Sunday, June 15, 1930

Berlin:  Having been banned from wearing their uniforms (see June 12), nazis hold a march shirtless. 

Meanwhile, S. Parker Gilbert, Agent General for Reparations under the now-expiring Dawes Plan (predecessor of the Young Plan), makes his final report on Germany’s financial condition.  He sounds repeated warnings that Germany needs “immediate and radical” budgetary reform if the nation is to meet its obligations and gets its financial house in order.  Tax revenues have improved “to an extent far exceeding expectations of experts,” Gilbert says.  The main problem: the government spends too much.  “There is evidence of unwillingness on the part of both government and parliament squarely and promptly to face the situation by taking the necessary steps either to control expenditures or to provide adequate resources to cover them.”

Gilbert’s report further complains that the German government’s budget presentations are “ideally calculated to obscure the real position.”  Yet Gilbert says social expenditures have risen 458% over the past five years, from 259 million marks to 1.345 billion, as the nation has become more deeply involved in subsidizing social insurance funds.  Germany’s public debt increased 11% in the last year alone, to 10.353 billion marks.  Germany’s gross deficit for the 1929-30 budget of about 1.075 billion marks is the worst in years.

“When the experts of the Dawes Committee were called together at the beginning of 1924, Germany was on the point of collapse after an unprecedented period of inflation,” Gilbert’s report says.  “Germany’s credit has been re-established both at home and abroad, her industries have been reorganized and her productive capacity has been restored, and the general standard of living has greatly improved.  The Dawes Plan, as was its object, also cleared the way for complete and final settlement of the reparations problem, which is embodied in the Young Plan and the Hague agreements of Jan. 20, 1930.  The new plan is an act of confidence in the good faith and financial integrity of Germany, and Germany now has a definite task to perform on her own responsibility, without foreign supervision and without the transfer protection provided by the Dawes Plan.”

S. Parker Gilbert

Leipzig:  Armed nazis and communists clash in Eythra, a suburb, killing 1 and injuring 12. 

Vienna:  Waldemar Pabst, the German leader of Austria’s fascist Heimwehr paramilitary who faces deportation for revolutionary activities, loses his appeal to stay in the country and leaves on a plane for Venice. 

Meanwhile, in economic news, reports have unemployment in Austria 20% higher than a year ago.  Export trade has declined significantly. 

Washington:  President Herbert Hoover announces, as expected, that he will sign the tariff bill known as the Smoot-Hawley Act that has been making its way through Congress.  Representatives of Spain, France and Great Britain have all warned that if Hoover signs the bill into law, it will unleash retaliatory tariffs from their countries. 

China:  Manchurian warlord Zhang Xueliang has reportedly told northern rebel forces he will join the fighting against them unless they accept his offer to mediate between them and nationalist government head Chiang Kai-shek (see March 21).

Friday, June 6, 1930

Berlin: Chancellor Heinrich Bruening’s plan for saving Germany’s finances by taxing workers’ salaries, corporate directors’ fees and bachelors, runs into immediate trouble.  Several political parties publicly oppose it.  They and their allied press outlets predict not only that the measure will fail to pass the Reichstag, but that Bruening’s cabinet will fall over it.  Meanwhile, the Prussian Trade Minister’s monthly report on economic conditions in that state (which makes up nearly 60% of Germany) describes “almost universal depression.”

 

Tokyo:  Government officials are said to be apprehensive about developments in Tsinan in the Chinese civil war: 2,000 Japanese students are trapped there as fighting approaches.  Tsinan was the scene of a brutal attack in 1928, when southern rebels overrunning the city killed 30 Japanese nationals. 

Gomel, Ukraine:  Kulaks (rich peasants) outraged at continued soviet collectivization of their farms, set fire to the two largest collective farms in the district.  Sheds containing agricultural equipment and machinery are destroyed, leaving the collectives without the means to produce food.  

Monday, May 12, 1930

Vienna:  Prince Oscar von Hohenzollern, son of the former Kaiser of Germany, visits Austria’s nationalist Heimwehr paramilitary with 30 members of Germany’s Stahlhelm (also a nationalist paramilitary), of which Prince Oscar is a member.  The timing couldn’t be worse for Austrian Chancellor Johan Schober, trying to disarm such groups as he promised the League of Nations.  In the face of Schober’s intentions, the Heimwehr has announced it intends to hold parades every Sunday through the summer.

Tokyo:  Japan confirms it is sending 25 (not 30) military officers as trainers for China’s nationalist government military.  Chinese communists accuse Japan of meddling in China’s internal affairs.  Meanwhile, a group of reserve naval officers calls on Naval Minister Takarabe Takeshi to resign for the “unpardonable” act of agreeing to the London Naval Treaty.

Saturday, May 10, 1930

Tokyo:  Japan and China reportedly reach an agreement whereby 30 Japanese military officers will serve as instructors and organizers for the nationalist government’s forces in their civil war with communist rebels.  This comes as something of a surprise; many Chinese still bitterly resent the Japanese military for the Jinan Incident of May 1928, in which Japanese forces clashed with nationalist government troops on Chinese soil, causing thousands of casualties.

Friday, 4 April 1930: Zhang Xueliang Supports Chiang's Chinese Government

Shanghai:  The Nanking State Council, a body of Chiang Kai-shek’s nationalist government, approves a mandate for “the arrest and subjugation” of the leaders of the northern revolt (see Apr. 1) – tantamount to a declaration of war.  In a surprise move, however, warlord Zhang Xueliang, de facto ruler of Manchuria, is reported to have thrown his support behind the nationalist government.  He orders a squadron of gunboats to Shantung province and his troops to the Great Wall in support of Chiang’s government.  

Madrid:  More impact from the worldwide economic depression: Spain’s Finance Minister says the country will incur a deficit of the equivalent of US$23 million for 1930.

Washington:  Still more impact from the depression: President Herbert Hoover signs a $375 million road spending bill, intended to stimulate the economy.

Friday, 21 March 1930

Manchuria:  

Warlord Zhang Xueliang, effective ruler of Manchuria, offers his services as mediator between Chinese President Chiang Kai-shek and rebellious Governor Yen Hsishan of Shansi.  The threat of renewed civil war in China has been looming for weeks.

  

London:  

The French delegation appears to withdraw from the naval conference, having left for Paris for the weekend and announcing that they won’t be back.  Observers think it’s a ploy to try to wrest an 11^th hour concession out of either Italy (to give up its demand for naval parity with France) or England (for a naval deal that includes continental security).  But Great Britain, the U.S. and Japan evidently saw this coming, and reportedly have a three-way “fallback” pact they will go to work on.  It is expected that if France is out, Italy will be too, as Italy presumably would not agree to any limitations on naval power with France under no such obligation.

Chisinau, Romania:  

Russian and Romanian border guards get into a firefight on the Dniester River near here.  According to reports, the Russian guards board a boat on their side of the river, then cross over and attack the Romanian border post with hand grenades.  The Romanians respond with rifle fire.  One Romanian is killed and several Russians wounded.  No one knows a reason for the attack, but tensions relative to Russia are high in Romania, as the government says it has uncovered communist plots to attempt a coup in the country.

Elsewhere:

Moscow:  Crowds of Young Communists and Young Pioneers (a communist version of the boy scouts) converge on the Italian Embassy and hold protests against the Pope. 

Bogota:  Thousands of unemployed conduct a demonstration that devolves into a riot when police fire on the crowd.  Two are killed and at least 20 injured.

Saturday, 28 December 1929

China:  

Reports indicate that, in the wake of the Russian invasion of Manchuria and the recent flareup in China’s civil war, regional warlords are once again on the rise.  Yen Hsih-shan, for example, is in virtually unchallenged control of the Shansi province in northern China.  Nationalist government leader Chiang Kai-shek holds firm control only over a relatively modest portion of eastern China.

Berlin:  

The United States and Germany conclude negotiations for Germany to make war debt payments to the U.S. separate from the Young Plan.  The U.S. was interested in this deal to give it greater latitude relative to its participation in the Young Plan, and to circumvent some provision of the Young Plan that the U.S. perceived as favoring France’s repayments over others.

Friday, 27 December 1929

Washington:  

Secretary of State Henry Stimson releases a report clearing Italian officials and residents in the United States of inappropriate activity relative to fascism.  He also expresses appreciation to the Fascist League of North America for disbanding.  “The investigation of the incidents referred to in the article in Harper’s magazine [see 26 October] has been completed by this department, and it has not revealed any activities on the part of any resident in this country of Italian extraction or on the part of any Italian officials which were directed against this government or against its institution.”

Rome:  

Pope Pius XI again complains of ill treatment by the fascist government of Italy, and of fascist interference in church publications.  During his Christmas address to the College of Cardinals, the Pope says the Italian government censors church newspapers, erects monuments which the church finds insulting, and has published a book allegedly “explaining” the relationship between church and state, but with which the church disagrees.  He says Catholic youth organizations are falsely accused of political involvement, but he knows this is not so, because the church has given them strict orders not to do so.  Meanwhile, the Pope says, “irreverent publications,” which attack the church, are given free reign to publish without hindrance.  The pope’s speech was not reported in Italy’s fascist newspapers. 

Tokyo:  

Police arrest 180 Korean students at area universities on charges of inciting recent student unrest in Korea as part of a “secret society of communist tendency.” 

Paris:  

Parliament approves a bill near the end of the session appropriating the equivalent of US$40 million in 1930 for construction of the line of forts proposed by Defense Minister Andre Maginot earlier this year, to protect France in the direction of Germany.  The engineering section of the army will get roughly 75% of the funds, which is itself only a portion of the estimated 3 billion francs the government agreed would need to be spent on the fortifications. 

China:  

China rejects Japan’s nomination of Torikichi Obata as its Minister to China.  China’s objection is based on the fact that Obata was Charge d’Affaires in Peking in 1915 when Japan presented China with its now-infamous “Twenty-One Demands,” which asked for humiliating concessions from China.  Japan is refusing to withdraw Obata’s nomination and has asked China if it is fully aware of the consequences potentially arising from the rejection.

Sunday, 22 December 1929: Germany's Liberty Law is Defeated at the Polls

Berlin:  

The Liberty Law is defeated at the polls as expected.  Nationalist politician Alfred Hugenberg’s proposed measure to reject the Young Plan in favor of ending war debt payments altogether is supported by less than 6 million voters, or 14%.  Still, that’s an increase from the roughly 10% who signed the petition earlier in the year that brought the measure up for a public vote, and it surprises some observers, who hadn’t expected the vote to be any higher.  Some places show marked increases: in Potsdam, for example, 45% more people vote for the Liberty Law than signed the plebiscite.  Dusseldorf, a socialist and centrist stronghold, sees a 35% increase in voters for the measure.  Pfalz and Wurttemberg report 100% increases. 

The measure, sometimes also referred to as the law “against the enslavement of the German people,” would also have prosecuted German officials who favored reparations payments, and would have renounced the war guilt clause in the Treaty of Versailles.  Voting is relatively quiet, although some clashes are reported in Berlin, including one polling place having all its ballots stolen at gunpoint. 

Khabarovsk, Russia:  

China and Russia sign an agreement to restore Russian control of the Chinese Eastern Railway, which was a major focus of a Russian invasion of Manchuria last month.  Prisoners will be exchanged, troops will be withdrawn, and China additionally says it will disband the White Russian military organizations operating in Manchuria. 

Manchuria:  

In a related development, Japan’s Rengo news agency reports that some 200 Japanese nationals living in Manchuria, who were caught in the fighting during Russia’s invasion, are suffering cold, hunger and other hazards in the wake of the conflict.  Meanwhile, in Shanghai, reports are that Japan’s Dempo news agency has displeased the nationalist government, allegedly spreading “ill reports specifically intended to undermine public confidence in the nationalist government,” according to a foreign office announcement, which also said the government had requested Japan’s legation in Peiking to “restrain these propagandists.”  The news agency’s telegraph and radio privileges are withdrawn. 

New York:  

The Fascist League of North America disbands.  The organization, which formed primarily in Italian-American communities around the country, received mixed reactions from the Italian government and was viewed with ambivalence by the U.S. government.  A Harper’s magazine article on Oct. 26, entitled “Mussolini’s American Empire,” claimed the FLNA was raising “soldiers for fascism.”  This caused an uproar nationwide, including Congressional calls for an investigation of the FLNA.

League President Count Ignazio Thaon di Revel says that the Harper’s article and ensuing calls for investigation had nothing to do with it.  Rather, the league’s work in “contributing to the enlightenment of the American public pertaining to the ideals of fascism” has been accomplished.

To view a photo of an FLNA march.

Tuesday, 17 December 1929

China:  Nationalist government leader Chiang Kai-Shek acknowledges publicly that his government was under serious duress during the recent troop rebellions.  Meanwhile, international observers in Manchuria report that the Chinese government’s control over Manchuria is almost nonexistent.  The province of Kirin, on the border with Korea, is reported to be virtually independent.  

Wednesday, 4 December 1929

Washington:  

Secretary of State Henry Stimson denounces Russia’s statement from yesterday that the United States’ urging Russia to settle the Manchuria dispute was “unfriendly.”  Stimson says rather the U.S. action was prompted by the seriousness with which the United States views the Kellogg-Briand Pact.  Stimson reiterates a belief that public opinion can be used as a tool for enforcing peace, and for encouraging compliance with the Kellogg-Briand Pact by the nations who signed it. 

Moscow:  

Yet Russia keeps up the war of words.  Maxim Litninoff, Acting Commissar of Foreign Affairs, advises “protectors of the Kellogg pact” to keep their attentions focused on their own parts of the world.  “The Soviet Union, unlike other countries, rejected extraterritorial rights and privileges in China, and it would seem strange why, under this circumstance, the Nanking and Mukden governments took the path of violence with provocations toward soviet Russia.  This is explained by the simple fact that the start and further encouragement of actions of the Nanking government originated from the imperialistic camp.” 

Elsewhere: 

Shanghai:  Meanwhile the national government of China also issues a reply to the communiqué it, like Russia, received from the United States and other world powers, urging it to settle the Manchuria conflict peacefully.  The reply promises that, “apart from measures of self-protection and defense of territorial sovereignty against external invasions, China would observe her obligations under the pact.”

China:  The troop rebellions in the civil war grow more serious.  Reports say the number of mutinous troops in Pukow is 15,000, and they’ve headed north after looting the city.  Meanwhile, communist rebels have reportedly killed 100 people and looted the city of Kanchow (Ganzhou), in southern China.

Berlin:  The fallout from Alfred Hugenberg’s Liberty Law initiative continues: 8 more German Nationalist People’s Party delegates in the Reichstag resign, including the party chairman, joining the six who resigned yesterday in protest of Hugenberg’s leadership.  Ten more are expected to follow soon.  

Tuesday, 3 December 1929

Berlin:  

The political fallout begins for nationalist political leader Alfred Hugenberg over his failed Liberty Law* initiative.  Six Reichstag delegates from his German National People’s Party resign from the party in protest over Hugenberg’s leadership, which has been driving the party increasingly nationalist.  This follows the split already evident last week, when some of his own party’s members voted against his proposed Liberty Law.  But Hugenberg is also being excoriated from the even more radically nationalist Adolf Hitler, leader of the national socialists.  

Russia: 

Nikolsk-Ussurlisky: Russian and Manchurian officials sign an agreement formally ending fighting in the Russian invasion of Manchuria.  According to dispatches, joint control of the Chinese Eastern Railway will be reinstated.  It’s still not clear what role the national government of China has in this agreement, if any, nor what recognition it will give the agreement, if any . . . nor that it even matters, given the central government’s tenuous-at-best rule in Manchuria. 

Moscow:  Meanwhile, the soviet government informs the French government (which is acting as the mediator between the United States and Soviet Union, since the two countries have no diplomatic relations) that it considers “unfriendly” the recent U.S. advice that Russia keep in mind the Kellogg-Briand Pact which it signed, and settle the Manchuria dispute peacefully.

 

“The Union of Soviet Socialist Republics, from the first day of its existence, has pursued a policy of peace, and unlike other powers has never resorted to military action except as a necessary step for defense, due to direct attack on the union or armed intervention in its internal affairs.  The Soviet Union has consistently pursued this policy and intends to pursue it independently of the Paris pact for abolition of war.”  The response goes on to outline Russia’s case that it was China’s policy over the Chinese Eastern Railway that started the conflict.    

“The climax of this policy was the seizure of the Chinese Eastern Railway without any warning or preliminary presentation of any claims, in violation of existing agreements regarding the joint administration of the railway.  The soviet government believes that if action such as that of the Nanking government were taken toward the United States, Great Britain or France, it would be considered by their governments sufficient cause for putting into force reservations they made when signing the pact.  [. . .]  The Nanking government not only resorted to illegal seizure of the Chinese Eastern Railway, but mobilized along the soviet Manchurian railway an army, various sections of which, together with counter revolutionary Russian bands included therein, made systematic attacks on the U.S.S.R., crossing the frontier and firing on units of the Red Army and frontier villages, robbing and violating a peaceful population, causing thereby losses of lives and property.  Despite frequent warnings through the German government, these attacks did not cease but rather increased and compelled the soviet far-eastern army, in the interests of defense, protection of the frontier and the peaceful population, to take counter measures.  Thus the actions of the Red Army had due considerations of self-defense and were in no wise violations of any obligations of the Paris pact.

“That cannot be said of armed forces in Chinese territory and Chinese ports of those powers who have applied Tuesday to the Soviet Union with identical declarations.  The soviet government states that the government of the United States has addressed its declaration at a moment when the soviet and Mukden governments already had agreed to several conditions and were proceeding with direct negotiations which would make possible prompt settlement of the conflict between the Soviet Union and China.  In view of this fact, the above declaration cannot but be considered unjustifiable pressure on the negotiations, and cannot therefore be taken as a friendly act.  In conclusion, the soviet government cannot forbear expressing amazement that the government of the United States, which by its own will has no official relations with the soviet, deems it possible to apply to it with advice and counsel.” 

China:  

New fighting erupts in the civil war.  Communist rebels are reportedly advancing on Canton, on the southern coast, and two divisions of nationalist government troops mutiny at Pukow, across the river from the capital of Nanking, after refusing orders to deploy to Canton. 

Monday, 2 December 1929

Washington:  

The United States issues an appeal to 53 nations that signed the Kellogg-Briand pact, which prohibited war as means of national policy, to join in pressuring Russia and China to solve their Manchuria dispute through peaceful means.  Separately, the U.S. notifies Russia and China that the respect with which they are held by the rest of the world will depend on peaceful resolution.  Since the U.S. has no diplomatic relations with Soviet Russia, that message is delivered via the French government.  Great Britain issues a memorandum the same day saying it is prepared to join in the effort to bring about a peaceful settlement to the Manchurian dispute.  Japan issues a statement saying it does not intend to support the U.S. initiative.

Germany:  

Berlin: The Federation of German Industries, a large and influential trade group, releases a statement calling for sweeping economic, financial and socio-political reforms if Germany is to avoid economic collapse.  The group says high taxes, excessive government handouts and federal government aid to German states, are financially unsound and will lead to ruin if not stopped.

Darmstadt: 250 members of the nationalist Stahlhelm paramilitary group are arrested after clashing with civilians.  

Friday, 29 November 1929

Berlin:  

Foreign Minister Julius Curtius takes the Reichstag floor to assail the Liberty Law* measure, saying the Young Plan (which the Liberty Law would refute) is Germany’s best hope of paying off war debt.  Curtius accuses the measure’s main supporter, nationalist politician Alfred Hugenberg, of “calculated tricks” in his attempts to get the German public to support the Liberty Law.  The Young Plan “is to bring an important amelioration of the burdens on Germany,” Curtius says.  Under German law, the Reichstag has no choice but to take up the Liberty Law measure, because 10% of German voters signed petitions asking for it (see November 2). 

“It is nonsense to determine by a plebiscite that a people doesn’t want to pay,” Curtius says.  “Of course it doesn’t want to pay.  The only question is whether it must pay or not.  A plebiscite on this question is sheer nonsense.  In comparison with the Dawes Plan, the Young Plan on a new political basis is to bring an important amelioration of the burdens on Germany.  German economy and the German people will be benefited by it.”

Nanking:  

The government of China finally agrees to peace terms with the Soviet Union (though practically speaking, it’s not clear it even matters anymore – Manchuria has unilaterally taken the lead).  Russian military actions in Manchuria are limited now to only a few air raids by bombers on selected sites in western Manchuria.  Russian troop withdrawals continue.  The United States and the other world powers, that were said to be contemplating some form of joint action against Russia, are now said to no longer see the need.

Thursday, 28 November 1929

Washington:  

The United States government is reportedly proposing some kind of joint action by world powers in the face of Russia’s invasion of Manchuria.  News reports from Tokyo say Japan has been contacted by the U.S., and other reports say Great Britain, Italy and France have been contacted as well.  British Foreign Secretary Arthur Henderson, speaking before the House of Commons, says Great Britain is prepared to participate in some form of joint action, but the nature of what that might be is unclear. 

Manchuria:  

However, Russia is beginning to withdraw its forces from Manchuria, having achieved its military objectives, although Russian warplanes are still conducting flyovers.  But there are conflicting reports about who has negotiated what with the Soviets.  Manchuria’s warlord ruler, Zhang Xueliang, is said to have negotiated peace unilaterally with Russia, allowing Russian workers and soldiers on the Chinese Eastern Railway to return.  But China’s government is reportedly seeking peace talks with Russia too.  Either way, Japanese reports out of Manchuria say the danger appears to be over.

Tuesday, 26 November 1929: Soviet Union Claims Victory in Manchuria

Manchuria:  

China asks for the world’s help with the Russian invasion of Manchuria.  The government appeals both to the League of Nations and all the countries that signed the Kellogg-Briand Pact to come to China’s aid and punish the Soviet Union.  “Take appropriate steps to stop and punish this deliberate violation,” the statement says.  Chinese troops in Manchuria, still fleeing in disarray, are reported roaming through the countryside seeking food and water.  However, new reports say Hailar is not in fact occupied by Russian forces.

Meanwhile, Russia is already claiming victory in Manchuria.  Russia says fighting has stopped, with 12,000 Manchurian casualties to 280 Russian soldiers killed.  And Manchuria’s warlord Zhang Xueliang reportedly has opened his own negotiations with the Russians and is said to be agreeing to resume the status quo: allowing Russia to control the Chinese Eastern Railway.*  Press reports from Moscow say the Soviet Council of Defense has decided to reject any attempts by other nations to intervene on China’s behalf. 

Soviet soldiers with captured Kuomintang banners

(Note that dates and other information in Wikipedia article appear to be wrong.)

Sunday, 24 November 1929

Manchuria:  

The Russian invasion continues.  Reports indicate that Chinese/Manchurian forces have given up any attempt to defend the Chinese Eastern Railway west of the Khingan Mountains.  They are retreating eastward, looting as they go.  The Soviets also reportedly control the towns of Hailar and Muling, and all the territory west of the Khingan Mountains.  Soviet warplanes are bombing Hailar, and their forces have broken through and are encircling the Chinese there.

Meanwhile China issues a statement denying Russia’s claim that its invasion was only in response to provocation.  “The soviets are the only ones guilty of provocative acts.  More than 30 towns along the border, and in Chinese territory, have been raided and looted by the Reds.”

Russia:  The communist government kills more of its citizens – 16 people are executed for alleged anti-government activities, and 23 others are jailed. 

Wednesday, 20 November 1929

Vienna:  

Coup fears rattle Austria.  The government receives reports that the nationalist Heimwehr paramilitary might attempt a coup.  A beefed-up police presence is deployed to guard key public facilities. 

Manchuria:  

Nationalist government head Chiang Kai-shek complains to the world that Russia has disregarded its international treaties by its invasion of Manchuria.  Meanwhile, the fighting in Manzhouli is reportedly winding down, with Chinese forces surrendering or fleeing, offering little to no resistance against the advancing Russians.  

Tuesday, 5 November 1929

Vienna:  

A group of nationalist Heimwehr (“Home Guard”) students attack a group of Jewish Socialist students at Vienna University.  Police are called in to break up the assault.  Tensions in Austria have reached such heights that British Foreign Minister Arthur Henderson is publicly warning Austrians against coup attempts.  He says Great Britain is concerned that there may be a breakdown in parliamentary discussions on Prime Minister Johann Schober’s proposed constitutional changes to reduce the autonomy of largely socialist Vienna, and that non-legislative action might follow (e.g., coup attempts).  This, Henderson says, would threaten the stability of all of Europe.  Austrian officials are reportedly indignant over the comment, calling it an interference in Austria’s internal affairs. 

Elsewhere:

Kyoto:  Japan’s delegation at the Institute of Pacific Relations conference lashes out with a diatribe on Manchuria.  Japan claims that China entered into a secret agreement with Russia in 1904 to treat Japan as their common enemy, and had Japan known it, it would have annexed Manchuria right then.  Japan says this secret agreement cost Japan 100,000 lives fighting Russia, and the equivalent of $1 billion.  The Japanese say their interest today is for a populous and prosperous Manchuria to act as a buffer with Russia.

China:  With mutinies spreading, Chiang Kai-shek’s nationalist government forces lose the towns of Yensih and Kunghsien to rebels, who now threaten the city of Hankow. 

Monday, 4 November 1929

Rome:  

In a speech marking the 11^th anniversary of Italy’s victory at the Battle of Vittorio Veneto, Dictator Benito Mussolini is back to his belligerent talk.  “History teaches us when there are serious crises, it is arms and war which solve them.  If I had the terrible responsibility of governing a country in wartime, I would make a clean sweep of all powers of discord and defeatists.  I would impose stern discipline behind the war front.”  He added that he thought there was too much talk about peace and disarmament in the world.  Vittorio Veneto was the crucial battle in ending combat on the Italian Front in the World War, and a major factor in the end of the entire war two weeks later. 

Kyoto:  

At the Institute of Pacific Relations conference, the topic of Japan’s presence in Manchuria tops the agenda.  Japan maintains troops in Manchuria to protect its South Manchuria Railway concession, as other nations do in their concessions.  However, China alleges that Japanese troops are involved in acts of intimidation and terrorization of the population.  Japan, on the other hand, says its interests in Manchuria are comparable to Great Britain’s interests in Egypt, or the United States’ interests in Cuba.  A Japanese delegate says China, Japan and the rest of the world all really want the same thing in Manchuria.  “Japan is interested in the development of Manchuria so that she may draw on that country for raw materials which she may turn into manufactured products and which she may sell to the steadily increasing population of Manchuria.”  A delegate from Great Britain pays tribute to Japan for helping maintain peace in Manchuria when the rest of China is in turmoil. 

New York:  

The stock market drops 4.5%, reversing the brief rally that followed last week’s crash.

 

London:  

The government begins deliberations in parliament on plans to spend 42 million pounds on unemployment grants and railway and road improvements, in order to provide jobs to Britain’s unemployed, which now number more than 1 million.  Nevertheless, J.H. Thomas, Minister of Employment, is not optimistic that the “blight of unemployment” can be wiped out so easily.  “In some districts of the country there is no hope whatever of work for thousands and hundreds of thousands of our fellow men, no matter what is done.” 

Photo of J.H. Thomas