INDONESIAN TALKS FACE NEW HURDLE

ARMS BILL APPROVED

Washington, September 26.

The Hague, September 26.

*** | Closely following the agreement on the political

The Senate and House con- 1oreca today agreed on the $1,314,000,000 arms ald pre- gramme, including $1,000,- 000,000 to rearm

nations

Act

Europe.

Atlantic

of Western

Spurred by last week's an. nouncement that Russia has exploded the atomic bomb the House conferets reversed their earlier suggestion which would have clashed military aid to Europe almost by half.

The original House mez- sure carried only $550,493. 000 for these countries. They made it plain that their wSIE. Ingness to accept the larger Senate figures was dictated

* Russian

by President Truman's nouncement cf atomic explosion,

The

overall Senate Bill, Including aid for Greecs, East. Turkey and the Far provided $1,314.010,000 against the $819,505,000 voted by the Bɔus-United Press.

Status Of Indonesia

Manila. September 26.

The "Daily Mirror" said in an editarial today that recent news on developments at the Hague "seems to suggest that Instead of an equal partnership under the Netherlands crown, the Indonesian Republicans are going to get commonwealth status contrary to their proclama- tion of sovereignty four DEO."

years

side over the setting up of the future Indo- nesian-Netherlands Union, attention has been switched over this week to the next major hurdle the economic and financial agree ments between the two countries. Both Dutch and Indonesian circles feel that this facet of the negotiations will be the most difficult and important yet. After a very brief easing of the tension following the Namur talks, which led to a broad agreement " on the political questions, a stiffening of the atmosphere has been noticeable during the week-end:

to

be covered. According 10 usually reliable sources, the sub- committees dealing with these questions were not able to make any progress up to Friday even- ing, particularly the ones dealing with debts and future financial arrangements.

On the economic and financial To be specific, the Dutch dele- relations between the future In- gation has suggested that there donesian State but The Notatould be a Dutch Commissioner lands, there is still a vast gap who would examine and super- vise the framing of the budget and Bnancial policies of the new State: the Central Bank, ci In- donesia to be created would be as independent, organisation, the President of which would be ap- pointed in agreement with the pose and the Directors in con- Dutch, sultation with them: the amount of loans which the Bank could advance to the new State would be strictly restricted; and the kan raising and currency issuing make an effort to narrow the gap powers of the new State would between the two views.

also be restricted.

It is learned that the Steering Committee will meet tomorrow afternoon to consider the various sub-committees

reports and

Disagree On All Points

The Indonesians disagree on all these points.

Sources close to the confer, ence today shook their heads and were inclined to be gloomy about the outcome of comer. row's meeting.

They freely they insist that used the

"deadlock" and term went on to say that if no agree- ment reached on the economic and financial side, the work to far cone and the agreements reached would mean very little.

think

They were inclined to that the fate of the entire round- table conference might be settled tomorrow.

National Debts

The financial matters comprise

and

Fundamentaliy

if they agreed to these conditions, economically Indonesia would be no more than the colcay of old. They agree that, apart from the large in- terests which the Dutch would continue to have in Indonesia, there would be so much identity of interests between

consultations

the

with

two

THE CHINA MAIL, WEDNESDAY, SEPTEMBER 25, 1949.

Marshal of the RAF, Lord Tedder, and his young son Richard, watch the RAF-U.S. Air Forca 250 plane fly-past over London to commemorate the Battle of Britain-AXO ► elated Press Photo.

German Rockets

British Captain Criticised

London, September 26. Captain Douglas. Lee of the i Magdalena told a Transport Ali- istry inquiry court today that the brand new, 17,947-ton --liner of which he was Master had been set off her course; and was ig dangerous position one hour before i she grounded on rocks outside Rio de Janeiro an April 25,

Captain Lee said Chief Officer

Senior, whò had never

ap- proched Patrias Island before, was in charge of the ship -when the accident occurred; He did not explain why the ship's course was changed at 3.40 am.

i

Captain Lee himself had in- structed the officer in charge to wake, him up at 4:30, he said. He was told of a change in the course SLENSKU was dressing at 4.40 ) in the morning, the skip struck a reef.

Richard F. Hayward, for the Ministry of Transport „tels Capt. Lee, "I suggest you ought not, to have left that part of the naviga- tion to your officer but that you ought to have been there your self,"

Capt. Lee admitted that instead of going through a passage half a mile from unlighted rocks the ship could have been steered to- ward the open ocean side of Palmas and Tijuca Islands.

But, he said, ne was “quite con- fident" in his First Officer.

The Magdalena, on her maiden voyage from. Buenos Aires to London, was lost less than 24 bours after she struck the reefs. The inquiry was adjourned until Tuesday.-Associated Press.

Going To Russia SPELLMAN'S VIEW

Berlin, September 26:

the German scientists are producing for Russia a trans-ocean rocket they designed for Hitler just before the war ended, Soviet zone in- formants claimed today.

| countries that they would have

prior Dutch Government before taking which might affect action any

interests. the Dutch inte

The Indonesians take the stand economic that the Central Bank will be a

main in the The editorial said: "What has

national and State-owned back. been achieved at the Hague after the magnitude of the national

the President of which will be little more than a month of debts to be taken over by the

appointed by the new Gover- parleying is only the preliminary

new State, banking and cur-

ment and the Government will to the real business at hand. The rency policies of the new Indo-

have the right to have their own sovereignty of the. Indonesian Re-nesian State. trade and com-

Directors and Executives on the public will be put to the test later.

and leases and merce

bank. sions held by Dutch nationals and others in Indonesia.

The

national debts which the Dutch claim the new State should take over are estimated around £610,000,000 and include all ex- penditure incurred by the Dutch

"The most important question here is: Do the Dutch recognise the Indonesians claim they have been sovereign since August 1945 .For a long time after the In- donesian Republic has formally become a partner of the

Nether lands government the question of real sovereignty will remain un- settled. There is the danger that the transfer of sovereignty, which is already agreed on in principle, will be on paper only."-United Press.

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KYTICES-

Government in Indonesia up to the time of transfer of sover eignty.

very

their

The Indonesians are adamant and specific in stand over this question. The are prepared to take over ali debts prior to 1942 amounting to under £200,000,000.

They have refused to take over any part of the expenses of a military nature or directly in furtherance of the Dutch policy of *Lighting the Nationalist Movement."

They have, however, agreed to examine items of expenditure incurred by the Dutch which had contributed to the material de-. velopment or benefit of Indonesia.

Repayments Spread Over

which

In all other matters the new Government will function as 2 sovereign independent

Govern ment. The Dutch Government will, however, have the beneft of knowing in advance any steps which the Indonesian Govern intend ment may

to take in Enancial matters

Beyond this. the Indonesians are not prepared to go.

The Indonesians view is the Dutch proposals would mean permanent on any action the new Government would wish to take for building up their na tional economy.

ence

The Indonesian stand generally is that economic independence is the crucial issue of the confer- and that high-sounding phrases on the political side would mean little if the new State could not fashion its eco- nomy for its own benefit.-Reuter.

URANIUM DEPOSITS

IN SOVIET ZONE

In the field of the repayment of agreed debts, the Indonesians

Berlin, September 28. may also ask for a moratorium The Franch-licensed news- of 10 years to begin with, after paper, Kurier, today reported the

period the

repayments discovery of new uranium de- would be spread over a stretch posits in the Soviet zone of Ger- many. The newspaper said, the deposits were found in Mansfeld copper district, 20 miles North West of Halle.

of years.

But the real crux of the pro- blem is in the future financial and economic policies of the new State of Indonesia, ** which agreement now looks remote. -

The Dutch claim that so long 翩 Indonesia is: Indebted £4

the

The Kurier said, 1,000 workers have been hired to exploit the deposits and a Soviet trust has been formed to work the mines. "There are signs that a second Holland; the present policies mine is being constructed," the should continue and no action newspaper said. It is in the would be taken by the new centre of the East German State which would adversely | uranium region near the Czech affect the Dutch and in any border where 55,000 Germans case; only after sh ́agreement were reportedly mining uranium, | with the Dutch. Government. --United Press.

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The

informants, who have access to officers of the Soviet backed German police, said the mom-. moth underground munitions plant at Peene- muende, on the Baltic Coast is turning out rockets at full speed.

Allied Intelligence Officers said they knew of certain activity" at Peenemuende but declined to elaborate. One of them explained:

*

Russia is making munitions in Germany; its a high level mat- ter and not for discussion here.

ON JERUSALEM

Montreal, September 26. Roman Catholic Francis Car- dinal Spellman of New York is interceding

with personally President Truman to have Jerusalem made an international city, Reverend Brother Raphae Quinn, Custodian of Holy Places, disclosed today."

The Franciscan Brother, who is on a vacation here after 28 years in the Holy City, blamed ele ments of the Israeli force for Не damages to sacred places. Material for research and test said. "They were wholly res- ing go to Peeneruende from the ponsible for defamation, bomb- Aeronautical Institute in Vorsing and destruction of many balv places within the city. On the hilovgrad and from a Moscow in- stitute

hand the Arabs always respected Christian Iroly places" He named King Abdullah of Tanzjordan as a "great and good friend" to the Franciscan Order.

Production of "re lilies" is under- carried on in the wast ground caverns which the Nazis The new rocket, said the Get-fitted out for rocket and torpedo man informants, was dubbed plants and testing grounds. "Fire Lily" by the Nazis who never had a chance to use it.

Most of the rockets are as- sembled in "Hall Three” of the secret munitions plant they said: The name comes from the Hail Four" is used to manufac fact that the rocket "blossoms"

ture.newly devised jet engines: into eight to 10 separate aerial that have increased the

speed, bombs when its arrives ever the range and accuracy of the new target, scattering destruction

de" į rockets, over a three square mile area. are Its range and accuracy enough, the report said, to hit a target 5,000 miles away.

The informants said the entire population of Peenemucnde was evacuated when the Russians began

the rebuilding'

rocket The installation is now

Earlier today both Allied and ploded by a barricade of high

German sources confirmed that Russia had installed a chain of rocket launching platforms in Eastern Europe stretching all the way from the Baltic to the Black |

Sea

Peenemuende was wrecked by Allied bombers during the war and then, rebuilt by Eussia with from the war, prisoner labour camp at Blagovestro in the Ural Mountains, the intermants said.

:

:

voltage wires and mine fields and patrolled by 3,500 members of the Soviet MVD security police who live in former German army bar- racks at Topposch: -

Two flotillas of; speedboats are used to guard the seaward aps. proaches and all supplies for the plant and workers are delivered by sea for security reasons, they added. Associated Press.

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