CIVIL WAR IN YEMEN

Cairo, Feb. 22.-Abdel Rahman Azzam Pasho, Secretary-General of the Arab League, said tonight that a state of civil war exists, in Yemen following the death of the kingdom's 82-year-old monarch.

The League, an organisa. tion of Middle East countries, is taking precau-. tions to prevent any possible foreign intervention, he said. A

two-man delegation left for Yemen this morning to investigate the situation.

The League will send a second delegation soon to the Arabian desert kingdom to advise the new government. -Associated Press,

BRITANNICATIONANT REFINANCE RIUMFATIMBALUTANDBUNCITIMESTONE

WALLACE OBJECTS TO CHINA AID

War

THE HONGKONG TELEGRAPH, MONDAY, FEBRUARY 23, 1948.

Palestine No Longer

In Sterling Area

ta

London, Feb. 22.-Palestine ceases to be a part of the sterling area at midnight because of the approach- ing end of the Palestine mandate, which Britain is relinquish on May 15, it was officially announced here today.

decision should not give rise to any male in Palestine.

The sterling balances of Palestine have been blocked, but the British Government will make available, during the re- maining period of the mandate and subsequently, the resource which it is satisfied are neces-obtaining the

Hary

in

A Treasury, announcement said to- day: "For immediate requirements,

being released £7,000,000 are order to provide £4,000,000 ns working balances for the banks in Palestine and £3,000,000 to be used, of together with sterling which will be at Palestine's

lisposal, for current expenditure; until the mir'dle of May."

the

current accrunis

He declared that it was difeult to gevertinent balleve the mandatory would do such a thing without con- ulting representatives of the in- haufiants of the country and without agreement of the Balted Nations Palestine Commis- alon.

Describing the decision is a one- sided action, Mr Kaplan sall Palestine's sterling balances, which were now blocked, hnd resulted in an influx of Jewish enpital into the country from abroad totalling over

£70,000,000 since the war,

The aim of the British Govern- ment, he added, was to get millions Giving reasons for these move of pounds out of the country and to Treasury statement, which make Palestine poorer instead of eningded with a similar announce~ | safeguarding her econemle And meat from the Palestine

Govern financial power, as the Government- ment In Jerusalem, sald Palestine had stated-Reuter.

was the holler of sterling balances totalling 100,000,000.

These balancen had been drawn

on rapidly in Freest months so that THREE - POWER

the entrees

To Stop The Drain

of Palestine, which Washington. Feb. 22. The would be needed for the development Presidential aspirant, Henry A. of the country, were in danger nat Wallace, asserting that the being unduly depleted and the balance of payments problem of the sterling] United States is now so deeply

gren was aggravated. engaged in direct military inter- vention in China's rivil that. American bases were i

"As in the ente of other countries. in Tsingtao and here balarices, for example) established Formosn, blasted at the Ad- India, typt th Trag," the HI- ministration's $570,000,000 nouement said, "the only way in- shleh the drain can be stopped in * by blocking the greater part of the of balancer".

China aid programine 45 "war-provoking extension the Marshall plan to Asin."

inore

The announcement declared the Labeling the afd plan as "one British Government was resolved to

Anonetal work in all phase in our

in im power to pravent military intervention there." Wallace damage to the financial and econo- nate: The situation

during its Chinn lamic structure of Palestine tragie proof of the inevitable failure the period of its withdrawal.

The Trensary also stated that of our foreign policy. The sending

Palestine of money and suppiles to bolster "owing to the fact that reactionary government against the currency is also the will of the people serves the cause of renction and war but not denso- cracy aml peace."

are

47.

CONFERENCE :

Sa

A STAVKATURDAY KYRNINA POST

EDITORS PRESi strate, INC.—

MERGER OF FRENCH ZONE MOST IMPORTANT

COMMUNIST

CONGRESS

IN BRITAIN

Save

Britain

ISSUE

Insulting Words From GenKurasov

Vienum, Feb. 22.-British and American diplomatic represen- tatives walked out of the Hall of Vienna's Music Union this afternoon in protest against the insulting remarks by the Soviet Commander-in-Chief, Colonel- General Vladimir Kurasov.

General Kurasay

WB5 speaking

in the presence of the Austrian Chancellor, Dr. Leopold Figl, and reprezentatives

ves of most of the Le- Entions in the city.

Without

mentioning Britain Ur the United States, by name, he de- |

powers" clared that "imperialist had subsidized filler and were

Tow spending millions of dollars to foster another war.

The British N. J.

Charge D'Affaires, Mr Cheethar, said afterwards: "General Kurasov's remarks seemed to me sa insulling to my country that 1 Kot up and walked out of the room. Mr A. Mellin, representing the United States Legation, followed ["

A meeting of the Austro-Soviet Cultural and Economic Society was being held to celebrate "Red Army Day."-Reuter.

Ready For Battle

Berlin. Feb. 22.--The Soviet Army, equipped

class with "drat arms." now is in constant readiness for battle"

de- to preserve the mocratic principles of Communism,

SUBIRIBURONIDANTONÍ

DENIAL BY NANKING

Shanghal, Feb. 22- American press reports cir- culated in Shanghai yester- day alleging that a Soviet official stationed in Shang- hai has offered himself as intermediary to mediate in the Chinese civil war, and that Generalissimo Chiang Kai-shek has given consent to reopen peace negotiations between the Government and the Communists, were categorically denied by a spokesman of the Chinese Government late last night.

"The rumour is absolutely unfounded, apparently de-. signed to disturb public mind in the midst of the bandit

suppression paign," the spokesman said,

Reuter.

cam-

FOOD FROM

DENMARK TO

COST MORE

Copenhagen, Feb. 22.-Den- mark is to send Britain butter, bacon and eggs, but at consi- Tegliche Rundschau, sald today. derably higher prices, under a

the

emeind Russian newspaper,

a page one editorial, the paper | new trade agreement announced said: "The victorious Soviet

army

Office.

is the loyal guardian of the Soviet today by the Danish Foreign Vulon and of durable peace, and is always in constant readiness

for battle.

In exchange Britain will deliver "Between a wish of imperialists to Denmark minimum quantities of to start a new year and their ability British exports, including coal, Iron

and steel. to carry such a war through is a large gap of forces for peace so | Under the agreement. Denmark

strong that new aggressors will face, will be able to use sterling for cer- a pitiful debacle."

tain payments outside the sterling praised the Russian Army's bloc for example, to buy nitrogen first class arms and its progressive fertilisers from Chile. military and selentifle development.

Warmongers Warned

London, Feb. 22.-An air of uncertainty about purpose and scope hangs over the three-power conference on the future of Germany, which opens in. London tomorrow. Official pronouncements from London and Washington made it plain that this conference, which is being held in secret, will not take final decisions. Its conclusions will be referred back to the governments concerned.

There is good reason to sup-ļa breach of the Potsdamn and Yalta Pse that the French Govern-greements,--Reuter.

Security Demand inent concurs in regarding the London, Feb... 22 The United discussions as exploratory but States will insist on a major role for at the same time wishes to see Western Germany under the Mar- their scope widened to include shall plan, in three-power talks on The editorial appeared in an eight- Citrency of

page edition devoted to the Red Translordan, it is technically 1m-

an examination of Allied policy Germany opening on Monday.

diplomalle

officials. Army and its fight Responsible

for liberation ponsible for Transjording to remain

in Germany in general and not

tonight.

Said

France from the imperiallatie yoke." In the sterling area when Palestine

confined to the details of zonal reporting this

and Britain have professed a will- The newspaper featured pictures the people and leaves It. and arrangements Wallace urged

London, Feb. 22,--Only

administration in the west.

ingness to go along na one condition showing large Russian "kajuscha" Congress to "reject this war-provok-being made accordingly,

in agree "change in policy and a new

that there be stringent guarantees guns firing and armament works in two governments. ing China programme presented by men between the tw

As the opening date of the con- against any resurgence of German the Urals. Government government can Transjordan

Western military might President Truman," and called instead)

found for all possible aid to the "Chineses, however, informed the British from economic collapse." Barryference approached, the

occupation

security demands will take The people through the United Nations, Government that it intends to make | Pollitt, General Secretary of the themselves inhibited by lack of de-

top priority. such aid to be given once peace is such currency and exchange contr British Communist Party, told cision on the basic question whether Britain, anxious for a good neigh- established so that reconstruction is arrangements as will enable Trans

jordan to return to the sterling arena delegates at the second session to go ahead and reorganise Western bour alliance of its own, has au- possible."

vanced a proposal for a political and He said the first step towards!

of the party's annual congress Germany without Soviet

military phet with France and the pence "must be the withdrawal of

The evidence einerging from pre- Benelux customs union countries- The Government's economic policy liminary contacts between the three Bellum. the Netherlands and ald that the principal sterling area means that she will becauld not solve the present problems, delegations which have been taking Luxembourg. While applauding in

he said. They put increased pro- group which stood to benefit from In the same position as duction as the principal remedy se place in the past few days in Lonprinciple, the Benelux nations and on strongly suggest that caution 1 France have declared this move is the "Wallestutry whose currency is backed by ducilor the ad programme

lo be maintained through a decision must rest upon firm guarantees that Street

group which

controls large sterling and does most of its trade order to cover up their anti-working

clas in sterling but is not a member of

Ins policy as a whide,"

work together Breas

of Chinese economy

weltes Sydney

Arthur Horner, Secretary of the that findings on the conference are the countries will

to be provisional only.

jagalust any aggression from any de- Walker claimed: "The President's the sterling area,

Even without a decision on polley quarter. In order to meet this con- contention that the new $570,000.que Cininpell. Reuter's Financial Editor National Mineworkers Union.

obviously

scribed as a "foul life" the allegation This step has

become

towards the Soviet Union, the p-dition, Britain has taken the lead purely

to in- perstraine represents

at the present phase of that the party was opposed

sibility of an renomic merger of the in assuring the Benelux countries a civilian economic oil is exploded befo

with the voice withriawal from Palestine. creased production.

French derogation zone

the talks on decisions that will permit

"We shall not sabotage produc- his wn words

Anglo-American are remains 'essence of membership of the the Chinese Government to devote Tue esser

tion," he said. to other sterling area in exchange control on

most important say-and

discussed at all transfers to countries outside the

weak.

all financial and milltary interven- tion China's Intern! fights."

Wallace

Jollar

resources

Same Position As Egypt

Palentine's departure

from

thum

{ area.

Jewish Agency Opinion

the

here today.

I

the

the Com-

of

the of

!fion.

powers

the

again

co-opera-

at

It warned warmongers they must realise their "criminal intentions" will result in their sharing the fate of Hitler and his collaborators.

The

Russian-licensed Perliner Zeitung commented that the Soviet Army was the "most decisive factor for insuring peace."

ace," I added that there

was 110 power which match the Soviet Army and said it was a mistake to underestimate its strength.-United Press.

PROBE INTO

theswhich will change Germany's future FATAL

tovic likely to be conference this

Conflicting Claims

Benelux influence will be limited

The question of the future inter- to broad overall questions of policy PRIZE FIGHT

national control of the Ruhr, which is also on the intenda, runs it a close

second.

Bizonal Charter

limite

challenge ents.'

Labour Party to deny it-that the He continued: "I do not believe! serting aren.

The stare has obviously nae been force most responsible for the pro- that the American people want any i part of this scheme 1-do-leached ware Briain cinnol_opente duction drive has been

exchange contra inmunist Party" efficient have approved an

Rust, Reve they would

mernber l as vet no! and there in Palestine. intervention military direct

authority which could. National Executive and editor China's civil war in which we have successor

The Communist daily paper. the least, at Interregnum,' In the already engaged."—United Press.

teaves the stering Daily Worker, told the congress that Palestine

when he gave evidence to the Royal The French Government will also Coinmission on the press, he wish to discuss fully to new bizonal formed them that "in the opinion charter giving of the Communist Party, Mr Chur-American occupation zones a consti-Ruhr, whose coal and iron have fed Mr A. Kaplan, Trensurer of the hill was nothing but a blood thirstytutional form which could serve as

tole! Agency.

Reuter Jewish

a blueprint for a future independent creature and warmonger No. 1." Agency

The Communists stood for the co-overnment, Jerusalem today that the

discussion of this charter was at the Palestine existence of capitalism and social- was not surprised

retreat before the original purpose Government's decision to place theism, but could not

threat of imperialism. That was ference, and only the restraint of country outside the sterling area.

Government has pre- The Arney was considering what why M. Malatay so often said "No the French Mr Kaplan sald the UNO" at international conferences The congress concludes tomorrow. ~Reuter.

Truman In Virgin Islands

St Thomas Island, Virgin Islands. Feb. 22.-President Truman arrived here today for his Caribbean holi- lay. He was acchumpanied by Me Julius Krust. the Secretary Interior-Reuter.

in

of the

steps to take.

Globe-Circling Businessmen Expected Here Wednesday

Ten American businessmen are due to land a Kai Tak on Wednesday on a globe-circling flight which will include nearly thirty countries and scores of cities. The group expects to be in Hongkong until Friday, when they will leave for Shanghai. During their stay the visitors will meet government officials and leading businessmen,

Vacuum Oil Company, several whose representatives are -pinying the Atlas party,

necom-

To date, the Sky Merchant

#mbate

of

of Public Relations, and E. Burnbay.

G.

the

Shanghai Food Rationing

hut

serious

the

British and

of

the

and not to the question of adminis- tering the Western German zanes of occupation. But it may prove the 171217) factor In such conflicting claims ast

Rebuilding of German industry. easily shifted from peacetime to war production.

2. Internationalisation

Europe's economy for half a century. The French want internationalls tion, the British some form of na- tionalisation, and the U.S. a system of free enterprise.

3. A Germany with its power vested in strong central govern-

of, German

states, such NA of Britain and the United States to France proposes, without a cohesive put it into effect before the con- power for military unity. ference opened.

A

of the con-

trum developing through the deelston n vented a highly awkward situation ment, or one based upon federalisa-

Before the conference can start to discuss any of these questions it has to settle as point one on its agenda the

the Benelux form in which powers can be assocfuted with its work.

The Benelux governments dave

the

ing Germany alone.

of any administrative matter affect-

Benelux Representation

can

"Chicago,TM Feb. 22. Two-in- vestigations into the prize fight in which light-heavyweight Sam Baroudi suffered fatal injuries are under way today and are expected to lead to a complete probe of boxing in Chicago.

A blue ribbort jury was instructed by Coroner A. L. Brodie to make a thorough investigation of Baroudi's death.

Assistant State Attorney Dan lynn announced he would direct a second investigation.

Meanwhile, Edward Charles, the negro who injured Cincinnati Baroudi last week, was released A formal decision on the part the from a technical charge of man- Benelux countries will play in the slaughter on a $5,000 bond.--United

On Western Germany Press. levisions probably will be reached on Monday."

KRAMER BEATS RIGGS

But France obviously shares their view that recurity insurance must

Oakland, California, Feb, 22—Jack come first. Foreign Minister Georges Bidault has said that security nust Kramer defeated Bobby Riggs 6-1, before France will 0-4 to take n 19 to 15 edge in their

TO

Australian Dinny

Pails defeated Chilean Panchu Segura 12-183. --+ United Presa,

Malaya Tour

Shanghai, Feb. 22.-The overall made it mistakably clear in recente guaranteed food rationing plan drafted to com- weeks that they regard an invitation consent to fuse Its German occupa-trans-continental professional tennis

to take a full share in framing the tion zone with those of Britain and tour. the growingly

rice

the U.S.--Associated Press. "rush" will be enforced throughout policy for Western Germany to E

for Laiting 1. the indispensable condition Shanghai, beginning March Commissioner of Social Affairs, Mrpart in any Western Union.

Consequently the decision of the INVITATION Just right

conference on this question will have The American party is travelling simply by telephoning in the con- Wu Kai-hsion, declared

way. Sleeping accom- after his return from Nanking. Merchant, aventional the "Atlas Sky

repercussions far beyond the scope of rice and

Singapore, FIANNA FAIL

Feb. 22-Australian Despite the shortage Douglas DC-4 plane specially fitted modations for part of the crew and

tennis star John Bronwich and for the 100-day trip which began at a cooking galley are also provided. the lack of workable ratlon system

Cork, Eire, Feb. 22.-Fianna Fail, three other Australian players plan Wu In addition to Mr F. H. Bedford, in the elty. Mr

Kave Miami, Florida on January 12. The

that the Government

the party of Mr Eamon de Valera, to tour Malaya after the 1948 Davis plane is scheduled to complete its President of the Atlas Supply Com-assurance

The talks this week between the defeated in the recent Premiership Cup play, a spokesman announced. 45,000-mile journey at New York in pany, other businessmen arriving on i will supply the necessary amount of

order to Foreign Secretary, Mr. Ernest Bevin, election after 10 years of office, was He said two as yet unnamed cereals to the market in the Sky Merchant include: late April.

success and the United States Ambassador today invited to join Eire's new women stars and either Geoffrey

to Bellain, Mr. Lewis Douglas, are Coalition Government by the J. E. Partenhelmer, Vice President carry out the ration plan The visit th Dungkong has been

Brown or Billy Sidwell would make fully.

to have Minister for Defence. Dr E. F. the trip.-Associated Press. arranged with the aid of Standard-and General Manager: R. D. Holgate, Meanwhile, at a meeting yester-authoritatively understood

of Espori Manager; EX E. Aldrin,

INDOOR TRACK MEET The Coalition of the Fine Gael, Aviation Director, and J. J. Hall, day the National Food Dealers: As-reached the provisional conclusion O'ligins.

agreed that that the Belgian, Dulch and Luxein-. Pubile Relations Director, all of the paint of the covernment's measures bourg Governinents be invited to Farmers, New Republicans. National

sociation unanimously

New York, Feb. 22. The Univer- ace quatier-milor, has Atlas Supply Co.

of in connection with the cereal ques-discuss the points on the agenda of Labour and Independents command sity of Colorado D. C. James. Representative

Dall (Parlin- tion must be amended, "or abolished, interest to them, provided that the 75 seats. In the new

Dave Bolen, walked off with top stopped in Recife, Monrovia, Leopold- ville, Johannesburg,

Capetown,

Stemen, Inc., British

Madison ly expected, is in agreement, Nairobi, Khartoum, Cairo, Bahran, Stanco, Inc.. D. F. Davis, Manager before food supply conditions can be French Government, as is confidentment) to the 60 seats held by Flanna honours in the National AAU Indoor

with Fall.

track championships at improved.

three Independent Britain and the

United States'

Square Garden. Karachi, New Dellh

They demanded: Firstly, cercal

Bolen defeated a star-studded field Bangalore, Travencore. Colombo, Heberlein, Marketing Representa taxen be abolished secondly, fece believed to have definitely rejected "What is the good of sulking and Calcutta, Bangkok Saigon tive, both of the Standard-Vacuum transportation of cereals throughout the idea that the Benelux representa- trying to undermine the foundations in the 000-yard race in 1 min, 11.3 After leaving Hongkong it will Oil Company.

the country be guaranteed; thirdly, tives should be invited merely to of the new Ireland?" Dr O'Higgins secs-only 2/10 ths of a second off

record. the meet continue to Shanghai, Nanking, L. E. Brown, Far Eastern Repre- repressive measures on different rice slate their views.

Asked Fianna Fail, "A really No-

of Illinois A..C.. Feiping, Tokyo, Manila, Singapore, sentative of the Standard Oll Com-markets be lifted.---Neuter.

Whether the

Bob Richards, formula

is kely to tional Government has been formed

vale vault, with a Penang, Batavia, Palembang, Darnny of New Jersey, and S. E.

satisfy the governments of the three and its strength does not depend on won the smaller powers is still doubtful. It the number of tied men, marshalled vauli of 14 feet 6 inches. Earle certainly falls short of their plainly and regimented, but on the broad- Meadows, 1930 Olymple champion

wish

was third. attend the conness of its formation, the number of expressed

Wright, Lorenzo

Wayne elements represented, and the whole- ference as full members.

25 feet Its acceptability probably depends hearted desire of all sections in the University, broad-jumped The two students, Pak On-fai (19) on the criterion by which it is de- Government to leave Ireland better 3-4 in.United Press.

Australian Hopos of Interest than they found It."-Reuter. and Kwok Shu-chung (20), who cided what matters are on board product displays covering pot of the world Bight and is wern attacked by robbers on the to the Benelux. If the Benelux

Melbourne, Feb. 22.-Australian the Atlas Company's line of auto-

received face powers

decide themselves

which

the track and field hopes for motive

CHECK YOUR KNOWLEDGE aviation accessories. assisted by E. M. Harvey. F. Fer- Peak on Saturday,

thrown by meeting they feel it useful to attend,

Olympics brightened today with two Answers The plane can be turned into a small raro is Flight Engineer and J. Niel lacerations from stones

outstanding performances in the theaire, complete with 16 mm, sound scn is Engineer and Steward. T. A. the highwaymen. Both were taken the formula nanay satisfy them, but

1. Baz, 2. Kate Smith. An un-New South Wales meet. Alm

the equipment, for on-the-plane Lewis Is

John

national aprint Treloar. were not detained. Radla Operator.

the other powers It is not likely, to chartered peak in southeast Vene- went The Atlon Sky Merchant

The robbers, who were successfully do so.

zucin was named Kate Smith Moun- champion, won the 100-yard dash in areas where Atlas products are now

Into operation In 1940, touring the repelled by the students, escaped Britain, like the United States and tain by Captain Basil L. Rowe. 3. 9.3 secs. available to the public.

Morris Kurlota, 18-year-old school Two-way radio telephone revin-United States and Canada, and in without any frut nd have not et France, is expected to reject the October 28, 1922. 4. Richard Hoo

In 1840. 5. Holt and the Domini- boy, won the 440 yard dash in 47.3 ment permits passengers in the plane 1047 surveyed the South American been arrested, the Peak Police Station Soviot protest against holding the

said this morning.

conference which alleged that it was can Republle. 4. Penguins.

scen-United Press. to talk with people on the ground markets.

nud

-win, Melbourne, Sydney, and Auck- Kamerlek, Far Eastern Representa-

and before returning to the United tive ut Allos.

Slates vin Honolulu and San

The Atlas Sky Merchant'a crew is Held-Up Students

Francisco.

hended by 1. W. Smirnoff, on loan Injured By Stones Equipped to carry 10 passengers and crew of seven on its trip around from the KLM Royal Dutch Air the world, the Atlas plone also has Lines. He is Pilot Adviser.

L. J. Vaamansuri is the No.

and

to

dre

supporters.

training of local representatives in Albright the Navigator and A. W. to Queen Mary to be bandaged but if their attendance is restricted by

of

|

tho

Trade talke between

two countries had been going on tver since last September. They broke down over Danish food prices and then over British deliveries.

Britain Denmark will deliver to 80 percent of her exportable surplus of bacon.-Reuter.

Initialling This Week

London, Feb. 22.-Commenting on today's announcement by the Danish Foreign Ofee that a British-Danish trade agreement had been renched, Treasury official said tonight: "It is expected that the text will be in- talled by the two governments later this week, when full stalements by both governments will be made."-

n

Reuler.

OUTWARD MAILS

at 5

p.m.

Unless otherwise stated, regla... tered articles and parcel posts close 30 minutes earlier than the I mall close ordinary mail. before 10a.m., registered and parcels will close the previous day.

MONDAY, FEBRUARY 23 Closing Times By Air Aoy Shanghai Nanking..

Tringtao and Peiping; Canton, Liuchow & Kunming: Hotnow; Swatow & Yoo- chaw 3.30 pm.

Hankow.

Closing Times By Sea & Train Macao, Tainaban & Shekkl (Sea) 2 p.m. Canton (Train) 2 pm. Sirata (Sea) i p.m.

Manila, Colombo, Bombay and Karachi

(a) p.,

Hehow (Sea) 3 p.m. Macao, Tsinahan & Skekk! (Hea) 4 p.m. Konginoon (Sea) 5 p.m. Canlun (Sea) 3 p.,

TUESDAY, FEBRUARY 21 Closing Times Ely Alr Amoy a.m. (reg.): 9.30 am. (ord.), Shanghata.m. treg.): 0.30 am. (ord.). Bangkok, Ilangoon. Calcutta, Karachi, Balirein, Cairo (Nairobi, Johannesbur & Marseilles via Cairo) Augusta London (Kowloon C.P.0.1 (O.P.Q.) 1.30 p.m.

and

3

Amoy & Foochow Shanghal, Nanking, Bankow, Tsingtao and Pelping; Swatow 3.30 p.m.

Closing Times By Sea & Train

Canton (Train) 7 am!.

Moran, Tsinshah & Shekki (802) 6 a.m.

Zinnia (Sea) 10 n.13.

Saigon (Bea) 10 a.m.

Haiphong & Pakhul (Sea) 10 am.

Canada,

anet Central Shanghai. USA,

South America via San Francisco (No Parcels for Canada) 3 p.m.

ZBW

H.K.T.

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