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CHINA MAIL

No. 34934

Oil Refinery Will

Have To Close Down In 20 Day's

Teheran, July 1.

The Abadan oil refinery, the biggest in the world, will be forced to close down in 20 days if the present rate of production continues, a spokes. man for the Anglo-Iranian Oil Company said here tonight.

An earlier message from Abadan quoted Mr K. B. Ross, general manager of the refinery, as saying that production of the refinery was being cut in half today because tankers were no longer taking the oil.

The spokesman in Teheran, fulfilling Premier Mohamed ald that the refinery was now Moasadegh's promise that action operating at a "through-put" of on it would be postponed.

over 8,000,000 gallons

Just

or any

Jally, about half the maximum. It was not even referred to Crude oil production from the today, meaning it could be lfleide had been cut propor- brought up at future sessions jonately.

and possibly passed At the present rate all time. The National Front de torage capacity would be ex-puty, Jessavarz Sadr, told the austed In 20 days and the re- Majlis the British Prime Minis inery forced to close down. tor, Mr Clement Attlee, and the

Mr Ross said that the Last wo tankers in Abadan had al- Morrison, were

Foreign Secretary. Mr Herbert under the in- nost completed discharging fuence of the Anglo-Iranian Oll helf

cargo of on back into Company shareholders. Mr Sadr storage following the fallure

warned that if their attitude of the company and the Per- toward Iran did not change the sian Government to agree on British people would overthrow the form of receipts tanker

the Labour government. ~ kippers have to sign.

United Press.

These two tankers were due o leave tonight.

The Persians have, mean- valle, promised "sensational Visclosures" from the contents

the documents seized when he company's Mee closed down on June 21

Information

Ind from the rald on the house

Mr Seddon,

The documents so far made ublic, it is claimed by the ompany, did not prove Persian harges that it bribed local ress and foreign correspon ents and parliamentarians. On

REFUSED WATER

Abadan, July 1. The British cruiser Mauritius, at present standing off Abadan, has been refused supplies of ice water and fresh vegetables by the Persians because it was une oMcially stated that she was being used to threaten the Persian nation.

Established 1845

MONDAY, JULY 2, 1951.

RIDGWAY

EXPECTED

TRUCE

COMMUNIST

Shinwell Breaks

The Nows

Manchester, July 1.

of a

In tho middle speech to a Labour Party demonstration here today. the Dafenoa Minister, Mr Emanuel Shinwell, TC- ceived the Reuter report that China had agreed to cease-fire talks.

Ho said: "I am Aure that is very heartening. I hope that, as a result of this cease-fire, there will not only be meetings of the military people but of diplomats also. I hope it will mean that we can SOC, before long, a four- power Ministera COT)- ference. I am sure I ex. press your desire that this world wiil bo liberated from the uncertainties of the prescat international situation."--Karter.

Inquiry

Price 20 Cents

PROPOSAL How UN

Delay In

Starting Talks Puzzles

Washington, July 1.

The expectation at the United States Defence Headquarters this morning was that General Matthew B. Ridgway, the United Nations Supreme Commander in Korea, would accept within a few hours the Communist proposal to hold cease-fire talks in the Kaesong area between July 10 and July 15.

General Ridgway's instructions, it was user- stood, were sufficiently flexible to permit him to

Report agree to the time and place of the proposed con-

Held Up

Washington, July 1.

Six Republican Senators have agreed to delay their re- port on the two months' inquiry of Geneal into the dismissal Douglas MacArthur

to avoid any possible embarrassment of General Matthew B. Ridgway, United Nations Supreme Com- mander, in Korean cease-fire

moves.

Senator

Alexander

Smith

Troops Heard The

Offer

The Eighth Army Head- quarters in Korea, July 2.

The United Nations troops fighting in Korea Com- first heard of the munist agreement to cease- fire talks at midnight last night.

Eighth

Army Headquarters personnel, still awake, heard the announcement on A Ave. minutes' short-wave broadcast from Tokyo Armed Forces Radio.

ference without having to refer first to Washing-were ton.

Although officials were surprised at the quick Communist response to General Ridgway's offer on Friday when he suggested an armistice conference at Wonson Harbour — some disappointment felt here that the "counter proposals" would delay the talks for at least 10 days.

уда

Mr Lincoln White, the State Department spokesman, who declined to forecast the next move by the Unified Command in Korea, commented: "The Communists could talk peace this afternoon if they wanted to."

The first. ometal thoughts arena, the Communists and were that the Chinese and Left Wing "neutralists" would North Korean Communists had open up a gigantic propagandu proposed a new meeting place barrage demanding Peking's as a "face-saver" to prove admission to the United Nations that they were retaining the and Communist control - - over

Formosa.--United Press,

A spokesman of the Anglo- Iranian Oil Company said to. (Republican, New Jersey) on- night that the Persian Civil nouncing this today said that o contrary the alleged com- Governor. of Abadan at first the Republican group was ex-initiative. any documents produced, were agreed to request by the pected to frame a report later outine, dealing mainly with Mauritius.

with aimed primarily at the for barges ach matters as the placing of supplies to come alongside the ministration's Asian policies. dyertipements,

vessel,

Dr Mozafar Beghal, a Nation- į decisión. 1 Front deputy and leader of newly formed Persian

10

then

reversed

hio

has

No official explanation been given for this action. It abour Party, in a statement to

↑ understood from well- he Press today accused the is ompany's information depart-

cruiser

Ad- In this connection officials said that they expected a new .Communist propaganda cam- The group's statement wouldpaign to the effect that the probably criticise severely the United States and her United method used by. President Tru- Nations allies were "suing for

.in dismissing General prace." man MacArthur but might avold direct endorsement of Gencral

Various alternatives

went

Although it was midnight and most of the officers and men in bed and asleep, the news ran like wildßre through billets and camps and on up to the men in the line.

Omcers on night duty who had not heard the radlo were at once told by others who had listened in but it was some time before those who were told be- lleved that it was not a leg-puil. Lieutenant-General James

Van Fleet was himself asleep when the news' came in and his staff decided not to tell him until the morning.

The North Korean Pyongyang Radio also broadcast the an- nouncement of the Communist acceptance of General Matthew Ridgway's peace talks proposal. -Reuter.

SKANDEN

VSWEDISH MADRE.

RECORD,SYSTEMS

AD JUPASONABLE.

PRICES

HONGKONG TYPEWRI

D'Aguller Street

WE CHANGE

TO ACCEPT

This picture, just offi- cinily released, shows an

atomic explosion during LINKLATER

tests at Frenchman's Flat in the Nevada desert. The tests were conducted in January and February of this year.

Standing By

** FIGHTING SLACKENS For Action

Fcars were privately CX- informed source that the Persian MacArthur's proposals for ex-suggested as the reason why

pressed in some quarters that was that the ent of being a "hot bed of attitude

"to threaten Pansion of the Korean fighting, the Communists had suggested unforeseen complications might could be devised. being used olitical intrigue and espionage." was

a delay of from 10 to 15 days

urise. before the cease-fire talks be- He showed documents taken the Persian nation and, there-it was believed,

of the gun. rom the department purporting fore,

prove this-Reuter.

not deserve...iced water__and Republican amembers of the Com Among them_were: ACTION POBTPONED vegetables."

Teheran, July 1. anti-sabotage

'The

bill cheduled

today for passage ras not discussed by the Majlis,

the officers and men de

The Mauritius is anchored in the Shaft El Arab River off the Abadan refinery-Reuter,

COMMENT OF THE DAY

Only

bined

obout hak

ond Armed Services Foreign Relations Committees to which the six Senators belong seemed likely to support the pro- posed report.-Reuter.

Britain's Steel Shortage

THE revelation has just been made THE hud the British Minister of Supply is at loggerheads with the Steel Federation, and at a recent conference at Margate he ac- cused members of the Federation of doing everything within their power to thwart the State Steel Corporation which has been established to control The the nationalised steel industry. Minister possibly has some grounds for complaining that his Steel Corporation is not receiving 100 per cent co-operation from former leaders in this industry. They, through their Federation, have never retracted one iota in their op- position to the nationalisation of the fridustry, and Mr. Strauss can hardly be surprised at their lack of sympathy for the new controlling body. Yet the Minister of Supply has not told the full story. As one writer has pointed out, the supply of steel in Britain has been maintained since last summer by heavy drains on stocks of iron ore, plg iron, scrap and half-finished steel in stocks of the steel works, and on finished steel accumulated by con- All these matters have been sumers. under the supervision of the Minister of Supply; had he wanted the with- drawals from stocks to be suspended they would have been stopped. With- -out this draft on stocks industrial out- put would have been lower, and it is fair to suppose that the Government accepted the fall of stocks. in the hope that something would turn up to assist their replenishment. Chances of buy ing steel in. Europe, when the Ameri cans were buying at high prices, was robably missed, but again the 'Minis. ry of Supply know of the chances and ould have pressed them. It is sug- rested that the Steel Federation lost some imports of ore by refusing for a ime to charter ships when freights

began to rise, although this can hard- ly be held as a decisive factor in the current steel shortage in Britain. Even if all the right things had been done -and they rarely are except by luck--- the present difficulties would have been only a little less. Steel users have still not been told plainly how serious the At the best supplies prospects are.

even

will be about 10 per cent less in the later months of this year than in the corresponding period of last year. When defence needs have been satis- fied the amount of steel for civil indus- tries will be about a fifth less than it was at the end of 1950. And in Britain it is felt that it is not enough to say there will soon be the system of con- trol and allocation that is urgently needed. Too many users will, then, believe that their claim is BO overwhelmingly strong that they can- not fail to be allotted all the steel for which they ask. Too much steel, goes the at present Into products where value added in subsequent manufac- ture-is relatively small. Such products have been encouraged by the artificial- ly low prices of steel. Clearly where there is a choice, goods with a high- added value should be preferred for the export trade, so that, propor- tionately, skill and workmanship' are materials. exported rather than raw Conversely, it is argued, more raw metal products with added low value, which are available on the Continent, could and should be imported. These are the questions with which the Ministers concerned with steel should now fully occupied. These are the matter on which, without recrimination, and political rancour, they should enlighten the people of Britain whose. futuro, reats no largely on the conquering, of the problem of steel supplies.

be

were:

the

And war-

In

4

June 1.

COMING TO HK

Erio Linklater, world nowned author of a number of novels Including "Juan, in China,"

"Poet's Pub" "Magnus Merriman," is coming' La Hongkong..this-month ou route to Tokyo and Koren,

AN

Mr Linklater will arrive In UN REACTIONS

Tokyo, July 2,

Hongkong holding a short The zest fo. combat went

special King's Commission with Fayld, Suez Canal Zone, United Nations, July. 1.

out of the Korean war on Sun-

the rank of Lieut-Colonel, and Diplomats and officials here day

and

fighing slackened

his mission is to write the today were considerably puzz noticeably in the wake of the Royal Air Force transport official popular history of the led by the terms of the Com-electrifying word that the Reds aircraft were standing by on part played by the British munist reply to the cease-fire

were willing to talk peace. the desert airfield here today Commonwealth forces in the offer,

United States Eighth Army ready to take a whole battalion Korean campaign.

Mr Linklater wrote the o0- sources proclaimed business as of fully equipped British troops usual until some settlement to protect British Lives andcial history of the Italy campálos property, anywhere In the Mid- th World War II, and it has cautious men on both sides of dle East.

proved a very popular book. TWO main points in doubt

line continued to deal

He leaves the United Kingdom death with bombs, shella and Only a code word from the on Wednesday and is due to Why should-it require bullets. But the action has been War ̈Office was needed to arrive in Singapore on July 8. 1.-The Communists hoped from 10 to 15 days to discuss

tapering off since the peace [swing the whole "rescue opera- to All the United

He will stay there for three Nations

a cease-fire in the field?

ů British days and arrive in Hongkong on rumours broke out and Unitedtion into action, forces into a false sense of

2.--What was meant in the

Press correspondent sccurity by holding

William Army spokesman said here. July 11. out hopes Communist reply by linking in

Chapman reported from Seoul peace, building up their the one 'sentence of

the cessation

that it probably would be "even He added that the stand-by strength and then withdrawing of milltary operations with the

more Jackaldaisical up to the was "part of our daily routine their offer to negotiale.

term "and the establishment of time of the meeting." Men who-Reuter. For this reason, officials here peace?" said: "The war will

go on with-

United Nations circles won out a break until o cease-fire ordered whether

tho expression armistice agreement is signed."

"the establishment of peace" They pointed out that the 10 might not have wider implica days' delay did not compet

tions than appeared at a first General Ridgway to "soft-

glance, pedal" the operations or in any way jeopardise the security of his Command.

i

or-

of

12

must go out on patrols and sit in foxholes for the next 10 to 15 days can hardly be expected care as they have been for the to be as aggressively devil-may-

last year.

Communists and Allies shot

up patrols svhich : un-

with

PLANE CRASHES:

Belgrade, July 1.

It was reported today that a

The phrase might mean that the Communist authorities cx- enthusiastically felt out posi-Yugoslav Airlines Dakota crash- 2 The Communist military

pected the proposed conference leaders in Korea had to

at Kaesong to include not only tions. Artillery and mortars oned and burned near the Adriatle the military question

both sides lobbed explosives port of Rijeku on Friday, kill- of pinise a "chain of command"

but

and soaring white phosphorousing all 15 Yugoslava aboard, also broader

United Press. into the opposing lines, beginning in Moscow and end- cease-fire

political problems such as the ing in the Kacsong area by way political future

Allied planes cratered Com- Korca. of Peking.

That would explain the sug-munist airfelds, rocketed Red Oficiala here belicve the

and burned or traffic

foxhole days would

be troops then

flaming Jellled success of the cease-fire negotia-gested delay of 10 tions cannot be safely guaranteed more which

by the

Communist gasoline. merely

the required by the fact that

Sporadic Communist mortar had

prepare representatives to Communist Commanders

west the fire, was reported

and full-dress conference with agreed to meet face to face with

northwest of Yonchon on the United Nations the representatives of General

The

Chinese western front just inside North Ridgway-Reuter,

Communist representatives at Korea and 30 miles northeast the United Nations last year of Kaesong, border town named their maintained throughout all the by the Communists as debates that cease-fire discus-choice for peace talks.

Northeast of Chorwon along sions must be linked with the

the upper side of the old iron wider political issues,

American and British delega-triangle, Allied units tangled ion circles withheld any com with an estimated battalion of the now development Communists, an Eighth Army ment on until the Communists' offer had communique reported. been thoroughly examined at a higher level.

CURIOUS DELAY

Bovict

authorluc

London, July 1, Western Europe gave a mighty welcome tonight to the Com- munists' acceptance of a cease- fire in Korea but officials said they were very curious" about the Reds' request for a 10-day

PATROL ACTION delay in opening armistice talks. Mixed with the general feel-

East and northeast of Kumhwa (Thoy

also not prepared were Ing of relief that swept Britain and the Western half of the to say whether the nations with at the eastern corner of the tri-

in tho area divided European Continent forces in Korea would agree to angle and

ΟΙ

were these other immediate have political questions injected Hwachon, Allied patrols ranging reactions:

talks.

Into

the cease-fire The Secretary-General of the United Nations, Mr Trygve Lie, would not make a statement today on Peking's receptance.

A United Nations spokesman said that Mr Lie continued to voice optimism that the events would lead to Reuter.

the narrow no-man's-lan had brushes with Communist out- posts but found no formidable opposition.

1. Surprise that Communist China, by associating itself with the truce, had in effect officially

Above Inje on the east central admitted for the first time, that

front, two Rod platoons attacked It was a "belligerent" in Korea. 2. Curiosity and caution be

an Allied outpost early on Sattir- cause the Reds wanted to walt

day. Five and a half hours of cease-fire. Inconclusive gunfire ended in a 10 days and then want to hold

draw. : Oné ‚officer said, “We' an 'armistice conference south

believe that the Reds send troops of the 38th Parallel.

CITIZENS' CONDITIONS

down every night to see if we that 3. Hopo

this might

ure still here, and to find out! Puzan, South Korea, July 1. finally bring an end to a wa

The Federation

North whether we have moved our line ct which has threatened world *pence while Europe was un- Korean cliten now living in forward or to the rear!!

In another sector north and South Korea today announced prepared for World wor

Inje

Communist several *** which drow American attention their dive requirements for Away from Europe toward the case-fire. These were complete groupe approached the Allied withdrawal of Chinese forces line and threw a few grenades 4. Fear among some leaders from North Korea, complete dis in a nuisance prowl

Airmen bandment of the North Korean

reported... spotting that there would be a "let

2,000 Communist down" in Western Europe's Korean war criminals, release of vehicles moving behind the

regime, punishment of North nearly urgent rearmament programime. South Korean civiliana kidnap-| lines. Trent dispatches ASTON This was coupled with ex-ped by Communists and assur-porting the sightings 'sald' they pectation that once the talks, aness for the security of the were moving "in all directions have shifted into the diplomatie Republic of Koren -atsüfer, a (Conid on back page,” Odi,::4)

For Enst.

of

He will remain in the Colony for five days during which tline. he will be the guest of the Com mander of British Forces, LL- General Sir Robert Mansergh, KBE, CBE, MC.

While in Hongkong Mr. Link- later will visit the 1st Batt the Argyll and Sutherland High- landers and the 1st Batt tho Middlesex Regiment as the guest of the respective commanding

From them he will obtain officers, background material for his Kerea campaign history.

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