Evening star., 1938-02-26
NEW j. S..PR0TEST
HANDED TO JAPAN
Gauss Fights Sealing of
American Warehouse in
Foreign Area.
By the Associated Press.

tested today against japanese sealing
Of an American-owned warehouse in
the heart of the International Settle
ment.
The protest. filed with japanese
Consul General Suemasa Okomoto,
raised vital issues concerning foreign
property rights in the Settlement.
Japanese gendarmes and consular
police precipitated the matter by seal
ing the warehouse of the Commercial
Express Co. Halt Of the premises was
occupied by United States naval
warehouse.
Since the International Settlement
presumably is neutral trritory, not in
volved in the undeclared war between
China and Japan, and Americans and
other treaty nationals enjoy the status
OF extra-territoriality, the japanese ac-
ton was regarded as serious assump-
ton of authority.
Settlement Not Occupied. e
Some persons felt that Japan was
verging on exercise of the rights and
privileges Of powers army Of occu-
patton, although the Japanese have
not actually occupied the settlement
or formally claimed It.
It was pointed out that il the jap
anese asserted they had the rights Of
an army OF occupation. that automat-
ically raised the question whether q
formal state Of war exists. There was
some speculation as to whether this
would bring before President Roosevelt
the matter of deciding If the neu-
trality act should be invoked.
Informed sources, however believed
the japanese were not desirous of
forcing a decision on the neutrality
issue. It was considered likely that an
amicable settlement could be arranged
This was the first time there had
been arbitrary sealing of American
property.
Major Battle Developing.
Meanwhile, major battle developed
at Iingshih in Shansi Province, where
100000 Chinese troops were struggling
to halt a sweeping japanese offensive
along the extreme western flank of the
Central China war front.
The japanese, stalled in their Gen.
tral China campaign by stubborn Chi
nese resistance along the Yellow River,
shifted their attack wide to the west
IN a flanking maneuver designed to
effect a crossing somewhere near the
great bend of the Yellow River.
Chinese military dispatches said de-
feat OF the Chinese in the Lingshih
battle probably would mean loss Of
Southern Shansi Province.
Air War Grows Severe.
Aerial warfare became more severe
as the Japanese, stung by an unprece-
dented bombing raid on Formosa, re-
taliated by attacking Chinese air bases
at Nanchang and other inland points.
The japanese Navy claimed Japa-
nese planes which raided Nanchang
shot down AZ of the so Chinese ships
which took the air against thern. The
japanese admitted losing only two
planes.
Chinese reports, however, said eight
japanese planes were destroyed. The
Chinese did not specify their own
losses or mention any airdrome dam
age.
Is Towns Reported Sacked.
PE1P1NG, China, Feb. 26 (P.-
japanese troops along the railway
southwest Of Peiping. taking drastic
action to check Chinese guerilla at
tacks. sacked and burned is villages
the past week, reliable foreign sources
said today.
The villages destroyed included the
Chinese Communist headquarters at
Wanhsien, west Of Paotingfu. Refugees
are flocking into railway towns by the
thousands as a result Of the guerilla
warfare.
The Chinese bands marrying Japa-
nese in the North China area daily
are destroying railway tracks and
small bridges. One train was wrecked.
foreign informants ascertained. but
casualties were not known.