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THE CHINA MÀU

FRANCIS WU'S STUDIO

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CHINA MAIL

No. 34259.

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HONG KONG, THURSDAY, APRIL 21, 1949.

20 CASUALTIES IN

Effective Reply, Admiralty Says

London, April 29.

repited effec. The Admiralty sald today a British destroyer tively to heavy artillery fire as it steamed down the Yangtse British elong hit by Hiver fram Nanking to aid a grounded Chinese artifiery.

The destroyer, HMB Consort reached the sloop, shelled and Bounded about 80 mlios below Nanking, the Admiralty sald. chine The brief Admiralty statement said "the Consort has under heavy fire from field artillery to which she has replied effectively.

The Admiralty did not say whether the crew of the Contort suffered

Casualties. Nor would a spokesman claborate

any

in any way on the terae communique-Associated Preas.

Decision Due

Today On Telephone Rates

Do the words "existing charges for subscriptions" in the second paragraph of section 40 of the Telephone Ordinance 1925 include all the ratos, annual rates and chorges set forth in the schedule to that ordinance, or which are If not, which for the time being in force? of them, if any, are excluded? This was the question submitted to a Board of Arbitrators for determination yesterday by the Hong Kong Telephone Company Limited and the Government.

r

The Board of Arbitrators, a dividend of eight per cent a year comprising Mr. John McNeill, on the pald-up capital for the. barrister-at-law, appointed by line being of the Company. the Hong Kong Telephone Company Limited and Mr. P. D. A. Chidell, Assistant Com- missioner, Inland Revenue De- the appointed by partment, Hong Kong Government. served their decision until this listening to after morning. submissions from both sides.

The case for the Hong Kong Teli phone Company was present et by Mr. Eldon Potter KC, s- sisted by Mr. H.G. Sheldon KC and Mr. D.A.L. Wright (instruct-1945, d_by

Mr. R.A. Wudeson Deacons).

Mr.

L.R. Andrewes, Crown Solicitor, and Mr. A. Lonsdale,; Crown Comsel, represented the Government,

Ensign Still Flies On Grounded War Vessel SHELLS HIT CONSORT

SHANGHAI, APRIL 20.

AT LEAST 20 BRITISH SEAMEN WERE KILLED OR WOUNDED TODAY BY UNIDENTIFIED CHINESE SHORE FIRE ON THE BRITISH SLOOP AMETHYST, PROCEEDING FROM SHANG- HAI TO NANKING ON THE YANGTSE RIVER.

The 2,000-ton warship was afire and grounded on Rose Island near Chin-

kiang, Yangtse hot spot. in the sizzling Chinese civil war.

or Nationalist.

It was not known definitely whether the shore batteries were Communist The Communists line the North bank; the National- Neither was it known whether the British answered It is believed, however, the guns were fired by the

ists the South. the shore guns.

Communists.

The British destroyer Consort, according to a naval attach in Nanking has reach

ed the burning Amethyst. The British cruiser London and the frigate Black Swan plowed upstream from Shanghai to the scene.

Consort has also been damaged by shell are in the lower Yangtse River today and suf-

fered casualties to its crew.

Details of the damage suffered by both Amethyst and Consort are still unknown here. Only brief Rudio messages of dramatic attacks on British warships on a peace mis- slon in China to protect Britishers have been received in the Nationalist capitai. Running a gauntlet of Red fire from the North bank of the Yangtse River 15 miles East of Chinking. Consort this afternoon sighted the Amethyst but was unable to ren- der assistance.

The point where the Amethy st had run aground is reported to be bristling with the ar- tillery of several Red armies poised ready for the expected offensive across the Yangise into South China if the peace talks collapse at midnight tonight.

21

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Price: 20 Cents.

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Tel. 2148

AMETHYST

Princess Elizabeth, carrying flowers, je bade farewell by the

traditional

posy of Spring

Dean of Westminster after the

had attended the age-old core Dean of Westminster after she Maundy Money at Westminster Abbey.

Anzac Day 7 Be Marked In

Govt Rejects Red HK On Sunde

Peace Ultimatum

Nanking, April 20.

•

The Premier, General Ho Ying-chin, told the Chin- ese Parliament today the Government had Communist proposed peace rejected the agreement in its present form. The Premier said the Nationalists had asked the Communists to reconsider their demands for immediate surrender of the Government..

the Communist de. especially National peace delegates in

mands for a military crossing Peiping have been instructed

of the Yangtsé River and oo. convey from Chinklang, mat to

cupation of 10 places South o' the river and formation of ar entirely Communist-dominated political consultation confer ence and a coalition .govern. ment.

La

After a short while Amethyst However, before these ques - tion could be considered, the

First reports to British naval, talled to find the British warship. 1

Nationalist alr reconnaissance got under way again, sailing in words and Interpratation of the

consulate EQurces here

a Western direction. hut Com- have been ordered to "existing charges for subscrip.

said Amethyst suffered heavy planes the lower Yangise formunist artillery units immediately tions" in the second paragraph damage and "many casualties." search

re-opened bombardment. 1aces of the vessel. of section 40 of the Telephone Later

The fate of the vessel Embassy British Qrdinance 1926, had to be de-

spokesman lo Nanking Raid According to the Headquer that time was not known. termined by the arbitratore.

known casualties totalled 20

tere spokesman Amethyst cantat 11 am, the Second Naval bomberd Squadron

Headquarteir sent Communist Events Roviowod

under He did not know how men.

this 6.00 dead.

o'clock ment if

gunbont downstream looking for were any, Mr. Lonsdale, opening for the many,

batween Kowan and Amethyst morning events Amethyst carried reviewert

comple-

two Yang two

Reporta Banklangyin, Government, which led up to the present pr-

ment of eight officers and 140

two-thirds sub- North bank strongholds, recent Amethyst He said in September men, the Nanking Naval Al-

by Communiat merged, were discounted in Nan- ly captured bltration.

following An application tache said.

king. Reports here said she is sit- of from the Company, charges were

ung on the bank, of the river and increased by 50 per cent under

is not lower in the water than she should be. the Defence Regulations.

in

In 1947 the Company again re- presented to Government that the

forcon.

at

Whether the shore Are came from the North or South bank Communist fire came from the of the river was puzzling Bri-direction of a small place called Suma and was witnessed by the Nationalist 51st Army on the South bank.

tish sources.

rates and charges were insuf- cient, and submitted accounts in Got Clearance

The arbitration was held public in the South China Morn-support of their Ing Post board room.

representation.

75

After some negotiation Govern. ment offered the Company per cent

The Amethyst was flying the Union Jack when she came under British spokesmen said she

are, according to officers of the The questions referred to 15-

pre-war increase on

51st Army. bitration by the Hong Kong Tele.

hit the vesse charges for business telephones. had clearance from the Chin-

ese Government, for the trip.

After she was phone renow

Company were:

per This was later raised to 90

been stopped and hoisted the white warships have British turned now existing charges "Are

cent, but both offers were for subscription Insulliclent to

down by the

Govern- plying the Yangtse regularly toning. Company.

Thinking Amethyst might be a main- make provision for the

then

further Nanking asked for

United States warships have Chinese warship, the 51st Army tenance of an efficient service and ment

be-gures, and accounts for the first

Immediately com-

and the payment for the time be-

Govern- ing of a dividend of eight per cent half of 1948 were supplied. After stayed off the river since the civil Headquarters

war lines reached the Yangtse municated with Chinkiang

should be what action asked a year on the paid-up capital for studying these figures

that the

Company banks. the time being of the Company: mer

Meanwhile, the spokesman of taken. which did not

ant

ment found was making

in the event of the answer of Justify Guy Prints offer of 80

the Company's question being per cent. Negotiations then broke 'yes', to what sum or Fums should eff and the Company gave notice

that they would submit the mat the said rates of subscription be

ter to arbitration. Increased to be, in the opinion of the arbitrators, adequate to pro- vide for an efficient service and

STOP PRESS

Shanghal, April 20.

fire

A naval statement saved tonight here said: "H.M.8. Consort, coming from Nest- king to her assistance, roach. the the

where ed

spot Amethyst was aground on the North side of Rose Island, but owing to acillary was unable to stop and render assistance. She has now are rived at Kiangyin with number of wounded on board. "HMB Black Swan has join. od the Consort there and will be able to render medical assistance. The Black Swan has an board doctors, equip- and medical supplier mont especially embarked Before leaving Shanghal-Reuter.

•

Nanking, April-20. The latest unconfirmed ro ports received in Nanking ratiopa tonight sald 20 British from the sloop Amethyst hád been admitted to Chinasa naval hospitals in Chinklang district.

casualtios werR About 28.

suffered by the Consort she ran the, gauntist of the

Red fire set of Chinklang today.

Chinklang report, hald tonight that

·Pasiftortion. Headquarters sent out a résosim patrol to

ас

Throughout the negotiations was working on Government the assumption that the counts supplied concerned puro. ly lawful charges, but susplatan of the then arose that some

which the charges

rates and and Company was making were not

tho in strict conformity with Defence Regulations or with the Telephone Ordinance.

A letter was sent by Govern- ment to the Company's solicitors asking whether in all the corres- It could be assumed pondence that the figures of rates supplied In the accounts were based en- tirely on charges which the Com- puny could lawfully make to sub- scribers under the Ordinance. Neither an admission nor a denial was given.

munist

months. for severa!

the Chinese Second Navy Squad- As the Second Naval Squadron ron Headquarters at Chinklang had no knowledge of the move. today announced it believed Comments of Amethyst, the 51st Army artillery this morning was told that there was no Chin- sunk the British sloop Amethyst, eze warship in that vicinity.

A gunboat

The 51st Army, therefore, did was sent by the from Chinklang to not give Amethyst covering aro Squadron rescue Amethyst, but, so far, has from the, South bank.

No Devaluation Of

HK Dollar--Govt

Government yesterday discounted current rumours of an impending devaluation of the Hong Kong dollar.

ول

Consort Message

the Government's answer to the Communists at once, he said.

Tense Chinese gunners on both sides of the Yangtse River awalt- ed the order to commence firing.

cil-

and

thle

Tribute will be paid on Su day at 10 am. all over: world to the glorious dead, matchless bravery of the gi

Australian wa

men of the

New Zealand Army Cor who 34 years ago on Aprill lagded at Gallipoli,

The guns of the Royal N covered this Immortal landing men from the Dominions, helped silence some the int clerous fire that met them 19°1 predetermined landing polite From 'a combination of G names of these Corps, the, farb abbreviation formed..

of ANZAC A

Wreaths will be laid at Memorial Service to be held the Cenotaph on Sunday will include the following a

Representatives of the ANZ Day Committee, The Austrið Government Trade Commínetde The Hon. Agent, for the Góve

to avoid bombard- The official source said the hended by Acting President L Service Association's

by

The government answer

It was not yet decided, accord- maxed 20 days of hectic negotia- ing to the same sources, whether tions in Pelping and was given on

the government will release t the day set by the Communists as the press its instructions to its Vice-Admiral A, C. G. Madden, the deadline for the Nationalists peace delegation but release will ment of the Dominion of N be certain if the Communists Zealand, The heads of the Art

lutioned in

the Cald services second in comman of the Bri- to reply to their peace ternis.

made them public on their radio. tish Far Eastern Fleet, is aboard

Observers are now closely

Members of the Consular Co The government decision was MS London.

from Concert have watching the Communist reaction

finally after three long and other Trade Commission Messages

Representatives from British & whether which will determine whether the made

meetings yesterday not yet made it cleur

be negotiations would

New Zealand tralian and morning of the 11-man committee Amethyst la aground because she | Peiping was holes or because of trying to colled off of

Tsung-jen.

Prayers will be offe which is vested with manoeuvre

government peace delegation will

authority in mont.

directing the Right Reverend Monsigneur highest continue British naval

the peace Authorities stay in Pelping and

negotiations with the Ferold, Vicar General (R,

tho and

Reverend Mr. H Communists. Nanking doubt the 51st Army's negotiations as long as it is per- holsted mitted. This apparently was de-

General Wu To-chen, one of Lipcombe, SCA, who will report that Amethyst the

fag white

elded upon to place the odlum

the 11 mambers, flew by special read the Recessional,

will be the a of breaking the peace talks on the and think shahoulders of the Communists. bombardment

plane this afternoon to Canton which there the warshto ran up anos

hit rejection was

to report to Kuomintang leaders two-minute silence in memor The government White Enalge in an endeavour

there on the peace talke. Gen- the fallen in two World W to have been embled in the

oral Wu carried back a copy of Also to participate in the Metho to indicate 1, ship's identity,

al Service will be the Reginted form

of Instructions to the gov-

the government Before Consort reported con-

rejection of

Band of the Buffs and detal fact with Amethyst

the Communiat demande. this after-ernment peace delegation in Pel- ping this afternoon for Immediata

ments of the Royal Navy, CU noon an RAF plane on a

Communists. It

Regiment, and Royal Air Ford weekly Nanking diplomatic shuttle

by any was not as direcl

Accompanied communication or appeal well as Nationalist Army recon- dir nakasanco planes and a Chinese to the Communists.

Responsible official sources said Navy gunboat joined the search.

was couched

during

the

Hong Kong-gular delivery to the co

reconsider

It is understood however that the rejection the Chinese unbont did not ven- "very polite" terms. They said It ture Into the .area where informed the Communists their was found, an area 24 demands, as they are, cannot Amethyst which is considered by Nation- be accepted in toto and asked alist forces to be bristling with the Communists to

their attitude. Communist artillery.

Foreign air observers late to

with Consort xchurging fire

below the shore guns 16 miles spot where the sloop Amethys

The rumours are officially described as "Irrespon wighted the British destroy

sible and unwarranted".

A Government spokesman added that the Colony

rosts on a sure basis of financial security.was hit earlier. He also danied reports of a contraction in the noto issuo;

After referring to a letter dated April 14, 1949, from Government to the Company, Mr. Lonsdale ald Government had all along worked

under the assumption that it was asked to revise the Inwful rates and charges.

Govt.'s Interest Government had more than one interest in this matior. First there was the question of royalties to which it was entitled on half of cupation. any pronts of more than 12 per

All Hong Kong currency notesness." cent. Next it had to protect the

above the value of one dollar aro public.

What the Company was apply-issued under authority from Gov- Ing for was an increase not only ernment by the three note-issuing

Hong Kong banks-the on lawful rates and charges but

The official statement on the deposited as security for their

[note issues. subject yesterday added:

the

13sues A

every note

:

Flag Still Flies

-

Counter-Proposals

The sources said the govarn- ment aleo submitted so me concerning counter proposala

The Weather

The observers, who were not Certificate Issued named, "The Colony's currency. In

said the destroyer was:

AL-6600 GMT. (1 sm. KXST)) depres linked to sterling. Since 1935 "For

issued by proceeding toward Shanghai with on which has formed F. of the Ryukros British murkings plainly expected to deepen and move ENE the Hong Kong dollar has been them, the note-issuing banks are her

From it a weak trough extende W in the maintained at one shilling and required to surrender to the Fand visible,

both before and sterling to the full face value. Both North shore artillery and Chine cost thenes BW to a shallow Tonkin and three pence

the surrender of the small arms fire was directed at stationary depression" - over

Elentry pressure gradiente Japanese oc- Against following

sterling, the Financial Secretary the British warship, the observers Yunnan,

are weak and ill deßned..

mederale evorted, certificate of Indebted-

Today's Forecast:-Light or The observers salt Consort,

forming again tonight bit even clearing "Bince 1918. the Exchange which left Nanking this morninda from Bauarter. Mist or fo Fund has accumulated by way the, may have stopped to pick up tomorrow otherwise fair spart from early

omrning showers, of surrender of aliver and the casualties aboard Amethyst.

Yesterday's-Weather - The observers sald Consort may deposit of aterling and of In terant on the funds deposited be firing to rever itself as it pro Maximum 11,6 day. Fah

Banship: 1.8 hours. sufficient to cover not only: the seeds downstream towards Shang-Minimum: 12.5 deg. Vah. entire note issue but also thoas hal..

Jan. 1-££6.3 mm./16.87 the r Rainfalls 4.2 in.0.17 In." Total ainee , irregularly inued by the Japan.) "

against an average of 240,4 cae during the war.

9.40 Ing "Since public faith had been Currency plodged by the use of the normal "The Hong Kong Ordinance of 1935 established an issue, even by an enemy, these were honoured in control latter notes.

and also an charges that were not Shanghai Banking Corporation. the Chartered Bank of India, lawful.

and China and the Mr. Lonsdale said within the Australia

All the note after the Marcantile Bank short time available

ountant Application, the Ac issues are fully covered by ster- the ling. General went to

Telephone Company to make in- The Nationailut

vestigations Into the accounts.

bring to safety mix. Briven

saliors from that? Améthyst, reported to be near Vañahung. #trategie'. Island town 16 miles, Kast' of Chinklang re ported to be under Dämmunist

altackRouterBAPA

From their plane the obber. 1 vera asid. Chere was no sign of activity alpard Amethyst. The aloop was still flying itu dago, they said, That Indicates the afbop had hot been abandoned. Baro, at mal

[Re), Rumidity.

Dew Point of the exchange and Shanghai Bank, at: consider

*eported

Wind Direction that earlier in the afternoon Con Wind Force so that it might be ascertained to value of the curreday and subject able loss to public funds and to what extent the charges made by tu audit at all times. All the note the Bank been rumours of sort, attempt to contact other Tidest=" the Company were lawful or un-Issuing banks surrendered to this There have beers

Fujul all the silver coin and bul-e contraction in the note iste.. Brillah vessals by radio,

(Continued on Puge 10) lawful

ton which had previously bown The truth is the revalve.” Continued on

He said he would make an ap- 14xchange Fund under the the | KFIFement with the Hong Kong "ard", RE\OP" WHR observed" in the

plication to the Board to enquire of the Financial Secretary into the accounts of the Company maintenance

on Page 141

cinity of the sloop. Bellar Minthorities

High

Lage

L

Reading st 10a.m. 4 1.295.

1b14.1 10111 MB,

quei

15.95

24

11 deg. F.

M

SW

knota.

1015

4.0

1.8

(Continued On Page 2)

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