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CHINA MAIL
No. 35040
Fresh Austerities
Ahead For Britons
London, Nov. 1.
The Churchill Government will brace the nation for fresh austerities when the new Parlia- ment meets next week, informed quarters here said tonight.
The Government will announce the measures it pro- poses to check any further decline in Britain's overseas balance of payments which have been deteriorating
seriousty.
Waste in Government departments will be the first objective of Mr Churchill's attack.
a
The Chancellor of the Ex-sador in Washington, Sir Oliver Ghequ.. Mr Richard A. Bules, Franks, and are being kept reported to the Cabinet today Cabinel seeret at Mr Eden's ex- on the economic position as he press wish. found on taking over from bis Labour predecessor a few days ago,
He will apen Parliament's есолопис debate provisionally scheduled for Thursday--with a review explaining the situation
Full.
іп
He will also tell his plany for restoring normal stability.
meeting. con-
After the Cabinet the Conservative lender tinued his task of Government making.
He named Mr David Eccles,
of the most progressive economic thinkers in the Con servative Party, as his Minister of Works. This department is responsible for the construction and maintenance of Govern- ment buildings,
Britain has an overscas pay ments deficit running al the rate of over £600,000,000 a year Mr Churchill also interrupted And though she still
has far bis day's work to join the more dollars than in 1949, they procession of newly- elected are dwindling
rate that members of Parliament at a
which gives cause for concern
all afternoon Inlo the Latest reports, prepared by officials, convinced Mr Butler of the need for prompt and firm action,
Today he put the situation bluntly before the Cabinet.
KING'S SPEECH Economic policy will
figure King's Speech announcing Govern- ment bustness for the
coming session which officially opens Parliament next week.
prominently In the
The Cabinet meets again to- the Anel
morrow to complete
draft of the Speech.
his
today
House of Commons to swear allegiance to the King. They had to do this before taking their seats.
of
80
Mr Churchill also has to an- nounce about 40 members his Government of nearly senior and junior Ministers.-- Reuter.
King
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Do Shopping REVOLUTION IN EGYPT
With Guns
Reds' Buffer Zone
Proposal Disliked
Munsan, Nov. 2.
United Nations trace negotiators are balking at accepting the Western half of a Communist proposed buffer zone across Kurea after reaching “general agree- ment" with the Reds on where the shooting would stop in the East.
The issue is to be talked again by sub-committees at Pan Mun Jom at 11 a.m., today (Friday).
The broadcast emphasised there can be no other possible proposal," and that it is a "deci- sive test" of the American side.
White а UN Command the "greatest effort" the Reds spokesman sold on Thursday would make for a compromise. the two sides were in general agreement on the Eastern end of the buffer zone from Kum- hwa, 56 air miles East to the stilt subject of dispute. Kumsong area the West was
Still unsolved was possession of the Kaesong area, now Red held, and vital because it con trols the Northern approaches
to Seoul.
However, close inspection of the Red plan showed that it not only retained Kaesong but also hugged the north bank of the Imjin
River,
This line, if
accepted, would give the Allies Ettle more than series of exposed bridgeheads across the Imfin River.
Obviously, the UN wants to
London, Nov. 1. Dr George Cordiner, a radio As the King is sun con-logist, and four other doctors valescing from
recent visited His Majesty the King at strious lung
The Buckingham Palace today. operation, Speech will be read for him by
They took an X-ray photo- a Royal Commisstona group graph to check the condition of
by of four Peers, traded
following his the the King's chest Lord Chancellor, Lord Simonda. September 23 operation for a
The Cabinet
turned lung resection.
Both des have insisted they from domestic problems hear Dr Cordiner examined the must have the rubbled city keep as big a slice of territory from the Foreign Secretary. Mr King before the operation. The and more important Its sur-North of the Imjin as possible, Anthony Eden, the latest Ameri-lest medical bulletin on October rounding high ground,
is there that the Reds that can view on the solution of the 21 said
times for major was The Communist Peking radio, massed three making
drives. satisfactory Persian oil dispute.
progress quoting an unnamed "spte:al cor. These had been reported to and was able
It was to get up for a responden:," declared the lates
to prevent a repeat Mr Eden by Britain's Ambas-tew hours each day-Houter. Red offer fc: a buffer zene was performance of these Red thrusts A Van that General James Fleet's Eighth Army drove the Reds well back from the Imjin in the October offensive.-Asso- ciated Press,
COMMENT OF THE DAY
C1
the King
Fresh Austerity For Britain
LEAR warning
first
that the executive actions of Britain's new Chancellor of the Exchequer (Mr R. A. Butler) will be to issue a series of fresh austerity directives, to call for a further tightening of British belts, comes as no surprise. It may shock the unthinking who imagined the return of a Churchill Government would be accompanied by relaxation of controls and a freeing of the field for private enterprise. But the facts of the economic situation permit of no compromise, the dangers are real and ominous. Mr Gaitskell has, in fact, handed over a heavy task at a highly critical moment-and it is no small tribute to Sir Stafford Cripps's successor that the Conservative, leaders openly agree that Mr Butler's ideas for tackling the problem are almost indis- tinguishable from Mr Gaitskell's. To conquer inflation, the widening discount at which sterling is being sold in free markets, demands a policy of courage— with which the imposing of fresh austerities AS a starting point Mr Butler appears to be well endowed. No The other course could fill the bill, unhealthy state of Britain's balance of payments and the allied problem of domestic inflation are common knowledge. But it cannot be said too often that these two problems are not separate. but merely the reflection of each other. They can be solved only by. a financial policy which will stop inflation in the United Kingdom. The first aspect of inflation, the rise in the cost of living, has been grimly Impressing itself. Since 1945, the increase in prices has probably more thian offset the contribution to the standard of living which the new social services were planned to make. The second aspect is its effect on the sterling-area system. The mounting Bize of Britain's debts and the rigid exchange policy are disintegrating forces witness Australiani, talk of new
Kingdom sterling liabilities mount with a relentless progression-in June of this year Britain owed £3,100 millions. Another most disquieting trend is the extent to which Britain is living on the dollar earnings of the Colonies, who are prevented from freely converting their sterling into either goods or dollars, and must willy-nilly run up their sterling balances. All of which warns that Britain's back is getting close to the wall. The Labour Chancellors have tried every expedient and every temporary device to postpone the time when Britain must pay its way, and they have learned by experience that even stringent exchange controls cannot preserve a balance in Britain's dollar account. With the aid of the Marshall Plan, Sir Stafford Cripps managed to triple Britain's gold and dollar balances, but pressure has been severe in the last 18 months and dwindling has become 'alarmingly rapid. There appears to be some con- flict of opinion in the Tory Cabinet regarding appropriate methods to bring this to halt. The Rt Hon Oliver Lyttelton, original first choice for the Treasury, advocates working towards the convertibility of sterling. Mr Butler believes in convertibility is an ultimate aim but insists on the necessity, first of restoring confidence in the pound. And that appears to be the only sound approach. Premature action would defeat its object, destroy the value of additional emergency measures, Mr Butler's proposals follow closely the Gaitskell formula, and survive the test of preliminary examination, Whether they are wholly sufficient to accomplish the aim raises perhaps another question. Side by side, the country must make untiring efforts to produce more abundantly and more officiently. In that sense, the TUC assurance that they will work amicably with the Conservative
Government sounds » highly gratifying
for it
Casablanca Rioting
Armed British soldiers escort two British house- wives who ventured out on a shopping tour in the Canal Zone lown of 1s- mailia in Egypt. The soldier on right is helping to carry Baby's carry-cot. Following recent disturb ances all wives of British personnel must be accom- panied by armed British troops when they leave their homes-London Ex-
press.
WARNING BY MINISTER
British Actions
Resented
Cairo, Nov. 1.
The Egyptian Interior Minister, Fuad Sirag:
Ordeal Of Crew On Blazing
Tanker
Sidney, Nova Scotia,
Nov. 1.
Eighteen men told today el Din Pasha, tonight announced that the British how they huddled on the authorities had cut off all fuel oil from the Suez blazing deck of their 8,000- Canal to Cairo and it "may lead to revolution." ton tanker for 24 hours in these words: "The British authorities stopped barrels of petrol and 10,000 He gave grim warning to a press conference while flames ate ever closer to the cargo of 20,000 all fuel oil reaching Cairo from the Suez from dawn barrels of oil. today. This creates a dangerous situation which may lead to revolution."
They were the survivors of the Panamanian tanker Tran- spet, which was ripped by an rence, off the Magdalen Islands, on Monday night.
The Minister also warned the British to stop expell-explosion in the Gulf of St Law ing members of the Egyptian police force from the Canal Zone.
"The Egyptian_government won't tolerate the con- finued expulsion of Egyptian police forces from the Canal Zone by British forces," he said.
Egyptian quarters reported has offered Egypt 5,000 tons of that Britain's ejection of newsprint of which this country Egyptian police officials and is short; also oll, heavy trucks, labour leaders already had wood, wheat, maize-all to be Irought a steady stream of bartered against cotton. Egyptian desertions from British The offer is being examined umployment.
by the competent authorities. Sirag el Din Pasha said London Express Service. Egypt had offered, during negotiations with Britain, full support to the Western powers in the event of war jf the British forces quit the Suez Canal Zone.
"Egypt proposed
Jebb Defends Angio- Egyptian
10
to
HK Against Criticism
From R. M. MacColl
He
the
during the negotiations that, should the British forces evacuate the Suez Canal Zone,
.
Baby Swallows
Nine Pins
Two men died instantly. The survivors arrived here to- day in the British treighter, Ottinge (2,870 tons). They were only about 10 miles off- shore but all lifeboats and rafts were destroyed in the explosion.
No one knew what had hap- pened. The are which followed the explosion spread to the radio room before the wireless officer could send out in BOS.
without
IN NIGHT ATTIRE The men were left food or sheltér, most of them dressed only in their night clothes. They wrapped burlap bags around their feet and bodies and covered themselves with sawdust in an attempt to keep warm.
The Ottinge was on her way to England from New
Bryn-
swick on Tuesday night when the same across the sinking ship
Mania, Nov. 2. The government-owned North she would be willing to - General Hospital has issued an operate alt out with
the urgent appeal to the pubile for Western democracies in the financial aid in saving the the event of war" he said of an 11-month-old girl who and took the survivors aboard,
British tanks herded Arab swallowed pine pins, one of Shipping sources at Montreal workers from villages to Army which is embedded in her left said that the tanker sank after camps today Go the
Cause Egyptian lung and might cause Infection. being abandoned. The
the underground in the Suez Canal
explosion was nob Specialists agreed that the of Zone warned Britons that they child, Elvira Difuntorum, should "known. would exact an "eye for an eye, a tooth for a tooth."
SAFE CONDUCT
be flown immediately to the The tanker's skipper, Captain United States, where special James Bard, said: "Thank God 'facilities
the
was
The morale of the crew was:
wonderful under the most try- ing conditions imaginable.
Those killed and injured were
un- all from Germany Beuter.
ANOTHER RESQUE
Halifax, Nov. I fishing-boat, Theresa,
where
me-
New York, Nov. 1. Sir Gladwyn Jebb, Bri-
and instruments are we had fine weather. It was the British tanks rumbled into Tel
Kebir, Korein and other available for extracting foreign only thing that kept my men tain's chief delegate to UNO el
alive." deals with one of America's villages at dawn looking for bodies.
The Hospital Director, Jose most bitter complaints Egyptians employed in Army against Britain-that of along the Cairo-Ismallia Reyes, in appealing for help. road, according to reports reach-explained that Elvira's parents Reding Cairo.
and -a four-peso-a-day clerk trading with enemy
5 sekunstress wireV/ETE China from Hongkong—in
able to finance the $2,500 trip to an article entitled "Why
Egyptian BOLLACES sold that ne URLAKS Staves and
A British seized workers at was danger the child might die Pick on the British?" in the the November issue of an gun point and drove them to if she were not operated on in headed for Portland, Maine, to
day with seven seamen picked American magazine.
work, but the British claimed three or four days.
X-Ray that they were only giving the
examinaions, which up from dories in the chilly "No arms or declares:
being made every were 115-ion trawler
Atlantic yesterday
after their munitions have ever been sold workers "safe conduct to pre-are
Wind had vent them being "timidated" ours, showed that eight of the caught fire and burned to the Chinese Communists
by nationailst Teaders melting pins reached the stomach
but waterline. from any British, territory, In
them to leave jobs.
ninth was
was the fourth lodged in the fact we send them nothing we
Nova So-called Egyptian "liberation Jung and sinking deeper.
murine disaster off the think could possibly contribute
battalions" announced that as The mother told the doctors Scotian coaste in as many days. their military strength from today
The Wind, a 78-foot schooner, all "collaborators she
busy, sewing when Ordinary trade in civilian goods caught selling or transporting Elvira, who
was playing with burned fiercely after a on but
chanical failure had started the low a very
three-year-old brother on fire in the engine room. supplies to British forces would her be publicly lashed and brands the floor, suddenly started cry- Marine headquarters here And to out it off, he says, burnt on their daces as a life-ng. She said she then found said that the Wind's crew spent would not
have the slightest long mark of treachery “ the botue in which she loept two and a half hours in open Casablanca, Nov. 1. effect on Peking's ability to
Informed sources in Ismailia pins lying open empty beside | boats before being picked up,-** One Moroccan was shot wage war.
United Press, As for Hongkong, Sir Gladwyn said that the decision had been ne giri-United Press, dead by the police and four
taken to evacuate British Jebb says the effect on it of families from Fayid. policemen were injured in cutting off all trade with the
The Arab League's Secretary- rioting outside a polling mainland would be fatal. And General, Azzam Pasha, said that station in the Ghalef quarter surely, it is not in the interest there would be no meeting of
ters before the United Nations And, he adds the weakening Assembly opens in Paris next of Europe and Britain which Tuesday. Moroccan nationalists, sup- would result from a complete However, Arab delegates to ported by Communists, tried to prevent electors voting in the stoppage of all trade would be the Assembly would probably polls for the Moroccan Conail-more likely in the long run to confer on the four-Power Mid- tative Chambers, which took result in the slaughter of British dle Eastern defence force pro- place throughout the Protec-and American troops than most posal, he addedUnited Press. things we could do at the pre- sent time."-London Express
gees
ONE MAN KILLED level."
at
of Casablanca today. Many that "this bastion shall fall"?
either of Britain or America member states Foreign Minis-
arrests were made.
torate today.
It was the first political Service. disturbance in Casablanca since the war.
Singer Charged With Murder
Rome, Nov. 1,
Soviets Start Campaign
Those who tried to vote were sioned. The police, driving thé demonstrators away, were also
From Charles Arcache met with flying stones. Fight ing started in which demonstra-
Alexandria, Nov. 1. tors used clubs and iron bars.
Nahas Pasha is preparing the The Police today arrested an speech from the throne to be Reinforcements of troops Italian baritone and charged delivered at the reopening of were called in to restore order. him with the murder early this Parliament on November 15. Voting in other porta of morning of
30-year-old Italian The speech will confirm Egypt's Morocco was reported to have film actor. Ermando Randi.
well-known stand, but It will taken place quietty.
Tho Police allege that the also reveal measures taken by singer, Giuseppe The Legal Party and other Roof uppe Maggiori, shot the Government to implement
after a furious rionalis! groups and the Comaht in the apartment they lived abrogation of the treaties with Egypt's new. position following munists have been calling on in together. elcutors in Casablanca not do vode, The actor, one of the most Russian diplomats in the whole on the grounds that the leaders of promising of the younger crop of the Middle East are taking the Istiqlal Party early this year of inllan film stars, died in advantage at the Anglo-Egyptian were expelled from the Consulta hospital, Reuter.
| 1!ve Chambers.
The Istiqlal Party put so no candidates in these elections, although retaining the right to do
10:
HOUSE CAVES IN
Britain.
tension and deploying the gcontest activity. They argue the Arab nations are orientals and consequently they must Lerida, Ezpain, Nov. 1.) thor
www eyes to the Orient, Four people were killed and which Tänsla is a member, af four other seriously injured"
They are
Owing to the French adminis- when a four-storey house in the offer military di
pollaboration
tration having extended the town of Leride, in the north- They "Vill- cosuldar is an un sufridas domeniiaans ma well en waitern part of Spalb," caved in. friendly
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repped Meantime they are
offering
elastjórin⠀⠀ pankiai: 10,000 ⠀ three rushed to remote: the,
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