The Waterbury Democrat., 1937-12-27
JAPAN MAKES
 NEW REGULATION
Continued from Page D

render their extra territorial rights, 50 fa ras offenses against the Japa- nesc armed forces are concerned.
 Ten Regulations
 It B prescribed the Japanese courts martial shall try persons who violate the regulations, which gro 10 in number and cover:
 1-Hostile acts against the Japa. nese forces; 2--eSpionage; 3--acts endangering or causing bodily harm to members of the Japanese forces; 4--acts designed to interfere with or destroy railroad, telegraphic or other communications employed by the Japanese forces including bridges, waterways, highways and so forth; 6--stealing or destroying armaments or munitions or other property of the Japanese forces; 0-destroying of electric or water systems; 7--iiso Of poisons or bac- teria to hamper Japanese forces; 8-all other activities designed to disturb the peace of the Japanese forces or to hamper thei ractivlties; 0--planning, iflgtigating or assisting in the activities described; 10-har. boring persons who engage in such activities.
 Japanese Fleet Sighted
 Dispatches from Hong Kong TO- ported today that . Japanese fleet of 20 vessels, including troop trans- ports, had been sighted at Macao, just below Hong King, Sunday, with many Japanese war planes over them.
 This was believed to mean that the Japanese might soon start their threatened drive to cut the railroad between Hong Kong and Canton, commercial capital Of south China.
 A drive on Canton would complete the JapaneSe campaign, SO that t covered ail China, north, central and south.
 JapaneBe soldiers operating iil Shantung province were reported to have almost isolated the port of Tsingtao, north of Shanghai, where Chinese burned 1i00,000,000 worth of Japanese mills.
 It was reported here that, ifi an advance on Tsingtao from inland, the Japanese had taken Tginan, cap. ital Of the province. But Japanese aS well as Chinese authorities said they did not believe thc' report. However, Admiral KiyOghi HAges gawa, JapaneBe navy commander in chief, announced yesterday that TslDgtao had been included in the Japanese blockade area, and foreign military experts here predicted the! tbe Chinese military forccg would to permit themselves to be trapped, withdraw at once, under orders not
 Japs Move Inland
 Completing their occupation Of IIangchow, on the coast below Shanghai, Japailcgc troops moved inland and occupied towns g0uth- west, west and northwest of the city. They rfep0rted little resistance by Chinese,
 The Russian embassy at HAnkow announced that Ivan Luganets- OreISky, new Russian atnbagsador to China, had arrived at LanchOw in 6 special Russian army airplane. He was expected to continue to Hankow. Previously, t had been reported CT. r0ne0tisiy that the aipb aSsadOr afs rived at HafikOW.
 Departure of the United States giinboat oahu for Nanking. with Consul John M, Allison afld Vice Consul James Kspey aboard, was postponed until tomorrow.
 4 British salvage vessel will sec company the Oahu and, continuing above Nanklng, will sec whether t E possible to raise the United States gtinb0at PaDay, sunk by Japanege aITpIane bombs The Oahu, sister ship Of the Panay, came here with wounded afId other survivors of the Attack.
 JaDaBese Are Pleased
 Further OfIlcia1 efforts t0 placAte tbe United States were not expected, Officials Of the foreign office and the army and navy departments were putting the fi1bhinE touches on c reply to the British regarding the LAdybIrd incident.
 Apparently the entire nation was pleased by Secretary Of DtAte c0gs dejl HuIIb acceptance Of JapaSleEe assurances aTId becatee Of GeneiAi gratitude some private commercial gestures iDsy be attempted.