NATIONALS ARE LEAVING CHINA

Hawke's Bay Herald-Tribune, Issue 181, 18 August 1937, Page 5

NATIONALS ARE LEAVING CHINA

— Per Press Assoei$tion-

Nanking Reported to Have Arranged Arms Supply SAFETY OF FOREIGN SETTLEMENTS

(By Telegraph-

-Copyright).

/Received 18, 8.45 a.m.) LONDON, Aug. 17. The Times correspondent at Tokio reports tliat except at Amoy, Foochow, Tsingtau aiid Shanghai all tlie Japanese in China have Jjeen withdrawn. Such extensive precautions have not previously been deemed necessary, thus indieating that Japan's effort will be oii a Inrge scale. The Government is also preparing to establish ministerial control of imports, capital investments and consumption of law materials. The exchange will be maintained at the present ' level and interest rates kept low. Similar measures are being. apjplied to Manchukuo. • A Vienna message says it is reported that the Chinese Finance Mmister, Dr. Kung, recently visited Prague and concluded a £10,000,000 credit with the Skoda Steelworks (the big Czechoilovakian armament concern). It is stated that the contracts inxlude weapons and gasmasks. A message from Shanghai sates that the Japanese ConsulateGeneral here has been reduced to ruins by Chinese bombs, but the oflScials refuse to quit. The Japanese Cabinet again met this morning. Mr. Sugiyama reported that the Chinese Central Government troops were continuing to advance in North China. The main body liad eoncentratei on Paoting and Tsangchow. Cabinet has fixed September 3 for the xeassembly of the Diet, when measnres will be submitted placing the country on a war footing. A War Offi.ce communique reports that the gunpowder factory at Uji, in the Kyoto prefecture, exploded last night. Twenty-two were injiired and one workshop, nine warehonses and three honses were destroyed. The diplomatic -correspondent of the Daily Telegraph states that England, France and America have made renewed representations to both Nanking and Tokio against the risks of air action near the Jnternational Settlement. China replied that if Japan intends to make the Settlement a - 'base of operations against her she cannot undertake to respect its integrity. Japan contends fliat to refrain from military operations there wonld bo tantamonnt to abandoning her nationals.