JAPANESE STEP

Dominion, Volume 29, Issue 206, 28 May 1936, Page 9

JAPANESE STEP

Linking North China With Manchukuo MORE TROOPS ON WAY Move to Create Independent Currency By Telegraph—Press Assn. —Copyright. London, May 26. The “Sun-Herald” news agency says that Japan has taken the first overt step toward creating an independent currency in North China by making the Bank of Hopei the sole bank of issue in Hopei and Chahar. It is be lieved that Chinese Central Govern ment notes will be ousted, paving the way for the yen and linking North China with Mancbukuo. Meanwhile the Japanese are report ed to be mobilising the mightiest war machine they have ever established in Chinese territory in connection wita the probable annexation of the live northern provinces. Four transports conveying a large body of Japanese cavalry and infantry will reach China on May 29. Japan’s troops in North China will then be trebled.

The Chinese authorities fear ar: open campaign for the annexation of Hopei. Shantung, Chahar. Shansi and Suiyan to Manchukuo, enabling Japan to <estore the Emperior of Mancbukuo to the Imperial Palace at Peking, where he would rule a vast territory from the Yellow River to the Siberian frontier under Japanese tutelage.

The so-called autonomy movement in North China, which was at one time expected to lead to the creation of an autonomous regime embracing the five provinces mentioned above, and which was supported by the Japanese army, resulted in the appointment in December of a semi-autonomous administration in two of the provinces, Hopei and Chahar. The new Hopei-Chtihar Political Council includes a majority of pro-Japanese members.