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THE CHINA MAIL, THURSDAY, MARCH 3, 1840,

ON FUTURE CANTON OF HELP TO CHINA

Washington, March 2.

conTM

Roger Lapham, Economic Co-operation: Adminis-

tration chief for China, told a proas forenco yostorday that things in China have gono from bad to worse from the Nationalist standpoint.

"The Reds can move Southward across the Yangtse whenever they want to, without experiencing much military opposition. Most Chinese are tired of war and want peace.'

"

Mr. Lapham declined to ECA to have available a reason- speculate on the future of the able sum of money for use, how- Kuomintang and the National, ever conditions in China permit." government.

lo amplification, he added: "1 mean that if the Iteds take over we probably will

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"[cel, The ECA "Mould" "Fares, on

He did not say what sum of with the present there gramme of consumption goods mancy he feels will be desirable. ECA operations assistance as long s

Summing up сла operate

it. China since their beginning non-Communist in

last April, Mr. Lapham and ECA aide said expenditures and ob-! ligated funds to date total about

Dreas."

1

Mr. Lapham also gald Chiang Kai-shek continues to tale very active interest in what is Ho

on. ife deeland. how- ever, to comment 7111 whether the Generalissimo might re-enter the Government.

Mr. Lapham eansiders the ture of affairs in China utterly Hutch.

"I feel 4 have been guessing ever since I went to China," he asserted, "und the prospects are that we shall have to continue that

way.

Commenting on reports that Senator Patrick McCarran had said he recommended to a Con- gressional Committee a US$240,- 900,000 yearly ECA programme for Chik henceforth, Mr. Lap-! bruk:

US$195,000,000. The principal

sum remaining is the balance of Cunexpended funds from the pro-

ANS tion programme, of which only Jerted US$70,000,000 rehabilito-

Mr. Lapham said.

few millons have been spent,

s

Cotton For Shanghai

He said the ECA had nccepted

recommendation That the! agency grant US$500,000 for ns- sisting stranded Chinese students, in the U.S. ECA aides said this

under way und programme is that students should beglo celving money soon.

There are about 3,600 Chl. ese students in the U.8., most of whom are said to be finen-

a result

clally embarrassed 20 of the collapse of the Chinese currency,

Prosecution Of PI Reds

ON

Manila, March 2. The House Committee un-Filipino Activities has re- commended the prosecution for legal association of peri

whore membership In the Philippine Communist Party can be legally estab Bahod.

is

The recommendation contained in a report sub- mitted to the Speaker of the House

the.

recently

activities on

In the Philip

of

HOUD by conducted hearings Communists pines. The report has not yet boon submitted fɔr con- sideration by the House, but. this is expected shortly.

Most CUFA members are convinced that the Commu. miste hore are planning to overthrow the government and aro collaborating with foreign Press:

association, United

ILLEGAL TRAFFIC IN DRUGS

1

Washington, March 1. The illegal traffle in the drug marihuana (Indian hemp) has increased, particularly among young Americans and Jaz. Mr. Lapham said that cotton and oit continue to

musicians, the United Com- supplied to Shanghai. He es-missioner of Narcoties reported tiranted the present cotton stocks today.

raw be

Pago 9.

CHAMBER'S FUISTINGUISHED BY SERVICE

APPEAL

The

Canton, March 2, Canton Chamber of Commerce has held a meeting to discuss the Government's flecul reform measures. The meeting was attended by 100 business-

men.

They Agreed that the Govern- ment's ruling that Customs Yuan can only be bought with silver dollars, gold or foreign Currency constitutes a burden to businessmen.

The Chamber decided to op- peal to the authorities to modify the proposed new regulations so as to allow the Customs Yuan to be purchaseable also with Gold x at presond

ter

According to the new Onancial and economie measures recently uutlined by the Finance Minis- Mr. Hsu Kan, all Customs dulles will have to be paid in the proposed Customs

YUAN only.

The meeting also decided to request the Govemment to allow money changers and commer- rial banks, Instood of Just the f Central Bank alone, to handle) foreign currencies tendered in exchange for Chinese currency.

ان

It was pointed out that this would facilitate oversea' Chi mese returning to Kwangtung with foreign currencies

In their possession. Meanwhile, an official the Finance Ministry is reported by the Chinese

as denylag there being any truth in a report that an exchange rate will be lxed between the Gold Yuun dollars now in circulation and the silver which the Government proposes now being minted, and

alongside

press

shortly to Kirculate the Gold Yuan.-Reuter,

ANNA STRONG GRAVELY ILL

"That figure came up dur ing the hearing, but no recom.

mendation has yet been made,” I added that he hoped such *4 recommendation would! be matic very soon. 1 indicated that the present ECA programme there at About 190,000 bales, He said that in North Caru- in China is likely to east about with further shipments proceed-lina, an entire orchestra, and in US$20,000,000 monthly.

ing as required by Shanghai Chicago and New York some

New York, March 1, Concerning Taluce operations mills.

rather prominent jazz musiclans. Anna Louise Strong, American in China, Mr. Lapham suld:

Mr. Lapham will probably re-

have been arrested.

woman journalist expelled from 1 should like to see Congress turn to China in about 10 days. American Secret Service agents, Russin as a spy 15 days ago, is authorise the President and the Associated Press.

sent abroad in An attempt to seriously , suffering from ex- smash the sources of the drug, haustion, her Counsel said loday. broke up a clandestine drug.*

He will ask for lier to be laboratory In Istanbul, Turkey, excused from appearing

before the United States Federal sub-

JAPANESE LEAD MALAYA BANDITS

Kuala Lumpur, March 1,

British troops, in a combined air and land opera

tion, have arrested more than 100 suspected bandits said to be led by Japanese in Pahang State, 35 miles East of Kuala Lumpur, Two companies of the 1st Bat- South of Triang, made the arrests Lalion, the Devonshire Regiment, in a ground attack yesterday. combining in the biggest-ever air One British corporal, who had attack

Landlits eight miles joined his company only

the previous day and Was on his first operation, was killed. An-! other corporal was wounded in tite arm.

Plot To Blow Up Shipping

Savona, March 1. Five Jews, including girl. are being held by the Savona police in connection with an alleged plot to blow up shipping at Vereze, near here.

Three of them werg delamed Just week when ́ear, enrryin! | bombs, was stopped in Verez, where several torpedo boats are being built for Arab States,

Their names, announced by the police today, are Joseph Bron, who Israeli natinantity, wod Giuliamu seva un Francisco Zamoni, both of Milan.

W

Later, the police detained two more Italian Jews, Boris Landlo and Benedetto Natalonpara. The police believe that the live belong to a terrorist, gang, which may also have intended an attack on the big ship Siar of Egypt, which put into Savonu two weeks ago.

Reuter.

Nine bundits were killed in the air. attack.

and arrested 30 people

More arrests were made at Grand Jury Investigating Marseilles, France, of people in-versive activities.-Reuter. volved in smuggling dope Into

the United States.

Another Secret

agent la

Investigating

pling operations in Italy.

Bervice

amup.

The American agents, who work with the local police, ure now helping to draft drug con- trol

legislation for iran and Turkey.-Reuter.

American Caribbean Manoeuvres

The arrests, including those of

New York, March 1. two known bandits ond more than 100 bondi supporters, were United States Fleet are begin- More than 100 ships of the made in the villages of Meng- kuangeand Kemayan, on the rail-ning a two-day assault on Vic- way from Gemas to Mentakab, ques Island, in the Caribbean

Royal Air Forca

planes Sea, today, the military corres swooped with bombs, rockets, pondent of the New York Times, cannons and machine guns on Hanson Baldwin, reports from the suspected camp, reported one of the ships off Puerto Rico. by an informerto be well-

Most of the manoeuvres wif equipped and in complete con. trol of a big area.

The informer suid Ave Jap anese officers were in churge of the camp, which contained more than 110 armed Chinese, Malay and Indian-bandits.

he devoted Lo ગ spectacular

bombardment of the coast with shells and rockets, whlte planes. from aircraft carriers will drop bombs and rockets on the is land.

Tomorrow, 5,000 Marines and 4,000 soldiers will swarm ashore in a mock Invasion. The informer claimed that the

Another dummy atom bomb bandits had Japanese anti-air-will dropped over the fleet off craft guns, which had fred on a Vieques Island. It will possibly British plane, and three Jap- bn titretcs? unese Held guns hidden in the to judge the effectiveness of the to explode under water jungle with many rifles, Sten and Navy's experimental Bren guns, grenades and large against atom bombs.

The first dummy

atom bomb was dropped over the deet on Sunday. It "sank" a destroyer and "damaged" the aircraft car rier Franklin D. Roosevelt (45,- 000 tons).--Reuter.

slocks of ammunition.-Reuter.

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CONSTITUTION

FOR GERMANY

Frankfurt, March 1, Tho three. Western mary governors today talked for six hours on the draft constitution for Western Germany and after- warda General Lüclús ·D. Clay sald they had reached widg agreement.

and

General Clay, General Sir Brian Robertson (Britain). General Pierre Koenig (France) fixed another meeting for

to- morrow. At that meeting they expect to finish a memorandum to the Constitutional Assembly outlining what they had found wrong with the Assembly's pro- pased constitution-United Press.

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