1949-09-20 — Page 1

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ESTABLISHED FOR MORE THAN 100 YEARS

HONG KONG, TUESDAY, SEPTEMBER 20, 1949.

Price: 20 Cents

POUND DEVALUATION IMPACT Mighty Brabazon

World's Banks, Stock Exchanges Stay Closed

British Press Statements

London, September 19.

The doors of banks and stock exchanges throughout the world re- mained closed today, as behind them financial experts met to work out their policies following sterling devaluation. Eleven countries joined Britain in immediote devaluation; Norway, Den- -mark, Sweden, India, Australia, South Africa, New Zealand; Ceylon,

Israel, Eire and Egypt.

The finance ministers of Canada and France were expected later today to make known their government's decisions, while many other countries which remained undecided about their future policy were holding or planning early meetings.

No Excuse For Price

Thousands of British tourists holiday-making on the tinent were the first to feel the effect of the Chancellor of the Exchequer, Sir Stafford Cripps*!

the cutting announcement. dollar rate for the sterling from four dollars to two dol- lars and eighty cents.

Rises, HK Govt Says the

"There is no excuse whatsoever for any rise in the "price

of any artictes imported from America, nor indeed from any other gold dollar area," says an official statement issued by the Hong Kong Government last night on the devaluation of sterling

The statement says:-"The Hong Kong dollar is linked to sterling, but it is too early as yet to comment on the effects of the devaluation of sterting from 403 to 2.80 U.S. dollars as among other factors we do not yet know to what extent the European countries and some of the countries of South, America are intending to bring their currencies into line. The internal value of the Hong Kong dollar la, however, unchanged. "But we in Hong Kong have always paid for our con. free market dollars, so sumer goods from gold dollar areas as far as those goods are concerned the effects of devaluation have been completely discounted. There is therefore no excuse whatsoever for any rlae in the price of any articles Imported from Americs, nor indeed from any other gold dollar area.”

Boost In Rubber, Tin Sales Seen

Singapore, September 18. First reaction in Singapore to reports that the Pound Sterling is to be devalued was the belief that there will be a boost of sales of rubber and tin and a marked increase in trade with America, "The prices of rubber, which is now 371⁄2 Straits cents Re- per pound, is expected to go up shortly. cently monthly sales to America dropped from the 1948 totals of 30,000 tons to 17,000 in July, 15,000 in August and 13,000 in Septem- ber as most rubber merchants waited a better Straits price basis anticipated from action on the Pound Sterling.

·

Devaluation is not unexpected possibility of inflation. and there have been strong num- However, most staple materials ours during the last few days that come from soft currency areas and necessities the cut would be about 12 and basic food per cent. Banking sources said are not expected to be affected. tonight that the ratio of the US. luxury items flowing into Straits Dollar to the Pound Sterl-Singapore via open market chan ing would remain the same and nels

to jump in the ratio of the Straits. Dollar - crice-Association Press. the US. Dollar, which is now

with

2.12. would go up proportionately

dévaluation

to

The sources said that the action would also exports and

-be a stimulus

a substantial aid to the economy of Malaya and Singapore.

the

Some rubber sources said that there has been a big flux of rubber Chinese Investment in

during the last year and that up country the Chinese have millions of dollars worth of rubber wuit- ing for devaluation. The imme diate result may

be an artificfil Increase above a natural rise in price for a while and the slight

THE WEATHER

*re

expected

Shautaukok

Merchants Kidnapped

From Belgium, France and Italy came reports of tourists caught in the currency freeze, which stopped them cashing iravellers cheques.

An expected sharp fall in local values of their £50 holiday al- lowances would mean for many that they would not meet their hotel bills.

S.A. Gold

Govt Forces Engage Reds In Kwangtung

(From Our Own Correspondent)

Canton, September 19. Government forces in Shao- kwan (Kukang) and Yingteh, rallway towns in North Kwang- tung, today engaged the 1,200 Communist troops who entered Kwangtung territory in Wang- Rome, black marketeers were profiting by cashing travel-yuan (Yungyuan); on Septem lers cheques at a heavy discount ber 13 from Chiennan,-South- for visitors compelled to return Klangsi, a Cabinet Minister told

· In

to Britain today.

A report from Johannesburg this correspondent this morn

devaluation aning. He said he was not quite. says Britain's nouncement means that the gold

the Reds were sure whether output of Rand mines will be werth 130.000.000 pounds an- regulars of the 14th Army but nually instead 100,000,000 at any rate they are of no

menace to Cantor

pounda

The new sterling value of gold "s 12 pounds 10 shillings an ounce. Although Wengyuan is about $35, the 95 miles North of Canton, there (This is equivalent to

are sufficient government forces official U.S. buying price).

The value of low grade ores if to hold up any big scale Com- munist thrusts, a military spokes- this enhanced,

Mr. A.G. Lamb, Chairman of man said. The Reds are located

Stock the Johannesburg

Ex-at Langsienhs and Patzuhsu in change, said the change should the Northern section of Weng- bring immediate relief to gold yuan county. mines and should assist the flow of trade within the British. Com- monwealth.

of

Takes To The Air

The 130-ton Bristol Brabazon, the world's biggest civil airliner, wings across the airfied at Farnborough, Hampshire, England. It made its appearance before foreign buyers at the at Constructors Exhibition Aircraft Society

British of Farnborough. The "Brab" flew its first: trials on September 4 Later, she took off from Filter, flew cross- at Filten. Bristol. country to Farnborough, made two low-level runs across the field, and returned to Filten. She was airborne for nearly

two hours-(AP Photo).

China May Drop Consideration Of

Taking Case To UN

Canton, September

The tacit admission by the United States, Great Bri- tain and France that they were in agreement on writing off the fight against Communism in China as lost, may lead the Chinese govern- ment to drop consideration of taking its case to the United Nations.

It

On

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HONG KONG TYPEWRITER EXCHANGE

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TOL. 2143%

Surprise Greets Devaluation In Hong Kong

First reaction in Hong Kong to the devalua- tion of Sterling was. complete surprise. It was something that people here did not expect.

Banking circles were generally favourable to the step, which they said, was nothing more than "adjusting our exchange to a more realistic level."

It should have little effect on trade in so far as Hong Kong was concerned. If anything, it should be for the best, they believed.

U.S. dollars on the Exchange Hong Kong's imports from hard currency areas have for were quoted at HKSS and the

same rate was the last two years been mainly which is, of course, higher than

asked for

the new official rate after de

financed from open market exchange, so, that infporters valuation. should now be paying no more than what they have always done for their purchases, bankers state.

bard !

of

As for our exports to Currency arcas, devaluation the pound sterling should channel business back to the banks, un- less a big black market difference develop, these quar-

should agam

ters declare.

Up now most exporters keep

10

all proceeds in the United States, for sale in the open market.

Import and export merchants. questioned by the "China Mail were generally non-committal explaining that it was still too early to form any judgment.

Living Costs They

nor

believed that the change should not affect Ring Kong trade either way, would it raise our prices and living costs.

to any

Prices of manufactured goods rom the Sterling bloc are not likely to be increased areat extent, because most of the raw materials would be available from the Sterling area itself.

Chinese merchants, interviewed by the Ching Mall said it was still too early to gange the effect) of devaluation on Hong Kong trade.

They expect there will be some increase in prices, though so far there has been no change in price tags at the stores.

Sterling Rates

The exchange market Was closed yesterday but will re-open this morning.

Sterling rates are not ex. pected to change since Heng

were

Kong pegged to Sterling, The rates on Saturday 1/2.13/36 selling and 1/2 25/32 buying, both for TT.

Geldsmith shops did a roaring business the whole day long as people rushed to buy gold jewel- lery and ornaments

Ex- The Hong Kong Stock change was stimulated by the de- valuation move, with many issues advancing up to 10 per cent.

Devaluation Reaction In Canton

Canton, September 18. Because of the devaluation

of the pound sterling from US- $4.03 to U.S.$280, the Ameri can dollar this afternoon rose from HK$5.50 20-IIK$6.08. The certificate also silver" yuan jumped from HKS345 to HK- 20The price of gold bar mounted from 315 KAT to. HKS320 a' tael

The American dollar was clear of all others it upward trend when news of the devaluation became known here late in the morning. The news of devalua tion reached bere mostly by lang distance calls from Hong Kong, but money changers used the old rates up to 11 am.

Some drop in the American dollar is likely, as actually the market ct the H. K. dollar is al- ready devalued by about 40 per cent. The official devaluation in London simply puts the official rate on a realistic level and should not cause sharp reactions, a barker told this correspondent this afternoon.

There has been no official announcement of the Conton government's reaction to the Washing- ton agreement by the three powers nor is there likely to be. The announcement was vaguely worded and did not place either of the three governments on record with specific regard to

Whatever change there may be China, but the implication was plain enough.

in these rates they can only be

Prices of American goods may Military observers believe that

meaning was clear that Dr. Koo and Dr. T. F. Triang, small, as the sole factor regula- since General Pai Chung-hsi has

imported goods will be slightly the situation in Human and the enough to indicate that what-the chief Chinese delegate, have ting such change is local supply mark up a little and in general The official rates for U.S. dollars more expensive. The reason is This morning's British press. Canton-Hankow Railway well in ever hope China may have held been instructed to sound out not and demand

the 11-nation Security Council, but In the main, received the news hand, there is no serious menace earlier for support by the three only the other representatives on Saturday were 4,024 selling that the thing. Kong dollar is

Western allies in the United the leading delegations not on and 403% buying, bott TT weakened by the pound devalua devaluation

the to Kwangtung. of the

to be quoted to tion, and all imports are paid in Nations, there is little reason the Council who are now in New The rates pound sterling in relation to

The Military News Agency re-

left to depend on it

York for the Assembly opening. day, after devaluation, will be Hong Kong currency. the United States dollar with ported an artillery duel in the

and 2.80 1/8 As the Hong Kong dollar is 279 7/8 selling No

issues that come before both Most

pegged to the pound, the devalua grim resignation,

tion of the latter also affects the Mi River, North East of Heng made by the government here on

without saying yang. yesterday

Demand For Gold Colony's currency. It is not yet whether there was the beginnings plans to take the issue to the decided long before votes

between United Nations. The only official taken. Private meetings

Reaction in the Chinese gold clear how far Capton economy. jof the real thing.

information was the announce delegates are where the decisions and silver exchange was a wild is affected, as the Hong Kong Vice-Admiral Kwei Yung-ching, ment recently in Washington by are made. Dr. Kod and Dr. Tiang scramble for gold which went up dollar is virtual legal tender here Commander-in-Chief

de The rate

certificate is strengthened as one here it was possible and last week in fore they are able to sound out with Saturday.

indication. makeshift from Taiwan on Saturday on

Canton,

Premier Yen Hsi-shin enough delegations to give them clined later, however, ing that this was measure and not a fundamental coastal petrol escort Tai Chan, said it was under consideration advance indicatiers on whether chance-United solution and that British must made a report today to the Yea but no decision had been made.

Even if the United States, Bri- | Press. pursue a policy of hard work and Hsi-shan Cabinet on the closing entrenchment, wa noticeable in

ino: the Communist poris. Kwitain and France might be willing the British press comment was summoned to Canton on t-to support China, the issue would

The Times" said: "I wouli structions of General Ku Chu-have to be brought up on the floor ARMY GIRL TO DIE have been far better if measures tung, the Chief-of-Staff.

of the General Assembly for favourable vote.

See Pages 7 and 9.

been announcement has

the Council and the Assembly are buying

Bre

A strong under-current of feel- tionalist Navy, who the Na- Ambassador Wellington Koo. that will have to have lot of time be-nearly 20 per cent as compared | The position of the silver guan

a

could

of retrenchment at home bave come first, so that the

guiding hand of disinflation could have played its

its part An restrain ing any advances in wages and Two merchants of Shantau-rices that might threaten.

"Devaluation, however

this

kok in the New, Territories unpalatable truth may be dis-

have been EX+

were reported to have been-guised, is in part at least a prac- kidnapped and carried off scross teal recognition that the people the border into Chinese ter- of this country ritory last Sunday afternoon,pecting more and getting more,

in some of the international e according to a Chinese report.

really The report said that the men, changes than they have whose identities were not revealed, were seen

earned."

in their usual daily Guardian's" View

some of

meeting place when they were AL 9000 GMT (1 pas. #973 the approached by 10 men, tropical starts over the China Ees in

BE of the whom produced arms and forced entred about 140miles Paraceld, moving NW, at 12 knots and the men to go with them. Intensifying. There is no Information, on the tropical depremion to the BW of Iwalims. A shallow depression is mosing NE along the NW coat of Japan. Pressure remains high: over · China and Kanchuria.

The

Liberal

10

the

No Second Front

Frequent reports in locat second about newspapers front

the Fukien End Cheklang coast are not correct. In Fukien the government forces under General Tang En-pa are are and the defensive on gradually losing ground. General Tang's forces were unable to forestall - Communist landing;

Certain Veto

China

has

FOR MURDER

London, September 19. Margaret Williams, 21-year-old

To take it before the Secun-British Army girl, was today sen- ty Council would meet the certenced to death for stabbing her Lain veto of the Russian delega- husband. Sergeant Major Mon- tion is the Council declared the tague Williams in their room at question to be in the substan-Klagenfurt Austria, last July.

She had been found guilty of tive category, And that is the

murder after three-day trial Ιπτά

which }): 7-assification

would fall if China sought to during which the Court heard develop Its case on the angle stories of drinking parties which of threats to world security and led to the incident

The Jury, which included three

In the Assembly, a majority women, recommended Mrs. Wil-

favour Page 2.

Correspondencë.

on Pinglan Island on the might be obtainable but such ac-liams to mercy-Reuter. Fuklon coast 50 miles Bouth of tion would lack the authority Foochow despite ale and naval that would marks Security Coun

cil decisions. "Manchester support.

The

are some officials in ON OTHER PAGES The police were notised of the Guardian" said: "The Govern

Cheklang has been completel Canton, however, who kidnapping and a search was con-ment's policy at home has to be ducted through the eiening but no set to the hard course of ensure under Communist control except taking the case to the Assembly

ing that the reduction, in the Chrusan Island, East of Hang-for the sole reason that it would Page 3...

of Reminders, arrezt has been made yet.

standard of living is effective. chow Bay. So far the land force give China Some believe that the motive That is what, by devaluation, we and navy in Chusan have been not, only airing her

but also to Barclay On Bejdze. able to stave off Communist at- against the Soviet Today's Forecast-Frab End Sz for kidnapping was revenge while

To to escape from it by tacks

bring China's side in the White Page 5 winds. Cloudy, with showers developing others believe that it was for the are recognising as inevitable.

Paper dispute out into the open

These officials believe that would

in afternoon.

--“Yesterday's Weather:---

1

purpose of extortion.

Maximum: $5.2 4. Pak

„Minimum: "18.2 der. · Fah.

Sunshine: 324 "bosts,non

Rainfall: NIL Total Calico - Jan. 21728.2 mm.=KXD4 in. xx Kazipet; ES EverAKE of 18654 x=72ul ins.

Readiness"-

Lern

-

...- Baro, at mál:17:10102 - 1607,2 mk.

fresh inflation would only be t

ensine that this small reduction - A military source said. Ma Kang is not enough. The only way is North of Amoy and Chang Chow

The

Timer"

the opportunter/Page 4.

be of help to China in the long

to it on the

Nations failed to act. Others are opposed grounds that the Soviet and the Communist bloe would follow their

East German Poller To Get

Aircraft, Paper Bays, Page 6.

Devaluation-An Editorial, Page 7 ANSA

7 Devaluation Of The Pound. Page 2

U-8. Biglerasts Visit Formats.

STRIKE IN U.S.

to make up for the higher cost in South Fukien are still in govern even though the United COAL FIELDS

of imports by greater efficiency ernment handa. There was no and lower Pittsburgh, September 19. A coal strike started in West- duction in our own pro-report of the Communist attacks

son Amy up to this afternoon

Diplomats Wait Boviet The "Financial Fennsylvania's big coal wearest General Hsueh Yuch, Governor fields. today.

For Kwanghon, weekly Two large mines-Montour less, for retrenchment in guvern-

issue to bring in the entire Far Page Blind dat for all memorial address this: 133/19.34 inches number 10 of Consolidated Coal rent expenculled exports, for sad the military in Himan and And the Lussians can make Page Position:

Reaction To Devaluation. East into the argument. Company and Robent mine of meat of over ambitious pro Kwanghing are in close co- more

can," one U.S., Position To General As- H Frick Coke Company--were limitation of over closed

grammes of

of capital investment, raseration and can beat back the Uther mines reported miners and for effective incentives Corazumisia. He said excessful official source saldssembly Issues,

If the goverment decides to Page 12.

Finance and Commerce. at mine entrances but company designed to encourage ever suppression of Communism. Te pacials said it, was doubthul they increasing emphasis on exports outres, however, the mobilisation sak the United Nations to take

ould enter the pits for work to the dollar area

of all. "étoris not only of the action, no mediate announce Page 13 Roverment but of the people: ment is expected. It is believed Air, Shipping: Movements, Lirited Fresn

(Continued Dr Page 2) --

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