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Today's Weather: Moderate SE winda. Cindy with occa- sional rain or drizzle developing later, Warmer.

Noon Observations: Barometric pressure, 1022.0 mbe. 10,18 In. Temperature, é3 der. F. Dew point, 55 deg. F. Relative humidity, 77%. Wind direction, East. Wind force, 5 knots.

Low waler: 2 ft. 9 in at 0.43 p.m. High water: 4 ft. D in at 12.21 3.m. (Thursday)."

Hongkong Telegraph.

VOL. V NO. 44

Hungarian Spy Trial

Confession Repudiated By British

Government

London, Feb. 21. The British Government tonight declared that the confession of Edgar Sanders, British businessman sentenced 13 years' imprisonment in Budapest today, had

to

been the result of a "sinister technique of Interrogation under pressure."

"Facla wilhin the knowledge of this Male:fy'r Government makes it certain that his festi- of compendium imony was distortions and lies such as he could have had no natural no.. tive for uttering in couri," an official statement by the Foreign Omce Fald,

The British Government found Sanders's choice of words in

unusumi" court

to him, and

ald that they left no room for doubt about the nature of the he had preparations to which been previously subjected."

"CONDITIONED"

The Foreign Office said that

the Hungarians did not dare to let a British official nee Sanders,

lost he should discover how ho was "conditioned".

One point made by the British

Election` . Weather

Lonen, Feb. 21. The Air Minölry today fore- Cast BUN «NE Tatarr Cold weather WALIL rain แต่ navy parts of the country tur

1514 M national election day,

That' what the Labour Irty calls Conservative weather. The theory is that more Labour VOLEN will slay at home i rains because fewer of car.. The them have,

to weather is expreted improve during Thursday, however, helping £.bour's cliances. Diost working men vole in the evening after finishing their jobs.

The

and

falc.

forecast. Beolland Northern Irelands,

Tutt and rather cold with rain at (mes in many parts of Euclind at first. The weather will Improve steadily from The West during the day.

"The Improvement my not reach ROTIC Eastern areas until well into the evening." Press.

Associated

WEDNESDAY, FEBRUARY 22, 1950.

Russia Pursuing An Efficient And Bold Policy Says Acheson

Washington, Feb. 21.-The U.S. Secretary of State, Mr Dean Acheson, said today that readjust- ment of United States economic policies would be necessary to help a free Europe to oppose the policy which Russia was pursuing "with efficiency and with signs of increasing boldness."

Mr Acheson was addressing a joint session of the Senate Foreign Relations and the House Foreign Affairs Committees to support a request by the Economic Co-operation Administrator, Mr Paul Hoffman, for a Marshall Plan appropriation of $2,950,000,000 for the next fiscal year.

Mr Acheson said: "The Kremlin has had major successes, though they fall short of its ambitions, and it now inescapably confronts the nations of the free world, which cannot accept its definition of inter- nationalism, and which are, by that fact, a threat, in

Grenades At the Kremlin's view, to its security.

Funeral

The Kremlin enn, and is, pursuing its course with efficiency and with signs of increasing boldness, using whatever means seem appropriate to it in a given situa- tion."

Government was that part of the 11 PEOPLE KILLED United

ogalost of espionage charge Sanders rezled on his alleged ne- tivity when he was a member of the Alled Control Commission in Hungary.

"It was, of course, the fune tion of this Commission to re gulate and supervise the execu tion of the terms of the armis. tlee, and the status of Hungary was at that time that of a de enemy. the

feated

Mr Acheson raid that the Stales must continue Marshall Plan old at an ad. "But this ap. level. equate propriation of the funds which Hofman ask for is now

"ho added. in enougments

of Unlled economic policles will be of State raid

Amara, Feb. 21-At least 11 people were killed and more Mr

50 wounded Today than dhorders which spread from Ambaderko, 30 inties from here to the outskirts of Asmara itself.

States necessary."

The killing began at Am-build up baterko when three Shifta (pro-nud

terrorists) grenades | vorla Foreign Ethiopian

were thrown, into a procession prices would Omec statement said.

of that of about 4,000 Mosiems attend-uccess allegation member of the Allied Controling the funeral of the Ambadi-covery

elugaged in erho Alation-marter, killed by broadly

Shifta yesterday. Hungary i

Any

Commission

espionate mainst

menuinigees,

"Secondly,

Majesty's Government has noted that the

Ile warned: "There must be no wavering in support of this now for the yours jangramme

in head and

every way RS important as the years behind. decision abou! The important Europe's future are still to pe mude.'

Among

raid Mr Acheson

that the United States favoured a closer

association economic The Secretary

countries, including that whatever could be done to European

imports from abroad Germany, and added: "Unity":10

States ex-

the continuing make United

Europe requires the avaliable at reasonable association and support of the Without It, Iren States. contribute to the United

Europe would split apart." the European le- Europe

He said that it was parti and more Programme

building of a cularly important to retablish to the successful free world

system. European payments

the permit the frie exchange raid that Mr Acheson

the Kremlin's European eurreneles British and American troops "frustration of

design: for world domination" hoped this would In to aid the po- were rushed

lay in the carryho Dot of such the near future. counter-attacking Mos-

policy and the United States" determination to do it, however whatever it it took and

ncceptedtems. remt Apparently without question a number of ellemtions exparte

agaleast members of The staff of His Majesty's Legution.

24E3C

wielding xwords knives, hunted down their Shifta assailants.

Unionist Parly's Tonight (he "They (the Government) for (Shifia) headquarters here was mally deny all allegations that nitncked and a Moslemn shop Ambulances and members of the staffs of His was set afire. Majesty's Lention have been police Jeps raced through the deserted sircets.- ality of action improper to otherwise diplomatie officers."-Reuler.

EDITORIAL

Reuter.

low! required.

Mr Acheson urged continued United States aid to Europe as which would a level

perint

union 10

of 1200

and be done in

Dine

At the

For

P.G.

Reservation,

Tel: 27880

Price 20 Cents

After Tornado Had Passed

This is the wreckago of two barracks and a mess hall at Slack Air Force Basc, Shreveport, which was struck by one of a series of tornadoes that- through East swept Texas, Western Louisiana and Arkansas. Five air- men and a civilian were killed at the air base. One barrack (centre) Was levelled and the other The battered. (right) wrecked mess hall is at the left. -AP Picture.

JUDGE STERNLY REBUKED

A "Most Unfortunate

Direction" To Jury

European countries to make theative co-operation and participa- citor, on

rc

nccessary purchases in the dollar nrca.

Marshall Aid Paradox

THE British government's determination

THE

of dollar oil cut back importa throughout the Commonwealth natural- front protests aroused laud ly has American oil interests which see part of the United States' foreign market dis- appearing before their eyes. No less an then Senator important personage

of chairman

Foreign the Connolly, Relations Committee, who hails from the oil-conscious state of Texas, has denounced the British action as reprehensible because United States "has made and is the

Britain to nucking stupendous gifts to rebuild her economy." Probably without intending to do so, Senator Connally has here touched on a fundamental question of which many Americans, not to mention Britons, do not yet seem fully conscious. While it is perfectly true that the United States is making "treniendous gifts" to Britain and the rest of Western Europe to rebuild their economy, It is also true that one of the primary aims of the present American administration is so to help Europe reconstruct itself that it will not perpetually have to rely upon America to go on making those gifts. As one of the means to that end the United States has been doing all it can to encourage Europe to become an Independent of gold dollars as possible. Here is discernible the difficulty. The minute Britain begins cutting down on importation of American- owned oil for which she has to pay dollars, American oil interests must of necessity suffer. A similar problem arises when the United Sintes encourages European exports to America, intended to enable a 'reduction in gifts, of dollars, because the American domestic manufacturera im- nicdiately feel they may be injured to Home eklent. In the current oil dispute. The British government is endeavouring to cut down on the very dollar drain which has been the principal source of worry to the Marshall Ald planners. Of

new

Britain's $1,500,000,000 defielt last year. about one-quarter was due to actual pur- chases of dollar oll-far too heavy a burden for the return to the nalion in the way of industrial resuscitation and Sir Stafford dollar-carning exports. Cripps has been extremely sensitive to the dangers of uncontrolled spending on dollar oll as a drain on Marshall Ald funds, and it was this sensitivity which

him to rebuke the prompted Australian government for its action in Nor are the lifting petrol rationing. Labour

fears In this government's direction allayed by Mr Menzies' assurance that his administration can obtain the de-rationing necessary petrol to meet

without requirements

making new demands on the Commonwealth dollar pool. The argument is that whether it bo directly or indirectly, in the final analysis the petrol has to be paid for in hard.currency. Therefore, argues Sir Stafford Cripps, you must continue to go without something which is not altogether the # necessity. The point about difference of opinion between the British and the American oil governmen! Interests is whether there still remains methods of restricting the enormous dollar drain on this commodity without completely cutting United States oil companies out of the plcture. It is encouraging to note that the whole prob. lem is a "under active discussion." But

arrangement ja no matter what ultimately made (and If the Conservatives are returned to power this week this may differ vastly from any solution which ́`n Socialist government might reach) one hard fact remains: it is that the United States also has to undergo certain économie adjustments if she is to succeed In her magnificent and pre-eminently worthwhile effort to save Western Europe from economic and political collapse.

Party Leaders Busy Winding Up Election Campaign

Shanghai Bombed Again

Water And Powor Plant Damaged

Taipei, Formosa, Feb. 21.-Air force headquar ters claimed that the Chapel water and power plant in Shanghai badly damaged as a result of an air raid by fivo B-25. and B-24. Tuesday morning.

on

Was

It said the bombers penetrated the Shanghai area through heavy anti-aircraft fire and dropped eleven

loads of 800-pound bombs. It muid the pilots noted an explosion and Bre in the plant after scoring a direct hit.

A milliary spokesman here reported that the defendors of Hainan island repulted five-at- beach small temple to land parties on the Nationalist-held Inland during the past few weeks. He said every Com- munist attempt to gain a foot-

hold was repulsed. "He sold tho Hainan situation is presently quiet, as the prediction that the

would Communists

chase the Lunar New Year

for tho invasion was not bore. out--t United Press.

London, Feb. 21.--All the Party leaders were today busy winding up the Election campaign in PARIS

their various districts.

Touring his Walthamstow constituency in STRIKES

Northern London, the Prime Minister, Mr Clement Attlee, told a meeting to look at the grave economic effects in Germany when they rejected the Labour policy of control..

GROW

on un-

Paris. Feb... 21-Thou- Questioned on the hydrogen Conservative will now vote for sands of automobile workers

were coming out bomb, Mr Attice raid that their own Party,

A possibly determining facter limited strikes in the Paris could be dealt with under the

as a wave of Allied

for proposals

atomic in the contest will be the extent

area tonight to which Labour can recoup ex- control If the Russians only

pected losses in residential and labour unrest also threaten- could be induced to join in.

Drees by nalas ined the Metro and bus, gas Chairman of industrial Lord Woolton, the Conservative Party, sold at agricultural parts of the coun- and electricity services. Loughborough (Leicestershire), try.-Reuter. The truth is that we have goi

CHURCHILL'S HOPE They have

Wandead, Essex, They do not they are com

Labour on the run.

Kot the jitters. know whether

Voter taken throughout tho day at the nationlised Renault Feb. 21-motor works, and at the Rosen- The peoples of Europe rust

Mr Winston Churchill, leader gart and Ford plants, showed be convinced that the United States would out fatte or lore

London, Feb. 21.-Quasi- ing or going, but I believe that of the Conservatives Party, said that the majority of the workers an Election speech here to were against accepting the five interest in co-operating, “Al-

night, "1 for extraor. Ing the conviction of 11g-they are going.

look forward to percent wage increase offered by though the need

Mr Herbert Morrison, chiefaursday when, with a resture their employers last Friday. dinary sistance will come to nett, 10-year-old Chichester,

strategist, addressing

of intense wrath and ign- They were in favour of downing an end, the need for our affirm-Sussex, ex-Coroner and soll. Labour

200 reporters in London, saki, seven charges

Socialistas feel that the mood of thy on and contempt, the British tools for a much higher Increnso As well as a provisional monthly tion will be continuously

Is with us. of fraudulently converting country

It looks nation will spit the quired if the free

fecla the good,

good and smell trash and Jargon out of their bonus of 3,000 francs,

About 31.000 workers have) mouths forever." money, Lord Goddard,

walked

alte asserted tha | already going concern."

Mr Churchill Speaking befcra the Joint Lord Chief Justice of Eng- good."

STALEMATE POSSIBLE the Socialist Parly had spread Renault plant, 1,200 Congressional Committee, the land, today sternly criticised

about more falsehoode than he Rosengart plant and more than

were 4,000

continuing their Administrator, the judge responsible for

could ever recollect. Mr Paul Hoffman, today fore the sentence.

weekold strike at Ford's. cust a 10 percent increase the dollar earnings of the Mar- shall Plan countries and an. 11 percent decrease in their dollar King's Counsel, requirements for 1050-51.

be

Marshall Plan

world is to

In

Commissioner Reginald Clark, acting as b judge at Lewes Assizes in De-

Hignett w Mr Hoffman appealed for cember, sentenced $2,050,000,000 for the third year of operation of the Mng chall Plan

"CRUEL WASTE"

Me Moffan based his appeal of two consideratious:

four years' imprisonment fraud charges involving

705,

01

£21,-

In the Court of Criminal Ap- pent today Lord Goddard s Firstly, he said it would be that the direction given by the "cruel waste" to jeopardise the judge to the jury at the trial

made under regard to the law of fraudulent progress already the Marshall Plan by not finish

most un- conversion was the ing the job.

lortunate direction which Ind ine Appeal should

ever come before the need of court. Winning the struggle between

Secultury, Congress take into account

Mr Anthony Eden, Foreign Minister in the wartime Coali- tion Government, said at Can- neck (Staffordshire), "Travelling around the country I have found our people everywhere in won- derful heart. We must keep up the pressure and do our utmost to see that our nation and cm- piro are guided along the right rowd,"

C

Oldest Voter

London, Feb. 21.- Britain's oldest voter on Friday will still be Miss Ellen Payne, 107, of Conduit Road, Abing- don. She will vote Conservative. — United Press.

ANDERKUALDUBÁTRAN ACTRESSZORANAUTÉS A TARVONNTERE

With only two days left be foru polling day, political ob- servers here did not exclude tift the possibility that the Election

the free nations under American Lord Goddard said that the leadership and the "dangerous Appeal Court could not allow on the Seven forces" of Soviet Communism). The convictions

"If we want to avert World counts of fraudulent conversion

Wu War III with the awful threat to stand where uicre

law initullection lis of the hydrogen bomb we have completo

14 simply got to win that struggle," and they would be quashed. ne said.

the other two counts there was Outlining plans for the future, indirection. of the Organisation for European Economic Co-operation (Europe's

year

services services.

said:

Secondly, we look for an 11

percent decrease in

dolar re-

Lon! Goddard bald that

sentence of

nue months

only

strong mandate to enforce

all Plan organisation), Mr Court had no power to alter the might produce a stalemate, with

on the political consequence of on-

this year. "First, we look for a 10. per-ach of the two other charges other Election

It was generally believed that cent increase over the current of obtaining credit by, fraud,

a government with n its in dollar earnings by the for which Hignett would serve parucipating countries through nine month imprisonment.

decisions could lead Britain's economic recovery, and Invisible Reuter, exports, tourism

Both Labour and Conserva- tive leaders have said that they condot

sec anything but an WAIT bringing emergency like together Left and Right in a Coall ton

Assuming that the Conserva tives drew approximately level London, Feb, 21.—A Bucking- with the Government a. about hum Palace spokesman who was 300 seats aplece, it was thought MINIMUM AMOUNT

today about a rumour possible that Mr Atlee might "Based upon these calcula-asked

accept the Invitation to form a the

amount at Princess Elizabethi minimum needed to operate the Marshall pecting a baby in August, told new government and as one of

quirements of the participating New

countries through dollar-saving

Princess

gala in domestic production Elizabeth Report

and additional needed items from

of supplies

nou-dollar

tion, Pna successfully for the next scal year, including the re- quirements for Germany, 15 $3,100,000,000,"

reporter:

he first acts, advise the King "I have absolutely no infor-to dissolve Parliament for

fresh Election. mation eliher to support or to negative such reports, I just do Mr Hoffman said it gave him not know anything about it." great pleasure to report that, according to present estimates,

It was today everywhere ec- the Conservatives cepted that will take a considerable part of presumptive to the floating vote from Labour. "It would be possible to rave the throng had her first child, It is also recognised that in this

The heiress

In November, Election many Liberals who in voted either Labour or 1045

$150,000,000, out of the appro- Prince Charles,

(Comid, on Page 5, Col. 1), 1940sociated Press.

He declared, however, that opart from one lapse in good taste and manners committed by Sir Stafford Cripps, Chancellor of the Exchequer, it had been one of the most well conducted contests he had witnessed.

1

of

tho

nt tho

Paris transport workers were

warned by their unions today to be ready to carry out any order they might receive if negotia- tous with the Government prove unsatisfactory-I

-Reuter.

Mr Churchill was apparently

Oslo, Feb. 21.The Norwegian referring to Sir Stafford's charge on

February 17 that the Con- Parliament today unanimously ervative leader had sunk to the auroved the bill ratifying Nor- polilica" (way's arms aid agreement with level of "guttersnipe

in bluster the United States after a debate and was indulging

and irresponsible vulgarity"-Insting just over two hours-

Reuter.

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