TENSION AT TIENTSIN

Auckland Star, Volume LXX, Issue 139, 15 June 1939, Page 11

TENSION AT TIENTSIN

BLOW REGARDED AS UNFRIENDLY ACT. BRITAIN PROTESTS. Japanese Discrimination At Tientsin. TENSE SITUATION DEVELOPS. I nit"d Tresis Association.—Copyright. (Rorrivnl 11 a.m.) I.OXDOV. Juiic It. ' Hritj~h Anil)ii.--in|,,|-. Sir If-'l'iTl Cniiiri,.. presentc,| ,| l( , p.rinM, I"'" I ''; 1 Ir - li.H-hin. Aritn, .l;i|>;inM i ni-i it. || ( . >lU ,| lirit,,!,, ""- ;l i'ili'il I Ik* I•1•m•k ;i <I i ■ jit Tientsin ;i 11 I< ' 11111 v jii-1. It is ini(lcrsti)i,i| !' l" 11 ;m 11 strongly resented .l;i|.;m's fl'l•' > 1 " Will" measure iiLTiiitisl I»i'l;ii'i, with whiun her relations arc friendly. I In' blockade nf (In- foreign eoncesin Tientsin—the Inrjjcst in China alter S|,a nylia i —lie;.™ M„t s j x o'clock this "" " "' -la pa nese troops entirely snr ronnileil the concessions, strong forces niiilining lit,rriciulcs mill blocking: nil but. luii ot the roads lendiiiir t<> them. Lontr (pieties ot foreigners lined up nt seven "en reliinjr post s. Hundreds of (hinese arriving at the barriers curly this niornim_r on their " 'iy l'> Work were forced to puss t hrouyh narrow alleyways. their (loth iny mis stripped off behind closed doors, •ind they were searched at the rate of one a minute. Itr,t,s]i residents were closely inspected. I»111 licnch and Americans were pas-cd after a perfunctorv identiticatioii. Motor cars the flermau and Italian Hairs were not halted and not searched. I he streets are deserted and the flow of rroods lias stopped. Although a •la panose spokesman stated that food would lie admitted, prices have already soared l»y .><• per cent. The most serious teat ure of the blockade is the threat to foreign trade.

British Volunteers Mobilised. 111-it isfi volunteer forces were mobilmml Inst evening, ami a liattalion of lie Durham Light. Infantry is patrol ing the concession. The blockade is hourly becoming more ntenshe. Business i" at a standstill, .is most of the ( liinese employees did .i"l attempt to pass through the lines f o |he roiiccssioris.

The British Cabinet to day considered ••lie Tientsin situation. In Tokyo Sir Robert Craigie. the British Ambassador. called on Mr. Arita, the Foreign Minister. Baron Hiranuma, the Prime Minister, conferred with Mr. Arita and the War Minister, General Ttagaki, for some hours. A news agency announced tluit they decided on a vigorous policy in regard to the foreign concessions in China. including Tientsin, which had been turned into bases for assisting Marshal Chiang KaH-slick.

The Ja pit itese have stopped the entry into Tientsin of vegetables and prices lime been trebled. Dozens of foodladen junks are lying in the river. but norm arp unloading. A British lighter whs lipid lip, exartiinpd and allowed to proceed.

CHINESE DOLLAR. Questions Regarding Fall In Exchange Rate. CHANCELLORS STATEMENT. British Official Wireless. (Received 10 a.m.) KI.'GBV. June 14. The Chancellor of the Kxchequer. Sir John Simon, was asked in the House of Commons about Ihe full in the exchange rate of Ihe Chinese dollar. He snid: "As is generally known during past weeks there has been no pressure on the China Stabilisation Fund and confidence in the national rurrency remains unshaken. However, the control temporarily withdrew its support on Wednesday in order to allow the exchange value of the dollar to be adjusted to a better economic level and thereby bring the balance of trade into equilibrium.

"As will be remembered, a similar step was taken a year ago, and when the level of Hd was found it was successfully maintained for 12 months. It U confidently believed that a new level lias now been found and can be stronglv held.

'Mimy goods previously imported nre now being made at homo. A very favourable harvest, foreshadowed by all reports, will also contribute toward reduced imports. Arrangements have been completed so that the Government's requirements of foreign exchange for munitions and other supplies have been taken care of and will not come on to the exchange market.

"finally, as tlio stabilisation fund is strengthened and further efforts to broaden the basis of this fund have been successful, the ability of the authorities to maintain the exchange will not be i|iiestioned. It is emphasised that in spite of the present adjustment in the exchange level the national currency will continue to retain the confidence of tlio people because its free convertibility is at all times assured."