1949-06-29 — Page 1

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THE BLOCKADE Oranges For POLITICAL CRISIS MAY

BRITAIN AND London Not To Recognise Ban On Foreign Shipping CANTON NOT YET TOLD

London, Juna 28.

Britain has now definitely decided not to recognise the Chinese Nationalist Government's closing of territorial waters in Communist-administered aroas to foreign shipping, it is learned from a usually reliable source today. The decision to send the British naval sloop Alacrity to stand by outside territorial waters in the neighbourhood of Shanghai to aid British shipping if need be is believed here to have been co-ordinated with top level diplomatic policy.

CNAC Planning New Routes

The Chinese National Aviation Corporation is at present planning to inau- guralo two air routes from the Colony.

The new routes will be the Hong Kong-Macno- Kongmoon servico and the Hong Kong-Wuchow 1. Fun.

1.

Two amphiblons Cata- linas have been purchased by the CNAC and trail flights between the Colony and Масло have been. conducted in the past few davu,

It has not yet been do elded when the new alr -service will start.

Emphasis On Economic Warfare

Emphasis will be placed on economic warfare in Marshal Yen Hal-shan's overall plans to, fight the Chinese Commun- ists, according 'yesterday's vernacular Kung Sheung Yat Po".

Quoting sources close to Mar- chall Yen, the newspaper added that the overall plans for ousting the Chinese Communtats and re- taking lost territory have been completed.

Britain's decision has not yet been formally con-

voyed to the Chinose Government.

It is believed that the whole question of the access of for cign shipping to Communist- controlled ports is still being discussed between London and Washington, and between Bri- tish and United States diplo- mats in China.

There is reason to believe that British and Chinese both the Nationalist governments would be glad to avoid a forthright state- ment that the blockade, which the Chinese Government has not yet: oficially described as Buch, will not be recognised

Yangtse

River Overflows

Nanking, June 28, The swollen Yangtse today averflowed its banks and sections of Observers here believe that the Inundated large Nationalist Government has al-Nanking's river front. ready been informally madai At least 1,200 matsheds outside aware that Britain' will not ̧ro"] the elty's North Gale ware spect the restraint on the freedom washed out leaving 3,000 homeless. of shipping.

One wharf collapsed two feet un- der water and the crest rose level with 10 other wharves. The subterranean sewage around the railway station was choked and some streets submerged.

In the absence of a major in cident, such as the attacks on the Amethyst ond the "Anchises, 北 may be possible to "save face" all round by keeping the position ambiguous.

Port Idle

Two dykes in Nanking' uburbs the 330-foot tykes scross the river from Nanking were report-

Berlin's Youth

Berlin's railway strike, which has lasted for 38 days, ended yesterday when workers returned to their jobs. Although rai! trollle has not yet been resumed, alghis like the one above, showing Berlin' youngsters -enting what is to them a delicacy-oranges should he common ones again once the trains start moving again AP Photv.

Shanghai's Price Trend Showing

Of Cracking

Signs

Shanghai, Juna” 28.

ed to have been broached. The Shanghai's price trend is showing signs of crack-

Industrial area In Nanking's

ing after holding steady for nearly three wooks up to the last week-end.. official indication of this is provided by a fourth successive, rise for the value of parity savings deposit units-which is based on the cost of four vital necessities, rice, coal bri- quettes, peanut-oil and cotton cloth-which was quoted today by the People's Bank of China at 395 Jen Min Pido.

of 21

The failure of the Nationallet suburbs was under water maroon- Government describe the roing factories. strictions formally as a blockadni The sudden rise in the water is thought here to derive from

of several The level was the rosult the wish to avoid conferring be- days of continuous rainfall. Tat Bligerent status on

the Chinese authorities called an emergency Communists.

Meanwhile, Foreign shipping meeting yesterday and formed a schedules for this port remain Summer Flood Prevention Com

conduct emergency ed practically at a stand til mittee to

anti-flood measures. today, two days after the an

China The Now the official

Dally re- nounced data for

ported the lowlands bordering) beginning of the Nationalist

■tratch the 130-mile

of "blockade" and

the a wook after

between river

Tungitu and while

Tungtu were also throatoned, This is an increase Thirty-seven danger were discovered mile were

the Anchises bombing, firms increased insurance rates and awaited possible diplomatic developatenta.

No "incident" around the mouth of the Yangtse was reported since the boarding of the EQT- tan vessel Star of Suez lost Fri- day by Nutionalist naval officers to take off a Norwegian pilot and arrest another in the waiting pilot boat,

An investigation Is

in the

130-

to

FOLLOW ECONOMIC SLUMP IN BRITAIN

London, June 27.. Groat Britain is facing an economic crisis and well-informe sources said that the Finance Ministers of the Britis Commonwealth countries have been invited to London, t discuss a drain on gold and · dollar · reservas which is par of the crisis.

So serious is the situation that political experts believe a political crisis

may result and bring a general Parliamentary election this autumn. The decline in stocks, led by gilt-edged Govern-

mont securities, become alarming today in a

wayo of frightoned selling. The industrial LIBERALS

avorage closed at 100.1; the lowest since the dark days of July 1942 whòn the German Afrika Korps threatened Alexandria.

the

The Index of Government stocks closed at 109.37. lowest since September 1040, when this country awaited a German invasión.

COTA-

The drain of gold and Ameri- can dollar reserves, the economie life blood of the country, tinues steadily. Finance experts say the next gold dollar figures, to be published early next month, may be even more alarming.

Dollar earnings are falling off because

use buyers abroad are await ing hopefully for the

pound ater-1. ling to be devalued,

Against this grim background. the United States and Britain are eariously divided on some economic questions.

18.

One le that of converting our. rencias used in trade prchanggo

trada

Railway Strike In Berlin Ends

WIN IN CANADA

The

Montreal, Juno - 283) Prime Minister, DG Louis St. Laurent's Liberž administration was returne to power in Canada's' genera parliamentary election today scoring the greatest landslid victory in the nation's history

Mr. George mier of Ontario and leader the Progressiva Conservatiy Party that was, expected ta- fur ish the administration's greates opposition, conceded a, decify Liberal victory.

foriner

Pro

Berlin, June. 28. Berlin's 38-day rall strike ended today as the workers returned to their jobs and the Soviet directed management At midnight the unofficial return resumed control of the West showed that the Liberals,wIE Berlin stations.

held 125 seats in the last Parlia Traffic did not resume immoment, had elected 182 member between Marshall Plan coun- | «lately. The management pre- and were loading in trice

The other is the five-year pared to direct test runs over the contests. There were 262, cal Fi £1,000,000,000

agrod tracks which had been idle since stake. mant which. Britain signed with May 21 when 14,000. anti-Com- The Progressive Conservative Argentine In Buenos Aires to, anunlat employous walked out.** hnd captured 29 seats and: Nur day, apparently In defiance of Western railroaders sald a few leading in races for 11. They b American protests that it is toe hours work on signals, switches 68 seats in the last Parliamen exclusive in nature and wilt and torn-up trackage was needed The Commonwealth Federati ... hurt Americari ermore, to

to get ho freight. yards in sorvice which hạc 32 senta in ? thế ro -Well-informed sources reported

erty Parliment had elected borms.com **The Soviet manngrutierit snili, 10 that the Government, had asked would have to send Inspection The minor parties were batt didates and led in six constituent the Commonwealth - Finance An

teams

around before allowing ing for 20 ather seats. Tho' Le Ministers here because of the ather inter-sonal freight trainer berals were polling about seriousness of the gold dollar the drain ́and that they probably would meet in London in about

two weeks.

Cut In Imports?

'élevated trains to city's

per cent of the popular vot strike came, Western sector polite, in the 1016 election Mort; ko the signal ending the rail compared with the 41 they polle

stations rwho' manned the

after pressive were their sweeping rain violones had claimed two lives, in Ontario and Quebec, where, MI withdrew. The WREC replaced by

by Drew, backed by the Quebe Soviet sector rail police.

Premier, Mr. Maurice Duplass! Sir Stafford. Cripps, Chancellar

At the big Berlin zoo station National Union organisaton, he of, the Exchequer, may present &

where most of the strike violence expected his Progressive Con plan at the meeting for a drasti

occurred,, Western UGO union men servaves to store decisive vic reduction of imports to save dol- trudged allently back to their tries.-United Press: lars. Political experts said that posts. Their first job was to tear eny such programme to make the down the barricades put up by post-war life of the average Brirallway police and strike-breakers ton even more drab, might com-when mobs advanced

th.c pel the Government to call atstion. general. election this autumn in- They worked alongside of men stead of awaiting the end of the from the FDGB Communist union

when the struck for full pay in Leading members of the West marks,, job security and Cabinet, including those who form

rocognition, Ansociated. Press.

pel

economic policy committee, met tonight at No. 10 Downing Street, the official residerice of

τι πέσει

on

With wages.cf the entire city points per cent on the quotation of pegged on rice, observers said to- 130-June 23, when the unit stood day that the authorities could go stabilising tretch of the dyke. There at 319. One result of the rise 1ocal economy. It they could only present Parliament a year from who did not go out with them!

a long way towards overal breaches but

in commodity prices is that keep the metropolis well supplied these were

were quickly patched up The

had the city's employers, most of with this staple cereal. clvilian population

There was agen lit.Je demand been mobilised to strengthen whom are doing no business,

until the blockade situation is er foreign exchants the embankment.

have Daily in Northern Antwel unti- clarified, will

digi rospects of the import and ox-

uncertain, It sold that the plans have been

flood and reclamation work are deeper into their reserves to trade remuired

Beirut, Jung.28. approved by Acting President

underway being conducted. An estimated mest the June end payrolls, pending the final decision of the the Prime Ministet, to hear a re-

port from Sir Stafford on and 750

Pour airmen were killed when mented entirely on the rice interested powers towards the talk he had today with Mr. W. two syrien army planes collided General Li Tsung-jen and blessed today to determine the where- 105 erecka

been repaired re-

Nationalist blockade. by Generalissimo Chiong Kal abouts of an LST formerly in the canals have

which today stood resulting in the reclaiming of price shek in his capacity as Director service of the Kuomintang

Hime here. The boat was en route 6,200,000 mow General of the Kuomintang.

of land-United around 10,000 Jen Min Pinós a picul, as compared with only The newspaper

from Tsingtao Press. added that, here on Sunday

was broken

about 12,000, on the mid-Juno Informant when radio contact According to

pay-day. Marshal Yen has predicted a off with the Shanghai office. She and was change shortly in the China carries a crew of 35 situation which will be favour bringing in a cargo of coal. It was not known whether she put He was quoted to have stated in at another port or had an ac- that the Nationalisis neglected cident.

able to the Nationallats,

The vessel's operators here! economic warfare in the past in their fight against the Communists, would not comment on the pos

sibility of her having encountered Thla neglect has been mainly

blockade patrol a Nationalist responsible for the present situs-boat. The spokesman said merely tion.

that radio contact with the boat! Marthal Yen was reported to was broken off and it was not have added that the Communists own where she was at present are already feeling the resulta of

the Nationalists closure of certain No Comment

puris

The newspapers informant add- ed that Marshal Yen has declared that plans for the defence of South China were not enough.

There must be plans for holding both South China and Central China against the Communista. Such plona have been completed he added.

THE WEATHER

AL 0400 GMT 13 p.m. HKBT)

.

Irrigation

Canton Waits For The Generalissimo

left

Normally, a picul of rice costs) the equivalent of between five and

·States dollars, but rix United owing

mainly to shortage, stands now around $11.00.

According to observers, unless

This state of affairs To quickly remedied, ali hopse of reviving wilt Shanghel's export trade vinjah as the high cost of Inbour will insitably cauco a sharp rise in the price of Chin- eto export products and place them out of the remahr of forbign businessmon.

Dumping Goods

TO INVESTIGATE PASSPORT. ISSUE

Canton, June 28, The Control: Yuan this mornin moved to investigate the

Foreig Ministry practice of issuing, paan ports to unqualified applicants

It was charged that since. (Apri 1, more than 100 diplomatlė pasi ports, 100 official passports an 500 unofficial passports had bac issued, and that the holders

Meanwhile, more than 3,700 Averell Harriman, American Am-while landing, at an airport near official passports worn using then -Damascus,—Associated Press. for private travel-United From male and female Shanghai mid.bassador for the Marshall Pla dle school and college studanta The Cripps-Harriman talk con- have been approved for enrol cerned the dispute over currency ment in the People's Liberation Army by the Southern

pedition Bervice Corps, it reported today.

Ex-rtibliity in connection withi

Wa

Of this number, 1,700 will join the forces operating in South Eastern China-and-the remaining 2,000 will be assigned to units pushing towards the South West

(Continued on Page 13),

Welcome Relief For New York

among Marshall Plan coun tries. It was understool that the Cabinet orted Sir Stafford fully in

In oppositi

to American Ideas in the dispute.

Mr. Harriman flew here from Paris to talk to the American Amissador, Mr. Lewis Douglas,

on the situation. Sir Statford ask- ed for a conference, as soon as ha learned of Mr. Harriman's arrival and he, Mr. Harriman and Mr. Douglas conferred for an hour- United Press,

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