1949-03-22 — Page 5

Page

THE CHINA MAIL, TUESDAY, MARCH 22, 1949.

SOVIET Italy May Ask RUSSIANS ASKED TO

Treaty Change ADMIT POLICY FAILURE

ALLIES OUTLAW

CURRENCY IN BERLIN

POLICE FIGHT REDS IN ITALY

Rome, March 20.

At least 12 persons were in- jured in an hour-long gun and

tear gas battle between Commun- Ists and police at Cerignola;

The paller arrested a number of Communists and Left

Wing Socialists on charges organis- ingadeinonstration against the police before Communist head- quarters Cerignola, an offelal unid.—United Press.

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Berlin, March 20.

The Western Allies gave up hope of agreeing with Russia on Berlin's money problem today and outlawed the Soviet East Mark in blockaded West Berlin.

Only the West Mark, sponsored by the United States,

Britain and France, will be legal tender in their parts of the city.

Thus the Allies tied Berlin's The Allies reminded the Ger economy to that of the West mans that when they were issued they are with West Marks last June, they German stute which

of their forming out

three were advised to save them as the occupation zones.

This put West Berlin back on a single money basis for the first time since the East-Wes

war began nini

Currency months ago.

zone".

Df

more valuable money and to do

ant of thele buying with the Enat Marka.

"Even though Germans may not of all their 10 get rkl be able

East Marks, Allied Bnance ex- perts pointed out, they will not be left holding them. They can

use them for shopping ex- currions inin the Russians sector and for buying whatever at fuck cuts be smuggled past

C-

Ball the East-mark, issued by the Russian in the uccupation Th the West-mork, used

Western ones In the three

the blockade out of Soviet Germany, huve been legal tender cupled reas surrounding Berlin. that the In West Berlin.

There were rumours Russians might retaliate to this newest Allied move in the East- West currency war.

The United States. Britain and Frative announced that they took today's netion reluctantly ser:ly after every possibility aЯree- ing on a quadripartitely control- led currency had been exhaust- l,

When the Western Allies in- West-mark into troduced their Berlin in14" months ago, they predicted unt with co-operation. by the Russians the two cur

end function side by

гепги

alde.

Today they admitted that the dual currency tlid not work.

"Failure to reach agreement) (with the Russian). coupted! with the splitting of the city administration and the con. tinuance of the blockade, have meant that these arrangementa have been inconsistent with the smooth ordering of economic

The all-Communist German press curried reports that the Russians might issue entirely new money for their entire tion zone and East Berlin. A bigh East German economic af- Reial denied this report.

оссира-

But some kind of new Russian move was generally expected.-- Associated Press.

Discussion On Closing Of Coal Pits

Royston, March 20, Plans to prevent the closing and financial life in the Wes- of five pils in the new Monck- tern sectors and grave econoton collieries unit, one of the mic and social injustices have largest in South Yorkshire, result, the official announce. ment said.

were considered at a meeting

of National Coal Board officials,

The Western Alessi dide union chiefs and work-

men in this Yorkshire town to set for as the Russians th

day. the curety war. The Russians

The Coal Board has threatened made it crime to possey West-

West Ber-to close the pits in July next un- marks in their areas.

East less the men raise the output and liners

17 8121 PUSSORS

It has been Marks and buy what they can reduce absenteelsm.

have with them, but no one in West estimated that the mines Berlin

required to accept shown losses totalling £750,000

since they were nationalised, East Marks in payment.

That will

have the probable the East Mark effect

of

out of the

aly

rectors. Now Berlin's economy is com- pletely split, Moncy which IS good in one part of the city Ino goud in the other part.

is

Today's action was put off as long as possible in order not to the prejudice the offorts DE United Nations to work out a solution to the Berlin problem, the Allies said.

"Nens that the Committee of neutral experts has reported! future work at this stage does not appear useful, the Western powers cannot delay putting into effect measures which the econo- mie und dauneinl. situation Berlin has rendered long over- due," said the Allied statement.

The change-over

leave may West Berlin Germans holding a Jot of virtually useless East Marks. Each person can trade only 15 East Marks for West. But they

were given a chance to get rid of their East Mark savings by permission to buy groceries and pay rent and taxes: with them for a short period.

Berlin finance experts estimate there are about 400,000,000 East Marks in circulation and on de- posit in West-Berlin in com- parison with less than 250,000,- Ŏou West Marks.

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The men say that the fault is not thels and put the losses down to the pits befug old, bad plan- ning over a long period and out of date equipment.

Rome, March 21.

italy may seek rovision of the peace treaty to permit the strengthening of her armed forces under the Atlantie Da. tance system, reliable diplo matic sources indicated you torday.

They sald Staly Wante Western support for the

ing of military clauses in the treaty,

There clauses ilmit Italy'a post-war army to 230,000 man and 200 tanks; her Air Forca to 25,000 men and 200, fighter planes and her Navy to 25,000 personnel. two battleships. four cruisors and four dos. troyers.

Berlin, March 21.

Brigadier General Frank L. Howley, called upon the Russians last night to admit the failure of their policy and lift the blockade of Berlin.

"Let them shoke the hand which we have never re- fused to give them," the U.S. Commandant of Berlin asserted.

ན

"It must be obvious even to any additional strong steps in the most dense Communist that Berlin. their tactics have failed," General Howley declared. Neither the Soviet blockade at the Elbe nor the ice of winter stopped the airlift."

It

"I have some esteem for the political ability of the Soviels." General Ganeval sald.

"It

be obvious that must Most Italians feel that on- der

would be to their own selfish in- Imitations Italy these

terests to discontinue these fac- would be ailability, rather

ties which have caused move than an effective ally of other nations.-

trouble to them than tɔ us." stronger Western Associated Presn.

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at a

He told correspondents news conference of the three Western

that no Commandant Russian retaliation was expected for the outlawing of the East Mark from West Berlin.

U.S. Cotton

Price For Britain Up

Manchester, March 21. American cotton sold to British splaners by the Raw Cotton Com- A U.S. Anancial adviser ox-

is to be a farthing a ploined that if the Russians de-mission cided to reform their money to pound dearer from today.

of East Marks prevent a fight

In the second list of price re- It into their

would territory, harm the Soviet zone economy visions within a week, the gov- more than it could possibly hurt ́ernment sponsored Commission the Western Berliners,

Fannounces a rise of a farthing a Brazilian, pound American, Anyhow, what bigger counter Sau Paulo, East and West African, measures could the Soviete pos- Argentine, Russian, East Indian, sibly take then the brutal block-Peruvlun, Tungals and Sudan ade with which they attempted Zeidab varieties, Price cuts of two to starve West Berlin," General pence per pound in North Bruz!- Howloy asked.

ilan and of the penny a pound In East African BP-52 are also noti-

The French Commandant, Bried. gadier General Jean Ganeval, expressed the opinion that Rus- glans are beginning to show some signs of politieal wisdom.

Pressed by enrrespondents us

The Commission surprised trulers last Tuesday by reducmp Egyptlun and Sudan cɔtion prices by amounis ranging from one and had pence to four pence per

in the frit

mudweck 640 pm-1 Green and 1lls Pixistand to what he meant, he said that pound

It was m impression gathered changes notifled since it began

the 7.00 m-World News and News An over

past three months operations 15 months ago.-Asso- alymo, ilotulun Relay)

when the Russians failed to lake ciated Press. 7.15 p.m.--Speech by His Excellency se

Bat

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9.30 London

10.10 p.m.-Radio News Reel. (London

Reiny

1.15 p.m.-Weather Report. 10.16 p.m.-Chamber, Morale

Mr. Joseph Hall. President of the Yorkshire area of the Na- tional Union of Mineworkers, inld newsmen that the meeting un- animously accepted a resolution expressing determination to make #maximum effort during the next three months to ensure the 1,45 continued working and reorgan- 'isation of the pits.-Reuter.

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