1949-09-28 — Page 1

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CHINA MAIL

No. 34396.

*

ESTABLISHED FOR MORE THAN 100 YEARS

HONG KONG, WEDNESDAY, SEPTEMBER 28, 1949.

Price: 20 Cents

DEVALUATION DEBATE OPENS S'hai Evacuees In

Government's Policy Explained By Cripps

PROFITS TAX INCREASED

London, September 27.

Sir Stafford Cripps, Chancellor of the Excì equer, today opened a three-day debate in the House of Commons on the Govern- ment's devaluation policy.

Suspension Of Imports From Japan

Issuance of further import licences in respect of goods of Japanese origin has been suspended

pending clarifica-

tion of the situation arising from the devaluation of the pound sterling.

The withdrawal of Import licences, however, does not

'effect shipments or goods that have

been placed On board thipt at Japan by midnight, September 26-27.

In cases where part ship. ments have been made, the

conditions will apply to out- standing balances under axist- ing licences.

The six banks, authorised

handle Japanese trade have been advised not to accept docoments unless they have proof that the conditions have been fulfilled.

goods that

Importers of

have already arrived in Hang Kong or that have been ship. ped in accordance -with the

conditions mentioned, will be permitted to make payment * the rate of HK$402 to US$100.

Bevin On

China Policy

Parliament had been specially recalled for, this debate on the Washington financial decision.

Sir Stafford said that a halt had been called on the tendency of increasing separation in the economic sphere between the Western demo- cracies.

"This association was in rison, Deputy Prime Minister,- grave danger of being made were accompanied by several ineffective unless We could other ministers.

bring the dollar and non-dollar economies into a more healthy relationship to one another, the Chancellor said.

loars

The Government case is under- stood to

prevailed have

largely attended meeting.

מו

the

Sto

The Conservative leader, Winston Churchill, and his "Sha

Mr.

Sir Staford said that Britain | dow Cabinet" were awaiting Sir was not concerned with any more Stafford's speech today on de- or gifts, the Government valuation and the Washington was concerned with creating con- talks before deciding whether ditions by which it could attain they would oppose the Govern

dollar-sterling balance through ment motion. the ordinary channels of com-

merce.

:

The Liberal Party today an- it would vote against the nounced He said that the Government government. was most anxious to make some

A group

of five independent real progress towards the wider-Labour members of parliament ing of competitive trade. But it all of whom were expelled from was out of the question at pre-the Labour Party-today pre- sent to extend this to countries sented

the an amendment to with really hard currencies.

government motion. fer a vote of Sir Stafford stated that Britain confidence conden ming devalua. hoped soon to forward coN-

to put

tion-Reuter, structive

proposals to the Or- ganisation for European Economic

Co-operation in Paris for getting Attlee Refuses

rid of the restrictions now ham-

trade pering

between MITENCY areas which do not require set- tlement in gold or dollars.

He said that the Government decided on devaluation only after 13 very, full review of the situation.

Dollar importe could not have been cut down further without breaking contracts and creating grave unemployment.

Profits Tax

Sir Stafford announced that

Information On

Russian Bomb

After

General Gordon

nor mal raunting Immigration procedure, arrivals aboard the Gen. undergoing the eral Gordon wait nonchalantly in the Tounge to disembark Many gather together to while away the time by exchanging reminiscences~~(~China Mall" Ph to).

REDS HOLD

"HOSTAGES"

FOR S'HAI EVACUEES

For every one of the 1,200 passengers who arriv

Mr.

ed in Hong Kong from Shanghai yesterday, the Chinese Communists have held a "host-

age" in Shanghai, Mr. Randell Gould said yesterday.

Gould, President and Editor of the "Shang- hai Evening Post and Mercury," came to Hong Kong aboard the ss. General Gordon,

Communists would allow one to the Nationalists, completely

"

es-

He said that before the jerament in Shanghai is, compared European to leave Shanghai, bonest, but their officials, London, September 27. he had to find a European; pechlly in the lower echelons The Prime Minister, Mr. sponsor who would guarantee certainly do lack intelligence and

know-how. Clement Attlee, today refused to accept any financial res-

"Shanghai's recent experience departing under the so-called People's Gov- to give the Opposition leader,ponsibilities the. Mr. Winston Churchill, any European had incurred

ernment has been in considerable further information about the In addition, the Communists degree epitomised by the Ameri recent atomic explosion instated that if the European who

can-owned

Evening Shanghai Russia

had left was discovered in the Post and Mercury,

of the Communists, to For the first three weeks after Amid loud Opposition cheers opinion.

that

a

case

from today the rate of prostaMr. Churchill - had - asked in the have committed any crime, the what was termed liberation. our ) tax on distributed profits would/louse of Commons 1 the Print sponsoring European would be newspaper and the city in general,

enjoved tranquillity, be increased by one-fifth-from Minister had a statement to make liable to accept any prison or fine

on the development of the atom that the People's Court imposed.

"We had stayed in the hope. 25 to 30 per cent.

- Mr. Gould added: "In other bomb by Russia.

disciplined and bonest re- New York, September 26.

warned industry gen- He also

Mr. Attlee replied that he had words, the Communists have tried

label, under whatever Britain will make no aterally that if there was any fur-

might provide improvement over tempt to interfere in China's her breaking away from the not, adding, "I do not think it to handcuff the thoughts and ac- choice of government, the Bri-luntary limitation of dividends he would be in the public interest ticns of departing Europeans by the obviously bad Nationalist re- Certainly tish Foreign Secretary, Mr., would consider himself at liberty to make any further statement at making a European friend re-ge which had left

beyond the statement maining in Shanghai answerable Ernest Berin. told the Unit- to restrict dividends in the next made on September 2" for the actions: and statements of Communist army was and is

On September 23 Mr. Attlee had announced the news of the atomic explosion in Russie.

budget.

has Gove

The Chancellor warned that the keeping policy

incomes arising

present

Replying to further questions world-wide publicity, when he

ed Nations Assembly today.

the departed European after he has left Shanghai "But," he added, "China

Mr. Gould, who received entered into certain international down obligations which must be hon-out of

profits wages or salaries

Mr. Attlee said that the Governas locked up by employees of

ལྟ་ oured. A wise approach to the must be strictly observed.

Mercury Increased profits arising from ment had made their policy per the Evening Post and

believed that handling of these problers will

during a labour dispute three be in the interest of all con- the alteration of the exchange fectly clear: they

rate should not be distributed by there should be intėvuation weeks after the occupation, ↑ way of increased dividends, Sir control of stomie energy.

When Mr. Churchill asked if claimed that the the government Stafford said.

the matter could be debated when in Shanghai was not Communiistic, Parliament re-assembled for the but rather, was complete anarchy autumn session on October 18,

Completely Honest Mr. Attlee replied, that if on re flection it was considered useful be would

the give certainly

cerned.".....

Referring to Dr. T. F. Tsiang's sppeal to the Assembly last week on behalf of Nationalist China, Mr. Bevin said:

Chinese

**The plea of the delegate merits full considera- tion, but I do not propose" at this time to discusi, the detalis of the problem which it raises," Mr. Bevin then continued.

"There have been many coo- quests of China, but no cop- querors, each in turn has been zibsorbed by the Chinese people.

Higher Wages

Only in

cases exceptional

He added: "All right, I quickly

could there be any possible ex-gestion full consideration, sug-admit that the Communist gov

cuse for going forward with a

A Labour Member, Mr. Ray-

claim for higher wages if an mond Blackburn, but the follow

increase

"Does the Prime statement imply that

w23 given the ing question:

to lower-paid workers the differ-Minister's

ential between their pay and the atomic bomb has been de- those of higher workers could veloped by Russia?

જ આ .. not be maintained.

An inflationary spiral, he said, "Modern China has been sorely could only be avoided if both tried.

From 1931, she suffered prices and wages were kept down. from Japanese -aggression and Sir Stafford also warned that when the Japanese were defeated, the reduction of the exchange elvil war divided her. My gov-rate was no miracle working de- ernment will watch events in vice.

China very closely." "Associated We must not finch from the Press

necessary, economic restraints it imposes upon us," he said.

"We must make a success of it now, for failure would be disas trous and land us in mass unem ployment and a low standard of Living.

"In view of the fact that we have been outstripped by the Russians in the development of atomic energy, will the Prime Minister cause an immediate review of the whole problem to be made?

Meeting With Stalin

Wage Increase Demands By HK Workers

better disciplined.

"No.

about Dne complains that. But after the initial period of honeymoon" 'cur newspaper, ran and the

elty generally,

dictatorship amack up against

which had of the proletariat, not:been forecast in the ad- vadded script of Chinese Com munist intentions,

"Every highly-placed Commun- ist, and Dr. Sun Yat-sen as well had said that Chiria in its present phase was not a proper site for class strife.

Mass Popularity

"But the new Shanghai redime

Diplomats, Correspondents In Gordon

Among the passengers who arrived, hereby the SL. five General Gordon were ambamadora, a British Minis ter and a number of Press correspondent and photo- graphers

Ambassadors for Afganistan, The diplomats included the

Siam, Canada and`Argentine. The British Minister is Mr. Lea. H. Lamb..

Included

The journalists Mr. Randall Gould, President and Editor of the "Shanghal Evening Post, and Mercury," Mr. H."Lieberman, Sof the "New York Times," Mr. Leslie Smith, Kemsley Newspapers Mr. Harrison Forman of the London "Dally Mr. Seymour of Associated Press,

Mr. R. Doyle, at "Time" and "Life" and Mrs. Doyle, Mr. R. Gulitain, of "Le Monde," and Mr. H. Cartier-Bresson, will " known French, photogapher.

RAF Bombers Collide

In Mid-Air

All Kinds of

Portable TYPEWRITERS

AT REASONABLE PRICE

HONG KONG TYPEWRITER EXCHANGE

9. D'Azuilar St.

Communists Fifteen Miles From Kukong

Cant

September 27-~~

The Chinese Communists have reached a point 15 miles East of Kukong, an important railway town 125 miles North of Coaton. According to the Chinese press, General Chen Keng's-143rd Division together with irregular units, advanced Westward from Nanhsiung ond Chihing along the North Kwangtung highway towards Kukong..

They are being engaged by General Yeh Fel commander-of- Government troops 15 miles the Communist 10th Group Anny: General Tang En-po in com-

from the railway.

General Chen's 13th Army is moving towards Tayu, in South en Kiangsi, with the probable intention of reinforcing the Reds on the highway at Nanhsiung, on

South of Tayu.

and of the defence at Amoy few here on Sunday to take ins structions and returned to Amor yesterday.

Optimistic

observers believe that the Communists are busy with the Political-Consultative Conference in Felping which will

General Fat Trees and out

the phons to top-Com-

of Klangsi Province, is

to have moved several

munist politicians and generals

of his troops to Kukong to as- and that Kwanghang may be left sist in the defence of Kwanging alone for a little while-Reuter

The Reds are withdrawing from and Our Own Correspondent.

the East Hunan towns of Anjen,

Chaling and Yuhsien. The reason

for this movement is not

ent

Appar

Nationalist reinforcements have

Peiping Chosen

been sent to Amey, in South East As Capital Of

China, where the first stage of

the battle is said to be over.

A

at Generalissim

military conference was held Chiang Kai-

shek's reside attending were Gen- residence yesterday. Among the officials

eral Pal Chung-hsi, General Ka Chu-tung, the Chief of Staff, and General Hu Lien.

the Chinese press, According to

meeting decided to mobiliser the armed forces in South and Central China for the frst line of defence, which would be Kwangtung and Kiangsi

"""Covinces.

Troops from other parts of the country and Taiwan would be used for Canton the second line of defence,

Ku In Command

As General Yu Han-meu ħax" not accepted the post as Com mander-in-Chief of South China command of the various units in Kwangtung is now i

All},

the hands of General: KuChu tung, the Chief-of-Staff, wao was openly charged by civic leaders here as a defertit and poor combat officer, adds the "China Mail" correspondent. Ta Canton..

Acting President. Li To

Tsung-jen seeking a hasty solution of this urgent problem by consulting General Pai Ching-hst-Liis Te to have sounded out the opinion of Generalissimo. Chiang Kai-shek in their one-hour talk

yesterdayported that Gémerst, Pai

It is

Red China

* San Francisco,

September 273 Peiping has been chosen as the capital of the "People's Republic of China”, the Com - munist Pelping Radio an- nounced tonight, it said that the city will be renamed *Peking, r * This was one.

the decla slons taken by the Commun ist Political Consultative: Cose „ference, now fi plenary, #03/

sian-In-Peiping. The

Conta Tence also, decided only the adoption of a new - QALİBARİ dag, - a temporary „national: anthem as well as the or- ganisational statutes of the P.C.C. and the Repubile içi

[~Tho-new: Bepublic,

self.

"Gribed as 1 State of people's "demberatio, dictatorship i led

by the working ci

Based on an, alitance of. Wor- kers and peasants Router:

Communist

China's Flag

Shanghai, September 27, Commünist China's flag will be red with a large yellow star in the upper left corner

will be asked to map out a staff surrounded by four-smaller plan for Kwangtung, although he yellow stars, pro-Communist is responsible for the situation in newspapers said today Hunan. There will be co-ordina tion between Hunza and Kwang, tung, if the plan of Acting Pre sident Li Tsung-jenis put through

Amoy is sill firmly in govern ent hands

today following 3 repulse of the invaders from Sungyu West of that.

The fisg's design has been ap proved by a committee which will submit. it to the, Peping --zon- ference now under way to form s Chinese Communist government the newspapers said. -

The large yellow star syni Communist Party leadership.. attackers are four classes in Cain laundung farmers, petty, bourgeois and

Army is

It appears that the at Fort cils, 1 small yellow stars represent

The Communist 23th tiaral capitalist,

Tegrouping before Newark, September 27. other attack shortly. Rescue workers, resuming their search at dawn today, rushing down from Fuching to The national anthem tentatively found the bodies of two air- Amoy as reinforcements. An adopted is "The March of Volun men, the remainder of the 14 local Communists in Fikien are teers," a tone which was pop members of the crews of two to concentrate-at Chinking to during the war with Japan

under sociated Pres. undergo Lincoln bombers which collid- ed in mid-air and crashed in

found it an easy path to mass flames over Staythorpe, a small popularity for itself, by, yielding village near Newark, Notting- as Britain's great to labour, and to the mob in hamshire,

air exercise "Bulldog" ended general,

early today.

Before the search was called off:

found itself "Our newspaper: unable to function any longer as

a free American Journal, both be at 2.30 am. because of a thick cause of labour's desire to a fog. 12 bodies had been recoved Hong Kong is heading for sure new and unprecedented from the wreckage strewn over a of official-wide area. The planes were taking and because powers, widespread agitation for wagedom's unwillingness to give legal part in a mock raid on Newark, increases with cost of living protection and fair deal gener- Firemen, rescue workers and showing signs of mounting ally. We quit, but only under police were rushed to the res after the devaluation of the dimoulty because it was desired and worked frantically by the Will he bear in mind that

pound,

The executives of the utility by labour and officials alice that light of torches in a thick fog

we keep on under controls that The mid-air collision was the many people who are violently anti-Communist nevertheless feel

the "China Mail", we found intolerable. Others have first incident involving the loss that the present issue is so grave learns have been meeting dur- not been so lucky as to be able to of life in the whole of the exer-

companies, that President Truman and him- |

Some may still hope for eise which began last Friday quick improvement but certainly evening-Reuter.- demands submitted by their self should not shrink from have the past week to consider quit. Sir Stafford, who has had to conference at the highest workers for an increase in pay, great many owners of substan

level with Stalin?

of nearly 50 per cent tial Shanghai

properties would A1.0550-CHT (1 ̈pm. HEST) Greences face strong trade union doubts

Mr, Attice replied that the The demand has been present- Facific ants-cyclone across fapan and the cost of living, coid that rises answered in the autouncement of company as a lead for the others, the Eastern Bes to another unterlone in the price of foodstuffs were September 23. The second did and it is for the payment of a

The Weather

・fo: high in 4 ridge extending from the about the effect of devaluation on first part of the mestion was led be the workers of one utile, Est out if they could find a way ON OTHER" PAGES

to do so. A

sim-

javer, 27) Chiša. · Presente in relatively low not likely to come either in large not really arise. As for the third | special high cost of living allow/ple or final We do pot even have Correspondence.

in a trough extending from Bam acrONG the China Bex and, Gentral Philippines des. the Carolines...

measure or söɑn.

Perhaps by the end of the year Today's Forecast:-Light variable yinda the cost of living index figures might be up by about one point

Yesterday's Weather

Maximum: 852 des., Fabi:

Minimum: IKA SOL. Fal"

Sunshine; -14 Chokorn, "landa

Rainfall: ta res-0,23 inz. Total since

Jun 1868.2; Jamm73.21. GENİTAL · 28- ÉTerage of 1238.3 mm

Beadings at

Barn, at 'mal 101234910.6 m The Exumis ↑ 479.921229 24 löchen

75 dr. P.

H

1810.

OT SO,

Private Meeting

Government

de-

anarchy.

than

"The situation is still not

Page any true test of Communism, for Page 3 Shanghai is now in complete Reports On Gordon's Evacua parla conference with Marshal knee

tion TripTM Insufficient belief is that eventually Page 4 declared stalin he said: "We have al- our policy and

Barclay's the metter is being disassed in

Chinese practicality will assert The resson given for the Baited America and in the Nations, and we have made pere.

mand, it is understood, is that itself and we shall have better Page 6 ge fectly clear our policy that there

the present rehabilitation times, at least in an economic Far East Food Situation Dark

but this will take longer Page & lowance, is insumcient to cover are to wait

Beit-Kremiin Breach A Source should be international control of atomic energy

the actual rise in living costs.

Mr. Gould said that no Euro

The British-

Mr. Blackburn said that in the Government's action last week Dean was exempt from the Page "Big Three" this morning faced British Government's announce in freezing prices at the top hostage requirement, and that Trade Union Leaders

10 supporters, and potential critics ment reference was made to an ember 17 level, it is understood.

Many people was taken to stem possible fur all of the big Companies such as Devaluation,

Standard all, of devaluation at a private jatomic explosion.

Texaco, Chase Na Pase

Woman Today ther rise la cosis of dally. -nieces-

tional Bank and City: meeting of the 392 strong did not think that this necessarily stiles as a check on labour de New York had to leave European Bank of

Page

1120 Would mands in the

Teen Age Topics Parliamentary Labour Party, implied an atom bomb before the cruciat parliamen |the Government consider. making Both sides in the looming, diy-members back in Shanghai in Page 13

President Optimistic. On "Atom) tary debate on the new ex a further statement on whether pule have declined to comment order for some of the Europeans

。 change rate an atom bomb was implied? or ever to give details, but it to get exist visas e Deadlock

"He added) that even the Con- | Page 15 SAR **I am not Mr. Attlee said: The "Big Three-Prime Min-

is understood labour-has-been

Air, Shipping. Movements ister Clement Affles, Sir Stafford prepared to make another state-assured that their demands are suler officials had to have spon- Cripps, Chancellor of the Ex-ment at the present moment receiving immediate considers sorship, and had to leave, „Euro- | Page 16 Sports chequer, and Mr. Herbert Mor-Reuter.

pean persorinet" behind"

tion:

Discuss

reorganisation

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