1949-09-24 — Page 7

THE CHINA MAIL, SATURDAY, TEMBER 24, 1949.

U.S. SENATE APPROVES Parliament To Meet KINGDOM

ARMS AID PROGRAMME Attempts To Limit Spending Defeated

SPIRITED

ARGUMENTS

sereinber

Washington, September

The Senate tonight approved the Administration's US$),314.- 010,000 arms aid bill after defeating all attempts to limit spending on the programme. Vote on the final passage washam 55-24.

Next Thursday

London, September 22,

Parliament will be recalled from hoilday next Thursday for a special debate on the devaluation of the Pound Sterling, the Government announced "tonight w

The session, which was called for by the Conservative. Op. pouttion leader, Hy Winston Churchill, WIT begin"in the after- noon and is expected to last for two days.

The House of Lords will

meet aimultaneously to discuss devaluation.

Government supporters joined the "Conservatives and. Liberals in demanding an early opportunity to discuss de valuation, which some tear may increase the cost of living.

Government leaders will put the full-fiets before a2 meet. ing of the Parliamentary' Labour Party-hearly 400 strong- Immediately before the debate, with the idea of ensuring solid backing for its action.

Sir Stafford Cripps the Chancellor of the Exchequer, will meet the leaders of the Trades Union Congress an "Monday with the object of rallying the full force of the industrial movement bebind him,-Reuter..

British Goods To

२ः

The measure now goes to a conference with the House, which had approved Sell More Cheaply

a lesser amount for arms aid...

Amendments defeated included Senator Walter George's to cut US$200,000,-

000 in cash off-spending and US$300,000,000 in contract authority When the Senate defeated the first part 46-32; Senator George gave up on the second part, saying, "It's hopeless."

Also defeated, 47-32, was with the bipartisan foreign policy | Senator William Knowland's at-line-up to denounce the bill as tempt to shave $100,000,000 of naive and futile. His attack cash spending.

By voice. vate, the Senate de- feated three amendments which would have denied Britain A share in the programme so long as Ireland was partiliomed. The amendments were introduced by Senator James Murray (Democrat, Montana) and were voted en

hoc

They provided that no military furnished assistance should be Britain as long as she maintains directly or indirectly the partition of Ireland and, further, that any agreement concluded with Britain under

the

came as administration leaders made a final effort to rally Bl possible support for the show- down voting.

Senator Cain told the Semate he was voting against the bipar- tisan foreign policy measure for the first time because he feared the arms aid programme might an American Maginet

become

Line.

"We must not be led to think that if we send the Europeans some armament, they will do our Ighting for us. K wir comES, we might as well face the fact the ones that are going to do the bulk of the fight sharply. preparedness peo

arms programme that we are

should include the condition that ne part of any assistance furnishing" ed shall be used, directly or in- H directly, for the maintenance or equipment of British military - tablishments in the partitioned area of Ireland.

He called for stepped-up gramme by the United States in stead of the arms bill.

Democratic Senator Elbert Thomas said he supported the bun because he hoped Western Euro- in defence pean co-operation matters would clear the way for

sbat Stalin, saylogy

In Pakistan

London, September 22,

d. Ibraham kemur should Mr. Ibrahem Rahimtoola, Pakistan's High Com- missjoner to Britain, said here today that his decision not to devalue the rupte country's would mean that British goods would now be Park. But if your altuation is sold more cheaply in Pakistan.

like to have ale meeting with you. I shouté "ilke, te soe” it? held in Waskingtah, >batisfits axnnot be here, Fahpala-like- that it (bs. In-Stockhusen - nors

Mr.

such that it cannot where else,

will come to Moscow.and meet with you.. Senator: McMahon i predicted that Stalin would refuse such an Invitation beatise be could not. ford to let the common people: He

of Russia, know of American friendship toward then on?

Taft's: Argument, se Senator Robert Taft argued that the arms: ald> "bill-would- touch off a world sms race and perhaps be an incitement Russia to win" He said the idea surely would occur to Russia that if the bill were passed it might be better to affack now than

rearmament of await

Western Europe.

The Republican leader, Sena- toe Kenneth Wherry, altacked the programme as antiquated; unrealistic, dangerous. American atomic bomb and lens range striking power. He added that the plan would commit the United States to the gross mistake of all-put ground warfare in Europe.

He said

Since the vote was by voice, there was no indication how the various Senators voted. Although there was a considerable volume

the amendments breaking down nationalistic ber-it neglected the importance of the of votes for when Vice-President Barkley.riers in the economíė and polilie- | *.

Senate, called al felds President of the

and make possible a for a vote on the measure, the United States of Europe. ayes were louder.

The

Bm would authorise spending about US$8.80 per per son in the United States to sup-.

ply military equipment to the non-Communist rations of Europe, i the Mediterranean and the Far- Eart About $8,000,000 is to go to the Philippines.

Final Congressional action. I expected shortly.

Democratie Senater Guy Gil lette warned that the bill

would give another puss to the

Internationzi arms rate, which he predicted would end in war all arms races always where

end.

Citing the magnitude American air power during the last war, Senator Wherry saki. "The (Japanese) Emperor him. Punch Drunk

self stood in the palace grounds and watched the rules of Yoko Describing the Western Euro-

hama and Tokyo. He resolved t pean nations as punch drunk and

stop the

war then and there, re By voice vote, t r Senate tired Out, Senator Cain said it ar

gardless of what happened to adopted an amendment providing would be a matter of years be him. This resolve was made the that at least 50 per cent of the fore the Atlantic Fact allies were last day of May, 1945, and trom gross tonnage of any equipment ready or able to fight in the that time on he was in continu- or commodities

an available event of a showdown with hus ous conflict with his military lead under the programme be shipped sia. He said American industryers, endeavouring to force them in United States vessels.

was 21 months away from the to accept statender Earlier, the Senate had re-ability to produce for war with jected a 46-32 an economy bloc Russia and the armed services ing. It was enough to convince

"Japan lost 86 cities by bomb effort to cut $200,000,000 of cash spending for any aid and the ready. major test

came as members pushed toward the final-vote.

Senator's Plea in closing the debate. Sena- tor Tom Connally and the Be publican spokesmen. Senatock Arthur Vandenberg and John Foster Dulles, pleaded for re- Jection of the cut. "When

to holding

lars here and there

won't be missed," said Senator Connally. Senator Vardenberg called the

greatest

it comes

Rahimtoola expressed the hope that Britain would take this opportunity to increase her exports, particularly of capital goods, to Pakistan b

told Reuter he felt that there would be a sub- stantial increase over Britain's 1948 exports to Pakistan which were valued at about £18,- 055,000.

HASHEMITE KINGDOM DEVALUES

London, September 22

The Hashemite Kingdom (0) Jordan today, became the 25th country to devalue its currency into line with the Pound Sterling against the dollar

Italy had still reached no

no dest- Although her Finance Minister, Giuseppe Ecle, return ed from Washington early this morning and talked with the Prime Minister, Alcide de Gas- peri.

The Abyssinian Cabinet - nounced from Adis Ababa after three-day deliberations that it had decided not to devallie' the the Ethiopian dollar, quoted d 416 to the United

Here are devalua from other world centres

.dollar. reports

KARACHI: Zahid Hasain Governor of the State Bank of Fakistan-declared in road cast that the Pakistan Govern ment's decision not to devalue the rupee was Arm, and final.

PRAGUES Czechoslovakia will gain by British devaluation 'un-1 der a trade agreement expected soon, reports sak, because she will pay compensation for na- tionalised British property on as- sessments made in Sterling

But trade circles" said that Czechoslovakia would” have to eût her prices" to fight" cheaper goods in the foreign markets.

Reprieved Gold Mine

AUCKLAND---Devaluation re- prieved a gold mine condemned by the low price of gold. The Martha Mine at Walhi will may open new that the gold; price has risen.

VIENNA The old rate of 40 schlings to the Pound Sterling held good, with the blackmarket also steady at 55. The "black": rate to the dollar jumped to 31. against 22 two weeks ago,

The military cashier gave 1,600 Italian tra to the Pound-the rate which has been foreshadow- ed as Italy's decisión.

NEW DELHI New Delhi Ra- dio reported that the Indian Gov- from the ernment would. meet in emeri

-on October 5 gency session discuss the current problem.

BONN-Western. "German wait-

33r. Rahimtools' did not think rates between various currencies British imparts that there would be any fall in may again alter.

from Pakistan. "Meanwhic, Pakistán's exports se imports were valued at are likely to earn far more than the immediate loss that may be but £11,859,000 ast year.

The non-devaluation decision sustained through depreciation on is both courageous and wise and the present releases will give an impetus to Pakistan's Sterling balances." industrialisation, because capital goods from the dollar countries flow into the will continue to

same Dominion at the

prices." Mr. Rahimtools said.

"Naturally; we will bave

to

Protest Sent

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Meanwhile, the Pakistan

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Governments sending

strongly worded note to the sioners to decide on the future Government of India protest value of the Deutschemark, re- ing against their unilateral ported to be coming down 20 per action in devaluing the Indian [cent

16/10

19/10

rupet, it was authoritatively stated in Karachi tonight,

BELGRADE — The Yugoslav

Ministry of Finance announced

Red for the Allied High Commis-

increase our expert drive because of the competition that certain of our goods will now Have to face in the dollar area.

Exports. Compromised

"Pakistan's exports

to the tracting party could change the ling will be 140 dinars to the hard currency

areas are com-currency ration without consull-Pound instead of 200 dinars, the Yugoslav official news agency re- pridd mainty-of raw materials ing the other. Trade with

India was at a ported. Reuter. and these would certainly not have benefited from devalua- standstill tonight.

Pakistan banks, which opes to -tier because they do not at.

admit of any appreciable marrow after a four-day we

Under the Indo-Pakistan pay-today that the new "Yugoslzy rale ments agreement, neither con of exchange for the Pound Ster-

will according to an official an

transact any for Rouncement, not "Even if certain markets Pakistan's fute, cotton, and hides business in India rupees "as" ar and skims are closed the world rangements with the Reserve demand for these is so great that Bank of India for their purchase Pakistan will not find it very and sale have not yet been com

incult to keep up their present pleter level of exports.

This followed the announce

exceeding supply,

"Even now, because of demandment that all monetary transae Pakistan has tions through the postal system raw jute to saft currency areas India, have been suspended un-

Mr. Rahimticia felt that the Li). further orders. advantages that would accrue

Oil Compay's Costs Up

uld take 18-21 months to get her entire population that ser to make specific" allocations of with foreign.countries, including shocks of the devaluation.

As the vote approached, the chairman of the Senate Foreign Relations Committee. Mr. Tom Connally, said he was worried over the outcome of the proposal to cut the amount of the bill

00

vent any DOSET

created ated

her

Indo-

London, September 22. British oil de experts figured today that devaluation of Sterling has raised the Anglo-Iranian Oi Company's costs by about £10,- 000,000 a year, one of the biggest

This is because Persia has not devalued her

her currency. The

Company,

in which the Bri- tish Government is, the majority shareholder, has an exclusive oil concession in Persia. Last year its net profits were more than

£24,000,000.

22/10

26/10

DEPARTURES

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For Passage & Freigh Bookings Apply to:

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TAI HANG JEWELLERY Wholesalers of CUT-DIAMONDS

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Today, its shares fell slightly to Liberty Diamond Cutting Works ((Pty) Ltd

render was better than addition, al deadly thrusts from the aif, which her ground forces, 2,100,-

Financial circles tonight blamed surg, were helpless to in- from non-devaluation would out. India for this situation fluence.******

weigh any depreciation in the by India's indecision President Truman declined to value of Pakistan's blocked Ster-attitude towards the new comment

the suggestion made ling balances of about £150,- Fakistan currency ratio. The chairman of. the Atomic

by Senator McMahon, disabi 000,000 with the United Kingdom, It was generally felt that India Energy Committee, Senator Brien

Senator Claude ← Pepper (Florida,it is not realised that the de- had not properly understood the £74. In unofficial dealings on McMahon, urged approval of the Democrat)

The United pres

preciation in value of the entire changed economic situation. Monday they had reached £8 bill intact as insurance against States

It was stated that India's stand when it was thought that devalua- back the Red horde, a few dol the day when the United States 60 to war to pre-1 £160,000,000 is only theoretical did not tally with economic facts, tion would benefit all companies |

overrunning he said, may have to fight an atomic war Westem

Furope and

asked Practically speaking, the de-jute and costen being two major by raising the Sterling price of with Russia. He asserted that "What's wrong then

1. shares stood at more than' £10, 35,000,000 persons could be wiped a sin in the hands with putting preciation will only be on the considerations which India could oil. At one time last year these

mall amount of "those balances re not afford in overlook. out by atomic bombs hidden in

Financial quarters maintained and in 1947 at more than 2112 was lives there so he can help leased by Britain to Pakistan the holds of tramp steamers hair defend his hat and to is in cursiven period

that to save her economy trom-Reuter. detonated in United States har-strange, doctrine indeed to say it

the present rates of re serious repercussions : India will bours and river ports.

is more important to strengthen lease it wil take about 10 years have to make a quick decision, Senator McMahon told the our frontiers. And they are dur to make the entire payment and It is understood that. Pakistan Benste that, after approval of

Impatiens just ~ és much as our one cannot say what the actual had already approached India the arms pill, President Truman own continent or our posses depreciation at a later stage with a view to solving the dead- should send a message to Mar- Laioris."United Press.

would be because the exchange. Lock-Reuter.

gramme the

economic bargain of all time and -Senator Dulles added that it was a mis- take to think the Senate was paying out money and getting nothing in return.

In a surprise attack, Repub- lean Senator Harry Cain, brokę d

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