1949-12-20 — Page 1

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CHENNAULT, WILLAUER Airlines Purchase Explained TELEPHONE CO.

FILE COURT PETITION Ownership claimed of all CNAC, CATC equipment

HK GOVT STATEMENT

Major-General Claire L. Chennault and Mr. Whiting Willauer filed a petition of intervention to the Hong Kong Supreme Court yesterday, claiming ownership of all equipment and planes of the China National Aviation Corporation and the Central Air Transport Corporation.

PAA has no knowledge

M. E M Allon, Operations Manar of The Chinese National Aviation Corporation, yesterday that Part

no

Amber al Always krowindge whatsoever of any trannter of capital stock DC Tweek The Chinre Govern ment and General Claire L. Janel Mr. Whiting

Willauer

in

"Enethermore, he said, we could

not recognioo Any transfer of capital stock CNAC which did not conform with the terms of the contract between the Chinese Govern.

Pan American

ITTO!

Airways

And

"Similarly the Corporation could only be sold in accordance with the Constitution of the Corpora.... tion **

any sets of

CANTON TRADE PLANS

Plans to resume trade with Cantom by aver sleuters are

Chinese defectionists and Nationalist Government officials are engaged in a legal dispute over ownership of the two airlines. The case is to begin tomorrow at the Supreme Court. The two Americans, General Chennault and Mr. Willauor, are President and Executive Vice- President, respectively, of the Civil Air Trans- part. They claim to have purchased the air- lines in the capacity of private individuals. AT& press conference, Mr. CNAC needed for operation, pros Willaner said that negotiations vided the personnel ure loyal to for the purchase have been the Nationalist Government. They

will employ no Comununists. going on with Nationalist au- thorities for

two more than weeks, and were Analisest on December 12.

He added "If the Supreme Court deviles to recognise out petition of intervention when the hearing begins on December 21, our problem will then be to prove that we are the legal owners of

75 the

and CATC CNAC planes nulstile Communist China, and atso of the 11 planes which de- fectionists took to the Commun- ista dbbut a month ago.”

HK Govt statement

The Hong Kong Government Issued the following statement prior to the petition of inter- vention which Mr. Willauer filed to the Supreme Court yes. 1orday afternoon:

"General Chennoult's claim to have purchased aircraft and other aasets of NAC and CATC needs to be related to the fact that claims to ownership'and control Though the amount of money of the same property is at the which was paid to the Nationalist present time sub-juice before Government WAB not revealed, ine Supreme Court by reason vi Mr. Willquer said that the pur- the fact that Injunctions have Chusu Wa more than transaction.

the

Major-General Claire L. Chennault (left) and Mr. Whitty Willauer at a press conference at the Correspondents Club yesterday. The two Americans, who are top officials of the Civil Air Transport, explained to journalista thoir purchase of GNAC and CATC equipment and planes from the Chinese Nationalist Government.

Chinese Govt circular shown to HK shippers

A recent circular prosented to the British Consul Ganeral at Tamsui, Taiwan, by the Chinese Government regarding a more drastic enforce- mont of the blockade is being circulated to local shipping organisations by the Marino Department.

"If

U.S. ship

to ignore warning

WORKERS' ULTIMATUM

Chinese workers of the Hong Kong Telephono Company followed the example of their follow workers of the Hong Kong Tram-· ways yesterday when they presented their management with a two-day ultimatum. The ultimatum called for a reply by tomorrow whether the management will reconsider its decision in regard to the men's demand for a special cost of living allowance which it had categorically rejected. The oxcuse given by the management for its in- ability to meet the men's domond was dos- cribed as totally unacceptable, and as failing to take cognisance of the plight of the work-

Do

ors.

dissatisfied

inadequate.

The telephone workers had | tion allowance, based on Govern- asked for an extra allowance ment's weekly Index, was sadly ranging from HK$75 to $115

They pointed out that if the a month, according to grade,

men's demand was considered to for each worker, because of

be excessive, there was alwayɑ increased living costs.

the

which conference table at The ukinuntum from the tele- both sides could iron out their phone workers was the second in differences, but when the door

presented from

was shut to any negotiations as in workmen within 48 hours,

the present case, these officials On Saturday workers of the aid, they were left with no at- Hong Kong Tramways Limited ternative but to leave it to the had presented their management workers themselves to take their also with a two-day ultimatum own decision on the ultimate asking for reconsideration of their

action to be taken. demand for a HK590-a-month No comment was avaliable from

allowance for ull the managements of the overall extra

com- workers irrespective of grade. pantes concerned on developments

The ultimatum expired at 5 in the present disputes. p.m. yesterday without any reply

Independent observers declined from the management, and off-

to predict what the outcome cials of the union met last night might be, but expressed the view to decide on the next step to be that a categorical refusal to dis- tokers.

curs terms with the mon, many It is, however,

under not expected of whom are labouring that any positive action will be what they bellove to be a real taken until after Wednesday, to grievance, justified 'or unjustified, awalt the result of the ultimatum was not calculated to calm what from the telephone workers,

decidedly a tense situation,

The next labour union which whoever might emerge victors will most likely hand in an ultis | there should be a wholesale walk- matum the one of demand for an

On the heels of the Amer-Kong Electric

the Hong| out...

whose

chi StatorDepartments warn- |'axtra cost-month

Dairy Farm demand

any foreign ship touches mines or meets any kind of damage or disaster in the future from violation of the rule, obviously she has to bear all the responsibility herself, sfated the cir

wance was cular, released by the Far Eastern Represento-

Ing to American ships to stay also rejected by the management, out of Shanghai, the Hans Is- Officials of the uniton met last tive of the United Kingdom Ministry of Trans-

brandtsen Company of New night to discuss what steps should port, Mr. D. F. Allen, over the week-end. York have arranged to send be recommended for approval of a paper been tained by two other pur-

another 8,000-ton merchant mass meeting of the workers to Hes. It seems therefore on

Handed to the British au-degrees, 40 minutes and North ship to Shanghai,

be convened tonight or tomorrow. information available at the pre-

The Isbrandtsen Company, on December 12 by Latitude 26 degrees, 15 minutes) { sent time that claim by General thorities Chennault to ownership and con- the Commissioner of Foreign will be temporarily closed and all which is the only shipping, trol will suntlarly require to be Affairs of the former promin-foreign ships were strictly pro- firm to have consistently established before the Courts." ent Taiwan port, the circular blted from sailing into this re- broken the Shanghai blockade,

The

gion. petition of intervention

apparently intends the sailing read: could

t which Mr. Willauer fled facilitate and make possible the

"The Chinese Government also of the 83. Flying Arrow

to the Published an order that commenc Shanghat as a result Chennai and Mr. Willouer to-

of June 26 State Department announce- ng from midnight 1940, any alien ship violating this ment. rule would be restrained and also that any foreign ship endangering ule would have to bear all the herself through violation of this

responsibility.,

He added: "We realise that we are in for the fight of our lives to gain control of this property, but if we do gain control, it will only be by due process of law.

Mr. Willauer, as former hend of U.S. surplus property in the ww instrumental in

I th makttag. Two local Far East,

Chinese vessels the mv. Kwal securing most of the CNAC planes pearance in court of General Wah and my. Man Sing--will for the Nationalist government

sitempt to reach the vang Premier signs

fung capital some time this

werk

The Kuat Wan, which was the first cal vessel to try to break

thaugh the Nationalist blockade Papers

of the Pen River Delta and was Do by a gunbool which Itrated hes trip, is now riding at unelor in Macao Harbour,

It is believed that for the past few daya hei Marso agent has been werelving ingtriries and e- repting bankings for cargo des- uned for Canton business houses,

General Chennault waid that

he and Mr. Willauer negotiated highest Nationalist

with the official, and the purchase papers were signed by the Chinese Premier.

He added that the American

The lucki agent, Hop Kwan and British Governments have Hong Corpany. Bald that they been informed of the purchase

have no deBrute

information

through Nationalist representa-

morrow.

"The Ministry of Foreign Affairs notified the Government of on June 20, 1949. all countries that

within EMF

waters from Chinese territorial the mouth of the Lino Ho River in North Ching (East Longitude 122 degrees, 20 minutes and North Latitude 40 degrees, 30 minutes) of Mia-chiang estuary River (East Longitude

the coastal region

An offciał of the Americus Consulate said yesterday that the Consulate had been informed of the reported purchase by (wa Americans of the CATC and CNAC property, and the matter has been forwarded to Washing tu ton for any necessary action.

the

to

Retaliation

eventual recognition

Talpeh, Taiwan,

December 19. Oficial circles, buzzed today

Meanwhile, another powerful! body of labour unionists have Joined the ranks of those soak. ing an extra cost of living at lowance. At meetings held on with a report the Nationalists Bunday night and last night, will counter expected British Chinese employons of the Dairy recognition of Red China by Farm les and Cold Storage severing relations swiftly with

decided to make a Great Britain.. Company Five isbrandtson ships have

demand for an extra cost of

of. As the report was circulated, Iving allowance of HK100 »police strove to keep order before previously broken the block- Cloud and the ss. ade, and two tho ss. Flying month for each worker, and the British Consulate. Chinese by

Sir John

"formal demand la 'expected to the hundreds clamoured for visas Franklin have been damaged

be presented today.

to enter Hong Kong-and a haven This demand was framed more from what many consider an Im by Nationalist gunboats. "Later

Govern- the Chinese 119ment again gavo

An official of A.P. Pattison, or less along the lines adopted by pending Communist attack on this notice to all

who had already put in island. local agents of the Isbrandtsen those governments that the line of closure had been extended from Company in Hong Kong, sald their demands.

Union officials concerned, op- the estuary of the

ong yesterday that the scheduling of Min-ktong

the ss. Flying Arrow was ordered pranched by the "China Mali," (East Longitude 110

the attitude of the degrees, 40 minutes and North from New York yesterday-two deplored

executives of the utility concerns.

Most British shipping firms into a total disregard of the plight Hong

Kong are stil debating the of their workers.

It was impossible to ignore the effects of the Nationalist Govern Latitudo 21 degrees, 30 minutes). ment's announcement of their in- fact that the present rehabilita-elated Press.

River

ļ

KMT bombers raid Yunnan targets

aho the matter but added that Uves in London and Washington. From Hainan Island bases Nationalist bombars. hit

Porne

plan to

re-

kind of μ

The General sald: "Wo did not gune trade with the Communists buy CNAC and CATC planes and has been liseusset.

the meantine, amalt river 28 offelais of Civil Airi

Junks are still maintaining their "The reason for this is that hide-and-seek trips

are registered to reach our CAT planes West and East Rivers ports to under the Nationalist Gover72- bring back vial fresh vegetables, ment, and if that Government is livestock and foodstuff.

de-recognised, it would take a

EIGHT KILLED IN

PARIS PLANE CRASH

Paris, December 19,

a number of targets in Yunnan Province yes- tarday while conflicting reports from the Pro- vince said that Nationalist ground units around Kunming have started to attack the defected forces there..

long time and a good deal of Among the places attacked by the bombers was

negotiation to re-register this

equipment under a different goV- ernment,

General Chennault emphasised

Britain has not said officially Red China will be recognised but indications are such a step. soon will be forthcoming.

Latitude 30 degrees, 15 minutes) days after the Btala: Departments which, they said, was tantamount | Taiwan・・ from Hong Kong, too,

to the Western tip of the Tienpni Shanghai warning Halen (East Longitude 111 de- groes, 20 minutes and North

tention to mine Communist-held

› Incidents incurred· parts.

"Slace the enforcement of the! closure of the ports and the ter- ! ritorial waters in the above men-j tioned districts by the Chinese Government, there were a few) foreign ships which disregarded this rule and incurred incidents.

"The Chinese Government re- grets this

►

i

At least hins British ships were in the Communist-held ports of Swatow, Chinampe, Tientsin, Taingtao and Dairen yesterday. A According to the Nationalist warning, mining operations will begin tomorrow morning.

Probably all wind

Spokesmen.

"The Chinese Government with the object of avoiding such oc=|

of two local ship currences in future has specially firms agreed yesterday that the decided that as from December 12, Nationalist warning was most 1849, if any of your

All wing country's likely;

no and sal}," Ono said that he doubted very ships still remain within or near-| by the aforesaid territorial waters much whether the Nationalfat they should be ordered to leave military had sumelon't knowledge quickly within one week's time to mine effectively one Com- munist-held port, let alone seven or eight.

Continued On Page 3),

limit

Mengtse, 120 miles South of Kunming, Others included highway towns near the Kwei- chow border, apparently intended to interfere Four multilated and charred; that he would never perinít ány |

with communications between Kunming and bodies were recovered today from aircraft under his direction to the twisted wreckage of the Bel- operate in Communist-hold tor-

the Communist troops outside Yunnan, glan DC-3 airliner which crashed or In the Parla suburb last night with enld: "We have considered

Some vernacular press messages Street fighting was reported to death to all the eight persons negotiations inside Japan and from folhow, said that Central Kwongchowan, former French aboard,

other Far Eastern countries. How- Government units have heeded leased ferritory opposite Finnan The bodies

of the four other ever, as yet, there is nothing de- the orders broadcast recently, from Island, where the Communists crash victims were still missing. Anite to announce,

Tall, 170 miles West of Kunming, have broken into the city. -United Press.

Before the Nationalist Govern by Nationalist General Ku Chu- Reports received hero said that ment offered to sell their airlines tun

wireless: communications between veen -The messages added that fight- Haihow and Kwongchowan have to the two Americans, Mr. Wil lauer said that the Nationalist ing has broken out on the out-been cut.

United Prese reports that China's son: war took z now turn as the Nation. Lalu Po-cheng whose troops are !lats wrote off Tinghai Naval the offer on Yunnan's frontier with Kwol-

base,

90 miles Bouth of a ghice the announcement of the Page 2 the Nationalist Government asked chow and Szechuan

"and prepared to mine all General Chennault to purchase. Other vernacular. Preze reports Communist-held ports wong the closure of the designated parts both the planea and 'oquipment. said that the aft

attack on Kunming

Chinese-coast. Tinghal was the and territorlai waters by the] Page 32 33 General Chennault said that the by the Nationalist units has been

Reminders main base from which, do-Chinese Government, the Govern→ purchase agreement also includes called off as the commander,

blackade mont hos repeatedly notified, all Page 45 royal! 'à, clouse, which would require, the

eral Wang Ponyuan Molor-General

Governments that if any foreign Barclay: On s new owners to attempt to employ has re-switched his allegiance to

General Kup Chion, Com-ship meets any kind or danger Page 5 all former personnel of CATC and General Lati Han.

mander of all Nationalist forces in from violation of this rule it will JANG

THE WEATHER

At 9600 GMT (2 p.m. HKBT) pressure officials attempted to sell both skirts of Kunming and that Gen From Talpah. in hiali over Bouthern and central, China airlines to Pan American Airways, eral Lu Han has appealed for

and over the Pacific to the of Japan. which owns 20 per cent stocke Between those two high pressure systems CNAC..

• well defined trough of low blessuto

stretches NE from Formoen along, the

E east of Japan,

Today's Forecast-Moderate

Overcual with batches of drisale,"

Yostering's Weatheri

winds,

Maximum 108.8, der, Fab,` Minipruma, 63.0dky, Fab, apt. Runshinez NILA SA Made Rainfalls 0.7 mm 0.08 Is. Tolsti no

Jan. 1-20.5 mm. 82.54 --Ans), against an average of 2110.5; mak, m

Houdinær at M

-Baro; at mm. VAT) 1017.0 - 1010.@ ..

CS: Equale)

Rel. Humidity VAR STRAVADO EL BOND Dew Point", 60-y.'61 deg. F;

Wind Forms

132, 15 knots. #mu

1108-

· 1 help from Communist General

After PAA refused the offer,

KUNMING RETAKEN

paths Talpih, Decanther 10.

Kunming was" tadaptúrad by Nationalist forous at 4.30 - pun. (local, timu); today, mak

cording to Chinees. Air" „Fores, reconnalasands report.

hal

effectively

"The military authorities of the Chinese Government can render" · "Adequate security for them to pre and to avoid un necessary danger. However, this dass, not apply to ships' which, are intending to sell into the said, regions

On Other Pages

Parmantsila

Bridge

plimaxes Popa's;

WThe reports added that a con- Chúßen, “árchipelago :¦in which have to bear the responsibility by Reigntia

alderable number of Air Force Tinghat Is located, said the Com- herself, they personnel caught in Kunming by munista assembled, a formidable The Chinese Government with 0.8. Training, Jap: Diplomate General Lu Han's defection has force on the mainland preparatory the object to strengthen the Page folned his catnip,

to Inunching an offenalive.

rufe will adopt more against aforesaid.

Germans Meet To Found Anti- the islands with the first favour necessary and effective moantres

Stalinist Party west Red pursuitable went fat fit any foreign shipastoschee Page Further South, some

20,000 General Kud, who arrived in mines or meets any kind of dam-2 Rusala Contructing 1,000 Bub- Communist troops, were said to Talwan to report the latest dosage or disaster in the future from m be converging out the borders of volopments to the Naval Hedd violation of the rule obviously Pass 12. Indo-China in pursuit of General quarters, told the prese that the she has to bear the responsibility Finance "And Colimaros

troops sutrwaling from Communists had prepared, a large by herself, the circular con- F13) Kwangsi, to Indo-China);

| scalo aniphibious assault,

cluded. #2

Ale: ohipping Movement

Streams of Chinese poured into Many of the infiliential arrivals hold passports for entry into the United States eventually-Asso-

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