1939-06-02 — Page 7

OVERNIGHT

NEWS PAGE Japan Watches European Events

Tokyo, June 1.

Following the recent decision-on Japan's fundamental polley toward the European situation, the Cabinet consisting

Inner

of five koy Ministers of the Cabinet is meeting on Friday to discuss another impor- tant menture relating to the new de- velopments in the European situation, it was revealed,

To-inorrow's conference will be Hiranum, by Premier attended Forchim Minister Arlla, Ishiwata, Wor Minister Itagaki and Navy Minister Yonal.

Finance Minister

It is understood that deliberations the Government leaders between during the past days have been con- nected with the new European situa tion following the conclusion of the Treaty between Germany and Italy. Informed circles reveal that an ac- cord of views has already been reached among the authorities con- cerned as the result of the informal discussions during the past days. To-

of morrow's session

the Inner Cabinet, It belleved, will lead to another important decision regarding the European situailon-Donici.

German- Manchukuo Barter Plan

the German-Manchukuo

Friday,

HONGKONG TELEGRAPH

WORLD REACTION TO MOLOTOFF'S SPEECH

Bar To Pact Is Not Envisaged

Speaking in the Soviet Parliament on foreign affairs, M. Molotov, Foreign Minister, outlined his country's atitude to the negotiations with Britain in the attempt to form, with France, a peace bloc to oppose aggression in Europe.

Late reactions from Britain and France indicate that there is no dismay at the Soviet reception of the latest proposals, and that the differences, such as they are, rest on form rather than content. There is a rumour that Lord Halifax, the British Foreign Minister, may go to Moscow to tron out these difficulties In a personal talk with 3. Molotov.

French papers take the attitude that the Soviet is demanding the maximum price for her adherence to the anti-aggression front and using her favourable position to barter. Some papers suggest that Britain and France must realise that they have reached their maximum concessions.

The British press tahes n more conciliatory attitude and expresses confidence that the minor differences can be settled in a very short discussion.

M.

rible following the speech is, the paper holds, the fact that M. Stalin wishes to gain for France the enmity of the world and lo start her on a path that will inevitably lead to war.

Holding Cake High

The Journal speaks of the entice- ment methods now being employed by Moscow and declares that, certain of their victory over the fino! Britich

opposition, they are holding a sugur cake high in order to obtain the pact exnetly as they desire it and to in- crease the apprehension, of their suc- cens in the eyes of Germans.

Irritation over M. Molotov's re- ference to the Soviet-German trade negolations is indicated in the com- ments of Le Matin and Petit Journal the They declare that in doing Soviet Forelyn Commissar inserted commercial clement into the

negotiations and intimated that a

Soviet alliance was something that (could be bargained for.

June 2, 1939.

Italian Jews Decrees:

Rome, June 1.

The now decrees affecting the Jows were issued to-day. It Includes one clause in which wills, in which beneficiaries must embrace the Jewish faith, are declared void,

Anolber decree states that non-Jewish citizens with Jewish names must have their names changed, while Italians with Jewish fatters and Italian mothers may take the malden name of the mother-Reuter Bulletin.

Currency War

DEFEAT OF THE YEN IN CHINA

de-

Chungking, June 1 The Chinese legal Tender has won Endursing M. Molotov's statements war over the Japanese yen, to the letter, the Communist organclared a spokesman of the Ministry Humanite denounces tho British of Finance In an interview. attempt to hitch the

Anglo-Soviet

The spokesman anid that though pact to the League of Nations coven

the official exchange rate of the yen ant, remarking. "It is a pleasure to see the saboteurs of the League of Tokyo is 1s. 2d, in Shanghal it Nations attempting to rebuild theirs dropped to 74d., and 100 yen are exchanged approximately tarnished shield."""

$89 Chinese currency,

London, June 1. Soviel Foreign

To leave the Balile States out of Commissar,

the pact would be, according to the the Molotov.-Trani-Ocean. The Daily Mall to-day soya Soviet Foreign Minister's speech is

French Confident

paper, to leave them at the mercy "disappointing because it was gener-

of aggressors. They must be pre- Paris, May 31.

vailed upon to follow ully thought that, except for the ad-

Official French circles are not dis-example and follow a polley similar Denmark's justment of minor details, the threemayed by M. Molotov's reserved att to that of the Copenhagen Cabinet. Power pacl was practically con-

tude to the latest Anglo-French pro-Trans-Occan." eludcil."

The Daily Telegraph says it is evi-posals, and express the opinion that dent from the tone of the address agreement is certain that the difficultles and misunder-matters remaining for discussion are standings have not yet been removed, points of detail, M. Molotov is still dissatisfied. His

and that.

Optimistic Note

for

The Japanese policy of substitui- the Federal in notes, Issued by Reserve Bank, with, no adequate reserves, has failed.

In Shanghai, the spokesman added, the new bogus notes issued by the 50-called Hua Haing Commercial Bank, have slumped even more heavily.

Foreign banks in Shanghat have fiatly rejected these new notes in spite of all the Japanese propaganda and inducement.

Reasons For Slump

Paris, June 1. Most of the papers are optimistic The offelut Soviel reply is ex- regarding the successful conclusion

and li

will be of the Anglo-French-Soviet pact, remarks inter that a considerable pected to-morrow,

following M. Mololov's speech. Rap remains to be closed before the carefully but rapidly studied.

It is believed here that the dim- Le Matin says that objections on Issue is settled.”—United Press.

culties seen by the Soviet in the pro- the form in which the document is posals relate especially to two points, drawn up are to be expected, Japanese gave the following reasons The Times Reassures Molotov

Firstly, the proposals of a mutual though, us French official quarters for the slump of the yen: assistance pact must accord with Ar-declare, Paris, London

Japan; (2) the sharp rise of com-

(1):

Inflation of currency in

Japan; (3) inodity prices in

London, June 1.

The spokesman recalled that the

the

Hanking, June 1. The belief that conclusion of the

and Boscow M. Molotov's objections to the Bri-ticle 10 of the Covenant (the "Sancare in complete agreement as to the new credit agreement between Man- chukuo and Germany indientes steady tish proposals were principally itions" article), and secondly, the obligations involved. progress of the friendship and trade tended, according to The Times, for Soviet wishes to guarantee her Bal- Le Petit Parisien charges M. Molo-prosecution of the Sino-Japanese relations between the two nations, is the Russian public, to which the lle neighbours.

toy with exaggerating the divergen-war and the tension prevailing in expressed in a sintement issued by Foreign Commissar wished. to It is believed here that there will

Europe; and (4) fallure of Japan to the Department of Economies of the emphasise the fact that Russin would be no dificulty in coming to a satts-hich are not fundamental.

L'Oeuvre (Madame Tabouls) wel-enforce the original plan of the Hua Munchukuo Government to-day.

not tolerate the inclusion of League factory arrangement with Moscow on comes the speech and considers the sing Commercial Bank. In short, of Nations principles

In the pact, or bath points, and the final conclusion! Under

is due largely to the next week, The Journal says Trade Agreement emelutied in Sep-weaken its effectiveness through hit of an agreement is only a matter of pact may be signed in the course of the slump

that the gradunt collapse of the whole Japan- ching it to the bureaucratie. machin days.-Reuter.

Baltic States are the two

a difficult point in ese currency system. tember, 1038,

countries

Inery of the League.

Some Misgivings

the negotiations, but thinks that agreed to import from each other, In

In order to reassure Moscow, the

Parls, June 1. everything can be arranged, though addition to the existing amount of trade, Yen 63,000,000

paper recalls that Article 10 of the worth of foods.

The Russian objections to the pro- a much conciliatory spirit on both MG | Learnic Covenant also played a role Germany consented under the sald

in the negotiations preceding the posed alliance being included within sides will be needed-Reuter.

Italian Comment agreement to establish credit amount- ing to Yen 63,000,000 for purchase of Anglo-Soviet pact of 1930, and points the framework of the League of Na- German goods by Manchukuo in the out that the protocul of that agree- tions is causing misgivings among event of Munchukuo's imports pre-ment also provides for consultation French diplomats.

with the League Council before ceding Germany's. The agreement extends operation of the action is taken. shme arrangement for another year from June 1.

นอกจ

Differences Of Form

London, June 1,

To meet war expenses the Japan- ese government has issued un enormous amount of bonds. As they have exceeded the subscribing power of the people, the Japanese Govern- ment has now resorted to the policy

A of unlimited issue of yen notes. large amount of these yen notes us well as military notes have been put in circulation in the "occupled"

areas.

Since Japan's reserves in foreign exchange have been practically ex- hausted, the excess amount of notes Issued have hardly any backing. There is the danger that they may be discounted or even abolished after the conclusion of the Sino-Japanese hostilities, for such was the fate of notes cir- the Japanese military culated in Manchuria during the Russo-Japanese War, the spokestnan

Rome, June 1. Popolo di Roma, commenting on M. They fear that any further delay

Molotov's speech, writes that the might be dangerous.

The Soviet Ambassador to Paris Commissar's speech sounds above all The object, the paper declares, is

reserve. The not to restore the League of Nations and the French Foreign Minister a note of reproof and but to re-establish international co- were in conference to-day and it is situation remains as when Litvinoff understood that Moscow indicated a was torpedoed, but Britain had not ion on a firm foundation. The statement reveals that during operation on a

"qualified acceptance" of the British then given way on every point, as the first year following conclusion of Referring to M: Molotou's some-draft of the

she has done since Lord Halifax's treaty. the German-Manchukuo Trade what sarcastic

Geneva... comment on British

to Paris and It is said that tlie Soviet Ambassa-journey Agreement, from June, 1936, to Ray, foreign polley, the paper emphasises dor informed M. Bonnet that the Reuter, 1037, Germany pald Yen 83,000,000, that Britain is ready in case of Soviet has no longer any confidence | "A Firm Answer" during the second year, Yen 79,000,-emergeney, to engage in military the League's procedure and there-

Milan, June 1 000 and during the third year, Yenretion.-Trans-Ocean.

fore objects to the proposals to make 139,000,000.

Publishing extensive excerpts from the milltary action

with confam Article 16 of the League Covenant. M. Molotov's speech, the Italian Press features his assertion that Russia had -United Press.

no intention of

"plucking Paris Press Critical

others. nuts out of the coals for the ches-declared." Paris,June-1-- ·Hi

della Sera, a firm answer to The Soviet objections to the British riere dech, according-to-the-Cor- The impression prevails in British proposals are confined according to the Democracles. The papers describe recently published in Shanghai by the issue of the. many Include soya bean, soyn benn oflleial circles that the difference the French press, to three points: at length the disappointment and ir- Mr. Yoshida, well-known Japanese

the two fewpoints are dif- opposition to any reference to the ritation called forth in Paris and banker, regarding

Hua Hsing banknotes was refuted oil, peanuts, and buckwheat, while ces of form

Lengue of Nations in the question London by M. German exports to Manchukuo in-

by the spokesmon. He pointed out Mr. between the discrepancy elude construction materials such as stance. Until the actual reply of the of rendering assistance, rejection of Trans-Ocean.

the idea of consultations before as-

Yoshida's allegation that a new cur- machines, mineral ores and chemicals. Soviet Government Is received

Concluding, the statement declares will not be possible to say how im-sistance is rendered, and insistence

rency in Central China is necessary in view of the imminent collapse of that the steady progress of trade be-portant are these questions of form. on the inclusion of the Baltic States

us the reference to the in the pact. tween Germany and Manchukuo will

The papers

claim that the $50,000,000 notes by the Hum Haing Commercial Bank are bacised by the same amount of Chinese legal tender.

Manchukuo in turn defrayed dur ing the first year Yen 13,000,000, dur- Ing the second year Yen_37,000,000 and during the third year Yen 86,- 000,0000.

Chief Manchukuo exports to Ger-

A diplomatic correspondent learns tint-now--the-full-text -- of---M.. Molotov's speech has been received in London.

So far

rather than sub-

it

are unanimous

in

Molotov's words.

America Surprised

Question Of Reserve The explanation given in

articles

contribute much toward the execn- | League is concerned, it is not exagreeing that the third point will meet fusion, according to the New York 1-the Chinese legal tender and

tion of Manchukuo's five-year induspected that trini development Domel,

programme.---|-

Japanese Youths For North China

As

any serious divergence

or

and London

his

New York, June 1. The first reaction to M. Molatov's speech is one of amazement and con- Times. The journal says the ques- ill occur with a State, which has with the greatest opposition. for. on now for Britain and France to

states, Paris L'Oeuvre been an untiring supporter of League will consider the situation seriously decide is how much more they will

"inciples.

The Hua Hsing notes have been Door Left regards the Baltic States and before agreeing to regard to possible and can concede-Reuler.

German-Lithuanian

German-

Open

Issued apparently to defray Japan's question of guarantees, the British Latvian Incident with the same

Washington, June 1. huge military expenses and nobody hold every State has the right to

High administration officials be- would belleve German aggression

that the new bogus Its integrity und

lieve that M. Molotov has left the bank would so honestly placo $50,- indepen tencu, significance as That would be a matter of principle, against Poland or Rumania.

The question of Soviet obligation door open for further negotiations 000,000 Chinese legal tender in its and a guarantee will not be forced

also arises in the case of aggression with Britain and France. They also safe for the issue of the same amount against small States to the west, such hold the view that M. Molotov's of bogus notes. R.

ns Switzerland, Belgium or Holland. sharp and unequivocal tone is likely Echo de Paris is of the opinion that to ensure a good prospect that the the there can be no mort question of pact will be completed with

and France guaranteeing minimum of delay. No insurmountable Difficulties

Lithuania and Latvia than of Russia Military and naval experts believe The Government is sending about

London, June 1. 6,500 students and representatives of The view is widely expressed in guaranteeing Belgium, Holland and that France and Britain are unable

Switzerland. The paper insists that

generally

to reject the Soviet de- young men's Associations to Man- the morning papers that there is the part must not be bought at any mands, as any effective action to halt churlu and North China this summer nothing in M. Molotov's speech to to train them in labour service on prevent a satisfactory conclusion of price and declares that the limit has possible German aggression against the British and French allies in East the Continent so that they will serve the contemplated Three-Power antl now been reached.

Europe is absolutely dependent on more effectively in future for the aggression

Avoiding Risks construction of a new order Enst

Daet,

L'Epoque, which

always the powerful anti-German eastern Asta.

to, the mis- espoused the Franco-Soviet policy, front which only Russia is able to

Tokyo, June 1.

upon any State unveiling o accept British opinion finds ail acts of aggression hateful--Reater.

The Times and Daily Telegrap devote close attention

Brilain

hos

Visiting Manchukuo will be givings of M. Malotov in regard to plso voices scepticism, and declares present.

that the object is not to build up!

impaired

red and

nre

minating vermin, harvesting, pasture by any wr States, which that they may be entering into a general opinion is that Russia now

rear us

the

Both official and diplomatic quar- vanguard of 302 youths, a force of the reference in the

Anglo-French 4,241 young men,

to the resumption of Soviet- and a group of proposals to the Covenant of the Len-visionary constructions but to seek ters believe that M. Molotoy's refer- 1,720 students, while the North gue and the position

of the Baltic out the best method of procedure and enco China corps will conalat of

1,218 States. The Times says it is clear that one accompanied by the least risk German trade negotiations in intend- students.

other herself bound by when the Government invoked the of dunculty and danger. The deed as a warning that Russia no longer treatles of the European democratic While touring Manchuria,

spirit of the Covenant they did not mands of the Soviet are not illogical, considers youths and students will participate mean to suggest that the projected according to the paper, but they in-trours since the Munich smocratic

volve needless amount of risk and rowers in field cultivation, weeding, exter-agreement should be hampered

therefore disquieting. Britain the French failure to full treaty formality of con-

and France are justified in fearing obligations to Czecho-Slovakia. The of all member *ing, --- Îand -- reclamation," pubiles form of Council,

n engineering, and transport business

alliance with an uncertain partner occuples n-most-strategic position in The Daily Telegraph considers that who, in addition to the alms of the the European diplomatie scene. A Visitor to North China and Inner Mongolia will be armed and receive the position of the Baltic countries is pact, pursues an appalling plan of its strong agreement between Russia preliminary training on the outskirts probably problems, having regard

dimcult of the own.

and the Axis Powers is considered by oftelals and diplomats to be highly of Peking and engage in military

The work of negotiation has been improbabic, but Russia's tremendous well as to the wish of the countries them lightened by M. Molotov's statements; bargaining power in this connection service in the cultural, agricultural and engineer neutrality, but the

selves not to. compromise their which may be regarded as an ex-

widely recognised: ing works-Domet,

paper believes pression of M. Stalin's views, states!

Certain officials believe: that M. tint the dimculties, though serious, the semi-official Parisien, While not

Molotov's declaration constituted a ought not to prove insurmountable,-jeopardising the eventual success of vigorous criticism of Mr. Neville the negotiations, M. Molotoy, accord-

rd-Climmberinin's agreement policy Halifax For Moscow

Ing to the paper emphasises, with

United Preez, Paris, June 1. his Bolshevist lack of consideration,

Turkish Influence Despatches from London, and in-exaggerated differences of opinion

London, June 1. direct reports from Moscow, which which are in reality not of a funda- reached here to-day, declare that the mental nature, and thus awakens the The Turkish Foreign Minister, M. British Foreign Secretary, Lord Hali-impression that still greater obstacles Saracoglu. Intands, according to the Daily Telegraph, to visit Moscow In fax, may go to Moscow to.overcomo stand in the path, the deadlock in the negotiations, In a later edition the Echo da Paris the rear-future for conferences with. which

to the declares that M. Molotov's speech in the Soviet Government leaders. Tad are due above all divergences of opinion concerning the a cynical attempt at blackmail, which paper intimates that the visit beard question of a guarantee for the Baltic may justifiably be looked upon with some connection with the Anglo States, by personal contact with the distrust. The single conclusion post Soviet negotiations Trans-Ocean.

SALE OF WORK

A sale of work will be held on Wednesday from 3.30 p.m. S to 0.30 pm, in the School for the Deaf at 07, Kal-Yan Road, Kowloon City. Mrs... Grasett, wife of the General Officer Commanding, will open the sale.

AL 4.30 pm. n déinonstration of speech work and lip-reading by denf pupils will be given.

Reuter.

.

Mr. Yoshida's declaration that the us Hsing notes will be circulated ride by side with the Chinese legal tender and will have the some ex- the change rate was ridiculed by

asked why the spokesman, who spok Japanese tried to link the new bogus notes with the Chinese legal tender notes and the instead of with yen Federal Reserve Bank notes-Cen tral News.

IDEAL DIET FOR DIGESTIVE DISTURBANCES

The big problem with sufferers from gastritis or other digestive disturbances is how to avoid pain and discomfort when eating. The inflamed stomach walls are so sensitive that solld foods can' not be retained. Even liquid foods are often vomited.

Yet the patient: must get quick new strength into his body. Doctors and nurses have found that Horlicks is retained in the stomach when other foods are rejected. The reason is that. Horlicks is so easy to digest. At the same time,it,rebullds the exhausted body, and restores strength and 'stamīnu, a

Keep Horlicha ready at hand. Itla. delicious to lasto. Your store solls Horlicks."

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Grain leather uppers. Rubber soles

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-1931-

"THE CHAMP"

1934 "TUGBOAT

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1937.

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HULL FENTON REYNOLDS COMMENCING TO-MORROW

QUEEN'S & ALHAMBRA

At The

QUEEN'S Only

Gala Charity Performance

SATURDAY at 9.30 p.m. ADMISSION: $2.20, $1.50, 26c. &,50c

THE ENTIRE SURPLUS RECEIPTS FOR THIS PERFORMANCE OF "BOYS TOWN" WILL BE DONATED TO THE HONG KONG SOCIETY. FOR THE PROTECTION OF CHILDREN.