China Refuses to Move Troops From Shanghai;Big Guns Boom DefianceNew Manchu State Unfurls FlagPeace Hopes Blasted When Leaders Spurn Nipponese DemandZero Hour SaturdayCombatants Warned Against Imperiling Americans, BritonsCHINESE BOMBARD CHAPEISHANGHAI, Feb. 19 (Friday) (AP) Chinese guns replied today to Japans ultimatum demanding Chinese evacuation of Shanghai with a bombardment of Chapei battlefront in which, Japanese headquarters said, three Japanese bluejackets were killed.The bombardment was interpreted by Japanese army officers as a gesture of defiance.Copyright, 1932.(By United Press) SHANGHAI, China (Friday), Feb. 19 Chinese civil and military authorities today were drafting a flat rejection of the Japanese ultimatum demanding evacuation of all Chinese troops from the Yangtze delta by Saturday night.The ultimatum was presented verbally by Japanese Major General Kanichiro Tashiro, who pounded his fist on the desk of Chinese General Fan Chi-wu, and later repeated it in a formal document. The demands are so impossible they render counter proposals out of the question, a high Chinese government authority said.The map identifies the territory embraced by the new republic of Ankuo, which has proclaimed its independence from China. Its boundaries are clearly defined on the north, south and east. Westward it extends vaguely into the Mongolian plains.Republic of Ankuo Proclaims Independence From China; Aided by Japan