1939-07-20 — Page 19

OVERNIGHT TOKYO

Thursday,

HONGKONG TELEGRAPH

CONFERENCE

NEWS PAGE NOT YET DOOMED

CHINA'S

CURRENCY New Talk Said to

Tokyo's Interest In Slump

Tokyo, July 19.

Foreign exchange banks in Japan understand that the latest withdrnival of support from the Chinese dollar in Shanghai in attributable to the vir tual collapse of Chungking's econ- emic control in Central China,

They pointed out that the Chung- king Government has been making efforts to holster up The crumbling legal tender and in a hope to arrest the heavy drain on the Currency Stabilt- sation Fund has resorted to various emergency measures during the past two months including the lowering of the exchange rate from 8% to 05 d., enforcement of a partial moratorium and tightening of insport control.

Japanese banking circles express the opinion that the present with- drawal of support by the Exchange Stabilisation Fund is designed to sustute the Stabilisation Fund.

It la belleved difficult to recover the exchange rates of the legal-tender unless new credits are forthcoming from third Powers.-Domel.

Market in Hongkong

!

Be

Roosevelt Warns

Clarifying European Situation

Sir Robert L, Craigie, British Ambassador and Mr. H. Arita, Japanese Foreign Minister, held their' second conference in Tokyo yesterday morning at 9 a.m. to, discuss the Tientsin issue. The conversation was suspended at 12.15 and was resumed ní 4 o'clock in the afternoon.

It is believed that Sir Robert gave Mr. Arita a frank sinte- ment of Great Britain's views on the Japanese wishes to extend the scope of the negotiations to cover questions of general principle, though he emphasised the neutrality of the British Concession In Tientsin und demanded protection for British rights and interests,

Unconfirmed Japanese reports say that British firms and residents in Tientsin have started preparations for evacuation In view of the allegedly darkening prospect of the Tokyo talks. London reports' indicate, that Mr. Arita has adroitly raised the whole question of British assistance to Chiang Kai-shek. However, he has not touched issues which might give Britain cause to seek United States Intervenilan,

A London dispatch to the New York Times says that the British Government desire to postpone the Tokyo conference until October so as to ascertain the prospect of the European crisis.

In Hongkong the Chinese national

Tokyo, July 19. Unter pessimism is not necetanry! Furrency yesterday morning opened at 35.00 (ie., HK, $15.80 for every regarding to the prospects of the $100 national currency). The notes Anglo-Japanese conterenies in Tokyo were a supply and declined to 34.74 on the Tientsin Issue, according to at the close of the market in the after-informed quarters who claim that closing rate wets the Sir Robert Craigie, during his inter- hoon. The lowest for the day, while the highest view with Mr. Arita, showed con-

viliatory atlitude, was 35.80.

Most Dangerous

New York, July 10, Prodent Roosevelt hos issued a solemn warring on the dangers of the European Altuation a confer- ence of the Republlenn and Demo- cratic Senators at the White House last night, according to the New York Herald Tribune.

flo stated that the European situa- tion was much more dangerous than was generally supposed, and

that Hitler may provoke a war any day of the week or any month.

July 20, 1939.

Preventing Floods

London, July 10. Arrangements have been made under which British engineers will stop the extensive floods on the Euphrates by construction works near. Ramadi, Iraq, to convert thousands of acres of useless water-logged land inte valuable agricultural areas.

The work, which will occupy four years and cost the Iran Government about £500.000,

will be undertaken in the autumn by a London firm.

The scheme is to divert the flood waters at a paint about 50- miles west of Baghdad and con- vey them Into Lake. Habbasiyah, which is the Imperial Always base. Two canals will be cut as escape from the lake into the denert depremion. The Brilial: materials will consist mainly of cement and sluice gales, coating together £100,000.Renter

Special,

The newspaper adds that as a first Neutrality Bill

witness in support of this thesis, Pre- Isident Roosevelt was able to cite Mr. Davies the Ambassador to Brus- sels, who said to reporters, after he had seen the President, "I am not at all happy about the situation."

Mr. Davies, it is slated, painted a wry pleture pf things to come in Europe, unless the United States la tervened with all its morul forces on the side of London and Paris.

The President, Is understood, aid to the Senators that Congress by not considering the neutrality legislation would now risk being Japanese pressure at the Tokyo talks, summoned back to Washington lo a In view of Britain's difficulties in special session in the summer, should rope there is undoubtedly a ten-war break out in Europe.-Reuter. dency on the part of the British Gov- ernment to minimise the dangeṛ pro- sented by the Japanese plans in the Far East.

|

Envoy's Warning

"The lion is the emblem of Britain, and nothing could be more fatal for The Information Bureau of the the king of beasts than lack of will Chinese Comment

Foreign Office issued a communique to make use of its formidable laws," Should Britain show an Inclina- this afternoon. It reads: "The second Commenting on the decline of the interview between the Foreign Minis-tion to compromise at Tokyo, prefer to go home now rather than Chinse dollar, the Ta Kung Pao to- ter, Mr. H. Arita, and the British would deal fresh blow at British day eats the attention of the people to Ambassador, Sir Robert Craigie, was clined.

prestigo, which bas already the fact that, as Shanghai has now held at o'clock this morning it the lost, its importance as China's reon-offlelal residener of the Foreign odle centre, the fluctuations on the Minister. exchange market there have no im- portant bearing on China's economic structure,

The sharp decline ennnot be at- tributed to the devaluation of the legal tender, as the amount of its

reserves remains the shine.

The Journal enjoins the people in Shanghai to remain calm and not to Rive, credence to rumours so as to afford, the Japanese an opportunity to further disturb the Bnancial sites tion. Strict economy should also be practised,

The downward slide of the dollar Is a natural phenomenon in the war the Sing Tao Jh Pao drelares.

Yesterday's fail, the paper believes, was due to the dumping on the Shanggul market of a large quantity

de

Britain's attitude at Tokyo will not only be watched by the Japanese but also by Indians, South Africans, as well as other peoples all over the the Musculmans, Arabs and Egyptians,

world.-Trans-Ocean.

Sir Robert Cragio stated views of his heine Government re garding the general questions form ing the background of the Tientsin situation and Mr. Arka fully explain-

the of the Japanese Government.) "The conversation was suspended at 12.15 o'clock in the afternoon and wilt be resumed at 4 o'clock in the afternoon.”

British Ambassador consulted Major Taking advantage of the recess, the C, A. Herbert,

the British Sartior

Cims at Tientsin, who is visiting in Tokyo to assist Sir Robert in the diplomatie negotiations.-Devel

of Chinese notes which the Japanese It is believed Sir Robert gave hir.

|

PRESIDENT GIVES

UP HOPE

Legislation Is Shelved

Washington, July 18. President Roosevelt has abandon- ed hope for the neutrality measure. Washington, July 10, The announcement was made ufier) President Roosevelt's press' secre- a three hour conference between the tary told reporters that after reading President and the Republican and

leaders statements on the neutrality decision Democratle Senate

at the it simply means that Senators are Whitehouse. Two statements were faced by the chances of a prolonged issued, first that "Senator Barkley débate or filibuster, They would said that the consensus on the part of the members present was that no risk the chance of a new crisis in action regarding neutrality could be Europe with no Congress on hand." obtained from the Senate in the pre- The New York Herald-Tribune sent session, and that the majority of says that Mr. Davies, Ambassador to Senators would concur in that view. Brussels, gave reporters a three point. Minority leader Senator McNary ex- | warning. First, that Hiller would pressed. the same view and they

by American influence; second, an- soon seize Danzig unless restrained agreed that the majority of

Senate would consider neutrality nexation of Danzig will be followed; beginning next session." by a fresh partition of Poland, In which Hiller, and possibly Stalin, The other statement was, "The by victory in the east, Ilitler would the definite position that failure of The dispute between the French furn his attention to the western Concession muthorities and the Chin Powers and the long dreaded bomb- ese Special Municipal Governmenting of Paris and London would horrify

French the world.-Reuter, of the Central China Young Men's over the arrest by the Municipal Council police of members

the Lukuochiao incident, huns Association on the anniversary of been amicably settled through the good offices of the Japanese Artay's speciali service alsslon.

Hankow Incident -

Hankow, July 10.

Scope Of Discussion

Settlement of the dispute was confirmed as the result of the inter- Tokyo, July 19.

view on Tuesday that between collected in North China, and to the Alta a frank

Japanese statement of Great Major Murakami of The Views runours spread by the Japanese with Britain's

the Japanese Army's special service mission and French view to undermining the Chinese wishes to extend the scope of the . Iteynaud. the acting confidence in the legal tender,

mgotiations to cover the questions Consul-General at Hankow.

It is understood that the French The journal considers harmful the} of general principle, though he em-) concentration of idle capital in phasised the neutrality of the British suthorities have agreed to offer an

apology for the arrest of members Shanghai and urges the people in Concession in Tientsin, and demanded of the Chinese Young Men's Assocla- inte investments in the interior in protection far British rights and in- tion by armed police of the French order to build up an economic base terests.-Reuter.

Municipal Council,

paper urges

-Biere

Concluding. the Britain to continue her support of the Chinese currency because her come| mercial interesis in this country will sustoln heavy losses If Japan secceeds in controling the Chinese innket.

Central Neier,

Hua Hsing Bank

Tokyo, July 19. It was authoritatively revealed that the Rua Hsing Commercial Bank. only issue bank of the Reformed discon- Government, has deekled

Another Hour's Talk

would figure; and third, encouraged

New Central Regime

Nanking Politicians Said To Favour Wang

the

President and Mr. Hull maintained

the Senate to act now, would weaken the leadership of the United States in exercising her potent influence in the cause of peace among nullons in the event of a crisis between now and next Jantives."

the

At a press conference to-day, Mr.

la Stephen Early Secretary White House, said the previous state- ments issued from the White House meant that President will not seek session of further legislation this Congress.

He explained that this decision meant that Senutors, faced by the possibility of prolonged Allbuster un neutrality legislation, prefer to go home, risking u possible European crisis before Congress convenes next January.

He said Senators differed with Mr. over the Roosevelt and Mr. Hull possibilities of such a crisis

Tokyo, July 19. Press messages from Peiping und Nanking says that a movement

is afoot in China for the inauguration of a new Central Government with Wang Ching-wel as Chairman, The Chinese-Municipality's-com Reports from Nanking-indicate plaint of the confiscation of the five-that Me, Liang Hung-chih, President Tokyo, July 19. barred flags by the Municipal Coun of the Executive Counell of the Re- lie added that neither the Presi- Following their three-hour diselt police will be dropped, while the formed Government, told newspaper-dent nor Mr. Hull is as certain as cussion during the morning, the For- French Concession authorities whil men upon his return from Tsingtao the Senators that trouble in Europe eign Minister, Mr. Hachiro Arita, and not interfere with peaceful move where the Joint Commission of the is not likely to break out before next the British Ambassador, Sir Robert ments by Chinese citizens in future. Provisionni and Reformed Govern winter. Cralgle, resumed their conversations Domel.

ments hold its fifth sesslon, that hy would fully support Wang Ching- wel's views..

at 4.50 pm. The meeting adjourned

at 6.10 p.m. until Friday,

A communique issued by the For- eign Ofice at 7.10 p.m. says that dis- cussion of general questions forming the background of the Tientsin situa- tion was continued in the afternoon.

time its connections with the Chung-The British Embassy also issued a

king currency and maintain an inde- pendent exchange level in terms of pound sterling at Od.

terse communigne,

It was authoritatively understood that there was 10

change in the

The authorities of the China Afhirstmosphere in this afternoon's inter-i Board on Tuesday consulted Mr. View between the Foreign Minister! Takeshi Whshio, Vice-President of the Hun sing Commercial Bank, regarding the continuous depreciation of the Chinese dollar.

The decision: to suspend

linking up with the "Fapi" and establish an Independent exchange standard were cabled to the authorities of the Cen- fral Chlin Liaison Oiles of the China

Affairs Board and the Ilus Ising Bank authorities in Shanghal this morning.

Necessary measures to stabilise the new currency value are understood to be under contemplation. It is understood that besides being a trade currency, the Hun Haing Commercial notes will hereafter be steadily ad-

ordinary vanced in

circulation. Domci.

Chungking View

Chungking, July 19, Well-informed circles here belleve that the sudden fall in the rate of the Chinese dollar is connected with the rumours current in Shanghai and Hongkong concerning the alleged

Popular In Tokyo

Japanese Esteem For Major-General Piggott

Tokyo, July 19.

and the Ambassador. The British | Major-General E. S. G. Piggott,

vay, it is understood, maintained a British Mary Attache in

Tokyo conciliatory atlitude, but neverthe-holds a unique position in Japanese! Iess stood firm for his Government's esteem despite the current whirl- chims,

wind" of anti-British sentiment, the Informed quarters point out that it Chugai Shogyo declares.

of the parleys.

the

cannot be said that ony definite pro- | Having spent much of his child, ttress has so far been made, although bool in Tokyo as the son of a legal Itoli, neither optimism nor pessimism is adviser to Prince Hirobumi warrantable regarding the outcome veteran statesman of the Meijl Era, Major-General Piggott speaks Japan- It transpired that the "agreement" ese so perfectly that he is often inis- to wear lounge sults during the taken for a Japanese over the tele- parleys in view of the sweltering phone. heat, was faithfully observed to-day. His recent visits to Tientsin and Mr. Arita were a grey lounge suit, Shanghal was, according to while Sir Robert appeared in a white Chupai Shogyo, calculated to adjust matters between the British and Lady Craigie this morning accom-Japanese in China, but the

failed to panied Sir Robert in the motor-car alleges, his effects have from the British Embassy to the

yieki tangible results.

Major-General Piggott is also very official residence of the Foreign Minister, the seat of the conference, fond of eel and rice or "Unaga! Domburk," a typical Japanese dish- Domci,

Major-General Piggott s son of Sir Francis. Piggott, one time Chief Justice of Hongkong.

one,

-Domci,

Chungking Views

Chungking, July 19.. The Hankow Herald expresses the Impending resignation of the Finance hope that Britain will not yield to Minister, Dr. H. IL Kung, as well as

with the rumours that die financial

adviser to the Chinese Government, take measures to put an end-so for Mr. T. V. Soong, will shortly pro- as it is able to do so to the spread-

to be without foundation.

Speculation regarding the possible outcome of the Anglo-Japaneso negotiations in Tokyo has in all probability, contributed to the fall of the Chinese dollar.

Trans-Ocean.

Macao Silver Import

Shekk), July 19.

Prestige Grows

0

Mr. Liang said that the Reformed Government would shorly issue formal statement clarifying its at titude regarding the peace movement. -Domel.

$600,000 For Propaganda

Shlukwan, July 10, An Intelligence report from Shang-

hai states that the new bogus federal

ed.

government headed by Wang Ching- wel will be inaugurated on October 10, when, it is stated, 60-called People's Conference will be ruminon-

Wang's followers are now trying to solicit support from the industrial commercini, and intellectual organi- sations in Shanghai,

It is further learned hat $600,000 (Chinese currency) has been offered by Wang to secure the favour trade unions.-Wah Kiu Yat Po.

Nuffield Gift

paper Establishing Teaching

Unit In China

of

Leaving to-day's Congress, Vice-

Is President Garner said Congress adjourning "soon."-United Press,

It was stated that the adjournment data of Congress was not discussed at the meeting at which Mr. Cordeli Hull and Senators Garner, Barkley, Pittman, Borah, Monary and Austin were present. Mr. Roosevelt argued for a long time and manfully to sway the Senators to his viewpoint.

The Washington correspondent learne that the President aid Mr. Cordell Hull were emphatle that a risks of war existed in Europe. Their view was based on most reliable re- purts of United States diplomats In the European countries.

well- The Immediate reaction in inforased circles in Washington Is that the President will now.carry the case to the people during his tour of the western United Slates this summer. At the same time the Re- publicans are belloved to be anxious bnt to be manoeuvred Into a position of espousing Isolation, which would give an advantage to the Democrats for the 1940 elections.

It is thought, therefore, that they wiil

*citlo the endeavour to neutrality question Brst thing at the next session with a free vole outside purly lines-Reuter

Shelved Till Next Session

London, July 10. Lord. Nufield has subscribed £500

Washington, July 19. Persistent efforts to get action on towards an appeal by the Chinese Red Cross to the British Orthopaedic neutrality legislation at the present of Congress have been Association, which works in co- Session operation with the British Fund for abandoned by President Roosevelt the Itellet of Distress in China, for and Mr. Cordell Hull after discussing the provision of a teaching unit of the situation with the Repubilean and 250 men to be established well be- Democratic leaders of the Senate.-- hind the lines.

Reuter.

Lord Numeld, who gives the -London, July 16. scheme his wholehearted; support, A straw vote arranged by the says think It is proposed la: send a surgeon to, this point, where lio will

Adjournment In August

Washington, July 10. seed to London. In official quarters, ing of rumours enteulated to ad- British Institute of Public Opinion

Congress is moving towards an however, these rumours are declared | versely affect Chinese currency.- showed that Mr. Chamberlain's act as surgical director and instruct

political prestige in Grent Britain Is Chinese surgeons. The members of adjournment, probably the first week

the Orthopaedic Association and August-United Preas. growing again,"

Of the people asked 63 per cent, ollier medical bodies not specialising backed up unconditionally MG. in orthopaedics have already, sub» fa

(exclusive of Lord Chamberlain's present polles, while scribed £1,400 It is reported that a large quantity 43 per cent. since it is

wero against it. The Nuffield's donailon) towards tho generally expected here that Britain of Chinese silver has entered Macao remainder refused to commit them- £6,000 required, will adopt a conciliatory attitude and following the influx of refúgets from

When the monoy is raised, Lord that a compromise with Japan will Sze Yap.

Similar privalo plebiscites, were Nuffield added. It is suggested that held by the samo Institute on pre- the man bleeled to go to China, Be vious occasions and have nearly called; in the report, as the Jones. always givan d.correct, estimate of Emergency Relief Surgeon,, after the the mood of the British public amour orthopedic surgeon, Sit Traha Ocean

Robert Jones aftouter, snad jezo,

currency.

...be reached which would have an According to an unofficial estimate, unfavourable 'Influence on Chinese over $120,000 (Chinese currency) warth of silver has been brought It is stated in political circles here there during the past two months, that the Chinese Government will Wah Klu Yat Po.

selves,

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