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HOLLY WOOD

CONTAINING 26,750

On Sale At Lending Stores ESTROGENIC ALMONES

VOL. IV NO. 31

For the Proprietor of HONGKONG TELEGRAPH, For and on behalf of

SOUTH CHINA MORNING POST, LTD./

The

TODAY'S 'WEATREE; Fresh, pusty Easterly winds; bloudy, with drizzle or rain developing.

Noon Observations: Barometris precaure 1018.0 mbs., 30.09. in. Temperatura 59.9 dex. F. Dew point 82 der. F. Relativo, humidity 24, Wind direction East. Wind force 22 knots,

High waters 0 ft. 2 in. xt 4.22 p.m. Low water: 2 1, 1 in. st

hongkong Telegraph.

TUESDAY, FEBRUARY 8 1949.

Dine

At tho

For

P.G.

Reservations

Price 20 Cents

COUNSEL CRITICISES SYSTEM OF CHECKING PWD STORES

Affords Breeding Ground For Corruption" Says Mr Hooton

PROSECUTOR ADDRESSES COURT IN SPARY-KWOK TRIAL

That it was the contention of the prosecution that the system employed at the Electrical Department of the Public Works Department regarding the checking of stores, store orders and estimates, did afford a breeding ground for a crime of the type with which they were dealing, namely a typical case of corruption, was voiced by Mr A. Hooton, Crown Counsel, in the course of his closing address to the jury in the PWD Larceny trial at the Criminal Sessions this morning.

Before Mr Justice Reynolds on trial are Kwok Kwong, 46, foreman, and Austin Spary, 50, electrical inspector grade I, facing eleven charges of theft by public servant, obtaining money by false pretences- from the K.B.G.C., and conspiracy to defraud the Government of money.

Before Mr Hooton commenced his address, evidence of character was called on behalf of Spary.

S'hai Short Of Butter And Eggs

Shanghai, Feb. 8.-Butter", egRES and coffee are fast disappearing from the tables of forelyn homes here as a result of the continued skyrocketing prices enused by the depreciation of the Gold Yuan.

The prices of bread, which wasi only GY25 on January 31, touched GY130 this morning--an increase of more than 500 percent in eight days, American cigarettes have

soared beyond the reach of the majority

GY280 per packet of twenty.

ness,

to

Lt.Col E. J. R. Mitchell, OBE, ED, testified that he had known Austin Spary for about twenty years and had known him for three years and eight months in a prison camp as commanding officer. "I would like to say that his conduct there was excellent," he said. "He was general handyman of the officers' camp, repairing watches, medical instruments and generally looking after the electrical supplies. He gave his services freely and voluntarily and was always willing to take on any kind .of work."

of the Gold Yuan-salaried class 1020 and were intimate friend culd be surprised to hear had been/

EDITORIAL

Manpower Problems

BRITAIN day is trying to do

harder work, the appeal In fact Is addressed primarily to about 11,900,000 workers, who directly or indirectly help to make the

for

tivities. He took a prominent part in the arrangements and details because quite naturally the prime mover and organiser would not take such a part and therefore, it was natural that he should shield himself in case of the suspicion of the possibility of anyone colleeting sufficient evidence against

hlm

ICY BLASTS STRIKE

AMERICA'S WEST

Chicago. Feb. 7-Ier winds Dowling down out of the Rocky Mountains whipped snow into hace new drifts today, forced the cancellation of many crack trans-Continental rains and threatened crave new catile Tonses.

Wide areas of the West, strangling against the worst winter in history, reeled under the impact of the new storm.

The Chicago and Northwestern Railway cancelled all through frains to the West except one.

At Omalia, the commander of the Fifth Army's "Operation 'Snowbound” bald reports from county agents indicated heavy now

Ilvestock losses in the great plains blizzard arra.

New storms hit California, Oregon, Wyoming, Nebraska And other areas. Roads to Wremingwhileh—were opened by--Army bulldozer crews, closed again when winds whipped old show luto new impassable drifts.

In the Western blizzard area, it was estimated 4,700,000 cattle were in peril. Twenty-one thousand head of sheep and caille were Jost i one Wyoming county alone.

The new storms trapped hundreds

isolated of motorists and dozens of cities and towns. Some traits were 20 hours late on the main lacs-United Press.

Burmese Troops Open Big Offensive

PLANES USED AGAINST KARENS

Rangoon, Feb. 7.-Burma Government forces today opened a full-scale offensive against the Karen Pro- rebels in Insein, 11 miles north of Rangoon. Government reports said Burma Air Force' planes took part in sweeps and attacks on insurgent posi- tions in the area.

'Karen units of the Burmese armed forces in North Burma have been disarmed by the Government, communique. Precau- according to tonight's official tions were taken in various parts of the country garrisons have been alerted,

and

The communique reported clashes between Government troops and Karen Insurgents at a point north of Nyaunglebin, on the Rangoon-Mandalay railway. Tho rebels were said to be retreating to the north under heavy Government pressure.

British Embassy forries today

Tel: 27880

A Little Initiative From Soviet Might Help

MR ATTLEE' MAKES

A SUGGESTION

London, Feb. 7-A "little initiative" from the other side of Europe would be of ad- vantage in settling interna- tional differences, the Prime Minister, Mr Clement Attico, zaid in the House of Commons today.

A Labour Member, Mr Ronald Chamberlain, had asked him whether "in view of the willing- ness of both President Truman and Marshal Stalin to meet," he would now offer to arrange such a meeting in London.

"A Nitle energy and initiative might well move mountains," Mr Chamberlain said.

The Prime Minister replied: "Tho

Mr Foreign Secretary Bevin, has again and again taken the initiative. I do not know why you always think all the initiative must come from this country. A little initiative from the other side of Europe would be of advantage"

Mr Attlee said that as no official communication had been addressed to him by either President Truman or Marshal Stalin, he saw no pur- pose in intervening as Mr Chamber- lala has suggested.

Mr

PREMIER DISAGREES

Chamberlain further asked whether the Prime Minister, did not pgree that the main obstacle-the refusal of either Marshal Stalin or President Truman to meet in cach other's territory, and the desire of the President to bring Britain info the conferenço would be solved by a meeting in London? replied Attico

briefly: "No.

Bir

Mr

Mr. Emrys Hughes, Labour, asked If the Prime Minister did not think the British Government should take the lead in world peace. Was ho aware of the great cordially with which the Russian sailors (from the bave just returned to the Russians have

Mr Hooton then continued with evacuated 30 Britons, including 10 CHIANG GOING battleship Royal Sovereign which

on

TO CANTON,

REPORT

Britain) had been greeted in Edin- burgh this weekend?

The Prime Minister replied: "Iˆ agree-on-the-desirablilty of doing all we can to encourage world aware that pence, but I am not the best method is that suggested by Mr Chamberlain,"

Crown Counsel and Mr Percy terms with one another. During

the whole of my period of friend Chen (representing Kwok) said they had no questions to put to the wit-p with Spary I have known it to be his habit to help anybody who needed help or advice with- Mir Francis Brett, MBE. Senior out a thought of reward and during Marine Officer, Marine Department, the whole period I have known hini testified that he had known Spary I have never heard anything sai since 1825. "Mr Spary and I were

brainst him." together in the Volunteers from 1025

AMPLE CORROBORATION Mr D'Alton (representing Spary}: Is he the type of man of whom you seid Brett. "We afterwards

comments upon the course of the women and 14 chlidren, from Inseln A

shows the average the sharp-shooters company of the involved in anything criminal? canvasá

case. Certain of the evidence might Shanghailander is today engaged in Pulice Reserve together. We Inter Brett: Il bas come as a very be considered by the Jury to be

just before the Government forces a struggte for survival as hectic in ; regained. the Volunteers together great surprise to me. Mr Hooton that of an necomplice

particularly launched a full-scale offensive during the flint days of the Fap: and were in the prison erop to-and Me Chen did not ask Brett any with regard to the witness Ho Ting, the town. Jast-summer-Router,

Hyther. Our families were on friendly questions.

foreman at the Wanchal workshop. ADDRESS TO JURY

Other Britons decided to remain There was evidence that he knew his speech Opening

The evacuces said the the work which Spary told him Inside Insein. prosecution, Mr Hooton said. Men to do was improper is Lordship gave them food and water

and. that he the insurgents holding, the town burs of the jury; The whole of the was told to steal.

while evidence of this case has now been would no doubt direct them that they sheltered in a school in Insein Kai-shel will go to Canton on gasted that in view of the "failure

Shanghai, Feb. 8.-Chiang

Mr Lewish Austin, Labour, sug- heard and it is now my duly to the evidence ot an accomplice

March 29 to preside" over anjin

respects of orthodox sum up the case on behalf of the should be corroborated but, sub during the Government attacks, Crown. As I said when I opened mitted Mir Heaton, In this instance

Burma Geveniment planes took "important conference of the dies should Gu put aside and the

methods,

personal pride and pre- this case you will of course judge

there. was ample corroboration

part in today's offensive which be Kuomintang," says the Ta

three States get together and settle the guilt or innocence. of the per-

Mr Hooton next referred to the sans charged entirely upon

fan, at noon, the deadline for the Kung Pao în a brief Canton their differences If there was to be the

course of cross-examination of the

Karens to

It surrender, evidence which has been heard sa

wils dispatch. The prosceulica witnesses.

Jury officially stated that Norman West.

There is Court. The speech which I am go would remember that the majority

The paper quoted unidentified a reporter for on English-speaking | ing to make is intended to assist of the European witnesses who

did not you to come

newspaper, was captured by Karens "official sourcen" and to the right and pro- initiated the jobs were treated on

say whether Chiang might re-i per conclusion on the evidence and the whole extremely kindly. They while covering the Insein battle.

sume the reins of government such parts of the evidence on which were asked leading questions, said inferences this Order hose who wish to

be considered to

counsel, and the

at the time when he is leaving eliange their jobs, or job seekers

have been justifiably drawn.

pat. With regard to the Chinese As I said at the beginning it has workmen who gave evidence,

A Burmese reporter, Moung Than, his place of retirement.-Asso-Brien McMahon (Democrat) today allowed to choose from are

was captured by Inseln insurgents atciated Press. number of offered jobs, but this been

in fact tedious case, and to Hootan contended that they

had Insein and was believed to have been Order

cannot be used to vend same extent a sordid one, in which told honest stories and from the shot dead. Both newspapermeni

Jobs people to

from their

the reputations away

persons

very beginning their testimony had entered the fighting The vacant homes.

have not been improved. The sute stood up completely to the cross-assignments. Jobs Arc ATE mostly in over-developed and matter for your concern is whether examination. They had been treated over-crowded areas,

these two persons are guilty of the far the where there

In Rangoon, the most part in a manner

Government are neither

Idic workers

criminal crimer of which they are which nor SIGE

Guggested complete in tonight ordered the 30,000 striking vacant houses, while the work- charged.

credibility as if it were quite im- civil servants to report back for duty lers men and women

Are

at noon Thursday or be dismissed of the prosecution, a typical corrup- was the truth. tion ease. The offences charged are

case

It had been suggested that

they

servants or new recruits." larceny by Government servants and had learnt a lesson as to what they in the right sense of the word it is were going to say

Strikers parated

the through in the witness It box a case completely of corruption.

streets of Rangoon shouting in protest There were the submission of

references and against a proposed cut in living al- has in the

prosecu asides in the course tion all the features

cross-lowances. of a case of that examination that they had

The police arrested the kind, evidence

been leaders of the union which had called of money passing taught this story by Mr Johnson, of the stoppage. vidence of bills being mede out, and the Police, and his staff. The jury Lack on the part of certain prosecu- might think this was significant or tion witnessce to come forward to the

social

many things: she is produz- Ing more goods of all kinds. bolideg expanding her exports. new Industrial plants, replacing out-of-date industrial · equipment, catching up with the arrears of development during the

building

new houses, hospitals, schools und undver. alties, extending researchi

lavora Lories, building

roads. bridges, harbours and improving the rallwayLi and

she has not enough manpower to do all this

war

work. The maupower

Voy

lack

new

of

subilcient

at the root of most

Tue

of Bellain's coonomic difficulties.. Nevertheless the manpower ailua. Lion, Ught and difficult as it is. lo not quite so bail now as the Government

expected it to be when the annual manpower sur- WAG malo In 1948. The

wilto

have marrie

Wonich responded to the call to stay In their industrial Jobs,

and the The older men who have remained. have eased the manpower situa- Lion

a little, but they have not solved Ik Almost everyone in Britain who can work how, xos a Job loday. There are a very nut of work for any length faw. of time, and they

Arc

con-

nished goods for export and lur

the home market. The persua- sive Influence of the Conirot of Engagement Order has been rather

successful Under

more

arens where there arc no ex- panding Industries. But Britain can gel of this stalemate in

out two moves. One is to build more houses quickly

already Iri over-developed industrial areas. In the Midlands of England, for instance, where there are thousands of vacant jobs, and In the mining areas in order to altract labour to the mines. The other move is to tako Jobe to the idle workers by building factories in the old distressed arens, and this has been carried muk

big ini

way. The areas

centrated in a few spots in in- dustry. But although there are 20 million workers In Britain, there are not 20 million people at work in civilian Jobs,

The number of workers who actually produce the goods or transport the goods on

Britain's which prosperity depends, ar in other Industrial countries,

much smaller than most people rèaltie. There are under four million workers including directors. clerk-in what managers and are called the basle ilustrlen

fishing agriculture, fishing, mialne. cool transport and in public utility services, gas, water and electri- elty; and just over seven millious In the manufacturing Industries, ranging from strel and textiles and machinery, to the making of pols and pans, food processing and making beer and cigarettes. So that when Britain, në a whole, appeals for more production and

can

which were called distressed ones betwen the wars are how called development areas, and under the Distribution of Indus- try. Act, the

Government oin factories

help or to build factories, land. can clear derellet

and

arcas

build Industrialiste

and

buflil roads, rallways docks,

to make these new centres of Bellain's industry. Britain, therefore, unable to in crease

the sixe of her labour to re-arrange force, is worklog its distribution, so that the most Important Jobs are filled and the Jess important left unstaffed. It tremendous and as long

tank as the wartime powers of direc

not used to direct Hon are workers into essential industries Lite re-distribution of jobs and workers rests on the slower but democratle usa of persussion and planning.

10

can

of some

answers came out

Mr

ORDER TO STRIKERS

peace.

Mr Attlee replied: question of pride and prejudice." Htcuter.

SENATOR'S PROPOSAL Washington, proposed that

Feb. 7-Senator.

President Truman and Marshal Josef Stalin stage a DELEGATES RECEIVED public exchange of views in radio Yeh broadensis supervised by the United B.-General Peiping. Feb. area on news Chien-ying, Director of the Military Nations.

In the Senate today, Senator Mc- Control Corpmittee for the Peiping

of 11

said

An such

exchange received three

peace Mahon area,

the should be carried directly to delegates from Nunking.

United States and It was presumed the question of people of the a settlement was discussed with the Russia and should precede any new

four-power

talks-United peace There is good reason to belleve Press.

attack that the Reds- don't

much Importance to this delegation except as a channel of communication.

Consequently, no real advance is expected until n higher level delega- tion from Shanghal, headed by elder statesman W. W. Yen, arrives.

This is, of course, in the submission possible that what they were sayink and replaced by "loyal Government group of Nanking professors,

ense of this kind.

of

Silence Campaign A Failure

As far as can be ascertained, five Singapore, Feb. A campaign Chinese correspondents who came to ban sounding of automobile with the Nanking group are still con- horns falled in Singapore, The city fined to the West airfield, eight miles commissioners decided enforcement were empty outside the city, where their plane would be too much a strain on

lended yesterday-Associated Press, police officials-Associated Press.

Mr Lange Says Norway's Answer To Soviet

Note Is Quite Clear

The Immediate

on

interpretation to join in the preparatory talks on Mr Lange's remarks the Atlantic Fact." on about the Russian quesNons

Armed, guards stood at strategic give their evidence. It has every- they might think it would be beyond points throughout. the capital and thing which one would expect in any single Police officer and his staff outside Embassy buildings while ad-

to invent a story so complete in de- ministrative offices tail. There was no motive for a Reuter. STRONGER CASE

Police officer to do such a thing and Now at this stage. I would like to the jury would no doubt treat that say that all the evidence has been suggestion as being completely pre- severely tested by cross-examination. | posterous. All the prosecuilon witnesses have The jury, he said, would remember

Washington, Feb. 7—Mr Hal-¡ been subjected th most searching that when the Police officers gave research into their past careers and evidence and were cross-examined vaard Lange, the Norwegian netivilles.

I submit that this ense is far not a single allegation was made Foreign

in Minister, said than when I opened it to you against them. stronger

"If one is making Washington tonight that Nor- over a month ago. The case for the allegations It is proper to make them way considered she had made, placed prosecution was and still is that the to

to the people who can answer. second accused, Austin Spary, has Do not hint that they have been clear to the Soviet Union her bases was that he considered that No such invitation had yet been been carrying on a private contract-

on a private contracts misconducting themselves to other position concerning the granting he had already fully answered them tendered, Mr Lange saki. Ing business

people

taking

stand refused to give further details have of buses on her territory in the and

today's „iscussions or to comment authorised the employment of Go-to put the allegations to them face event of a threat to her security, against further pressure. |vernment materials and Government to face."

further on the Russian nota bayond Speaking to reporters after a labour.

Mr Chen: I must take objection 30-minute

roview conference with

Mr Lange described his meeting stating that it was under Crown Counsel went on to Kay to that. My learned friend is bring Dean Acheson, U.S. Secretary that it was the submission of the ing personalities into this case and State, Mr Lange

of with Mr Acheson as "preliminary" by the Norwegian Cabinet. evidence was I ask the Court to direct him to re-

my and added: "Wo hope to return to

He and Mr Acheson, did not men- prosecution that the conclusive against Spary. When one frain. If I am, challenged for lackt mind, my first reply to the Russian the problem a little later in the

the details tlon it today, he added. Government was a clear answer."week" Questioned on probed into the account of his

of courage then my friend does not He was referring to the response of his first discussion with the Secre

Mr Lange was cheerful but frm evidence, sald submission of the Crown that it was Mr D'Alton: There was a desire he gave the first Soviet nole to the lary of State, he reiterated: "We In his replies to reporters, Mr a carefully and skilfully blended on our part to save time. I could effect that Norway did not. Intend have como to enther information Acheson took the unusual step of beziden mixture of truth and of llen The have subjected Mr Johnson

to ato grant the use of military bases with a view to learning and in order leaving his office to pose ovidence against Kwok, he said, was much longer cross-examination If I except in time or war or unless to report to the Norwegian Cabinet the Noweglan For'gn Minister for overwhelming. Kwok was an inso desired.

her security was directly threaten and Parlament ns to whether or not newsreel and press photographs. dispensable cog in the series of nc-

(Continued on Page 5)

jed.

Norway ought to accept an invitationReuter,

counsel, it was the know me,

and

then

not

said:

Mr

Was

2

Arm

Ho

of

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