*
Advice On Tin Policy
Washington, June 22.
The influential Washington Post sold today that the United States ought to be reazonabia“ in restuning tin purchaser in Bolivia.
The newspaper said in a lead- ing article: "Now is the time
for American diplomacy and rronomle polley to work hand in hand respecting Bollyla,"
bnek in Bolivia and nation- alisation there for good or cell was an accomplished, fact, the Washington Post sald.
On
THE CHINA MAIL, TUESDAY, JUNE 23, 1953.
Bank Report
Need For Capital
The latest report of the Bank for International Settlements makes a special study of the methods adopted in various countries for the financing of investment.
Japanese
Approach Rejected
Bombay, June 22.
Japanese circles in India are deeply disappointed by the reported decision of the Govern- mest of India rejecting the ur the Japanese approach Government for a bilateral trade
trenty.
to
the Japanese Government
trado
ögruement.
I was learned here that the Government of India and sent In the years since the war, the report states, some time ago an interim reply The clock could not be turned there has clearly been no lack of investment oppor- through the Japanese Embassy tunities, since it has been necessary to reconstruct in New Delhi that India did and modernise plant and equipment in the de- bilateral wady Deed for vastated areas throughout the world.
It was then stated that the Into Japanese peace treaty, provided for most favoured nation treat- ment for Japan and there was no need for a separate trade treaty, at least for the period that the
pence treaty was valid.
The Puz Estenssoro Govern- despite i totalitarian might, arndents, has turned out tu
Booki deal more moderate than was expected," the news- toazevy* atles,
}
The actual volume of investment has been largo and it is a remarkable fact that it has represented very much the same proportion of the national income in those countries in which the investments have been carried out according to an official prograsime as in sign of moderation in its agree those in which they have been left chiefly to privato ment to compensate stockhold-initiative and enterprise. +1% in the nationalised Patino
Tin
"It has given un encouraging
mine - approximately
hall
of whom are American. Pro- Aumably similar agreements will be worked, out for the Ariunayo and Hochschild pro- perties. If the interest of American investors is fairly profeeted then the United States ought to be reasonable too in resuming tin
tin purchases." The Washington Post, warned that if there
to be economic
Collage in Bolivia thr "be vasy Furry
country
were
for an alliance between Peron and the Communists, f
HONGKONG
SHARE MARKET
(From Our Carrospondent)
Business done on the
Stock But whether the United Exchange this morning amount States was to help stabilise the ed ló $330,824,50. Non quota situation in Bolivia was prettytions and the morning's trans- much up to the Reconstruction netlons:-- Finance Corporation.
"The Journal said that more than "mare economics" was at stake
The Japanese view is that the peace treaty is only for three years and cannot replace a treaty of commerce, trade and naviga Lion,
J
have The countries which been most successful in solving the problems which have arisen bave undoubtedly been those
Japan wants
full-fledged which have sought to achieve trade treaty to ensure the post- both physical reconstruction
tion of Japanese nationals in and monetary reflitation at India, particularly those engaged one and the same time, for the
in trade and other callings and maintenance of monetary con-
because of difficulties erented by fidence has created the condi-
di- the absence of provision for the tiona for il
flow of genuine volance of double taxation. dumestic savings which has
Japanese diplomatie eireles sny place of thus in the absence of such foreign aid. In that way excel-teaty ther connot πίνα the Icnt and often spectacular re-
necessary protection to Japanese suits have been achieved even pationals operating in India and in countries which experienced have to represent to New Delhi almost complete disorganisation Individual cases of unfair treat- while the war was in progressment in various matters. and passed through a period of seriaus nonetary disorder after
gradually
taken the
SIGARES BUYERS SELLERS SALES | it had ended.
The grinding of erosity direct- BANKS
1320 2 1510y by the central bank for the
purpose of covering a govern ment deficit or paying for part
in the need to prevent a collapse |. HK Bank
in Bolivin and to insure o pro- source for tin in time of
tected
war.
"Stubbornness
and blindness
in the RFC in the face of re- peated warnings from the State Department helped prcelpitale the Revolution that brought Paz Estenésoru to power and reculled in the rationalisation.
"Surely this time the sident and Secretary must insist that
PIC of Stote American
serve
our
economie policy diplomatte interests, for If we miss this chance in Bolivin there may not be another."--Reuter.
OVERSEAS
INVESTMENT
BY U.S.
Washington. June 22.
business-
Fifteen prominent man concerned with investments Lbread will report to the United States Government this week on" be how more Americans
nay encouraged to Invest overseas.
They were invited to a private meeting
Government w-th officials, and asked to send individual reports to the Govern- ment.
Most of them agreed that it would be impossible to increase Arterican private investment abroad unless three concessions were granted:
1. Incentives to invest abroad
In the form of favourable in-
come tax treatment at home.
2, A guarantee abroad that their earnings could be -verted to dolines
hame,
соп-
and brought
INSINIANCES
142
Elpe Ath
こっち
$
720
.
Carton
Union
UK Pre SHIPPING
Waterbed.
DOCKS, ETC. K. Whort
JJok
Provident Wheelock
LAND, ETC".
201
1000
of a
n
It is believed here that Japan WIL
not at present renew the request for trade negotiations and will wait for the outcome of the prolonged negotiations between indin and the United Stales for a
trenty of friend-
a country's capital Invest- ship, comaierce and navigation. ments is by now recognised as being an inflationary and, there-infintions have been
Outlook For Japanese Bonds In London
(By, Norman Crump, Sunday Times City Editor)
MESSAGERIES
P.O. Box 63, Queen's Bldg.
Ontwarda
1
M
MARITIMES
Tel: 20651.
M
PASSENGER/FREIGHT SERVICE
Leaves Marsellies
"FELIX ROUSSEL” ...Sailed "LA MARSEILLAISE" ↑ July
···VIETNAM”
Homewards
"FELIX ROUSSEL”
Bongkung
10-11 July 2-4 AUX.
3-10 Aut.
For Yokokanta Nalgon Yokohama
Due Marseller Via
17 July
Leaves Hongkong
25 July
21 Ang
27 Aug.
1 Arpt,
"LA MARSEILLAISE" 4 August
.......12 August
Manila
Salzon
Haigas
vin Marseilles to ni Mediterranean & West Africa poris. via Djibouti to Madagascar,
At the end of 1952, Japanese 5 per cent, 1907, "VIETNAM bonds were quoted in London at 134%, non- assented; and 128, assented. Their respective prices recently were 121 and 108.
Ontwards
"MEHONG"
FREIGHT SERVICE
Leaves
..Eerope -8alled,
lamburg-Halled
Leaves .eplung-lź July
19-20 July Hongkong
Honakong
2-2 July
Far Japan Japan
For
1 August 11 August
14 July
Thus both prices have fallen substantially, and "SILVERSANDAL"
Other Homewards the spread between them has widened. Japanese bonds have followed much the same "MONKAY" course, and naturally holders, who had reasonably "LONG hoped for better things since last year's debt settle- Salgon, Marseilles, Algiers, Oran, Tanglers, Casablunes, ment, are disappointed.
This buying
botwcen
گان
לנו
ΜΟΣ
Tho Increase in the spread much since. Now
iniai between the two prices is sterling and dollar debt obliga- largely due to our high rates tions are of the order of, at the of
Income-tax and sur-tax. most, $40 million a year. Thus, Pension funds and charities for what this argument is worth, enjoy their Income free of tax. she has 25 years debt service in It has therefore paid them to hand. Naturally, she is unwill- huy non-assented bonds. Their Ing to change any of her dollar next move in to assent and then holdings into sterling, but it is draw the gross amount of in-unbelievable that the would terest
10 due
to the date. Finally carry, this reluctance they sell their bonds at the point where she would risk a
price. Hitherto assented
the default on Hier sterling debt loss incurred through the obligations, diferenco
Peace the (wo
Koren may well prices has been more than coure her temporary embar- offbet by the interest received. | rassment, although' there have non-scented been suggestions of an Ameri- boods followed by the selling can temporary foreign of #sented bonds explains the chunge guarantee to her widening of
circumstances. spread between these
Again. the Lwo
peace would have to be follow- What
the private tax- ed by extensive reconstruction. paying holder of non-ascented in Korea, and Japan is the bonds do?
A few months ago,
nearest industrial nation. Japan- he was right to do nothing, but ere Ministers feel that in the now the position has changed, long run they can
this overcome For one thing, apart from con-
embarrassment. tractual sinking fund
Taking the short-term view, tions, there has so far been no it is easy to understand this evidence of
reaction Japanese official year's
in Japanese buying. This may
bonds on the Landon market. be due to the long run, it is possible the current Japanese shortage of sterling, or perhaps because that the New York yield-basis the Japanese authorities
of 8 or 0 per cent may are
to be nearer the mark..
to hold
continuing since Intia gained falling market.
fore. must dangerous mode of independence in 1947.
opera-
olf on
Meanwhile some 64 per cent
1950 500 1610 Bancing--and pubile opinion Alter #21 Indo-American | of the
74
10 180
2000 3
71. 703
Ist
ts
15 30 1400 15.10
.t
Ex-
prove
outstanding sterling WALL ST. may be counted upon to "react
realy has been signed Japan bonds have already been as- most strongly against the use of
will
the sented, and, of the remainder, Approach 11111.70 1500 11.6ouch methods. Bat What is not probably
Hot Government
of Indi for so clearly understood is that the similar agreement.
some are held on the Continent, where there are loent difficulties 7.hu practice
of borrowing from
in the way of enfacement. Commercial tanks
Informed sources believe that such
Efforts are being made to over- the reluctance of India to enter also be fraught purpures may
come these difficulties, and the with
pact with Japan Japanese inflationary considerable
into trade
would like to ix. a was caused by apprehensions of time-lant for assenting. They The provision of funds danger. by the banks for prefinancing Japanese competition with India purposes or in the form of in the markets of South-East are, however, anxious to meet feeling over here, and so I do 'mediuni-ton credits' may Asta and the
Middle East. not expect a time-limit as yet. C. Liga INT 7.16 720 357.10) appear harmless enough, but if United Press.
In How HK Land'..
Snel Kumparey
UTILITIES
Star Ferry
23.10 23.40 500 1 232 C. Light (0) 110 11.30 1500 1120 medi
1,15
Ylectric 25.30 25% 300 25 30 such
Mavelrie.
credits continue to be granted without any subsequent 19.20 | Junibading' through the formз- 18.00tion of real savings, thus leading 15.80 to repeated inflationary issues 13.70
of newly-crcated purchasing 20.30 272 4000 20.40
Teleptione 19.10 19.40 300 INDUSTRIALS
L'ement 14.70 16.50 2000- STORES, ETC.
Dairy
L. Clawford
COTTONS
24
Evo 3.15 5:30 Textile Corp,
1000
Wason 24.10 2450 82221.10 wer, the economic disorgaal- sation and the monetary dis- trust which are bound to ensue wil deprive the economy of much of the beneйt which it have derived 1000 2 17.00 would otherwiso
from the Increase in physical investment so that the final re- sult may even be a nett loss.
MISCELLANEOUS
Entertaiment 17
The Rubber
Markets
Prices
Singapore, June 22.
rubber Futures vf
closed today as follows:-
Number 1 rubber,
per b. July
Augus
September
Number 2 rubber.
$109-09
July
65-60
Number 3 rubber.
July
Number 4 rubber,
July
Spol rubber, unbæled Blanket crepe .............. No, 1 pale trepu
BALANCE NEEDED
0
Rice. Price
Too Low?
Talpel, June 22. Nationalist rice experts sald the fact that the Government had forced the price of rice too low_as_compared with the general cost of living was the cause of the recent food up.
The China Institute of Fori Administration at its annual meeting recommended to the Government against setting the price for the purchase of rice from farmers at too low a level.
The report goes on to say that in the first place, the disorgan:-heaval, sation and distrust that inflation- im- ary methods engender will pode the growth of genuine sav- constitute, after all. ings, which the only reliable basis for the maintenance of satisfactory level of Investment aver a pro- tcted period of tane; and they af that kind encourage wastofulness which
consists in
the undertaking of
and
badly managed vstments
which are so charac-
The price, they said, should teristle of a fight from the cur
be set on a rational and fair beem rency. Secondly, it has demonstrated
any pos- footing with general prices, the beyond
cost sibility of doubt that the in-
of production Dationary
In o Invest- conditions. financing of
the Institute ment leads to the exhaustion of monetary reserves,
6276-93% } the 017-421 47745-60
80.30 73-78 United Press.
un-
3. A guarantee abroad against
LONDON MARKET expropriation, nationalisation or
London, June 22. form of seizure of any other
Prices of rubber futures closed businesses built up overseas. today as follows-
Some of the businessmen salit Number 1 rubber, in pence per
It follows that no real that accompanying grant ais 1b. 20-United Priss
gress can be made on either the NEW YORK MARKET would be required in most cases
national or the Internationa) because many of the businesses
New York, June 23, might not
plane unless internal balance is be successful until Rubber futures closed 10 points
the Individual foreign countries had improvea lover to 10 points higher with established in
eliminating the their transport, communications sales of 22 contrets. The spot countries by and commercial facilities.
and futures markets remained last vestige of Inflation. But it clear that no durable The businessmen included Mir quiet and mixed as traders is also Pul Hoffman, Chairman of the awaited Korean developements or monetary system enn be built Studebaker Corporation;
Spot without a widening incentives. Juan Trippe, President of Pan Number 1 smoked ribbed sheets channels of world frade. Im- there- American Airways; Mr
at 24% cents a port restrictions must John were quoted McCloyn, Chairman of the
pound. Prices closed as follows: fore, be regarded not as a per- manent feature but as intoler- able hindrances to a healthy flow of trade and a high tariff 29.50 nominal) is in itself a permanent import 23.40 nominal restriction. United Press.
kir
Board of the Chase Natlonui Bank; and Mr Eric Johnston.. President of the Motion Picture Association of America. Rev.
ter,
Pepper Market
other
new
"July September December
March May
July
23.99 bid
24.01
03,00
LONDON TIN MARKET
London, June 22,
40
tong,
of the
Statistical Ogures, the food specialists pointed out, showed the offtelui rice.price In 1952 was only 63.2 per cent of the general price index.
who
WHEN TO ASSENT
STILL UNCERTAIN
New York, June 22. Stacies ran up to their
best level in a fortnight today, then cared from the highs when
My feeling is that the holder trading slowed late in the ses
dues not pay
sion. Final prices nevertheless sur-tax | should assent at once and tako averaged $1 or so above Friday's the interest due to him.
close. Raus gave the best per- I am les.certain about the
formunce, sur-tax
followed closely by payer. He night switch from oils.
Bented bonds, non-Esented
weight to predictions that the
The better tone today tent
normal-seasonal-rally is-due-to
Trading increased to 1,030,000 taking the market turn on the
chares way, and face his tax liability
from Friday's in-the- future. If doing so, he should month low volume of 800,000 previously take advice
about shares, the well-known "bond- washing" section in a pre-war Finance Act.
This
year's
fall in the price demanda deeper consideration. It is common
knowledge that Japan's trade with sterling area is new in deleit and that her sterling balances have become depleted. Taking this short term view, it is easy to see the chance that has been given to any London bears of Japanese
14
bends.
was
This may be the wrong First and fore- Perspective. moot, I have always held that Japan would full honourably her contractual obligations un- der last year's debt agreements,
view This by Mr Takashi Financial Counsellor and crop
Japanese Embassy bumper year suggested
don. the
Therefore, the maximum rice quotation should point remaining is cn Japan the general price index-United not be more than 90 per cent of meet her obligations?
Press.
Grain Prices
In Chicago
Chicago, June 22, Prices of grain futures closed today-as-follow-----
Wheat-price per, bushel
Бров The Bank admits, however, July that there is still much to be September
December done in order to establish
Marchi capital markets wide enough to MAY
Corn finance a large volume of in-
Spot vestment. Monetary confidence | July
not everywhere sufficiently September firmly rooted for long-term March contracts drawn up in terms of Ma
Now York, June 22. Spice, dealers today described the pepper market as stagnant and sleady. The chief Interest
The tin market was firm to- was centred on the news of o
day. Turnover was
tons for cash. indeed. U.S. Army award
for 447,000 including 35
Prices closed at the end of the such bales of ground
pepper. Malabar
official morning session as fol- was pepper
tows:-"
spot
quoted today at $1.42. June ship-Spot tin, buyers
ment was quoted at $1.41 and July $1.88 ʼn pound, all on on ex-dock basis. Indian cables ranged from $1.40 to $1.43 a pound, Including cont and freight-United Press.
Peanut Oil Price
New York, Juno 22. Prices in the seeds and oils market closed, unchanged with the following, exception:
Peanut oll, per lb. fo.b. New York, 23 cents-Valted Press.
600
n
December
1.016
1.07-12
1.5339
1.6010
3.0.24% 1.30-19
current values to be accepted Пуе
July at normal interest rates; It is, Septembar
questionable whether блія degree of confidence July will be attained until the September
Soybeans various currencies have been | Spoť doas linked to one another by on in- July
August ternational system with
con- September 0875 vertibility
(18 Its essential November
January 08735 feature-Reuter.
March
2.07 New York Hour-per 100 1b, sack "United Press.
$13.10 pominal--Unsled Prem.
Spot Un, seljom 13usiness done at Three-months in, buyers Three-months in, sellers Business done at Settlement
190
670
400
Exchange Rates
in the Jocel
04
0.000
Dune Wat cong unofficini nashangy market morning at the following antes:- US, dolar (per_51) ma sterling note (per 41) Indonesian quthiers (per 1001 Sam leale (per 100)
Bingapore (Stensta})
FIG Dastres (per 100)
สน
JAPANESE BONDS
Japanese
London, Juno' 22.
bonds "A" (48.
1.78
Conscix
"33" (45. "C" (n.
of 1009) 83%
of 1910). --- of 1007) 132 "D" 58.
of 1024) 301 "E" (55. of 1030) 140
3.813 nominal 2.0232,821, 2.77 nominal 2.6914
Copra Quotation
New York, June 22, Copra was quoted today at $185 per short ton, nominal cd.f. the Pacific coast. Cocoanut oil 00% was quoted at 14 cents a pound, -United Press. asked-United Press,
in
develop before too long. How- ever, in some quarters the con- tinuet! Jack of demand for stocks and the still complicated foreign situation were seen factors which might lead to an- other test of the year's lows,
Rail gains at the close ranged to 2 points in Southern Railway ut 02.
to
Bethlehem improved 1.2 51 and U.S. Stect to 38% in stee's.
Chrysler, gained into 72"; confirmed and General Motors 1 to 5946.
The market was narrow Ibara, the
the 1,024 issues with 557 higher, to
Lon- 227 lower and 240 unchangeti. The New York stock exchange only
bond volume was 2,420,000 and Stock Exchange The American volume was 240,000 shares.— United Press
TWO CAUSES
Liquidation On Cotton
Market
Here it in relevant to record that, while Japanese sterling bands in London are quoted at prices which yield 15 per cent, her dollar bonds are quoted. In New York on an 8 or D per cent
It basis.
may be that the Americans appreciate, better economic than we do, Japan's position and outlook: or it may reflect the fact that today Japan holds more dollars than sterling,
Our own doubts over Japan
New York, June 22. arise from her current sterling rade deflett and loss of sterling.
flurry
of liquidation in We are also wondering how nearby July contracts dominated she will fare in the event of a an otherwise slow and feature-
less Korean truce.
trade In colion today. Now her recent sterling trade Anticipation of the first notice Wednesday, with the deficit springs largely from two duy on couses. The first is last year's uncertainty of how many tendera restrictions on Japanese imports would be made -- initially and imposed by many sterling area how they would be received. countries. The second was her caused some timid longs to get decision to buy raw materials out of the spot month. from the sterling area rather
At the close, July was off 20 than the dollar arco,
points while other positions were down 1 to 10 points. The
POUNDS AND DOLLARS
The sterling area restritions opening prices were up 2 to off 4 from the spot are now being relaxed, but there points. Apart
month alluation, traders clung has not yet boon time for these to the sidelines while they wall relaxations to be reflected in for some new Incentive to get Japan's trade balance of sterling the market out of the trading,
She can, of course, AL
reserved.
a short-
33.00
222.74
any moment decide to switch tut in which it has moved for
some time. baric from sterling to dollar raw sterling material imports. Her
NEW ORLEANS MARKET trade deficit is, thus,
Spot term factor.
July Japan's sterling balances have october admittedly been depleted, but December
March her combined sterling and dollar May, March Sur balances equalled last over $1,000 millen, and it is October
December not certain that she has lost)
33.70 l
33.02 bld
United Press.
“SILVERBANDAL”
..KEESHE 10 Luy
Keelung 9. August
Le Havre, Antwerp, Rotterdam & Dunkirk. Subject to change without notice.
MAERSK LINE
FAST FORTNIGHTLY SERVICE TO:
NEW YORK, BOSTON, BALTIMORE & PHILADELFILA via SAN FRANCISCO, LOS ANGELES AND PANAMA,
NEXT SAILINGS
m.v. "UDA MAERSK” m.v, "CHASTINE MAENSK” m.v. TREIN MAERAK"
July
▸
July
17
ANK
2
ARRIVALS FROM U.S.A.
m.v.
"ELSE MAERSK"
TREIN MAERSK" m.v. "MAREN MARRSK”
July
4
July
July 10
For Freight and Further Particulars please apply to:-
AGENTS:
JEBSEN & CO.
Pedder 'Building.
Tel. Nos, 36060-9
Chinese Freight Booking Office
27. Connaught Rond, C.
Tel. 20461
Dates and rotation subject to change without noties,
At liberty to „proceed via other ports to load/discharge 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 Sails
July 16 from Manila. July 17 for Singapore, Penang, -Rangoon. Calcutta,
"REBEVERETT"
Arrives Sails
&
Yokobana,
July 23 from Singapore,
Kebe July 24 for (Accepling carzo for transhipment Kobe/Pusan and Kobe/Okinawa)
EVERETT STAR LINE
Fast regular freight—refrigerator-passenger service to Korea, Japan, Phißppines, Indo- Chino, Siam, Malaya, Colombo, Bombay, Karachi and Persian Gulf Ports,
"STAR BETELGEUSE”
Arrives Solls
<
June 26 From Takao June 27
"LAQ"
Arrives Sails
July 4
for Singapore, Port Swetten-
- barn; Mudras, Colombo,
Bombay,
ramshah.
Hahrein,
Karachi, Khor-
Busrah
from Singapore.
July 4 for Kobe & Yokohama. (Accepting cargo for transhipment Kobe/Pusan and Kobe/Okinawa)
EVERETT STEAMSHIP CORPORATION S/A,
Queon's Building, Telephono 31206. Chinese Department: Telephono 28293,
BUSINESS REGULATION
ORDINANCE 1952
prescribed Copies of the Forms 1(a) 1(b) and 1 (c)
Now On Sale at S. C. M. Post, Ltd. HONGKONG AND KOWLOON
TEN CENTS EACH