OMINOUS WARNINGS SOUNDED

Timaru Herald, Volume CXLIII, Issue 20929, 7 January 1938, Page 7

OMINOUS WARNINGS SOUNDED

CONFIDENCE LOST IN JAPAN LEADING FINANCIERS ALARMED CHINESE ACTIVITY IN THE AIR Un: :cl Press Association—By Electric Tel egraph—Copyright (Received January 6, 8.30 p.m.) LONDON, January 6. The Tokio correspondent of “The Daily Telegraph” says: Ominous warnings of Japan’s financial condition are being sounded by Japanese business people and financiers, the most striking of Which was given by M. Kobayshl, president of the Tokio Electric Light Company, and one of the most powerful men in Japan’s financial and industrial world. He declares that the Government seems to think it can mobilise and distribute a national bonus so as to stabilise national finance, but he says that confidence is even more important and he fears this is threatened in Japan. He believes the Government would have difficulties in disposing of its proposed bond issues before March 31. “Tire stock market,” adds Mr Kobayshi, “so far has failed to reflect the war boom. This is because Japan’s financial circles have hot enough confidence in the Finance Ministry. Even a child knows that an adjustment of the international balance is an essential factor in maintaining Japan’s financial stability.”

CHINESE ACTIVITY IN THE AIR SUCCESS BY LIGHTNING RAIDS United Press Association—By Electric Telegraph—Copyright (Received January 6, 8.15 p.m.) HANKOW, January 6. Chinese bombing planes carried out two lightning raids on Wuhu aerodrome. They dropped 75 bombs, destroying a Japanese plane about to land and five others. JAPANESE LAND ADVANCE TWO ARMIES CONVERGING United Press Association—By Electric Telegraph—Copyright (Received January 6, 8.30 p.m.) HANKOW, January 6. Two Japanese armies converging on Schowfu, are each one hundred miles away. Success in Air Raids Japanese troops in Shantung continue to press on with the Chinese fleeing while they advance. North of Pukow they have reached Hwantl and Mapanshaw, 55 and 40 miles respectively from Pukow.

The Japanese claim that the air raid on Hankow destroyed 21 Chinese aeroplanes and devastated hangars, barracks and concrete runways. Two American airmen were killed when taking off from the Hankow military aerodrome. CHINESE NEARING HANGCHOW REPORTS OF JAPANESE RETIRING INVADERS DEFEATED AT PUYANG By Telegraph—Press Association WELLINGTON, January 6. The following cablegram has been received from Hankow by the Chinese Consul:— "Advancing from Fuyang, the Chinese reached Lukwortap, a few miles from the Hangchow railway station. The Japanese within Hangchow have retired to the outskirts of the city.

“On the Tsinput front, in the centre the Chinese have retired from Taian and taken up positions at Taikumkow. They hold Pingyumkow, on the left flank, and Suntai, on the right. “The Japanese, who threatened Puyang, on the border of Hopei and Honan, have been defeated, and are being pursued by the Chinese, who have recaptured Chinfeng and Nanloh, the Japanese retiring to Talming.” CRFETINGS TO JAPANESE ARMY NEW YEAR MESSAGE FROM BRITAIN United Press Association—By Electric Telegraph—Copyright (Received January 7, 1.30 .m.) TOKIO, January 6. The Dome! News Agency says: The British military attache (MajorGeneral Piggott) asked the Japanese War Minister to convey to the Emperor, who is a field-marshal in the British Army, New Year greetings for the Japanese Army on behalf of the officers and men of the British Army. Sir Robert Craigle cabled the greetings to Mr K. Hirota (Foreign Secretary). The reason has not been divulged.