DISORDERS IN SHANGHAI.

New Zealand Herald, Volume LXIX, Issue 21086, 21 January 1932, Page 9

DISORDERS IN SHANGHAI.

JAPANESE REPRISALS. VERY GRAVE SITUATION. CHINESE POLICEMAN KILLED. THREAT OF RETALIATION. By Telecrnph—Press Association—Copyright. (Received January 20, 11.35 p.m.) SHANGHAI. Jnn. 20. Serious disorders have occurred in the international settlement, where,an armed clash took place between a mob of Japanese civilians and the Chinese municipal police. It resulted in one Chinese policeman being killed and two wounded. Tho conflict followed a brutal attack upon five Japanese monks by Chinese workers on Monday. A number of Japanese civilians organised a party and burned a Chinese cotton factory, whose workers were responsible for the outrago on the monks. A very grave situation prevails, tho Chinese police threatening reprisals. MANCHURIA FIGHTING. TWO SERIOUS CLASHES. HEAVY JAPANESE LOSS. SHANGHAI. Jan. 19. While Japanese forces are occupying Manchuria, marking time and temporarily consolidating their position, they are battling against sporadic bandit attacks. Two serious clashes have resulted with heavy casualties to the Japanese, who were ambushed by Chinese irregulars in the vicinity of Chinsi. Tho Japanese garrison in th 9 walled city of New Chwangchen is now precariously situated and is desperately fighting 2000 bandits. A struggle for Harbin between the rival Chinese irregular armies is imminent. After several momentous conferences between Chinese bankers and leaders of the Nanking Government regarding the threatened bankruptcy of the country and a possible moratorium for domestic loans, it appears that the difficulties have been temporarily overcome with the announcement that the bankers are prepared to lend £1,000,000 a month, providing the bankers' representatives are permitted to participate in the distribution of this amount. The Government, however, is still unable to function properly owing to the continued absence of the President, Marshal Chiang Kai-Shek, the foreign secretary, Dr. C. T. Wang, Chmg-wei, and Hu Han-min, President of Cabinet, in spite of frantic efforts to persuade them to return to the capital. The decision regarding the proposed severance of diplomatic relations with Japan is awaiting the sanction of the absent leaders. Thus Manchuria has been subordinated to the present financial crisis. A message from Peking says that according to the Chinese press, the Central Government has decided to order the arrest, on a charge of sedition, of exEmperor Puyi and various prominent Manchu Chinese who are allegedly cooperating with tlie Japanese in the establishment of an independent Manchurian Republic, with Puyi as President.