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VOL. III NO. 238

PALESTINE FIGHTING|

Egyptians

For the Pi prister of

HONGKONG TELEGRAPH.

For and on behalf of

SOUTH CHINA MORNING POST. LTD.

I than

Printer and Pubijaber

The

TODAY'S WEATHER: Moderate Easterly winds; fair,

1 p.m. Observations: Barometrio pressure, 1010,1 mbs., 30.01 In. Temperature, 70.3 deg. F. Dew point, 67 der. F. Relative humidity. 67. Wind direction, East. Wind force, 16 knots.

High water; 4 ft. 8 in. at 3.42 p.m. Low water; 4 ft. 4 in. at 6.31 p.m.

Thongkong Telegraph.

FRIDAY, OCTOBER 8, 1948.

Russia Challenged To Reveal Expenditures On Armaments

Use Tanks New Prime & Bombs

Tel-Aviv, Oct. 7.- The Egyptian forces threw in tanks and bomb carrying. Spitfires today in a renewal of the fight- | ing for the important heights dominating the Israeli Army's only land route to isolated Jewish settlements in the Negev, the desert arca of southern Palestine.

-

An Israeil Army spokesmun 1.ounced that the assault had been repulsed. The Egyptian forves attacked the two Israeli-held heights of Tel Kunelira and Hirbeth Mon- haz, Bouth of Guza.

day.

The spokesmon sal the two heights were first attacked yester-

They were occupied by ti Egyptians who were later driven oit Israeli counter nlincks. The

and 1 heights changed hands twice

دورا

this morning found Israeli forces st holding them when Egypalon aircraft attempted to bomb the poai- tion and dislodge the defenters.

Heavy and light tanks supported the Egyptian advance, he added.

The spokesman stated that United Nations observers were yesterday m Lormed about the "grive breach of the truce" in a note handed to them by the Israeli authorities, but here hus yet been no official Israeli request for observers to be sent to the spot. NEGEV SEALED OFF

The scene of the fighling was be- low the village of Iraq Suweidan, have through which Israeli forces bom pushing armed convoys into the Negev uroa.

The fighting the south took on citri sintticance fmin the fact that the Negev has become the focal Israel! point in the

opposition to Count Bernadotte's repari, де чем before the United Nations.

Minister

Pasha Ahmed Hilmay (above), military governor of Arab-held section of Jerusalem, who has been appointed Prime Minister of the newly-formed Arab government for Palestine. -AP Picture.

MOTORISTS

GIVEN SHOCK

DIRECT QUESTION POSED

TO M. VYSHINSKY

Plain Words

Words In UN Committee

Paris, Oct. 7.-Mr Hector McNeil, Secretary of State and chief British delegate to the United Nations, this evening challenged Mr Andrei Vyshinsky, Soviet Deputy Foreign Minister, to disclose what proportion of Russia's national income was spent on armaments,

The challenge was issued in the United Nations Political Committee, which began discussing Russia's disarmament resolution calling for a reduction of one-third in armaments of the Big Five powers-Russia, Britain, the United States, France and China.

McNeil declared: "In 1947-48 the proportion of the national income of the Soviet Union spent on armaments was what percentage?

"The published figures say 17 per cent-a not inconsiderable figure."

He added that in 1937 the Soviet government spent 17.5 milliard roubles on armaments. "Today, it spends 66.1 miliards,

"My country, undertook a savage)

demobilisation disarmament and

Mr nfter programme

the war," ***This is trad!- McNeil continued. fonnt for my country, and is tradi

Western European

countries.

"We are at the bottom of the scale.

to the

irreducible is 1s reduced nimum-but facing figure of 66.1 milliards.

I should ant be a representati

if cantilence worthy of any exposed

I the people

represent before I had assured myself that I was not exposing them risks.

us

10

grave

London, Oct. 7.--Britain's 2,009,000 motorists got a shock The Egyptius have raked off the Loday when they learned that all Negey except for a secondary road the Government was considering running through Iraq Suweldon.

utmost in suspending the petrol ration for Thus it was of the

to the winter months. portance for the Israel Army

introduced in It had only been hold their positions in this sector to

in the allow of the passage of reinforce-June, after being abolished

previous October emergency cuts to ments nail supplies,

save tullar.

There was no pleasure motoring during the war, but enough petrol

#s Will Mr Vyshinsky give д for 270 miles a month was allowed Irom June, 1045 to October 1947.

This ration was then abolished series of proposals that does mean 'it was adequate when lust

adequato June,

verification, until

disarmament restured on a smaller scale-enough inspection, for It is believed that the Egyptians for 90 miles a month.

Programme?" hope to reinforce the Arab claims to Now It is felt that there is a

-Rejecting-the-Soviet disarmainest. Government that the

McNeil concluded: proposal, Mr the

Negev by sealing it oil com- possibility

action

"Unless trust is created. unless the pletely before the Palestine Issue may be compelled to take

because of the heavy petrol drain doors are opened, none of us would Paris.

caused by the Berlin

of our Both the Egyptans and the Syrians the increased

good representatives people if we neceded to the Soviet were continuing to ignore repeated United Nations orders to

Mr Hugh Gaitskell. the Minister request." their positiona in the south and of Fuel and Power, is expected to: northeast sectors of the Negev front make a statement when Parliament which were captured by them after re-assembles the beginning of the truce-Reuter. Reuter,

comes up

EDITORIAL

evacuate

services.

air lift and armed needs of the

be

later in the month.--

The Colony's Finances

усаг

Was

Ar

3

of

by

the the!

Dy THE announcement

necessity, hinted geting Financial Secretury Clarke last month, of Increasing

direct that the surplus for the 1947-48

taxation. "Wo arc

net

financial

will

Bay's out of the financial wood," be

about

the aoling Financial Secretary, $35,000,000 must be read In

but

concentrating on the conjunction with 1 estimate

not lose sight wood, he should made last month to the Legis-

of the tree which

represents lative Council that the currcul credit of $35 Taillion. Surplus financial year would find the

balances are always satisfactory, Colony bearing

loss of

but to build them up for the. $18,500,000. The revised cati- sheer Bake

ablo of being

to mate surplus for 1047-48

point to the achievement is not $30,000,000, which means that

necessarily in the interests of the actually we

roughly 2140

five general public. Certainly we do sullion dollars better

than off

not belleve added burdens was expected. 1 Mr

taxation Clarke's

Ahould

be imposed estimate for the current year la simply to enable general revenuo Taifilled Hongkong at March 31, to exceed expenditure by 1949 will be about $12,000,000 to

millions of dollars. In many the good, But some doubt has

view of the 1947-48 surplug and Deen thrown on the rather

the certainty that the end of the current, financial year will depressing stallaties which were given a month ago, They were find the Colony nloely solvent, based on heavy supplementary

further any altempt to thrust expenditure with no reference

the public direct taxation on being made to probablo increasea will meet with quite likely In revenue. It is

reception, amounting to hostility. the 1948-49 that by the time

So far as the latest supplemen accounts aro plosed they

tary expenditure votes are con- cerned, the show a much less frightening

only item which.j always debil balance. It has

causes any raising of eye-brows palley of those associated been a

two million odd dollars In the with estimating Colony revenue for pensions. This is explained and expenditure to be strictly no bring used by the applica- conservative, and Invariably the tion of the Salaries Commission final accounts have revealed that

recommendations, but even so the

to the budget

re- underestimated

beIn- ADECALS amount and averentlmsted

Wgh in vlow of the ordinately

of penditure. The 1946-47 expendi-

only recent implementation ture is a case in point. It was the Salaries Commission report. estimated

Hluctrate At $107.854.570,

It serves, orice again, Actually amounted to $85.022,391.

cort the high

of government or about half of the forecast.

which,

speaking, generally And whils thero were

compiciely out *pecial

of proportion

allocated to reasons for this starting differ-

the expenditure pubile development and welfare ence, the fact remains that usually the Colony's financial positions la projects. It is in this direction much beller than the estimates that some paring down of ex- over anticipate,, The public will

penditure 'could well be made effl. welcome the revelation that the

Arithout Jeopardising the 1947-48 surplus la as high as

olanoy of the Government $35,000,000, for this should dispel,'

michino.

vengo

will

ex-

Iru!

very

cold

ny

MR HECTOR MCNEIL

"It was impossible not to notice in all these talks that the naval powers demanded land disarmament and the innd powers demanded naval armament.

VYSHINSKY'S ACCUSATION

Earlier, Mr Vyshinsky moving the Soviet disarmament resolution. had Slates declared that the United "stands in the van of the organisa-[p tion of bloes of Europent countries supported, since they were

None of the peace-loving

dis-

"As far as the Soviet concerned. the position But those who (sh in

Union is

Royal Tour Uncertain

Dino

At the

For

P.G.

Reservations

Sydney, Oct. 7.-A high Government official dis- closed today that the Royal tour to Australia scheduled early next year may be abandoned if the battleship Vanguard is not available,

The official mentioned suggestions that the. Ad- miralty may assign tho Vanguard to active duty because of the International situation. However, Aus- tralian officials are still proceeding in the assump- tion that the Vanguard will be available.

Earlier this week, the of naval correspondent Lloyds List and Register in London, said that the fleet no longer regarded the Royal tour as a foregone conclu- sion. United Press.

Terrorists Blackmail Chinese

Tel: 27880

Price 20 Cents

Vigorous Attempts To Solve Berlin Dispute

Paris, Oct. 7-China and the small powers today worked vigorously behind the scenes in the United Nations on a com- promise formula for cracking the Berlin crisis.

The conciliation movement was started by Argentina's Dr Juan Foreign Minister, Bramuglia, after a day high- lighted by Mr Andrei Vyshin-. sky's charge that the United States Government was pre- paring for atomic war and a British challenge to Russin to prove that its disarmament pro- posals were sincere.

Dr Bramuglia conforred tonight threa of the with representatives Western powers and a representa- tivo of Russla, reportedly Mr

himself.

Vysts to authoritative Latin-

American

begun

"exploring Dr Bramuglio the possibility of an East-West compromise which would

at least a temporary provide break in the world's tensest diplo- matle stalemate.

Led by Dr Bramugita, who is President of the Security Council for the Berlin debate, delegates of five of the six small nations and China held the third of a series of private celings on the possibility of enm- promise.

SUGGESTED FORMULA Oct. 7-Unim- I Singapore,

The formula under consideration, clear. peachable sources today said ja

Latin-American and according to

would sources, troubled that the Government had cap-ather responsible waters do not realise that they are tured documents showing that provide for simultaneous lifting ut busy with the distortion of fucts.

Chinese plantation the Soviet blockade of Berlin and "If the British and United States wealthy

German

peace treaty in the Dig foreign policy is thus constructed owners had been paying protec-resumption of negotiations on then there can be no progress with tion money to Malayan fer- Four Council of Foreign Ministers. the reduction of armaments, which rorists-apparently solving the The United States proposed such a

most im-puzzle of the Communists' step

after all is one of the portant tasks of the United Nations.".

of

sources of income.

the

the Security yesterday in Council

Other top United Nations sources The records came into

Evatt, ATOMIC CONTROL

Enid Australia's Dr Herbert inent hands recently

and when the Belgium's Paul-Henri Spauk On the control of atomic energy. Jungle "Fetrol Force" raided

Govern-

"

Mr. Vyshinsky said: "We' ahbleaway, near Sepuloh in Central the UN Secretary General, Trygve stubborn lack of desire on the part Johore Sinte, on the heels of the Lin, were also exploring all possible number of delegations not only fleeing: occupants. There Force ways of settling the Berlin crisis. on the question of banning atomic meinbers found what evidently was They were understood to feel that bombs, but also on that of setting an account of a recent meeting of the East-West fight over Berlin was work of the up international control."

the Communist hierarchy and a list blocking, all the

Assembly this pesalan. He said that the American and of names of those who paid pretec General

However, the events of the day British delegates had deliberately tion money and were to be spared

not kill all hopes that the Ber- rejected all suggestions that from terrorism.

lin-crisis could be settled through sinall

conciliation pressure

"general sought on

power

an

should be reement"

FORGED RICE CARDS control.

Also captured was a list of names) and a slightly-improved atmosphere "Atomic weapons are weapons of

and might be created for the rest of aggression, and future production of ringleaders, extortionists

binckmarketeers, who had

the Assembly. At the same time, been of such weapons can only serve

A those who have aggressive aims, and collecting many thousands of dollars there were few, if any, persons who

anticipated to keep the campaign going.

carly change in the went to attack foreign territories,"

large number of forged rice cards, situation. Mr Vyshinsky declared,

to bo sold on the black market, also Even if the three Western powers "Those who do not want to spread was discovered,

would accept the formula discussed. their mastery over foreign terri-

Captured documents revealed

by the Counell's small members- pro-tories by military force do not need details of a Communist plan of at and there are some authoritative posals of the Soviet Union were to clutch these weaponle and re-

tack. The Government is expected persons who think that possible- not to The prohibition of

on the there

assurance Russla was no

WANT TO SAVE FACE-

his Bramuglia and Informed sources predicted that

to wero understood fcrets the find would sharply reduce the

the feeling that time needed to round up the ter- their hopes on

Bro now. both East and West rorists in Malaya-United Press.

the for a way out of looking

directed against the Soviet Union." the taste of France and the United duction of conventional weapons to make wholesale arrests

basis of information gained from would agree.

Kingdom."

dething

seized. papers

those implicated.

Some prominent

in

the

1

the

The Soviet resclution,

were closely related, and could not Da Mr Vyshinsky then described that so far "practically

be dealt with separately, he said, of treaties done has been

the Munich as the "essence to Implement

race" decisions

"mnd armaments General Assembly's

on guaranteeing international security" repeating his earlier attacks on the Persons are believed to be among

which were in fact, he added, de-

United States. atomic energy control and disarma-

On military expenditure in'. ment, proposes: (1) The Big Powers signed to organise Europe without

the Soviet Union.

he said, "vast sums United States, shall as a first step in the reduc-

stands "Today, the United States tion of armaments

armed

to ments, perfect the striking forces, reduce by one-third, during in the van of the organisation of are being spent to increase arma- one year, all present land, naval blocs of European countries directed power of the United States."

REPORTS QUOTED and air forces. (2) Prohibition of against the Soviet Union." atomic weapons intended for aims He then made a ten-minute attack of aggression and not for defence. on an address to the Assembly by (3) Establishment within the frame-M Paul Heart Spark, the Belgian work of the Security Council of an Prime Minister.

*

international control body for Ho repented the Russian allega 50 years, and a pamphlet which

measures or

1310

to

That

of

REPORTS OF

Dr

con- base

CHINESE. SHOT DEAD Singapore, Oct. 7.-Soldiers tonight Berlin tangle. They reasoned that a simultaneous "concession" by cach shot dead a former president of the both sides wanted to save face and Johore Bahru Chinese Chamber of Commerce who was one of the local side might be the answer.

Snail power members of the Communists' intelligenslu to

Chinese 80 Security Council and the underground when the state of emor-delegate, Mr T. F. Talang, met twice Other gency was proclaimed here,

yesterday and once today.

were General A. G. carrying a revolver, was shot in the Tebrau aren of Johore. He was van Langenhove of Belgium, Mr graduate of the Chinese University Farle el Khouri of Syria and Senor of Urdaneta Arbelacz in Shanghal-Reuter,

Colombia. Delegates of the Soviet, Ukraine and other small powers on the Council were not involved.

in The Ukraine joined Russia

the participate in refusing Council debate. Conferees agreed of talks io withhold the results from the press, but as they

The man, Wong Tat-choc, who was participant of Canada. Mr Fernand

BIG BLACK

MARKET SCANDAL GROW

Mr Vyshinsky quoted a press re- the port on plans being laid for development of atomic weapons in the United States during the next supervision and control over the lons that the Drussels Five Power "prophesied" that the Soviet Union implementation of the measures for Pact was a manifestation of an would not be able to catch up with reducing armaments und

towards the the United States development armed aggressive attitude forces, und for the prohibition of Soviet Union, adding that without

(Continued on Page 5) ntomie weapons.

doubt there existed in Belgium to- Mr Vyshinsky, presenting the day groups and parties, including M. the Socialist Party, headed by Russion proposals, said that Soviet

or propagandists Government's motives in Spaak, consisting submitting is proposal were purt and inciters to war against Rusala.

""CLUTCHED BY DREAD" of Its consistent aim of struggung. against any

designs Ho challenged

M. Spaak tending to create cleavage among produce one line of evidence which

slightest indication gave the the peoples of the world,

He declared: "The Soviet people, the Soviet Union was preparing to all any country, least of at-attack who heroically defented

whose liberation tacking German

and who Belgium, enemy for three years have been working Soviet soldiers shed tons and tons 10

cure the wounds degit their of blood."

"Your country is clutched by country

and to- during the war

Soviet. Unlon, who trend of, the wardo increasing the economic power

the Soviet State are parti- uerificed millions cularly interested in getting a solid free you from Hitlerin,"

Vychinsky, gesturing peace throughout the world.

"The Soviet

Union has persisted in Spaak sitting impassibly this policy since the very first days that power was put in the hands of the workers in the Socialist State.

This policy of prod" is directed against war-mongers and against such things as the war paychosis which la being kindled in the United States."

of

"for

| Presidential rostrum.

taken on

London, October, 7.-The Daily Graphic said today that American stoel may be involved in the British big black market scandal ramifications which are expected to shake the present Labour Government. High Government oficials are re- of her song to ported to be implicated in

said Mrscandal. towards

the

Roberto

to

left

in

the Palals, M. van Langenhove, Sener Urdaneta and Dr. Bramugla all said they were "completely agreement."

It was understood the six diplo muis had not tried to draft, any The usually well-informed Dall resolution for the Security Council Telegraph claimed that although or any formal proposat for Russia the scandal has been under public and the West. That may come later M. Scotland Yard will probably surveillance less than a week, off-formed sources said the United on the complete the initial report on its cial enquiries have been going on

Investigation within 48 hours. over six months.

and

until

States, war following the policy of encouraging the small natious to.

the inluative in the case,- tako M Spaak's speech seemed to be However, official information designed to help Mr Bevin in the comment will be withheld

The Labour Party organ, Daily United Press, unbearable burden the latter had Parliament convenes on October 25. Herald, develed top of the front seandal in-page to the affair stating it was the his shoulders--the burden It is believed the of trying to prove "such horrible volves black marketing of large first major scandal since the Labour

paper Government took onleo in

Lord nonsense that it is not possible to quantities of laco, textiles,

Bald that Com- nnd other controlled materials de- The story have co-operation between

found Chancellor Jowill's insistence fraud munist and non-Communist

..coun- signated for export which tries,"

their way to the domestic market, Equad

chief Mr Vyshinsky said that Mr Bevin but the Daily Graphic sald "large Thorp had peperintendent Arthur Glasgow steamer, Coralogie, and the had misquoted and misunderstood quantities of sicel

and.

אוד

at

1045.

Steamers Collide

Madrid, Oct. 7.Tho 3,787-ton

USELESS CONFERENCE

assumed direct 2,163-ton Swedish steamer Polaris Referring to the pre-war dis

had personally assumed direct collided in fog oft Cape Finisterre Demament efforts, Mr Vyshinsky

control of the investigations. Unfit today and put in to Vigo each with sold: "It is quite clene how useless Lenin and quoted several passages materials are bellaved to have been

from Lenin's works to show that imported from America by several the probe is completed the Labour damage above the water line, were all those conferences and com-

a Midlands and North WDB

of England Parly paper sold "no decision can be The Polaris, which was taking a of salt to Stockholm, lost an missions. They show how little the international co-operation

risation." foreign policy. conulno disarmament.

capitalist states were interested in central theme of the Soviet Union's manufacturing Arms without autho- taken on the procedure to follow."-cher-Rouler.”

United ProsN,"

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