FEAR OF CLASH.

Auckland Star, Volume LXIX, Issue 4, 6 January 1938, Page 7

FEAR OF CLASH.

GRAVE DEVELOPMENT.

Japanese Moves to Control

Shanghai. FOREIGN INTERESTS AT STAKE United Press Association. —Copyright. LONDON, January 5. A new.and serious clash between Japanese and foreign interests is threatened as the outcome of the municipal authorities referring to London and Washington Japanese demands for the virtual control of the International Settlement.

In an apparent campaign' for the domination of the Settlement the Japanese have taken over the operation of the radio stations and installed Japanese censors, who are prepared at a moment's notice to control messages, including foreign ones.

This means that foreign newspaper dispatches can be censored to their liking.

The appointment of Japanese to controlling positions in the Shanghai administration, Japanese control of "anti-Japanese newspapers," including those owned by foreigners and published in foreign languages, were among the requests made to the council.

The proposals, it is stated, were put in the form of a virtual ultimatum since, in presenting them, the delegates uttered a warning that the Japanese Army might be compelled to take steps as occasion required to root out antiJapanese elements. Restraining Chinese. The Shanghai correspondent of "The Times" says the municipality, in the general interests, is most anxious to meet the desires of the Japanese regarding law and order. It has done much to restrain the Chinese, and, in accordance with Japanese wishes, the police have made unremitting efforts to prevent incidents by searching suspects for arms. However, the council has its authority only under charter, changes in which would require the approval of the signatory Powers. Provided that the security of the Japanese forces is not affected, no censorship on foreign cablegrams is contemplated while Press messages remain reasonably restrained.

A message from Shanghai states that the municipality consists of five British members, two Americans, five Chinese and two Japanese. -

A prominent official says that unless the Governments concerned declare the Japanese requests to be unacceptable the foreigners will resign, owing to their position being untenable, and the Japanese would then control the Settlement.

WHITE DOMINANCE.

Japan Would Risk Clash with

Britain. AN INTERVIEW CORRECTED. (Received 11.30 a.m.) TOKYO, January 5. It is semi-officially declared that the report in the Paris Press of the interview with Admiral Suetsugu, Minister of the Interior, given to the influential political journal, "Kaizo," was "grossly misquoted and mistranslated." Admiral Suetsugu was said to have declared that "the white yoke in Asia muse go."

The Domei News Agency has issued an English translation of the interview, which states that Japan is aiming at ultimate Sino-Japanese co-operation and peace in China.

Whether or not this means exclusion of whites is an important question which should mark the turning point in world history. "I believe lasting peace will not be realised unless coloured races are delivered from shackles of the white under which they are living a miserable life," he added.

"If China depends solely on alleged British assistance in continuing hostilities, it would be inevitable that Japan would stop the fountain-head of resistance, even at the risk of a clash with Britain, but I am inclined to believe Britain would readily listen to reason."

AIR RAID ON HANKOW.

TWO AMERICANS KILLED

(Received 2 p.m.) SHANGHAI, January 5. Japanese claim that the air raid on Hankow destroyed 21 'planes and devastated hangars, barracks and concrete runways. Two American airmen *vere killed when taking off from Hannow military aerodrome. Japanese troops in Shantung continue to press on the Chinese, who are fleeinjr, while their advance north of Pukow has reached a point 55 to 40 miles from Pukow. NEW ENVOY TO CHINA. LONDON PAULEYS FIRST. British Official Wireless. (Received 12 noon.) RUGBY, January 5. The new British Ambassador to China, Sir Archibald Clark Kerr, will come to London this month from Bagdad for a fortnight's consultation before travelling to Shanghai as early in February as possible.

CHINESE CLAIMS.

JAPANESE RETREATING,

(By Telegraph.—Press Association.) WELLINGTON, this day. . The following cablegram from Han- . kow was received by the Chinese Consul: "Advancing from Fuyang . Chinese reached Lukwortap. a few mile* ,; from Hangchow railway station. Jap- [' anese within Haugchow ret ired to the j outskirts of the city. Li "On Tsinpu front, in the centre, the .[Chinese retired from Taian and have t taken up positions at Taikumkow and > they hold Pinuyunikow on the left flank I and Nuntai on the riplit. > "Japanese, who threatened Puvanp • on the border of Hopei. and Honau, have ; been defeated and are beinjr pursued by : the Chile.-ie, who have recaptured lifeng and Nanloh, the Japanese retinn o I to Taimi^."