunnan, and if not, whether in view of the development of this trade route to the Far East, it can bring this thoroughfare up to modern standards.

ICHIG

LOYANG

LAN

HANKOS

NANCHI

CHANICSHA

ASSURANCE to FRANCE

LFORMOSA

Italians Shocked At Chamberlain's Speech

ROME, Feb. 6.

MR, NEVILLE CHAMBERLAIN'S statement in the House of Commons has given a shock to Italian political circles, who regard it as a more clear-cut expression of Anglo-French unity of interests than Mr. Chamberlain had ever made before.

Lirul-Col. Muirhead, Under-Secret- ary for India and Burma, replied that the Government of Burma had already brought the road from Lashio to the Chinese frontler, a distance of about 120 miles, up to an

quarter. It was suggested in one all- wenther

statement that Mr. Chamberlain's standard. Further work was in progress upon its development, was tantamount to an announcement

TSINGTAO POSITION

Mr. Robert Morgan asked what action the Prime Minister had taken will reference to the refusal of the Japanese authorities to allow goods to

(Continued on Page 3.)...

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of a milltary alliance, and as binding as that proclaimed by Herr Hiller be tween Germany and Italy.

Cotton Board To Control British Sales

Many political observers consider the statement shutters the bellef which always existed in

in Italy that no assurance of military support would

Great

to France. Britain to ever given by It was contended that such an as- surance had been by M. Dala-

Bought

The draft of the Government's dier after the Munich agreement and Colton Industry Reorganisation Bill refused by Mr. Chamberlain. Now, was issued to-night. it is suggested that M. Daladier has been more successful.

Official circles decline to comment, except to say that Italy's natural Inspirations threaten the vital interests

of no country.—Router,

PREMIER'S ASSURANCE

In answer to

London, Feb. 0. ́ ́ }

It proposes the establishment of a Cotton Industry Board of 15 mem- bers, financially asalsted by Board of Trade.

the

The Board's function broadly will be firstly, keeping a register of firms for the collection of levies; secondly promotion of the general interests úf the Industry by technical

and economie research, and general pub- city measures; thirdly examination of sectional schemes.

a question In Use Ilouse of Commons yesterday, Mr. Chamberlain sald that M, Bonnet's statement that in the event of war in which Britain and France were in- Special steps contemplated include volved all Britain's forces would be the establishment of an export de- at France's

disposal was in complete velopment conunlttec, and a repre- ance with the views of the Bri-sentative edy Recordance

advisory

council. Govern

SAFEGUARDING INTERESTS "It is

Ushme to examine all}

Special provision is made for safe- cases which might arise," guarding the Interests of the rayon,

hypotheticni cases

Mr. Chamberlain added, "but I feel wool, and textile industries, and one bound to make it plain that the soll of the most important changes pro- darity of interest by which France and Great Britain are united is such that any direat to the vital Interests of France, from whatever quarter it may come, must evoke the immediate co-operation of this country."

PARIS PLEASED

сол-

posed is the compulsory registration of firms in a general register to be kept by the Colton Industry Board, Registration for merchants is to be optional.

Government assistance is provided on a £ for a £ basis to the Board's expenditure during the first five years up to a maximum of £40,000 year. It is also proposed to In- clude provisions to ensure the ser-

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Paris, Feb. 6. Mr. Chamberlain's statement in the House of Comnions regarding Anglo- French relations, In witch he

vice of any loun ralued by the firmed M. Bonnet's announcement sectional board for the purpose of a that in the event of war, all France's redundancy scheme to be met. The resources would be at the disposal total of such loans will be limited to of Britain, just as Britain's would be £2,000,000,--Neuter,

at the disposal of France, is regarded hero in French political circles as a most important announcement, mark-i Ing the close and indissoluble bonds

niting the two democrac.ca.

The Assurance is regarded

AS

particularly significant in view of Nathan Rd. Trees

the suggestions that Britain was not warmly interested in Franco-Ital an relations, and was only bound to assist France if she were attacked by Germany.

NATHAN ROAD'S trees have been granted a reprieve,

The "Telegraph" was informed this morning that it has been "definitely 'BERLIN REACTION .. decided" not to cut down any of the Meanwhile in Berlin, Mr. Chamber- trees, even if the projected double lain's statement has been received decker bus service is Inaugurated.

"It will probably bs necessary to with much reserve. The Premier's Barance to Franco is not entirely trim some of the limbs if the bus new, a spokesman told "Reuter service is started," the "Telegraph" adding that he thought inilar was informed. assurances were given at the time of "In any case, this 13 necessary the Czecho-Slovak crisis.

between the waterfront and the "Everything depends on whether Alhambra Theatre because of the Mr Chamberlain's words stiffen new gaseous discharge type of light France'quitiludo. In that case it may | Ing." lead to a further: Increase in the

existing ton

and have

pernicious

Mr. L. S. Brereton, of the South

China Morning Post Ltd..

•R

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