1949-10-20 — Page 1

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CHINA MAIL

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ESTABLISHED FOR MORE THAN 100 YEARS

HONG KONG, THURSDAY, OCTOBER 20, 1949.

NATIONALIST AGENCIES TO

CEASE HK OPERATIONS Central Trust, Banks Removing Cash Reserves

FEAR OF RECOGNITION

The head offices of Central Trust and the Bank of China and other Nationalist government organs have quietly begun preparations to cease operations in Hong Kong and move to Taiwan and Hainan, reports United Press.

C.

Lieutenant-General Sir E. C. Robert Mansergh, Hong Kong's new GOC-IA-C, who arrives in the Colony, today.

New GOC-in-C Arriving In Colony Today

Lieutenant-General Sir

Robert Manserga. KBE,

Their belief in early British recognition of the

Communist regime at Peiping and fear of British agreement to hand over to the Com- munists all Central government holdings in Hong Kong and the New Territories prompt- ed these agencies to speed up their plans to "evacuate" Hong Kong, according to unim- peachable sources.

It was learned that arrangements have already

Nationalist Troopship

Price: 20 Cents

In Hong Kong Harbour

The s. Ocean Pride is shown above at anchor in Junk Bay following her arrival here at 4.30 p.m. yesterday with 150 armed Nationalist troops aboard. Marine Police Launch No. 2 is standing by the vessel to see than the troops are, not disembarked here. The troops were evacuated from Samun, near Mire Point at the South Eastern end of Mira Bay—"China Mail” photo.

Sterling

been quietly made by Central Trust, the Bank Area Deal

of China, the Kwangsi and Kwangtung Pro- vincial banks and other agencies which the Nationalist government owns, wholly or in part, to begin the immediate removal of cash reserves, other valuable possessions and im- portant archives.

ly notified of these plans, and i those who prefer to

armed forces"

acute.

With Japan

Tokyo, October 19.

A two-way trade aange ment

the

British

Captain Refused To Evacuate Nationalist Troops

between the Sterling The adamant refusal of the British master of the ss. Kwong Fook Cheung "to take a chance down the West River without adequate bunker coal and proper pilot" from Kongmoon to Tsam Kong to evacuate retreating National- ist soldiers evidently frustrated plans of the --Nationálist- Armed Forces---

exceedingly High ranking personnel have supplies is been alerted to be prepared to There are no grounds for any as countries and Japan for leave when necessary. All sumption that China stili possex-inter-change of approximately of raw of funds andį £140,000,000 worth employees of the two prin- ses large reserves

and cipal banks have been quiet supplies for distribution to her materiais.

manufactures and possibly food during 1949/50 has been virtually - agreed on, it was learned-here.

The new arrangment: mean increased

shipment of For Sterling Area wool, petroleum rubber and iron ore to Japan in téxtiles exchange for Japanese and steel products.

Sever Reds Moving

their connections will receive i

nine months' severance pay

Those who decide to continue On Kweichow

at their jobs will be given free: transportation to Taiwan and Hal-

aan.

The plans also call for skeleton staffs to remain until the time; comes for a formal hand-over to Communist control.

chow

The Chinese

Communists were moving up to the Kwel

border from Chihklang in West Hunan and continued to bring up reinforcements North of the Yangtic River in Shensi Province in an expected two pronged offensive on Kweichow

and Szechuan.

The Kweichow border thrust was in two directions-from Chíh- king and Tsinghsien. The North-

+

three days-October 15 to October 18the 600-ton British river steamer berthed along- side Pak Ki Wharf under armed guard while negotiations to transport the troops went on between high-ranking Nationalist officers of General Yu Han-mow and Mr. P. W. Grier- son, veteran master of the Kwong Fook Cheung..

All Kinds of

Portable TYPEWRITERS

AT REASONABLE PRICE

HONG KONG TYPEWRITER EXCHANGE

9. D'Agullar Bt.

Tel. 21439

RED REGULARS NOT TAKING UP BORDER POSTS

No regular Chinese Communist troops are *to occupy the Chinese-British border area, Com- munist General Chen Kang told Nationalist officers in Sheklung yesterday to add a More than 1,000 Nationalist soldiers in the Shum- chun area will resume their duties in the Shumchun and Shataukok areas after a two weeks indoctrination and re-organisation course under Communist officers in Shek- jung.

The Nationalist soldiers are to leave Shumchun by rail for Sheplung either today or tomorrow. General Chen Keng reached his decision yesterday morning after two, days of conferences with Nationalist officers from Shumchun, and after having been advised by highest Communist political leaders in Canton.

man

British army light. Infantry patrols continued their davres in the border zone yea- terday, accompanied by frontier police.

The police, who are still in complete charge of the border zone, act as interpreters for the patrols, and instruct the troops on.topographical conditions in the border zone.

Communist guerillas still con- trol the police activities in the Shumchun, Shataukok' areas. ·

Customs Personnel Chinese Customs personnel in the Shumchun Customs buliding have followed the orders of the Communist representatives, who told them last week not to destroy | their records, and to stand by for further instructions from the Can- ton authorities.

A sixteen-seat motor rail car left Shumchun for Sheklung yes-: terday afternoon, carrying two Nationalist officers, and civilian passengers.

A Nationalist officer, who re.: turned from Sheklung yester day, said that the Communist officers had advised the Canton.. government that there was now!

Shanghai Evacuees Arriving

The two British "mercy" steamers Wing Bang (Jar- dige, Matheson) and Sheng- king (Butterfield and Swien) mare due to arrive here tö- merrow with foreign evacuees from Shanghai.

The Wing Bang will disem- bark 150 passengers at the West Point Wharf

and the Shengking will berth alongside Custodian Wharf.

Arrons

the Wing Sang ar.

rivals are 21 saloon, 23 Chin- ese

First Class, three poop and

92 steerage: passengers. The nationality was not specified In cables reaching the local office yesterday,

The ship carries no cargo. No details regarding the passengers abeard the B. and S. steamer were available last evening.

British Doctor Flown Into

Red Territory

no military objection to the A British leprosy specialist ved earliest resumption of railway seva into Chinese Communis service between Canton

andeld terrifery near Shanwe, abu- Shumchun

A Shunchan Communist officer 10 miles miles, North East of the said yesterday that though re- Colony; on Sunday by Mr. A. S. gular Communist soldiers would Hall of the Far Easter Flying not enter the city, a mass cele-and Training School bration would be held for the res Answering a call received from indoctrinated

British mission hospital there. Nationalist troops, when they arrive back in Shume Dr. Duncan Frazer was landed chun under

Communist jurisdic- on the beach near the Red-held own by Stimson sexprave,' the Mare Polo.

Mr. Hall

to

said that the plane left the

Colony at about dawn on Sunday and after

landing passenger he immediately return- ed to Hong Kong.

Planes Make Swatow Flights | MOTION TÁBLED

A British trade oficial stated that Japan would buy at least £45,000,000 worth of goods team Commercial airlines in whichi

five Sterling countries participat- the Nationalist government"has

ing in the arrangement, zainety an interest, particularly CNAC

the United Kingdom, Australia, and CATC are making similar.

New Zealand, India and Ceylon. preparations, But they

are!

These Ave.countries would put- She was released on Tues- "The negotiation went on ton handicapped by their financial

chase

£10,000,000 less from day afternoon. To ensure her Tuesday morning. We refused Trade, and the Chinese traffic

the border, returned condition, and are awaiting a

Japan.

safe arrival in British waters, bona fide gronds, which evident-over

normal yesterday. final answer to an appeal to the en drive appeared to be develop- 5

It is believed probable that an- the master took the Macao-ly convinced the officers. for funda with government

ing along the highway South East- other approximately £40,000,00 Kongmoon route and thence to from the West River we took the "To ensure our safe departure which to effect their transfer.. ward in the direction of Changt worth of trade would be coa Hong Kong. She arrived yes Kongmoon-Macao route which i CB. MC. recently appointed

operations greatly reduced One hundred thousand Nation GOC-in-C Hong Kong in suc- by the rapid Communist march alists under Gercial Hu Chung ducted

terday without incident en now being utilised by numerous cession to Lieutenant-General into South and North West China, man form the sole Government Sterling Area

The bulk of this would be with

small river craft to maintain trade route. countries, not F. W. Festing who returned the normal revenue of the airlines; force in the way of an estimated |

Four principal reasons were between China and Macao,” he the United Kingdom for bas shrunk. The added cost of 300.000 Communists under Gen-participating in the arrangement, medical treatment, will arrive evacuation from those same arcas cral Peng Teh-hui

for example, Burma, Pakistan, given for the refusal of the master said.

to comply with the military re-

Chinese Ships their cash reduced in the Colony by spécial RAF further

The fighting in Kwangsi pro-Iraq, Iran.

quest. serves, forcing them to appeal to vince was centred at Tangan, 100 aircraft today..

Chiang Kai-shek for assistance.

The Kwong Fook Cheung did miles North West of Kweilin. Or- The Generalissimo was reported ficials of the Kwangsi provincial

not have enough bunker coal to General Monsergh, who is 49

to have frowned on the figures government vente old was commissioned in

fed the capital to

A Sterling Afex spokesman make the 250-mile trip to Tsam on the evacuation Yungning in the South United

stated that a joint announce. Kong from the main West River the Royal Artillery in 1929. He given to him say service in Iraq in 1931-33 costs, but at the same time he Press

ment by the Sterling team drport., Fuel was very scarce bi General MacArthur's trade Kongmoon. during which time he was award neither denied or granted the re-

made 2. There was no available pol at the quest

puide the steamer through the dangerous channels and islets route,

10

ed the MC. Instructor Royal Military Academy Wool- he was later wich in 1936-37, appointed Adjutant He was on active service throughout the war mdals in the Middle and

re-

The airlines, it was said, are still; awaiting his decision before they can make definite plans.

Construction work on the new Bank of

of China building here: which now it in the we tion and pile-driving stage

will He was 2 Battery Commander continue. A high bank official said 5th Indian Division 1940 in Er-

that Gnancing of construction has trea: Abyssinia and later the

already been completed, and that Western Desert and for a short it would serve no purpose to halt period he commanded the Air-

construction as bad as we hate line baze depot in Egypt.

General Mansergh was promot. lo hand it over to the Reds."

ed Colonel and later appointed

CEA 5th Indian Division.

In 1945 he commanded the 11th

East African Division on the

Chinese Embassy

Burmese Frontier. later returning Statement

to Command the 5th Indian Di vision in the victorious campaign culminating against the Japanese

in the capture of Rangoor..

General Mansergh: was later Appointed Director the Terri- torial Away and since 1648 has heen Military Secretary at the War Office

THE WEATHER

LAVLEGON GMT (3 pm, HEST) = moder- ate, anti-cyclono la stationszy över China. Deprysalons „áre centred a the NW Hokkaido and to the S at Tokyo, kuch siwing ENE. The topical, storm is almost stationery, shout 250 miles E uf N-Lason

"Today's Forecastianbindomita NE Merinda, freshening in -urposed places. Continuing

Gne and rather warut.

Yesterday's Weatherte

Maxtimore: 112 d. Fab Minimum 71,2 dez. Fab. Sunshine: 8.3 hours.

· Halofall; · Trace. Total ainer Zan. 1– 19617_mm="7.28 inx, as kesinst an

·averume A 26025% romi79.ES INK, ...

Beddings at: 20.220 ;1914

Beunde-* 2934

4 pz.

19126 mb.

25.88 inch

Hal" Räkity Dow "Poizl

Wind Force

8 knots.

Time 0847

Ht.

0221-

SEID.

Defence Cuts Included In Economy Plan

Announcement Soon

negotiators would be "very soon."

which was The announcernent, expected to be made nearly two weeks ago, is believed to have been held up for elification of the various Government by minor demiks

to

the

One CATC and one CNAC ON RECOGNITION aircraft made two round trips: to Swatow from the Colony!

London, October 18. The five members of the Inde-

Labour group

in the

"The Chinese river matorship Wen Haing arrived at Kong: yesterday despite the fact that pendent. moon on the same day. She was the Chinese Communists were House of Commons, have tabled a and only few miles away from motion urging the recognition of similarly commandeered Jeft on the same night for Taam | the city.

the Communist Government of Kong with about 600 soldiers According to passengers who China. aboard." he said.

arrived here from the Chinese The members ure Mr. D.N. The last we heard of her was city, most Nationalist troops in Fritt, Mr. Lester Hutchison, Me. Mr. Lestie that she would be employed on Swatow have already withdrawn, John Plat's Mills, the evacuation transportation be-to transports" which were in Solley and Mr. Konni Zilliacus, tween Kongmoon and Team Kong Swatow's-harbour. These eva-Left wing rebels, expelled from for some time," the cficial as troops were heading for the Labour Party, who recently

Taiwan.

sent a telegram of greetings to The Kwong Fook Cheng

Conditions in Swatow are still Mao Tse-tung, Chinese Commun

ist leader. normal

No date has been fixed for dis- cussing the motion-Reuter

3. The Kwong Fook Cheung is a river vessel and is not suitable for the open ser trip to Fram Kong Forled

4. The route was not very salm

She took on

|

Gunfire was faintly audible at Swatow's airfeld.

It would mean the elimination under the circumstances, She warrived in ballast. within agreed limits of Sterling Hable to attacks by either Rem-several families of the crew at London October 13.

Kongmoon. Area

'dollar' spending, which munist guerillas or pirates. The British Cabinet leaders threatened to cut down Sterling

She is going to dock today or were strongly pressed to in- Area imports from Japan to the

Chinese Navy Agrees * tomorrow,

"Mr.","Grierson "communicated The local agenta, a Ming Sang clude defence cuts in their barest possible minimum.

with Chinese Navy gunboat and Company, stated last evening proposed economic crisis pro-

remaining Tiso United

In the Kongmoon area and ex- that no plans have been made re- gramme, at today's secret Kingdom trade negotiators, Mr. plained the circumstances. The garding her future assignment, meeting of the 392 strong Far-Alan Gilbert, Board of Trade re- oficer' in command. Informedi It is understood; however, that liamentary Labour Party. presentative, and Mr. Douglas

the Briton that he agreed with she may join the Marzo run. Demands were also made for Henley, of the Treasury, will

the fact that the river steamer slashing of costs in the ad- leave Tokyo by air on October 20

was not suitable to make the for The United Kingdom.

Journey Meanwhile in Washington, the ministration of nationalised dustries. The leaders left Chinese Embassy said it had re-t

Australls wool exports to Japan celved from the Chinese High members with the impression that would be increased at least 50 to Military Command the follow-the economy measures to be 100 per cent as a result of the new

announced on Monday will be Sterling Area-Japan: trade ing message:

it was "Recent reports published in sweeping. They made it clearrangement for 1945/50. the American press appear to that every department fa the predicted-Reuter, attribute the military reverses government will be affected by

the suffered by the Chinese Govern

This led sections which

ment

and have pressed for a review a troops, In Central

im

the

AMETHYST DAY

IN MALTA

ar.

On Other Pages

Pages

Atom

This was apparently ignored by the shore authorities, who pressed their requests till they finally gave up on Tuesday afternoon and released the British vessel

Relating the incident, an official Page 2

Correspondence said that the Kwong Fook Cheung

norma left the Colony on her

Deportation Of Aliens: schedule with 550, passengers and Fully loaded with cargo for

KODE

ance Explained South China to refusal or re-defence costs to assume that the luciance on the part of

of Generalis» *rmed forces are included.

Page 4 moon on October 14. The Prime Minister, Mr.' Cle-

Barclay's Bridge We arrived at Pak Ki Whart sima Chiang Kai-shek to re- lease sufficient military supplies ment Attlee, save the crowded

Valetta, October 13:

on, Saturday morning and His Page 5

Ruccians Have Real and funds alleged to be under meeting a zeneral background of

Admiral Sir Arthur Power, charged all cargo and passengers his control in Taiwan to sup- the economic situation and Mr. Commander-in-Chief, Mediterrane before some 80 armed soldiers Bomb: Vyshinsky port the Government troops Herbert Morrison, Deputy Prime

Page: 8 an, opened Amethyst Day in Malta boarded the ship," he related. fighting the Communists on their Minister, wound up the debate,

"The officers told us that unde Attack On Yugoslavia Meant fronts These reports are com Sir Staffed Cripps Chancellor today with a visit to the frigate

War: TitoTM which sails for Britain tomorrow. the present emergency situation of the Exchequer, also attended. after a two day stay, they would like in make use of pletely

The distribution of military The government leaders, who in an informal address to the the Kwong Fook Cheung 10. Nehru's Discussions With W. 6. supplies has always been in ac- did not disclose the details of the man, he warned

them that the evacuation cordance with overall plans and ormed cuts or the total sevine next few weeks “fall glare of pub

Page 9 orders of the Ministry of Na-estrated, were seelding" mited Hielty would be a bigger test

Britain Awaita Paiping's Answer | tional Defence. The allocation of party backing ahead of the cuts than "galloping down the Yang-

*Paqu 10 funds for the army has always been made by the Ministry of

Engineering Page be Povert sexorester

Lieutenant-Commander J. S. MAYER TRYING TO Finance under the order of the ment followers suggested that Kerans and other officers of the Executive

accordance they were prepared to succo frigate were being entertained-ta Yuan-in

FORM CABINET, with the approved government the new promtamme, however cocktails at the Carino Maltese budget. General Yen Hsih-chan, riprots, provided that it was on Later, they and the men were at president of the Executive. Yuna hasis of absolute equality

announcemict.

The views

In

terring lunch at the Vernon.

Kos

purposes, to

Tsar