VOL. IV NO. 80

For the Proprietra of

HONGKONG TELEORAPIL

For and on tehtuff of

SOUTH CHINA BRUMAIRO PÜST, LTD.

Prinkets,and Publisher

The

Today's weather: Moderate, locally fresh, East winds. cloudy.

Noon Observailons: Barometris pressure, 1020.4 mba, 30.13 in. Temperature, $3.8 deg. F. Dew point, 57 dog. F. Relativa humidity. 79. Wind direction, East Wind force, 18 knots,

High water: 6 ft 7 in. at 1.36 p.m. Low water: 1 ft. 7 in. at 11.54 p..

Hongkong Telegraph.

WEDNESDAY, APRIL 6, 1949.

DISASTROUS FIRE AT

Karens Agree To Surrender

FIGHTING ENDS

AT INSEIN

Rangoon. Apr. 5.-Saw Ba

U Gyi. President of the fighting Karen tribesmen who have been in revolt against

Government the since the end of January, went to Rungoon under protretive escort today to sign surrender terms, a pro- Government report stated.

A cease-fire was ordered at Inseln. Karen-held railway town 10 miles north of tangoon, after Saw Ba U Gyi's uncondi tlonat surrender offer, the re- port added. The tribesmen took over the town on February 2 and have fought off repeated all-out Government attacks.

Last month, the Government offered in amnesty to the Karen-Burma's bargest ma jority-If they stopped Bghting by April 1.

the

Burmese

Volunteer Organisation.

The

1

TAIKOKTSUI

Over 50 Buildings Destroyed

SQUATTERS' HUTS AND SMALL FACTORIES

Over 50 structures, including squatters' huts and small wooden factories were destroyed today in a disastrous carly morning blaze at Taikoktsui, in the vicinity of the Cosmo- politan Docks,

One Chinese was slightly injured and was sent to the Kowloon Hospital, but there was no loss of life.

The fire was in a confined area, densely populated with squat- ters, and with a profusion of miscellaneous factories containing rubber, hydrochloric acid, and printing ink all of which contributed to the rapidity with which the flames spread.

Scattered

et

Intervals

nature.

A

The Premier said he refused

Shortly after 5.30 o'clock fire to "acquiesce to political

broke out near the Tong Mei dacoits who attempt to wrest | Market and

SODN became a power by force."-Reuter.

which could be raging inferno seen for miles around.

I

und

Dine:'

At the

For

P.G.

Reservations

Price 20 Cents

Tel: 27880

RUSSIANS MASSING TROOPS

IN POLAND May Be Preparing To Attack West

Washington, Apr. 5. Two recently escaped Polish officials said today that Russia has massed more than 300,000 troops in Poland for an attack on the West "which may come this year."" The two Poles were presented at a press conference by the former Vice- Premier, Stanislaw Mikolajczyk. They said that Russia has been intensifying military preparations in Poland in the past six months.

They said that the Soviet troops in Poland six months ago totalled 300,000 and have been "increased considerably" since.

10,000

Chinese Reds

Threaten

(Axis Indo-China

Mildred E. Sally) Gillars walks from Federal district court in Washington after being sentenced to. 10 to 30 years in prison for

Judge treason. Edward M. Curran also fined her $10,000-AP Picture.

CHINA PEACE

Muss evacuation Was B001 Bnd being Lung machinery shop,

men, women In a nationwide broadcast to

children rushing to and fro with night, the

Prime tween the factories were timber while at the far end the Yan under way,

amid much Minister, Thakin Nu, promised yards and places for the storage Kee metal works factory that elections would be held of lime and other goods of a the Hongkong Shipyard Limited their belongings

small were threatened with flanes for excitement, while fakis worked dangerous

retrieve printing feverishly to within a month it the incur

complicly several hourement, immediately destroyed. rections stopped

alv. cracker shop was

Fanned by a strong easterly machinery and drums of wood

oil. carried Govern- Besides the Karens,

The

Clogs scattered here and there area involved comprised wind the flames were ment troops

from are fighting

structure to structure-with

of the loud crackling sounds emanating were clear indications alang Boundary Communists, the Mons tribes about 400 feet by 600 feet and

(Continued on Page 5) men and

as the Police rushed into door- "White Band" was oltuated members of the People's Street, between the Tang Mei

make sure that there Market and

WAVE to the Cosmopolitan wa

were no people about. Dockyard.

were ham- The Fire Brigade pered in their work by the fact of them that the lanes, some

too narrow very muddy, were for appilances to get to the front of the fire. Assisting the Brl CABINET CHANGES

Military fre BLAZE SPREADS

Kale were the Rangoon, April 5.- Lieut-

service General Ne Win, Commander-in-

Fir call for assistance was

which ran its hoses Chief of Burma's armed forces, received by the Mongkok Fire

despatched ap- the Hongkong Shipyard. Burma's Station which became yesterday

Divistonal-Oficer- Deputy Prime Minister, it was

pliances santier“

BOY SCOUTS ASSIST-'- V. C. Seymour and the "third oficially announced.

Boy Scouts Several Chinese He will also be in charge of alarin," indleating that the out- Defence and Home Affairs. The break was severe and spread-Ir. uniform also helped, while a Portfolio of Foreign Allairs ing, was sent through to the gang of about twelve fukis play- passes into the hands of another Terminus Fire Station, Kow-led fire extinguishers onto an These com- new Cabinet Minister, Supreme tuon, Unier Divisional Omcer acid factory as the flames came

appliance was steadily towards it. Court Judge Lee Maung, who is it. Tiplody, n

efforts pre- bined fire fighting charge of Judicial sent to the scene of the fire.

the centre of Close to the

vented the blaze from develop- Rehabilitation. Health and Rural,

mure serious propor- Tacking into outbreak were the Kin Administration.

(Continued on Page 5) jmchinery factory and the Waltions,

also

EDITORIAL

and No. 2 Breftoal

Britain's Budget Pie Prospects

SIR Stafford Cripps presents his second

22

budget to the House of Commons today, and it can be expected to range, not only over the financial situation of the United Kingdom, but also over the economie outlook as described in the

Survey for

lately 1943 Economic published. The Chancellor of the Ex- chequer may well feel encouraged with the accuracy of his estimating for the

Last April he forecast past year.. surplus of £330 million, which is now likely to be £350 million; and which ex- penditure was £200 million, more than the anticipated,

surpassed revenue. estimate by £210 million. But while to the taxpayer at Home Rwell balanced budget represents good housekeeping, his chief interest. In Sir Stafford Cripps* House of Commons statement today will centre on whether or not there can be any lightening of the current taxation burdens. The prospects are not bright. It is reasonably certain that Sir Stafford will again cmphasise the necessity of combatting inflation, which

means res-

traint on the home demand for consumer- goods in order to maintain the export drive: allied to which is the process of reducing the nation's dependency on and of climinating the foreign ald balance of payments deficlt of last year. The Indications are that little relief is to be expected from any Increase in the national income. But for the Chancellor to announce that stringent measures are to be continued for another year will not bo enough. It will be for him and his colleagues In the Government, to secure their acceptance by the people. So he is that the evils of likely to reiterate Inflation, so far avoided with considerable success, can-continue to be kept off only

through

if the nation as a whole is ready to co- Both by operate with the Government. direct control and by keeping prices on essential. steady through subsidies

goods the Government is doing its part. Further, it is saving by the budget surplus. The call, therefore, is likely to be renewed for employers and workers to hold back their claims, reasonable though they might be in cauler times, for higher wages, prices and dividends. And there is almost certain to be another call to the people to save more, though it must be admitted that recent experience does to the not encourage confidence as response to gny such requeal. It will be observe whether the to interesting

pressure will yield to Government recently applied by the Trades Union. Council and other quarters to lighten the cost of Uving by reducing, for instance, the purchase, tax on a wide range of essential and near-essential goods, Tho prospects are that Sir Stafford Cripps will attempt to reach a compromise, før It is supremely an economic argument, and economic arguments are against reductions. Closely allled to the financial and economic aspects of today's Budget is the intensifention of the dollar export drive. Up to now progress in this lifeline of Britain's prosperity, though encouraging, has not fulfilled expectations, and it is now admitted that. exports are harder to make and that a new effort is the almost assuredly riceded. This, Government will request, but that It be heeded by the men and women upon whom the Government depends, is probably 'contingent on whether they are personally

encouraged through the medium of taxa... tion concessions.

|

TALKS DEADLOCKED-

Nanking, Apr. 6.-The peace negotiations hetween the Communists and Nationalists, which started yesterday, were deadlocked to- day after the Reds handed out a new demand that a satisfactory solution of the student- soldier clash in Nanking on Friday must be reached before any talks would be resumed.

The official Central Daily News, reporting on the negotiations, said that Liu Chung-hua, one of the four members of the government delegation who made a sudden return to Nanking late yester- day, reported to Premier Ho Ying-chin that the Communists broke off the talks and refused to meet the government peace delegates again until the Nanking government could announce a settle- ment, in which leaders of the soldiers responsible for the clash are properly punished.

Hanoi, Apr. 5. Some 10,000 uniformed and well- armed Chinese Communists arc massed on the northern frontier of Indo-China await- ing the order to attack a highly French positions, qualified French source said yesterday.

on

These Communist forces in- thio clude 10 battalions

on Lookay-Hoangsuphi sector

and the Northwestern frontier

15 battalions on the Northeastern border between Langson and Moncay, the scene of a recent the "feeling out" assault by Chinese,

are

This source revealed that the French High Command expects astrong strike" at any mo ment in the Northeastern section

the Chinese where

more numerous and where they can count on the support of Com- munist cells among the local population.

All these Chinese troops are under the command of Com- munist General Tchou Kla-pt, Commander of the Yunnan and Kwangsi regions, occording to this some source.

Two

wo Chinese Communist re- giments--the 20th

thu and

in the 21st-are concentrated region of Moncay, according to intelligence reports. Recent at- tacks on Monday were led by two battalions from the 20th regiment said to be commanded by Colonel Sam Ong Dhow.

This source sold the Chinese Communist troops were wearing khalel and helmets bearing a red slar.

TONKIN SITUATION

The clash occurred on the day | There was no confirmation of that the *peace talks opened the purpose of their fight back when students marching towards to Nanking, but it was be- tho Presidential office encoun- lieved elther for consultation on

The situation of French forces tered

of deactivated certain important phases of the in Tonkin the Northern section a group soldiers. A fight broke out when negotiations or else brought of Indo-Chin-was described the soldiers were angered by the possible new Communist de-"unfavourable" because of the

manda students' chanting of Communist

lack of manpower. This has songs and slogans dancing in the streets. One student was fatally return of the four members the defensive against attacks by injured and more than 60 others was not a pre-arranged plan." the rebel Việt Minh Judo

suffered various degrees of in-

Jury.

A responsible source said the forced French troops to go on

Chinese Nationalist-forces.

NO INKLING

This source said that unless Premier Ho Ying-chin was re-

There was no inkling of the an "urgent remedy" was applied, ported to have cabled General subject discussed when the Pre the position of these French Chang Chih-chung, chairman of mier called on the Acting Prusi troops could become "perilous."

said that French cources the delegation, for a full report dent.

of the Red demand regarding This development occurred al-week ago the commander the clash. There

was no in- mot an hour after the Chinese the Chinese Nationalist Ninth formation here on what kind of Communist radio let loose an regiment stationed at Tongking, a settlement the Reds were other blast at

a Chinese town facing Moneny, the Nankingent a message to French of demanding regarding the sub-government, In which was in-

cluded Chang

cinis admitting he was unable Chih-chung, chairman of the peace delegato prevent Communists tion now in Peiping. The broad passing Wirough his lines to at-

French Informed cast said, "The Nanking Linck the French. Tsung-Jen-Ho Ying-chin govern-

Ject,

п

the Chinese

from

military

DELEGATES RETURN Four members of the govern ment peace delegation returned ment, including Its Chang Chih-sources predict a joint assault Communista unexpectedly from Pelping to

chung delegation, is essentially by

coupled with Nanking secretly late yesterday

the and Premier Ho Ying-chin mixed composition" following from the North

Viet Minh guerillas from two policiesStanding closer shortly after paid a call at the

to the Chiang

on French posts-Asso- Kal-shek war rear. residence of Acting President Li

criminal bloc and their master clated Press. Tsung-Jen.

American imperialism" on one All

pointed to some band and on the other "vaell- signs development of extreme Impor-lating its crossroads without a oficial clear direction. They want to tance but responsible

with both sides sources, approached for infor- have dealings

were and get along with both sides." mation, repiled that they

---United Press.. instructed not to talk.

One source, however, revealed retnured that one of the four was Liu Chung-hua, adviser to the delegation.

Girl Quads Born

Colombo, Apr. 5.-Quadruplets, all pris, were born to 23-year old Mrs A. W, Martin, wife of A labourer, in the Kandy Civil 1Tolbal today, according to tho Manchester, April, 5-John Ceylon Observer. The weights from Russell Scott, Governing Direc- of the children ranged The other three- mombers for and Chairman of the Man-two pounds 12 ounces to three

five were not identified, but

and Evening pounds werdchester Guardian

In good balloved to be secretaries of News, Limited, died yesterday. mother was reported the dolegation...”.

He was 60-Associated Press,- health-Reuter,

ounces.

The

One of the two nien, Stanisław Banczyk,,vice-choli- of the F'ollsh Peasant

Fewer People Dying

Geneva, Apr. 5.-- The United Nations World Health Organisa- tion today reported that deaths throughout the world reached 'a record low in 1947 and added that the 1948 figures will show another de- cline. It said that 'all

but

three Europepan countries which sub- mitted data had a lower death' rate in 1947 thần In the 1937-38 period.

The Netherlands had the lowest death rate in the world-only 8.1 per 1,000 in 1947,-United Press.

ELECTION

said he personally wit- DEFEAT FOR

War

mall Party, nessed large scale Soviet manoeuvres un the Baltic coast ຕະ recently, in which tanks planes participated.

Both Banczyk and his com- Wojcik.

Stanislaw

panion. secretary-general of the Prosani Party, were underground workers

LABOUR

in Poland throughout the last war Conservatives" Claim

and are well known for their intelligence activities on behalf of the West.

The

London, Apr. 5-Conser-

vative Party Headquarters Poles sald the Polish today claimed sweeping vic Army has been newly purgentories in the first round of "unreliables" and Increased numbers of Soviet commissars the County Council elec brought into its ranks. They Lions. said the Polish Air Force has been subjected to a particularly exclusive purge

and that, not only Soviet officers but also, Soviet soldiers are being in stalled there.

Army

Seven counties in England and Wales voted yesterday for new county governments, 14 were voting today and 41 other through counties will ballot the remainder of this week

A Tory spokesman sald Con- yesterday gains servative

for Mr pointed to a triumph

in Winston Churchill's Party the general Parliamentary elec tions next year.

WAR "NECESSARY" They said the Polish was accumulating medical sup- plies, buying them from Sweden und Switzerland, and that new

"It is impossible to separate barracks were being built, and

from the old ones rebuilt. They said that

1948, political the county elections

general elections because the since spring. commissars in the Polish Army same voting register is used,"

the soldiers have been telling

ere he said. that a war with the West "la necessary."-Asked if there was any indication when the re- portedly planned attack would be launched, the Poles said it was their feeling, and that could happen this year.

Banczyk and

Wojcik they escaped from Poland two two months ago and

!

LATEST TREND "Lālest returns showed the increased had

counties Conservatives their control in five it which they held before the elections but had not dislodged sald the Labourites from control of other Counties both arrived here located in Welsh industrial dis-

trlets. last week. They would not re- veal their route other than to indicate that they had passed United through Germany. Press..

of

results in six out of Final seven countles showed that the Conservatives won 95 additional seats while Labour lost six seali and other Parties lost 29 seats. Labour Party Headquarters reported earlier today that it.

London. Apr. 5.-Princess had suffered a not loss of 13

and Elizabeth

the Duke

seats.. The guests of Dr Edinburgh were

the Cheng Tien-hs),

Chinese Ambassador in London, at a dinner at the Embassy tonight. -Reuter.

Conservatives claimed Labour had a net loss of 18 Beals with the Conserva- compared

nct gain of 28 scats- Lives' United Press.

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