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SOMBRE NOTE DON'T WASTE WATER! Truman Explains

Chiang's Grim Warning To Top Generals

"The Hour Of Decision”

Nanking, Mar. 18.

Government troops stormed back into Loyang as Generalissimo Chiang Kai-shek called on his military chieftains to reverse the tottering fortunes of war in Central China.

"The military situation in the entire Central China has reached the hour of decision in our efforts to put down_the_rebellion," Generalissimo Chiang told the Governors of half a

dozen

Central China provinces and high-ranking Nationalist generals. "Unless an all-out effort is made to turn the tide of war, Central China, the last reservoir of Kuomintang power faces complete collapse."

Japanese Adviser To Soong

Shanghal, Mar. 18, Takeki Horiucht, first Japanese adviser to The Chinese Government since the end of the war, left, by eir for Hainan Island to- day, according to Chinese press reports.

The purpose of the trip is believed to be the investi- gation of mining possibill- ties on the island.

Horlacht, who WAN the prewa” Japanese Consu) in Shanghai, is now serying In the capacity of adviser to the Kwangtung Governor. Dr. T. V. 8oong-Beater.

NOVEL RAIDS ON

Even as he spoke, Na- tionalist reinforcements push- en the way through amou!- dering ruins into Loyang fimportant railway elty south of ́ the Yellow River which the Communist redio claimed พกง captured only three days ago,

Retreating Communista Bet fire to Nationalist barracks the western end of the elty and carried away hundreds of tons of food, pro-Government press accounts said.

at

The centre of the fighting has now shifted to the south- west town of Iyarig, about 15 miles away.

Chlang's view of the serious-

Aren

ness ot the Central China fighting came as a surprise to military observers, who heard little of the battling in that for weeks. Government defeats in Manchuria marked by the fall of the cities of Bzo- pingkai and Kirin had over- shadowed events closer to home, Renewed wartare in Shan- tunk province Indicated that lights of the civil war again were blazing luridly throughout most of Chiang's China.

New "Supremo"

Chiang told his generals and the Governors many of them military men-that he had call- ed them together to devise ways and means to save Con- tral China, He blamed lack of cooperation among the Army. Kuomintang and provincial governments for last year's fai- flures and urged all to work as

one.

THE COAST o

Shanghai, Mar. 18. Navigation in

....and this picture, taken at Shing Mun yesterday, graphically illustrates the reason why.-"China Mail" Photo.

CHINESE

TOLD

SHIPYARDS TO QUIT

Chinese shipyards at Cheungshawan, between Shamshulpo and Laichikok, have been given official notice to move out of the area within three months, the "China Mail" learned last night.

Hotel Boys'

*

Government has resumed the land, about 400,000 square foot. and has already published a notification that the land isito be sold by auction for industrial ритровов...

The successful bidder for the land will have to spend #4,000,-" 000 in rateable improvements

Ultimatum within two to three years, the

A 24-hour ultimatum 40- manding reinstatement of discharged "boys" was pre- wented by the Hotel. Boys Association to the Hong Копр Hotel, Peninsula Hotel, Repuine Bay Hotel· and the Repulse Bay Lido managements yesterday,

"China Mail" learned yester- day.

..

.i

Chinese shipyarda have been occupying the land on a yearly, lease from Government. Gov ernment's decision to resume the land is a result of applica. tions from industrialists who wish to establlak_a`large, wELY- ing and cotton spinning mill in

The ultimatum expires at noon today.

The

do- _manding_reinstatement_of_ workers retrenched by the

The ultimatum warned that unless the man are reinstated, the Amociation will consider itself free to tako whatever action deems necessary.

the area. Associationis

As if to emphasise his inten- tion to streamline the war, the Generalissime shook up his northwest command. noming tháng chín chung supreme northwestern commander. The

hotels recently, the Generalissimo's political trou- China Sea is being en-nor of Sinklang

ble-shooter and former Gover- dangered by continuing General Hu Tsung-nan, who raids.

with Ma Hung-kwel lighthouses Mohammedan general), become ni deputies with headquarters at Lanchow and Blan

on

from Ningpo to Tsingtao for kerosene and food supplies, according to the China Press today.

The latent rald was carried out on Steep island, some 150 miles from Shanghai, In. the approaches to the (southern

Yangtse Estuary.

auperceded

<veteran

Chitang's appointment recall- ed Government plans to call up

hardy soldiers of China's wild It's All

northwest for future campaigns in North China, possibly Man- churts.

Changchun Threatened

Meanwhile, in the latter area, the picture grew darker. Man-

Up To The Governor

_Of_the_23...shipyards__In Cheungshawan, 16 have re- ceived notices from the Public' Works Department telling them

His Speech

The Issue Is "Tyranny

Versus Freedom

New York, Mar. 17. President Truman' today said he had asked Con- gress for a temporary revival of the draft law in order to give the United States the armed strength it needed as “principal protector, of freedom in the' world.""

In a speech at the New York St. Patrick's Day banquet, the President hammered out a vigor- ous condemnation of Russian exparisionist policies and a strong plea for popular support. of the military preparedness programme which he had submitted to Congress a few hours earlier.

He warned that the American So long as democracy is threaten- people in the year ahead may be fed in the world and during the called upon assume the gravest period when free nations are re risks in their history, but said the gaining their strength, this coun danger was thrust upon them by try must remain strong in order Russian Communism and it could to support those counties not be sidestepped if the United Europe whose freed:an la threa Stales were to win the fight fortened." pence.

about the issue which confronts

"We must not be confused Emergency Measure the world today," said Mr. Tru- President Truman said .em- MAN. "The Issues as old asphatically that he believed crea VAAAAAAAAR MAARI WAAAAAAAJ recorded history. It is tyranny ton of a large pool of trained

Budget Day

Today is Hong Budget Day.

Kong's

His Excellency the Gov ernor, at the Legislative Counelf meeting in the al- ternoon, will give a general review of financial policy. following which the Finan- cial Secretary will move the first reading of the Appro- prision Bul for 1048-49.

versus freed:m.

He then explained his recomand selective service would play civiliuna through military training mendation. to Congress,.

"These recommendations have but one purpose," he said, "That purpose is to prevent war."

No Easy Answer

J

He admitted blaakly that there was, no simple, easy answer to the existing world erials and no way of foretelling where the pre- sent situation would lead...

He reassured the nation tha a big, part in preserving proce elective service under his pro posals would be used only as un emergency measure until militars traisting was set up and operating Military spokesmen estimated that lime as about one year.

Mr. Truman reminded his au dience soberly that the United States no longer could isolate it- self behind he barriers of the “But I can EXPRESS MY Arm Atlantic and Pacifin Occans. conviction that at this moment, The swift, P nt of events the faith and strength of the had made our new role plainly United States are mighty factor | evident. With few exceptions, our for the prevention of... war, and people now understand that the

Our finited States has become the

the establishment of peace, faith and strength must-be und mistakably - clear to the world,

Stop-Russia Plans

Washington, Mar. 18,

President Truman's stop-Russia programme was reported today to include plans to permit China to buy surplus arms from stores in the United States as well as from Pacino island bases.

¡U.S. Fleet

to quit within thres mot Visiting Greece to responsible

a month.

The United

[PICTURE OF THE DAY

EXPENSIVEL

We mean the garment, ' worn by Betty · Grable in "Mother' Wore Tights which is being released in Hong Kong this week. It cost U88785..

Shanghai $ Rate

Hits A New High

„Shangbal, Mar. 18,' neincipal - profectak” “of **a***free*

The United States dollar on werid. To carry out that respon-

liitwe must maintain our Shanghai's black market today. strength military, economie and hit a new high of CN$620,000, mora. We must Join our strength following" Yesterday's upward with the strength of free men the revision of the Central Bank world over who belleve as we do of China's "open market" In the liberty and justice and

foreign exchange rates. dignity "cf: mán.”.

Red Masquerade He added that Communism was masquerading an ■"déctrine of progress to make its "reaction and its denial of human' rights,

"Even worse, Communism dan len the very existende of God

**

It

Gold bara gained" CN88,000,- Coo In the past 24 hours and were, quoted this evening at CN351,000,000 per ounce. The cross-rate between the United Staten dollar and gold bars' has remained unchanged for the past three days at US$80

་་

The shortage of "funda-is at- tributed by brokers to the. light of capital from Shanghai to Interior points, such as Can- ton and Chungking, whero com- modity prices have not yet ex- perienced the recent heavy in- creases witnessed in Shanghai. ~Reuter."

China already has started to ship, army ammunition from Sal Religion persecuted because per ounce, pan and other islande, which was stands-for-freedom-under- God On the stock market, Chineno- bought at one cent on the dollar This threat to liberty and to our shares slumped heavily this faith must be faced by each the morning, owing to the lack of of the original cost, the te

con of us; */ The new proposal under

diplomatic

"We will have to take risks liquid funds but recovered in Although no alternative-sitos

sources said, is that the United during the coming year-risks the afternoon. The tight money Athens, Mar. 17. wore offered, the "China Mill”

States permit the Nationalist Go-perhaps, greater than any, this situation yesterday drove the States Mediter-vernment to require munitions country has been called upen to black market Interest rate for Was officially told yesterday ranean Fleet of 17 vessels, in- from the continental United assume. But they are not risks that Government will consider dinding the carrier "Philippine States and Hawail us the Ad- of our own making. We cannot Chinese dollars up to 40% per alternative øltes suggested by | Bea." "will vialt Greece from ministration was represented mu make danger vadiah by pretend-month-the highest postwar res the shipyards concerned.

March 23 to March 31.

thoritatively to be drmly against ing it does not exist. We must cord-but dropped somewhat to

danger." day to 33%. The Fleet, under Vico Ad-Involving the United States in be prepared to meet The area, in addition to hous-i ing 23 shipyards, also contains miral Forrest P. Sherman, will direct resp:asibility for Nanking's United Press. many wooden shacks and mat. anchor in Argostolion Bay at military campaign against the sheds used as copper works and the Island of Cephalonia off the Communists,

Marshall's reported view ธ timber yards. The latter have west coast of Greece. It was an that the United States must re- been given notice to quit within nounced by Commander Morton siat pressure against involvement Six armed men from a small

Sunderland, U.S. Naval in China to avoid dissipating the pirate' junk landed on the reef, churian dispatches sald Chang-

limited milllaer, power this coun- The shipyard owners. While it is certain that Daylight

don Attache.. firing shots withput causing chun, the old capital of Japan-Saving will be introduced into Honcerned hold a representative

The ships will also visit the try has to back up opposition to

Soviet aggression in Europe. any casualties. They got hold ese Manchukuo," was almost Kong, in fine with several other parts meeting yesterday to discuss Pireaus.

Marshall took a similer stand, of and beat up the keeper and Coturny, curing but over ten of the Far East, early In April, it the matter and make repre

The Fleet consists of one in World War Two: th insisting his wife, and finally made of Bzepingkal and Kirin.

three cruisors, was officially pointed out yesterday contations to the Government carrier, Proll-

nine that the US, concentrate its main with 74 tins of kerosene and minary skirmishes were report that the exact day for the introduction They claimed that if Govern destroyers, and four auxillary effort in Europe, "some" "personal "effects. ...

Some of Marshall's advisors be of Summer Time is at the discretion ment insists on their removal, vessels-Associated Press.

A 20-minute battis between ant, who hes the Gaverant, KEA day oarlier, the lighthoune

lieve China's major need, is lea- rice manugglers / and "troops of*| power. "lo

will amount to on Elkar Island, 100 miles from taking

dership and also "better"-training curred itil Chinese territory. In Bhantung, fighting was order that Summer Time shall be their lones

place 15 to 20 miles observed a day

San Diego, Calit., Mar. 18. specified

for the Nationalist armies, rather near the Kwangiang-Kowloon Shanghai, was visited by a away from the Tsinan provin

throwing mona than 1,000' men

then munitions. Vilnius day at earlier than April 1.

Adminl border on Tuesday night, ac-

William Standley, small upon Junk, from which clai capital, while the Com- Nu Order specifying the date has out. of work.

On the point of leadership, theycording to the Bing: Tao" Jth wardline Ambassador to Russia, yo pirates landed, locked up munista inched closer to Taing-yet been issued, and it may be found Among the pre-war plans for

believe wubstantial improvement Pao yesterday quoting travel- said today he fails to believe there London, Mar. 17.

la any, chanca of an immediate the staff, and their families in tao, anchorage of the American that Sunday morning, April 4, is a the development of Cheungaha-

Western Pacific Fleet Govern-more convenient day on which 10 wan was one which 'called for the Daeninions should study the months, balli in naming sevéral í „The report said, that more than 60 | war between the United States. 2 storeroom and made off with ment troops were engaging the make the change-over.

A suggestion that Britain and has been made in the last few fers, from Shumchud,

new. Generals and, in gating Fridsmugglers attempting to transport and the Soviet Union, 86, tina of kerosene, plus all the Reds near Chimo, about 25

extensive reclamation for feng-"horrible dischte of Communism” of at least one Generals blamed rice by 'coolles, from the: Tông: Kun He said Riasta lepot ready Price and other provisions.

miles away.—Associated Press,

thening Cheungshawan Road together was made by Lord Han-privately by Markhall see befng area were involved, "The main body for war now and we would have from the Shamshulpo Barracks key former Secretary to wartime responsible for the loss of Man was preceded by 20, armed rich.; to be. provoked into one. I am

Cabinets, in a debate on defence churia to the Communistada- in the House of Lords tonight sociated Press.

Altogether five such ralds

i have been carried out by pirates

columns of fallen

ed at Fanchlachuen, 30 miles southwest.

A cince last November. In each Australian

case, the pirates before-leaving

A ordered the keepers to keep the

Flights burning, otherwise they 2011 would return and

verybody Bouter.:

ranskadro

Citizenship

Canberra,” Mar. 18.--

of

on a

Paltan Bazaar Destroyed

being

more than $2,000,000 besides HORRIBLE

to Lalchikok Road.

Protest

Calcutta, Mar 17 Rejec

A fire which blazed for seven hour before it was brought under control destroyed the greater part of

DISEASE

Ila said that two old friends from the Dominione had told him

that Britain"

to much i was fortunate to be Foreigners Exempt

munlam than the Dominions, ju

Smugglers Battle Troops

vanguard

ADMIRAL AN OPTIMIST

was confident. Rusala would have to

The snugglert, Chloe army commit an out: and out violence.

challenged – by patrol near

exchanged: Troop Poots were | furug' to into war."-United

reinforcement Pres

smugglers" who escaped" with: thele rice. In the darkness after 4. 201 minute exchange of fire. Neither alde

Viscount Hall First Lerd of the From Tax Admiralty, said that the present -Washington, Mar. 17.

Skate Naoking Mar. 18

The disclosure bar, foreigners will suffered catundjes, The United States, today re- Government was not behind any Immigration, Ms. "Arthur Cal- the of Shilling, "capital of the tes- jected, Yugoslay protest other British Government in Its be

be exempt from the and the Commonwealth "Soak the Rich" is who made By

The Australian Minister of the Paltan Bazaar, the business cen

KEMETER PANENwell, announced today that the growing province of Assard, reports against the presence of the desire to protect and preserve the Wealth," or now widely

nation

M.P Appeal

A MENGHAE - London, Mar. 17.

Federal Cabinet had approved received here today said. former Regent of Hungary from any attack, wherever it Government spokesman, Mere jetre Allowed on Debtor, and Creditor, legislation giving: Australians No casualties have so far been re- Admiral Nicholas, Horthy,, "at came from-mside or outside the dayjedn

the status of Australian citi. ported in the fire, which occurred, the wedding of an American pountry-Heuter zenship in addition to, but not vésterday, but hundreds of people are official, at Munich recently, 2 Charged With Theft distinct from, the general status homeless, sploh

The damage has not been estimat The Yu

of British subject they nowed in detall but in would to run into anked

* He also suvažiedž

The Weather

Ankantensive antizzalóne covers Chika, Manchuria und Mökkaidő whange-11′′, is „spreading & Inko thể guetti, Pridetza 30 relative high ovary (thá) #. Chlan Banbu atronik of low presătură, Elen: froes "Tankin'

I voluntary, saying] who have GERMANS TO EAT censuite and not legale pianides will today allowed an appeal and quarb-| Iwalims.

be used la enforcing på antracited the convictión, of the 40-year-olit, sed

boly: públic | The Court of Criminal Appeal. Lamon - - Straist 4 to 7.5; daariumion : TE

hundreds of thousands of ruperum the ex-Regent us a war Mr. Calwell said that it Reuter

told

“would”, be clearly understood that the proposed legislation will strengthen rather than aken the bonds between Aus-

the United Kingdom

d'lagialation

COAL MINE DISASTER

Inst,

MORE

rt. Mar 17, tions in the Anglo- one will be raised

The Government-willpublish, die Labour Membii of Patilurient, - Mel vindesa) full. Overeat vital periode names, of these either. Filulag" or|| David Weltamah, who read sentenced m faillog to' pay, effr=1} Lave been to 12 months' fingelsonment and fined nimed (as dilgible ** (***** *--Kanter. || #500, on; archerma, of" codes

Fraction with the'supply of cosme: | sui

WIE

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