JAPAN’S GRIP ON YANGTZE RIVER

Southland Times, Issue 23406, 13 January 1938, Page 5

JAPAN’S GRIP ON YANGTZE RIVER

Foreign Vessels Not Given Passage

MERCHANT TRAFFIC AT STANDSTILL

INTERFERENCE WITH FREE NAVIGATION

(United Press Assn.—Telegraph Copyright)

(Received January 12, 7.40 p.m.) LONDON, January 12.

It has become known in London that the Japanese naval staff recently notified the senior British naval officer at Shanghai that Japan would no longer permit the passage of non-Japanese merchantmen up the Yangtze river but would offer every encouragement to vessels at ports up the river to come down, says The Times. This interference with free navigation was justified by alleged dangers to shipping from Chinese mine-laying and military operations. The British Government cannot admit any right to interference with shipping on the Yangtze, but as it is not practicable to arrange convoys foreign merchantmen are advised not to attempt the upwards passage.

One British vessel followed H.M.S. Cricket upstream. Otherwise nonJapanese merchant traffic up the river has been brought to a standstill.

“HUSH-HUSH” POLICY IN TOKYO JAPAN DETERMINED ON COMPLETE VICTORY LONDON, January 11. The “hush-hush” policy in Tokyo has grown since the Imperial conference yesterday, but it is known that the Japanese Navy wants a formal declaration of war in .order to stop supplies from reaching China and that the Foreign Office sees complications in such a step. A new conscription law decrees two years’ service with the Colours. The Chancellor- (Mr Kaya) assured Cabinet that the country • was capable of financing protracted hostilities. The Tokyo correspondent of The Daily Telegraph says that the Emperor at the conference approved an unshakeable policy to overthrow Marshal Chiang Kai-shek, the Chinese Com-mander-in-Chief unless he sued for peace on Japan’s terms. It is clear that Japan is determined to wage war until China is powerless and Japanese supremacy unchallenged. Prolonged warfare is regarded as inevitable.

Mr Slflratogi, who is possibly the next Foreign Minister, outlined the vast scale of Japan’s aims and asserted that China should not have any army, as Japan would protect her from foreign aggression.

CHINA UNABLE TO PAY INTEREST TRADE STRANGLED BY WARFARE LONDON, January 11. The News Chronicle says that with her trade strangled by warfare, China announces her possible inability to pay interest on foreign debts. Mr Franklin Ho, Vice-Minister of Economics, told foreign journalists at Hankow that China would make the utmost effort to provide interest but if she were forced to cease payment the circumstances would justify her. British loans to China amount to £24,000,000 and American loans to a similar sum. Both are secured on the Chinese Customs revenue, which has not met the interest on the second half of 1937, an overdraft from the Central Bank of China meeting the deficit. Prospects are black because the North Chinese remittances are not arriving satisfactorily. Shanghai trade is likely to be paralysed when hostilities are extended to the southern ports. Mr Ho, however, believes that there is no immediate likelihood of the finances collapsing. JAPANESE IN CONTROL OF TSINGTAO FRIENDLY RELATIONS WITH GERMANS SHANGHAI, January 11. The Japanese have taken over the post' office, communications and Customs at Tsingtao, the treaty port in Shantung. They are pledged not to molest the Chinese railway corps who defended Japanese property. The Japanese are particularly cordial to the Germans, even extending greetings of “Heil Hitler!” Marshal Chiang Kai-shek has left Hankow for the Lunghai railway front. It is reported that the Japanese have captured Tsining and Weihsien. CHINESE JOIN HONG KONG DEFENCE CORPS HONG KONG, January 11. The Chinese have newly been declared eligible to join the Volunteer Defence Corps. This has resulted in an overwhelming enrolment. ITALIAN MISSION TO JAPAN ROME, January 11. A goodwill mission is shortly going to Japan. It will be composed of 15 leaders of fascist organizations.