For the Proprietor of '
HONGKONG TELEGRAPIY
For and on Dukalf of
SOUTH CHINA MORNING POST, LZIW.
Printer"25) Publishes
The
Today's weather; Light Southeasterly winds. scattered showers,
Fair, a fow
Noon Observailona: Barometris
1009.7 mbs.. 20.42 in. Temperature, 845 deg P. Dow point, 78 deg. F. Kelative humidity, 82 %. Wind direction, BBE. Wind forco, 3 knota.
11.20 p.m.
Low water: 3 in. at 5.05 p.m. Iligh water: 4. ft. 0 in. st
Hongkong Telegraph
VOL. IV NÒ. 199
EVE OF DOLLAR
TALKS:
Fear Of Split Into 3 Blocs
London, Aug. 23,-High British officials were saying privately today that failure to solve Britain's dollar crisis at the Washington con- ference might split the world economically into three camps -a dollar area led by the United States, a sterling bloc led by Britain and a rouble' group led by Russia.
On the eve of the Washington conference, there were also increasing signs that the British delegation to the Washington conference would count on political arguments rather than economic ones to win some kind of new "solution" for the present crisis.
Arms Aid
Proposal Approved
The threat of a three-way economic split of the world, high British officials were anying, would create unforc- scenble political
conse-
quences in a world that; generally is split politically between East and West. The possible effects of such
U
result would drastically change efforts to shape the future of international rela-
Meanwhile, preparations for the Washington conterence were peeded up, with the following developments:
Washington, Aug. 28.tions. The Combined Senate Com- mittee on Foreign Relations and Armed Services today approved US$239,000,000 for arms aid to Greece, Turkey, Iran, Korea and the Philip pines.
1. Final arrangements for the Sir Stafford Cripps, and the Chancellor of the Exchequer, Foreign Secretary, Mr Ernest The Committees delayed unta Bevin, to leave here on August Infer this week a decision as 31 were completed
2. Mr Bevin conferred with to how much military assistance Shail be given
to European the United States Ambassador, who also members of the Atlantic Pact Mr Lewis Douglas,
Attend the Washington under resident Truman's arms will
talks.
3. The British Cabinet Connally
of the meet at 10 Downing Street on Monday to give Sir Stafford and
will
nid program Tom
Senator (Democrat), Chairman. Foreign Relations Committee, Mr Bevin final approval of the Announced that the combined groups approved $211,370.000 for Greece and Turkey, and $27
640,000 for Iran, Korea and the Philippines.
Similar amounts have been approved previously by the House, which cut in half the 31,160,000,000 asked by the Pre- sident for European members of the Atlantie alliance,
Senator Connally told repor ters that the Commultice also approved
the
EX-PREMIERS
WEDNESDAY, AUGUST 24, 1949.
MEET
AT STRASBOURG
Hopeful Opening Of Conference
On
Indonesia
The Hague, Aug. 23.The Dutch Prime Minis- ter, Mr Willem Drees, today called for "speedy, reali- sation of a sovereign Indonesian government com- posed of Republican and Federalist factions,
Dr Drees* statement idea of Indonesia's own sover- served as a hopeful opening elgnly now demands speedy
realisation."
of the
con-
He did not specify what sort of relationship the Netherlands hoped to maintain with the 1s lands after the transfer, but he
Dine
At the
P.G.
بل
For
Reservations
Tel: 27880
Price 20 Cents
DISTORTED REPORTS
PUBLISHED IN WHITE PAPER Serious Charge Made By Kan Chieh - hou
Mr Winston Churchill (left) and M. Paul Henrl Spaak, of Belgium, Preal- dent of Council of Europe, chat during the innugural. meeting of the body in Strasbourg. (AP Picture).
Australian Deportation Methods Denounced
Washington, Aug. 23.-The Chinese Nationalist Govern- ment today charged the United States with publishing distorted reports of the Nationalist efforts to negotiate a neutrality agree- mont with Russia which could have halted the Communist drive in China.
The charge was made in a statement issued here by Dr Kan Chich-hou, Dr Kun also personal representative of Acting President Li Tsung-jen. asserted that Stalin personally ordered an all-out Communist drive. in China in 1948 because he was "furious" at the refusal of Generalissimo Chiang Kai-shek to visit Moscow and arrange a deal which would have eliminated American influence in China.
Chiang Mapping Counter Stroke
Dr Kan said the State States White Paper lied in this
respect. Department's recently pub- Dr Kan said the actual truth lished White Paper on China was that when he visited Dr statement gave a completely erroneous Stuart to ask for a pleture of Chinese efforts to of American support, negolia- tions for a deal with Kussia strike a neutrality bargain had been broken off because of with Russia and the subse-China's refusal to abandon her quont Nationalist appeal for traditional friendship with the
United States. a statement of United States support in the war against Communism.
of
Dr
Les fr
admitted that earlier he ho sought Dr Stuart's view on the feasibility of No- The import
Kan's tionalist negotiations with Rus- statement was that the United | sia as a "delaying" measure, States had published reports and Dr Stuart had no objec- which gave the erroneous Im-tion." pression that the Nationalists He denied, however, that this was coupled with the plea for Canton, Aug.
were trying to play Russia and
United States off against statement of American Generalissimo Chiang Kai-the
cach other.
port.. shek conferred with other Dr Kan noted that the White Dr Kan said: "I am compelled members of the Supreme Paper reported that the to point out at the outoot that if
Council Emergency
this Chinese Nationalist represanta- the three conditions laid down by
24.
With
for the round-table ference to determine when British "brief."
and how the Dutch authori- 4. The
Aid chief,
warned: parantes her ties should end their 350-
"If the conference
already Sydney, Aug. 23. The once fails, consequences are in store consult high year rule this evening to
Leighton Stuari In
agreed to, there would Nanking been British and Amerlean officials. prosperous East Indies.
for us whose nature cannot but Sydney Morning Herald, inurning to map a National-live told American Ambassador the Soviet Union had ist counter-offensive.
the No have been no need to appeal to carly this year that There is a big row developing Same 500 delegates,
All each right-minded person an editorial today, described repre-
The Generalissimo *
tionalists, had
out a the American Government for worked within Marshall Aid countriessenting Dulch, Indonesian "Re- with deep concern."
the Government's methods scheduled to meet later with
"tentative three-point draft statement of support to streng- over the splitting of next year's publican and Indoneslun Feder- Ur Drees said the Netherlands in regard to deporting Asia- top-ranking generals and
then the Chinese hand ini wilh
the Soviet Britain
had not granted "unwilling ac- during appropriation,
allst leaders, assembled
to Implement the agreement" wanting more,
the hottest day of the year in quiescence to the transfer, but ties as "wrong, blundering, strategists
Unton in return for which the negotiating on them. Further plan of attack to consolidate ANGRY SHOUTING
looked upon it as a "gradually inhumane and degrading.". The Hague's historie Ridderznol
kalns already made on the Russians would call off the more, if Acting President Id had actually intended to eliminate- Communist drive in China. ripened realisation." He added, for the series of opening The conference comes in
American Influence from China, Central Hunan front and at howover: "In the opinion of
"It 19
THREE POINTS shouting be speeches.
The paper added: 'kist
he would not have kept, the of angy amendments by tween the two great
many in the Netherlands, English- In two months of talks, dele-
the disgrace to the Commonwealth Lanchow, in Northwest China,
The three points in the agree-American Ambassador informed He is also scheduled to fly to interests of all concerned would that the Chinese Embassy the Northwest in u Senator Smith (Republienn) speaking countries. Already gates are expected to hammer
t few days, ment were listed as:
of such negotiations. The very 1. Strlet Chinese neutrality fact of making for a statement of pledging the United States to the sterling bloc has far closer out a constitution for Indonesia have been survived if a more should have to appeal for more. exert maximum efforts to pro-conomic ties with the routin ou arrange for he transfer of peaceful
gradual humane and reasonable treat and may also visit Southwest
Communist acti-in any future international con- support from the United States Chinn, where Car have the transition could vide the United Nations with blog than the dollar area. The Dutch
proved
flict. sovereighty
ment of Chinese ex-senmen ar-
demonstrates his recognition of possible."
rested nemed forces and to obtain an U.S. has still virtual economie "United States of Indonesia,"
deportation. it has been on the increase. pending
2. Elimination, of Nationalist oficials are in
American the importance of American in- universal agreement for
reflect on our HATTA'S SPEECH re-canctions against Russia, possibly by the end of this year.
The methods
high spirits over the victories Induenco to as great an extent quence in China." gulation and reduction of arma- whereas Britain is trying te To the applause of delegates, Dr Mohammed Hatta, Indone-status as a civilised community scored by General 1'id Chung-as possible in China. ments-Reuter,
(Continued on Page 5) Dr. Drees declared: "The sound sian Republican Premier, open-Also, in the present state of hai in Central Hunan few days 3. Establishment of a basla
cd his address by declaring: feeling in the East, they are
Dr ago, as late front reports in- of real co-operation between provocative."dicated that the The Indonesian peoples have dangerously
Nationalists China and Russie, considered themselves us being Associated Press.
there are continuing to move Dr Stuart reported that the then President, began as curly Chinese Nationalist represen→ talive then asked for a "state-25 1915 his attempts to make a deal with Russin, which would forces west ment of American support."
the
EDITORIAL
Middle East Consolidation
THE simultaneous presence of several
Arab leaders in London is further evidence of the consolidation which has been taking place in the Middle East since the Arab-Israeli armistice. The Foreign
Oflice has been discreetly silent on the extent and content of the discussions which have been taking place, but it secma certain that Britain ia sirengthening old alliances and clarifying policy, with a view to restoring "normaley" throughout the Middle East. A final settlement of the Palestine question is still awaited, but the Arab States seem resigned to the existence of Israel, and the present dead- lock may, be broken when the United Nations conelllation commission reports to the General · Assembly next month. The commission has not had an easy task, and has not been inclined to rush things→→ a polley which seems to have been vindicated by the lessening of tension in the Middleast, and by the apparent acceptance by both sides of the need for a compromise solution. One of the main points of dispute remains the rehabilita- tlon of the Arab refugees, but some progress is being made towards a solution of this problem. Many of the refugeca, indeed, are not waiting for official ogree- ment and are unobtrusively making their own way back to their homes: there are now reported to be, more than 150,000 Arabs in Israel....... The future of Jerusalem is another 'more point, but it now seems Liikely that Israel will agrès to its partition, with Internationally guaranteed safe. guards for the Holy Places. It was this growing willingness to compromise' which caused the United Nations recently to give formal recognition to. the Arab.
Israeli armistice. This recognition had the effect of lifting the 'embargo on arma supplies to Middle Eastern countries. The Syrian coup d'etat
least one gave at Ixrucll diplomat an. opportunity to criticise this decision, on the grounds that with such anarchistic tactics in their own countries, the Arab States would not
hesitate to use any arms they might get for aggression. Such allegations contri- bute title to the understanding which is so necessary for Middle Eastern stability, The
arms embargo worked mainly in Israel's favour. Britain discontinued her shipments of arms to the Arab countries- whose armics rely almost entirely on British equipment-despite her treaties with those countries. But Israel proved able to boy, as much equipment as ske wanted from sympathisers in other countries. Some Arab States, without thie icsources of Israel, have been unable even to buy enough arms to ensure Internal, Inw and order. When the United Nations embargo was lifted Britain undertook to observo, a "moral embargo" and supply, only those arms and materials which were essential to Internal segurlty, and not sülted to the needs of an aggressor-small arms and ammunition. Britain has made It clear that she has no Intention of encouraginger allowing-an arms raco In the Middle East, and Israeli complaints at the lifting of the embargo are un Justified. The Governments of the various Arab. States, must have certain arms ta preserve order among their sometimes unruly peoples-and Israel might well benefit from a decision which assures more stable conditions in the lands around' her borders.
and
more
sovereign since the Indone-
sian independence proclamation
(August 17, 1945)."
He said the
pared to becomeublje was pre-
but, nation,
The
forward.
while the 40th
The Chinese Embassy is asic- temmunist gains were ro elimination of American
the In-
NEUTRALITY PLEDGE
Kon disclosed
that Generallssimo Chlung Kai-shek,
EIGHT MORE ARRESTS
The Communist Canberra, Aug. 23-Austru- of the Canton-Hankow railway
The State Department ob-halt the Chinese Communists 0 component lian authorltice have seized were reported retreating north-served that it was incredible" in their territorial expansion."
Mel- cast Chinese in slate with the Federalists rather eight more
towards Hslangbring that the Nationalists "should He said Chiang broke off the and are East of the rallway, Nationalist ceck a United States statement sisted that one condillon would efforts when the Russians in- than to establish itself as Д bourne and Adelaide Sovereign
he holding them together with 11 troops who recaptured Anjen
Chinese pledge of neutrall- continued
Republic
previously arrested for deporta- were reported to have encircled indicating support for the pur-ba
pose of strengthening their posi- wants Bil attributes of tion as prohibited immigrants. the Communist 45th Army, Bon, while at the same time arty in any future war. its sovereignty, such
However, in 1940 Chlang told да the
Army was al-ranging a tentative agreement Russia that he was ready to re- army and pubile relations, to
to go to its rescue. with Russia calling for
and the Soviet invited consider, be transferred to the Interim ing the Australian Government
him to talk it over. Chiang told to give "humane treatment" to
southern Kovernment,"
Klangs, fluence in China."
Russla that ho was unable to where Lungnan faced capture Dr Hatta zald he understood them, a Chinese official sold to ported in
WHITE PAPER LIE leave China, transfer of sovereignty
to Dr. would day.
while fighting occurred to the not be completely unconditional
Nationalist Dr Kan, who disclosed that he Kan, who added: Police arrested another eight east of the city. and recommended union of the Chinese In Melbourne and reinforcements are being rushed was the Nationalist emissary so furious that he gave Instruc Netherlands and the
Adelaide in the past 24 hours. to area from northern who visited Ambassador Stuart, tions to all Savlet diplomalle and
Consulor amces in sald
The flotly that
Chign to Indonesian government in con- They
are being held in local Kwanglung.-United Press.
adopt a polley of non-co-opera- formity with the principles of
Trangements are
tion in their relations with the gools whille the Renville agreement.-United made to deport them.-Asso:
Chinese government,” elated Press.
Press,
now
PERE JUSTKASETELMANTE BANKROLL FLAMMUTUSTEENUS
STOP PRESS
Chiang Off To
Chungking
Canton, Aug 24.-Generalis simo Chiang Kai-shek left here
:
This
United
Nationalists Keep
RAF MERCY Up Shanghai Raids
FLIGHT
necoin
was
Efforts to smooth over the situation failed and, according to Dr Kan, it became altogether clear from conversations that what the Soviet Union had reni. ly wanted in the past three years 1Y0S u guarantee that China
Shanghai, Aug. 23.-Small groups of Nationalist would remain neutral in case planes have been staging minor raids on Communist-held Russia become involved in any Shanghai in recent wooks. The results of the raids cannot be disclosed due to consorship.
Bureau.
war.
GO-AHEAD SIGNAL Singapore, Aug. 23. - A
It was equally clear that, fol- by plane for Chungking this Royal Air Force surgeon und a An air raid relief corps, cover to wipe out the Nation-lowing the fallure in obtaining morning to confer with provin- nursing alster have been landed
neutrality agreement from_the clal leaders of the Northwest and by flying boat alongside the consisting of 22 squads and allst garrison on Talaha.
The official Communist New Chinese Government, the Rus- Southwest.
mobile Tho Emergency American tanker. 'Pecos, in seven
emergency China News Agency said the stars gave a go-ahead signal to Council meeting called
for mid-ocean about 250 miles from stations, has been organised Changshan 18hnds, in the Gulf the Chinese Communists with the tonight has been cancelled Singapore, to operate on a sca- by the Municipal Health of Chibli, scuth of Peiping and hope that a Chinese Communist- Reuter
man who was dangerously .
Tientsin, have been completely controlled China would give. REDS NEAR YUNNAN
Occupied and a garrison of 1,500 them this spinrantee. Rangoon,
The Chinese Communist press The ship's captain, It was re- Aug. 23. Air
donounced the attacks as Nationalists was wiped out.
"Faced with the alternative travellers arriving here from ported here tonight, lind radioed has
The Communist Headquarters of Communist aggression or a the Yunnanose city of Kun that the seaman was suffering "wanton" and as an indication
"desperation" in Peiping said that
Toat 100,000
Fold De Kan, treaty Nationalists have been put out
President Li ordered mint report that Chinese Com-rom neule appendlellls and ap of the last-hour
of the Nationalists.
The Communists, meanwhile, of action and 70 eltios were ma munist forces are approaching pealed for a morey fight
American the frontier province of Yun-
in The RAF decided that it have seized Talsha Island and occupied July. The local Ambassador. Dr Leighton Bluart,
said that seven nau, but have not yet entered would be safer to operate on two others on the fringe of the press said
more the matter
offering the the provinco.
of alleged board the 10,000-ton tanker, and Chushan group, along the const secret organisations
Soviet Union a neutrality treaty that the Yun They Bald
condition that the Com- on tho the doctor and the nurse were south of Shanghai at the mouth Nationalist underground nanese authorities.
been uncovered, munist aggression be halted. are deter flown to a rendezvous near of the Yangtse fiver, to combat kera have: mined to keep out the Com-Mangkal faland, 150 miles north the Nationalist shipping block Many documents
and radio DI BAW Dr Stuart and also tho munlets and have increased east of Singapore.
recolvers and transmittere wero | Military and Naval nitaches of border security measured, man
Reports said the Rods dis-seized, and the agents rounded the American Embassy. In view Associated Prom
The Pecos is due In Singapore palchred several hundred speed-up now face trial, according to of no possibility of immediate
bdate under heavy artillery thiess reports-United Prezz **** (Cobilnuga on Page 5)
JaunciemaCon VT FANTASY MALTACs | tomorrow.-Router.
wor
10 discuss with tho