CANTON FRONT

Otago Daily Times, Issue 23689, 22 December 1938, Page 11

CANTON FRONT

CHINESE ATTACK EXPECTED JAPANESE DIGGING IN REPORTED PEACE OFFER (United Press Association) (By Electric Telegrapn—Copyright) LONDON. Dec. 20. The Hongkong correspondent of The Times says Chinese sources report that General Doihara has offered peace terms, the first condition being that China should recognise the independence of Manchukuo and Inner Mongolia and join the anti-Comintern Pact. Secondly, Marshal Chiang Kai-shek to take a brief holiday and resume office later; and, thirdly, v Japan to withdraw troops and restore to China the industrial and mining areas. The Japanese attitude is hardening as a result of the foreign loans, to China. It is stated that the opening of the Canton River must await settlement of the Yangtse dispute. The Japanese navy has resumed molestation of fishing junks near Hongkong, arresting 17 Chinese. The Japanese also bombed Canton suburbs without opposition from planes. A Chinese attack on Canton is expected at any time. The Japanese are digging trenches in the streets and erecting sandbag barriers. KWANGTUNG PROVINCE THE PUPPET GOVERNMENT HONGKONG, Dec. 20. Pang Tungwing, ex-commander of the Woosung forts, has been ceremonially installed as chairman of the Japanese Puppet Government in Kwangtung province. Luichunwing, ex-East River commander, has been appointed vice-chairman. The British and American Consuls were absent, journalists being the only foreigners present. A message from Tientsin states that the Japanese are reported to have banned imports into Japanesecontrolled China except from Japan. BRITONS IN TIENTSIN MEASURES FOR PROTECTION (British Official Wireless) RUGBY, Dec. 20. The British sloop Grimsby has been ordered to Tientsin to watch the safety and interests of British nationals, concern for which is felt in view of the coercive Japanese measures against the British and French concessions. THE MANCHURIAN BORDER JAPANESE TROOPS MASSING PEKING, Dec. 20. Anxiety over the Russo-Japanese situation led to the concentration of five Japanese divisions on the Manchurian border. They were withdrawn from Sinan, Hsuchow, Tsining, South Hopei, and Shansi. It is reported that this has caused temporary abandonment of the drive against Hanchow, for which reason 30,000 were drafted with the object of severing Sino-Russian communications.