SHANGHAI AREA

Otago Daily Times, Issue 23277, 23 August 1937, Page 9

SHANGHAI AREA

HAND-TO-HAND FIGHTING JAPANESE IN TIGHT CORNER THE BUND. SWEPT BY BULLETS FIRES IN SEVERAL DISTRICTS fUnited Press Association) (By Electric Telegraph—Copyright) SHANGHAI, Aug. 20. Buildings on the Bund were rocked when the Chinese shelled the Idzumo, many shells passing over foreign warships and sending the sailors below decks. Following the most intensive air raids yet, hand-to-hand fighting is raging in the east district. The Japanese are in a tight corner and are desperately battling to save their communications. Incendiary bombs set fire to many more buildings, a blazing oil factory at Pootung lighting up the night sky. Foreign buildings at Hongkew and Yangtsepoo are also ablaze, and amid the flames and dense smoke hand-to-hand fighting continues. The bullet-swept Bund is closed to pedestrians. Two Japanese bombers flew into the smoke pall and collided. An anti-aircraft shell of unknown origin landed on the deck of the United States flagship Augusta, killing one man and wounding 18. A Washington message states that President Eoosevelt announced that action regarding the Augusta episode had been delegated to the American officials at Shanghai. He added that such an occurrence was almost inevitable in the circumstances. THE JAPANESE LINES VULNERABLE ON FLANKS LONDON, Aug. 20. The Chinese Embassy states that : the Japanese lines in Shanghai are easily vulnerable on both flanks. The Japanese, in attempting to land again at Pootung, opposite Shanghai, were repulsed. The news from Shanghai is that, although the regulars have been reinforced by marines, the Japanese are falling back at several points in the Eastern Settlement, while barely holding their ground elsewhere. Fire is sweeping east of Shanghai on a half-mile front. The Chinese Embassy claims notable victories, having recovered t Shangtu, Changpeh, and other towns. , Tokio reports the Japanese Naval Air Force bombs struck Kiangwan Arsenal in the Nantao district of Shanghai, and Lunghwa aerodrome, Lunghwa railway, and the office of " the Kiapgwan ironworks. A Japanese landing party dispersed Chinese irregulars who set fire to a tobacco company's building m East Broadway. "* ' •;' ; ' Tokio also announces that strong Chinese detachments, '■ going north from Chbcbw, launched "a large-Scale attack 17 miles-'south of-;Changsin-tien, on the Peking-Shanghai railway, where they are steadily sur> rounding the Japanese, Lloyds have doubled the war risk at Shanghai and Yangtse ports and Have imposed ..a heavy increase at other ports. HONGKEW AND NORTH SHANGHAI UNDER! MARTIAL LAW '• SHANGHAI, Aug. .20. The Japanese have established martial law in t>.e vicinity of Hongkew and North Shanghai, where there are numerous important British enterprises. Armoured cars are patrolling the district, as it is feared that the Chinese are preparing a large-scale offensive thereabouts, while warships opened a heavy bombardment with the object of dislodging the Chinese from positions in Kiangwan. , ■ iu '' Chinese planes raided the Japanese lines, flying daringly low. They destroyed whole blocks of buildings. . The Japanese have placed a boom under the Garden bridge in Soochow Creek, bottling up all vessels therein. ;•• , The Powers rejected requests from China and Japan to move their warships five miles downstream. JAPANESE BOMBERS A RAID ON NANKING LONDON, Aug. 20. Japanese bombers raided Nanking during a thunderstorm, the thunder and lightning flashes increasing the terror. The Chinese Air Force announces a direct hit on a Japanese aircraft carrier at Woosung. PROPOSED NEUTRAL ZONE ATTITUDE OF JAPANESE (British Official Wireless) RUGBY, Aug. 20. The attitude of the Japanese Government to the British proposals for restoring peace in Shanghai remains in doubt until the final Japanese reply has been received in London, but press reports, which indicate marked hesitation on the part of the Tokio Government in accepting, have caused lively disappointment in British official circles. The disorders in which the Chinese and Japanese forces are involved at Shanghai are causing a mounting total of casualties among innocent civilians and damage to property of other Powers, and even threatens to disorganise the commercial and" financial centre of activities, which it is to the interest of all Powers to maintain. These disorders, moreover, are local in origin, and contradict the declared policies of the Japanese and Chinese Governments, which are to seek a peaceful solution of outstanding difficulties between them. ■' The merit of the plan for the withdrawal of Japanese and Chinese m'li'aty forces from the Shanghai zone is that it takes advantage of an essential fact about the situation as neutral observers on the spot see it, namely, that the Chinese have no reason for attacking any part of the International Settlement once the Japanese reinforcements, military and naval, are withdrawn, and that the Japanese have no need of these reinforcements once the safety of their nationals is secured. The only remaining danger to the latter after the withdrawal of the Chinese

military forces would be from irresponsible elements which the settlement police, reinforced by contingents of British and other neutral troops, could easily control. Reports from Shanghai indicate widespread destruction of property in the area north of Soochow Creek by bombardment. The Chinese and Japanese Governments are being informed that the British Government must reserve all its rights as regards holding those Governments responsible for. damage or loss to either life or property that may be incurred by British subjects as the result of the action of the Chinese and Japanese forces. A protest is also being made to the Japanese Government regarding British properties in the International Settlement which have been occupied by Japanese forces, and the Japanese Government is being informed that, even if occupation can be justified, compensation for such occupation will be payable, in addition to compensation which may result from any loss or damage, and that claims will, therefore, be presented in due course. CHOLERA IN HONGKONG

DEATH RATE DIMINISHING HONGKONG, Aug. 20. The death rate from cholera is diminishing. The authorities believe that the peak has been reached. SHELL ON AMERICAN WARSHIP "AN UNFORTUNATE ACCIDENT" NEW YORK, Aug. 20. (Received Aug. 22, at 5.5 p.m.) The New York Times Washington correspondent says that President Roosevelt and Mr Cordell Hull both stress that the episode will be treated as an unfortuntae accident, but not affecting the American policy in the Far Eastern crisis Various Senators expressed differing views. Senators Clark and Nye demanded the immediate application of the neutrality law and the withdrawal of all Americans, including military and naval forces, from the danger zone. Senator Pittman supported President Roosevelt, and Senator Borah said he saw little that could be done. WORK OF EVACUATION FINE WORK BY SAILORS HONGKONG, Aug. 21. (Received Aug. 22, at 10 p.m.) So far 884 women and 423 children have arrived at Hongkong. They are full of admiration for the British sailors for the handling of the evacuation. JAPANESE CRUISER IDZUMO BOMBARDMENT OF POOTUNG SHANGHAI, Aug. 21. (Received Aug. 22, at 10 p.m.) The cruiser Idzumo, at point-blank range, bombarded the Chinese 55th Division at Pootung throughout the day. A fierce air battle occurred over Soochow, the Japanese intercepting the Chinese squadron destined for Shanghai. So far 12,800 foreign refugees have been evacuated. The British United Press representative estimates the fire damago to British property in Shanghai at £30,000,000. - , _. . American instructors at the Chinese Aviation School have resigned because they do not desire even the remotest connection with the SinoJapanese conflict. American employees of the China National Aviation Corporation have resigned pending the restoration of peace. The' Chinese claim to have repulsed several Japanese attacks on the Nankow front. BRITISH TROOPS FROM INDIA SIMLA, Aug. 21: (Received Aug. 22, at 10 p.m.) The Fifth and Sixth Rajputana Rifles and the Fourth and Nineteenth Hyderabad Regiment have been ordered to the Far East for security duties. BRITISH INTERESTS JAPAN'S IDEA~OF POSITION TOKIO, Aug. 21. (Received Aug. 22, at 8 p.m.) The counsellor at the Japanese Embassy in Nanking says diplomatic negotiations are out of the question. The Emperor received the Premier, who reported the situation. The Asahi declares that if Britain desires protection of her rights and interests in Shanghai she should cooperate with Japan. CHINESE THRUSTS ON SHANGHAI HARASSING "BUT INDECISIVE SHANGHAI, Aug. 21. (Received Aug. 22, at 8 p.m.) As time elapses the Chinese chance of dislodging the Japanese from Shanghai decreases. Observers are of the opinion that they have left it a week too late. The Chinese thrusts are harassing but indecisive, while systematic bombing of railway lines by the Japanese hampers the arrivals of Chinese reinforcements. Japan can now land troops freely at Japanese wharves on the Whangpoo River in order to pursue the main objective. Twenty thousand Japanese troops have arrived at Teintsin from Taku. An air base has been established at Tsungming Island, in the Yangtse Estuary, thus increasing the already marked Japanese aerial superiority. The Japanese resumed the aerial bombardment of Chinese' positions near the north station, and Chinese: artillery forts in Pootung. The Japanese occupied heights west of Liangsiang and south-west of Peking, after a three-day engagement. . New and larger fires, with a front of at least a mile, have broken out 300 yards north-west of Hongkew police station, north of the Bata Shoe Company's property, and behind Astor House. The fires in the eastern commercial district cannot be controlled. The area north of Soochow Creek is an inferno. It has been ascertained that the Anglo-American Company's installations at Goffe Island are not ablaze. The outbreak was in the Britishowned Asiatic Petroleum Company'*. Yangtsepoo depot. A number of employees, 'including the director, "fought a rirt; throughout the night in the warehouses of the Mackenzie Company, and succeeded in controlling the flames, only one building being destroyed. Meanwhile artillery and air dueis continue with indeterminate results. The Chinese occupied a dock belonging to the British Engineering Works, and opened fire on the Japanese position, whereupon the

Japanese sought permission from the British Consul-general to attack them. , , The Soviet Consulate complains that Japanese arrested and beat Chinese servants when they attempted to enter the Consulate on August 17. DAMAGE TO BRITISH PROPERTY .DEMANDS FOR COMPENSATION LONDON, Aug. 21. (Received Aug. 22, at 8 p.m.) The Associated Press has been informed that the Foreign Office legal experts are considering the problems arising from the demands for compensation from damage to British property. As soon as the necessary guiding principles are established these will be communicated to the Consul-general in Shanghai, upon whose advice the claims will be made. It is estimated that £180,000,000 of British capital is invested in Shanghai, the bulk of which is in the Yangtsepoo area, where the fighting is fiercest. JAPANESE PLANES SHOT DOWN NANKING, Aug. 21. (Received Aug. 22, at 8 p.m.) Four Japanese planes were shot down when raiding Nanking. CHINESE CURRENCY CHANGE PLANNED BY JAPAN TOKIO, Aug. 20. Japan plans to drive out Chinese currency from North China, and intends to circulate 30,000,000 yen. CHINESE VERSION OF POSITION (Peh United Press Association) WELLINGTON, Aug. 21. The Chinese Consul received the following cablegram from Nanking this morning:— The Chinese made further gains at Shanghai, where the Japanese forces have been driven into the International Settlement north of Soochow Creek. The Japanese lines are now pressed into a long arc shape, and, therefore, both flanks are vulnerable. Thus compressed, the Japanese guns have been rendered ineffective, and the fighting is now mostly hand to hand. The Chinese advanced yesterday and occupied the Sun Sing cotton mills. The Japanese attempted again to land at Pootung, but were repulsed. Heavy Japanese reinforcements have arrived in North China, and a clash is reported at Taku. Resuming the offensive, the Chinese troops at Shanghai occupied ground near the Japanese barracks. Under heavy Chinese artillery fire the Japanese appeared gradually to fall back on new positions hurriedly erected. Chinese troops occupied the wayside wharves last night, thus cutting cornmunications between the Japanese forces at Yangtse-poo and the North Szechuen road areas. Having entered the north-eastern sector of the International Settlement, the base of the Japanese operations, the Chinese troops are confident that they will soon deliver a coup de grace. The Japanese made two desperate attempts to land reinforcements at Liuho and Kiangwan, but were repulsed. Twenty Chinese planes bombed Japanese warships off Woosung, setting fire to two gunboats and a submarine. At present 46 Japanese warships are concentrated at Shanghai, including 5 cruisers, 25 destroyers, 2 aircraft carriers and a Tied Cross unit. Nanziang, 15 kilometres from Shanghai, was bombed yesterday, one doctor and two convalescents being seriously injured. The Japanese are rushing three army divisions to Shanghai, but a landing is difficult in view of the loss of the wayside wharves. Japanese planes made two raids on Nanking, dropping 10 bombs, but only two exploded, doing practically no damage. Four of the bombers were shot down. Japanese reconnaisance flights over Yochow, in Northern Hunan, indicate that aerial warfare is likely to be extended to Central China.