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SOLE AGENTS NANKANG CO. UNION BLOG

VOL. IV NO. 23

May Have To Resign

Acting President of China, Li Tsung-jen, who, according to Intest reports, may have to resign in the face of right-wing Kuomin tang pressure. is resigna- tion would mark the failure of the present endeavours on the part of the Nation-. alists to come to a peace agreement with the Com- munists.

2 Ships Sunk: Destroyer Rescues 36

The Australian destroyèr Warramunga reporter this morning that she had picked (32 males and up 36 Chinese, four females) believed to be the only survivors of a

For the Proprietor HONGKONG TELLERAFEL. For and on behalf of

BOUTH CHINA MORNING POST, LIEL

The

WHAT STALIN INTENDS TO DO: Read the second InsLif- ment of this Important series of inlde Informallow about' Kremļlu plans and future polley on Pare 4 These articles-are exclusive in the Far East to the Telegraph,

Thongkong Telegraph.

FRIDAY, JANUARY 28, 1949.

Dine

At the

P.G.

For

Reservationa

Price 20 Cents

FLIGHT FROM NANKING Blows Bubbles

BECOMES PANIC

Pessimism Over Chances Of Peace Deepens

30.000 GOVT TROOPS MOVE INTO SHANGHAI

NANKING, JAN. 28.—EVIDENT BREAKDOWN OF CHINESE GOVERNMENT EFFORTS TO MAKE A SURRENDER DEAL WITH THE COMMUNISTS TURNED THE FLIGHT FROM NANKING INTO A PANIC ON FRIDAY,

It was learned reliably, however, that the U.S. Anibassador, My J. Leigh- ton. Stuart, would stay in this Red menaced capital on instructions from Washington. Only a small party led by Minister Lewis Clark is due to join the Nationalist Government in its transfer to Canton. All other diplomatic mis- sions except the Soviet bloc are expected to follow the American example.

Reflecting the personal convictions of diplomats that the Government no longer represents the Chinese people, their decision to stay in Nanking is a profound diplo- matic reverse for the Government."

+

In Shanghai, the Commander of the U.S. Western Pacific Fleet said on Thursday night some marines soon would be withdrawn from China but he emphasised enough would remain to meet any emergency.

NEXT ISSUE ON MONDAY

The next issue of the Hongkong Telegraph will be on Monday.

The paper will be on the streets at noon..

In Nanking. General Chang: Chin- These Nationalist troops were re- ching, a leader of the Government's | poried to have been rushed to peace delegation, announced he was Shanghai from Antwel by train to fying to Lanchow in the Far North- ¦ defend this vily should the peace west to discharge his offlelal duties negotiations collapse betweck. the as commander there "during the lull Government and the Communists. In peace negotiations."

Asked how long they would ex- ints deepened the pessimism Inpect to be stationer Ja Shanghai, Nanking over chances

Works of selling an official of the Political with the Communists. All observers

Department attached to the Army were becoming more and more con- Faid he could not say.

"It all depends vinced that prospects were hopeless.

on the uulemizin Premier Sun Fo and Foreign of the military and politicnt situ Munster Wu Tch-chen flew lation, he pointed out. Shanghai, ostensibly to seek The

of the civil war The approach support of non-Government ! has given rise to nuny pence leaders but nobody believed this incidents by Shanghai, including the fact that an increasing number of General Tenx Wen-yi, oficialehes between military

personnel Rhodes, Jan. 27.-An atmosphere j military spokesman, charged the and private rezidenta bad néen ve- theet the teepest pessimism has sated Communists with "insincerity" about ported, Colony early the morning from the over the Jewish-Egyptian armistice penece and told a news conference Taiping, which it that the two negotiations and sources close to the Cavernment was fullspr ships had collided at about midnight the Palestine mediator, Dr Ralpared to resist any attack on the last night, and the Kien Yuen had? sunk.

collision Armistice

between the ss Taiping and

Talks

Kien Yoon of the Chim Coast Nearing Collapse

wear the mouth of the Yangtse.

An 805 was

Tor viverd in

A message from the Warragonta

indicated that both ships had sunk.

The Worrzmunga added that no beats hul been found, and that these may have reached shore safely.

The survivors are being taken faj

reason.

Busche, intimated that the tatko Yangise cities."

might be on the brink of collars. This only enhanced the panicky United Nations oficials wondered exodus from Nanking Streets were which side would take the talammed with all sorts of convey step in the expected breakum undances headed for the railway suited thereby risk the criticism

the leading

Skaughai---Associnted Sceurity Counch.

A Jewish source said torlay, "We for Isract

Woosung, and the Chinese author-are planning to leave ties, there have been asked to make SON We canno! Just more time arrangements for their disembarka-here." tion.

No

"The information was varicio A neutral informant aid. locally this morning about the num-two sides differ not merely on de ber of passengers carried by either tails of argument hul on principle." of the ships,

EDITORIAL

-United Press,

Hongkong Reform Club

Press.

1<

Ked

untoward

TAKE OVER HOUSES

not been of a peaceful nature.

the cast.

To Stay Alive

Lester Lawson (above), 38, n motor mechanic who lives on Suck Creek Mountain, Tenn., blows bubbles about five hours each day to strengthen his lungs, punctured four times by bullets in a gun fight. He has a bullet in his heart and has been told by physicians that laughter, may cause the bullet to plug a ventricle and, kill him. -- AP Picture.

Something For Nothing For Economically Weak European Countries

London, Jan. 27-Sir Stafford Cripps, the Chancellor of the Exchequer, told the House of Commons today that economically strong countries in Europe were prepared to make grants to their weaker partners and to export goods and services to them for which they would receive nothing in return.--

It payments.

covers

}

Tol: 27880

5-Power

European Union Discussed

Atlantic Pact Also

On Agenda

London, Jan. 27. The Foreign Ministers of the five Brussels treaty powers meeting here as the Consultative Coun- cil of the Western Union today discussed European Union and the proposed Atlantic Pact, it was believed in well-informed quariero.

The Ministeru who met at the Foreign Onler were M Ernest Bevin (Britain), M. Robert Schuman (France). M. Paul Henri Spank (Belgium). Dr D. Ú. Sticker (Netherlands) and M.' Joseph Beck :(Luxembourg).

None of the delegates would dis- close any details of the day's pro- veedings-the first in the two-day conference. They were following their usual proceilure at the end of each complete session.

No Anal programme for European Unity was expected to result from The present inceting, But it was believed the five powers would reaffirm their:atherence to the prin- ciple of extending Western Union, co-operation in the wider European Neld And that

practical machinery might be foreshadowed.

TODAY'S TALKS

They will almost certainly under- Luke 10 Rive further immediate study to the separale reports of the Paris spécial Committee for Euro- pean Unity which has been examine!

the British and Franco-Belgian

... that the Atlantic Union

discussion was regarded as complete today, the Council was expected to consider

Tomorrow the co-ordination of polley on Palestine.

Observers forecast that the final communique tomorrow evening might record the Western Union's collective decision in principle to

grant de facto recognition, already announced by France, to the Government of Isrbel. Tomorrow's agenda for the Coun- cil was expected to include German problems. These would have special I reference to rujarations and the re- port of the United States Humphrey Committee on the retention in Ger- many of plunta previously carmarized for other European countries.-Reu- ter.

2

SECRET SOVIET TALKS Prague, Jan, 27-The Soviet De- puty Foreign Minister, Mr Andrei Vyshinsky, was tonight reported to be holding secret tolits with

East European Communist leaders In fortress-like hotel on a hill over- looking Karlovy Vary, West Bohemian pe 'centre,

Mr Vyshinsky's arrival here this week coincided with the Moscow annotaticement of the formation of The new Eastern European Economic Council.

off

a

HOUSE TO DEBATE He went immediately to Karlovy

Vary,

where the Russians have sealed LYNSKEY REPORT

'Oficial compound. London, Jan. 27. The report

sources maintained complete reserve of the Lynakoy Tribunal, which inves

An oficial spokesman even tigated allegations of corruption in

dented any knowledge that he was Government circles, will be debated in Czechoslovakin

Well- at all. the House of Commons next | infomed sources said disagreements Thursday, it was announced today, about political and economie policies Mr Herbert Morrison; the Lord among Eastern European Comuniunist President of the Council, will move leaders needed arbitration of the motion asking It to be accepted by sort Me Vyshinsky is, famoys, for the House-Reuter.

supplying-Ileuter.

about the purpose of his visit, ΟΣ the the world," he declared.

in

The North China Daily News re-

They hud uxpressed their Britalo, Sir Stafford added, must ports that it has heroine a eczumon

expand her production as a whole. sight to see many soldiers occupy-willingness to do this "for

Including ing private houses, partly or other-time at any rate," he said.

manufactures, mining, wien, and says that there had been

griculture and building by one- instances where the occupation had Commons on a bill providing for

He was speaking in the House of third above the prewar level.

The Chancellor of the Exchequer the carrying out of vertain financial | sald Europe could not hope to Alcanwhile, Reuters learned that provisions in the Anglo-American succeed by concentrating on in- DRIVE ON NANKING

intpressed labour was busily erecting Economie Co-operation Agreement greased exports or manufactured Nanking, Jan. 27-A strong Com-defence works in Pooling peninsula and the Inter-European Payments goods.

across the Whangpoo river from and Compensation Agreement.

Production within Eurone of munist force, placed by a govern- !

The system

of inter-European foodstuffs and raw materials now ment spokesman at 200,000 men, is Shanghal to check a possible Com-

the capital. ! munist threat against the city from grants, amounting to the equivalent brought from outside must not be driving hourly nearer

of $800 million in all, had greatly neglected-Reuter. Although a government spokesman

Temporarily compelled to discant assisted the movement of trade claimed that there are, 300,000 Na-

thousands within Europe; he said. tionalists in the Shanshai-Nanking their toes and ploughs,

lot farmers working under military "The scheme is in fact a great area, the actual strength estimated

by neutral observer, at upervision are said to be toll deal more than a scheme for intra- al day long in building cunerele European less than 50,800 gainst the mareli southward.

pillboxes and earthworks only about directly the trade of a large part of Eleven Communist columns under one mile from the banks

Whangpeo.-Reuter, Liu Poseben and Chen Yl converged

NEW TRADE CHANNELS an Nanking in three directions.

MARINES TO STAY claration

too vague and

General Teng Wen-yi, Information

"It has only been-in operation for Shanghai, Jan. 27.-Vice-Admiral a few months so far and we can- tuivocal de command any great

Director, told the press that one

told the not as yet toagulat

Today.

form response.

as

any force of four columus of Chen Ysacar C. Badger today

considered before, the ever

Colony's

It has between res that the United States intends Judgment on its working. Ren is now in the area legislature needs an anofficial

the channels of 151 to keep an "adequate number of not opened up Tinchang and Liuha, 40 and najority ant not one that Is

European trade miles

fully of Nanking northeast of

The

or entirely virtually

rubber Stamp. 23

United States citizens

settlements Central force of four columns also protect

and other foreigners Moreover today, as never before.

of Chen Yi's men is marching down trolled violence. He emphasised that

from uncut within Europe.

"We are still having to pay goit Colony

elected needs

the railroad between Mingkuang this policy was subject representation to the legislature,

to change a considerable scale to Belgium and Chuhsten,

and 30 miles oficial nominees. The

any time depending on the wild Switzerland to obtain essential Reform Club

northwest of Nanking. The westen between the established government imports such as steel. manifesto. nvolds both of these fundamental issues.

force of three columns under Lof China and the United States go- machinery. Government has

now near Chushu, 20vernment. F'c-chen the

is creation of an unofficial majority

niles northwest of Nanking.

The Western Pacific Naval Chief cure the In addition, other cources report-sald there: would be some reducirade," In tlin Legislative Council conditional on the implementation

ed, other armles under Liu Po-chen tion in the strength of his foroes of the proposals to for

are active 300 miles north of Hans most of them, go on a floating said the first stage of submission, The Chancellor of the Exchequer Muntelpal Counell. But there are

basts aboard ships but he refused criticism and 110. sigts that there is any

to disclose the exnel strength ex -Immediate Intention,ío implement

tolrtpected to them: wherefore the Colony

be retained. "We are going to retain enough, but not too appears destined to carry on

denied the recent existing Indefinitely under its fortn el Tegislature. Strong publle opinion, guided along the right lines is highly desirable, but Publie Opluton must of necesally lose confidence in itself when it ennsistently runs

up against

NY alfempi to exbibli a elvie consciousness and a desire to promote publie interests in Hong kong deserves at least approval, and, where the sinted oljeels of the promoters can be expected to contribute to the general welfare, encouragement.

the The Reform Club of Hongkour, the inaugura- tion of which has Just been annonneed. would appear to quality. In brief its objects are to promote healthy public oplakan through which, in due time, will come constitutional reform and a closer association between Government and the people. The alms are laudable enough, and. in their present terms, guarantee activillen sufficiently innocuous to avoid arousing the antagonism of This perhaps is the officialdem, ellef crllleism to 110 ievelled against the programme as out-

lo

ned. It breaks a new ground! ilors, pot even promise.n HI technique of approach. Great play is made of the Intention develop and encourate construc- tive criticism, 1629 though that were a new phenomenon in this Colony. There has never been дву Nitortaze of constructive ersticiami what h Incluir is the machinery whereby the criticism will be acknowledged and neted apon through official chanuela. Al there is nothing In Ika Reform Club chatter as it stands At present lo create thin machinery. One declared object is to devise ways and meaits revitalising and remodelling the Legislature with due ITgard to the present necessity for it Government majority. The de-

of

madr

1

kow.

GO

to

ines and Naval units in Chudoue away with gold

DELEGATES STAND BY Meanwhile, Shno Li-fże Chinese reporters that the govern ment delegation was standing by many." He ready to proceed to Pelping at

moment's notice.

Chinese reports that large relr force ments arrived at Tsingino quad also Chinese reports said the govern-reports at the United States Navy ment la massing more than 30 ware was pulling qut, ' skips and gumboats, including their Admiral Badger said that "change

"Chungiting" biggest whips

anding conditions, Including the absence

flax and

"It is not of course suggested that the' payinents scheme of itself can unbalance. of European

the

analysis of economie 'programmes

the 19 European Countries was, a great international achievement

Nothing like it had ever been

attempted before in world history and it had provided a foundation upon which real co-operation could, be, built.

FOUR MAJOR OBJECTIVES Britain Bad four major objectiver

1.-Export

area

the

the

official indifférence and refusal to

"Linpu", for the defence of Nanking of violence during the changeover during the next few years. She The ships now spread in the river from the Nationalist to Communist must: be Laken seriously. Public Opinion in matters

Ware east and west of Nanking. affecting the

rulo in Peiping, have been the prin-

more goods 10 the -administration of the Colony can

planes also started day and night

Cannda and to patrol over the river to guard Com-cipal factors of the decision to reduce United States and only he effectiva when Is

the forces at Taingtno. He indicated areas where they could cara dollars represented by elected nominees munist crossing operations.

In the meantime, it was reported Marines cif the

that the plan to get most of the or save gold payments. will a majority, vote. It is mag-

beach and aboard. 2-Reduce imports from the dollar that two ormies commanded by gested then that the Reform. Club

.an effort to ship was dictated by

a volume for which WebLi Hala Chang Kand devole its first energies, less to

vulnerability to Com-could currently pay, reduce the forcon-are the promotion of publie opinion,

Taung-Jen's personal

munlat charges that the United 3.-Malutul and Increase arriving to bolster the defence of States Navy was violating Chinese "very valuable" contribution made by and more to securing a type Tegislature that will

NankingUnited Press. encourage

sovereignty. He insisted, in response the colonies through the sale of Pablle Opiulon to belleve

MOVE INTO SHANGHAI to questions about the Communist material to the dollar prea. Itself. Public Optulou and elvie

Shanghai, Jan. 28,-Nationalist | charges, that the "Marines internn. -Increase her invisible earnings consciousness die natural deaths

infantry, totalling more than 30,000 tionally are recognized as protectors of dollars in every way possible and when they are continually being

men, moved into the Western dis of foreign cltizens' lives at a time of especially by encouraging and deve- frustrated, and that is what is

trict of Shanghai und sei: up fem uncontrolled violence" and not as toping tourist traffic, buliding up the happening in Hongkong today.

porary headquarters there yester|participanis in tho bost country's merchant navy and increasing the doy, it was learned.

"affairs.—United Press.

inle of oil in dollar markets,

of

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