1949-10-29 — Page 9

HOUSE REJECTS TORY MOTION OF CENSURE

Churchill On "Scandal" Of Sterling Balances

PRIME MINISTER'S REPLY

London, October 27.

The House of Commons tonight rejected by 353 votes to 222 the Conservative Opposition's motion censuring the Government's post-devaluation. economy measures as inadequate.

The vote was taken after the end of the second day's debate on the

measures which were announced' by the Prime Minister, Mr. Clement . Attlee, on Monday.

Today's debate was opened by Sir John Anderson, who was Chancellor of the Exchequer in the wartime Cabinet headed by Mr. Winston Chur- chill. Sir John described devaluation as a tragic necessity and a measure of the failure of economic planning.

Mr. Herbert Morrison. Deputy Prime Minister, declared that the Labour Government was a stable one. He accused Conservative governments of having upset and interrupted industry. The coun- try was still suffering from this,

he said.

The present instalment of ruta in expenditure, he added, showed Governmen meant that the business about economy.

Mr. Churchill, winding up the debate for the Opposition, said that the violent assault ናን cialism upon the in

intricate

and

post-war

beginning of the slump in the early 20's" To end this post-mortem on the return to the Gold Standard in 925. Mr. Churchill declared, "I think I did quite right in going back to the Gold Standard, but

would have been better to do than 1 at $4.50 to the Pound than

at the present-rate. Mr.

Morrison, resuming, con~ demned the idea that the cuts must regarded as a sacrifice of blood, a physical operation. The critics effen thought it was the working people who had got to be sacri- feed.

Be

"I was glad to hear the Chan- cellor of the Exchequer yester- day, for the first time, speaking of the need to curtail on a far greater scale unrequited exports. more responsible But no one is

Save

THE CHINA MAIL, SATURDAY, OCTOBER 29, 1943--

World Depends On Anglo-U.S. Friendship

- Manchester, October 27. The United States Ambass sador, Lewis Douglas, said to- day that the future of the world depends on the rela- tionship affinity between the -people of America and Bri-

tain.

Mr. Douglas told a joint meeting of the Manchester Chamber of Commerce, Civic Representatives and English - Speaking Union:

you

need my country, I can as- sure you my country needs you."

The Ambassador inspected an exhibition of Lancashire textiles for export. He dod- ged questions regarding Ja panese competition, but said, "Lancashire can send these @goods, with pride to Bany-parką. of the world."-United Press.

JAPANESE

PLEDGE ON PRICES

BIDAULT GETS BIG VOTE OF CONFIDENCE

Paris, October 28. Georges Bidault won a vote of confidence as Prime

Minister by 367 votes to 183 early today. He prepared at once to complete his coalition government to end the record political crisis of more than three weeks.

Before the vote started, the Assembly President announc ed that 311 votes were need- ed for a majority since a de- puty who resigned had been replaced..

The Socialists, MRP, Radicais and about 50 In- dependaris Richtists voted

Only Commun-

ists and their fellow travellers voted against

him.

The de Gaul- lists abstained.

Asking the Na- tional Assembly to invest him as Prime Minister. M. Bidault de

that clared "legality had

M. Bidault been on holiday" for three weeks in France.

Urgent Need

He told the deputies that in.

and ternational problems situation at home urgently de

manded that France should have a Government Without PUTKET delay.

M. Bidault said that the mence tary upheaval following the Bri- tish

decision, to devalue he broken up the Republican Coali- tion under M. Henri Queuille, the Outgoing Premier,

Tokyo, October 27. Japan pledged today not to cut the prices of her exports drastically nor to dump them -on-the-world-market.

The assurance came from the Minister of International Trade, Heitaro Inagaki.

an emphatici He replied with "Dot a: all when asked if Japan might return to her pre-war price cutting and ether trade practices.

General Douglas

MacArthur's elimination this week of minimum prices of Japanese products crus- centre ed some concern in foreign trade centres that

the Japanese might slash prices in an effort to in- crease sales, Minimum prices set by Allied Headquarters were the lowest

State at which the Japanese of could export goods.

jon!" konus to the pocrest free bara, Mr. Inagaki said that the prices paid workers. of some Japanese products would by workers, conciliation and ar- He said, "It is not only devalua-fall but declined to estimate bybitration in industrial disputes

but bankruptcy

how much. Some observers think I and regulation" of the right of fronts us now. The Government that they may go down by 15 per civil servants to strike.

than he is for the vast and ac- celerating scale on which they

ave been proceeding

Mr Churchill said that the country had had four

years and unbridled "unprecedented

or ceaseless inter- expenditure, ference in every form of private telles in times of peace and un- enterprise with taxation unparal-

equalled through the world to- artificial econdmy of Britain, et a moment when it was exhausted Mr. Morrison accused the Op- day".

"The grievous fall In Gov. and quivering from the ordeal of position of wanting a deflationary

ernment securities is a direct total war, had so far been fatal situation with unemployment and

result of financial mismanage- to the country's recovery.

crushing prices so that the work-

ment and an attempt to bring "kept in On the subject of Sterling bag classes could be

about Socialism in our time," lances he said it was a scandal their place and the superior bar-

Mr. Churchill that Britain should be made to raining

of Capitalismo power

added. Mr. Churchill said that if the restored". repay to India. Egypt and some

service had other countries sums for the sup-

would not national military The Government plies for the armies by which adopt that policy which would been properly used and a smaller they were protected from Ger- plunge millions of people into number called up for a longer time, great economies might have Italian and Japanese inva-

been made in defence. Replying to the debate. 34 Attlee said that during the war Mr. Churchill had on every occa sion to resort to Socialist mea sures to pet production going.

sion.

Mr. Attlee said that the Ster- ling balances could not be repu diated, though they would have to be cut down B5 much possible.

Sterling Area Leakage

as

misery.

Not The End Mr. Morrison said that the Gov-tion ernment did not believe that the problem of economy in Governe ment expenditure could be solved by any sudden orgy of cuts.

It would be wrong to assume that the cuts begin and end with the list given by the Prime Minis-¡ ter he declared.

one who "Anyone imagines that the present list the

Goveryresents the end of;

Sir John Anderson said. “I de not know the precise amount of gold and dollars which we have lost through following too gene- rous and too lenient a policy in regard to the Sterling balances Nor do know how far there ha been a leakage in other RCTOSE ling Area.

efforts 50 achieve "economies is going to be indeceived before long".

But the present instalment served.. notice સ everyone an Home and abroad that the Government meant

business about economy. W&N the frontiers of the Ster-

"I should like to know whe- the the Government are now satisfied that. adequate control can be maintained throughout the Sterling Area.

Sir

described devalua. John tion as a traple necessity and a measure of the fajjure economic planning.

JJ

of

Sir John said he welcomed the reference of Sir Stafford Cripps Chancellor of the Exchequer, t unrequited exports. (The Chan- cellor indicated yesterday that releases on Did Sterling balances would have to be tightened),

"But how much better should we have been if this change had taken place a year or two ago," Sir John said.

Mr. Churchill, winding up the lebate for the Opposition, said that Britain had spent £16.000.-

spl

that con-

have shown themselves not only financially but mentally and morally bankrupt."

Mr. Churchill was cheered by his supporters for a minute when he sat down.

Premier's Reply

cent.

Mr. Inagaki.said in an inter- view that the prices of Japanese machinery and such items as bicycles and porcelain would be affected more than - textiles. ›

He predicted increased trade with the Sterling area. Japan sells considerable textiles to the Ster-

This Coalition must be re- constructed. he added.

M. Bidault's proposals follow- ed the lines of those of his two M. unsuccessful predeccssoTM, Jules Moch and M. Rene Mayer reduction -currency s

Indo-Ching

Д

Both M. Mach and M. Rene Mayer failed to clinch a Cabinet. making agreement between the parties.

M. Bidault today, pledged his support for the Bao Dai Govern- ment of Vietnam and said that France would scize every oppor tunity to bring peace again to areo-China.

The Prime Minister, Mr. Cle- ment Attlee, replying to the de-. bate, said ironically that Mr. Co Churchill could hardly have going countries. The goods through more than the introduc-usually poorer in quality than those made in Britain and the United States and are aimed at a direct comment on the possibility market not generally sought by of mediation by Pandit Nehri,

the Prime Minister of India.

those two countries.

This was taken to be an in-

There are not many people here i 31. Bidault stressed the need to who think that Japan can cut her create a truly united Europe. It Prices enough to match the Bri-was up to Germany to create tish Pound devaluation Associat-new destiny for herself withi

|its framework-United Press and

Reuter

tion to his speech because he un- derstood he was intending to say something about the actual pre- posals of the Government.

During the war. Mr. Churchi!! had on every occasion to resort duction going, he to Socialist measures to get pro

said. Those were the days when heed Press. was not appealing to public

to private profit 51: the

time to vice. We live in the days of fixed a Capitalist nor economy, neither a and

300,000 in the last four years. This was nearly as much as she the whole 20 years be- in tween the wars.

The violent assault of So- cialism upon the

intricate artificial economy of Britain at a moment when it

exhausted and quivering from the ordeal of total war has so far been fatal to our recovery,

S

he said. Turning to Sterling balances, Mr. Churchill said. “I think it is a scandal that we should be made to repay to India, Egyp: and some other countries

Surns

for the supplies for the armies by which they were protected from German, Italian and Japanese

Sir John condemned the Gov-invasion. ernment for constantly mislead- "I was dad to hear the Chan- ing the people instead of bring-critor (Sir Stafford) speaking of ing them to a sense of reality to which they would have respond- ed

He added that a new govern- ment, with a new outlook could re-establish a healthy

economy and restore international con- dence.

Comic Interlude Mr. Herbert Morrison, Deputy Prime Minister, declared that the Labour Government was a stable one which kept industry going Under Conservative

largely because

govern-

the need to curtail to a far greater) scale our unrequited exports." Mr. Churchill added.

The

came in.

ser-

a Socialist economy.

Mr. Attlee attacked sections of the press

for "suggesting that tremendous cuts were to be made with the sole object of being able

a that

the Government's say

to

omics were totally

whole. at it as responsible papers say we have done just about right", he said. ling balances were a great strain, Mr. Attlee said that the Ster- but Britain could not clog them down right away.

Peace In Asia Britain, he said, had * great interest in trying to preserve peace and stability, especially in South East Asia.

**

call+

had always considered that we should make a counter-claim

The matter had been under for services to therm and one close discussion, he said. could be set off against the other. "We hoped that earlier we United States are re- would have reached a settlement. peatedly reminded by us how we

But

the case of India, for in- fought alone for two years before stance, I do not think this is the they

kind of matter that we can have "The United States have ac- settled without regard to the knowledged this and treated not views of Indian people. only the wartime expenditure "We have

ave got to cut it down as of the under Lend-Lease but made much as we

There have activities of Mr. Winston Chur these subsequent vast loans and been some

over-drawings. We chill, industry had been upset gifts winch we have Spent so shall in future have to be far and interrupted, he said, and the freely during these four profigate tighter on it than we were before. country was still suffering from years.

"But eventually there must this.

"More than that, the United come a settlement. had no right to take steps to deal during the war. They may have States opinion has been that we "These balances were built up comedy during Mr. Morrison's with our war debts to the coun- been built up wrong They may speech.

Sir John Anderson had com-

tries we had defended-Sterling have been too big, but that is mented that he never wanted to balances they

are called while what actually happened and you see repeated in Britain what had *ppeating to them continually for cannot repudiate them at this happened after the first war.

further aid,

time." Reuter.

There were several spots of

Mr. Morrison seized on this to ERY. "I was glad that Sir John made such a specific repudiation

the

financial

policy followed

જ.

by Mr. Churchill"

This brought Mr. Churchill

and Sir John to their feet, amid

loud laughter, to explain away the reference..

Sacrifice Of Blood Mr. Churchill said that Mr. Morrison was deliberately-mix- ing up two different periods

Sir John was being misrepre- sented if he was said to be re- flecting upon the decision to return to the Gold Standard in 1925 (when Mr. Churchill was the Chancellor of the Exche- chier)..

There were rears of laughter aš. Mr. Churchill and Bie John consultedin_whispers-while. Mr. Morrison. looked on quiz. zically, When Sir John

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DP'S RIOT IN BELGIUM

Mons, October 27. Police were called out today to restore order when displaced persons on a hunger strike in a former Belgian Army bar- racks here invaded the dining hall, upsetting food

Six of the 950 displaced persons in the barracks were taken to hospital yesterday.

The hunger strike began six days ago. About 50, are still retu- sing to eat. The displaced persons claim that, after their two-year contracts to work in Belgian "coal mines had expired they were being "abandoned" by the Inter- national Refugee Organisation.

They want to be sent back to the Western Zones of Germany, where they hope to emigrate to America' or Australia-Router.

EMERGENCY · IN GUATEMALA

rl

Guatemala City, October 27. A state of emergency was pro- claimed

throughout Guatemala today after a special meeting

President, Dr. Juan Jos the Arevalos, with bis Cabinet

"The national emergency creat- ed by the foods" was given as the official reason for the pro. clamation, but widespread mum- ours said that the Government had uncovered a revolutionary plot-outer.

TRUMAN ON RECOGNITION

Washington, October 27. President Truman told the press today that he had not discussed with anyone the subject of recog- nition of the Communist Govern- ment of China---United Press."

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ADMIRAL

DENFELD SACKED

Washington October 27- President Truman today dismissed Admiral Louis E. Denfeld as Chief of Navali Operations.

President Truman said Admiral Denfeld is being transferred to other duties for the good of the country.

The action was expected beri cause of Admiral Denfeld's cri- ticism of the present military policies of the U.S.

Admiral Denfeld had charged that the Navy's offensive power was being ruined under the new tmified defence organisation.

President Truman said he did not know whether Admiral Den- ↑ Keld would accept the transfer to other duties or would resign. Admiral Denfeld had no imme diate statement.

The Secretary of the Navy, Mr. Matthews, had written the President that Admiral Denfeld's removal was vital, because a military establishment is not મ political democracy, and there must be loyalty to superiors and respect for authority.

Some Congressmen had de- manded that Admiral Denfeld b- retained in his post. Others had said his dismissal would be neces- sary in view of the inter-Service quarrelling-Associated Press.

Leopold Measure Passed

Brussels, October 27. 'The Belgian

Senate tonight passed, by 109 votes to 65, a Bill providing for a referendum to de- cine the future of provisionally exiled King Leopold.

King Leopold stated last week that he was willing to abdicate if he obtained less than 55 per cent of the votes in the referendum.

The Senators voting in favour included 92

Social Christiaza (Catholic), one. Independent Catholic and 16 Liberals

Fifty

three So

Socialists. six Liherals and

six

Communists

voted against

The Bill, which was tabled by M. Paul Struye, a Catholic and former Minister of Justice, passed after

was

three-day debate.

The Bill will now go before the

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BUTTER RATIONING

Chamber of Deputies the Lower Government Butter Ration will be distributed on

House of Farliament. If it goes through, every Belgian over 21 will be able to take part in the referendum.

They will be asked to reply or "No" to this question:

"Are you of the opinion that

Tuesday, Wednesday, Thursday and: Friday.

November 1st to 4th inclusive.

King Leopold III should resume Allocation: One Pound to each person in family as shown his constitutional powers?"

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two votes short of an overall majority in the Chamber. but it seemed certain tonight that the referendum Bal get a majority in the Lower House with the help of Royalist elements in the Liberal Party.

As a party the Liberals are divided on the Royal question | FOOD DEPT. Reuter.

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