Adenauer And Heuss Disagree

Bonn, Sept. 14-Konrad Adenauer today wAR nominated Germany's first Chancellor kinos Hitler and immediately ran into dis- agreement with President Theodor 'Heues on naming a Cabinet

Informed quarters sald President Heuss told Gor- man-nakoelites ho did not regard the Fresidency av merely a Daurehead poal- Gion. Ile said he intended to exercise all the power Tanted him under the new Constllullon.

However, bis power lo Cabinet members was being disputed by Adenauer. House hunself kad named Adenauer only Inw hours before the difficulties began-United

»

Press

For the Poortstor el

HONGKONG TELEGRAPH.

For and on behalf of

SOUTHI CHINA MORNING POST, LIB.

The

Today's weziher: Light variablo or moderate westerly winds. Overoast with' Highs' rain.

· Noon Observations: Barometrio pressure, 1005.1 mb... 20.08 in. Temperature, 81,7 deg. F. Dew point. 77 deg. F. Relative humidity, 86%. Wind direction, calm. Wind forco, D. 'ilish water:" 6 ft 7 in at 2.43 km. (Friday), Low water; art. 7 in. at 12.05 p.m. (Friday).

Hongkong Telegraph

VOL. IV NO. 218

Street Wall

Puzzled

OF

THINKS FULL STORY

CRISIS TALKS NOT TOLD

New York, Sept. 14.-The Wall Street Journal and the Journal of Commerce today expressed wonder and puzzlement over the "deep satisfac- tion" expressed by the participants in the three- power financial talks in Washington, especially that of Britain's representatives, Mr Ernest Bevin and Sir Stafford Cripps..

mean

In their first editorin! | "Parts of the communique comments on the talks, both mean nothing or they may anything. So it would papers, which usually re-not be surprising it, as Bri- accurately public tain's situation came into ant opinion in New York's finan-even more crillcul state, the |cial district. speculated U.S. Congress and public should learn that some party of an

nect

DEVALUATION about undisclosed decisions obscurely worded document

RUMOURS

SPIKED

nt the conference.

of Commerce, The Journal [declaring that the official com- munique had an "oir of un- realism," said that "ince tho actual

the accomplishments of conference were rather meagre, this "catisfaction

reflect con London, Sept. 14.-British only one of two things-elther Treasury officials tonight to delegates became convinced denied reports that the that the British problem is not Pound would be devalued nearly as difficult as was the next week-end. They said general impression before tha there had been no change in conference, or they must know

about rescue more

operations

were really a promise of assia- lance the Administration rc- cord has

certainly not been free of such procedures."

Associated Press.

Resistance

Against

the Government's attitude now being mapped out than we Chinese Reds

The

EXPORT INDEX

Journal of

Shanghai, Sept. 14.

forces have Commerce Communist

towards devaluation since have been told thus far." Sir Stafford Cripps denied that the subject was under consideration last July.

One official said: "Just say the Treasury wearlly repeats its Darller denials that the Found will be devalued." United

Press.

MOTION WITHDRAWN Washington, Sept. 14.-South Afrien, in a surprise move, withdrew today her motion be fore the Gold Committee of the International Monetary Fund seeking permission to sell hail

market.

South Africa

raise the

question again before the Doard

of Governors during their pre-

sent annual meeting which ends

on Friday.

M. Camille

|

said the first point had been started an all-out campaign "quietly dispelled by the Inter-against the Nationalist national Monetary Fund in just

forces and one sentence," when the rund's underground

annual report abserved that the guerillas in Eastern China, "price Index of exported menu-it was officially announced Rictured goods In the Western here today. European countries is now about

210 percent of prewar compared Terming the Nationalist wor- with only 175 in the U.S."

The paper declared the "only fare in the rear of Communist way to restore Western European lines a "death" stand, the an- signed by Gen. competitive position nouncement, Loods to with U.S." producta the re Chen YI, Communist com-

to the dollar and rencies

well."

a currency

in

the "remnants" of the Nation-

THURSDAY, SEPTEMBER 15, 1949.

SECLUSION HAIR-DO

Greta Garbo's latest gume of hide-and-seek to avoid public recognition took the form of this rumpled hair- do at Ostin, Italy, the beach near Rome. Greta was In Rome to make a new film. Her hand-wagging_com- panion here is her traditionally unidentified escort.

(AP Picture).

Defence

Doubts

Of

Counsel

Veracity Witness

A suggestion that: a statomont made in his affidavit her gold production in a free ligament of the Western curmander in Eastorn China, told by T. O. Edwards, a witness called by the plaintiff, some instances, to the Found as the people to assist in crushing regarding a birthday party of Roberts in Shanghai in 1946 was a deliberate falschood was mado’by Mr.H. G. Sheldon, It concluded by, saying that niist forces by organising KC. loading Counsel for the defence, at the resumed American tariff cuts Economic militia to help the Red soldiers. hearing of the nine-lakh Shanghai Foreign exchange "Co-operation" ***Administration

transactions claim before Mr Justico Williams, Fuisno Gutt, Managing shortcuts or stockpiling sub- The announcement indirect- Director of the Fund, told re-sidies will be ineffective unlessly admitted the gravity of the Judge, at the Supreme Court this morning. Edwards was

realign-ituation, porters after today's meeting of there is

and salti the main cross-examined by Mr Sheldon, who is appearing with Mr the Gold Committee Bat Mr N. ment.”

purpose of the campaign was A. J. Clifford for the defendant, to "erminate banditry, con- solidate revolutionary order

Plaintiff is A. V. White, given to you by Bagien and and protect the

livelihood of of 3, College Road, Kowloon, not by Roberts, otherwise your who is represented by the story is correct.

Witness: No. It also appealed to Nation-Hon Leo d'Almada, KC, and ist elements to desert to the It said: "It may be that the Red lines. It was generally be Mr D. A. L. Wright. The de- The United States was not measures so far announced ure lieved hero that Nationalist fendant is F. C. Roberts, of expected to agree to any change not the full story of what is ac-guerillas were most active in 96, Robinson Road. Both in the prewar rate of $35 antually contemplated, and that North Anhwel, East' Cheklang ounce, however persuasive South British satisfaction Africa's arguments might be.—knowledge now

west of Shanghai, Shanghai. Xcuter.

United Press.

C. Havenga, the South African Finance Minister, had withdrawn

his motion.

NOT FULL STORY

This motion sought to allow The Wall Street Journal called the sale of half the gold produc- { the

conference

the people." communique :tion of member countries at "diplomatic circumloeullen and higher prices than the fixed rate jobscurity at its worst." of $35 an owned.

EDITORIAL

the

the U.S, people.

PIECE OF PAPER

Mr Sheldon: We come now

to the last Interview In Shang-

Dine

At the

P.G.

'For

Reservations

Price 20 Cents

Tal: 77880

Australia & New Zealand Want Pacific Pact

SECRET COMMONWEALTH DELEGATES' MEETING

Bigwin Inn, Ontario, Sept. 14.-Australia and New Zealand delegates today informed the unofficial Commonwealth Rela- tions Conference here that they would welcome” a Pacific Pact, with the United States as senior partner.

Cominform Underground Active In Belgrade

14.

A conference spokesman! An Indian delegato was quoted the delegates, who quoted saying that the

Western democracies 'met in secret,

IN anying abandon any thought that raill- that they would like to see tary and strategic considera-

..

must

a Pacific Pact developed as tions could come before political an extension of the Can- and economic development in

the For East. bern Pact devised between

A United Kingdom delegato

·Australia and New Zealand

suggested that the strategle im- as a defence measure after portance of the Indian Ocean the Second World War. must not be overlooked. Tha

The delegates', names

Eastern него

statca

must daviso not announced in accordance some formula of defence.

When A with conference procedure.

Eastern

agreed that could

their

delegates spokesman briefs the "press agreed, that domestic problems prevented their taking that daily, Belgrade, Sept.

The spokesman said members stop, the British delegate sug- Yugoslavia's pro- Russian of the delegations of India and ected the establishment of an underground, acting openly Pakistan

India-Pakistan border along the lines of the undefended Canada- in Belgrade for the first countries

not join a time, today flooded the city's Pacific Pact until they settled United States boundary. Then, Indian and Pakistan forces central districts with posters the Indonesian question was approaches to the Indium Penin- their own differences and until

could be used to guard the and pamphlets urging the settled to the satisfaction of the sle overthrow of Marshal Tito Indonesian peoples.

was.

and his "Fascist Gestapo Bu one. Pakistan delegato TROUBLE IN BURMA clique."

quoted as telling the con ference that if Russia sought to -Another United Kingdom de strike into the Indian Peninsula legate asked whether India and through Paidietan, it would only Pakistan would accept respon- be over the dead bodies of the ability for any trouble which Pakistan people.

might develop in Burma, even The

spokesman sald a Ceylon

to the point of armed interven- that declared

tion

י:

coun-

A careful check of a large heighbourhood in Belgrade dls closed that the leaflets had been slipped under doors and passed Into a large number of lost boxes between midnight and delegate

people, while they had national The Indian and Pakistan de- aspirations, were for the legates agreed that their At least two types of promoment with British military tries would not accept such re- pagunda were circulated-abases in their land because they tablold-size poster bearing provided protection which they stances. In view of their rela

sponsibility under

any circum reprint of an article urging to themselves could not afford.

tionships with other volt and a copy of a leadet called,

Asiatie -For-Socialistic Yugoslavin,-NO-IMMEDIATE THREAT tales, neither wanted to bo-

come indentiaed as an im published by Yugoslav refugees | in Moscow.

While the Australian and New perialist" power.

The British delegate then Zealand delegates saw no im- Dozens of shopkeepers and mediate threat to the Paclite asked what India would think householders found the papery they realised they no

took in longer the United States when they began their day and could depend upon British tea more direct hand. in the de- immediately noted the security power and would have to form fence of the Indian Ocean, forces headed by the Interior their Owl1 201 defences, the The Indians replied that they Minister, Alexander Rankovic.

spokesman cald.

would welcome United States The pamphlets denounced Ra

With their own industrial re- ald in timo of trouble, but "bloody kovic as

Gestapo

sources small, they would wel-felt that in

the United peace Fuscist."

come the United States as a States might not bo "too major partner

Pacific liberul," the spokesman said.- alliance.

ה

bal you had with Roberts. You stems from and in the Taibu Lake area, 60 were former merchants in remember you told us a fatherton, Uley could

withheld from miles

Investment in Burma is of more recent origin. The new. Government of Burma has been set up along strongly socialistic lincs, and has indicated that a pro- gramme of nationalisation could be ex- pected. This, of course, makes risk capital wary.

Burmese The recent Foreign Minister's announcement makes it plain that such nationalisation will be gradual, that it will not be all- embracing and that it will take into ac- count the lawful interests of private property owners. These Indicate that the Government is planning a considerably more moderate course of action than that. first suggested. It is, therefore, quite conceivable that capital will be forthcoming from abroad for.. some of Burma's needs. A land, of plenty, Burma can play a very vital part in helping to stabilise economic as well as political conditions in the East. Given ́ a return to normą) production, her rice, oil, timber and other resources contribule considerably towards con tentment for millions of people in this part of the world, thus lessening the dangers of unrest and turmoil. Military action alone cannot solve the dis turbances which have split and im- poverished Burma. A sensible economic · rehabilitation programme, whilch will in crease exports and bring greater prosperl- ty to the country, holds out the best in- centive to the Burmese to return to pro |ductive enterprise, and is the best answer

to anarchist propaganda.

Burma Opening The Door THE Government of Burma has an- nounced that the trade policy pursued since

country became independent is to be modified. Foreign Investment in certain fields and under certain conditions will now be permitted. This is a significant and valuable step. It should help to break the recently. created barriers of Burma's isolation' and make it possible for Britain and other friendly nations to give some much-needed help in stabilising condi- tions in the country. Some of Burma's friends have indicated a willingness to como to her aid, but they have been re- luctant to make specific offers unless, the initiatiye came from Burma, It was well understood that the Burmese, were hostile to anything that could be called outside Interference or exploitation. Thero uro · historical reasons for the áttitude. In the entire period prior to 1935, during which Burmu was adminis. tered; through the Government of India, Burmese nationalism' .... had" 'a strong separatist flavour. The Burmese de manded then, as they did latex, to be treated as a fully different group. In nddition, the Burmese have seen what happened to the' rice Industry when” Iarge- "productive areas came under foreign-in this case) - Indian--control. Similarly they have seen the dominatiön of in- ternal waterway shipping by a powerful, and allen organisation. They arena #turally fearful · lest much conditions recur. The other deterrent to foreign

can

MILITIA ACT

Millamen went quickly into interesting account of how you be seen in the streets, reaching showed him a piece of paper behind the grilled doors of shops Replying to Mr Sheldon, Ed- with two Chinese names on which had not yet been opened wards said that as far as heit?--Yes.

to fish out copies. new he had two transactions

with Roberts and Baeten, and given to him.

It is lost? That paper they were confined to Novem-

W35

A spot check of the neigh bourhood indicated that under-

ber 10 and 21. Both documents you know? Not in existence as homes It is not in existence as far as ground

were lost.

Mr Sheldon: I suggest that

Jiar as I know, Mr Sheldon:

block

agents had resched

and shops in a 8lx- arch. Distribution

of

You alld not leaflets apparently was skilfully the document on the 18th was give us the benefit of that part organised to avold the well- of your evidence in your de urmed militia patrols which are on the look-out for just such "Cominform" activity.

Londoners'

Transport Threatened

the

bene esso evidence.

Edwards replied that when

The leaflets were printed on he mode his affidavit be was told to

often sten in write it out in draft paper of an excellent quality forn, and he had forgotten the of a type nat Incident at that moment but Yugoslavia, United Press: recalled it yesterday when Mr... Wright questioned him about it. Mr Sheldon: You had for: gotten it until that moment, -

Edwards: No, when I was making the draft I forgot it at

21.

€1

Reuter.

Urgent Need Jap Peace

For Treaty

Washington, Sept. 14.-The United States Secretary

of State, Mr Doan Acheron, said today that he and the British Foreign Secretary, Mr Ernest Bevin, wore agreed that the need for a japancso peace treaty was urgent,

Mr Acheson said that to- the arrival here tonight of the day's talks on European French Foreign Minister, M. Robert Schuman, with whom questions would

have the they would discuss their prob same objective

As yester-icina in Germany, Austria and day's talks on Far Eastern the Far East.

WEATHER and Middle Eastern ques- Mr Acheson laughed when

CANCELS FLIGHT

tions in other words, the whether, he and hir Bevin had correspondents asked him two Ministers would seek to "disposed of the Far Eastern analyse developments and question yesterday. problems without attempt-| Ho said: "That is a big word. ing to reach specific agree-We had a long talk about it

Reuter,

London, Sept. 14-Ten million Londonors waited that very moment. reassurances.

tonight for a decision on

GOOD MEMORY the railways wage dispute,

liavi Mr Sheldon: You

ments. which threatens to reduce very remarkable memory, Mr

He was asked many questions HONGKONG ISSUE capital's transport Edwards.-1 have 21 good

Bad weather caused can-

about the prospects for. Washington, Sept. 14.--Bei- system to chaos next, week, memory for events.

tish sources said Mr Bovin fully You gave us the most meti-cellation at the last moment Japanese peace treats. But after a busy day of beculous details of everything that of a mass flight over long-

Ife said: "We thought it was understood. the United States",

whother to hind-the-scenes' discussions, the happened on November i and kong this morning in com

urgent malter to get an dilemma, trade union leaders who aro Oghunt the campalan for wase is good for events.

your memory is good?-It memoration of Battle of with. Two years ago we had u General MacArthur's occupa- preliminary conference on pro tion regime, with its prestige, rizes for 300,000 British rall-

Britain 'Day.

cedure, and wo sill think it le continue in Japan or whether with the peace go ohend. wavmen refused to disclose the Mr Sheldon: It must be good

We *Spitäre and Sunderland pilots urgent are going over the Intest developraents

Bevin or their it those statements are correct.

Bea if treaty. They said Mr were standing by in their air-whole malter again, to

thought what must be consider- Immediate plans

What time on January 10 did craft shortly before 10, a.m., we can evolve any now Ideos."

ed was the extent to which Sir Acheson said that Roberts?Towards but the weather provented take- Unless, discussions today and you

Soviet Russia, by propaganda, tomorrow open up new

hopes evening between six and seven off. Seafires and Firefiles from Bevin agreed with him on the could stir

up the Japanese for the railwaymon, it is gun o'clock.

KMS Triumph, which were to urrency of the matter,

masses against continued accu- erally expected that aminse Counsel And according to have joined the Kal Tak planea He was asked if there was any meeting of man from London your evidence between six and in the fight, also did not take possibility of the Western Pa-pallon if they lacked a pouce and the surrounding country soven pim. you gave

wars going ahead without Rus lenty

Mr Bovin also reportidly told will vote

next Monday to this information of this lost At Kal Tak his morning, 520 alon participation, and hero-

My Acheson Britain

did not launch planned go slow" piece of paper, and he want Royal Air Force men took part plied: "The freut objective need American help in the movement.

away, and telephoned to the in a Battle of Britain com-to bring into this matter every

with it ovant of A Chinese Commumist Midnight next Wednesday bank, I

that that is maggeal

"That is the objective we attack on Hongkong, but: Me Present were three Batile of would be the deadline for their wholly untrue. The banks were themoration service and parade one who is concerned nellon, which would quickly not open between those hours Britain velerons Group Cap- want to seck.. "I don't think any Dovin, was convinced that Bri disorganisa thespilt second on a Saturday,

lain J. Worrell, Squadron Lene of us has got to the point of tain would rective immediate tims tables of the underground Edwards replied that the R. Yulo and, Filgt1 kr swing what to do it we can. US and Canadian aldit and suburban railways

on banks at that time were being Are Jargely investigated by the Economis

(Continued an Paro 5)...

Which Lonklonors

|dopendent."--Reuter,

это

Roberts of.

Mr

Lieutenant G. Mitchell.

Group Caplain, Worrall the saluto.

Look

not accomplish that obitelive.nnolher power give direct

Me voneson said that both he wand toer and Mr Havin were waiting for | United Press ***

mil

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