Verbal notification to the commanders of the British and American defence forces that the Japanese navy reserves the right to take any steps necessary to dislodge the Chinese from their positions in the two adowns had been made by the Japanese naval authorities, a spokesman for the navy revealed at a ress conference yesterday after noon.
Several cholls fell in the Central istrict about 145 am, this morning, shells hitting the "North-China Dally: News" building doing damage to the seventh and eighth floors and in-Suring three Chines "At 2 amy it was reported that the two bank "godowns were on fire, flames being seen licking the struc: ture, but by this time a number of; Chinlese had already crossed the creek and surrendered to the British troops. As the fire began to spread it became evident that the men would have to evacuate, and efforts of Chinese and British officials to induce them to move were being made.
Later, It was reported that the Japanese were in possession of the building, and ambulances were sent fo convey about 50 Chinese wounded while 370 men were surrendering and being disarmed by the British troops at North Thibet Road.
Following intermittent rifle and machine-gun fire in the morning and afternoon, anxious moments were experienced by residents on the south side of the Creek close to the two godowns shortly after 4 pin, when the Settlement Police informed them of a Japanese warning to take all necessary precautions to safeguard themselves during a Japanese attack to be launched momentarily.
With two Japanese aeroplanes continuing to Ay over the adjacent area. scores of Chinese, carrying whatever valuables or- household articles they could lay their hands on, were soon hurriedly evacuating their houses in 'Every effort," the spokesman declared, had been made by the Japanese "to persuade the Chinese troops in the godown to surrender, but that all overtures tendered in' a spirit of humanitarianism had been dis-Fogarded."
'A brisk exchange of rifle and machine-gun fire rattled houses in the vicinity of the bank godowns from 845 to 920 o'clock yesterday morning. When dawn broke yester~ day, it was noticed that another, though matier, Chinese flag. had joined the big one, floating on the west wing. Rifle and rifle-grenade fire started at am, already, 'An occasional shrapnel shell burst near and just above the large naional Chinese flag, which continued float' merrily, and apparently suffered no damage. Japanese machine-guns in the road' and {rom the north peppered the walls and windows of the godown, the Chinese inside replying with rifle-fire. An occasional Chinese soldier could be seen moving about on the roof of the godown, though such movements were not nearly so frequent as on Priday afternoon.
While the Chinese on Friday had three rife "ports" in the otherwise blank west wall of the Joint Savings Society godown facing the Japanese, they had seven when firing started yesterday morning. During Friday ight they had made four new holes from inside, near the top of the building, with sledge hammers and other implements. The Japanese!
Text read from the printed page and cleaned; old type leaves the occasional error.