THE CHINA MAIL, MONDAY, APRIL 13, 1953.
REARMAMENT & ECONOMY
Patent Absurdity Of "Dependence" Argument
But Painful Readjustment
Economic Aid For Pakistan Suggested
London, Apr. 12.
A suggestion that the British Commonwealth and joint policy to bring Pakis. fan firmly to the side of the West by helping to put the country on a sound economic basis is made in "New Com- monwealth's" current issue.
America should devise a
the
A Definite Possibility
(FROM OUR OWN CORRESPONDENT)
London, Apr. 12.
The recent fall in commodity prices and the paralici movement on the world's stock exchanges cannot be explained in simple terms of war and peace.
To attribute these developments to "fears" of peace would not only be to malign businessmen all over the free world. It would also lead to the Conclusion that the West has become permanently dependent upon a high level of armament production to keep its factories working. And that is patently absurd.·
The danger forseen in the peace proposals put forward by the Soviet and Chinese feaders is not that the West may go bankrupt overnight if rearma. ment ceases but that the period of readjustment from somi-war to the normal pattern of production might be exceedingly painful for certain countries outside America.
reflected the view that li might, there was selling here but t was moderate,
The periodical recalls despondeney felt in Britain due tu the trade recession Jast
This is no reason to prolong A direussion of the possibility (recession In the United States. rutumn, when businessmen were the reartnament programmes et a recession in Ametien decs When advlees from New York asking if it was worthwhits to day more than necessary but 11 | nat nevertavily imply the belief risk capital in Pakistan under i does argue for caution. And it that such an event is probable, existing conditions.
¦ is caution rather than fear that But the fact remains that what hat motivated the recent move has happened before in "normal" neot of commodity and rock years could happen again when abnormal conditions are removed. There enn lie no denying the
There is no need to resor: to
to determine
the feet that
treanument hus innln-hypothesis
American famed Western employment at likely effect of an
the sterling area. very high level. It has also
Recent experience is enough to
"There could surely be no fear of the collapse of a country that could plan and carry out such an astonishing scheme
the Thul project, for instance", It points out,
i
prires.
my raw materials.
Il goes on to cite the Koti anderested in abnormal demand for Taunga irrigation schemes as further examples and declares "Prospects such as these thould stimulate British interests in the economy of Pakistan."
Meanwhile, Pakistan coked hopefully to British co-operation In working out her plans,
INDIA FAVOURED"
Pakistanis are But
anony Inclined to thiluit that both Bri- lain and America, since Parti- tian, have been more inclined to favour India than Pakistan.
!
There have given the im- pression of prosperity without the reality.
on recession
show that it would be severe.
1949 DISASTER In 1940 a mere pause in the American gross growth of the To test the truth of that
national product statement it is unly
caused U.S. necessary imports
from
tho
overseas
le consider what rearmament sterling rep to decline by 15
per cent and those from Britaini itself by over 20 per cent.
has involved for Britain,
A high level of defence pro- duction
was superimposed 1) an economy already overburden- ed with other pressing demands Government
expenditure
in the
The result was disastrous for the sterling area and led to a mass devaluation of currencies, Again it should be stressed that the decline of American
creased. at a time when need was for it to full.
Taxes, already to a high, spending for rearmament pur- ven further. Exports had pases need not necessarily be fall in be maintained despite the followed by a serious
Arne.
Other forms of spending might be and probably would be encouraged to take up the sluck.
Jack.
"It is time that on effort was made to create a better feeling, Ni between Anglo-American extra demands placed upon the production.
and Pakistan," comments the engineering industries and this blo: : periodical
I recalls that unlit recently, could only be done at the expense Britfth and American laten much-needed Investment nt undervalued the importance of Pakistan in the defence of the Middle East. Bul lately the American Press had comphasised the necessity of the West being on good terms with Pakistan.
The article concludes by re calling
comment in a recent
New York Times editorial on Mr John Foster Dulles Asian tou:.
"If Dulles con bring about
IF IT CEASED
In short, what the rearmament programme meant for Britain Was the postponement of the return to "normality."
On the other hand a fall in rearmament outlay might coincide with a reduction of con- sumer and business expenditure in America. This was considered possible even. when it appeared
that tho
American therefore, that if certain follows, rearmament ceased the train of rearmament programine would readjustment to peacetime con-proceed according to plan.
But the possibility must HOW itions that was partially aban
accent eventa.
It
State. he will have made an nd-doned in 1950 could be resumed he reconsidered, in the light closer ties with the great Aslan contribution to the
log enuse of peace" that paper had declared.
Therein Hen the challenge, comments
Common "Now wealth" America and the Commonwealth should take it and tive Pakistan the up
help she needs. economic London Express Service.
HONGKONG SHARE MARKET
SHARES BUYERS BELLERS. BALEN
INSURANCES
without delay.
lost to countries
ian armus programmine.
over
the
has undoublely fortunate the
ના
the
Schedule In
Trade Pact
Not Fulfilled
Colombo, Api. 12. Paklatan applied Ceylon only 10,000 tons of rice of the 150.000 tons listed under the Ceylon-Pakistan trade agreement, which ran for 18 months from July 1951.
Wheat flour and pulses were not supplied although Kizablo quantiles werd listed an avaliable in the schedules to the trade part between the two countries
Ceylon's exports -to Pakistan were also below the levels stipulated in the agreement, except in, the case of copra,, vocoanut oll, cardamoms
and coir pro-
ducts
Pakistan's fatture to supply all the food items rulputated in the schedule was due to the deteriorating food position in that coun- try itself due to thin falture of the monsoon in West Pakistan.-United Press.
Demand For
European
Steel'
13
Australian Production
Of Gold
ounces,
Canberra, Apr. 12. During 1952, the mine pro- duction of gold was 879,308 fine representing
In- crease of 83,837 ounces (0.4 per cent) on the production In 1951, but a decrease of 060,300 fine ounces (10.5 per cent) on 1930 production, Government figures showed today,
The total rednery production
MESSAGERIES.
Ontwards
M
MARITIMES
M
PASSENGERS/FREIGHT SERVICE
"FELIX ROUSSEL"
"LA. MARSEILLAISE"
Leaver Mareuitas
salled
17 Apr.
Hongkong
18 Apr.
For
►
-10-J2 BAY
· Stanila Jokohama
tlong kong
19 Apr.
Due Marseilles
Via
20 MAY
Raigon
31
June
Яalgon
West Africa porta, j
llamowards "FELIX ROUSSEL" "LA MARSEILLAISE” 22-23 ay
via Marseilles to all Mediterranean & via Djibouti to Madagascar.
Outwards
of new gold of Australian origin | "MONKAY" duding 1952 amounted to Homewards 1,000,048 fine ounces (valued at "MEINAMTM £A16,490,434). Whilst this "PEI-HO" represents an Increase of "MONKAY" 149,809 fine ounces (17.6 per cent) on production In 1951, It
still 636,086 fine Ounces (38.9 per cent) less than pro- duction in 1940..........
The mine output of gold in Australia in 1939, at 1,045,097 fine ounces, was at its highest
level since 1918,
Following the outbreak of the 1930-46 War, losses of man-power through enlistment in the Armed Services and Transfers to more essential work associated with the war effort resulted in a sharp full iza gold production to 830,867 fine ounces in 1944 and 837,213 fine ounces in 1945.
FREIGHT SERVICE
Leaves Dunkirk-19 Apr.
Дедусо
•*•, •Keelung—z Apr.
Heilung-28 Miny ..Keclang-29 June
Hongkong
4.3 June
For Japan
Longkong
For
3 Apr.
20 May
I July
† Salgon, Marseilles, Algiers, Oran, Tanglers, Casablanca, Le Havre, Antwerp, Rotterdam & Dunkirk CIE DES MESSAGERIES MARITIMES P.O. Box 63, Hongkong Queen's Building (Gr. Floor)
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Following the release of The Financial Times Index of
man-power after the' war there an upward trend iti
was leading industrials
closed the
mine production of gold unti week at 121 compared with dis
New York, Apr. 12. peak of 123 three weeks ago.
1947 when output was 937,054 Despite record output of
fine ounces. Last June, before the current American steel, demand boom started it was 103.
Cutput fell
ogoln in 1948 to growing for more European 885,307 fine ounces and re- During the week, Imperial steel, principally
cold-rolled
below mained
900,000 fine Chemicals fell 2/-, Vickern 1/-, sheets, Industry sources report. ounces in each of the years Dunlope #d, and Courtaulds 6d.
They describe the new demand 1940 and 1951, notwithstanding Oils were inclined to slide for the foreign inetal as a the increase In the price with Royal Dutch
"boomlet" and attribute it most geld from £A19.15.3 to £A15.9.- and Anglo-Iranfan sterking Shell down 2/-.
to increased
pro- 10 which became operative fram duction following removal of Sept. 19, 1949. Czarist Russian 1000 loans,
government
quotas. Every In 1052 mine gold output closed at £3 per £100 bond. after doubling in price to 21. major auto maker has scheduled increasexi to 970.388 fine ounces, higher output since the Arst of this being the highest Agure Japanese bonda fluctuated a the year,
with the
since 1042. present recorded
Since good deal but made substar ial prospect the industry may build December, 1951 gains.
the bulk of For Freight and Further Particulars please apply to:- Tokyo electrics soared
this Australian newly-won gold has more than 6,000,000 unlis £7 and 1907's and 1903's about year.
been sold an oversea premium £4.-United Press..
down
and
Close Race® For Record Production
or tho
New York, Apr. 12. Did Japan
United States lead the world in ex- ports of colton cloth last year? Both claim the top figure which apparently is close.
an Last
ہو
car
NEXT SAILINGS
1.Y.
of
*m.v.
m.v.
"LEXA MAERSK“ "РЕТРВ МАЕЛЯК" "JEPPESEN MAERSH"
Apr.
May
May
⚫ Calling Vancouver
ARRIVALS FROM U.S.A.
M.Y.
"LEISE MAERSK”
Apr.
m.v.
1.v.
"JEPPESEN MAERSK“ "ORETE MAERB}"
Apr.
Bay
of
The rush for more steel has markets.
Refinery
production the imported pushed the price material up about $10 n ton, newly-wen told of Australian Cold-rolled sheets from Belgian origin hus shown broadly movements 10 inino mills are quoted landed at New similar
There York for the equivalent of nine production.
of gold pound for the most carryover
1941. for relining United Press,
cents
wus some mined in In 1952.-
Big. Steel Output
common variety-- 20 Hauge This compares with the Ameri- can price of about $7.00 a pound: Two large importers-one of Belgian steel, the other repre- senting French mills are sold up until July, and buying in-
Calcutta, Apr. 12. quiries are said to be coming in
The Nation's sical mills pro even for this forward delivery. duced over 10,000,000 tons of Demand for other types of steel in March, the greatest European steel, although some-single month's output in history, what better than last year, is the American Iron and Steel reported only moderate-A- Institute
today,- sociated Press.
Textile
estimated
United Press.
Industry
In Grip Of Battle Of Styles
New York, Apr. 12.
The battle of the blends and the straights has the textile industry in its grasp. Blends are the immediate worry-with the problem of how the consumer might react if peace comes in Korea left over for the future.
When the battle is resolved, textile spokesmen think the industry may have within reach a cure for some of the ills besetting the industry in recent months--and perhaps better fabrics for con-
sumers.
Cause
W. A. L. Sibley, President of of the American Cotton Ment facturers Institute, claims the Government expenditure on
THE DANGER
honour for the United States, arms would fall; taxes could be On this new assessment the giving a 1952 export figure of
760,000,000 square yards. reduced and incentives to work danger
by Western British Cotton
The forescen and save would be restored.
Board does A businessmen, and reflected in the little better by America, plac- The engineering frilustries, recen! fall in commodity and
the Agure ing freed from the pressure of de-industrial share prices is that an
at 781,000,000 square fence commitments, could then American
is far recession
But ds. concentrate on satisfying home more likely
claims on export It rearmament, total of 781,844,000 square and overseas demand for their instead of talling gently, yards. Even so, that represents products.
comes to an abrupt halt.
n drop of about 333,000,000 reduction of costs and The
What would follow would square yards for Japan, down the extra investment in up-to-depend
อาท
upon the policies from 1,094,513,000 exported in dale
equipment thus
by made adopted
American 1951. possible would pince Britain in Government.
The United States, however, a strong position to recupture { While these policies would far outstrips all other countries the export marketa she
seck to minimise in production of cotton cloth.
of damaging effects
year American output enough not to be burdened with American recession on other totalled 0,291,000,000 yards, consideration followed by India, 4,522,000,000 some countries, would also have to be given to and Japan, 2,200,000,000, U.S. INFLUENCE
public opinion in America,
America also led in produc- Economist" tion D5 "The
of woollen cloth and But if all this is true, why
And,
out recently, full of woven synthetics. Wool out- (From Our Correspondent) have industrial share
prices pointed
cost in four per
the put
415.2 million was about fallen since Malenkov and Muo abou
of American output square
yards. France WT13 Business done on the Stock Tre-tung began their unexpected volume
would
be regarded by many second with 385.2 million and Exchange this morning amount-? wooing of the West?
as a healthy Britain third with 369.0 million The answer lie, in the all-US, businessinen ed to $581.390. Noon quotations
not a genuine The United States produced and the morning's transactions: pervading influence of American adjustment,
of woven production
2,142,000,000 yards whole recession. | Western world.
A decline of this extent in synthelles last year, followed and The downward movement of American Industrial activity by Japan, 751.5 million
.The real problem: Not which ; troublesome stalle that stock
Wallfollowed by a corresponding tall Britain, 586.4 million. prires began in
natural or synthetic fibre is best. some man-made fabrics to cling demand
Cotton's popularity In for imported
the but which one or which com-to the body Street and spread to other stock 18 US
keeps researchers materials and consumer United States
is being more bination of two or more is best awake nights. exchanges. The sentiment be- raw
It's on the for a specific use by a
The dye e customer.
troubles are being hind it was, of course, fear of a gooxls would have disastrous than maintained,
sterling ascendancy, due largely, to in- for the recession in América if defence consequenɛci
How the public reacts to the conquered, some mills report. erensed use in sportswear. Last new blends to production
stopped was
or area,
be offered next Celanese has colour-fast Cela- yeur, American textile mills autumn could start a drastically slowed down 15 A
consumed About RISK NOT GREAT
new perm. Union Carbide Carbon is revolution in billion result of the Communist peace
In the textile in bringing out colour-fast Dynel. The last time it happened was pounds of cation.
In January, dustry-some have even com-Chemstrand now has colour-fast moves.
natural fibre, in 1938 and then U.S. imports the
which has pared the prospect of readjust- Acrilan. Courtaulds new plant But, on vefication, this inter from the overseas sterling area trailed rival rayon since the ments within the industry to the noar Mobile, pretation of events was seen to be fell by 50 per cent and those war,
zoomed ahead.
revolution that a 18.00 mistaken-or at least too hasty, from Britain
came by over 40 per sport shirts made in January use of the power loom 113 For, whatever reason the Com-
biggest year as cent. 11.20 munists have for wishing to
Right now, however, the in- blending fibre Is predicted by no need to enlarge eent while rayon fell to 40 per There is
Karrh. Fibre Division come to terms with the West, upon the effect this would have cent. Even more sensational industry is split wide with claims John
and counter claims. leisure and 18 abundantly
balance cotion's comeback in clear that
And the Manager of Virginia Carolina on the sterling_area's nothing has yet been sold or of payments.
In any case the trousers. In the first five weeks consumer is mostly just confused. Chemical Corp-more of the
year manufacturers One textile mil executive sug-fibre ik Land (0) 859 57 to 31 done to induce the West to re- risk of
avaliable und Д wider a major setback as of this lax is defence efforts,
described above is not very produced 110 per cent more of gests a "consumer textile elinle variety of blends. Shai Land, 1.40 1.52
When this was realised, in-
such garments made of cotton to test the advantages and draw-
Dow Chemical, which now has dustrial
point than a year ago. In the same backs of the various fibres and an onnuni capacity of 50,000,000 share prices staged a
"From a businessman's
pounds of Saran powder, predicts New fibres and blends come a big increase in its use as a rally and have since remained of view, however, it is sufficient period, output of rayon cloth their blends.
ing of this type was up only 17 that it exhis.
out right; along. But many of blend with wool. Du Pont is To surn up it is not a sharp per cent.
cofton's comeback, the synthetics are still held to pushing new plants to bring Sparking curtailment of rearmament pro-
new comparatively small volume of Orion capacity to 30,000,000 But, if their understanding of grammer as such that alls manufacturers say,
Western businessmen with fore-styles, and new finishes which use some because adequate pounds this year and Dacron to
tho political developments was at
wrinkle facilities for making them are 35,000,000 pounds next year. Both as the dim. make tunk,
boding so much
and still being bulli, and others be- are coming out this autumn with businessmen are unculties that would have to be resistant, spot-resistant, doubtedly
in assuming
fresher look than rayon the natural fibres availabje. was readjusting itself to the Communist
Associated Press.
SPLIT ON THE TREND 20.80 21.25 7500 7 20.sations between the
700 4 11.63 and capitalist worlds would new patterns of production and
spending that would emerge. confront the West with many And, if the events of the economic problems.
Fear of a recession in America past fortnight do, in fact, lend to a detente, thogo. difficulties when
defence expenditure be may appear. sooner than ex- gina to decline sometime next pected and in more urgent year had been expressed long form. before the world saw new hope
peace. Prompt netion by the United
Caution
Union
Underwriters
TIK Fire ...
SHIPPING
Aria Nav
DOCKS. ETC.
DANKS
HK Bank
1400
Enat Aria.....
147
250
793
540
154
..1.25
K. Whart...
73
K. P. What 0.10
250
Provident 11.30 11.30 600
S'hat Dock
1000
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715 7.60
7.30 7.40
Dock ...... 10.30
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UTILITIES
21.0 ... מוודל
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INDUSTRIALS
Cement
STORES, ETC.
“Dairy
Watson
COITONS
EWO
100 23.10
1000 23
100 23.30
17.00
500 # 14.00
2.43
200 2.43
MISCELLANEOUS
Yangio...
Exchange Rates
#
firm.
'RIGIIT ASSUMPTION
Tight
great,
cotton accounted
fabric
4.5
for 34 per
#ro
Alabama, bonsts
with the ayun.
that a return of normal rela-faced while Americas demand also give the fibre a crisper; } cause they sill cost more than tends to give synthetics a role
of
*Sugar Output 100
Record?.
a
The industry is spilt on tho trend, G. M. Bishop, President of Pendleton Woollen Mills, saya they'll stick to all virgin wool and have no blends.
| in all-year-round clothing use. Nylon is offering new ultra-sheer 12 denier hosiery,
NOT TOO WORRIED The older Abre makers aren't Last year. too worried, however, Sydney, Apr. 12.
synthetics accounted for about 4 Australla may -produce
per cent of the fabrly market, record' 1,250,000 tons of sugar ( But Francis W. White, wool 7 per cent, rayon 17 per this your. Output in. Quecas President of American Woollen, cont and cotton 72 per cent: land, the country's largest pro predlets
ali that by 1000
And cotton mills are pointing ducer, is estimated at 1,418,978 then's summer suits will be of with pride to the current fashion States Government could pre- In general, the maint
tons, over 70,000 tons above synthetics, and winter sulle will demand for cotton sport-shirts from occupation of the Stock Ex- the estimated assured market. be woollen and worsted, blended and cotton leisure-year trousers. this developing into a slump." But changes should be realised Present known markets will with man-made fibres. They say both are pulling ahead nothing any government could then. this has been a fairly take 1,100,000 tons 500,000 men are working hard of rayon this year. Total cotton
Hairly Is holding pa do would prevent a decline of strong bull market since June for the home market and G10, to overcome the disadvantages consumption indongdian guliden, (per 1001 1053 American' demand from spread of last year was whether an d00 for export under the British that some synthética have. l'éven with the postwar - average, ing its effects throughout the armiifco In- Korra: 'would or Commonwealth Suyor: "Agree" | Laundry, and dry, cleaning although? below; the ~ peek... free world.
would not cause a temporary. | ment/"Absociated Press,
problema are being studied. The | Associated Press;
Divinem was done in the local soficial éxchange market
mastner at the following, rates;==
UB. Obike) (per, 813 aan
Sterling nudo (per. Ell
Stamtinis ((per -100))
Hapore - (Bireita)
72 plastres (per 100)
51.80
vent such a
recession
THE STOCK EXCHANGE
London, Apr. 12
prei
AGENTS:
JERSEN & CO.
Pedder Building.
Tel. No. 36066-9
Chinese Freight Booking Office
27, Connaught Road, C,
Tel. 20461
Dates and rotation subject to change without notice.
At liberty to proceed via other ports to tokd/discharzo cargo.
EVERETT
LINES
EVERETT ORIENT LINE Fast regular freight-refrigerator-passenger service to Korea, Japan, Philippines, Indo- China, Siam, Malaya, Rangoon, Calcutta and Chittagong.
"BRADEVERETT”
Arrives Soils
Apr. 22 from Manila, Apr. 23 for Singapore, . Rangoon
“REBEVERETT“
Arrives. Sallg
Ac
Penang, Calcutta,
Apr. 24 from Singapore.
Apr. 24 for Yokohama.
(Accepting carro for iranshipment) Kobe/Pusan
and Kobe/Okinawa)
EVERETT
STAR LINE Fast regular freight-refrigerator-passenger service to Korea, Jagan, Philippines, Indo- China, Siam, Malaya, Colombo, Bombay,. Karachi and Persian Gulf Ports. "STAR BETELGEUSE”
Apr. 22, from Singpoore,
Kobe Apr. 22 for “STAR ARCTURUS“
Arrives
Sails
Arrives
Salls
May 1 from Japan.
&
Yokohamn,
May 2 for Singapore, Port Swet- tenham, Madras, Colombo, Bombay, Karachi, Khor ramshahr, Basrah & Bahrein. (Accepling casso for transhipment) Kobe/Puran atid Kobe/Okinawa)
EVERETT STEAMSHIP CORPORATION ·S/A Queen's Building, Telophona 31206, Chinese Department: Telephone 28293.
BUSINESS REGULATION
ORDINANCE 1952
Copies of the prescribed Forms 1(a)' 1(b) and (c)
Now On Sale at 5. C. M. Post, Ltd.
HONGKONG AND KOWLOON
TEN CENTS EACH