1949-10-25 — Page 1

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NEW AUSTERITY PERIOD FOR BRITAIN Duel In Park TRUMAN URGES

Attlee Announces Drastic Expenditure Reduction DISINFLATIONARY EFFECT

London, October 24.

The Prime Minister, Mr. Clement Attlee, today revealed to a crowd- ed Parliament the Government's economy cuts which usher in a new period of austerity for 50,000,000 Britons. The public galleries were packed with tense, expectant faces as the Prime

Minister rose to announce the measures necessary to make devalua tion of the Pound Sterling succeed and halt the advance of inflation. Mr. Attlee said that the Government had decided to take action which, apart from saving in defence, will have a total disinflationary effect of about £250,000,000 a year.

+

The housing programme, he Ministry of Supply estimates in the first half of 1950 to $600,-) said. would be reduced by would also be cul by about £6,- 1000,000.

£35,000,000 a year and capital 100.000, Mr. Attlee said. expenditure by about £140.- 000,000.

Another domestic saving-this) The sum of £1,000,000 would ftime of £800,000 a year-would be be lopped from the estimated cost made by revising the Register of General control of building and certain parts of the proposed a year.

of the 1951 Festival of Britain. Electors only once instead of twice would save another £35.000.000. free legal aid

Mr. Attlee said that the Gov-

scheme would be

Economies of more than £1.- ernment had decided on a reduc-

000.000 would be made in the British Administrative expenses in run-

Information Services tion of expendaure that, togethening the Ministry of Food weeld with the increase of profit tax an nounced recently by Sir Stafford Cripps. Chancellor of the Exche- quer, should produce mere than

£100,000,000 for the next year's budget.

It was proposed to reduce the cost of education by £5,000,000.

ceferred.

be reduced by about £1.700.000. This would be done mainly by re-organisation, concentration of

divisional and local offices, and dropping some refinements of control.

This would be done by increasing Medical Charge

the charge for subsidised school meals by one penny and reducing transport facilities for children.

estimate of

The preliminary State expenditure on agriculture next year would be reduced by about £6,000,000.

SAS Mark Extension Of Service

Scandinavian Airlines Sys- tem celebrated their exten- sion to the Far East yesterday with a cocktail party at the Gripps, Hong Kong Hotel, at which representatives of local airlines and tourist agencies were guests.

Mr. H. Meinich, representative of SAS, who came out to the Far Fast about two months ago de make arrangements for the exten- slon, said the first scheduled Right would leave Stockho'm en October 26 and arrive in Bangkok on Octo- ber 30. The return trip would be on November

The DC-6 planes on the service, with pressurised cabins, will be the last word in air travel com- fort and speed Mr. Meinichi said, the travel time between Bangkok and Stockholm will be only 40 hours 25 minutes:

Intermediate stops would be at Copenhagen, Zurich, Rome, Damas

cus, Karachi and Calcutta,

The feeder service between Hong Kong and Bangkok will be

by DC-4 Skymasters of the Cathay Pacific Airways.

In the beginning

the service will be a fortnightly one, and if traffic justified it, it will be ex- tended to weekly service

The manager of the Bangkok Terminal Office is, Mr. A. Oyan. Azrats for SAS in Hong Kong are Thoresen and Company Limit- ed who will book passenges to all parts of Eurose and America

arved by the SAS system.

The Weather

AT G600 GMT 13 p... RKST) thr

tropical atom centred about 45 min E of Las probably moving slowly -2W- and intensifying but little. Inform

lation is available, · The autheyglene over the Pacibe E of Japan is moving East- (wards and is enckerted to the anti-estione “over."China" by- s. ridge of high pressure, BA treesh (of low prostre extends from

the Paracels to the Rynkus" and theore ENT

Today's Forecast:-Moderate Nor NE (winám freshening at times. Fatr. ·

Home - terday's Weather

Maximton; 13.0. deg. Fah Minimuzzi) 71,3 deu."Fah. Bonchine: 39' hawn, A.

Trane Total since Kalfall

1961.7 time1723 ins, as asinat a megaverage of 28465 mm.m8927 (04.

· Readings st

Bero," "at mht.

Equal

Point" Wind. Direction

30 Km 14 pit

1015.8 - 10110 ́.

23.03 29.8T inches.

(433\ 65 degi F. NE by N' NEW N

Mr. Attize announced that charge of not more than one Thilling for each prescription for medicines would be made in future bader the hitherto, free National Health Service. This would save about £10,000,000 Old age pensioners would not pay the charge.

and in the Government-financed British Council, which promotes cultural relations abroad. Subsidies on fish and animal

ceding-stuffs would be eliminat-

ed. Mr. Attlee announced.

Price control of fish would be removed at the end of the winter, and the saving on the subsidy would be £7,000,000 a year. The animal feeding-stuffs subsidy would end after Febuary.

Princesses Listen

Near Paris

A duel took place in the fols de Verrieres near Paris between film director Willy Rozier and critic Francois Chalais. Rozier considered that the latter had insulted him in a - newa- paper article. The duel ended when Rezier wounded his adversary lightly in the fore-

Here the duel is seen in progress between Rozier-Chalais.—(AP Photo).

arm.

Meeting Of

Frosty Moller Clears

U.S. Diplomats Port, May Be Headed

In London

London, October 23.

diplomats

Ace American

For Distressed Ship

from behind the Iron Curtain The salvage tug boat Frosty Moller cleared port

Mr. Attice was listened to in- meet here tomorrow to plot tently by an audience that in- | new strategy in the big cold cluded Princess Elizabeth and war between East Princess Margaret

and West and in the little cold war be- He said that the Government tween Josef Stalin and Mar- - The price of raising and dried had made it clear that any advan-shal Tito of Yugoslavia and frozen eggs would be in-tages to be reached, from de

An exchange of intelligence re valuation might easily be offset by parts on Russia's progress in, de- an inflationary tendency.

creased

ex-

The cuts he had announced veloping the atomic bomb and her

establishment of V-1 and V-2 were interim measures which rocket bases within striking dis- would be reviewed before the tance of Western Europe may be next budget.

items on the programine for dis- cussion.

reduce this rate by

at 7.30 p.m. yesterday headed presumably for. the Pratas where the 750-ton Chinese steam- er Yung Ming was reported to be aground due to engine trouble,

Although authoritative sources could not give the destination of the Frosty Moller, it is under- stood that she was proceeding to aid the Yung Ming.

B-26 Bomber! Crashes, Kills Entire Crew

RUSSIA TO CO-OPERATE

New York, October 24.

President Truman today urged the Russians to be men of goodwill and agree to an affective plan to outlaw atomic warfare.

he President-spoke of the cornerstone laying ceremony at the United Nations' permanent headquarters in mid-town Manhattan.. He spoke after the Assembly President, Carlos Romulo of the. Philippines, had warned that the atomic age meant, "The United Nations is the last temple for re-discovery of human brotherhood. We must remain at peace with one another or die."

Soon

atter Mr. Truman (of atom bombs first. It has axresd spoke. the UN Secretary Gen- . inspection, but has never said eral, Trygve Lie, told the huge whether it would permit such in- throng: "I believe profoundly section by persons other than that only the success of the Bussians. United Nations can prevent a third world war and achiev lasting peace.”

Speaking to representatives of all the United Nations, President Truman' said the United States would continue to back to the hilt the so-called Baruch Plan for international control of atornic energy unless and until a better and more effective plan is put forward.

So far, he said, it was the only workable plan advanced,

Bitter Experience

→

President Truman said world peace must be based on respect for human rights, prometion of economic development and system for control of war waz- pong"UN ́members had learned through bitter experience, continued, that disregard human rights is the beglaning of tyranny and too often the beginning of war.

he for

He hoped that the covenant of With his emphatic support of human rights being drafted by the Commission the plan. however. Mr. Truman UN Human Rights also held out a friendly hand to would contain effective provisions Russia, although he did not mentor treedom of information so that Lion that country by name. all men might seek the truth. He

areas ok

He promised American support for these efforts in line with bis "Point Four" programme. He said he would urge Congress, when it convened in January, to ve high priority to proposals to make additional technical essistance and

He said he was convinced there also commended the United Na were no international problemstions for undertaking.

economic which could not be solved amic-aid to underdeveloped ably through patience, reason the world ableness and hard work.

Safution To Problems

"No 'single-nation can always have its own way (in solving this or other, dimeuit, problems) because the solutionsto: buman money available for underde- probleme de to be found reloped nations. An segotiation and mutual adjust-f

Then President Trumman summed me="" said Mr) -Truma |

substance of the Baruch to be the theme of his speech:

up in these words What siemen Plan, which President Truman

"Respect for human rights, pro re-affirmed, has been approved by motion of economic development the UN General Assembly, whose

Turning to defence expenditure, Mr. Attlee said, "It has been pos- isible to make reductions which despite the effect of devaluatio

The salvage tug boat had

members were gathered for the and a system for control of wea wil produce a saving at the rate

Explaining the capital ex-

been standing by all day yes′′

cornerstone-Laying ceremony. fer pons are requisites to the kind of et £30,000,000 a year."

penditure cut. Mr. Attlee said

Diplomats assigned to Russia terday following the intercep

the new skyscraper world head-world we seck. We cannot solve He said that the Government

that the 1948 value of goods de Poland. Czechoslovakia, Hungary, tion of the distress signal from forecast of future defence

quarters on the fourth anniver these problems overnight, but we voted to fixed investment was Bulgaria and Rumania, as well the Yung Ming which stated

sary of the birth of the United must keep everlastingly working penditure would be announced"

about £2,000.000.000.

Nations.

at them in order to reach cur goal. later.

For the current year the figure as those to Yugoslavia, will be that she was adrift about 150 South East of Hong

In his 2,300-word address, Pre-No single nation can always have The Government, Mr. Attlee might approach £2.100,000,000.ong those present U.S. officials miles sought to minimise the importance Kong.

sident Tranan put much emits own way, for these are human 1950 of the continued, had now settled a new The Cabinet proposed in

meeting and termed it

phasis on the problem of atomic problems and the solution of hu dollar import programme at a re- to

The signal added that the skip

energy control and the Unitedman problems is to be found in about ruutine, but its significance and had been adrift for 10 days with- cuced figure of $1,200,000,000 a £140,000,000 a year--Reuter,

States re-zuigention of its essential importance were ob-out food and water.

the negotiation and mutual aėjust- year. This should reduce imports

(See Page 7)

Plan. He did not refer to jment, Baruch vious at this time of world ́events A Pan American Airways plane Midland, Texas, October 23.

"The his announcement of the resent

challenge of the 20th which are bound to have influence arriving in Hong Kong early yes- An Air Force B-29 bomber utomic explsion in Russia, but Century is a challenge of human upon future American policy to- terday

gave indications crashed and exploded on that the

Soms is a sound ranch South East of Midland obvicusly was mindful that the relations and not of impersonal

problem bad attained To emphasise the importance in the Pratas. The skipper of the today, killing all five men of me of the conference further, the FAA aircraft "Kit Carson" (com-its crew. The plane was from American Ambassadors to Westing in from Manila), told the Biggs Air Force base at El veloped that would meet technical thought, in the inertia of human ern Europe have just completed "China Mai" that he sighted the

requirements of control that nature and in pre-occupation with a similar meeting in Paria. Some ship the descrised it as an LST) of them will be here tomorrow.

would make prohibition of atomic supposed national interests, to the grounded in the Prats,

It struck the earth with such weapons effective and at the same detriment of the common good Interviewed, the skipper said force that Police Captain Jack me premote peaceful develop- that

He

Americans Told To

Leave

Chengtu

American nationals in Chengtu, 160 miles North

West of Chungking, were yesterday urgently advised to leave the city, according to vema- cular reports last night.

British, Canadian, Portuguese and other foreign nationals are also preparing to evacuate, the reports added.

The majority of the Euro-

Commünist guerillas and poli-

Paso, Texas.

aca natural forces. The real dangere confronting us today have the only plan so far de-origins in outmoded ab

habits of

At Boiling Point The battle between Tits and as far as he could make out. ; QO'Brien, who went to the scene, ment of atomic energy, un ́a'' co- !

aluation on board seemed to said: "There was hardly a piece operative basis," he said, Stalin again is at boiling point have been orderly. The position left that was more than six or

added that the Baruch Plan. after the election of Yugoslavia of the ship, presumably the

which provides for international

of atomic спеть inspection plants, was a good plan.

Eussia has blocked adoption of

to the United Nations Security Ming, was given by the airt seven pounds"

over Russia's violent "Kit Carson.

Naval the "China" can- that zaid

Council

There was apparently no wit- objections.

1. Operations contacted by ress to the crash. but several

late last night families heard the plane in dis Russia's Czechoslovakia,

no naval vessel was tress shortly before it went dows the plan iri the UN Security didate for the seat, already has retaliated against American sup-standing by but that the Frosty on the Levis Rage ranch about 23 Council and wants a public count

Moller was being alerted, port diplo

of Tito by ousting an Marine Department, however, con-

The miles South East of here. A misty American

Muller rain was falling and low clouds Embassy ́employee in gaol.

assistant Soc-

the

Frosty

peans in Chengtu are profes-tical workers. of General Chen S diplomat and throwing & 6rmed that, late yesterday had pushed the ceiling odwn to

The reports said that the - peo-

were forced to

withdraw

Charles Bohlen,

z rancher, aid Charles, Blalock, htard it com

it come over my heuse message engine trouble."

مرمة

cleared harbour. sors, teachers and missionaries. Kong's People's Liberation Army retary of State for European af- evening. Her destination however, acra Sea, festo, a ru

not be ascertained i There are a few businessmen. Kongmoon on Sunday by the sud. fairs, will be chairman at to-:

A United Press dispatch yes- ple in Szechuan are apprehensive sore Nationalist troops.

den influx of some 6,000 foot | ZHTTOW'S meeting reading Rusterday said that Globe Wireless low. It sounded like it was havingį of the Nationalists' power to pre-

of the American received the distress zian expert. The troops, evacuated from up

from the Yung Ming

Others who heard the plane at 9:30: vent the People's Liberation Army river, marched into kongoon diplomatic service, who is now yesterday, stating that she was agreed too that one engine was from, overrunning the province.

Minister in the Baris commandeer craft for evacuation and

Embassy adrift without food and water. Putter assistant Secretary Her position then was given as

O'Brien said the crash. Sancho Island and

મ of Communist General Lin Fiao Island.

Hainan Georre Allen, who is in charge of athade 21 degrees North, Longi- scene was marked by a crater was reported to be resting at Lin- The guerillas and political ling while

his advance units in workers are expected to return and other American propaganda de 116 degrees and 39 minutes seven or eight feet deep and the bodies were scattered all over, He East projects, will aid him-United

SHDIR placed Press.

believed the explosion was caused her approximately

In South China, the main force

to

co-operation with local, guerillas when the Nationalist forces leave. continue probing operations be hind the Nationalist lines, within seven miles of Kweliin.

meis

Nationalist General Pai Chung- hsi-has concentrated, the bulk of his 200,000 men rear Liu- chow, about 100 miles South West of Kwelin.

Conference Held

General Claire

Chennault, head of the civil Air Transport and former chief of the wartimą: Flying Tigers In China, visited

„Kwellin on October 20 and held

conferences with Gènerai Pal.

RUSSIA WANTS

ASIAN TRADE

2

the

the Voice of American broadcasts

Shekki In

A Vacuum

Macao, October 24

in the South China Sea at about by ignition of high-octane gasoline 150 sea miles South East of the and not by the presence of shay Colony, in the vicinity of the other explosive aboard the plant. Prazas, indicating strongly that United Press.

this was the same vessel sighted

by the PAA plane during the Singapore, October 24.

latter part of yesterday morning. Russia told the couterences at

A Royal Air Force Sunderlanî, the United Nations Economic

sent out early yesterday mornin Commission for Asia and he Far

returned and reported that wing Shekki was in a vacuum tot bad weather and poor visibility East (ECAFE) today that she was ready to develop trade relations day, awaiting the arrival of the distressed ship could not be with Asian nations on a bilateral Communist forces, but there iccated basis,

was no indication when they ter to Thailand made the state-

S. S. Nemtchina, Soviet Minis- might arrive.

Nationalist forces under the ment during a discussion of the command of the Canton garrison

Chinese messages said that the of the committee on-in-chief, General Li Kap-lar, and

dustry

talks concerned American aid to Press. China which will be supplied direct to the commanders, in the field instead of through civilian channels.

Following this conference, Ger- eral Chennault was reported to have down to Hairan Island for talks. there with General Chan Chai-tong Special Commissioner

and

trade Asociated chief of the Peace Preservation Corps, General Sit Kwai-leung. have been evacuated to Sambeng. midway between Shekki and midway betwee Macao.

AMETHYST AT GIBRALTAR

Gibraltar, October 24.

U.S. NEEDS.LESS CHINA TUNG OIL

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