1949-08-27 — Page 1

CAMERAS & FILMS

FRANCIS WU'S STUDIO

2, Gloucester Arcade

CHINA MAIL

No. 34369.

ESTABLISHED FOR MORE THAN 100 YEARS

HONG KONG, SATURDAY, AUGUST 27, 1949.

SOUTH KIANGSI IN RED HANDS

Reds Announce Capture Of Chiennan, Huichang STRONG BORDER DEFENCE

(From Our Own Correspondent)

Canton, August 26.

The entire Southern tip of Kiangsi province bordering on Kwang- tung and Kukien provinces has fallen into Communist hands, as the Communist radio in Peiping announced this morning the capture of Chiennan on August 20 and Huichang on August 22.

Revolt In Lake Tai District Reported

Canton, August 26, Nationalist Intelligence re porta tonight anld that 100.. 000 peasants are in revolt against the Communista the Lake Ini area between Shanghai and Nanking.

in

Summer Games At Budapest

Price: 20 Cents

Nina Dumbadza (lalt foreground) world's champion discus thrower, heade the Soviet team during the parade which Inaugurated the university summer games at Budapest, Hungary. The games were opened by Hungrry's Premier, Istvan Dobl. (AP Photo)

********, Chiennan is only 25 miles from the Kwangtung border and Huichong is 35 miles East of the Fukien border. Huichang is also connected by a highway to Pingyuan in North Kwang- tung, while Chiennon is within easy reach of Yungyuon, a strategic town in North Kwang- tung East of the Canton-Hankow Railway. Earlier the same radio said Son Tu 0, about 40 milas North of Foochow, and Haifeng county scat about 70 miles North East of Hong Kong were also captured by the Reds. The latter town was occupied only by guerillas.

the Zard Headquarters of

According to Chinese press re- Army

the and

21st Group ports today, Communist troops Army have moved from South from Hunan arrived In Southern Kiangsund are taking part in and Kiangsi Yungyuan

the fighting there. Yingtak in North Kwangtung respectively, although there is no confirmation of the rumour th vicinity of Tingnan, Langman -A spokesman fok.Marsman that General Liu Po-cheng's and Chiennan, at the extreme and Company, commenting on

Communists advancing

had South of Kiongsi.

These penetrated into Kwangtung.

The reports said that Red

altempts to suppress them failed, The Executive Yuan, meeting here, formed a com. mitice to encourage the pen can! revoitera by every means poesite.

authorised

The fleid commanders are to commission teaders to handik such upria- Ings but the Ministry of De- fence will handle the one It. self if large numbers of men

involved,

ArmB have bsen dropped from planes 15 the revoltérs in

some in. stances already. — Associated Preus.

эго

Proposed Tax Reform For Japan

Tokyo, August 26,

Part of General Lin Flao's armies are said to have reached

All Kinds of

Portable TYPEWRITERS

1

AT REASONABLE PRIČE

HONG KONG TYPEWRITER EXCHANGE

, D'Agullar 81. *

Tel. 21433

Intercepted Ship Returns From Shanghai Run

The 800-ton British freighter. Sin Soon Les return- ad to the Colony yesterday after being turn- ed from running the blockade at Shanghai, by the Chinese. Navy on August 20, Described as being a former British destroyer given to the Nationalists, the naval craft stopped the Sin Soon Lee twice and threaten- ed to fire on the second warning when the British vessel was about 40 miles off Woo- sung,

Mr. W. Burrow, master of the Singapore-registered freighter. reported to the agents and owners on his ar rival that the Sin Soon Lee was stopped at 4.45 a.m. on August 20 when she was about 10 miles North East of Gutz- laf Island.

The Chinese naval craft signall- ed for the identity and destinatleņ of the British ship at a distance away

Apparently satisfied with the answers, thu, Sin Soon 'Lee waN permitted lo proceed <t her Journey

A 7.45 she was stopped again. This Ume the naval craft worn- ed the Sin Soon Lee to turn back and return to her original part of call or they would fre. She downstream was then 40 miles of Woosung,

near Fairway Bell

Marsman KMT Official Denies

Kan's Statement Returned With Cargo Co. Reply Dr.

To Criticism

Manila, August 28.

the complaints of Hong Kong troops, together with stockholders of the five Philip- However, no alarm was felt in Generul Liu Po-chang's force pine gold mines under Mars- Canton today owing to the assur- are attempting to occupy or by-

that the enemy force in puss Kukong on the Canton-Human management, said the South Kiungsi is not formidable kbw railway, North of Canton. company adopted a "realistic In comparison to the stationing They are al present fighting in an attitude" in not resuming min-

ances

The Nationalist authorities at

of four Nationalist armies along area approximately 140 airline the Kwangtung-Kiangst border. It miles North East of Canton, is also believed that any advance

be made Nanhslung have arrested Into Kwangtung munt simultaneously from Hunan and | Communist spies. Klangst.

The Hunan drive was checked! along the Canton-Hankow Rail- wny and on the two flanks. The Intest government success was the capture of Anhua In North Hunan West of the rallway.

The frantic exodus to Ilong Kong during the past tan days was over today, trains and planes) were noted to capneity as they were several days ago. These!

Tax reforms designed to encourage foreign investments who wanted to leave had gone, in Japan are included in the

ing operations, Morsman and Company, said that

Mr. A. L. Vella, Secretary of

aix if the Hong Kong stockholders group "wants to solicit Proxins that is their privilege. We shall The Kwangtung horder, how welcome them to general meat- ever, has been reinforced and ings as we have done in previous troops of the Nationalist 23rd years." army hold the kay pointe in

that three of Mr. Velilla said the mountains, Communist the

mining componles had guerillas ara reported to be received Initial

daniego active In the outskirts of payments totalling 1,500,000 pesos Nankslung, which is on

the but that the amounts represented Kanchow-Kukong highway, in

only

"small portion" of the lon aide Kwangtung,

ses of damage sulfered from war

and the Nationalist success in Fighting Near

recommendations of an Ameri- | Hunan have had a culming effect

can tax mission.

"There are encouragements fro foreign investors to enter Japan, although they are general non-direriminatory." sak Dr. Carl Shoup, Columbia University Professur

internationally Dnd

known tax expert, in muswer t quentirus at u Press conference after the summation of the re- porl

"We hope alt investors, both foreign and domestle, will be encouraged by the recom. mendations," Bald Dr.

here.

Anxious eyes are now direct. ad towarda Lanchow where Generals Niah Yung-chen and

provincial capital. The at-

Hengshan

А

War

(From Our Own Correspondent)

Conton, August 26. Generalissimo Chiang Kai-shek did not receive overtures from Premier Josaph Stalin in 1945 concerning the conclusion of a Sino-Soviet treaty of neutrality and agreement with the Communists to form a coalition government nor had the Genaralissimo told the Soviet ambassador of his consideration of such pro-

· pošalà...... ·

Mr.

She brought back here some 1,000 drums of caustic soda and about 400 tons of general cargo, which she took out when sl cleared port on August 13 for Tientsin.

11

11 was

also reported that the Sin Soan Lee had engine trouble en route from Hong Kong - and originally intended to call at Shanghai for the necessary re- pairs

No Commitments To Chiang, Quirino Says

KM-

Manifa, August 20. President Quirino said in Bagulo that he had made "no commitments of any kind” to Generallesimo Chiang shak during their Bagulo con ference in July on a Pacifie union. AL

the

time, Mr. Quirino announced at a press

..

that Mr. Carlos conference

HEM®

Romula was emplaning for the United States tomorrow to

continue working for the Pacific union project in New York. ork.

In response to reporter' questions, Mr. Quirino sald: "I want to emphatis that + made no commitments of any kind to Generalissimo Chiang. I simply thought, even before

conference, that some=" thing, phould be done to pre- serve the security and pro. mate the unity of nations la the Pacific and we want ahead to implement this idea.” -United Press.

our

Meanwhile, officials of Mollers Limited would neither deny or the Chinese Navy, the local naval Confirm Press reports from authorities said that unless some- Shanghai yesterday that

their one asks for help the Admiralty Moller, hud ship, Edith

been has no interest in their activities. worship? seized by Nationalist

No, information has reached the off Shanghal when attempting to Colony about the whereabouts of run the blockade.

the Edith Moller,

Cheng Yin-fun, Secretary General of the Cen- tral Kuomintang, told this correspondent today that the revelations by Dr. Kan Chieh- hou, special envoy of Acting President Li

"As far a we are concerned, Tsung-jen in the United States, concerning

the Edit Moller is no dange: the Generalissimo's relations with Generalis- and we believe she is operating

In North China waters as usual. simo Stalin are not correct.

Coplain A.J. Kendrick, Secretary It

It is understood that the Bri- company, said when op- tich steamer Leong Bee is at pre- The afternoon papers published of the Dr. Kan made public the di- plomatic manoeuvres between Washington report saying that pronched regarding the "mystery" sent operating in North China waters. (The Sin Soon Lee passed Soviet Russia in there is some hope of obtaining of the vessel.

The official, however, admitted her en route to Hong Kong after China and

"As far as I know I have not heard of any HM Ships leaving local waters for the North," the naval spokesman said.

action by each of the companies. order to show that the Chinese US$175,000,000 all from the Unit that it was possible that the Edith being ordered back.) He said the initial payments wera government adhered to the old ed Statees now under coneldera- | Moller might have been divering

lan

tion of the Senate. Observers say conception of moralty by lining that any aid would come as great by Nationalist warships to some

"but we have up with the United States des- moral support to the Nationalists other port,

Intention of releasing pite Moscow's efforts to win here

any in especially to the troops at

ferraation about the ship even China over to the other side of the front. the Iron Curtain.

Other observers said the White When we establish contact with

No Messages He added: "The Royal Navy hai not sent any company about the Edith Mol- messages to the

ler."

"grossly

inadequate to restore the mines to their pro-war condi- The Secretary said the war damage funds received thus far Pang Teh-hual rushed up rein.: In Hunan, fighting took place "will not go for toward rehabilita- Meanwhile official circles here Paper criticised Generalissimo her." forcements to storm the Kansu between Nationalists and General tion and it will be foolhardy to

it can aid, as news clippings from signed and handed the - govern- tackars ware tired and hungry Lin Plan's 40th army near Heng-start operations knowing that it are still hopeful eventual. AmeriChiang Kai- shok, but he has

shen on

could not be completed and must the United States stated that ment over to Acting President and a ple after long marches

the railway North of stop when funds are exhausted majority of press opinion was in Tsung-jen who should be given toon charging forth

The collapsed Hongyang.

were attempting

He said the cost of machinery, favour of Chlon and critical of American support, through sheer exhaustion to the bewilderment of the defenders, large bridge. After alen-hour equipment, supplies and labour the policy of the States Deport-

batta, the

is now high and "operation under ment as seen in the White Paper 2,000 casualties.

such conditions

leeve In South East Ching, General no margin of profit as long as the Chen Y's 20th army entered the price of gold is fixed at US$35 an Northern area of Taingkiang and ounce." He said it was impossible Huian, 45 miles North of Amoy to depend upon the gold black

a military spokesman said.

Shop Conton Drive

He Hated recommendation. which are hoped to remove ob jections by foreign investors to putting their money inte Japanese industry under the present laws a RE

Of

corporations already are paying under the recom-

35 per

3-Revaluation;

of assets, al- lowing an increase in the amoun! of depreciation.

4Technical reforms" such "us elimination of the 20 per cent witholding tax for aliens residing

in Japan.

Dr. Shoup estimated the "bite"

of taxation out of the total na-

tional income probably would b

between 25 and 30 per cent under!

May Be Delayed

ARAB ALLIANCE

PLAN DENIED

London, Auguet 20.

Offee spokesman

over

Communists

to

Occupy

а

Communista auffored

were top secret.

General Wu Te-chen reported on his recent visit to Japan.

Lungnan's Fall

the

will

Canton Prices Quoted In HK Currency

For

•

Misuse Alleged

Representative Mansfeld, Mon- tana Democrat, urged today that the House lobby committee Inves- to determine whether money appropriated for China aid has been misused, reports Asso- ciated Press from Washington.

Among other things, he told the House the committee should investigate:

"Activities of the lobby now brazenly being conducted in this country on behalf of the National Government of Chinh and certain personalities connected with it.

"Whether American money.... flicitly diverted to private use.. is actually being used to promote now legislation for aid to Chine by which more money would be made available.

rided

market. The Military News Agency con- Armed today that Ta Sul island gold mining handicaps and been Mr. Velilla pointed out that the in Hangehow Bay has been brought to the attention of the 1-Repeal of the excess profita

There is a steadily growing cupied by General Chen Philippine government and that impression in Chinese circles here troops. In North West China, the miners requested some form

Canton, August 26. laxes for corporations.

Owing to the depreciation, 2- More liberal treatment

drive on General Peng Teh-Hul has moved of subsidy to help them rehabill of the silver yuan (doilar) and that the Communist stockholders in regard to taxes on Canton will be delayedt much his headquarters to Tingel, 06 tate. He admitted, however, that silver yuan certificate, many

East of dividends in view of the fact longer than originally expected, miles South

besieged the subsidy prospects currently shops and dealers are again Lanchow. reports Reuter,

Roth Nationalists and Com-

appear dim.

using Hong Kong currency. Fighting has been continued in muntats are throwing large re- the gutskirts of Lanshow in the

"Not Defeatism” ·· Shops used aliver' yuan cer- Inforcements into the Kwangtung- past 24 hours.

The Secretary said if the share-tificates at the instructions of the Klangal border, but the mountain- The Emergency Supreme Coun- holders were anxious to resume government which did not rigidly uus terrain favours the defenders.cil held a meeting today, presided operations company was ban the use of Hong Kong bank-

"doubly so because our stake is as notes. Sellors raised by ten per by Acting-President Trung-Jen. The decisions reached great if not greater. But the incent when they accepted silver

pact of realities cannot be resist yuan. Now the deprec

depreciation of the not defeatism as the Hong Kong ed and to acknowledge realities is silver yuan eats up the

Whether American,money pro- margin. convenience,

merchants

to stockholders assert. Our attitude

help Chins, but slphoned have reverted to quoting their eff for private use, is being used is realistic of the conditions now

to finance attacks on' our Secre- obtaining and when conditions prices in Hong Kong dolists.

One newspaper said that the tary of State and other oficiais change we shall activate vigorous-

Central Bank of China has so ly, Meanwhile the mining pro

charged with conducting our 're- far ciroulated in Canton 10,000/lations with China." Our Own perties are protected and main-

certificatas Correspondent, and yuan

Associated tained in anticipation of eventual 000 liver

which rehabilitation,"

ȧrst tho saturation Press: point. Mr. Velilla sald logon and San The fall of Lungman in South Mauricio companies have not yet

The market rate of one silver Western Klangal was admitted received. any war

damage payyuan certificate is HK$8.05 as Ho said that there was no truth | today by a Nationalist, Army ments. Coco Crove received 505,- against the normal rato of HKS At 9000 GMT 13 p.m. JIKST) a weak in the report or in the suggestion spokesman.

120.48 pesca, United Paracale re- 3.50. The depreciation is due to ridge of high pure extruder thu that such collective treaty was Pacific, anti-cyclone to the Tashou. The designed to replace the existing munists were striking Westward received 507,631.94 pesos in the in hard allver dollars.

The spokesman said the Com-ceived 890239 32, pesos and Buyo war expenditure which is payable Northern depression is moving bilateral treaties between Britain from there toward Klennan. initial war damage payments. He

Sliver dollars are pald not only

Page

2: on the ens hand and Trana Jor- (Private reports insisted, how sald-these sums represented. 30

Correspondence. dan, Iraq and Egypt on the other, ever, that Kiennan had already per cent of the approved war to the army but to turncoat Com

Page 81 failen, as had Tingnan. The damage amounts for each communist soldiers and more to those

who come over with rifies anilsherman" On Bärike three towns, known as the three pany tr

machine, guna. A steady supply of had been

Page 42 Nans, are in an are 140 miles; He admitted loans” “

allver_came from Formosa during

Barclay's Bridg made out of the Coco Grove and North East of Canton.)

United Paracale war damago pay the past three days, and would

Page B:

Speak Warne Maatall Nationa The spokesman said the how ments to two Marsman subsidiar put a check to the decline of the

***The Secretary said the diread SUVOT YURD. Certificates,

Pago 7: Heated that 6,000, Pammunies of the one of SIR HARRY LAUDER

`headquartered? thes two “mining, companies.

The Foreign

the recommendations, compared today strongly donlod Damascus

to about 25 per cent in the United press reports that any plan tAdmitted

States.--Associated Press.

THE WEATHER

"the "ser of "Japan, Pressure remains low

to the the Philippines,

Today's Forecast or moderate

A winds, Fair..

Yesterday's Weatheri... ·

Maximum '88.1 deg, 'Fab,"

Minimums 78.3' deg... PAN.

Sunshine: 10.3 ho

Hainfalls. Trace. ~· Total alnow. Jah, · 1–

1128.4' mr,==$2.11 in. ** mæuisiet me preznao of 1818,3 mm.:$4.75 (ha.

Rendiisien at

16 am. 4.

conclude a "collective alliance" be tween Britain, the United States and the Arab states was under consideration in London.

Reuter.

ELECTION TIFF: 259 KILLED

Aden, August 26.

4. „Rival tribes in French Somalls. land clashed over, local, election

28.0 19.72 inches, results "esterday and":239: were killed and more than 500 injured Before: French troops : restored Forder, dilway reported here today. 5.

Almated.

Irregulare are In Ahs

@distriat varGKwartet

«vinca, and 6,000 14

"of the@river and

in the He unid that t

AKENING.

Scotch

On Other, Pages

Draatio Cuts in UK. Matlona)

Budget

Constitution

Another oficial declared that cargo carried by the vessel was primarily bulk paper.

U.S. REDUCES NANKING EMBASSY

Nanking, August 26. The State Department has ordered a 50 per cent reduction in American personnel in the Embassy hero.

A spokesman sald about nail qaff members may of the 21 leave soon.

Ambassador J. Leighton Stuart left earlier for Washington, Per- The Edith Moller successfully sonnel here will join a large ran through the blockade exodus of Americans trom Red Shanghai three weeks ago. China when the repatriation ship Approached regarding the in- General Gordon docks at Shang- terception of British steamers by hai.-Associated Press,

As the

shadows shorten

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