FAR EAST CONFLICT

Evening Star, Issue 23723, 2 November 1940, Page 12

FAR EAST CONFLICT

JAPANESE WITHDRAW FRDM KWANGSI DEPARTURE OF TROOPS FROM WHOLE PROVINCE LONDON, October 31. A Hanoi report states that the Japanese have abandoned Kwangsi province. Nearly 7,000 troops have already sailed from Haiphong for an undisclosed destination. Great fires throughout Ichang are believed to portend Japanese evacuation of that city, an important Yangtse port at the gateway to the Szechuan Province.

“THE VICIOUS SPIRAL”

RISING PRICES AND COSTS BIG INCREASES REGISTERED LONDON, November 1. (Received November 2, at noon.) The Ministry of Shipping announced that homeward freight rates are being increased by 15 per cent, on December 1, tiie whole increase going to the Government. It is due to longer voyages and slightly higher insurance and fuel charges. Wholesale prices in the United Kingdom reached a new high level in October. Food prices have incx-eased by 46.7 per cent, since the outbreak of the war and materials 37.2 per cent. The spiral of rising prices and rising costs has received a fresh twist. First there was an announcement of a 6 per cent, rise in railway charges, then a 13 per cent, increase in steel prices, a 15 per cent, rise in homeward shipping rates, and' finally a further jump in the wholesale prices indices. City businessmen expressed the opinion that there were bound to be further price rises. Ever-increasing official intervention still leaves the country far from being a “ closed economy.” It is impossible to control completely the price system, but it is considered that there should be a stone-walling policy of resisting every' increase which cannot fully justify itself. This policy, persistently pursued, would harness inflation. Stock markets generally are subdued on the Balkan developments, but the undertone is firm. Reinvestment funds released by the requisitioning of Canadian securities have already benefited New Zealand and Australian stocks.

SECRET MISSION

AMERICAN NEUTRALITY PATROL DESTROYER REINFORCEMENTS NEW YORK, November 1. (Received November 2, at 11.30 a.m.) The entire neutrality patrol operating from Key West is at sea on a secret mission. Officials decline to comment on the sudden sailings of three additional destroyers on October 31, which are believed to be joining the five destroyers, one seaplane tender, and five bombing planes which left earlier. BRITISH CONVOY SHELLED ENEMY LARGE LONG-RANGE GUNS IN ACTION (British Official Wireless.) RUGBY, November 1. (Received November 2, at 11.20 a.m.) Large long-range guns mounted on the French coast shelled a number of 'British vessels in the Straits of Dover this afternoon, according to agency reports. The Nazis were using at least two batteries, one near Cap Gris Nez and the other further east in tli£ direction of Calais. While the bombardment was in progress the Germans put down a smoke screen a little to the east of Cap Gris Nez. While the cross-Channel bombardment was taking place, the ships which were the objective of the German bombardment proceeded west through the shell-tossed sea. One thousand people watched from the English coast. Dover’s new shelling sirens sounded. One hundred shells were fired in the first three-quarters of an hour. The ships were undamaged. British longrange guns answered the Gormans’ bombardment, which ceased after an hour. ATTACK FROM AIR (By Radio.) DAVENTRY, November 2, Nineteen dive-bombing Stukas attacked a convoy of five small British ships in the English Channel. Fifty bombs were dropped, but when the smoke cleared the vessels were seen to be proceeding, apparently unharmed. A second air attack was then launched by the Nazis, but this was broken up by Spitfires. NEW ZEALAND CASUALTIES [Per United Press Association.] WELLINGTON, November 2. The following official casualty list has been issued : Sergeant Douglas Owen Staadey, R.N.Z.A.F., died in hospital on October 27 from injuries received in a flying accident. His mother is Mrs W. 0. Stanley, of Tni street. Matainata. Sergeant Robert Older, R.N.Z.A.F., killed in aircraft accident. His mother lives in Warwickshire, England.