Farouk at gala dinner

-gypt pictured here with some of his guests at the gala dinner he Laft to right; El Hain! Hussein Pasha, widower of the late Prin. Begum Aga Khan: King Fansuk, and Mrs. Adda Kahli

gave in Deauville, France. cers Healkan of Egypt; the clated Press Photo).

TRUMAN SENDS

(Asso-

SCAP

COPY OF LETTER

ON FORMOSA POLICY

Washington, August 29.

President Truman today made sure that General MacArthur knows exact- ly what the United States policy is on Formosa. He despatched to the Far East Commander a copy of the letter he sent on Sunday to Mr Warron Austin, the American representative in the United Nations. Mr. Truman's message to General MacArthur followed a Presidential direc- tive that the General withdraw a statement on Formosa, which Gen- eral MacArthur had sent to the Veterans of Foreign Wars convention in Chicago.

Without comment, the White House released a copy of Mr. Trumun's message to General MacArthur, sent this morning,

On

MacArthur's job not to decide policy

.

Washington, Auguet 29.

The Speaker of the House of Representatives, Mr. Sam that today Rayburn, oald

nat the conduct State* foraign

General MacArthur was responsible for United

public and his

subordinates

ill would know where we going sind by what route."

Full right

SO

are

The "Herald-Tribune" editorial has said: "The Administration full right-indeed obligation to call upon General MacArthur to withdraw his statement which conduct of might embarrass the cond

The unfortunate foreign affairs.

of the matter is that the aspect of order of withdrawl came so late after the text was distributed. The Impression thus created (on the heels of the Matthews Incident) of confusion, if not dissension, among high oficials of the Goy- ernment will certainly not

abroad hance American prestige nor contribute to unity at home,

"In this critical time for

The message said: "I am send ing you for your information the text of letter which I sent to Ambassador Austin dated August 27. I am sure that when you examine this letter and the letter which

Ambassador Austin ad- dressed to Mr. Trygve Lie August 25 (a copy of whlch, I. am told, was sent to your head- quarters that night) you will un- derstand that my action of the 26th in directing the withdrawal of your message to the Veterans

Foreign

Wars was necessary. "General Collins and Admiral Sherman have given me a com- prehensive report on their con- versations with you and on their -visit-to-the-United Nations-forces-his-own-field-and-does-not. American-people, buretened by a

of

now fighting under your com- Their reports mand in Korea. were most satisfactory and highly gratifying to me."

tin.

White House silence

of

polley,

In

to

d

atatement referring General MacArthur's statement on Formosa, Mr. Rayburn eald, "I think that General MacArthur has

Д

great job to do if he stays in

try to run the foreign policy of the United States."Rou tor.

Then the President appended is both his constitutional privilege the text of his letter to Mr. Aus- and his duty subject to such as the congressional limitations The White House meanwhile Constitution may provide.... Mr Truman is therefore quite right would not say whether the. Prest- dent has heard from General in repudiating divergencles from sittee the Defence his policies within his command Secretary, Louis Johnson, acting though it may be doubted on Mr. Truman's orders, told the the method he chose In the case General to withdraw his words of General MacArthur was really

the best available under the clr Asked whether any word had cumstances."

MacArthur

on Formosa.

that

en-

the

legacy of past errors and trou- дек of bled by

recognition

be a dungers, there is bound to

the debate in Congress and in Press over the cource to ba followed, But Administrative officials of whatever rank cannot enter this arena of public con- trovery without jeopardising ful- Ailment of the responsibilities en- trusted to them."

The "Daily News" said Mr. Truman dealt General Mac. Arthur "a crude, ruds stab or you might call it a kick in the tooth."

come, from General MacArthur, The paper said that Mr. Trument, said: "President -- Truman

the Press Secretary, Charles Rosy declined to answer.

MacArthur camo as somewhat of

man more than most Fresidents delegated the conduct and ex- American foreign

Today's message to General position of a surprise, because Mr. Ross had policy to the Secretary of Stale

and the State Department with

said on Monday that the Presi-out proper co-ordination of the dent regarded the Macarthur in- political and military points of eldent as closed.

Truman supported

view. It said General Mac- Arthur's statement "Is an obvious effort to bring the military view- point forcefully to the attention the the of both the President und

not

The paper, after, quoting purði

MacArthur's of General

state-

has been shilly-shallying about Formosa for months and tried to keep General MacArthts from stating his view of the matter to the American people.

We do know

General whether MacArthur is right or wrong on this subject. But wo are con- vinced that the people have the right to know how he feels and A "New York Timas"

that Mr. Truman tried a petty editorial, commenting

tyrant trick in attempting to shut MacArthur Incident, sald Pro pubic.”

General MacArthur up." sident Truman acted within his "The Times" concluded: "In

Not political *rights when he ordered that respect he may have ex-

The "Daily Mirror," Presl- General MacArthur to with ceeded his competence. draw his Formona atutemoni. dent Truman in general has out It was printing the Mac- The paper sald: "There can be been right in his foreign policy Arthur statement in full, only one voice in stating the decisions and courageour in their "we are not afraid-as the Tru- position of the United States in execution. But it is none the man Administration apparently Is-to let the public and the the fold of foreign relations and less true that he could increase that volce must be the volce of his service to the nation by world judge between the views of General MacArthur and the' the President, To determine the taking more active charge of our

policies of Mr: foreign polley of the United foreign policy and by doing more discredited States and giva'expression to it, in

General MacArthur,

expounding it to both

the Acheson.

British Under-Secretary calls on Marshal Tito

polating

wald:

WED mado Marshal Tito the growing strength

no

ut the West and its determina- tion to support the United Na- tions policy in Korea..

In view of the known desire of the Yugoslav leaders to improve relations with Greece, and Italy as quickly as possible. It was also believed that one or both of these problems had been dig~; cussed..

Bled, August 29. The Marshal had not changed Ilieved to have tried to impress of Mr. Ernest Davies, British his opinion, which Under-Secretary of State for public before the Korean wat, world Foreign Affairs, said here today that there would be that he found Marshal Tito, war in the near futuro,

Mr. Davies, who later left for with whom he spent three Trieste on his way to Vienna. hours yesterday, very friendly. said that his visit had convinced Mr. Davis lunched with the him that Yugoslavia was a coun- Yugoslav leader at his lakeside try with a future. villa in this resort. Marshal Questioned on his lour as Tito looked sun-tanned and, whole, which took in Italy and Mr. Davis said today and the Greece as well as Yugoslavia, the Diplomatic circles herd-foll Yugoslay leader seemed an im: Minister said that it had been that Mr. Davies visit would: ro

sult in an eventual Improvement pressive personality, very well- very successful.

of relations between Yugoslavia informed on courront alleirs, or gest

West Asked what Marshal Tito His object, he said. was to and the

tomarow thought about the future, Mr... cstablish closer contact with Me Davies Davkropiled that he appeared the various Governments and visit Dr. Leopold Figi, the? Aut econddant of his ability to defend to exchange views on subjects trian Chancellor, and will return Tugoslavia against any fursate to of mutual, Interest.de appear to England at the end 7 of the her independent line:zden servid He would not give details of wook after touring The Brillia

"

THE CHINA MAIL, THURSDAY, AUGUST 31, 1950.

י

ECONOMIC REPORT ON PAKISTAN BY BRITISH MISSION

London, August 29.

A British industrial mission which visited Pakistan carlier this year declar- od today that a settlement over Kashmir would go for to create `tho feeling of economic stability without which it was difficult to attract aversoas capital to Pakistan,

It was led by Lord Burghley,, Director of the National Pro- vincial Bank and of the Bri- tish Overseas Airways Cor- porntion.

Emergency

The 11-man mission made a three-week tour of West and East Pakistan in February and March at the invitation of the Pakistan Government.

gested that a good deal could be dono in mechanised farming by co-operative farming or through farmer-contractors. The mission felt that it would be best to postpone the extablishment of a heavy chemical industry in Pakistan, East or Wert, as 1t hardly seemed to offer a fruitful or profitable told for expansion in the near future.

Discussing increased exports to the United Kingdom of Pakistan raw materials, the report saw 'no should not reason why Britain continue to be one of the princi pal buyers of raw jute, but the mission laid repeated stress in but the matter of not only jute other materials which Pakistan could sell, like raw cotton, tea, hides and skins and sports goods, at competitive prices.

were

Particularly in the case of teu, the mission mentioned that the export prices of Pakistan very high compared to price levels, in terms of Sterling, of because of the devaluation Sterling:

world

Dealing with increased United Kingdom exports to Pakistan, the mission aid emphasis оп better Pakistan's demands fer prices and better delivery dates. Discussing Pakistan's future economic development, the re- to the Pakistun port referred Government's Industrial policy and said, "We consider that the retention of the requirement that must ordinarily an opportunity

be given for the subscription of certain percentage of the share capital and debentures of now industries by Pakistani nationals is likely to act as a deterrent to Investment from abroad."

Relaxation of taxation

The miraton said that some relaxation in the level of tax ation on companios (as well na Indirect personal taxation) might be well worthwhile to formation encourage. capital and investment in Industry,

was

Referring to power develop

mission ment in Pakistan, the said that the expansion of the country's power supplies vitally urgent and suggested that the water power resources of the rivers to the West of Karachi and Las Beln States might be in- vestigated,

or

Pointing out the difficulties of transmission of power from arcas in the North West Frontier the Punjab, to the main consum- ing areas like Karachi, the mis- sion expressed the opinion that Pakistan can never hope to be entirely independent of steam- generated power,

out the inadequacy of and transport aystems in the country, which were primarily intended for stro- legic purposes, the mission said that every effort should be made for the quick development of They Bald Chittagong as a port, that no immediate development or expansion appeared to be ne- cessary at the port of Karachi,

Referring to the twin difficul- ties of small-size holdings and the complete lack of machinery- mindedness of the rural popula- tion in the way of mechanised agriculture, the mission sug-

after all, is fighting the war Mr. Acheson's policies got us into,"

editorial The Scripps-Howard said: "People reading General MacArthur's well-reasoned un- alysis of the strategie value DI Formosa will be at a loss to un- derstand why President Truman sought to suppress it

"The General properly ro- frained from touching upon poli- tical issues or questions of policy. Ho simply discussed the positiou the military of Formosa from

In so doing, he point of view. did little more than expand upon one of the themes in the Presi- dent's own statement of June 27."

United Press.

:

Light products

measures

in Pl

Manila, August 30.

In the same way, the mission

At a crucial session with expressed the opinion that the development of the country did members of the Cabinet, not yet warrant the establishment President Quirino mapped of works for the manufacture of

The mission sald

for

to

heavy machinery and electrical out a new peace and order equipment,

programme designed There were, however, good mobilise the country's re- prospects for the manufacture sources for a fight to the finish of light products

which against the Huks in the wake there was a growing demand. of last week's wave of depre- that there dation by the rebels in 'Cen- was clearly room for develop|tral Luzon. ment of cotton mills, particularly in West Pakistan, but added that it was for consideration whether It might not be a prudent policy not to try to develop too quickly and until labour was accustomed to industrial conditions and suf- Aclent technicians Bad been trained.

The mission suggested that there was a fruitful Beld for ex- pansion in cottage industries and declared that every effort should

industries be made by thie

in Pakistan to retain the services of British executives and technicians who were now there.

The mission

Included exccu- tives of British textile, chemical, electrical, heavy machinery, civil engineering and agricultural in- dustries,

tu

contains Although the report few now suggestions to Pakistan of develop for fruitful lines ment it should 'prove useful British manufacturing and selling firms in their efforts to increase their exports to Pakistan, Reuter,

Freedoms granted Berlin

The President devoted nearly the entire session yesterday to a discussion with the Cabinet of new measures he is taking to solve the peace and order pre- blem. It was the second consceu- tive day the President devoted ic the internal order situatio as carlier ho had conferred wi national defenen chiefs, Arm

of leaders and the governors provinces menaced by the Huks.

Mr. Quirino ordered the natur of the new national security pro gramme to be kept secret until important details are worked au : and implementation begun.

In the meantime, he indicated that the necessary directives had been sued to Covernment de partments concerned as well as the armed forces to cope with any possible further surprise ralds i the Huk dissidenta on

Arm

camps and towns, such as took place in the provinces of Tarlac and Laguna last week-end.

During the Cabinet session, the President confirmed earlier re- ports that there would be a major reshuffle in the armed forces command, with the abject of Intensifying the campaign against the Huks. He declined to disclose detalls.

this

In directing the withholding of news on his programme at Berlin, August 29. West Berliners anxious to imo. President Quirino said the people were tired of announce- now join the West German Republic ments and promises and were today granted a series of wanted concrete results aud' post- now on, he political "freedoms," bringing tive action. From them closer to their compatriots said, there would be less talk and in the West

the

more action.

But the tarce Western Com-

In the meantime, the Secretary mandants of the city withheld

of National Defence, huperio Permission for Bertin's outright Kangleon, ordered an investiga union with the Bonn Republic.

Until the Allied High Com- oficers in Tarlac City, to deter

tion of Philippine Constabulary objections missioners raise their

mino responsibility for the de- to Berlin

becoming

fence of Comp Makabules, which of Western Ge "Lan

(State) of

was guarded by less then 40 sald

troops at the time about 400 Huks many, the Commandants that they would permit the city

made their raid there last Friday of a

night and killed 25 soldiers. The to have the legal status

well as a city "Land" as

full strength of Camp Makabuls The announcement was regard-was said to be 118-United Press. ed as a compromise between West for Berlin's two-year-old claim incorporation into Western Ger- many and the sustained Western Allied objections on the ground worsen the East- that this would wor West

split.

Pormission was given, however, for West Berlin to adopt the laws of the Western Republic after the elections for a City Assembly in December.

Constitution Approving a new

Commandants for the city, the said that they had made reserva- tions on one article declaring. Ber- lin part of the Republic-Reuter.

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