K

1

CORRECT on all occasions

VULCAIN

SWISS

MADE

Eight Big

Die In

Blaze

Westfield, Mass, Jan. 7. AL least eight died here when fire swept

peopic

a business and residential building and all five floors collapsed in a langle

Barive wreckage

today

Fourteen were

of

early

at first

belleved dead but later police

and Red Cross

olicials said that six had

been accounted for.

Fourteen others

Injured. 12

were

uf them

seriously, and damage was

estimated

at more

one million dollars.

Water poured on

flames quickly

Ice. Reuter.

than

the Juried to

New Posts

CHINA

No. 35094

Established 1845

TUESDAY, JANUARY 8, 1952.

Today's weather: Moderate and dry with clear sky.

winds from NE- quarter. Cool

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Mr Butler's PLAN TO STREAMLINE N.A.T.O

Bad News

DISCLOSES BRITAIN'S

GRAVE

ECONOMIC SITUATION

London, Jan. 7.

Mr Richard Butler, Chancellor of the Ex- chequer, stressed the gravity of Britain's economie erisis when he addressed a Press conference to- night after the Treasury announcement about Bri- tain's losses in gold and dollar reserves.

If the drain on Britain's reserves continued

For Erskine unchanged at the rate of the last quarter, it would And Evans

take Britain only about another three months to be back where she started when the Pound was devalued in September, 1949, Mr Butler said.

At that time reserves hit the Britain's ability of her intention

to make us keep Sterling strong war low ut $1.340 milio

--Rout

London, Jan General Francis Woman Festing, assistent Chief of Staff

7

Britain's

will

nounced

In General Dwight Eisenhower's

Headquarters. Eumpran

i

11

HIT-

ouls November had hurdly yet been able to improve relieve General Si George the financial station, Mr Bul- Erstune. Bril.th Commander-

in Egypt. next April, ler said, but they would der so m-Cde!

increasingly from next month announced 10- the War Office

onwards.

day

Omes

command

by

cordance

THE POSITION

London, Jan. 7. Britain's losses

and in gold

fourth i dollar reserves in the quarter of 1951 amounted Lo

But the rate of loss D The $831,000,000, the British Trea-

fast TWO months of 1951 d been 11 great that further

sury announced today.

This was the highest loss on

with the devision announced on November 20 last year and action would be needed in 1952, recid there was no particular signif-, in addition to import cuts. cance in the change

Gen Festing is 49 years old and six fret four inches tall. Hr

kifantry Text an

through

brigade

the Madagascar cam- War I which pakt in World

The Chancellor foreshadowed.

DISCUSSIONS

1. Britain would discuss the dollar suation with her

part hers in the Sterling Area

for

This flowed losses totalling $598,000,000 in the previous three months and brought the British reserves of dollars and Lold on December 31 down to $2.335 million compared with $3.269 million on September 30 ihe War Office suld culied for, whon Britain is the banker, at As previously announced, the

skill. "military

and insight

deficit of the a conference of Commonwealth | gold and dollar firmness

solving political Pane Minisers opening next Sterling Ares 10 October was problems.

$220.900,000. The

Commander-1- acting

The fatal andelt for the quar- Chlet 6:0 British Forces in 2. She expected in time to ter was $910,000,000. But be- Hongkong, General Geoffrey benefit from the wort: being done jlated Marshall Aid receipts or Charles Evans, will be called on, in the North Atlantic Treaty $6,000,000 cut the loss to $934, to sacreed General Fronesi Organ;alion on sharing the 000,000-Reuter. Festing.

Chief of Organisation | ormon defence burden. and Training Services al

JET

Wh

Policies were rapidly being; SHAPE, the London Evening shaped to enable a large part of News reported tonight--United Britain's anctal-using industry to Press and France-Pressc.

incienso exports still further.

17 oz Egg Laid

Heesen Westphala, Jan. 7 A on here has ud an egg weighing 17 and a half ounce.. Tid was a soft-shelled egg W.E u yolks -Reoler

CANADA'S RESERVES

Ottawa Jan. 7. Canada's reserves of

gold and United States dollars stood at US$1,779,000,000 On December 31, the Finance Department announced here tonight.

This was an increase e-sental tasks. especially the $168,000,000 over the figure for expansion of exports and to per-, September 30 1851. fur them more efficiently

5. When Parliament re- assembled Government would further scries of announce measures

conerntrate 01

اما

Japan's Future Foreign Policy A Top Subject At Washington Talks

(FROM OUR OWN CORRESPONDENT)

London, Jan. 7.

Japan's future foreign policy after ratification of the peace treaty is said to be the key topic in the Washington conversations between President Truman and Mr Winston Churchill and Mr Anthony Eden.

However, there is in progress some reconsidering of positions and a remaking of plans. Until a few days ago

it was the determined British view that Japanese trade with the Chinese mainland should be encouraged and should become the major economic and political factor in the future of the Far East.

Mr Churchill and Mr Eden, Tse-tung, instead of in the tent set out to Washington with the at Pan Mun Jom, where there staunch determination to de is no Soviet delegate but where fond Brian's recognition of the representative of Mao

and leading negotiator. the Peking Government

by so doing to support the

stand of the Yoshida Govern-

ment in its rejection of Mr John Foster Dules' recent pro-

posals.

in

Britain stood for the maxi mum of

independence Jupane foreign policy.

Muscow

is a

propaganda-

Churchill And Jerusalem

Truman Reach

Agreement

Washington, Jan. 7.

President Truman and Mr Winston Churchill, the British Prime Minister, agreed today to work upon a project to streamline the North Atlantic Treaty Organisation and to make it more effective. The first formal conference between the two leaders at the White House considered a wide range of problems under two headings:

Firstly, economic problems involved in the Western defence offort.

Secondly, general North Atlantic Treaty Organisa- tion problems, including desires to simplify the present organisation.

were

An

Riots

Jerusalem, Jan, T.

»nt-German riot bruke up a Partisment session today and injured 85 polloz and 40 civilians, The rioters, estimated at several thonsand, brake through police barricades and hurled tear gas bombs Bud stones through Parlia- ment windows.

With some deputies wounded and many choked gas, the session was suspended.

by

The rioters WCTC pro. festing against direct negotiations with Western Germany over the repara- tions of properly of 6,900.000 Jews killed by the Nazis. United Press,

Carlsen's Ship

150 Miles From Falmouth

London, Jan. 7.

Speciar defence production Mr Eden said the meetings To British eyes this appears questions

assigned to a were "getting along all right". to be another example of the small group after the 65-minute Talks will resume al 11 ៥.រ. well-adden behind-the-scenes conference at the White House. Tuesday following a dinner struggle between the Kremlin The following statement was

tonight at the British Party and Peking that has

Embassy. at which the Pre- been issued. rought for domination of the "There was a general reviewsident is to be guest of honour. Asian Communist world in the of the economic problems TOP OFFICIALS PRESENT last two years.

involved in the furtherance of

first formal mee.ing bo- ...h The Enti delegation has

tween Prime Minister Winston The

the defence effort of the free off its balance now been pur

ce Churchill and world. Some specific defence cam-bait to Japan to seek trade links or

President Harry Prese by the Russian

Truman took place in the pre- Lagn following publication of with China appears another and

production

questions of special interest to the two Governments sence of the Foreign Ministers, Stalin's New Year message to equally subtle Soviet more

were referred

analler Mr Dean Acheson and Mr An- to directed obliquely against the Japanese people.

also group. Views were

ex-thony Eden, and a large num- The g of this campaign is interest of Meo.

changed on general North At- bar of top-ranking British and For one way for Moscow to that Japan

trade with

American lantic Treaty Organisation prob-

officials. Communist

continuance of the China, that Japan assure the

Among the American officials Hotels in the old Cornish port American "neutrality in

lems." Japanese

the must maintain

talks were The smaller

are already packed full with' group to which attending

Mr Robert her national interest, that Japan blockade of the Chinese main-

Lovett, coal land, is to launch

Defence newsmen and photographers. production questions specific Soviet American paya more for

Mr John Snyder, were referred is headed by Secretary,

Its Town Council has arranged would for campaign favouring Sino-Soviet Defence Mobiliser sho and iron then

trade. Such Russian behaviour Wilson and Lord Cherwell.

Charles E. Secretary of Treasury, Mr Averill an informal reception for Cap-

Harriman. Mutual Chinese coal and iron.

Security tain Kurt Carlsen and the crew Bradley, Chief of the Joint Chief Thursday.

with several

must

and

a

the

A

The crippled American freighter, Flying Enterprise, floating crab-wise 150 miles off Falmouth, is expected to reach the West English port on Wednesday.

སྙ

has suddenly taken up the same riendly to Peking while doing Truman, flanked by large mit Stail, apartment European Commander of the United States

In other words, Moscow radio as the advantage of appearing Mr Churchill and President Administrator, and General Omar, of the British tug. Turmoil, on line of argument that the British nga prestige the greatest tary and economic staffs, were

Admiral W. F.. Boone, the diplomats were intending to empossible damage.

scheduled to hold another High State ploy with greater subtlety in Repercussion of these argu- meeting at 10 p.m. GMT.

experts, including Mr Charles naval forces in the Eastern Washington.

ments on the Truman-Churchill When they will go into a new Bohlen, State Department coun-Atlantic, paid a high tribute tow This is mosi

cillor for Russian affairs, embarrassing discussions will be to postpone field

of discussion the

With The British statesmen

day in London to Captain Cari- and makes it almost impossible the talks on Japan's "post-House would not identity.

were sen. for Mr Churchill 10 sing in treaty" future. But American

assisted among others by Mar- At a press conference, Ad- Washington songs that are political observers do not believe

IN GOOD SPIRITS chal Sir William Slum, Chief of miral Hoone said: "This is coming from Moscow there can again be a dignifted already

BX- Mr Churchill seemed in the General Imperial Staff, almost an old-time sea epic of he Admiral Sir Roderick MacGre the sort that one does not hear "agreement to differ,"

ceptionally good spirits as slowly through

the gor, First Sea Lord, Lord about any more." announced, entirely

without walked

White House Lobby,

Ismay, Secretary of State for Admiral Boone said that if BS between Mr It is assumed here that this explanation.

Mr Churchill left the White Commonwealth Relations, and the Flying Enterprise had campaign in the Soviet Press is Thaman and Mr Attlee on the

House at 5.45 pm. well-timed subject of Formosa. This time deliberate and

Several

members are hard there will have to be explana British party move. Experts here

radio.

of

On December 31, 1950, the In conclusion. Mr Butler said - holdings were $1.742,000,000 that no one should doubt ither, Reuter

COMMENT OF THE DAY

Equality Of Relations

THAT Mr Churchill's visil to Washington has got off to a good start is encouraging, but not surprising. The sincerity with which the British Prime Minister invests all his actions and his statements has never, nor could it ever fail to impress his critics as much as his friends and admirers. Mr Churchill numbers among the most important objectives of his mission the re-strengthening of Anglo-American relations. He, as well as the Americans, realise that the old war-time partner- ship based on equality has changed by circumstances and default, and it will require all of Mr Churchill's genius to mollify this situation. Undoubtedly the most striking example of the dreline of Anglo-American post-war relations 18 the very limited collaboration in the atomic field. It was under Mr Churchill that an agree- ment for the complete sharing of atomic secrets was signed between the United States, Britain and Canada, But after the war "atomic relations" deteriorated, and the Socialists Government was unable to prevent it: in this field it lacked confidence. One outcome has been the MacMalíon Act which prohibits the United States from sharing any military atomic secrets with any other nation, and when Mr Churchill comes to discuss the subject with President

·Truman and his advisers he will find this piece of legislation a difficult brick' wall to surmount. Nevertheless, Mr Churchill and his Government have done three things since coming to power which have favourably impressed the Amerloans and which are calculated to help the Prime Minister in his mission. The now Government has made à positive attempt to reduce the tempora fure between, East and Wes in a manner of peach. I realism and resc

phly

shown with

imposed during the Labour Govern- ment's term of office. All three efforts have made their impression on the American mind. The excellent reception which Mr Eden's restrained attitude to Russin created in the United States

yome

weeks ago demonstrated the changed line of popular thought in America. The impression left is that Americans are becoming tired of name. calling and want to see a lessening of world tension. Less certain is American reaction to Britain's economic crisis. It is natural

be there should

some bewilderment in the United States în consequence of the announcement a few months ago that Britain would require no more Marshall Aid which has since heen followed by the revelation that the nation's gold and dollar resources and her balance of payments are at the lowest ebb in history. Americans will probably expect Mr Churchill to ask for a substantial loan to help the country out of its plight; and this is almost certainly the last thing the Prime Minister will seek. There are other ways in which the United States could give valuable assistance without too severe demands being made on its financial' resources or economy: Permis- sion for the free use of sterling to pay for hard currency purchasey would be a tangible and valuable concession: so too would be a temporary easing "of import tariffs. Britain, for her part has promised increased production and more austere measures to prevent inflationary spending in the British domestic market. Mr. Churchill will have his opportunity of explaining the whole position to the American public - when he addresses Congresa, this week and it is not undue optimism to anticl pate that reactions will be sympathetic and favourable, and that the way will be opened, for a new équality of relations, between Britain an United States

a

THREE

POSSIBILITIES

as

at work trying to decide which tions. And President Truman

following

allernative | will leave the explaining to Mr

reasons correctly explains this Churchill. Soviet "pre-Washington" gam

of the

Either

bit.

1. The Soviet Union fears Sino- Japanese trade and friendship and would prefer to see the policy suggested by Mr Dulles carried out--including Japanese recogni tion of Chiang Kai-shek-and therefore the Soviet is making deliberately embarrassing for Mr Eden

10 persuade Mr Deat Acheson of the correctness of the British and future Japanese recognition of Peking, or

2. The Soviet Union is making a clumsy mistake in trying again to expand smail Anglo- American difference of opinion into a major disharmony, or

3

3. Moscow radio may have blundered and be revealing the real desires of the "Moscow- Peking

bloc" to trap Japan into the Communist orbit.

In that case the Soviet cam- paign proves that Mr Dulles is right and the British argument is wrong.

Pleven

Government Falls

Smiles In Defeat

of left the House at 5.25 p.m. and sident Truman followed minutes later.

Lord Cherwell, Paymaster Gen-capsized "I think Captain Carl- the eral and private adviser to sen's chances would not have White Prime Minister Churchill as been more than fifty-fifty. Cer- Pre-well as several representatives tainly he was in very great five of the Foreign Office and the personal danger even though Ministries of Treasury and De- there were ships standing by." fence. -- United Press, and -Reuter, France-Presse.

As he left Mr Churchill was asked whether he had any state- ment to make. He replied, "I always borrow a most valuable American expression - No com- ment."

He was smoking a large cigar. The Foreign Secretary, Mr Anthony Eden, and the British Ambassador, Sir Oliver Franks, left with the Prime Minister.

President Truman and Mr Churchill authorised the follow- ed communique at the end of their meetings today:

con-

"At this afternoon's meeting between the President and the Paris, Jan. 7.

Prime Minister, their chief mili- Premier Rene Pleven's tary advisers were present. five month old Cabinet Several military matters were

received presented and collapsed tonight.

sideration. Talks will be re- The French National Assembly sumed at 11 o'clock tomorrow." ousted the coalition government

Arriving at the White House after hearing a final plea from at 9.49 p.m. GMT for his second Pleven for a freer hand to deal formal meeting with Mr Tru- with the economie situation in man, Mr Churchill was again this hand pinched country.

asked if he had any statement The defeat came when he de- to make on his meeting with the manded power to cut the 140.- President. 000,000,000 Franc deficit of the

"I am going to give you just nationalised railway system.

as good, as I did last time," he The Socialists, which have replied: three alternative reasons for the supported the Cabinet on t After this morning's meeting, Soviet campaign is correct.

issues, broke away on this one. he had answered "no comment Many of the railway workers to similar questions. From the first alternative it are Socialists and the Party

PARRIES QUESTION follows that the United States leadership feared economies on reporter

A

asked if Mr should decide on a shift of em- the roads would resuit in large- Churchill knew about General phasis in her Far Eastern scale firings and so declded Eisenhower

Prize and the nothing about that."

MOMENTOUS ISSUES

one of

Obviously

three different poilcies should be followed according to the de- cisions reached on which of the

Dolley

From the second alternative it earlier today to oppose the Minister replied, "I know

follows that Britain must reserve her position, saying nothing for the present and

government demands.

--- CARETAKER CABINET

The Assembly vote was an-

The reporter then elaborated, saying Elsenhower apparently

taking up the issue at a later nounced as 341 against Pleven was going to run for President

and less embarrassing moment. to 243 for

The Premier quipped; "You're From the third alternative it

Some experts said Pleven had going to have an election, are follows that Britain should h

good chance to get his job 07 We had one not long ago, withdraw her recognition of back. But Peking, and Japan should agree would be a long period first in in excellent spirits as he left Mr Churchill again appeared all agreed there you know to recognise the Formosa regime, which France would ding along the White House.

He smiled reporters, Smoking a cigar, he | Ambassadork

Դ

It will be seen that momentous with a caretaker Cabinet per and enjoyed bantering with issues have to be decided on the bups a month or more. basis of an interpretation. After the announcement of drove

with the British ? HIDDEN STRUGGLE the vote Pleven strode out of

Sir Oliver Franks, Naturally the British view is the chamber smiling to wait. The Foreign Secretary Me to cling to the first alternative his letter of resignation With Anthony Eden and the Becre

that Moscow is being curning him were two members of his

Mr Dián 1Acheson,

In Cabinet may tary of the State Depart

that

prensive Wyshinsky labeled him. Defence Minist minuter

In the diplomatic Georges Bidault of the Populer take of the Walle Hour

rent at the Us

United

hot Henri Qusuille, Cinere Communists war without Portrolla,/! Vyshinskyk

Korean

before resumption (ATR) Ware understood to have Minister cussed derman

amrat tira

A

AIR COLLISION

York, Jan. 7.

Me'ver je plane dived straight into the ground and the gilot was killed following a collision with another Metoer jet over Linton, the Royal Air Force station, near York today.

The other plane made a crash- landing with its wing tip hanging loose. The pilot was unhurt. The plane was badly damaged but did not catch fire-Reuter.

NEW ROMANCE PENDING?

Heraklion, Crete, Jan. 7. Crete's 20-year-cid "Juliet," whose runaway marriage has broken up in the glare of publicity, may marry again..

Her father, Liberal Deputy Manolis Petrakochiorghis, was said today to have had an offer of marriage for Julight-heg razl name is Tassoula from a Crefe-born American-Reuter,

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