1949-02-05 — Page 1

Portraits of Distinction

FRANCIS WU'S STUDIO

Glounester. Arcade

CHINA MAIL

No. 34196.

ESTABLISHED FOR MORE THAN 100 YEARS

HONG KONG, SATURDAY, FEBRUARY 5, 1949,

Price: 20 Cents:

NANKING INTERNAL CRISIS? Racial Rioting In

United Front On Peace Threatened By Dispute DR. SUN'S MOVE TO SOUTH

Nanking, February 4.

A political crisis, ignited by removal of the capital, appears to be

developing inside the Chinese Government..

There are possibly serious consequences ahead on maintenance of a unit-. ed front, vital in the forthcoming peace negotiations with the Com- munists.

Present indications are that the Acting President, General Li Tsung-jen, and the Legistative and Control Yuans will remain in Nanking while only the Executive Yuan (Cabinet) will be moved to Canton,

Shelling In

The Yangtse

Nanking, February 4. Nationallet gunboats and artlilery based At Kiangyin laat night bombarded Com- muniat river craft South of Trinkiang, 90

Narth

malies

West of Shanghai.

Meaanges from Chinklang.

40 miles East of Nanking. sald that Nationalist shells forestalled

move.

Communist

Observers are beginning to,Chen. ask, in view of the dispersal Mr. Chen Shu-yuan, the Pre- of these organs-which to-sident's close odviser, is expected gether constitute the Chinese to have "Important discussions

will the with the Taiwan Government.

Peace Mission

Government-where capital be?

Acting President LI ordered the Premier, Dr. Sun Fo, and his Cabines to return to Nunking, and the Legislative and Control Yuan leaders,

Mr. Tung Kwan-hsien and dr. Yu Yu-jen, und a group of Legislative Yuan members also veteran diplomat and statesman, seat similar appeals to Dr. Sun.

Meanwhile, two of the Shang- pepco mission, hal Eve-man headed by Dr. W.W. Yen,

resigned today amid widespread Dr. Sun Fo was reliably rebut hitherto unconfirmed. reports ported cariler to have consented that the Communist authorities in to return to Nanking, but now he North China have indicated their his mind and hos willingnes to receive the dele- gone to Canton where he will gatlon. slay and will rom: to Nanking for short trips Whenever neces- sary.

has changed Elsewhere along the river today, the lull in the fighting continued.

According to Nationalist reports, captured Com-

munist

documant Indicates that the Communists have

begun organising provincial

Red' coldlers Bouth of the Yangtse in Klangku province.

In the Thing Changchuchen area, naar Talhu Lake, the" Communists are sald to have 60,000 guerillas and, an ad- ditional 15,000 farther North in Klappyin and Wuchin

Reuter-AAP.

Sun Fo Arrives

In Canton

Canton-February-4.----

Dr. Sun Fo, Prime Minister,

and

The Acting President is said to have arbitrarily agreed on this plan, but it is generally believed It is only a temporary arrange, ment which may, at any time, blow up into a major crisis,

Opposition To

Dr. Sun

With the President staying in Nanking and the Legislative and Control Tuans intending to stay here too, it would be only logical that the Executive Yuan should

The

resigning members are Mr. K.P..

..Chen, who says that he is n businessmon and inancler, and has no interest in politics, and Mr. Ling Yu-chiu, Chairman of the Kiangsu Provincial Counell, who claims that "omcisi bus. iheas" of his Council will prevent him from making the trip to the North

South Africa

African natives take to their haele as police come in with 'clube to break up a lot near the Durban markat, whare thousands of tons of produce rotted because no Indian shopkeeper. dared approach. Thousands were injured when fighting flared up between Indlans and Blacks.

A Indian, shopkeeper smacked small native,boy, The rioting, said to have started when fasted for more, than three days. Troops with fixed bayonets were called out to put an end to the worst racial cloting Atrica has experienced. (AP Photo),

Kong's Exhibits Hong

For The BIF

More than 50 Hong Kong manufacturers have entered their products for the forthcoming British Industríðs Fair.

The definite date of the mis. slon's departure, as well selection of the candidates to make up the two vacancies, is expapted to be decided at a conference tonight, ór to- morrow, following the return At of President L Teung-Jen's of. personal envpy, Mr. Kan Chla how, from Nanking.

The mission was originally to

..

least 30 more entries are expected before the

list. is closed.

Plans for Hong Kong's 'Tе=

BEGINNING

ON MONDAY NEXT

All Kinds

Keala

Portable TYPEWRITERS

AT REASONABLE PRICE."-

HONG KONG TYPEWRITER EXCHANGE

** D'Agullar BL.

BUDAPEST TRIAL

Tai, 21433

PRINCE'S PLEA OF "GUILTY"

Budapest, February

Princo Paul Estorhazy, one of the wealthiest land- today owners in Hungary before the war, pleaded guilty, to Government charges that ho......... -engaged in blackut-mürker dollar-deals.on

Bokull-al-Joseph-Cardinal Mindszenty.

The Prince opened the second day of the cardinal's trial for treason by admitting he bought dollars at black market prices from the Car dinol as a means of helping, the mo movement in Hungary. Cardinal Mindszenty, plead- ed guilty yesterday in prin- ciple" to charges of black market dealing in dollars, at tempts to revive, the monarchy: and attempts to prevent the the return to Hungary of sacred crown of St. Stephen.

The second day of the tria began at 8.15 n.m. in, Room 27 of the People's Court buliding be fore a tribunal of five judges.

Cardinal Mindszenty, dressed ir the black cassock of a priest conferret for five nutries with his lawyers before the trial start- ed. He appeared neither Ured nor nervous although he under- went five hours and 15 minutes of questioning during the opening session yesterday. -

The Cardinal's admission of guilt. "In principle" is expected to pasire, speedy end to the trial. Prince Esterhazy is car of the six co-defendants on trial with the Cardinal. The Prinde testified that he, bought a total of about US$8,000 worth of cheques from the Cardinal including one for US$4.000.

Moscow Puts Out A Feøler

Moscow,.February 4.... Marshal Stalin will be with- Ing to take part in a four. pawer conference with Pre- eldent Truman. Mr. Olement Attlee, the British Prime Henri Minlater, and Mi Queullie, the French Premiar, well-informed sources in the

Bovlet capital, believe,......

This would ment the chjes. tions that the United States is not-prepared to discuss bila. terally with the Boviet Union matters of Interest to other nations, auch an. Germáný, in the absence of, thele repro- sentatives Reuter.

was not immediately explained. Following the Prince to the stand was Miklas Nagy, secretory. of the Hungarian Catholle Groin, "engaping- 12 Negy admitted black market-deals but denied.. na did the Prince and Curdia T

the ·Government- Mindszenly...

charges of plotting to overthrow the Government.

He also admitted he was guilty of not reporting.

Recognised Leader At first, he testified, he engaged In bisek market bliar deals to provide a living for himself and his wife, a young and beautiful

n request for ballerina. Dr. Vilmos Olti. sident of the Court, then pointed political and economic informa out that he (the Prince) was als tion made by Sigmund Mihpló- of the rendy wealthy Under subsequent vich, director-general

he Catholic Action Group, who fled Admitted

be

17tre may be nera joining the CHINA MAILIA to support

་་

presentation at the Fair this the party, including

Mr. J.B. is pleased to announce

that

The

also remain but it is said to be new members have to be found Every branch of industry will General Chamber of Commerce.

the Premier's stand that whether

peace or war, the Government, may delay the group's departure. should be moved out of a threht

be represented, and the fullest possible information and data will be made available to en- quirers at the exhibition.

Exhibits of every kind, such as There is so far no ometal con cotton and silk plecegoods, rubber

Communist feetwear and rubber Armation of such a

goods, lanterns but Mr. Kan, message,

cnamelware, hardware,

of Communist military attacks Contact Made

Legislative Yuan- members here are taking strong excep- tion to Dr. Sun'a decision to mova his Cabines down to Canton,

when

Mr. Erie Himswerth, chair-Volume of man of the BIP Hong Kong Committee,

leave will

vla America'shoud of the dolega-

tion.

Several Hong Kong firms of Importers and exporters will have paneis at the. Hong Kong stall.

The space allotted to Hong

HK Ship Hits Reef

They point out that removal of questioned-by-Chinese-reporters and flashlights, paints and Inc-Kong, this year is 600 square the capital is a question of high this morning before his departure. quer, leather goods, brick and feet, as against 340 square feet General Wu Teh-chen, state importance and should be answered: "If there is no under- tes, cotton knitted goods, can- last year,

Communista net goods and preserved ginger, and standing with the Foreign Minister, arrived from decreed by the President

They say how could we doujde on the date and inany other itens, are being Shanghai by air this afternoon. announced ometally.

ayrembica. Dr. Sun Fo declined to receive that thus far no decree has been of departure?" Interviewers,

A issued or a public announcement His statement was taken as an but through

· All the exhibits will be shipped Indication that through some by the Es, Corfu about the middle pokesman said that the Govern-made, ment will be officially established It is learned that Legislative private sources contact has been of March to London.

Upon arrival of the, exhibits in Canton

and Control Yuan members are made with the Communists, lead- as from tomorow, The spokesman indicated that discussing drawing up a protest the possibility of holding a Cabl-against Dr. Sun. This would line net meeting in Canton tomorrow up two Important organs solidly Acting President Lin Is now remote,

as only a few behind Ministers havo as yet come to the question of the seat of the Canton.

Government. Definite news that Dr, Sun Fo If the matter In pressed fur- was coming South was known in they, obrervers believe It

resignation - of

may tho

Second

WINSTON CHURCHILL'S

WAR MEMOIRS

"Their Finest Hour"

2

Pre

the the country, last summer.-United

monatenfist movevent. Fres "The judge asked the, Prince what he paid for the doflats. He replied "As far as TNA member the price was higher than the current black market price, (between to, 60 forint: to the dollar)."

The Prince added: "In our cir

Cardinal Mindszenty was cle,

Daylight Robbery

Loot of HK$2,500 was taken

generally regarded as leader of by three desperadoes who car the leglimate_group.”

rled out an armed robbery, in Dr. Olti asked whether it is-broad daylight at the Ming, nat logical to conclude that Prince Sung Steamship Company of Esterhazy bought the dollars in 140 Connaught Road Central order to support the Cardinal's

yesterday. moriarchist bopce.

At about 3,20 pm. the girl,be "I intended to The Prince:

hind the counter In charge of support Cardinal Mindszenty."

selling tloketas was confronted by Prince Esterhazy's testimony.

Ono. pulled out a TO- three men out under questioning by volver and brandished it at her, drawn the court, was dramatically inter- rupted at one point by the Car while a second ransacked the cash dinol who asked: "Did I or any-register. The third man remain.

at the door. will commence in the "China one in my name over ask you As soon as the m money

had been The 6,032-ton Dutch vessel, Mail" on Monday next. Day for money for Royalist purposes?" takon the three men dashed out.

struck expert Tjitjalengka,

***No Meeting sub by day you will read the

followed by a fokl, who pursue-t merged reef on her voyage stirring story of a momentous The Prince replied in the nega-them into the Sun Kwong, Hotel. from Shanghal. to Hong Kong. She went into Taikoo Dockera...those desperate months tive. He added he bad not met There the robbers disappeared: of 1940 when France fought the Cardiral. since Hungary wr yard yesterday, for repairs.

In Prinas The Ming Sung Steamably Com The discrepancy Commanded by Mr. J. Moen, and fell, when Dunkirk belerated 1rom the German nye

Esterhary's testimony-that he pany was establiskad on January the vessel was originally due to came a citadel of heroes and

this month in Britain

bought dollars from the Car-4 this year and had two, ships on be overhauled

stood and fought

dinal but had not met him the Hong Kong-Cabton run. Hong Kong.

alone. It is estimated that the repairs

suffered by the 'Only One Man Could Write to the damage Tjalengka will take two weeks The Real Inside Story Of to complete,

ing to the belief that the Com-In London, the arrangement for will welcome local their exhibition it the Hong muniste

Kong Stall will be in ala.C..

President Li is reliably, re- hands. ported to have instructed the Central Bank of China not to transfor Chiness, aliver dollars, gold and foreign ourrencies to Southern

thern provinces, The President's instructions are designed to counter Communist to allay public fears that the Government abandoning the Yungle River

South to Kong The controversy over the loca- front and evacuating

Canton lo continue the civil war. --United Press and Reuter.

result in intentions was Cabinet.

Conton early this morning.

Word of his quickly passed round, and when

his plane landed at the White Worse To Come? allegations, and

Cloud airport there was

a crowd

of about 200 people, including:

National and Provincial Govern- sment ofcials, to meet him.

A Guard of Honour was drawn tion of the capital, it is beileved, up and a military band played may be the harbinger of more

niartial music.

Statement On Sunday

serious rifts to come inaldo 'the Government. Qualified obserVÕIS say, it a question of un- Applause broke out whan willingness on the part of some Dr. Bun Fo. followed by his groups to submit to the authority wife, and General Wu Teh-of the Acting President, chen appeared at the door of Though General Li, in all re- It is the plane. Al! wore emiting spects, is Chief of State, broadly.

conceded that his authority does The first to greet the party was not go very far down the differ- the new Provincial Governor, ent levels. of Government.

Better Show "we've learnt a lot from the last exhibition, and it's going to be a much better show this said Mr. Tat-ched, year," who will hand the delegation of Hong Kong manufacturer Mr. U's party, which will com ise 16 representatives of Hong including manufacturers linself, will leave by air about

pril 20

Shanghai Markets At Standstill

General Hsuch Yuch, who was Ineldents already have cropped The

accompanied by General Yu Han-up indicating an undercurrent of mou, Director of the Canton Paci dellance of the Acting President. cation Headquarters, and General For instance, the delayed release Chang Fah-kuet, Commissioner of the Young Marebul," Chang for Hainan Island

Hsuch-lang. and General Yang maintenance

on his arrival, the route from the serodrome to the Provincial Guest

House being picketted by Gen- darmes with fixed bavonets, ma A promise that Dr. Sun Fo will clarify the political situation at a press conference, probably on Secretary-General of

Shanghai, February

Shanghai gold and foreign currency block markets were complatoly at a standstill today and quotations wore unobtainable as the ro- sult of Mayor K. C. Wu's ronowed ban on clandestine transactions.

a

Winston

The vessel will be in dock for Civilisation's Greatest Chal about one month for the complete lenge.

Churchill Has, You Can Hardly Ex-

overhaul,

The accident occurred during heavy fog between Foochow and pect Again In Your Lifetime Amoy, A report from the vessel To Read Such An Epic.

said that she hit an uncharted submerged rect.

Bow plates were buckled and. the vessel took in water.. The damaged portion was, however, scaled off to prevent water spend

ing to other parts of the ship. One report said that the ship's fuck

tanks were damaged and that

considerable amount of fusi oll was lost.

At no time, however, was the vessel in danger of sinking....

THE WEATHER®

BEGINS ON MONDAY

Their Finest Hour"! By Winston Churchill

HEROIN HAUL

San Francisco, February 4. Dr. Sun's plane was accompani-Fu-chang and the.

John V. Spirale, 22-year-old ed by a military escart aircraft. of martial law in areas far away Security measures were also taken from the wor zonos."

On direct orders from the May have shrunk considerably both in

merchant seamen caught hera-with This situation fits in with the or, the police today kept à close Shanghai and other war-affected

110 ounces of heroin, was 'Ben- Universal appreciation of Chin- watch over business in the down-parts, local cotton alls have. At 0800 GMT (1 pin OT) & modeylenced, today, to live years in, a

'ste, salt-syclone dominating China la Inter- ere politics that a title does not town area and posted special other outlet than Bouth: Chinn. · j

places. Should the Government close altring and extending, and B. Deore Federal, prison and fined US$1,000. strategic

He was arrested on December 21 put one in power but it is a squads at Question of whather tha men Operators lay low in their offices this only outlet, he declared, the loss over the sum of firms to the BE of

from the freighter Hong Kong ... under you are, your men, and left the market entirely to consequences will be dianstrous. Tokyo are moving NE. Preure la he tried to take the package * 17 And Body's Forecast-Moderate Easterly Transport. Narcotics agenita direct and Indirect legitimate as the entire alton, industry willtirely low over. Indo Chitw

in

ex-face bankruptcy,

winda, cloudy, with drisale or light rali value the horoly at 1521,000,000 transactions to which ex-in Canton, the Kwangtung specially night and early morning, after cutting for retall Asso

Qoyarnor; Hauch Yuchaald. pening voider and. Improving later. porters are paid for their ship

clated Prosa," more Tatlerday's Weather pain -- ments abroad and importers must that the arrival of

which Government personnel carrytrig Maximum: 91.9 dry. Fab.. President La last night ordered pay for their cargona),

large amounts of gold yuunis Minimum 19.0 deg. Fah. quie of his closest advisers to fly zoomed to a new high of 700 gold

resulting in morious inflation in Sunshines 0.1 hour. to Talwon cu Friday to secure yuan per US. dollar, pers

Mainfall± 0.5 mi.=0,02 Inch Total ́einge the release from detention of the One broker belleves that gold

the provinos.

Jan, 1-2,5 mm.—0.10 inch 24 ugnings bare, though not traded, - were At his first press conference be

an average of 14.3 mozzi.81 inches. ་་ quoted, at 70.000 gold youn per naked Nanking to lindt! currency

14 pan

Sunday, was given by Mr. Chen Young Marshal

the Kuomintang, when in his capacity as spokesman, he said that he is unable to Indiente. either the plans of Dr, Bun Fe or the Cabinet-Router

ISOGAI TAKEN:

Younh Marshal,. '*

7.The release; of the Young Mar- |'ounce and the T.9.dollar.at | transfers. Southward the ants neses at mal¦

markot

Wind Direction

1019.8 1018.0 m.h.

ON OTHER PAGES

|Pärg. 25A

PWD. Larceny. Caso,, December Shipping.

Dangerous Goods, Charge:

45% az deg. V.

Fago 7

17. 10 knots.

TO TOKYO shal, who was hivolved in the around 1.100. On the operas at 80010 ou 10.12 10.06 inch | Page 3

Sian Incident in 1940 when Meanwhile the Nationalist Gov yun now is selling a Humidity Tokyo, February 4 Generallssimo -- Chiang Kai-shok ernment authorities reported US11. Lieutenantanera ansuke was kidnapped, was ordered con- en mat promised reconsideration Governor Hsueh stress

stressed the Dow Joint Isegal, wartime Japanand Gov. gurrently, with the cadential of the recent ban on the South necessity for removal of feudalism wing For orner of Hong Kong, arrived here decree giving freedom to all poll ward shipment of cotton textiles and authoritarianism from: China's today, in company with 281; other | tical, prisoners. NANG In response to protesta from the political fabris which he descri Japanese to begin serving man- The decree is understood to textile industry.jpg agreed as badly docured and seeding tense In -Bugamb : Priem Aano- have been ignored by the Gov localication magnato anal, that habilitation Xpeuter, and; faso=| Low ciated Press

ernor of Talwan, General Chelg, arcemarkete for outton" textiles yelated Item

Hong, Kong, Defend Pago 8

Motoring Págo..

| Paro":1497AA

Week-End Sport

No arrest had been made up to into hour last night

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