The Waterbury Democrat., 1937-07-19
China Refuses To
 ObeyJapan Demand
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troop movements were but a gesture in self defense; that China sought only peace and friendship.
 It constituted a tacit turn down of Japans' demand for immediate ca- putulation.
 Settlement of questions of local nature, susceptible of adjustment on the spot, shall be subject to the sanc- ton of the Chinese national govern ment," the note said.
 Polite Rebuff
 This statement was a further po- lite rebuff. Japan had demanded unqualifiedly that all matters per- taining to the Peiping incident should be settled direct with local authorities in the Peiping- -Tientsin area, without recourse to the na- tional government.
 Japan was left with no recourse but to postpone her verbal ultima tum or bear the onus of an attack in force.
 BY EARL LEAF
 United Press Staff Correspondent)
 Tientsin, July 19-(UP)-United States marines of the embassy guard at Peiping were sent through the city today instructing American cit- izens how and where to concentrate in event of an outbreak of formal hostilities between Japan and Chi na.
 It was arranged that, on the out break of an emergency, signal lights should be flashed from the embas- sy radio tower to warn all Amer jeans to make for their concentra- tion point, and put themselves un- der the protection of the marines.
 The dramatic order of American authorities came after the tempo rary break down of negotiations be- tween Chinese officials and Japa- nese army leaders.
 Japanese Anger Mounts
 The Japanese, their anger mount ing because of bland Chinese delay in lowing to their demands-and their anxiety mounting because of Q continued concentration of Chi- nese troops in the north-seized the main Tientsin post office, began censoring mails and started a round up of Chinese newspaper men.
 One reason for their action was information that there are 50,000 Chinese regulars in the area about 100 miles south of Peiping.
 Foreign tension was spreading.
 French authorities, believing that the next step would be an attempt to seize the main telegraph office which is in the French concession announced that they would tolerate no such action.
 More Japanese Troops
 More Japanese troops poured into China and there was ominously in- creasing Japanese aviation activity over Hopei province.
 One Japanese plane was attacked by Chinese troops, Japanese author ities asserted, and returned the fire with its machine guns.
 There was an outbreak of fight ing late yesterday at Wanpinghsien, oOutilWSoV VI 1CApAA6 WAACAC tkAc original troop clashes occurred, and Chinese sources asserted a police man was killed and more than @ dozen other persons wounded in a Japanese attack.
 A bullet scared Japanese war plane arrived here after a recon naissance flight over Hopei pro- vince, watching Chinese troop movements. Its pilot said he was flying at 2,300 feet, observing sev- eral trainloads of troops, when he was fired on. He said he fired 300 shots in answer. The pilot report ed a huge" movement of Chinese troops northward.
 Indications were that as in 1885 there would be an agreement with in 6 day or two, and that the crisis would end-to leave both Chinese and Japanese angry and awaiting new and perhaps more serious trou- ble, as 1t was apparent that any settlement reached would be noth- ing more than Q patched up one.
 China Forced To Refuse
 Ruling, China. July 19--(UP)--