THE FAR EAST

Waikato Times, Volume 127, Issue 21195, 19 August 1940, Page 2

THE FAR EAST

NEW DEFENCE SCHEME DEMANDS BY JAPAN CRITICISM OF AMERICA (United Press Assn.—Elec. Tel. Copyright) LONDON, August 17 Unless the Japanese take drastic action, the British authorities, about next Thursday, will formally hand, over to the United States marines all the former British sectors in Shanghai, except the west area, which they will hand over to Japan. Meanwhile, the Japanese Army organ, the Hsin Shun Pao, said the Japanese would ask Italian co-opera-tion to obtain a new defence scheme, aimed at giving the Japanese all the British defence sectors in addition to those held by the French and Italians, if the forces of the latter countries should be withdrawn, as Japan desires. The Hsin Shun Pao concluded its article with a vigorous denunciation of the United States. The Japanese naval spokesman, according to a message from Shanghai, said that the Japanese authorities demand “as a matter of course’’ the transference of the entire British defence sector to the Japanese. He indicated that the Japanese authorities would not agree to any other settlement. He said he believed no arrangement or scheme without the consent of the Japanese authorities was practical. Japanese gendarmes, co-operating with the French police, raided a i Chinese estate in the French Concession at Shanghai and seized 16 lorry-loads of radio equipment reported to be the property of the Chungking (Chinese Government) authorities. France Refuses Demands It is stated from Hanoi that General Decoux, with the Vichy Government’s approval, has refused the Japanese demands, including the right of passage for troops, the occupation of some aerodromes and the use of naval bases. As a result Japan has renewed her demands, and the Vichy Government is consulting the Franco-German Armistice Commission at Wiesbaden. Apprehension is growing as increasing numbers of Japanese arrive to engage in surveying the country. It is stated from Vichy that the authorities in Indo-China have protested to the Chungking Government against an attempt by Chinese forces to cross the frontier to Indo-China. The attack was repulsed. The representative of the Dome! news agency at Hongkong says five Siamese divisions are reported to be concentrating on the French IndoChina border, on account of which Indo-China is also concentrating forces and constructing defence facilities. He ascribed the Siamese action to renewed activities demanding the return of former territory from IndoChina.

The Japanese Government has decided to finance the Imperial Silk Yam Company with a 30.000.000yen fund through the Industrial Bank.for purchasing raw silk in an effort to push exports as well as maintain the official price of 1350 yen a bale.