Evening star., 1938-12-26
|Sino-Japanese
Peace Talks
Rumored
Former High Official
Reported Carrying
Terms to Hong Kong
By the Associated Press.

SHANGHAI, Dec. 26.-The possi-
bility of discussions designed to ef-
feet Chinese-Japanese truce arose
today when well-informed foreign
sources disclosed that Wang Ching
wei, former president of the Chinese
executive yuan, was planning to
meet japanese representatives on a
visit to Hong Kong.
Wang's dparture from Chungking,
Chinas' temporary capital, resulted
in numerous unconfirmed rumors
that he was carrying truce terms
either on behalf of Generalissimo
Chang Kai-shek or independently
in an effort to effect a peace that
would make him head of Japanese
sponsored government.
Japanese sources reported there
was split between the generals
simo and Wang because of growing
Communist influence in the Chinese
government.
Advocate of Peace.
Wang'S exact whereabouts re-
mained mystery. He was expected
to arrive in Hong Kong after a
journey from Chungking, by way of
French Indo-China. AS head of the
so-called peace party" Wang is
known to be an advocate of peace
with Japan.
The Hong Kong China Morning
| Post expressed doubt that China
would negotiate with Japan on the
basis of terms outlined publicly by
Premier Prince Fumimaro Konoye.
The newspaper drew an inference,
however, that there may be "paral-
lei secret terms more favorable to
China-terms perhaps partially in
spired by third parties to whom
China might seem helpful as an
ally or neutral, but which China
might have been encouraged to de-
cline
Chief Chinese Cities Bombed.
japanese bmbers Systematically
raided important Chinese cities in
three provinces Christmas Day.
At Kweilin, capital of Kwangsi
Province. 100 houses were destroyed
and a direct hit demolished dug
out on the grounds of the Baptist
| Church.
Wuchow, strategic defense point
blocking japanese invasion of
Kwangsi Province, again was bonn
parded from the air.
Two persons were killed, seven
others wounded and 10 houses de-
stroyed in an air raid on Sian, capi-
tai of Shensi Province, straddling
the main trade route between China
and Soviet Russia.
Changteh, in Human Province,
base for Chinese resistance to a
Japanese attempt to swing around
Tungting Lake, the largest in China,
also was raided.
Monocacy at Shanghai.
The United States gunboat Mo-
nocacy, which had been marooned
by the war since last June at Kiu-
kiang, $50 miles up the Yangtze
River, arrived at Shanghai.
Chungking, Chinese provincial
capital, spent Christmas celebrating
the second anniversary of the re-
lease of Generalissimo Chang Kai-
Shek from Sian, Chinese Communist
capital" with a three-hour parade
and speechmaking.
Fifteen thousands soldiers, politi-
cal workers, police, trade unions and
students maSsed at the city sports
arena to hear local army officers ex-
press their satisfaction that the
generalissimo was released two years
ago when he was kidnapped by
Marshal Chang Hsue-Liang. They
urged continued support of Chang
and prolonged resistance to the in
vasion by Japan.
Thousands participated in a torch
light procession and chanted Down
With Japan" while planes droned
overhead.
Trouble With Russia Denied.
At Peiping Japanese army
spokesman said the appearance of
the Soviet Russian flag atop 165-
foot towers on the Russian side of
the Siberian -Manchoukuo border
had led to erroneous reports of new
tension in the disputed area. He
said that because of the height of
the towers, erected about 200 yards
from Changkufeng Hill, center of
the disputed zone, last August when
japanese and Soviet Russians
clashed, the hammer and sickle
banner was visible from the Man
choukuo side, but reiterated there
had been no new friction, adding
that both japanese and Russians
were faithfully observing terms of
the truce.
The Toxic newspaper Yomiuri re-
ported that Japanese shipping
firm, which it did not name, was
negotiating for the purchase of five
American freighters to bolster
Japan's merchant marine, particu-
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