1949-08-31 — Page 7

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THE CHINA MAIL, WEDNESDAY, AUGUST 31, 1949.

DOLLAR CRISIS PLAN APPROVED IN LONDON

New

Britons. In For Doses Of Austerity

QUICK REMEDY UNLIKELY

London, August 29.

The British case for the Washington dollar-sterling crisis talks was comploted today when the Cabinet gave unanimous solu- endorsement to Sir Stafford Cripps's proposals for

tion. No further Cabinet meetings are expected here. The Prime Minister, Mr. Clement Attlee, is returning to Portsmouth tonight to continue his interrupted holiday with his brother-in-low, Admiral Sir Algernon Willis, Commander-in-Chief, Portsmouth.

Today's meeting of the Cabinet was the first since Parliament adjourned for

the summer rocess a bout a month ago.

Suggestions that the meeting con derel furth

dannenther stringencies 111 their plans [ clós The Hollar Rap WELC prongated by the pinsetier of the Fond Almister, M. John Strneley, und the Fuel and Power Minister, Mr. Hugh Gaitskell.

TALKS ON AUSTRIA SPEED UP

Lonitor, August (29. The Foreign Ministers' deputies of the Derupying Powers in Aus- tria met twire here today in an effort to speed up work 4011 the Austrian State treaty

With only 48 hours left before they are to report back to their Foreign Ministers they agreed an some lesser points, but were not yet in sight of general accord.

On the critical.Article 35 dea) - Ing with former German asseta, the deputies diselused a new So- vle! paragraph providing that the Soviet Government should have full property rights over BBY properties it had constructed or ucquired to assist in working the German assets (mainly the Aus trian oil elds) due to be trans- ferred by Austria,

The Western deputies, led by Samuel Reber, United States. urged the Soviet deputy, George Zarubin, to meet his Government's point by adding a simple state- ment to one of the existing foot- notes saying that all equipment and property connected with the Austrian olleids to be transferred

Mr.

Gaitskell is believed have been called in to discuss dollar purchases of petrol.

Mr. Strachey was assumed to

1 advising on the dollar food! position.

Sir Stafford. who ist Chan- cellor of the Exechequer, and the Foreign Secretary, Mr. Ernest Revin, will leave for the dollar

Talks to Washington

abour the

Hore Mauretania which sails on Wednesday.

The War Minister Mr. Emanstel

Shinwell, and the Air Minister, Mr. Arthur Henderson.

Another dose of musterity for Britain is forecast in the "New York Times",, commenting on the forthcoming dollar-sterling

talks.

The paper sulch: "Despite the oficial optimism voleed here in regard to

the forthcoming GX-

Britain's Proposed Allocation

7

Paria, August 29, The Chairman and the Secretary-General of the European Marshall ald or. ganisation have proposed a UB$250,000,000 allocation to Britain for 1949-50, usually Hlable sources said here to- day.

Molther the Organisation for European Economic Co. operation nor the British delegation would confirm the figure or commant

the proposal today. Britain ori- ginally asked for US$1,518,- 000,000 for the scand year of the recovery.

When this was sinched by six-nation working group

to A proposed $842,700,000, Sir Edmund Hall-Patch, chief British delegale, sold that the Unlled

Kingdom could no1

accept the figuren-Router.

MILITARY AID FOR EUROPE

1

Washington, August 29. The Joint Senate Committee considering President Truman's $1,450,000,000

Forelin Military

Al Bill today approved a sum of $155,000,000 for too's and raw materials for the arms industries

in Atlante Pact_countries.

The

The Joint Committee, the Senate Foreign Relations nad Armed Services Committees, uc-

plorations, there is little expercopted by 11 votes to mine fations short any quick remedy can miment to that cffect be devised next week,

The

an

Committee specified that no funds would be used to:

Bulle (1) Bu

new arm factories in Western Europe.

" is taken for granted that the British itre In for anoth dose of austerity, and that there will be no United States objec (2) Defray the costs of main- the Cabinet discussion:tions to any temporary

disertaining factories or equipment or this afternoon.

mination against dollar Imports 1 (3) Pay for services in far-

other than tories

those of Also present were the Service might, estall. | chiefs, General Sir William Slim,

technical experts from the Unit- Chief of the Imperial

ed States. General Staff. Marshal of the Royal Airpoint Force Lord Tender, Chief of the Air Stall, and Vice-Adnpral Sie

John K. Extetsten, Vice-Chief of

e Naval Staff

Vital Distinction

The "Olg Three-Sir Stat- ford Celpps (Britain); Mr. John Snyder (United States)

“The conversations are INDIA

startin favourably viewed as

for continuous co-ordinatel study Is the three interrated Governments.

the

technicians

hil treeing on the taste facts which will govern the conferences, their mare politically mindes callea- ques are exploring broader Betes which they believe are bound to be touched as the discussions pro-

and

cec

Mr. Douglas Abbott (Canada) will have to draw distinctions between remedial action which could be agreed without refer. ence to the United States Con. greas and that which cannot. Observers paint out that in con- sidering short-term remedies this distinction o vital.

B

Reference to Congress (10 controversial subject, and the period of education of opinion necessarily preceding it would rule But effective action before next summer.

Measures which it is suggested.

S. E. Asia Drain

They feel that the dollar short. age is not the surn total cự Bri lain's difficulties and may well ba a symptom er than a disease.

"The net

of dollars #.go from the reserves of the sler- jing area la not chargeable the United Kingdom, It

is point. ed out. The drain comes large- ly from financing dollar expen ditures by india and much of

the rest of Bouth East Asia.

The rehabilitation of that part could be taken without reference of the world, following the des

to the Soviet Union would becure Congress include the follow-truction and dislocation of World Soviet property.

10

Ing:

War II, has railed for machinery

"Now, with the

Larent of a

Mr. Reber said that it was obylous that

(1) A modiftention, not of and other supplies obtainable only property con- tariffs themselves, but of the ad- from the structed by the Boviet Govern-

soltar area, although ment was Soviet property.

ministration of existing United Britain has put forth stout efforts When Mr. Zurubin failed

States tariffs, and Custonis to

ar- to augment sterling supplies for agree to this suggestion, Mr. Reber rangements so as to ease the poulthem. said that he would accept the So- tion of Sterling exporters. vlet draft, provided that Mr. Zarubin would add a list of the Specille properties to which it re- ferred and would insert a cato- gorical statement that all would be subject to Austrian law.

Mr. Zarubin described this as a useless suggestion,"

After discussion, Mr. Zerubin agreed to re-examine his draft. Reuter.

LONDON REACTION TO TRUMAN

London, August 29. President Truman's references

n his Philadelphia speech today

(2) Certain decisions to stock Communist-dominated China On plle raw inaterfuis at present the borders of these countries either not being purchased by within the relatively near future, Amerlen from the Sterling Area, there are further needs to in- vr being bought ai very low

crease living standards to guard prices.

against subversion."--Reuter.

(3) Conditional release of Bri- tain from Article 9 of the 1941 Anglo-American loan agreement. which forbids trading discrimina- tion against the United States. –

More Austerity?

Djibouti Incidents

Serator To Consully, Chair» man of the Joint Committer, said this meant that Western Europe would got from the United States trails an

raw materials which European fetories needed but had not the dollars to pay for.

The Committee also specified that arins materials would be equitably distributed among the Fact nations.

M

BEVIN, ACHESON ΤΟ HOLD TALKS ON FAR EAST

New York, August 29. Mr. Dean Acheson and Mr. Ernest Bevin hava,

agreed to follow the Washington dollor talks with a detailed review of all urgent political questions facing the United States and Britain. The "New York Times" reported this today in a despatch from its London correspondent, James Reston.

An agenda, approved by Washington, to follow the dol- lar talks, would include 'a survey of the situation, not only in Germany and Austria, but in Yugoslavia.and China- as well, Mr. Reston sald.

"I would also touch

on the distribution of arms, if any, under the United States military assist- ance programme, and the organi- sation of the machinery necessary to administer the North Atlantic trenty.

HK Interests

"For the past two or three years, Britain has left the initiative on the China problem to the United Stutes, but the feeling here now is that the deterioration of the

situation now calls for a review of the Allled position in relation to the Communist advaners In South China.

"Britain fools that in the long runte vital strategic and econo mic Interests in Hong Kong. Malaya and Singapore are bound to be affected, and perhaps even challenged, by the Chinese Com. munists.

Romulo Mum On Asian Union Plans

Washington, August 20. Brigadier - General Carlos Romulo, Philippine AmbasSA- dar to the United Nations, declined comment today

to

- on plans he to formulating

for a South East Asia union. weled about the prov

ject. General Romulo-replied

"No simply;;

comment present,"

He said he is resuming Im- mediately his duties with the United Nation and with the Far East Commission-Asso. clated Press.

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BANGKOK HONGKONG-LONDON MEETING

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Bangkok, August 29, The Indonesian delegation

"One of the objectives of the Bevin mission to Washington will be the achievement of parallel failed to arrive when on ECAFE United States and British policy (Economic Commrsion to Asia to deal with the Communist threat and the Far East) Sub-Com- in the Far East," Mr. Reston con-mittee on iron and steel held its cluded.-Reuter.

frst meeting here today.

Role Of U.S. Troops In Japan

are now

on

It was stated that the Nether- lands authorities in Batavin deli- berately held them up by their refusal to issue visas after the Committee had accepted Dr. Soroso ns a Republican substitute delegate,

for

Dr. Soroso has asked the ECAFE Secretariat to urge

that the delegation should be allowed to move freely In and out of Batavia. He told Reuter that the Jogjakarta Cabinet would in- Yokohama, August 130. struct The Indonesian Republican Connally sald he expect- Lieutenant-General Walton delegation !

con- ed the Committee to

The Hague discuss

Walker, Eighth Army com- ference to

bring up the alleged tomorrow a move by Republi.

**-mander, sald today that obstruction

oilcinis can foreign polley leaders to American

troops in Western European

Japan reduce the

Immed have relinquished most

At its of

meeting share of arms aid from about

today the their occupation duties $1,181,000.000 to $1,000,000,000.

ECAFE Sub-Committee and

elected as Chairman the Indian represen- The Committee is expected to

concentrating

tative, Mr. M. K. Powvala. complete its deliberations within reaching a "high level of com-

bat effectiveness."

Representatives of France, In- the next few days after which it will prepare the Bill and report

dia, Thailand, the United King dom. U

United States to the Senate,

and SCAP Command Allied United States troops here in an Supreme exclusive statement to the Unit whiels discussed the possibility of Powers) attended the meeting r most of the 50 per cent cut In ed Press on the fourth anniver-expanding the iron and steel in- ] Western European aid funds vol- sary of the Allied landing industry in the Asian Zone.

Mr. Powvala

told the He said this was in accordancs mittee that the Government of Com- with General MacArthur's ***

India planned to construct two pressed intention to shift more and more responsibility to the new steel plants, one at Bihar and the other In the Central Pro- Japanese government."

vinces.

Democratic Senators are pre- paring to fight for the restoration

General Walker described the

change in emphasis in the role of

ed by the House of Represent- | Japan-August 28, 1945. atives. Reuter.

Hungarian Attack On Britain

im-

Field Training American troops in Japan have spent the summer months largely

infeld training and tactical exercises, General Walker sald,

The meeting adjourned unti tomorrow.—Reuler.

FRANCE AND THE CRISIS TALKS

Paris, August 29, M. Robert Schuman, the French Foreign Minister, out- lined to the Cabinet tonight the French a2itude

He added that by the end of Budapest, August 30.

1049 the Eighth Army civil af- Matyns Rákosi, Hungary's

fairs team will have been Vice-Premier

ab- Communist and chief, tolay called

fight sorbed by General Headquarters for a

ngeneles or by government organ-

to the forth- against

"Anglo-American

isations.

coming Washington dollar crisis perialis brigands," in an address This will mark a full cycle in talks, & Government spokesman nt the end of a two-weeks

the role of American troops who announced. World Youth Festival Budo-

landed in Japan on August 28, The French Government will pest.

1045, tu begin the first foreign be kept informed of the British- occupation of the country In over American-Canadian talks, which 1,000 years and take over the began with preliminary financial functions of the defeated Japan- discussions Jast Saturday, hc ese government.-United Press. said.Reuter.

Proposals that would assist the under-developed territories of the Sterling Aren to raise their stand- ard of

arc undersino ta #gure prominently in Britain's o the forthcoming dollar talks. in case for long-term solution of the Somaliland, sources close to the Washington are regarded in Lon-dollar-sterling unbalance. Ion as most helpful and en- America is expected to be ask- French Overseas Ministry stated for improving conditions

ouraging for their success,

Invest here tonight, Foreign Office spokesman onight.

in

rather

The festival ended with 10,000 Paris, August 29.

foreign delegates and 100,000 Thirty-eight people were kiI-

massing young Hungarians ed and 154 injured in "local in Budapest's Square of lleroes 10 cidents" at

peace" and "everywhere to work Djibouti, French lake on path to defend the

enriching the exploiters were described who prepare a new slaughter."

"local Bakosi greeted the delegat rangements that would enable rivalries of a reliftious and poll-from the "Capitalist" countries

tical nature between different with "ardent love." He claimed: sections of the population." that

All is now quiet in Dibouti, permy of these had asked permission to remain in Hun-

1

sald

ed to increase overseas ment in such Sterling Area coun- tries, and also to consider

The incidents ars having been due to

to export their dollar-earning products at a con- sistent and reasonable price.

The President's views on the alks are fully appreciated and hared In London, the spokesman

dded:--Router.

such countries

It is prudent to insure rather than to take o chance it will never happen to you.

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the sources added.

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Le Monde, usuilly well-in- "We gintily offer them this formed Conservative evening possibility," he said, "but ud- newspaper, attributed the in-vise them

return to their cidents to a clash between Arabs countries and continue the fight and Somalis on the return to for our common aims at home." Djibouti of Said All Combeche, He concluded by hailing the French Somaliland representative Soviet Union and General Stalin the Council of the French as "the powerful guardians of Union

peace. This body, composed of French Delegates from 84 nations took Government delegates and repre- part in the huge final parade re- sentatives of the Overseas Terri- viewed by Hungarian Govern- tories making up the French ment officials scated on the Union, deals with matters affect-balcony of the Budapest Opera ing France overseas,

House, the front of which was Combecte was accused on his decorated with the flags

of the return of being pro-Arab and United States, Britain,

Russia, anti-Somall in his politics, the France, China and Hungary.- newspaper said,~-Reuter.

Associated Press.

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