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Today's Weatheri Mederato winds from an Easterly quarter. Noon Observations: Barometrio pressure, 1010.8 mbs., 30.03 in. Temperature, 10.2 der. F. Dew point, 04 dor. F. Relative humidity. 79. Wind, direction East, Wind force, 7 knots.

Low water: 1 ft. 4 in. at B.07 p.m. High water: 6 ft 4 in. at 11.45 p.m.

Hongkong Telegraph

VOL. IV NO. 63

3 Months Imprisonment For Kwok Kwong

Kwok Kwong, former foreman employed in the electrical department of the PWD, who was yesterday found guilty by a jury on three charges of theft and. three of falsification of documents, was this morning sentenced by Mr Justice Williams to three months imprisonment on the first count and one month on each of the other charges, the sentences to be concurrent, and to be served at the expiry of his present sentence for larceny of Govern- ment property.

Mr Justice Williams said he agreed with the jury that Kwok was not altogether to blame and that a considerable blame for his behaviour 'ics elsewhere.

Full page 5.

of the judgment appears report

on

Over

Reds Take

In Mandalay

have

Rangoon, Mar. 16-Communist forces taken over the administration of the sacred city of Mandalay which fell to the Karens on Sunday. it was officially stated here today. Mandalay is 500 miles north, down of Rangoon,

Th Communists are led by No Yan-aung, one of the "30 Comrades" who went to Japan in 1940 with the late Aung San.

..

their arm by 8 (local time) on Thursday.

It is learned that pamphlets setting out the amnesty terms were dropped from planes over the Inseln area. The Govern ment denied that

ofter the covered the Communists.---ABID-

According to today's state- | clated Press ment, the Korens are grouped inside the famous Mondainy fort which, before the war, housed

the palace of the old-time Bur- Soldiers Beat

mese Kings.

The palace

was

destroyed

during the Japanese bombing of Mandalay in 1042.

LOOTING & EXTORTION

Today's communique stairs that the Communists are en couraging open looting and ex-

In tortion of wealthy people. large-scale action between Goy- ernment forces and Karens in the delta district of Maulain, the the communique continues, Karens fred on naval boats and other river craft, but suffered 200 casualties when their Arg was returned.

Karens trapped at Inseln, ten miles north of Rangoon, have hot. yet replied to the Govern ment's amnesty offer, the Ac sociated Press was told aßicially foday.

Monday

Theatre Up

Employees

THURSDAY, MARCH 17, 1949.

Europe Suffers

An Attack Of War Jitters

FIVE DEVELOPMENTS CAUSE SPECULATION

today.

London, Mar. 16.-Europe got a bad case of war jitters There is a feeling here and across the continent that The a diplomatic crisis with Russia is in the making. Western nations rushed defonce plans so they would have 'some cards in their hand, if and when they have to sit down at the table with men from the Kremlin for a showdown.

No responsible statesman is predicting that armies would be on the march in the immediate future but there is an air of grimness in official statements and actions.

rearm

Shanghai, Marchi 17. Acets by

late yes- |may| truckload of soldiers terday beat up a score of theatre | Years.

Army employees

because 20

After the management of the International Cinema had fused to admit an officer Six

without

friends of his charge, the officer went away. A short time later, a truckload of soldiers arrived and began beating up the employces and wrecking theatre furniture and | equipment.

2,

the

The developments were:

4. Russia said that she has already developed the atomic bomb and gone on to bigger things.

5. The Italian press carried reports that mysterious planes were parachuting "what seemed to be war material In northern Italy.

lo

оп

Military sources in Trieste to- night denled reports of incidents on the borders of the British and United States Zones of the Free Territory.

Will Try A New Flight

Police Stoned By Workers

R

+

Rome, Mar. 16.-The Chamber of Labour at Lecce, Como in Northern near Italy, called two-hour general strike today in pro- test against incidents last night in which several were injured.

Dine

At the

For

P.G.

Reservations

Price 20 Cents.

Tel: 27880

New Palestine

Boston, Mar. 16-Captain

Bill Odom

nounced today

(above)

勒•

he intends to take an around the world flight by way of the North and South Poles. He ad- mitted the flight was still In the dream stage but said, He already had been briefed weather con- Arelie dillons

the explorer,

оп

Fina Konne

the

the

be the

не

He said if he attempts a pole to pole fight around the world.

probably would use an LB-30 con- verted craft that was an early version of the B-24. He said the longest part of

flight would crossing of

of the South Pole and would be made from New Zealand to the tip of South America. The total distance on that leg would be about the same as the 5,300-milo.Might from Hono- Ilu to New York.-United Press

Crisis

ARABS SAID

TO BE ON THE MOVE

Tel-Aviv, Mar. 16.—A crisis, with possible mili- tary implications, was to. day developing on the Central Palestine front. Israeli Foreign Office sources said they had in formation that Arab Legion forces were taking over frontline positions in the Iraqi-held "triangle."

sources,

According to theso this was "n violation of prin- ciple" of the Palestine truce as TransJertion is deriving guns

her forces at the time when should be at a standstill."

A spokesman sald Israel had protested to Dr Ralph Bunche, the Acting Mediator, against the taking over of the Iraqi-held triangle in Central Palestine by Transjordanian forces.

was

The spokesman said the protest was based on the contention it a truce violation for one sovereign State to take over from

was It another.

understood Lieutenant-Colonel Abdullah El Tel, the Arab, com- mander in Jerusalem, had off- clally informed the Israelio of the handing-over of the triangle.

fro that

CATTLE RAIDS

sald An Israeli spokesman here tonight that if Arab cattle raids into Israeli territory con tinued on the Central Palestine Israel would be forced front, to take action.

The

spokesman would not.

that confirm or deny reports Israeli troops were moving to

Ho wards the Central front.

recalled that protests had been made several weeks ago to the about the United Nations

the situation an "Intolerable" central front, where there is neck of Arab-held territory only 12 miles from the Mediter

Fanced,

any foundation i. The five

that the Soviet-Iranian treaty of were "without Western Union countries, Britain. France, Bel- 1921 should be scrapped and the and the product of pure inven

should tion.". gium Holland and Luxembourg. declaration that Iran set up a

master defence plan cast Its lot with the West by that called for all of them to making a military alliance with

the United States. as fast as possible and ask the United States to pro- vide additional weapons.

Local newspapers had pub Harold MacMillan, Conservativo told

banner. headlines Hlabed under Parliament. Member of the House of Commons that the

unconfirmed reports of alleged disorders in Yugoslavia and in might come hour of decision in July. He said if the world

the Trieste Zone under Yugo-

administration." Blay that deadline there

Yugoslav newspapers renching. may be peace for six or seven

Trieste gave

no facta on the and sald The Minister of State, Mr Mr. McNeil further sald that alleged disturbances, officer was refused tree admis- Hector McNeil, charged in the the three ex-enemy countries that "the Cominform campalga counter-revolutionary of Commons House sion to a movie.

that Rumania, Bulgaria and Hun-supports

elements." Rumania,

report Bulgaria and Hungary

gary-declined

of Trieste were The people were violating the military and their

"on the troops strength re- other clauses of the peace trea- pretext that the peace treaties expecting major developments and ties with

the

offald down that such requests soon. nequiescence Russions. Ho sald that should be made by three Allied

SECURITY MEASURE built heads Rumania and Bulgaria

of mission acting in

Police last night intervened to their pece armies larger than

concert."

Reports reaching Rome to break up an unauthorised de- He added, treaties allow and Hungary is

"In such circum-night said security precautions monstration against the Atlantic of its planning an expansion

They were stoned by over the treaty limits stances His Majesty's govern had been "considerably streng Pact.

ment are entitled to conclude army

thened along the istrinn const, several hundred workers. the He added that the three satel- that

ex-enemy Kovern-

Police then fred machine-guns up-ments. in collusion with the opposite the island of Brion. lites suppressed political

Travellers reaching... Trieste, position and religious liberty in government of the USSR are from Southern Istria said secu-in the air and used tear gas a "totalitarian plan to establish not Implementing military

of the peace treaties rity had been tightened all along against the nob. In the meice, 15 persons of clauses

He said the United States and the 30-kilometres stretch of the reports suid, sann

tried to arranges from Poln, north to the were injured, among them the Lee Canal. None claimed to Commander of the Carabinieri, Britain meetings with Russia to discuss have seen Marsha! Tito of Yugo- Four were arrested, the frealy violations, but the

thestavin, who had previously been The executive committee of

the General Confederation

Oficials of the United Nations Communist- These reports also said troops Labour, which is

Saigon, Mar. 16. Indo-here were aware of the delicacy along Yugoslavia's comino dominated, sued a "manifesto

official frontier with the Free Territory to the nation" declaring that the Chinese Nationalists attacked # of the position. One

would expose Pact

French army convoy north of said: "All possible steps are had been replaced in part by

of the agents

Secret State enormous dangers, not to defend Tonkin and 22 persons were in- being taken to avert a clash."

national Police.

to serve Jured and nine trucks destroyed, Among these precautions, he interest but

In- it was umounced today..

said, were observer teams who foreign BULGARIAN DENIAL The reports alleged this was imperialistic and

The French

announcement made a closer check on military to prevent further desertions to terests."

A strict censor- The manifesto continued: "We said that most of the casualties movements. 10.-The Sofia, Mar.

the

Zone, Anglo-American

'were Indo-Chinese.-Associated ship is being maintained on tho Karian hew! agency

Press, tonight which they stated had recently want peace with everybody. We

subject-Reuter. that it Was

want war with nobody, There- announced thorised "categorically" to deny The Home newspaper, 11 Mes-fore we wish that Italy does not 1odny reported that adhere to any military coalition, reports of troop concentrations saggero,

adhere to the Bulgaria's frontlers with mysterious, planes, on nightly that it does not Greece and Yugoslavia.

flights over the Modena ares. Allantie Pact and we proposed a phet of permanent believed to be dropping Instead The agency sold that the re- were parts, which had appeared in war materials by parachute.-peace. for all countries without

foreign

exception."-Associated Press. newspapers, Reuter.

~The theatre watchman (~-was reported in serious condition in hospital.

On

the Burmese Damage to equipment was Government promised full estimated at about

100,000,000 amnesty if the Karens would lay Gold Yoan.-Associated Press.

EDITORIAL

T

the Communist monopoly thought."

3. tran supper back at the the statement Russians with

The 1949-50. Estimates

to

10

HE Financial Secretary's detalled, bat lucid report on the 1949-50 Budget made to the Legislative Council yesterday clears up a number of doubts originally raised when the abstrael of expenditure was published earlier this week. Nevertheless, the overall pictuve ns presented by Mr Follows Is a little disquieting. It has been necessary raise indirect taxation in order halance the budget, and also to include in revenue, non-recurrent items such as the $16,000,000 gift by the Imperial Government in help cover war Тончен, and $2,131,480 of Colonial Development and Welfare grants, Against this It is pointed out that $12 million dollars are being absorbed from current revenue which normally would be financed from loans. The Colony faces the need of meeting so-called abnormal expenditure, largely caused by defence and security,, requirements, and this is blamed for the heavily increased budget. But what is considered abnormal this year, many well become an inevitable recurrent gure and It is such a prospect that clouds the future financial position of the Colony. The truth is. Hongkong cannot really afford a budget of $180,000,000 and Il·la obvious that, among other things, a con- siderable amount of pruning in personal emoluments is required if expenditure is to be brought within Hongkong's paying ability. The public will echo the hope expressed yesterday by the Financial Secretary that the efficiency expert who the Colony will be able to Is now in indicate whether the conduct of a public business really requires a pay-roll of nearly $74,000,000. We imagine his answer will be a very firm negative, and He will have performed something of Tasting value to Hongkong if he can

CAR

not

also show how substantial savings in this direction

be made without sacrificing the efielency of that public service. The additional Indirect taxation which Government seeks to impose in order to mlince the budget will not seriously distress anybody, although the anticipated. revenue therefrom--$1,600,- 000 is somewhat disappointing. There will be general satisfaction if the manu- facturers of nerated waters adopt the hint

and thrown out by Mr Follows refrain from passing the extra tax on table waters

to the consumer-a unbearable hardship. Defence and security in the keynote of the budget, observed the Financial Secretary yester day, and although it is difficult to accu- rately assess just how much of the Estimates is devoted to these considera. tions, it is obvious they represent an Important part of the additional burdens which the exchequer has to bear in the coming financial year. Something in the region of $26 million dollars appears to be earmarked for defence and security, with the warning that this is only the heavier and there will be beginning

"This can commitments in the future.

Insurance," be regarded as a form of says officialdom, which is probably the most consoling way of looking at such an expenditure, but it cannot be said that the premiums are light. However, if it nchloves the object of maintaining the security of Hongkong, the Investment is There Aro placed beyond criticism,

which other aspects of the Estimates call for further examination and analysis, Financial but in the meantime the Secretary la congratuinted on performing

most difficult task in a courageous

mantier.

Soviet

representative refused to

attend. He said the United reported to be on Brioni. States and Britain then alone asked the three Soviet Salelli tes about their armed strength and cach declined to repoel United Press.

DN

certain

But

nil-

been aumerous.

Italy

Local Irishmen Observe St Patrick's

Day At Cenotaph Ceremony

St Patrick's Day was ob- served by the Hongkong so. ciety this morning with short, but impressive cere- mony at the Cenotaph.

At 11 o'clock, the President (Mr D.J.S. Crozier), accom- panied by members of the Coni- mitteo bald wreath at the memorial in memory of Irish- world died in both men who wars.

For the occasion the cross of នរ Patrick was flown from the Cenotaph flagstaff,

The Society's wreath took the laurel harp form of a green with golden strings and a bunch of red poppies at the top comer. Among those present were the Vice-Presidents, Surg-Capt. T.

N.

D'Arcy, RN and Mr F. G. Maunder; committee members, the Hon J. P. Fehily, OBE, Hon J. B. Griin, KC, Mossra W. Le Bart Sparrow, E. Terry R. E. Farrell, J. C. M. Grenham, B. Sheehan, J. D. P. Byrne, F. Shanks (hon. treasurer) and Denis G. Sherriff (hon, secro- tary).

Alco present were Mr G.P. Murphy, Mr M.P. Keyes, Capt.

of

Meraghan, Sar Insp. of Police guests will receive sprigs at T. Caalunan, Mr V. O'Gorman Shamrock.

and several ladies

The guest of honour will be the

Governor, Sir Alexander This evening a dinner-dance Grantham. will be held by the St Patrick's The ground floor of the hotel Society in the Hongkong Hotel, as well as Gripps have been decorated for the The function will be preceded specially party, and all occasion. by a cocktali

25,000 Bunches Of Shamrock Flown To New York

Limerick: Eire, Mar. 16-Carrying 25.000 bunchies of shamrock, a bag of peat and gallons of water (not whiskey) from the River Shannon for St Patrick's Day celebrations in the United States, the American Overstas' Line's flagship, Eire, left Shannon Airport today for New York.

For some days the American Overseas Alrilne has been Ballimore, Chicago. carrying Irish emblems to Boston, Los Angeles and other United States elites for tomorrow's celebrations.

The biggest consignment was 2,000 shamrock button Hotel holes for the opening of the $20,000,000 Shamrock

Техце at llouston,

Glass-mounted shamrock plaques designed in Ireland are also going to Houston.

Other emblems being sent Includo shillelaghs, black- thorn sticks, recordings of Irtalı jigs and airs, and gifts for the Mayors of Boston and New York and other elvía heads. -Reuter.

A

Convoy Attacked

According to reliable sources in Tel-Aviv, Israel told Dr Bunche that it would be unable to recognise "any -legal-cons follow sequences which might such a truce violation."

Reports today said 30 head of cattle were "rustied" in a foray last night by Arabs "whose led Into the Arab tracks triangle."

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