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DUPLICATÓR

GILMANS

THE WEATHER

Light N'ly winds, froshening from the NW later. Overcast with widespread rain, heavy at times. At 1 pm at the Observatory the temp was 78 degrees F and the relativo humidity 96 per cont.

CHINA

No. 38031

Established 1845 WEDNESDAY, JULY 19, 1961.

1

LATE FINAL

MAIL

Price 20 Cents.

Comment New body to be formed in COTTON BOARD FOR

of the

day

UNFINISHED

BUSINESS

WE Western Powers' reply

Ti Soviet statements o

Germany earlier this mouth Was Arm enough. Now they huve delivered i

Notes

reply to

Khrushchev's memorandara making it quite clear that interference with ¡their rights will not be tolerated. This was to be expected;

slightest hint of weakness or of equivocation about vital interests, wald en- courage Me Khrushchov to continue to seek a surrender rather than a settlement in Germany.

In these circumstances the in- creasing harshness of Soviet pronouncements was also to be expected.

:

To advise Govt

on matters of

the industry

The Officer Administering the Government,

Mr C. B. Burgess, has decided, after consultation with Executive Council, that a Cotton Advisory Board should be ostablished to advise Ĝovernment on all matters relating to the cotton industry in Hongkong. ·

The proposed terms of refer- the Board. It has also

been ence for the Board, orising qui explained

offer will that this of the exceptional issues which remain open and that nomina- the cotton industry in Hongkong tions from the Association will faces, are fo advise the Gov be welcomed at any time that Nevertheless neither side crnment on any matter which the Association feels able tu

hug yel frozen fut the directly affects the colton, take this step. rigid defance which could'Industry In Hongkong, make showdown inevit- able. The doors to negotias tion are still open. Mr Khrushchev has been a

puins to indicate that he would not support an East German blockade of West Berlin.

thut

Broad hint

AR Kenedy has admitted

"business" to be settled in Germany a broad hint America does nut necessarily accept that the status quo is unchangeable. What are the prospects for fruitful negotiation? The immediate Western interest

There is much work

! It is emphasised tha! the

Government

to the will look new Board to do, and it is hop-ice on all malters affecting the for the Cotton Advisory Board for ad-

ed to arrange for an inaugurai [cotton industry, und that help meeting on Saturday

morning and

encouragement will bu

when the whole situation us it given to the Board to resolve affects the cotton industry will any problems with which it may be open for discussion, includ-be faced. in the question of the British Government's proposals with regard to the Lancashire cotton industry.

Urgent

This declsion has been taken in view of the fact that the cotton industry of Hongkong Is now facing many urgent prob- lems which are of great im- "portance both in its own well- being and to the Colony as a whole.

is in adeqante guarantees for the freedom of Weat It follows on informal tis- cussion held on June 9, when

Herlin. This need existed

long before Mr Khrushcher the Director of Commerce and

Industry suggested began to threaten to change chairmen the status quo unilaterally. Caston

It began to exist, as noon na | the

the

of the Hongkong Spinners Association, Federation! of Hongkong kong Weaving Mills Association that a Cotton Advisory Board

it became obvious that Cotton Weavers, and the Hong- German reumfication

WOR

unattainable, for the pree set up to advise Government

sent guarantees are derived

{{}

maiters affecting

from agreements based on cotton industry in Hongkong.

the

the presumption that Berlin

would one day again be the

capital of all Germany. Mr

Notified

Khrushchev's ability to The chairmen of the three threaten shows how "inade- quate these guarantees are.

Unacceptable

THAT makes his proposals

W unacceptable is that.

in changing the status que,

Struggle for survival

THE COMMON MARKET:

Macmillan faces barrage

of questions in Commons

London, July 18.

Mr Harold Macmillan, the Prime Minister, today refused to publish a white paper giving an account of private discussions between British and Commonwealth ministers on the possibility of Britain's entering the Common Market.

He told Mr Harold Wilson, the Labour Opposition's econo- mies spokesman, in the House of Commons:

"I still hold perhaps an old- fashioned view that one should out statements of not put private discursions,"

assolutions in a Jetler dated June 20 accepted this sugges tion and agreed to representa- | tion un such a board, but quail- fied their agreement with per- Labour Member who believes (ain reservations,

Sir Lynn Ungoed-Thornes,

Q

Britain should not chler the Common Morkel, asked if the were the Prime These reservations

Minister would ΠΟΥ subject of further correspon- | admit the "obvious" - "that he would provide guarantees dener resulting in the chairman the purpose of these visits to the of the following organisations Conuronwealth wus for selling being officially noticed of the the Common Market Iden rather proposal on June 22:

than obtaining their views."

Д

which are even more inadequate. Nevertheless, the proposals,

though unacceptable

whole, contain

some vague idens and their vagueness may be inten- tional which would be worth elucidating. One is that the Soviet Union does not now seek to link the Algning of peace treaty with the recognition of East Germany or West- ern Germany by all the parties to the treaty. Might this mean that Russia would ultimately agree to a Berlin settlement

which would

guarantee

2

LLCCCSK without involving any formal recognition" of Enat Germany?

Initiative

TTHAT is certain is that

W the West, having ro-

jected Mr Khrushchev's threats, cannot afford to

leave the initiative to him. Firmness against threats in the first necessity, but it does not preclude attempts to neck genuine negotiation. Russia has made cortain de The West should mands.

Meeting urged The Chinese Manufacturers' Association, The Federation of He urged the Prime Minister, negotiations Hongtung Industries, Hongkong before entering General Chamber of Commerce, with the Common Market coun- Hongkong Garments Manuries, to have a meeting of Com- facturers' Union, Hongkong nonwealth Prime Ministers.

Mr Macmillan replied: "The Manufacturers (for

Association, and a object of these visits was to con- of the dyeing sult and explain. I think

Garments the USA) representative and finishing industry.

The proposed composition of

it

would have been a great mis- take not to have had them. They have been very valuable.

that statement the House must

left-

the Board was that the Hong-In the light of them I will nake kong Cotton Spliners Associa tion, the Federation of Hong- statement, and in the light of kong Cotton Weavers, and the Hongkong Weaving Mills decide what it wishes.” Mr William Warbey, Associatiun should nominale

each, and wing Labour Member, asked if two representatives that the other organisations was not already manifest that should nominate one represents the

tive each.

Informed

The Board would also in- clude the Director of Commerce and Industry as chairman, and an Independent vice-chairman to be appointed later.

All the organisations #D-

government's "travelling salesmen" had returned with virtually emply order books.

Mr Macmillan: "You have given quite false account of these very valuable discussions. If your comments came from any other quarter 1 would pay more attention to them."

Mr Hugh Galtskell, leader of the Labour Opposition, urged a debate on the issues before the

replied that

proached havo now accepted summer recess, these proposals and agreed to Mr Macmillan nominate representatives for he would consider It.--Reuter. appointment to the Board.

with the exception of the H Cotton Spinners Association. The declaton to set up a Col-

now name its own demanda tom Advisory Board, consiituted FALSE IMPRESSION

for now and better guaran-on the lines detailed above, has tees which will enable West been taken in spite of the faci Berlin to coexist

confidently that

the

with East Germany until Spinners

Torquay, July 18. Cation A man charged with altempled Hongkong Association has not

murder here yesterday ap. peared to the

court woaring yet replied in writing

Handcuffs, but A polico spokesman and thero WAR "nothing sinister in this."

the day when a Germanormal proposal put to it on

settlement is possible.

It can make these demanda June 23.

the more confidently now

The Hongkong Cotton Spin-

ners Association has been In-

"In fact, the handcuffs are

that there in new evidence formed of this decision, and has jammed and we are unable to of continuing stralus been urged to nominate repre- remove them," he explained.--- between Russia and Chion, sentatives for appointment to China Mail Special

AN ASIAN COMMON

MARKET FORECAST

Brisbane, July 18. Members of a Hongkong trade mission today forecast the formation of an "Asian Common Morket" if Britain enters the European Common Market.

The mission's leador, Mr J. D. Clague, said Asian countries would probably look more to Australia for goods. But he warned that Australia must cut prices to increase Asian trade.

The mission which is in Brisbane on a four-day visit to explore trodo possibilities, told interviewers prices of some Australion equipment in Hongkong wore 25 to 30 per cont higher than those of American and European competitors---AP.

Clinging to a wrought iron gate. an Indian tries desperately to keep a rope, stretched scross a street, above the swirling flood water as two other men help a woman to safety la Poona on July 12. Over 100,000 people wers

homeless in amalier

left of

minutes when the rampaging Mutha River swept away the stili incomplete Fanshet Dam and foundated the City of

13 JETS WEEKLY TO THE

USA

PHONE 97031

AM RICAN

near future COLONY

TROPICAL STORM NEARS COLONY

Tropical Storm Flossie, after lying almost stationary about 280 miles south-east off Hongkong at 6 o'clock this morning, suddenly picked up speed and moved off in a north-westerly direction at ton knots,

At 12.15 pm the storm was located about 140 mitos cast south-cast of the Colony (21.5N, 116.5E), Local Storm Signal No. 1, which means that a storm is within 400 miles and may affect Hongkong, was hoisted of 6.40 am,

If it continues on its prosent track the storm will cross the China coast about 60 miles east north- cast of Hongkong this evening.

Winds of 45 knots were reported near the contro,

BOAC STRIKE: MORE

TALKS TODAY

A BOAC spokesman in Hongkong said this morning that another meating of the National Joint Council for Civil Air Transport will be held again today (Wednesday) in London in a further attempt to rosolve the unofficial strike of BOAC maintenance workers at London Airport.

At

12-hour all-night meeting of the Council yester-

day, a basis of settlement for the dispute was reached, but a meeting of the workers inter yesterday morning rejected the Council's recommendation.

Sir Matthew Slattery, Chair- man of BOAC suid in London last night, "I am very disap- pointed, but at the meeting th morning (10 am Tuesday, Lon- con

Time) attended by some 400 men on strike, it, was de- clded by those present to throw

I'm ready,

says U.S.

spaceman

Cape Canaverat, July 18. America's second manned space flight, postponed earlier today. has been fixed for 1300 GMT tomorrow.

way the opportunity for re- suming work and enabling the Omelals of the National Aero- Corporation to continue Its ser- nautics and Space Administra- to the public partition decided this as the bad cularly after agreement had weather, which caused the At least 50 people were drown-been reached by the National postponement, continued to

three quarters of a million! vices

people.

ed.

Joint Council for Civil Air improve and forecasters warld Poona is the scal of the former Transport on the basis of settle.clouds were expected to dissi

Maratha Empire Isa India- ment which would have per- pate by tomorrow. AP Photo.

milled an Immediate return to work.

DEADLOCK BROKEN

SATISFIED

who Caploin Virgil Grissom, has been ricked for the night. said: "I'm ready whenever you

1.26 INCHES. IN

"The National Joint Counch-nre."-Reuter. which includes the national of- ncials of the trade unions con- cerned-expressed itself satisfied that agreement for the introduc- tion of the new supervisory system (the cause of the present stoppage) is proper and con- Britain and Russia broke a prostitutional, and also agreed on A

Geneva, July 18.

cedural deadlock tonight, and

an effective plan for resolving the 19-ration Laos conference any fears and dimculties that may still exist in the minds of

will begin point by point

negotiations this week on a hourly-paid workers," he said.

settlement for the South-east

Asian kingdom.

Spokesmen for the British ame Soviet conference Co- chalmen said agreement

Washington July 18. Official sources here said to- had day that the meeting of British, been reached to start conerete French and American Foreign bargaining on a neutrality | Ministers is expected to be held statute and long-range Interad in Parls on August 4-8-UPI, tional controls for the kingdom.

In

Vientiane, the Laotian

Prime Minister Prince Boun Oum today accepted a proposal by the neutralist former Prime Minister Prince' Souvanna Phours for a new "sumuri!" of Laotian lenders to meet in Phnom Penh, Cambodia.-UPI and Reuter.

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10 MINUTES total

1.26 Inchos of rain foll in the heavy 10- minute downpour between 4.50 am and 5 am today, a Royal Obsorvatory spokesman said this morn- ing,

From 4.50 am to noon to- day 1.58 inches were re- corded, he added.

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