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ERNEST BOREL
CHINA MAIL
No. 34657.
Nationalisation of REDS
China's economy seen
The Chinese 'Communists intend to nationalise China's finance and economy to the fullest extent possible, a Shanghai meeting was told last week, oc- cording to United Press.
Mr. You. Sli-sah, chairman of the East China Military and Political Commission, said this was in accordance with the principles fald down by Chaleman Mao Tse-tung. He was addressing representativos of government organs throughout East China.
In order to stabilise China's financos, Mr. Yua said, the principles of unified control of finance and economy must be followed. He said it was of paramount importance to ravise the system of taxation, which is now imposing a heavy burden on the people.
The chairman pointed out that the government has been doing its utmost to help private industries by granting loans, and allocating raw materials. The re- lationship between state-owned industry and private industry should be properly adjustað.
At the same time, other Shanghai reports said the authorities have begun a large-scale registration of unemployed workers who will be assigned to work- relief projects-United Press.
B and S ship back from Shanghai with mixed cargo
The Butterfield and Swire steamer Payang, the first ship to leave Shanghai after the sink- ing of the Philippine ship San Antonio at the mouth of the Yangtse on July 24, returned horo yesterday after an uneventful trip. She sailed from Shanghai on July 29. The Poyang took the usual course in the Yangtse South of House Island between the wrecks of the San Antonio and the ss. Kiangya, which sank about three years ago. The wrecks of both vessels could still be observed during low tide.
Fist fights in New York peace rally
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DRIVE AGAINST FLOODS IN Colony blacked
DRIVE AGAINST
U.S.
U.S. DEFENCES Yanks hold firm after. general withdrawal
S. Koreans take Yongdok
Tokyo, August 3.
The North Korean Reds smashed in force at the Southern end of the new American "no retreat” defence line only 30 to 35 milos West of Pusan today, but the 24th Division units were re- ported to be holding firm.
The Communists struck after United States troops holding the Western flank of the Allied beachhead completed a general withdrawal of up to 15 miles on a 65-mile long Western front and dug in with fresh Marine units in the line with orders to hold at all costs.
The planned withdrawal swung the American line back across the Nak- tong River to within eight miles of the big transport contre of Taegu, provisional capital of South Korea, in the contre. The American and South Korean forces,
now nearly a
numerical match of the 80,000 Red officers
man North Korean Red army, dug in today along the river borders of a small beachhead with orders to hold it at al! costs.
This time, most observers here believe, the United Nations forces have a reasonable chance of hold- ing and turning into the first stages of victory the retreat which has carried toward a South East Korean Dunkirk.
infantrymeni
The defending were still thinly spread along the wisting Naktong River line today but for the first time they hid strong enough reserves to call upon in dealing with Red break- through that the Communists ware
the plain
¡According là Mr. ‘A. Bartley," sure to 153: Bouth: Mono
osastal
in the far 20-mile wid leading to the beachhead's only good port of Puern, the Amert. cans tonight faced their gravest test. There they had no
natural river defence fines and the Communiste were reportad, to be throwing in all their res
to bolster the Bixth Division's assault down: the Chinju-Pusan highway,
Second Officer of the Poyang, the San Antonio is now lying at a position 5.7 miles to this East of Kiuton Beacon, and 5.8 to the North East of milles Clump Beacon, or about 40 miles from the Woosung Quarantine Anchorage. When the
corvos Poyang passed by, the funnel,
the two mosts and upper part of the bridge of the San Antonio could still be observed, he added.
U.S. defence line
prefer suicide
to U.S.
capture
Tokyo, August 3, North Korean officers' have killed. themeolves. whan
capture by throstaned with Americans, a mentor, United States officer aald today.
The Americans had cap. tured no Communist above the rank of Second Lieu- Tenant—and only.
destroyed thatched roof mud huts, which are North Koreans
places favourite hiding
for tanks and other military equip ment. In the day with long fields of are for Infantry and close air and artillery support the defenders can make the Reds, pay heavily asault on the for any frontal river line, .But by night the sluggish river as narrow as 100 yards and as shallow DS Avé feet in some places becomes highway for stealthy infiltration by email banda of North Koreans
Vital blows
HONAN PROVINCE
Honan provinge lä suffer. Ing from its worst flood' in' 20, years according to the pra... i Communist "Ta "Kung Pa yesterday.
The newspaper: In a report from Hankow, said that thers are, 760,000 flood: refugogs; in the province, and that koma 4.140,000 mow 'bf land lun- der water.
A total of 24,845 houses has been destroyed by flood water which have inundated 24 counties in the provinça:
..
An arcs of 827,000 niow In Hope Isalas' flooded;' 'In Kwangtung, ́· 198,000 . : mow! Hunan, 188,000.mow: Klangal: 40,000 mow; and In Central- Bouth China; 6,380,000 mow..
Renewed KMT air activity
out last night for 20 minutes Electric Co. refuses to explain breakdown
The entire island of Hong Kong-from North Point to Aberdeen and from West Point to Stanley-was plunged into dark- ness for more than 20 minutes last night when the electricity and power supply suddenly stopped at 8.20 p.m.;
In sua-
Restaurants carried on business as usual with candlelight al- though the Dalry Farm to the Windsor House closed its doors during the period of darkness.
At the Cheero Club, where more than a hundred service ment and their Indy friends paused for refreshments, candles were also used. The juke box and the fang- went of
The Hong Kong Electric Company, when approach-
ed by the "China Mail" last night, refused to. explain the breakdown in supply. A Euro- pean official on duty at the North Point power plant said he was not authorised to make any statement,, and added that the Company's head office would issue a statement on the sudden stoppage this morning.. Taipeh, August 3. The suspension of électricity For the second day running, supply affected almost every the island, except Nationalist warplanes took off person on from Taiwan on missions as those who turned in for an yet undisclosed but presumed early night. to be attacks on craft the Reds
Trams screeched to a stop their
were tracks. ifts might use
for an assault on pended in their shafts, work this island or Quemoy
men's electric drills paused, The Pereu ce air activity te pumps, stopped pumping, dancing generally believed to signify the reet in the city's enborets relaxed General MacArthur gave sanction to attacks on Red craft by ded and night office workers did hidas. air-conditioners and fans stop. Generali-simo Chiang Kai-shek's their job by candle-light.
"Candle-fights lend a romantla though nu one in warplaner
When darkness came on hun- official position would admit this.dreds of people
'air to the place but we don't 021 their Way. There is much speculation that home were caught aboard the
want it to happen often,” said, MacArthur will not rely on the trams, and most of them stayed
lady attendant of the Club, At the movie houses' fans want- Seventh Fleet alone to safeguard on throughout the suspension of
ed to know when the show would Taiwan but will station United electricity supply anticipating
The go, on again, :- States pir units on this islend its that their journey would resume
managements of all theatres reported that their the defence of which America at any moment,
the and Nationalist, China. are Boy
Thirty minutes after the lights chedules were delayed open alles.
went on again hundreds of people. They also reported that although
duration of the break fors If this speculation, is correct, were still crowding the tram their air-conditioning systems ts possible that roveral, sir banes lalands along, Des., Voeux Road their cur on Taiwan might be put to excentralla board the cars which went dead the theatres were fre exils) and during the
thy con
blockout.
"Romantic air!!.
those, he added, ・ Tour of on the Kuüm Riverging pool hiskve, use for an hour after sard, Franzito.:] Kupt-cool; by' tho upèning of the
forces weca.night-crossing parties regrouped The D ZIREN USK Eother-li a÷row af five or six
United Stato forces were racjon Ihren Voeld. There particularly,sausioun: to capa kure a tank commander, but on the two or three occasione when this seemed likely the commander committed sul-
The average age of the ari- sonara was 22, Many, con.. scripted early this year, had received only a „belsf. tcain. Ing. This included political indoctrination-Router.
Mr. Dean
behind, the American Hoes and Secretary struck vital, blows against the Acheson, that the United States -24th Division which had †19 thinking' rof sending" urma, te
battered..reserves to throw in the Nationalists to strengthen the
GO
to
defence of Talvan is halluved. here to have followed specifle recrminendations on the subject by General MacArthur.
4
the
Dancing hostesses, getting bored.
Cable and Wireless has its ewn generators" and the trans.
A
Rome, August 2... Cardinal. Luigi Pavitrade. died.
The Cardinal had been ill for some days...
Extra buses Meanwhile, a congestion was while waiting for the lifts to bring up, customers, dariced to crested at the vehicular Terry the lure of Whispering "in the the gups. plug
whart where the China Motor Dark in one night club. Behind the Americans' Western
Hua bán u turminal "awith! front run a serlas of fair, unpaved
hundrade. of... fram/commuters North-South roads and fow
diverted there. Extrane · buses'. barely passable East-West trails
Meanwhile, Chinese quarters
were added to the Happy Val-mission of messages was not af through-
h-range after range of bar-claiming to be in a position to
ley, and Talkoo Dock: ifnos, fected. ren. rugged mountains.
know, say that in the event of ni Lifts In many bulldings' were New York, August 3.
The main North-South railroad no world war breaking out, the trapped and those in hurry Two thousand left-wing
trpm Fusan
to Taegu pastra Chinese Reds "bove more than had to walk up or down several. "peace"
through half a dozen tunnels ex- half a million troops ready to storeys. banned marchers,
Lift operator: Cheung CARDINAL DEAD. from staging a Union Squard
Kim-hung. of Telephone House, The division fell back to within treinaly vulnerable to guerilla throw against Hong Kong.
An attack on the British Co-reported that he was shut infor 30 to 33 miles of Pusan simultane demoltion raids. rally. battled 1.000 police late
Not officially closed.
In this uren rice farmers have tony, they assert, muld be mounts the entire period between.... yesterday in Ast-swinging
The broad, shallow Naklong quely with the withdrawal of brawls that led to 13 arrests. Mr. Bartley further stated that liver encloses the 90-mile long other dements of the 24th Divi-extended their paddies up thoed by the Reds within four hour mezzanine and first floors today in Rome st the age of 16.
sion, unspecified South Korean sides of mountains to get more of receiving a go-ahead from Workmen with electric drills, The demonstrators waited un
thb Communist authorities in beachhead on most of the North units and the First Cavalry Divi-production, but the ground is not Moscow.
We working on the tram tracks, out- "the home-going rush hour to Shanghul had not officially de- ern front held by the Southlon on the cast bank of the Nak very productive and residents of Such on attack, the sources try side the Hong Kong and Shanghal His death leaved 17 vacancies make their dellant move
Korean army, then bends sharply
In the Sacred Colleges, of: Car- port closed following
the South and forms the tong River along almost its entire the area, in common with most question state would be umod Bank, stopped their work. "We want peace-open up the the
North South course.
Koreans, have an incredibly low with a full-scale Chinese push into
The electrid pumps installed at dinals, an Square," the marchers chanted king of the San Antonio.
The
withdrawals compressed standard of living passing less than 10 miles West of the United Nations beachhead, to as they suddenly formed ranks was reported here. The Com-Americans Western defence line Inunist authorities Shanghai
It is doubted, though, whether the Bank of China building site. Pope Pius XII is expected to West of the river the valle South East Asia.
to keep the excavated basement ill there vacancies, bringing the among the throngs going home only informed all ships of the cu
orders ranges from roughly 150 miles, and
yards *300*
to the Reds would simultaneously dry went dead, resulting in the College up to its full strength of Fifteen of the
miles short of the from work.
Consistory Isfe this year. went out to hold the new lines at three miles. The stream self is try to invade Tefwan venture flooding of the basement with 70, at Southern coast the gray green all costs.
the as wide as 200 yards. In some which. MacArthur gel. Union Square is the traditional position of the wreck of
Cardinal Lavitrend resigned the niorg than six feet of water. Antonia, which according to
Naktong again bende sharply to stene
banks-hard of New York pap box val
spokesman for General places with board made on arutory, When the mounted police ov
vehicle's the the East at its junction with the MacArthur sald' the Commanists frond vel extend... { "ninion, would stand, little, chance | workman: told the "China Mail". Archbishoprie of Paisrino because, Cardinal was Is actually lying at
during Wednesday night's power of 1-health. The Poyang, bote down on the demonstrators point about two miles
Nam River, 35 miles North West are continuing their greatest
Although Red spokesman con- shouted "Cossack," The mounted policemen rode East of the position given by the usan and lows. Into the effort on the Chinju-Pusat and picture, is quite similar to the mination to"""Uberato”, Taiwan; ifft steel beams to their positions, with' hit 'matters touching) mon-"
In general the Naktong River inte to speak about their deter stoppage there was at least 13 feet Prefect of the Sacred Congrega
of
Giant cranes, used to tion of Religions, which deals, water.j Korca Stralis on the
СУСТ communications their horses on tò sidewalks. Fist Shanghal authorities, Mr. Bartley outskirts of Pusar Coastal i chinhao and Pusen....
ports of Masan, older, ill-fated Kum River line Nationalist quarters the ports capture. Somewhere along
except now the United Nations that they no longer mention when topped also, the workman sald. asteries and conventsRouter. Juries were reported and at least Other arrivals on the Poyang plains East of Pusan the Yanks He said the Communists have have more men and more. ma- this will be achieved.
Two sign-waving demonstra- they heard a report saying that paddy low and traces of a third in that area la an Press.
disclosed that while in Shanghai rice paddy lowlands interlaced two divisions and perhaps a part rhhes to back it up.-United Previously, the Reds used to tors were removed from electric the San Antonio sank after hits the route of the Communist effort to press the campaign to a 1 light
quick end before United States a wreck, not a mine as was drive to pinch off the beachhead reinforcements become effective. department hook · und ladder Company
they
clared the
145
Kervation
added.
fights broke out. Several in-
one window was smashed.
EL
In
Satt
vh-
to
further
of
Western to
must make a stand across the
Holes by police and a fire rted by the owners of the supply line.
breaking up the
The
vessel. This could not be con- The terrain along the plain spent an hour firmed, but it might have been contains a few rolling hills but Heavy losses
demonstration possible 08 many wrecks are none of the rugged mountains
of the marchers: arrested known to be in the vicinity, they that cover most of Central Korea.
rged with assault or dis- added.
conduct..
The New York Labour Con
ference for
or peace sponsored the forbidden rally.
The conference has led in o petition urging the outlawing of Government atom bomb. officials have called the petition:: Communist-inspired,
"Penca
rally" t to demand 'media=|
tion in Korea Associated Press,
Air patrol
Vigilant ale patrol by United States naval planes over the confirmed Talwan Btralt was
On the East Coast Bouth Korean forces pushed on to the North after recapturing Yong- dok, 88 miles up the coast from Pusan, with the aid of big guns of an
American. 'orulaer and escorting destroyars.
communiqué Issued by the Eighth Army headquarters in
by the same informants. While the Poyang was sailing in the
¡A
US.
The saw. American planes four times during a single day.
-
axis
t
The spokesman Esid the Communista have lost their preponderance of tarik strength and that their heavy crualties were being replaced by 'un tained men. He said [the] tide turna the Communist fosse will be falt more The
Commander of
correspondent
of the
Air strikes against factories
... Tokyo,” August 3. General MacArthur's quarters today announced, the third airstrike against North Koreans sources of munition
of success.
Boint
nut
boast they would conquré. Talwan some time this year-Associated Press.
SOVIET ADVISORS MOVING SOUTH
An undetermined, number of Soviot technicians working... in, Shanghai's Hungled area: was en-
WECK trained last "for a Southern destination," according to a re liable report from Shanghal, re-
Associated Press Informants the group. k.
lending for th belovedly
arez, across ́th: Forchow-Amoy straits trom Talwañak AG
The report added that accord
The conference called the Talwan Strait on her way here, }-Korea at 9'p.m. (11' nr. GMT) Division which is holding supply," and ", sald: the "results"
sald the only real fighting of the two-thirds: way between Masat obtained were good, ing to grapevine information day was in the East and South and Chiplu··tőld United Press | The text of the communique available in Shanchal, the tech coast areas. It said the South
Bennyhoff followe Robert Each time, when a plane was Korean Third Division was that in preparation for both dowThe third major strike within Shanghai Red soldiers on the nicians had been instructing met, it circled over the British tance to seize high ground North all civilians had been cleared out chemical and munitions manu
attacking against stubborn tests-
fensive and
offensive PL action
five days against North Korean handling of Boviet-built guns and of Yongdok.
airplanes Associato Press, The same
informants further
of the area.
Bar | facturing:plants was made today With revealed that on July 18, when
Any civilians found in this area thers the UB. Far East Air Forces AU FOOD CMT (8 p/m2 UKAT) a trõugh Extends from N Indo-Chins to a depression the Poyang, was on her way to
would be arrested. If they do not B-29. superforts again "dropped
large
The weather ship twice and flew away,
oraz Lulchow Peninaylą, ajong dae & Chine the North from Hong Kong, she cepat, astum Formous, to a depreseldati was spotted by a Nationalist war-
8 China Chá Châlon' Ban and 'the rosë to. 2 the 5 of Japan, bar
and showery, RM KARA
2. Testerday's (fiouldering) {
Strong assaults
• Division, units with heavý urill-
halt for the police they would more, this 100 top of high On other pages
be shot because guerillas and plosive, humbs.
|livės,
00
Reminders
orar, the 5'. Leoshots and lonother ship off Tunshan between On the South coast, it said. discruised Hods mixed with Today arret was the 'depressiesTM 101 the W of Iwodima," Thẫn, Swatrw and Amey, The Poyang Communists bombarded 24th civilians have cost already too Bogun chemkal plant in Konin, Page 2 Eb-low-preneurs, "xyatının " covers the whole owns then taking shelter againstlery and mortar, fled. - Tho hơn- Aerican and South ZWELTON | about threo galleg up, river from i› Personalia.
strung galo. The warship signall
the explosives factory almost Page B Today pretres-Moderate or seeks ad to the Poyang, eaking for the bardment was being followed at Yesterday and today American totally Kasteels winds, yeering Southerly. Claudyname and destination of the intervals by strong infantry stand
and Korean Republic engineers July
Barclay on Beldss British vesel. The warship then all the comminique "eld. reported the destroyed virtuai
Loday bomba One talled oft, the informants' said.. "At last reports," the community at the Naktong liver beldaus was dropped-visually; and thred Page: 4 min
While the Poyang was in guading diendly forces and ferry bosta still landing fourth by radar. Some the was Cinema Page Shanghai, the crew
still firm and had glykn ball including the guards, were allowed to so no ground. During the morning the highway and tall bridges encountered, according to return. Page 737 438
some innitration aroups of North W Waogwan over which supplies, ing crews The bombing results ashore by the local authorities, Morgans attacked a commend post must roll to the First Cavalry were generally good they report. member of the crew said Thy and some grillery positions tut elements still holding forward od, and Gres were seen by som guarda arms had been locked up were driven back in achttiene In the Girection of men arch breaks in the aboard the 'vaisel" as soon as so stance.MANIZIRALA
Chiryo and Kumchon, which they clouds. docked in, Shanghal, he added, the 24th Division late roster deserted as a phase of fealians,
ng returned with 200 day and early today pay up the wee
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