CORRECT on all occasions

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SWISS MADE

The Easter Holidays

DO

There will be publicstion of either the China Mall or the Hong- kone Telegraph tomorrow (Good Friday),

The South China Morn Ing

will publish 10- morrow, but not on Satur- day morning.

China

Matl

Cate

will Tho publish as usual on Satur day.

and will also out an an early edition on There Easter Monday.

will be no Hongkong Tele- graph next Monday.

The Sunday Fout-ilerald

will publish as usual,

BOUTH: CHÊNAS

Sapper StoutWD Property-Back Page

CHINA

No. 34848

Modoraje er frost E. winds, Over-

-Back Paget with occasional.

Today's Weather:

Eight raža followed by unsettled conditione,

Established 1845

THURSDAY, MARCH 22, 1951.

US Senator Coming The Tarzan

Here To Probe

"Sales To Red China"

Senator Warren G. Magnuson, a member of the US Senate's Interstate Foreign Commerce Committee, is coming to Hongkong to "look into the reported sales of strategic materials to Red China in Hongkong," according to an Associated this morning from Press message received Washington.

The report added that the length of Senator Magnuson's stay in the Colony "will depend on

Red Plot For developments."

Pakistan

Dictatorship

for Iranian Oil Dispute

Senator Magnuson is Dis making a trip to Japan and Koren and in preparation this, says the report, he discussed conditions in Japan with Mr John Foster Dulles on Wednes- day.

Senator Magnuson plans to leave Washington by plane next Monday for San Francisco, en All Khan route to Anchorage, where he

Karachi, Mar, 21,

Premier Liaquat

tok Parliament in Wednesday

takes off on April 4 for Japan. the arrest of high-ranking off-He expects to be in Japan for clals early this month thwarted in a week, dividing his time

between Tokyo and Yokohama, I plot to establish a dictatorship and he will spend two or three In Pakistan on the Communist

days in Korea.

Mr pattern.

ls especially Magnuson platined The conspirators

interested agreements regulat later to bring in missions from

Japanese merchant tog "certain foreign countries", add in establishing a Communist marine and fisheries.

are to supplement the model state, the Premier said, pacts

Dulles is handling. planned to use force to liquidate peace treaty which Ambassador

The

The

Britain Considering

Action

oil

on

London, Mar, 21. Britain is considering various "forms of ection" to stop Iran from nationalising British interests,

Foreign

Herbert Secretary disclosed this on Morrison House Wednesday, but declined in the of Commons to detail the actions, Legislators called on Pakistan's government leaders, Mr Magnuson holds that the

support of Japanese

marine the government not to tolerate and to enlist the

merchant mere cle-

by Iran. Communist revolutionary should

conform

the any illegal actions with

Iran Britain protested 10 their achieve here to

economic growth of that nation, and that Japanese fishermen March 14.

If Iran refuses to compromise, should be chút out of North Pacific waters.

His position is government sources said, Britain to the United appeal that they should develop new could fishing grounds south of Japan Nations. She could move troops from Iraq it Iranian authorities among the mandated islands.

Aldes raid General MacArthur used force to take over British

The British probably will accompany

govern properties. Senator Magnuson to Korea, where he ment is the leading stockholder wants to study the rehabilitation in the Anglo-Iranian Oil Co. needs of shipping and industry.

The Parliament (Majlis) of action in and form an estimate of damage to harbourd and

ments aims.

"The Premier made the state- to questions ment In answer

by Parliament pu! to him members concerning the arrest of Maj. Gen. Akhbar Khan. Army

Chief of Staff, and The Premier said the others,

the Army Chief of Staff was

He identified Bri ringleader.

ade Gen, M. A.

a Brigade Latif, commander

Quetia, it Akhbar Khan's chief lieutenant. Also under arrest are Akhbar Khan's wife and several others.

the

D5

"Apart from these few mili- tary officers, civilions also were Involved in the conspiracy

"All the

said the Premler.

other offers and the rank and Ale of the armed forces were totally ignorant of the plot." Associated Press,

La Prensa's

Editor Gaoled

Buenos Airen, Mar. 21, Alberto Galaza Paz, editor

wharves.—Associated Press.

the Iran has conle" for the

voting "in

ignalisation of the country's

oll resources. The Majlis now is in receta. The matter is scheduled to come before the

MAY Majlis for action in about two POPE

PRINCESS

VISIT

London, Mar. 21.

and publisher of the newspaper spokesman added.

La Prensa, was ordered gooled

on

Wednesday night for 15 criticised

months.

Mr Morrison said Britain is

with the In contact

United States, France, and other in- terested countries on the ques- tion.-Associated Press.

GI SLAIN IN AN

MAIL

Price 20 Cents

HIG

13.

SKANDEN

SWEDISH MADE RECORD, SYSTEMS

AT REASONABLE PRICES

HONGKONG TYPEWRITER EXCHANGE, 31,

• W'Agaffer Strooi

Tel. 21428

Tarzan South Korea Liberated

Bomb

The US Far East Air Force, It was recently dis- closed, has been using radio-controlled Tarzan bombs on Korean targets since last August Here, Sergt. Craig of the New York National Guard base at Niagara Falls, stands beside one of the 27-foot, six-ton missiles. The Tarzan bomb is directed toward its target by the bombardier using radio signals which are picked up by a receiver in the bomb itself—AP Picture.

PHILIPPINE

1,000

ISLANDS OUTRAGE

Troops Search For Huk Killers

Manila, Mar. 22.

It was estimated that 1,000 government troops were scouring the Antipolo area of Rizal Province near here today in search of some 60 Huks who raided a dairy farm last night, killing the owners, Mr and Mrs John Hardie, and the Australian farm manager, Donald Capuano.

Punitive operations went into full swing as Army investigators looked into the possibility that the Hardics were killed in reprisal for the arrest last week of a Huk supply officer in the Antipolo area. The Huks were be- lieved to have suspected that a tip was given to the authorities by the farm owners.

A Buckingham Palace spokes- man told Reuter today i was "quite likely but not definite" What Princess Elizabeth would visit the Pope during her visit AMUSEMENT PARK to Rome next month. Such a visit

Tokyo, Mar. 22. would be # and informal, the The police arrested 45 Koreans courtesy call

believed to have been involved Princess Margaret was in an assault upon American GIs by the Free Church in Asakusa amusement district in Scolland Presbytery in the early morning hours on days for contempt of the Argen-

Edinburgh. for visiting the Wednesday, in which one GI was tine Congress.

killed and two others injured.

The incident has caused much prior to his arrest and the Huka. It WIS Earlier, Gainza Paz had ae- Pope during her holiday in Italy

The Incident was believed to

highest presumably thought among the cused the Congress of violating two years ago.

Rev. Donald Mackenzie have been touched off by North Philippine and American officials. Hardie who had denounced him The Argentina's Constitution by

said, "I think I speak for you Korean sympathisers. Wednesday The United States Embassy last to the authorities. Directo lived ordering a joint committee

was the first anniversary of the

of farin. One farmhand told the in remote or isolated areas seize control of the newspaper, ell when I which frequently hoa been and deplore visits to the Vati-day the police seized the office of night urged Americans residing only 300 yards away from the critical of President Juan Peron's can by those in high places."--the outlawed Korean League. the Philippines to take every authorities Huks had been fre-

United Press.

precaution against possi- possible

51-quenting the area on foraging ble attacks by Huks. The missions and he said they government.-Associated Press. Reuter.

Embassy said that, "while no sumably were angered when reason is seen for great alarm," Hardie refused to comply with Americans were urged to take demands for livestock and food

the present supplies. precautions until campaign for enforcement of law order reached maximum

COMMENT OF THE DAY

THE

say we deprecate

Time For A Reduction

HE Financial Secretary's disarming Budget naturally influenced the tone and tenor of yesterday's speeches by the Unofficials, and criticism was, in consequence, somewhat tentative. Some good points were made, however. The Hon. C. E. Terry, for example, corrected a widespread false impression that we in Hongkong depend entirely on the British taxpayer to finance our was able to defence budget and he

figures, that show, by comparative actually the Colony sets aside for defence 'and. security a greater ,percentage of its annual expenditure than does the Imperial Government- a sobering as well as illuminating dis- closure, and one which deserves wide publicity in Britain. Mr Terry also made one suggestion at which, we imagine, Government will look with considerable askance. He proposes use of the Equalisation Fund to subsidise a Government campaign to force down commodity price levels by the adoption of a "planned losa" policy. Mr Terry's argument and it possesses some force -is that Government usually acts too Inte and too timidly in trying to rescue the community from the machinations f speculators and manipulators and that #nore détermined action, backed by an dequate monetary outlay, would be nuch more likely to achieve desired sulta. Many will feel in aympathy ith Mr Terry's proposition, especially, she points out, it has the merit of pplying the people's money to the people's greatest need. Moreover, it can be added, the campaign would not have to be financed- from general revenue., The Hon. 8. N. Chau took upon himself the responsibility for urging a reduc

concern

CROSSING OF 38TH NOW THE

BIG

QUESTION

(FROM EDWARD HEWAT)

8th Army H.Q. Mar. 21. Mao Tse-tung's Chinese Army has as good as abandoned South Korea. His aim to drive the United Nations forces into the sea-an aim so nearly fulfilled two months ago has ended in defeat.· ́

Tonight South Korca is a liberated country. But the most important question is still not answered. Will the United Nations forces cross the 38th Parallel and carry the fight for the second time into the Communists' territory?

Reds Hold Jardine's Employee

Alleged Spy Ring Rounded Up

The Hongkong office of Messrs Jardine, Matheson

direct in-- has received no formation that one of the Tientsin office employees has.. been arrested by the Chinese Communist authorities and charged with espionage.

The report that a group of 21 people, including Europeans, had

been rounded up by the Com- munist authorities as represent--:

this morning by Peking Radio.

The answer cannot be more than a few hoursing a spy ring was released early away. For at any moment our troops could make one strong push and they would be over the line.

Reports for the last three days have shown less and less effort by the Chinese to hald line south of the Parallel. They have given up ideal mountaia positions without a fight, They bave left dumps of food and ammunition,

And today showed their weakest efforts, of all, They abandoned their lust South

stronghold-the

Korea cross-roads town of Chunchon

without a battle.

Alleged

War

One of the arrested men is alleged to be Heinrich Lipphardi. - described as a "sales manager of Import Department of Jardine, Matheson and Co., in Tientsin."

the

Other Europeans arrested and sald by Peking Radio to be

Criminal implicated in espionage on behalf

Acquitted

vital

An

Sydney, Mar. 21.

Australian

of the United States are E. T.. Bercu, 31-year-old White Rus- sian, Boris N. Kalatilin, 44, stateless; Hutta Rothkehl, 40,. German Wilhelm Dunsing and Mrs Dunsing.

A

#3

Japanese, identified War Halsaichi Furutani, said to have

with д

Troops at the front report Crimes court at Manus been a former Colonel in, the tonight that the Chinese have Island..on Wednesday Be Japanere army, was also arrest-

out of withdrawa

touch in

ed, together

dozen most places

Chinese. At spots where quitted à former Japanese contact was made the enemy

Expeditionary Force com.

The charges against the alleged numbered only a few hundred mander of charges of tal- token defence forces, many of ing part in "human guinea gals are that "they gathered military, polfical, economie and pig" murders of 15 natives cultural information on China

assarcinations of the Dutch East Indies in organised

fspied on the Soviet Union" and

Korea."

them North Korean,

Our pilota Deport leas and lase activity on the Chinese 1945. supply roads. And today flyers reported that most of the lorries

were rolling northwords.

The official 8th Army state.

ment-aircady hours old it was released this afternoon-

Vice Admiral Yalchiro Shibata, former Commander-in- Chief of Japan's Second South Sea: Expeditionary Force, had when been accused of playing a lead- said our troops were holdinging part in tetanus scrum testa 17 nativas at Soerabaya, strongly one position less than nine miles from the Parallel Java.

other ..and three

within 13 Fifteen, of the natives died of injections, the es a result And there is no ovidence of prosecution charged.

strong enemy between any those positions and the Parallel. mites are there Thoso dividing for the taking.

CHUNCHON FALLS

miles.

+

Tokyo, Mar. 22. The great Chinese Red base of Chunchon where the enemy was expected to stand if he in- tended to stay in South Korea- fell without a fight to US forces on Wednesday.

Enemy forces that abandoned of rubble apparently the city

back beyond the were pulling 38th Parallel only eight miles north,

Former Surgeon - Hirosato Nakamura

Nakamura

and

Ready To Swoop On Spies

Washington, Mar. 21. The chairman of the House Appropriations Committee, Re- Clarence Cannon, Captain presentative

sold WDS

arranged-for-Injection of hour after any

started

serum into 17 natives sentenced to death by a Japanese courts- martial. He

with

today that the Federal accused with Shibata of com- Bureau of Investigation was plicity in the experiments. prepared to arrest 4,500 sples in -

the United States within one admitted having

general war

Cannon said the spies were being watched but were claimed, however, that allowed to remain at large now

30 officials

could later was able to produce whom They were associating. because of the experiments he serum that was used widely in He told the House:

"It is no the area.

secret that the FBI fa

pre- Nakamura and former Lipared to

arrest within an hour Cmdr. El Natsuzaki are charged | after wor

starts 4,500 per- specifically with having mur-sons-spies of foreign nations dered the natives..

who are at large in this coun-. Total loot taken from the

The hearing was adjourned try, with whose identities we estimated at 8,000 Chunchon,

scized by Usi until Thursday, - Associated | ore famillar and who are being

Press The United States Am-

watched."United Press, result of "strong representations"bassador visited the farm yester- made by the Ambassador, Mr day and later said he found the Hardie residence a "scene of Myron Cowen, assurances had

He said the wild, disorder."

It not only was a good mass- the Philippine been given by. Government that every possible vandals apparently had looting polat, but its roads, and would be made to track "anything and everything of rails were avenues of conquest

value" before abooting their

into Central Korca and to Seoul down the killers.

victims.-United Press.

Itself.

The Embassy sald

that BS #

farm pc909.

ta

the

CONTACT MADE President Quirino, who spending the holidays with his Cabinet in Baguio, ordered Defence Secretary, Mr Ramon Magsaysay, to return to Manila to direct efforts to capture the Huk

uk killers. Mr Magsaysay or- rived at the Hardie farm at about 4.30 p.m. yesterday and Immediately took over personal command of the punitive forces. Press reports on the progrees of the operations stated that gov- ernment artillery made contact with the Huks and began shell- on the Sierra

was

Shocking Convent

Tragedy

Milan, Mar. 21.- Thirteen girls aged three

troops and tanks, was a much greater prize of war than Seoul, the liberated old Korean capitul

45 miles to the southwest,

The enemy also was pulling back on the eastern front, where Republic of Korea troops ni. ready may have reached Parallel 38, the old political dividing line between the Red. North and the Republic of South Korca.

the

en-

In the West, however, enemy still was strongly trenched north of Seoul and to the east of the capital.

Ing their fat 2 to eleven were killed and 28 | Field

Madra

today. They

Bald

the

tion in the standard rate of taxation on earnings and profits from 121⁄2 per cent to the original 10 per cent. He the firstly on this demand based reminder that when the increase was approved last year it was on the under- standing that it would be cancelled as soon as the financial condition of the Colony justified it, and secondly on the fact that the new Estimates show a surplus of income over expenditure. Dr Chau obviously considers that the financial condition of the Colony is such to justify some relief in direct taxation and with this view taxpayers will heartily concur. When we pro- tested last year against the proposal to

AP Correspondent Jim Becker increase the rate of taxation, which the

reported two divisions of the Financial Secretary then argued was

fresh Chinese Communist Third Army wore tentatively necessary to make good an estimated

Identified in front positions' cast "If, when next deficit, we observed:

others including one mother of Scotl were famning that the

in all directions from Antipolo gravely injured when .D

patrol An Allied armoured in an effort to surround and courtyard wall of the school fighting north on the road from. capture the Hules,

Scoul of the Sisters of Mercy

to

Barce Uljongbu met

Is 12 Earlier it had been reported

Rod realstance. Uljongbu i that part of the Huk group was collapsed here at the lunch miles Horth of Seoul. attacked by troops on Wednes recess today.""

Becker said the 77th and 78th The victims had just been divisions of the Chinese 20th day about two hours march from the Hardie farm but the dismissed after the morning Army (Corps) now are believed Huks Bucorded in cluding session and, were taking shelter in front of United Nations troops,

fire. However,

against the wall from violent with the 70th division in reserve. six huts reportedly were burned rusts of wind, when it toppled They are part of the Chinese Third Field Army, idle since the and a typewriter takon from the on them. Hardio farma was recovered,

Restuere pulled 20 girls from Allled evacuation of Hungnam In The Army belief that the Huk the debris alive, 17 of whom northeast Korea in December. The 24th Chinese Army (Corps), motive in attacking the farm and were badly Injured. kiling the owners was revenge,

Mothers and other members also part of the Third Field appeared to have bean based on of the children's familles were Arany, was believed in the same

madeby Bome

-witnesses to the area: who forday

The shifting of those 00,000 Its the children talder fresh, troope into the treat rakaga loarned that gate. Some mothers were stie condecture that the enemy might the attack

closely followed the to statch their daughters spit be planning a counter-attack.

Allied officers alsó, thotight the arrost only five days ago of rectod before the wall grashed. Anastacio Directo, Hük' mupply, The brick wallwne Tubuilt realed third might replace Rad officer in the sred near the fasul, only two month Ram, et It China's battered Fourth Field Directo, had been employed a collapsed previously United Army, all along the treatme

Associated. Qrest. worker on the. Herulo & farm

March arrives it is found estimated deficit has converted itself into a $20 million or more surplus, will Government immediately reduce direct taxation? If it is not prepared to do so, it will stand convicted of raising taxation for the sheer sake of adding more burdens to particular sections of the community." The facts are now well known. The estimated deficit has become a surplus of more than $70 million, and there is an accumulated i revenue balance equal to one year's estimated revenue-the original target. set by the Financial Secretary. This state of affairs gives the necessary support to Dr Chau's contention that the time la proper for a reduction in direct taxation, and we think Govern- mont should acknowledge it and amend the standard rate accordingly.

ment forces

Lemmenent

[mt]

80DE

Were

were

walling

PAL

ABOVE ALL

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