JAPAN’S NEED OF WOOL

Press, Volume LXXV, Issue 22656, 10 March 1939, Page 11

JAPAN’S NEED OF WOOL

Three-Year Plan Proposed 240 PER CENT. INCREASE AIMED AT (united press association—copyright.) (Received March 9, 11 p.m.) TOKYO, March 9. The Domei News Agency says, that Cabinet’s Planning Board revealed that a three-year plan would begin on April 1 to expand Chinese, Manchurian and Japanese production, in which wool would be increased 240 per cent.

EXCHANGE FUND IN CHINA

GUARANTEE GIVEN BY BRITAIN MAINTENANCE OF FINANCIAL RELATIONS (BRITISH OFFICIAL WIRELESS.) RUGBY, March 8. Announcing in the House of Commons that the Government had agreed to give a £5,000,000 guarantee which would enable the Hong Kong and Shanghai Banking Corporation and the Chartered Bank of Tndia, Australia and China to participate in the Stabilisation Fund for the support of Chinese currency, the Chancellor of the Exchequer, Sir John Simon, said: “The stability of the Chinese dollar is a matter _ of great importance to Britain in view of our financial and economic relations with China. “China achieved considerable success in her efforts to maintain the convertibility of Chinese currency for trade transactions, to limit _ its depreciation in exchange against sterling, and to keep the rate reasonably stable for many months'. “China informed Britain it intended to continue its existing monetary policy and that as part of that policy it desires to establish a Stabilisation Fund of £10,000,000 sterling in addition to its other reserves. “China invited two Chinese Government banks to subscribe a total of £5,000,000 to the fund and the two British banks, namely the Hong Kong and Shanghai Bank and the Chartered Bank, to subscribe a further’ £ 5,000,000 between them. “The British banks, agreed to subscribe these amounts subject to receiving an undertaking from the Treasury to reimburse them for any loss that might be incurred when the fund was wound up. “The arrangement would be that the fund would operate for 12 months but it could be continued for further periods of six months by agreement: If the necessity arose, however, the fund colild be wound up at any earlier time. “Britain would welcome the establishment of this Stabilisation Fund, the successful working of which would be of material assistance to British trade enterprise in China, and the Treasury has agreed, subject to legislative approval, to give to these banks the guarantee against loss for which they ask. “A bill is being prepared and I hope to present it early next week.”

use or poison . G'AS

JAPANESE BREAK CHINESE LINES

ALLEGATIONS MADE BY REFUGEES

(Received March 9, 8 p.m.)

LONDON, March 8,

The .Hong Kong correspondent of the “Daily Telegraph” says that Chinese wounded are pouring into Ichang from the Han river.

They allege the wholesale use of poison gas, which, combined with artillery and aeroplanes, lyoke the Chinese lines, permitting tfie Japanese to cross the Han river.

The loss of Chung Siang paved the way for the Japanese advance towards Ichang, threatening the isolation of the Chinese over a wide area at an elbow of the Yangtse.

Many towns are reported to have been set on fire, including San Yang Tien, which was razed. There was. incessant, heavy fighting in the Tienmen sector, where Japanese reinforcements prevented the Chinese from breaking through. The Chinese are continuing the drive south of the Yangtse within five miles of Yo Yang.

FASCIST STATEMENT OF JAPAN’S AIMS “ENDING IMPERIALIST INVASION BY BRITISH” LONDON, March 8. The Japanese Fascist leader, Mr Seigo Nakani, in a speech in Shanghai, said: “Japan aims at ending the Imperialist invasion of China by the British,, who, the moment the Japanese withdrew, would extend their influence.

“There is no need for Japan to worry because Britain, and France are not in apposition to send armies to the Far East.” The Minister for War (LieutenantGeneral Itagaki) replying to a question in the Diet, said that the Array had no difficulty in buying munitions abroad.