Page
PLANNED
ALASKA
UNDER
CONSTRUCTION
DISTANT EARLY WARNING
CANADA
MID-CANADA LINE
IN OPERATION
PINETREE LINE
U.S.
Sun FrontaCO
Colorado Springs
York
Chicope
Continental Air
Defense Command Headquarters
Jaxon Towers UNDER CONTRACT
AP Newsfeatures
American Air Defence
Plans Changing From
Theory To
Associated
The safety of the United
By BEM PRICE
Fact
Press Newsfeatures
Writer
Bolstering the interceptors are assigninest and has
States from sudden attack ground defences-averal
dependa
THE CHINÁ MAIL, 'MONDAY, FEBRUARY 7, 1955.
hun- Free! radar controlled anti- invisible. ntrcraft
and guns
a growing miles number of
supersonic "Nike" misalle stations which can search
and destroy (1):1
high-fying
Convert Liberty ships
plans to to the
sane purpose.
on A electronic fence 12 high.
on
TRADE and
COMMERCE SECTION
Page
PREMIERS ENCOURAGED
But The Chancellor Warns Of Possible Inflation
From Ronald Boxall
London, Feb. 6.
Mr R. A. Butler, Chancellor of the Exchequer gave the Common- wealth Prime Ministers in London last week a most encouraging report But the point has now been on the sterling area's economic progress. reached, he warned, where healthy expansion can easily be turned into
inflation.
The chief danger in the present situation is that sterling countries might be tempted to spend beyond their means. The expansion of economic activity in the area generally has created demand for more raw materials, ut also for bettering the workers' lot and for more consumer goods. To some extent this is, of course, inevitable and even desirable; but if imports are allowed to expand unchecked consequent inflation might set our recovery back several years,
N.Y. COTTON
MARKET
WEEKLY
REVIEW
countries
If there are any doubts left le present wide discount on the offcial rate is the loss of dollar atrout where the dunger Hes two
to sterling should business developments Ferent
The first is the dispel them. absence of any measurable im- provement in sterling despite the higher bank rate in Britain. The
By William Plunkett it was by no means reassuring.
INITIAL CAUSE
Persian Exchange HONGKONG
Rates
Teheran, Feb. 6. Bank officials here to- day announced that the
for
the
rates of exchange sierling, following Persian Government's do- cision to revalue the cur- rency would be;
Bank buying
rato 210 rials: bank wolling rate (commercial rate) 222.6 rials; oMelai rata- 80.4 rials (unchanged).— Reuter.
Greater Egg
Output
In China
Landon, Feb. 6. Communist China claling she has Increased her egg produc-
and tion for foreign
domestic murkets despite her disastrous nummer floods.
STOCK EXCHANGE
(From Our Correspondent)
Business done on the Hopg~ kong Stock Exchange this mora- ing Ammounted to $1,175,930. Noon quotations and the mura- ing's transactions:
BHARES BUYBAS SELLERS SALES
DANKS
HK Dank
INSURANCES
Union Lombard Underwriters
DOCKS, ETC.
Dock Puuvilent (O
Wheslock
LAND, ETC.
HX otel
H
Roalty
This Wis reported by the Tientsin Ta Kung Pau, one of UTILITIES the country's official Communist newspapers.
Total daily
egg purchase in the three provinces of Kiangsu, Auhwei and Chektang. China's chief egg producing centres, had boon increasing stendily ns ( result of measures taken to in- crease productivity, the paper stated.
JJCW9+
British businessmen who re
were re- cently visited Peking ported here to have negotiated egy purchases from China for the United Kingdum marke!.—- China Mail Special.
caused by "shunting" operations. In these conditions it is profitable for a Continental firm to use is for a
tin "cheap" pounds to buy
(or in fact anything second is the
Guamonds comparatively par
that is expensive in relation to outcome of January's gold and
bulk) in the dollar bransactions. An exact
sterling area and sell
Bri Ly United States. dance with the world cuiside
Dollars thus earned are then sold Western Europe was a bretter result than had been expected, for transferable sterling at a
substantiuj discount T the but as January is normally one
tu start crera- of the best months of the year dealer is ready
tions all over again. for doller carnings of sterling,
OUTBID STERLING AREA
These deals have been having a serious effect on the sterling arca.
entirental dealera are able to By using "cheap" pounds
area suppliers outbid sterling and acquire dollars that right- fully belong in the area's central resuarve. At
Paris, Feb. 6. this
-point, the vicious circle begins, For the The Bank of Franco stato- ended meni
the week for loss of dollars is refocted in the monthly gold figures and if these Jan 27, reads as follows: are lower than the holders of sterling consider they should be
Total gold holding 201,281,591,420 confidence in the pound begins Total
11,020,468,393. rencies so wune and its value
Advance
183,300,000,000
New York, Feb. 6. Cotton
trading futures
last week became more of a
The initial cause of the fall in the value of tire pound was
BuL
what
the disappointment at the delay
'convertibility Nearby of two-sided affair. deliveries settled back under appears to be keeping the oficina
rate at its present low level liquidation, the now crop the marked weakness of trans- months stood
firmer ferable sterling which has fallen ground prospects fum $2.70 six months ago to brightened for higher around $2.72.
The greatest source of danger Government loan rate this
when transferable sterling is
(N
on
#
year.
list AL
clos Friday'n ruled off 13 to up 8 points, or 65 cents a balo lawer to 40
Exact Agures
baie higher than the cents what the
La United States is spending on air
preceding week. but defence are not available.
Foars of a serious flare-up in the Far East over the Formosa there is no question the trend Upon the alertness of enemy bombers.
belief is
The country's situation, ani traders' upward. men in over 100 radar
capital investment In that chances are lessening for stations from Greenland to has at least the bare essentia's Present
any material Increase in the nir defence...21 protectiva air defence has been estimated
allotments thin year. were additional background factors in the new crop months.
lions of Americans.
of
now The United States thus
its
at 3 3 billion dollars.
armed
ΠΟΥ DIC
1
sure
San Diego and Alaska to ring of radur eyes around Florida rest the lives of mil- ‡ borders and a command struc- According to some reports.
ture with the tools of protection the
forces at its disposal. As yet the fence has many
spending more than that in But the maximum range of single year to make
this holes, but slowly tou slowly,
radar station is about enuntry has as much protection say some the gaps are being ground mended. It will never be whole. 200 miles. Therefore the heavy as modern science can provide.
will
regions
the Arm industrial
along
expect n will Great Lakes could guarantee that no enemy.
15 maximum warning time of will
minutes
from the "Pinetree"
bombers this day of supersonic speeds. radar chain it Soviet
the come streaking down from polar wastes.
bever
offer
sneak by undetected, but
It
be the best scientists can devise
In
It has been more than years since Congress first ap-
proved the plan to stretch
Obviously this is not enough radar screen neross the northern
lime to properly deploy Inter- border of the United States to
To remedy this, protect this country's Industrial ceptors. centres from possible bombing second radar fence the "mid- Canada" linc-is now rising some 600 miles north of Chicago. When completed
"mid- the Carında" line wili give Gen. Arst approval didn't
Chidlow an hour and a half to mean much, for while Congress voted in favour of the project prepare his defence strategy.
attack by planca across the polar
Russia.
That
sweeping wastes from
it did not set aside any monoy
for construction.
The
first Russian atomic
bomb explosion in 1949 altered
oversight,
Third Line
that
of
The
months.
As the shows,
coast.
line
W.GERMANY
PREFERS
NATURAL RUBBER
Continental
For Dogt
MARCH LIQUIDATION
March liquidation proceeded at an orderly pace, coincident with a steady rise in the certi fleated stock. First notice day for March will be Feb, 21. As the week ended the open post- tion in March was estimated around 570,000 bales,
N.Y. STOCK
MARKET
WEEKLY
REVIEW
By Elmer Walzer
at
dollar is further weakest the
The Bank Of France Statement
other
Stabla Fund Bank note culation
Tram
Star Ferry Yu Periy
2120
20 G 2:20
10 2120
33 34 325
045
10
10.34 1000 vs 10.30
243
10.40 1700 or 16.10
7.10 1500 1.4 2.033
18 500 g 24.00
.2000 se 15.70
1000 15
600 14.80
03 100 67
100 or 021
1007
2.021 8006 020214
5000 4 3
20.00 200
1700
200
500
200 *
130
400
C. Light (D) 10.70 17.30 1000 or
C. Lint INI (3,80 Electric
Macro Elec
1000 *
1000 40
18:33
34% 2000
400
2332
12.00
Telephone .30% 194
STORES, ETC.
Dairy
...... 2!!
1 Crawford COTTONS
Tenille Corp. MISCELLANEDUS
Yangisze
Allied
2000
2012
0.00
5.30
4271 435 4000 @ 41%
500 $4.2135
Exchange Rates
Business was dano in the local unofficial
Franca
cur.
Curr.
cir.
market exchango 2,472,040,259,333 morning at the following rates:--
U.S. dollar (per 1) 120,791,250,478 Blerking notes (per 1)
Indonesian rupish (per 100) Slom ticals per 100) 60,312.100,404 Singapore (Siraits) -United Press.
this
13.07
17.00
27.70
1.80
Indo-China plastres (per 100):
current accounts and
pils discounted 1,110,180,002,001 Sight balance brood
This sort of thing would be impossible, of course, if sterling were convertible. For then there would be only one rate
no longer be able to would undercut sterling countries in the dollar market with their own commodities.
exchange Topontis and Continental dealers in EPU
the
But if sterling wore declared
1. officially convertiblé present circumstances, we would simply be closing one leak in the reserves at the risk of opening another and much larger onu.
To a certain extent, of course, New York, Feb. 7. sterling s already convertible Industrial shares on the over a wide area of the world.
Holders of pounds
ids anywhere out- the sterling arta may stock exchange finished the Hold
exchange them into dollars, the week at a new all-time high. exch
Gains on the week in the in- only difference between this and emvertibility being baics dustriais ranges to more than 2 the official since the New Year. Spot in-points with some issues showing that non-American hollers must sell them at the transferable rate believed to be much wider rises. were transferring hedge
instead of the official rate
Cotton available for contract delivery rose lo 05,788 balcs, a new high, and an aggregate in-
almost 15,000 crease of
terests
GREATER FREEDOM
LONDON STOCK MARKETS
INDUSTRIAL INDEX
HITS NEW
HIGH THURSDAY
positions
From Our Own Correspondent The against sales of the new crop
market mAdc ita best In- showing lato in the week. months
London, Feb, 6. on shares advanced The spot March delivery on dustrial
After a short period of hesitancy early in the Monday sold up to 34.70 cents Monday and Tuesday. However,
pound, its highest level since after 11 days of advance, last Dec, 30, whereupon hedge industrials declined in the next of transferable sterling in inter-week while the market digested the political news and national commerce it has not from the Far East industrial shares in London selling and
in-two persions-Wednesday
provented from falling- in creased.
The net
liquidation
the consequent
Thursday,
But though this greater free- the dom has led to much wider use
Fords
cotton in Government hands at The rise in the industrial yot right for convertiblity. The United Nations Invitation to dis-rose is 9d to 89s 9d on a 100
18
the
:,!
Indian Railwell They were downs 83 conts policies in sterling countries has
moved Traffic Increasing
Singapore, Feb. 6. West Germany will buy
Lagging tendency of the near- On Friday, a buying spurt value over the past few months. forged vigorously ahead. By Thursday's close
in Thought to bc
new all time. more Malayan rubber be-
than This which moro by months was coupled with the developed cause manufacturers there slow rate of producer impound-wiped
out the carlier losses, because market needs are being the Financial Times index was at a
supplied by sterling high of 197.5, having risen from 193 at the begin- end the Air To boost the crucial time
it to the synthetic | Ing under the Government foon The large mumber of favourable full. prefer
countries - spending more than
ning of the week. Force received hasty authorisa-preparation still further, a go product, said Herr H. T. programme and
corporate developments helped
they should on imperts. tion to divert 56 million dollars ahead was given last year to a
Mr Butler had other things in On Friday, however, news sharos affected by special situa- dividend "free" supply situation before get third line which will run along itscher, a representative of teening of prospects for a tight to map the market out of its from other progammen to
lethargy. Stock splits, storted on a warning system. the edge of the Arctic Circle. the largest German rubber the next harvest is available,
boosts and higher earnings help-mind as well, of course, when that China had turned down the tions. In this category air defence picture has been Called the
he said that conditions were not (for) manufacturers,
stock of 1984 croped the market considerably.
and, Im- "Durning). these Gummi-Werks A.G.
off the main-per cent scrip issue cuss a crasefre carly getting brighter ever since, and distant
19 still en the last reports was 108-054 bales,
land coast coincided with a now perial Tobacco put on 3g to 01s shures, stations-soma of them
measured by
main
Überal trade has taken some giant strides inmate and unmanned-will
fo in sterling and both indus-9d on dividend hopes before plus 4,099.020 boles from 1953.
amounted averages,
to $5.09, adoption of a more recent mon
and the moving
to policy by America that United Press.
component
took a sharp tumble.
drag back a few pennies. $409.76. 红 new high, Railroad availability of adequate reserves, trials and gilt-edged securities Friday's Town caused them to In the gilt-edged market sort- equities, however, did not show but the need for sound internal
Earlier the Industrial market dated securities continued their low levels up in relative had been sustained by a flow of recovery from the
after on the week to $143.37. Utilities now
privous holpful business news. Follow roached
the
chango and finished a shade under 14-year importance.
It was not surprsing to learn, ing the previous week's an- week's bank rate highs established on Janitory 14.
added therefore, that the Common nouncement of the big railway improvement later spread to long The upswing last week
schemo in Britain and undated stocks. around $1,000,000,000 in valua- wealth Prime Ministers had little expansion
But the market turned dull to say in their communique about the Government has now pub tion to the list..
The so-called "war issues" convertibility beyond the fact shed its plan for modernising on Thursday, when Investment Now Delhi, Feb, 0. were booming. In particular, that it remained the goal of the roads and this brought in buyers support dried up and further.
the were Mustained Passenger traffic on the Indian aircraft stock were strong. Betterling area policy. Unicas Mr for road building shares.
next day on the turn in the For rallways was now showing an Aircraft stole the spotlight, late
warning is heciled and taka firm
Eastern political situation, and upward trend as compared to the in the week when the Company sterling cointeles downward trend since 1951-52, announced that it has developed mousires to prevent an ula-
the sagging pound according to the, Chairman of -. Herr Ritscher said his com-the Indian Rahvay Board, Mra plant in building special types tionary ring, of Imporisit my tries have both ́ announcóð" ra- |
of engines, Boll Aircraft regisbe a long time before it conses For tile reason the United pany Imported natural rubber G. Pandey.
tered a gain of 0% points to 333 to be polky and becomes reality, cord production figures; the
January gold and dollar result The feature of the foreign States la planning to extend is from Malaya, Ceylon and The Indian railways are the and Fairchild, was up 3 points
biggest nationalised undertaking
|to $204, This command post is an all-radar oyes out over the sea Indonesia.
in the country.
returns Standard Oil Company (NJ) The Bank Of England service operation. Its chlot from Newfoundland to Norfolk
Last year, he added, West
Passenger earnings from April directors disappointed Wall Air Forco Gen. Benjamin Chid-with Texas towers," man-made
Statement 1 to November 30, 1954, Street That work when they only to islands which can be anchored Germany Imported 74,750 tons of law-to directly reappnelbin
Was corded on increase of 16 million declared a dlyidend of $1.25 3 to the continental shelf. They're rubber from Malaya and the Joint Chiefs-of-Staff.
country's fourth best
(about 1/ £1,384,000 The centre is manned 24 called "Texas towers" because this hours a day and ceaselessly of their similarity to the ell customer. He said his company sterling) over the corramending share the same as paid in the
had expected a stock split 2719, ment ve the work endect drilling platforme of the Gulf manutuctured 30,000 different period of the previous as previous quarter, Sicet quat The Bank of England satoes are sufficient reasons for copper shores firm despite goes about its task of choice Const. The contracts for these arilcies made of rubber includ-The goods perpine hawed a lock declined on this news, but reps 2, reads de followe the nature of avery
airgratt
of towers already have been let, ing motor car tyros, tubes and increase be 20 million spotrebovered a good part of the
In areasach as those off
Herr Ritscher, as an exten- accompanying map give the United States a three-slye tour of Eastern countries, there now is in opera-hour alert. Soven experimental said the reason German manu- tion a radar fence following the stations on the "DEW" line now facturers preferred natural rub- U.S.-Canadian border from the pre in operation.
ber was because the machinery Atlantic to the Pacific and bolts
Radar, however, is not in-required to turn out products extending southward down each fallible. Low dying acroplanes made from natural rubber was often escape detection and it is considerably cheaper than thore A central Continental Alt not improbable that a bomber required for the manufacture of Defence Command has been set could sneak over the North articles from synthetic rubber. up at Colorado Springs, Colo., Pole, dodging the mountains where information from the
The German Industrial expert ice caps, and como in low
Atlantic. Unless it said however that for such art!- radar outposts arrives by tele- over the type, and is plotted on a huge happened to be spotted by a cles as hoses for use in con
with oil and petrol, plexiglass map of the continent ship, it could be almost on top nection
WBS botter than 22 feet wide and 30 feet long, of a coast city like New York synthetic
before It showed up on radar (natural rubber. - screens.
Command Post
art of
and
We rompuły:-Investigated | the Weet: Coarb-where AG
by si Bahtera,orambil from depur 1 too grost, fox, misport. de Honidos galego
noids sentianed by round like permanent towers, radar picket Hent
ration.
At Chidlaw's commin are/13300 jet interceptont
fahlp", will be usedan EarlyBhit
month the Navy equipped
(£2,000,000 atering) compa
Ro che proviour Darlod": pany. The increased ja arnika
better, traffic position.
Idas on Friday. On the wa
Tewas up any points to $110
London, Feb 6.
BAYON AND PLASTICS
The rayon and plastic Indus
BOND MARKET
was better than most people bond market was the rise in had expectext; and the Ex Rumanian bonds on the news
continuo,to that the dobb talks with that'; choquer encourage hope of tax reduc country are to begin next wook. lons in the next budget. A new record, price, com
hakra manied by the mainly kept market's advance but the labour, troubles, necting Rho sharpness of the week's gains is desland mines), oils/Improv evidence of an acute ahortage atine d'ailystart, tonka of stock,... A quito moderato de entrady, fria and rubberi mand in theeg conditions has a malbeck dreifteady Bouthi somewhat exaggerstone
effect, on
tho
prices.
The induse li market 1 blistal PTICE DOVEIents, have beengi