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FRANCIS WU'S STUDIQ.

Gloucester Arcade

CHINA

No. 34166.

ESTABLISHED FOR

MAIL

MORE THAN 100 YEARS

HONG KONG, THURSDAY, DECEMBER 30, 1948.

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PEACE TALK TRIES REPORTED Princess GOVT RELEASES REPORT

Govt Said To Be Seeking Direct Negotiations

Chiang To Resign?

Nanking, December 29.

China's Nationalist Government was reliably

reported today to be seeking direct ne- gotiations with the Communists for a peaceful settlement of the civil war, This development followed the reported refusal of the Soviet Union and the United States to accept Nationalist feelers for mediation, and the reserved attitude said to have been assum- ed by Great Britain and France. Many excellently placed quarters today expressed the belief that Generalissimo Chiang Kai-shok may step down and turn over the reins of Government to General Li Tsung-jen in the near future.

in spe

of soffietal denials | Fo's cabinet that he would resum

hnally decided already made, and probably when pence

tapon, as reported earlier. me to come, velable sources.

(2) The appointinent of Mr. Samf 11.10 attempte have

Wo Chung-lisin As Secretary- already been made by the Na-

General of the Presidentiat Ouice, tionalist Goaves utarnt thin € 1: Kong in con- tel votumst quarters to get segotiations started.

known a

The arrival here of the Gov. ernor of Shanat, General Yen Huishan,

* "fence sitter," who fought the Com. munists always with an eye to a possible compromise,

WRS anld

to be in answer to a summone from President Chlang Kalishek after the Government changed Ite effort from third party mediation to direct negotiationa with the Communista.

No Confirmation

n

11 is us ven ungersille te con- firm what exactly me the Gener- alissimo's intentions. An approuch the Gnverrement Spokesman was considered useless because he would normally deny such a re- port even if it is true until the inoment it actually happens.

(3) Generat la Tsung-Jen's re- een comicbark lute the active political stage, and

Red Reassurances

Shanghai, December 29.

Attends BBC Play

London, December 29. Princess Elizabeth had her

first evening outing since her baby was born six weeks ago when she went to see "Much binding in the Marsh" at the BBC last night.

With her went the Duke of Edinburgh,

the

Queen and

Richard Murdock and Kenneth Horne, stars of the show, cracked Jokes about the visit but listeners

ON HOTEL RATES

The rates prevailing on July 31 for resident guests at the Colony's four leading hotels should not be changed, the Hotel Rates Ád- visory Committee recommends in its report, released by Goy.. `ernment yesterday.

While recommending that the rates at the Para-

mount and Cathay hotels should not be con- trolled, as "they are in the nature of luxury

Cease-Fire

hotels essentially catering for wealthy Chin-For Palestine

ese", the Committee suggested that the rates prevailing on July 31 at the Hong Kong, Peninsula, Gloucester and Repulse Bay Hotels should be maintained.

could only guess at their meaning. The recommendations of the Committee do not in-

Murdock nick: "WC

The Chinese Communists, in mimeographed Princess Margaret,

circulars, have promised protection to United States nationals and their in- terests, but warned they considered aid to the Nationalists as a hostile act. Both the reassurance and warning were included in circulors mailed here to American and other foreign firms.

For several months, somewhat similar circulars have been received periodically by foreign businesses from Red Headquarters in Hong Kong, but this was the first time they origin- ated from here.

Into

The circulars

Nationalist

drew attention

The circulars bore the head- ] smuggled ing. "From the Central Com | China for belated malling. smitter of the Chinese Com- munist Party." Since this that on January 1, 1847 the Con-

truf to be

Commitice Committee is bekteverd

unno inced somewhere in North China, would not accept

the traitorous and since the circulars bore

Hareign policy adopted by Kurmintang Government, January 21, 1948 date, it is

(5) News spread around Lowbelled the message was pre- that the Generalisaling has not yet

pared approved by the drafted bis usual New Year's mos

Committee in North China and sage. Bruter and United Press.

Gold Yuan Conversion

In

Into Gold To Be Resumed Next Year

Nanking, December 29.

the United States and file. Chinese They claimed that deals between Nathudists had been made for the protection of Shanghai and the Reds Tsingtao and warned would not recognise them. * No such dels have been admitted There.

1

PORTE very spezial visitors here tonight." Later: " hnd camera for Christmas, I am going to climb a tree outside Buckings ham Palace and take photo-

graph of a prom".

Maurice Droham (Dudley Davenport) nutel: "I do teel I feel as if I was in the presence of Royalty."

nervous.

Beture closing the chorus, the orchestra played the Brst ff༤༥ས bars of "Here's health unto Hi Majesty". When the last verse If the chorus ended, the orchestra | went on playing.

Kenneth said to Richard: on, Murdock, say it".

Murdock

demarred

Must I?"-Ile murmured: right then".

were

"Go

coyly:

All

of the

present.-

Japs To Die For Killing

clude any provisions to protect the transient guest from oxploitation. They exempt Chin- ose hotels and boarding houses from control. The Committee said that the Number of questionnaires sent rates being charged by, resi- out: 1.125, dential hotels are higher than warranted. It recom- mended that between 20 and 100 per cent of the accom- modation at the various hotels

be set and boarding houses aside for resident guests.

are

Suspended Until February

U.S. Fliers charged their duties so ably.

Expected

Paris, December 29. The United Nations Security Council was expected today to issue a ceuse-fire order design- ed to halt the Jewish-Egyptian fighting in the Negev region in Southern Palestine.

The Council is to meet at 3

.

Replies recctyed within the Pm. Paris time to hear final argu- ments on the British resolution prescribed period: 399,

Number of persons agreeing troop withdrawals to positions he- proposing a cease-fire order and to existing rates: 70,

Number of persons disagree- November.

hind the lines they held Ing: 327, and

None committal: 2. For the purpose of this report, the Committee have delined r

Resident Guest as one whose stay hotel or boarding house is of test one month's duration, and who gives one week's notice of intention to leave,

Various Categories and

Britain claimed six votes for its are needed to obtain approval of resolution as a whole, Seven votes

the entire resolution or of The cease-fire provision troop withdrawals.

without tha

In Tel Aviv, an Israeli spokes- mon sald today that Jewish opera- tions in the Negev have been re- duced to mopping up and sonte

Soekarno.

Authorisation To Purchase ECA Supplies

Realdent guest is defined an one whose stay in a hotel is of

IR at least one month's duratior and who gives one week's notice of intention to leave. Eighty per cent of the necam- it Then he shouted; "Good old modation at the Peninsula

Charlle", Princess Elizabeth, the Repulse Bay hotels, and 20 per We have considered hotels and prisoners und booty have been theDuke, the Queen and Princess cent of the accommodation at the (boarding houses under the follow. taken,

Margaret all Joined in the applause Hong Kong and Gloucester hotels ing headings:

If the Palestine issue is finished sally. and laughter, which greeted the should be set a side for resident

(a) Hong Kong Hotel; Penin-in time, the Dutch delegate, Air. gurats.

sula Hotel, Repulse Bay Hotel, Jan Herman Van Royen, in ex- Afterwards the cast were

and Gloucester Hotel.

preted to tell the Council his Gov- Presented to the Royal party and

(h) Residential Hotels.

ernment's attitude towards its the Queen told Murdock "The

(c) Chinese-operatoti King was very sorry he could not

foreign cease-firo order. So far the Dulch come. He

type hotels.

have refused to obey the order. asked 'Can I come

The Colonial Secretary, Mr. (d) Chinese hotels and boarding

Under the resolution pasered when I am better? He is listen-D.M. MacDougall, said yesterday houses.

yesterday the Dutch also ore kup- The circular continued that ng at home".

at the Legislative Council meeting Each group with the exception posed to tell the Council today the Chiluese Reds, view grants of Hundreds of listeners phoned that the recommendations are he- of (d) was further considered on whether they have released In- American military and ecotonic the BBC after the performance

ing considered by Government. the basis of rates for accommoda-donesian political prisoners, in- a to the KMT Government as a to. ask which members

As a result, the previously antion, rates for food and services cluding hostile act on the part of the Royal family

the Republic President ounced rates by the Competent and extra charges. United States, for which the Reuter,

Authority will be further GUS- The accounts of the Hong Kong. The resolution carried n 24- United States must bear the

pended until February 1.

Peninsula, Repulse Bay and Glou-hour deadline due to end of $30 iesponsibility for its })

Mr. MacDougall said the matcester hotels have been examined p.m. Parls time,-United Press. quences as a result of the Ameri- lean military lavasion upon the

ters dealt with were complex and and our comments thereon to- controversial and had involved an gether with separate document. territoriol integrity of Chinn.

immense amount of work and are embodied in Appendix IA. (That was as near as the trans-

labour. He paid tribute to Mr. (not released for publication). lalors could translate this portion

T.N. Chau ond the members of of the circular).

Bases on the facts, and figures the Committee for having dis-disclosed by these accounts ahd.

the Committee's knowledge of the Some of the appendices men- operations of there hotels, we re Yokohama, December 29,

tioned in the Report were not in-commend that the accommodation An Eighth Army military cluded because they contained rates approved and which pre- The circular and the 'Chinnsc

commission today sentenced commercial information of a con-valled on July, 31 1948, be main-

Washington, December 28. Communists and Democratic Gov-nine former Japanese Army dential nature which, the Com-tained as follows:

The special recovery mission ornmeni "in the liberated areas and officers, Including

mitter said, should three

not be dis-

Hong Kong Hotel, $18, to $24 to China has been given the whole hory of Chinese generals, to hang for beheading

closed.

Peninsula Hotel, $16 to 24 blanket U.S.$1,000,000 authori- citizens are sincerely willing to 33 captured B-28 Alers after

The report follows:

Repulse Bay Hotel, $18 to $30;sation to buy emergency sup establish equitable friendly using some of the Americans as on August 3 to enquire into and

The Committee was appointed Gloucester Hotol, $10 to 24. plies, lations with foreign powers, in- live dummies in the practice of advise Government concerning the basis of two persons occupying

These rates are on the general Ал Economici Co-operation It was officially stated, how- vincial Governor of Formosa. Jetuding the United States, And

ancient Japanese sports.

Administration spokesman suic that the Cabinet

Generni

Chief of wii protect their nationals

rates to be charged for accom- single room and three persona ge- Chen was

the fund could be spent by the sidered that a lax to balance

Sixteen other members of the modation. food and services by occupying a double room and will Staff during the Nationalist de- the interest of their nationals in feat in Manchuria and had been Ching, but will in no case tolerate wartime Western Army, whose

hotels

Mission chief, Mr. Roger Lap and boarding houses apply to resident guests. the great disparity between

Inverely criticised by

ham, anywhere except Inside Man..invasion

headquarters Chinese territorial Southernmost island of Kyushu, upon

were on the throughout the Colony.

This does not preclude the official conversion rate

these China. Presumably most of the churian legislators.

integrity by anybody.

The Committee was composed hotels from charging $16 for a (GY2,000 per ounce) and the

The circular was not received

were sentenced to prison terms of Mr. P. S. Cassidy, Mr. F. G. person who chooses exclusively and medical supplies.

money will be spent for food black market price (GY8,000 Formnau und Canton were two by all foreign Brins and it was ranging from life to Ave years Maunder, Mr. J. M. Wong, Mr. to occupy a single room or $24 The grant

Chung King-pu, in Shanghai today) should be places where observers considered noted that the firms which did for their parts in the atrocities.

Mrs. Morris for two persons who choose ex-

Was Included In Seven President Chiang night remove not get previous Hong Kong clr- levied on Yuan depositors.

Japanese, including Comfort under the chairmanship clusively to

authorisations totalling US$14,- occupy 0 Lieutenant General

double 932,000 to seven European 13- The Finance Ministry and the his Government if Nanking fell to culars also did not receive the

Mazazumi of Mr. T. N. Chau. Mr. J.M. Tan, room. Cairo, December 20.

the Communists.

Shanghai circulars. Tin Inada, Western Army Chiet of of Wong Tan and Co., Chartered Percentage For Residents many and China.

tions, the French zone of Ger- Central Bank of China are ex- More than 70,000 Egypilanspected to draft regulotious in ac-

Exodus of some prominent pro- elude many of the largest com-Staff were acquitted...

Accountants, assisted the Commit- Eight of the 33 Amertan rir-tee us Professional Adviser. Mr. We further recommend that AD

Total ECA authorisations to all gathered in the streets of Cairo cordance with the Cabinet's views.ple and of wives of some Govern-panies in every line of business.

ment officials to Formosa was re- Somewhat similar circulats algumen fuvolved in the

recovery nations

to dale аго today to

case were P. F. J. Eardley was appointed Per-cent of the accommodation in temporarily Wis

have her received by foreign decapitated after being used as Secretary. The duties of secretury the Peninsula Hotel and the Re-US$1,213,050,000. funeral for the assassinated suspended last week as a result cently reported.Reuter-AAP.

firms lo Tsingtao. However, they dummies while Japanese soldiers were transferred to Mr. R. S. W. Pune Bay Hotel, and 20 per cent The Chinese Government in For the

Shanghai gold rush on banks, which took toll of seven

week or Paterson when he returned from of the accommodation in the Hong the

ended December. 24 Kong Hotel and the Gloucester used another US$348,028 of its dend and about a hundred fr

Since the Interim report dated Hotel be set aside for the use or US$125,000,000 in

U.S. military ald United Press and Associated have continued our enquiries and

(Continued on Page 2) Press. now report in full.

with

Gathering from private talks amber of excellently pliced sources the causes of the No

belief that the Generalissimo may step diwn me as follows:

I The Getumalissimo's verbal understanding with Premier Sun

Egyptian Premier

Is Buried

witness the state

Premier. Mahmoud

Fahmy

Nokrashy Past.

through

ever,

an effort to halt rapidly rising prices in Nationalist China's latest economic crisis, Dr. Sun Fo's full Cabiner at a meeting today do- cided to resume from January 5 free convor- sion into gold of the inflated Gold Yuan cur- rency.

official announcement was made after the Cabinet meeting about the new conversion rate.

Conversion

con-

of in

An

CONFERENCE

China's

Red Protection

and

Karate

were like carller circulars distri-Kesagiri on them, the Chief Pro- leave on October 4. practised archery, buried in Pelping and Tientsin |secutor, Mr. Paul K. Van Bergen September 39 was submitted we such resident guests,

to

In-

The gun carriage, drawn by slx jured.

which promised protection Nanking, December 20. horses, moved slowly

forelen nationals ond their The Cabinet today also appoint- Central Cairo, carrying the re-fed three new Vice-Ministers and President Chiang Kai-shek's re-tap. The

emergency conference of terests, but warned aguinat sabo- mains of the premier to a mauso-two Provincial Governors,

Tsingtao girculars gional military leaders tonight were under leun built for a former prensler The most important was the presaged important developments the Tsingtan Muhlelpal Commit- the heading, "From who also was assasinated.

unexpected appointmant

future. Associated ten the East China Liberation The procession started at

General Chen Cheng as Pro-Press. n.m. IMT at the Khedive Ismail

Anny."--Associated Press, Square in Central Cairo uncl headed for the matroleum at Abassin, several miles outside- Calro. The minisoleum was buil! for another assassinated premier. Ahmed Maher Pasha, who was killed on February 24, 1945.

The bodies of tho. two stuin premiers will lie side by side.

The Grand Chamberlain, Abdel Inti Talaat Pasha, representing King Farouk, was among many Egyptian and foreign dignitaries who followed the coffin on foot.

Police bands played mournful and martial Arab muste while police guards red the crowded Streets.--United Press.

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