BULLION DISPUTE

Gisborne Herald, Volume LXVI, Issue 20003, 31 July 1939, Page 5

BULLION DISPUTE

CHINESE SILVER DEMANDS IN TOKIO HOSTILITY TO BRITAIN TIENTSIN AND PEKIN NEW MOVE IN SHANGHAI (Elec. Tel. Copyright—United Press Assn.) (Reed. July 31, 10 a.m.) LONDON, July 30. Reports from Tokio stated yesterday that a sub-committee of two Britons and two Japanese lrad been formed to consider currency and silver questions in order to- facilitate the general negotiations.

Japan is demanding the forfeiture of Chinese silver bullion valued, at over £ 1.000,000 held in the Tientsin banks and also the exclusion of Chinese currency.

The British Ambassador, Sir Robert Cra-igio, is reported to be firm in bis attitude to both demands, which is .he first indication of British stiffening. A Tientsin report states that the Japanese are intensifying the amtl3ritish boycott and have urged Chinese residents ito move out from the concession. The Japanese organised further street demonstrations. Pekin reports a renewed flaring up jf anti-British feeling in the city, which is plastered l with insulting posters British Barricades Removed A message from Shanghai states that the Japanese, without warning, to-day moved westward between North. Creek and North Station, encroaching on the British defence sector of the International Settlement. The Japanese removed the British barricades and rebuilt their own 50 yards beyond the British post. The British retired, -but later reoecupied the original blockhouse. The Japanese are not manning the new -barricades and therefore there are no signs of friction. They excused the action on the grounds of a

health inspection of Chinese no man’s land.

Thousands of Chinese rushed in a panic into the British area as the Japanese advanced. The Independent Cable Service reports that guerillas dynamited the Shianghaa-N-anking ' railway, 100 miles from -Shanghai, cutting off the Japanjse -communication between these cities..

It is reported from Hong Kong that .he Japanese were driven off from .he Wangmoon district by 'forces under General Chang Wai -Chang. \fter shelling by Japanese warships, urther attempts' to land were made, out all were repulsed