1949-09-14 — Page 1

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HONG KONG, WEDNESDAY, SEPTEMBER 14, 1949.

CONFIDENCE FELT IN CANTON Brabazon Takes

Coming Battle May Decide Outcome Of Civil War RED SET-BACKS NOTED

Canton, September 13.

Not only the future of Canton but perhaps the final outcome of the civil war hinges on the battle now shaping up in Central

China.

Grenade Thrown At Chiang

An attempt was made to assassinate Generalis- simo Chiang Kai-shek in the Chungking during height of the great fire which swept the city an September 2, the "Chino Mail" learned from u re- luble source yesterday.

In the midst of the con- fusion caused by the huge blaze a hand grenade was thrown at Chinng in bis Chungking home,

Chlang's bodyguards killed eighteen persons

⚫ who were believed to be

the assailants.

The Generalissimo waN not injured in the attack.

Notorious Pirate Chief Arrested

The prospect of an all-out Red offensive has stir- red none of the misgivings it would have done six weeks ago.

The pessimism then pervading has been replaced by a feeling of confidence. Everyone, Chin- ese and foreign, remarks on it; and even for- merly sceptical diplomats ore beginning to wonder whether they did not write off the Nationalists just a little bit too soon.

In the past six weeks the jalan, as making

latement: Nationalists have setired three important successes:

for

1. They have managed survive the crisis caused by the defection early test month nf General Chen Mint-Jen, deputy commander of the Central China front.

2-General Pal Chung-hsi, the Central China Commander, ba

the following

"I am not only determined t defend South China but ever $1 the Communists reached Kukong

1 can, with my spirit and the spirits of thote under me, continue to resist for three can otherwise months;

you

choot me."

Moshal Yen detended Taiyuan, In North China, for more than SİN months against the Coin-

| scorect et lenst a defensive vic-

lory against the Redis West of munists. The Canton-11ankow railway, in

Hunan, doing so at a time when Coastal Defence

he seemed doomed to encircle- inent or retreat.

3-More recently, the Nationa- lists have gained the upper-hand In the political struggle for the South West China province Yunnan, his at a time when at looked as if the whole province would defect to the Reds.

+

to at

To The Air

Price: 20 Cents

Britain drove home her divit sircraft superiority when the

Brabazon 130-ton Bristol thundered into the air for the first time. Thousands of excited spectators cheered as the sight engined silver giant roared off the end of its special' runway at Pilten, Bristol, Gloucester- shire. She is the world's biggest airliner. Photo shows: Her undercarriage is already retracting as the "Brab" climbs into the sky before she has reached the end of the runway at Fliten. (AP Photo).

Recruiting

Of Fliers

In Japan

Tokyo, September 13. American as well as Japan-

ese fliers would be recruited sent The Nationaliste have

from Japan for the fight The to the warships and troops

against the Chinese Commun- of CHIAN South East coast

ists "if things get much the Garr'cons reinforce

of Amoy. Kingman Island, Ping-worse." the deputy chief

the Chinese Mission in Tokyo, tan island and smaller islands.

Minister reganied as

Yorkson Shen told The islands

AAP-Reuter today. jumping-off places for a

ar

Despite the battle now toaning good Jums attack on Talsan.

Communist

in Central China, most people bere think Canton has at least a

Two newly-train arms have nonth to go, possibly even wo

been sent to Pingtan island, which or three,

There are some and they in-is 80 miler West of Taiwan and clude a sprinkling of the diploma-4 miles South fest of Feochow,

The Reds attacked this island tle and consular personnel here- who think there is a chance of carlier in their Fullen drive, but indennitely if were repulsed. notorious Kwangtung Canton surviving pirate leader, Chan Yip-wai. It does not fall in four or five was arrested by the National-months.

The

ist troops near Cunton on If this proves to be the case, ver then the need to transfer the seat Monday, according to

uf the National Goverment to nurulur press report.

Chungking would not arise. Also caught by the Canton au-

People with experience of war- thorities were Chan's leutenant

are hoping it machine-gunner, Tung Fong or Ume Chungking

would not.

prefer Cunton

General Chagen Governor of Taiwan, who is at present in told officials there that Amny, these islands could be defended against attacks from the .mainland.

China

th

General Cheng 'may visit Can- ton short

shortly. Admiral Kwel Yun-ching, "Orient," and some 20 gangsters, wine of its best advan- Commander-in-Chief of the

Sakd to be the ring leader of a

to Hong tionalist Navy, has arrived Kunt of pleates who had pirated tuges is its proximity the s. Kwal Wah, about a month Kong, Chungking, unlike Canton, Amoy to command the naval de. Po, Chan whose nickname was would be too far away to allow fuchtpunt. "Putate Yip," and his brother, frequent visits

to the British Chan Yi-chong used be olony to relieve the tedium of

Lo Beutenants of the well known life there.

Only Inst month, it was rela~ pirate leader and traitor Lee Fu-

tively difficult to get air or stea- kwen during the last war.

Prior to the end of the last mer passage to Hong Kong. Now war, the report went on, "Potato it is easy. In fact, there seems Yip's brother was put to death to be more Incoming than out- by Lee whercas Chan himself going traffic at the moment.

WAS arrested

by the

puppet

Reds Pursued

Kwangung Government for sid-maile, on a room, though de-the Mitary News Agency an

ing with Communist guerrillas.

After

Ir

nounced last night, reports the "China Mall" correspondent Conion.

Mr. Shen said that he had already received offers from 20 American army diers who due for demobilisation soon

dro but

The

for all offers have been pigeon- holed at the Chinese Mission.

He said that over 200 Japanese pilots have already visited

apply for Chinn ser- Mission to vlee. Though their offers have not been accepted, the applica- tiens have been forwarded to the Chinese Chief-of-Staff, General Ku Chu-tung.

time.

to be contacting Japanese alr force officers in Tokyo.

Chinese Warlords

Int'l Monetary

Fund In Favour Of Devaluation

Washington, September 13. International Monetary Fund said today it may be better for a country to change an unsuitable exchange rate rather than 'impose restrictions that keep imports so low as to endanger its well-being and efficiency. Apparently with Britain, in mind, the Fund's ́

Executive Board made this statement in it's report to its parent' Governing Board, which is meeting here in annual session. Discussing the touchy sub-, the most gold and which

OWNE two-thirds of the world's ject of devaluing foreign cur- rencies us one means of over-reserves, Is the principal oppen-

dollar shortage, ent of such

In an analysis of the dollar coming the the Board's report never rehortage problem, the Board said tioned specifically the frequent

an increase in sales to the United suggestion that Britain

States by foreign countries is the value the Pound.

rux of the issue.

It specifically urged that the dollar-short countries:

1-Increase, exports

de-

But there was little doubt that Britain was the main target of its comments since England is one

to

a move

to

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ms. Yochow Runs Blockade With 202 Passengers

The British motorship Yochow successfully ran the Nationalist blockade at Tientsin and return- ed yesterday with 19 foreign and 183. Chin- ese passangers and about 500 tons of North China cargo.

Except for a slight engine breakdown when near- ing local waters, the Butterfield and Swire vessel had on uneventful trip from Tongku, ncarest port to the Communist city.' The foreigners, including 11 Britons, one American,

The motorship is due to enter one Kowloon Docks for repairs to har

Russian, two. Dutch, one Ita- engines, it was understood last lian, and three Belgians, seem-

ed rather taciturn to discuss

the conditions in Tientsin but

evening.

expressed their reller at hav- KMT Official To

ing arrived here.

Among the arrivals are Mr. W. Pryor, Manager of the Kallan Mining Administration, who is business here on a two-week visit, and Mr. W. E. Williams who is also connected with the KMA.

The missionaries include the Reverend D.A. Easton, the Ro-

sevent verend W.B. Den Dubbelden, the

Reverend WI. Koeleml} Father D. Brea

Other foreignera

und

who disem.

barked here yesterday wore Mr. A.J.B. Britland, Mr. W. H. Woithe,

Mr. and Mrs, R.P. Caveer)

Mr. W.G. Webber, Mr. K Mr. R. A. Whiteside, Mr. H.L. W. Williams, ac- Mrs. company oumovsky

her husband, Mr. Misses A.

Pickford

N.V,

Engelbosch,

Misse.

M. Lemaire дли

Tientsin is ut present under- going mass Indoctrination by the People's Government, passengers declared.

several

Be Deported

Mr. Wu Yau-thuen,

tki Committee member of the Kuomintang Bureau for Hong Kong and Macao, who was taken into custody by the poilce on August 21. is to be deported, the "China Mali" learnt yesterday.

Но has in the meantime been released on bail pandtho isaus of deportation order by the Governor in Gouneli,

"Evening Post" Dispute In S'hai Settled

Shanghai, September 13, The three-month-old labour dispute of the closed "Shang- Strict Surveillance hai Evening Póst aid Mer- Foreigners are left alone but cury," American-owned news- pre kept under strict survoll paper, was settled today on lance, Great Inconvenience, the payment of seven and a

normally

x-half months: severance pay to .however,

perienced by a foraigner when labourers and five and a half travelling about. He must have months for white-collar em-

proper "Identification" ployees. ERU NA papers at all reign capital is 13, putting lai employees out.

The bewspaper closed on June ..af Business for foreign considerably restricted. Only es-work. tablished

म

Later, it suspended permanent→ foreign organisations, which have been operating Inly when the Editor, Mr. Randall Tientsin for years before the ad- Gould, felt he could no longer vent of the Communists, have control the newspaper's editorial been permitted to resume trade policy. now but on,

The dispute highlighted a gen- minor scale.

eral labour Upheaval which fol- Chinde business, however, towed the Communist take-over caleging nly for the masses, is of the city, gradually deteriorating, owing to limited facilities. limite

the

mainly

The American-owned Far East- ern Match Company today asked To quote a Chinese merchant authorities for permission to close the city is being sapped of its Its Shanghal factory, because it energy by the prolonged isolation is unable to obtain chemicals and other; raw-materiais from abroad. There is very little exchange Local materials were described as. from the outside world.

international too of materials and

expensive.. The... Company hundred thousands exist pro- decreasing because of the short- emphasising production

it remains isolated age of transportation and labour gressively

costs were too high for profitable goods destined for the American from the world?" he added. market.

A

has Chinese

Lo produce operation. The factory employed Attract private US invest-everal documents and also ob- 500 persons.

The British Textile Mill of ment..

taln guarantors recognised by the

China,

a printing and finishing Administration before he can

and

from

The Yochow left Tangku

on

ers, recently applied for permis- on to shut down because it has exhausted its supply of raw cot- ton. No acciaion on the application has been hatided down by Com- munlat authorities. The mill is still operating a few textile machines with the last of ile yarn stocks but it is forced to meet

Press..

nayroll Associated

He sak that applicants so far have been told that the Chinese Government was unable to accept at the Na-applications "officially"

In presen

of the few countries that has not United States by cutting prices news. How can a city with several | said also its rural market wan Mr. Shon warned would-be devalued its currency since the Japanese rearulte

the end of the war. that

In an obvious argument in fa- Chinese Mission would not

British vour of lowering the back any financial offers they might already have received. curreney, the Fund said:

"A fixed exchange rate is de-

3 Make any necessary adjust- Mr. Shen said that the Mission

country is was checking the bona-fides of sirable as long as

ments in their exchange rate. leave the city as a bona fide pas-company employing 2,000-work- Nationalist forces in West Blu-

At the same time, it said it was the mysterious Chinese, agent able to adjust its economy

senger. further success by who arrived in Japan barly in changes in its real international no less important for the United

"But there are means of paying non gained pursuing General Lin Plan's de-

States to keep its economy oper- your way out," he alleged HA the year and is now believed aconomie posicionale) for munliked eclumns to the out-

"It may be

ating of

at a high level to maintain declined, however, to elaborate o change an country lo

an unsuitable Not everyone, though, is optiskirts of Taoyuan In North Hunan

demand, lower trade barriers, state that it is a common practice. are some who think,

distance of ninety miles.

axchange rate through the mach simplify customs

procedures and. "Oh, you find it everywhere, inery of Fund consultation rather facilitate the flow of foreign in- he added hastily, that Conton's layed, is coming.

than subject its economy to the vestments. The Fund pointed out Their argument is this:

He said that if the Chinese risks of serious deflation and un- that European prices are on the. Once the Reds put on full steam ahead, the "whole thing This setback to the Communists agent was offering big sums of employment or impose restrin average much higher than those September 7. She brought seven sentire

of the United States. would fold up in a matter of n

well-being ali

The Fund said: was surprise to reporters who money. it was doubtful whether one that keep imports so low as

He said to endanger its able to pay. wax few brief weeks.

-Miciency." And, of course, they could wollwerk told four days ago by the that he believed the agent was

spokesman iliary

recruiting on behalf of several, Communists

-- massing were

Chinese

Szechuan warlords in trength for another, attack West Hunnn, the gateway i Sze- Province, of which Chungking is

the

capital. and Kwangsi. chuan, Kwelchow

Mr. Shen Bald

warlords The latest government BUCCELS Shipping

merchants In Cantan

Generul Pai Chung-hs), the enables

General Pai Chung-hsi. were superficially loyal but Gen- believe that with the notorious

eralissimo Chlang was at present in Central Nationalist commander in Hunan.visiting their province in an en- pirate leader and his, gangsters Commander-in-Chief

on the, Canton-

in re now in custody in Canton, anip-China, told foreign correspondents to concentrate

deavour to induce them play in the Pearl River will hela Canton today that he was con- Hankow Railway for the defence main loyal in the interests of a

Arlent of success in the forthcom- at Kwangtung.

unified front against the Com- much safer.

All shipping firms in Canton ng Human battle, adds Reuter.

munists.

that are now preparing to welcome The morale of my troops!

Referring to the reporta the troops who arrested the pirate | very high. They are all anxiou

former Lieutenant-General Hiro leader and his gangsters by pre-for a second victory," he declared.

shl Nomoto, commander-in-chief paring comfort gifts and flags of

He gave three reasons for the

of the Japanese North Chino appreciation, the report conclud-| confidence.

Army at the time of the surren ed.

der, was organising a Japanese

Hid In Village

surrendered, Japan "Potuto Yip" reaped from puppet custody and hid in a village near Canton from where he conducted pirating of river vessels,

The report further stated that be right. the arrested pirntes have been brought to Canton where they

will be dealt with before a mi Pai Confident

tary court.

Firstly climate. Communist General Lin Pino's Northern troops were not used to heat and dampness. THE WEATHER

Secondly-geographical advan- tage. Mountainous areas www GMT (8 p.m. HKBT) the most dimcult to deploy in than Bat country, where recent fent-

had taken place.

people

tropical stort has now reched · typhoon

B of Okinawa, moving WNW al 10 kunto.

in be

Another tropical storm appears loveloping over the Eastern· Carolinw. A.

ot the

that th

(Continued On Page 3)

CANTON AMMO DUMP EXPLODES

Canton, September 13,

he

that

Q

The 48-nation Fund maintains

steadying Influence

มด

change rates by requiring that members consult it before chang ing par values of currencies,

Fund'a talament ON shifting exchange, rates

The

W*>

"The world is now tending to divide into high price markets of countries dealing mainly in in- convertible currencies and low price markets of countries deal- ing mainly In convertible rencies.

cur.

"The dollar payments problem considered highly important in will persist at least as long as

of the fact that the U..these price differences continue."

view of

Transury Secretary, Mr. John

Snyder, at week said the

question. of dovajaing the Pound is one for the Fund to conalder.

Price Of Gold

On the question of raising the An ammunition dump balong-fying force in. Taiwan, Mr. Shen price of gold from its present $35 the Board's report ing to the Ministry of National denied that Nemoto was working an ounce, Defence exploded near the White for the Nationalists but stated merely cited advantages and dis- Cloud Mountain, North of Can- that he belleved

Nemola was advantages,

The United States, which buys smuggled to Talwan from Japan p.m. yesterday. ton, at 7

One person was killed and two several weeks ago

aleri were seriously injured.

Two hundred Inpanese

being trained In Four loud reports and a series at present are bet

Nationalists Canton's nopulace shortly after Natio 2.30 this morning. The noise munists, a well-informed source came from. Wast of the city.

said-today, according to -United No Information was

available Press. The source said the fliers troops would fight the Commun- this morning. It was thought to left Japan by Nationalios

Ammunition sels or Chins be Walther another the in the Hongyang ista Defence Ministry had formulated dump er gandre-Reuter.

plan to deal with an offensive

Intensity, and in centred about 150 miles dwanglung-Kwengsi blog, of smaller ones awakened part Taiwan to fight with, the Chinese

weak anti-cyclone le stationery to the They all had an inflexible spirit N of Japan, with a' ridge extending BW and would never submit to in

Today's Forecast-Llebt variable winds,vasion.

actos Kores to BE· China.

...

Fall and very warm, with sqorning has

19020 Yenterday's. Wanther!-----

Maxlant 88.2 .dog. Fah

Minimum 15 deg. Fah.

„Bunahine:, 11,8 homers,

"He disclosed that while hi

oreo.

| Jan,); + 1——–1895.0 mm.=24.14, 100.`** | flanks,

skulent, un average of 11/48 mm.

Readings at

Com

Corporation planes and obtained vlear to Taiwan as “sugar indus

United Press}

Rainfall | 10.4 mm.6.41 in. Total sine from the Kwangtung and Fuklar BRITISH CONSUL IN engineer. Heuter

plans: CANTON RECALLED General Pal stated that allocated to Hengyang, had at Dekor Canton, September 13. tacked Red concentrations in The British Consul-General - in: Hunan whenever they spotte Canton, Mr. G.F. Tyrrell, has 1838 25.75 inches. them, but most troops movements heen recalled to London by the

were done at night. Foralien. Omice. NavSTETISK

General Pal atramed China's The news came need for foreign aid before it was here's he 1. to itay on and

expected. too late and said that he would be Villerated. AMONGS elcome foreign technical super Mia John P. Oothill the pr Vision of us.

mantativa

and

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