CHINESE CURRENCY BONE OF CONTENTION.

Auckland Star, Volume LXX, Issue 179, 1 August 1939, Page 7

CHINESE CURRENCY BONE OF CONTENTION.

TOKYO PARLEYS.

Japanese Threat To Break Off Talks. NEW ORDER IN ASIA POLICY. United Press Association.—Copyright. (Received 10 a.m.) LOXDOX, July 31. A communique issued in Tokyo states that the afternoon's conference was concerned with the subject of maintenance' of peace and order in Tientsin. Some points of the proposals were referred to a joint subcommittee for a report.

'I he Tokyo niorninjr newspapers today announce that the economic conference has been postponed to enable the Japanese further to consider the deadlock over the Chinese currency and silver questions. The British contend that the handiiijrover of the £1.(1(1(1.00(1 worth of Chinese silver in the Tientsin banks has nothing to do with the maintenance of order in Tientsin, but Ihe Japanese assert that tin- former is a vital precedent to the achievement of the latter.

I lw Independent Cubic Service i|uotes the Diiniei News Agency a> saying ■ Inpun will not hesitate to break off the talks unless or until Britain shows sincerity in helping to construct the new order in the Kur Kast. It adds: '•Britain seems to he trying to drajr out the SinoJapaucse hostilities in order to hamper ■ lapau's new policy in Asia.

"Britain is pursuing contradictory policies—on the one bund she is willing to make concessions in the Japanese-I'ccilpie-d areas in order to protect British rights and interests, and on the other she is continuing to aid the Chiang Kai-shek regime." Cable to Mr. Chamberlain. Public bodies at Chungking cabled Mr. Chamberlain urging suspension of the Tokyo conference.and abrogation of Britain's commercial treaty with Japan. They also congratulated Mr. Roosevelt on the abrogation of the American■lμpanose pact.

Following two mass anti-British meetings in Tokyo, crowds demonstrated in front of the British Embassy, and members of a procession carried banners: "Withdraw Craigie. the Enemy of Asia!"' Tlie police made several iirrests. The procession, after marching on the Embassy, at templed to rush in but came into conflict with hundreds of police. The British United Press correspondent at Hongkong reports that the Japanese arc increasingly bombing the (rade routes to Chtingshail and Macao with the object of cutting off food supplies to Hongkong. They have concentrated seven •ruuhoats and '.10 launches at Wangmoon to harass the sea lioinc supplies.

Anti-British commit tees have warned Britons to leave Tsianfu and Tsanpt'how by August 10. after which they will not be responsible for Britons' safety.

Kighteen Japanese bombers scored three direct hits on the American Baptist Memorial Hospital at Wuchow on Sunday. There were no casualties. The Lutheran United Mission at Coshan was also bombed, and six Chinese were killed.

Four thousand Chinese "puppet Government,-' troops are reported to have mutinied near Tsiujitao, killed six iilliiei-. and thi'il joined the Chinese Nationalist Aiiuv.

MUST BE CONSULTED. Dominion Views On Denouncing Japanese Treaty. PRELIMINARY PROCEDURE. (Received 1 p.m.) LONDON, July 31. "The Dominions must be consulted before it can be decided whether Britain should denounce her commercial treaty with Japan," declared, the Prime Minister. Mr. Chamberlain, speaking in the House of Commons.

Mr. Noel Haker (Lab., Derby) suggested an immediate, consultation with the object or paralleling the United States denunciation of the pact.

The Foreign Undcr-Secrctary, Mr. R. A. Butler, said the Dominions' must be consulted before placing an embargo on war supplies to Japan.

Replying to Mr. Xoel Baker, he repudiated the suggestion that Britain was not further supporting Chinese currencv.

FEAR OF SOVIET. Wealthy Chinese Fleeing From Manchukuo. BOMBING OF CITIES LIKELY. (Received 2.:)<> p.m.) LONDON. July 31. Trains from MaiK-hukuo are crowded with wealthy Chinese fearing that the Soviet will bomb Harbin. .Mukden and other cities, says a Peking message.

The Japanese Foreign Office spokesman in Tokyo announced to-day that the Soviet officials at Nicolaevsk. presumably acting on instructions from Moscow, had ordered the bailiffs to postpone the attachment of the Japanese North Sakhalin oil and coal properties, in defence of which Japan recently threatened to blockade the Russian coast.