1948-12-09 — Page 1

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AMERICANS WANT TRADE WITH REDS Survives Ship Dutch Delegate

Desire Expressed As Govt's Domain Gradually Shrinking

No U.S. Trade Ban

Nanking, December 8, American businessman resident in China are today expressing desire to trade with the Chinese Communists, and several in response to queries have been informed by U.S. officials that Washington has made no ruling to prevent such commercial activity.

U.S. consular offices and the Embassy in Nanking have been approached by individual business- men to ascertain whether the State Depart- ment will bar their doing business with Chin- ese Communists.

Those requests for information have immediato

pertinence in view of the possibility the Com- munists may soon extend their control to the Lower Yangtze River and Shanghai. Wide foreign contacts would then be opened to hitherto relatively isolated Communists.

An American Embassy official assets has already been spokesmon said! businessmen removed for safe-keeping from have been referred to recent Shanghai, the country's financial Evacuation notices circularised centre, to Americans in China for a statement ut official policy that has bearing on the nat ter,

Em-

The spokestran said the bussy and ensulates have made it clear in their evacuation warn ings that the situation may deve lop so as 10 make it very prudent for women mid children nad now. essential indiykluuls to elsewhere white menns of travel still exist.

However,

added. he

Inove

there

was no intention of Influencing businessmen, wiatonac'es and ether Americans with sub. stantial Interests in China to abandon their Interests or ro-

their representation." move

Want Statement

American business circles here, although

of luter cognisant national ramifications involved, are hoping for a clear-cut state. ment of American palley on what the icin attiturfe will be toward

Red Encirclement

Tientsin, December 8. Communist forcos are gradually and systematically closing in on General Fu Tso-yi's continuous- ly shrinking domain, latest reports revealed today. Clockwise from the South West, Communists.are already tackling Tohsien, along the Peiping- Hankow railway, only 10 miles from Fù Tso- yi's headquarters and hove simultaneously re- appeared '15 kilometres South East of Kalgan, along the Peiping-Suiyuan line. With gunfiro clearly audible inside Kalgan, the curfow has been advanced to 7.00 p.m. (local time) while General Sun Lan-fong has been. appointed the overall Chahar garrison com- mandor, assisted by two doputios, with head- quarters at Kalgan.

Barely 00 kilometres Norththe immediate vicinity of Feng- East of Peiping, hostilities are Jun, directly 100 kilometres East- proceeding In Niulanshan, ward of Peiping and almost on along the Peiping-Kupelkow he Northern rim of the Tongshan

inting aren. rallway, following the Guvern- ment withdrawal from Miyun. American banks hold Kome East

skirmishes of Peiping. Government dollar accounts. The around Tungchow, 20 Kilometres Government is reported to have away resulted in n Communist made several U.S. currency ship-retreat. but the Nationallat ments to the American Federal authorities are contemplating the Reserve Bank during the period demolition of all buildings within of ennversion to gold yuan. These 200 metres radius of the Tung- credits have possibly been trans- chow city wall,

commercial banks,~~~

General In East Hopel,

Lin ferred Associated Press.

Pino's forces are concentrating In

A

to

British KMA Official Pessimistic About

Future Of Coal Mines

Tientsin, Docombor 8.

British official of' the British-Chinese-owned Kailan Mining Administration said he was possimistic about the future of the company's Communist-threatened great cool mines.

their trading relationship with the "If they were blotted out, it would be bad for the

Communists.

Some feel that British firms,

economy of China,” he said, adding that many. British and Chinese members of the firm in- tend to stay, anticipating no personal danger.

with whom Amertem coNECENA make up the bulk of foreign business interests in China, have teen given an advantage through And they will try to operate the minos if the Rods

with com-

soize them.

Intensive Communist activity at Fengjun la noteworthy, owing to the proximity of Tongshan in the and the flat terrain entire region, which

would permit the rapid movement of Red forces to support tho Niulanshan operationa.

Major Threat

Hitherlo, no definite Jurge- scale Communist assault has yet been

unleashed but

majo: threat is developing in East Hopei, despite fighting in other parts

Meanwhile, Communist General Chen Yi was reported today to constricting he reinforcing and

his encirclement of some 110,000 Nationalist troops trapped Ü

Disaster

An unidentifled Chinese woman, one of the few sur- vivors when the ss. Kiongya sank outside Woosung, after she arrived in Shanghai aboard one of the rescue ships. In the first official estimate, of the death toll aboard the ship, two Chinese residents' associations said 2,830 perish- ed when the Ningpo-bound vessel exploded and sank at the mouth of the Yangtse on Friday--AP Photo.

Refugees Pouring

Into South China

bravimately 50 miles South West From War Regions

of their former base at Hsuchow, according to Nanking reports.

Neutral

military observers sald elements of

12 Communist

Canton, December 8.

columns were now identified in North and Central China rafugees are estimated to

the Communist containing force. Eight, or possibly nine, were re- ported yesterday committed to assault on the former Hauchow garrison.

Walks Out Of ECAFE Meeting

Lapstone, December 8.

The Netherlands dologate walked out of today's mooting of the United Nations Economic Com- mission for Axia and the Far East conference here when Indonesia's application for asso- ciate membership in the Commission was ac- cepted.

Australia, New Zealand, Pakistan, India, Burma, China, the Philippines and the Soviet Union voted in favour of Indonesia's ́ admission. Britain, France and Slam abstained. The United States and the Netherlands opposed the

admission of Indonesia.

Brigadier Hunt of New Zealand said that both the Netherlands and the Repub- Hear. Government should be admitted to associate member- ship because negotiations be- tween the two seemed unlike- ly to lead to a settlement at present.

The absence of an associate member from any part of Indone- sia would prejudice the work of the conference he added.

Supporting the admission of the Republic, d

Hamidul Huo Mr. (Pakistan) said that the Nether- tands Government had recognised the axistence of the Republic of Indonesia as the organised Gov. ernment body for the purpose of negotiation and this fact show- ed that the Republic had received do forto recognition.

Asia Awake Now

"Aaja is awake now' and the spirit of independence has been firmly established in ali lands, It is too late in the day to re- verse the process. The territory

comprising the Indonesian Republic is one of the richest countries of the ECAFE re- gion and it is bound to play ar Important role in the economic emancipation of Asia and the Far

First Vessel Leaves 'Frisco

San Francisco.

December 8.

The port of San Fran- cisco cleared its first com- mercial ship In 90 days last night as the Pacifle coast waterfront struggled to make up time lost in the maritime strike.

The Golden Bear of the Lines Pacific Far East cleared for Portland to plek up cargo for the Orient. The line hopes to clear the refrigerator ship Flying Dragon In time to reach the Orient on Now Year's Day,

The first direct sailing is set for tomorrow; with the American President Lines' Darmouth Victory booked to leave for Manila with food and machinery.

Within the next 10 days. 30 ships are to clear San Francisco. - Associated Press.

E

Enspealed to the Nethonment.representing 23 millions",

HC

Government to look at the whole problem dlapassionately.

Mr. Desal asked.

The Indonesian Republic is still anxious that its application should Mr. C. C. Decal, india, sald be discussed at the present ses- If other colonial powers had sion and we should not quibble followed the example of Bri-jany Jonges.""

Dr. Chombe, Australja, goid that

tain in granting Independence

cerned."

Cannot Dony Right "What right has the Nether- Iands Clovernment with a popula-

of Indonesia's

flat

to India, Pakistan and Burma, the postponement conditions In the Pacific would application would imply be much better for all con- rejection. Australia felt that the be entering Canton at the rate of a 1,000 daily

Commission would be incomplete while a larger area remained out- by train alone, in addition to the many who

side its orbit. como by air and sea.

Bir. Myron, United States, re- gretted that in the attempts he The Nationalist pocket was re- Ample evidence of the

port facilities of the latter. In- Juably reported further com-crease in population is provided is held that Kweilin, with tion of nine-to-10 millions, which had made with Australia to flod

pressed from yesterday's known by

enjoys full membership airfields, provides

a compromise solution, he had not crowded streets, hotels, its good

bastion than width of eight miles and depth restaurants and public places better

Canton.Cominission, to deny the right of been able to and ono satisfactory associate membership of a Gov-to both sides.-Reyter. of five milea.

of entertainment. Chen Yi was reported moving Merchants and Industrialists new columns into the attack on have also flocked here from the three surrounded army groups North and

It is reported that who were said to be offering

in the cotton yarn business resistance. The Second

total

positive indication by the Goy-

tf support crement

their of raajority decision to remain and The KMA mines, bituminous try to deal with the Communists.

works sprawling over an ares of 20 miles in the Tongshan Que representative of 17 Amerlenn company

district, about 40 miles North paratively extensive interests in East of here, have in the past as 20,000 China said his fero intended to produced as much remain and, if possible, de busi-tons of coal daily and supplied scorched earth tactics al Chin- ness with the Communists, unless a sizeable portion of the fuel wangtoo about 20 miles North Martial Law the State Department ordered for China's industry, this city, Exat of Tongshan. Unometal them out.

This view is typical.Tsingtao, Pelping and Shang-ports, however, indicated their de- Foreign businessmer believe hal

and the Reds occupied Chlawang-sitt tao, one of two ports from which Army Group, led by German- have transferred all their capita most KMA cool has been shipped.trained Chiu Ching-chuan, one of the Nationalists' most respected "Scorched Earth”

theld commanders, was bearing the brunt of the Red attacks.

The

Natioruilists

altempted

moltition and navol bombardment had little effect on Chinwangtao's the Communists will face the The official sald little coal has facilities, which pre-war could immediate pressing problem of moved for the past two months handle up to 10,000,000 tons of supply if they take

the over

out of the mines, at which about freight-and-coal a month. Lower Yangise River valley, with 1,000,000 tons is stockpiled. A Withdrawing Nationalists

also

its large cities such as Shunghui plan for increased movement suf- and Nunking. To keep the in-cred

destroyed the double-truck_rail-

dustrial machinery Shanghai when the Government abandoned | between Tongshan and Chinwang-

running imports of oil, petrol and kerosene at least will be urgent- ly required.

To Meet Needs

Businessmen of the Western Powers, particularly the United Blates and Great Britain, are regarded no the only individuals in position to meet these anti- alpated trends promptly.

expressed the opinion that 12

With major Nationalist armies

those

assets bere estimated to well over HK$150,000,000,

Meanwhile, the rumours regarding

01

spate the shifling

Reuter.

Catholic

of this

Hopes

For Hirohito

Vatican City, December 8.

of China's capital to the South Modern history's biggest mass move towards Chris-

continues unabated, despite Generalissimo Chiang Kai-shek's statement that the capital would remain in Nanking.

tianity, Vatican sources believe, could result if Emperor Mirohito

embraced the Catho-

lic faith.

sources

be-

Such a step by the Japanese Emperor, these lieve, is possible.

Reports received by the Sacred Congregation of Propaganda Political observera think Fide, the Department of Pontife- that the Government consideral Administration for the Spread of Catholicism, have long speci- Kwellin more .au/table than ted on such

Juted on Canton, as the strategic advan- tages of the former outstrips the economic advantages and

It is believed that though Co- in East China, including the ton may become a co-capital, the former Haushow garrison, beniain seat of the Government, if iloved encircled, and the 12th it moves, would be situated in, Army Group surrounded South Kwellin, capital of Kwangsl Pro- served as one of West of Suhalon, the Chinese vince, which Government

extended General Claire Chennault's 14th today a sharp setback recently road bridge over the Huan River

martial law to the Wuhan area Air Force bases during the late of Central China, affecting the war. tao. The scorched earth tacties

citles of Hankow and Hanyang. caused KMA officials much con-

The Government military news cern for equipment and company

gency suld units of General onicials remaining who might be said

Group caught by the feds and accused Huang Wel's 12th Army of sabotage.

have broken through Communist

make encirclement to

contact with other Nationalist troops advancing from the Huat River, The two Government forces were reported to have joined North of Pengpu

circles said Foreign military there was no confirmation of this report

Target For 1948 Exports Achieved

London, December 8. There was good news for Britons this morning. Britain

An Americans offcial privately has achieved the 1948 export restrictions are placed on trade target, Mr. Harold Wilson, the

of

with

the Communists, they will President

the Board of

be primarily designed to prevent Trade, announced. shipment to Red China of milk tary equipment.

·Small Red units have driven to within 16 milca of Tongshan W Associated Press,

On Other Pages

The Weather

Д development. Since 1945, they say, Hirohito has dropped the trappings t divinity he had as Son of Heaven and chief priest of the Shinto re- ligion

as well as the Em- He, as press, are said to have shown real interest in Christianity, --Catholic charities in Japan, these sources add, have had help from the Imperial household and often a personal visit by Hirohito. about 150 miles ENE of Masila moving

at 10 to 18 knots. The comparativals Recently, while visiting a Catholic wenk Siberian anti-cyclone covers China convent chapel in Northern Ju- and Japan and still show ng wlan et pan, the Emperor reinained Ju air-dropping supplies to encircled intenslaration. To the E of the anti- deep meditation before the Eu- Nationalist armies, accompanied eyelene deep depression is centred over by four-motored B-24 bombers as the Pacifle 81 of the Kanchatka peníns well na lighter bombers and u

between the combat arcas

Clear weather today facilitated intense activity from the Nanking military airfield. Transports were

Pago 2

"Guerillas" Overrun Camp, Blast Bridge in "Battle"

Record Oplum Divan Raids fighters shutting

capital' and Carried Out.

the North.

Chinese Press dispatches re- Aus-ported heavy fighting with Red units in North Klangsu.-Reuter und Associated Press.

Overseas trade last month total- Ied £147,000,000 £1,400,000 | Page 3 Foreign businessmen are now more than in the previous best- concerned with the problem of month of July--and Mr. Wilson how the Conimunists will pay for told the Institute of British Laun- Imports,

derers: "We can say the nation Page 5 has achieved its export target set that It is assumed

at least for the end of 1048 initially, trade will be strictly on Miners last week made their cash basis. Well-informed greatest effort of 1940. The coal economile observers belleve Cum production of 4,340,100 tons war munist hard-specie holtting the highest since December last sma!).

Location and aoizure of yet.

U.S. Ready to Resume trian Peace Talks