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Mezzanine Floor, HONG KONG,

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Editor in Chief....... Reporters & General Office

(four times)

24384 32312

THE CHINA MAIL, FRIDAY, APRIL 14, 1950..

The Dollar crisis--No. I

BRITAIN AND HER

DEFICIT

controls which Great Britain The modern

Emperor

Great Britain had no one knows

the increase of UIC Imports to Dominating all the man-, India, Pakistan, Ceylon, South

the rigid oeuvre in the new Parliament Africa, Northern and Southern North America and

Rhodesia, the Crown Colonics, Is the question: When will the Burma, Iceland, Iran and the exercised over imports from the

The In pro- dollar area. chronic economic crisis enter Mandated Territorios.

achievement small its next acute phase? The war times, the United Kingdom in keeping the deficit so

was the greater, because in the had a current surplus account general view at the moment with the other countries. of the yearn between 1938 and 1948 the

These is that this may be in the| sterling area.

may be terms or trade between Amerl- the overseas sterling can and summer but is more likely to called

The United countries.

King- entered in be in September. For the last dom exported more to them and

Amerien's Invours. Great Britain had to pay pro- three years the crisis has been earned more from HK$18.00

them that portionately much • higher for intensified cach September. they earned

the United things which St Imported from Amerien than America had to The related question is: How Kingdom."

pay for things which it imported All news contributions to be accute will the new phase be?

Irop Great Britain. In other addressed to Editor-in-Chief.

Each of the parties is trying to

words, import prices Increased Advertisements and Buletind the answers to these ques-

much more than export Brices: tions. communicatione should be ad. dressed to the Company CHINA MAIL LTD.

Bubscription Ristor

3 months

6 months

One Year

HK$36.00 HK$72.00

MARRIAGE LO-WU-The marriage between Mr. Horace Lo, son of Mr. & Mrs. M. P. Lo and Miss Mema

from

By "WINDRUSH”

Their tacties in Parlia Special Correspondent

ment will depend on what they decide.

there is of its

countries

The United Kindom was in de felt with North America Le, the U.S. and Canada (to the tune in 1938 of about $430 million). But the oversens sterling had in prosperous years a surplus they with North America, and

These also produced new gold.

the dollars and gold flower to United Kingdom to settle the de ficit, of the

sterling countries with the United King

United a dom, and the

Kingdom used them for settling its deflelt with North America,

With British politics so much overshadowed by the crisis, it i strange how' little understanding general nature, People talk of the "dollar mp. They, suppose, rather vaguely, that Britain's trouble have come about simply because the United Wu, daughter of Mr. & Mrs. Kingdom ucils too little to the S. H. Wu, will take place on

U. S. and huys too much from April 15, 1950, at

S. the U.

this Actually

ja a Sextatry. Supreme

Court.

The crisis is false picture. A reception will be given mu

much more complex thing. It after the marringe, at the

Is crisis of the deterioration of the balance of payments of the Hong Kong Hotel, Jacobenn Room at 3 pin. No invitation countries of the sterling area va a whole with the countries of the enris being issued, but all

friends arc dollar area as a whole. relalives and cordially invited.

the

OUT OF THE PAST

Lucid study

The most lucld, and at the same time authoritative, study of the crisis is to be found in last

overseas

own

It will be seen that there was chus a compact system of inter- national trade from which all the participants benefitted.

1ow have conditions since 19307

changed

By WILLIAM MATTINSON

Good Morning

One can only hope that the minor Incident in the United Provinces will Bareilly affect the India-Pakistan negotiations.

•

"Man charged with being drunk, neapable, freed."

The magistrate was nclined to think the whole neldent hal ndubitably better be forgotten.

I see they're still batrecking-up.

In an office in. Broad street, New York, sits a modern emperor whose tentacles stretch round in Peking. the world from Rio de Janeiro through Europe to Shanghai.

+

"For sale: young, girl's bicycle. half used."

Which ball?

Local experts.again.

Less favourable It is true that the UK position His subjects number thousands, vis a vis the US. In 1940 was his "dependents" millions; yet he

is unknown to all save

a few rather less favourable than these Agures would suggest. Its in people who study big men and

the the early years of the war

This twentieth-century emperor "There was a further drop in visible exports had dwindled. In big business, UK had liquidated much of its is Col. Sosthenes Behn, d8-year- the American dollar...yesterday, investment in the U.S. Thus netold president and chairman of the closing rate. .being $0.125

invest-

International Telephone and Tele-

$0.04 against

at closing ment fell by rather receipts on income from than ***

Kraph Corporation-the IT. and Tuesday." $100 million. There was also u loss on the earnings from ship- ping. Nevertheless this also was not enough to explain the acute dollar shortage

prea.

more

in the

sterling

His odd Christian name!! means

American

on

admirers

of the should name

not be will be conscious of a feeling of contradiction.

"Life Strength—is Fellow in Tokyo says he has me peculiarly apt. For he has grown become a Communist as an act of in strength for 40 years since the atonement. he and his brother A third part of the dollar de- day, when ficit of the UK account rose, not Hernand took over Puerto Rico's whose cut of transactions with North telephone system us payment for apoken}

a bad debt. America, but out of trade with

At its peak I.T. and T. had other countries. For 1948 this

Bagers in ples in Brazil, Argen- at $550 defcit was estimated

China, Rumania, Spain, About half of this de- tina, n:illion.

Germany, tran- ficit was the result of oll

Great Britain, Eire, suctions, chiefly of the purchase Switzerland, Belgium and

West United States. of petrol from the Dutch not

Judles and Venezuala.

Similar ly oll transactions in the Middle Enst paid for in gold and dollars. In 1948 the UK dollar deficit was reckoned as follows:-

With with Canada $550,000,000.

Not principal cause The first thing to notice is that the deficit in the balance of pay autumn's bulletin of the Researchments between the United King- and Planning Division of the dom and North America is Economic Commission for

the principal cause of the crisis. Europe, which is an organ of the

In fact between 1938 and

1948 merchandise the defelt on

ac- United Nations.

United Kingdom count of the given there deserves much wider.

with the

U.S.

actually diminished. publicity than it has so far e

It is true that the defeit with Canada increased. But the total deficit in trade with Canada and the U.S. combined was in 1948 only $77 million

ceived.

The Analysis

The basis of this analysis is

the comparison of the pattern of

trade of the sterling area coun- trics in 1938 with their pattern 10 years later, in 1946. This shows startling changes. would have

They

The Peking Government has been much less, pre- cipitate in carrying out the military order requisitioning the military barracks in the old Legation Quarter than it has been in many other things. Sooner or later, of course, action was inevitable. The Legation Quarter itself is almost a unique institution: a walled city of its own with- in walled cities, It never quite lost the defects, and some advantages, of its un- happy ancestry in the Boxer Siege. Even its walls still bore till quite recent times the legend "Lest we forget."Ireland, Australia, New Zealand, It had an atmosphere about it, nevertheless, singularly in harmony with the ancient capital itself-dignity, aloof- ness, and reminiscent of the past.

-

higher than in 1830. Clearly,

then, this is not the main cause

of Britain's present difficulties,

The reasons why the UK trade deficit with North Americu Was

been even more striking if the year chosen for comparison had been 1837, for in 1938 certain abnormal conditions kept to such a modest sum were rendy causing disadvantage

had developed which were al- to

the sterling area.

The sterling arca comprises the United Kingdom. today

$400,000,000., the U.S.

with

other dollar countries $550,000,- 000 total $1,500,000,000.

But there are other major causes of the dollar crisis - sides the deficit of the U.K. These will be examined

tomorrow,

(To be continued)

Slow start to year of great pardon

rosaries.

By Alexander Clifford

#

confusion between pilgrimage and tourism,

Bonefta given under Britain's health service are said to lead the to malingering.

There's gold in them thar ills.

these years the All through Emperor Behn has fought a bitter

against dictators struggle economic crisis.

and

When the economic blizzard hit the world in 1929 and the bottom fell out of the American Stock Market, I.T. and T., with worth 804,500,000 dollars, ran into of 149,000,000 debt to the tune dollars.

assets

He defied Franco

It seemed that Emperor Behn

Now It turns out that the Nationalists don't want the planes elther.

a

This leaves the field clear for belween the straight fight Communists and the Americans.

•

"Big Angus McLean, a true son of Wales...

Welsh who hac...

Birds and boos

•

British schoolmasters have come

was finished; yet the storm was to the conclusion that, when it comes to teaching it in the schools, weathered.

During the Spanish Civil War, it's sex of one and half a decent when Franco was besieging of the other.

was in- Madrid, Emperor Behn

stalled in the shell-pocked Tele-.

lonica building.

Republican

Largo Caballero, commander of Madrid, decided to warned city and eyecunto the Behu that Telefonica would be blown up at 4 p.m. to ayold Jeaving it in enemy hands.

Behn's reply was: "I and 15 other Americans will be holding board meeting at 4 p.m. It will

be too bad If you blow up 16 American citizens."

The Telefonica still stands but

million dollars

Myrtle was wearing a dress last that kept onlookers on night looking.

•

Cupiti nearly got a friend of mine this week.

.

He had an arrow escape.

*

"Do you have fits of giddiness?".. the dector asked the middle-aged, stern-looking woman.

Certainly not," she snapped.

"I'm

"

ກ respectable married

to

In country,

cyc

a vibrant voice confuta

stoop.

A brisk man without hobbies ("His business is his hobby said. one colleague, ruefully), he is also a man without notoriety.

He an odd reluctance to be

has an biographical.

d'Affaires. He pointed out to an official of the Chinese Foreign Ministry that the right to use the compound for official purposes was once secured by Article III. of the But when Peking

A young man with a wind- again became the capital-Sino-British Treaty of 1943. burnt face, a staff in his hand,

In previous centuries only the and the capital of "New This stated that the Govern and a rucksack on his back rich travelled for pleasure. A pil- China"

that harmoni ment of China would accord plads his way dazedly through grim never expected to enjoy vanished. The city became to the British Government the glittering hurly-burly of pilgrimage. He acquired merit Behn no longer owns it. He sold the centre and hive of busy the continued right to use for Rome towards St. Peter's. by taking a hard and dangerous to Franco-for between 60 and 70 woman."

the land

living uncomfortably on them! revolutionaries: the Legation official purposes

In the churches, amid the charity of the faithful, and visit- In Rumania Behn sold out to the Queen Mary and Queen Eliza-

swirlings Quarter the silent habitation which had been allocated to musty shadowed

of cha

the Rumanian Government four beth with radio, and laid the tale- "He usually

came home

the Germans took vision cable from: Londos of ghosts, if diplomats ever the British Government in baroque magnificence, precessions ing a shrine.

Cx- days before hausted. He never thought of over the

Birmingham. suffer such transformation. the Diplomatic Quarter. He of girls headed by large, black

crosses and shepherded by nuns himself us taking a holiday. Nor

his vice-president, At 18, Behn's hair is thin but Something

to added thrt before the Chinese was bound

sing Iturgies in thin piping

did innkeepers and merchants Stephen Vogeler, was recently still sandy. A sharp nose, bright happen about it; but the notification of April 4 had voices.

much earthly gain found guilty of spying.

and a they Against the walls of the Vatl- expect to make People's Government did not been received, the British

In the Argentine Peron threa the tired can a group of Austrians, looking out of pilgrims. Usually

made an earthly -make-its.first.move_till_Janu- Government had decided to

lass, for pilgrims tened to confiscate I.T. and T.'s Like-the-chorus-of "White Horse paid for the board and lodging assets. H He did not-he-pald-for ary 6. On that date the open negotiations with a view Inn," poses for its photograph. A

and prayers.

them instead. Military Control Commission to relinquishing these rights dingy tram marked "The Basili- with blessings

But today foreign travel is a Behn has recently signed д Brazil to install in Peking issued a proclama- by agreement. He question- cas" grinds by, full of womensnist

And 4 comfortably organised, telephones in 27 cities. tion concerning the foreign ed the right of the Chinese with vells and prayer books and recognised pleasure for everyone, contract with

A motorbus with military barracks in

A basically shy, depersonalised the Government to requisition

British conquests

as one of smacks more of a vacation than

man, he is as clusive Quarter. It stated that cer- the property by unilateral foreign numberplate is parked officially paid-for visit to Rome

outside the Lateran.

a pilgrimage.

his own cak

cable currents. Married, tain countries had in the past administrative action.

The big query

The Pope very clearly saw this

He is to Mr. Hutchison

build broadcasting with three children, his home is Was in- utilised the right of station-

But that's about all there is to danger. In his Bull proclaiming

Sweden, lay com- a New York hotel.

He belongs to

to 12 clubs and ing troops "in order to occupy formed, however, that the see of the Holy Year in Rome. the Holy Year he warned pil- stations in

munications in Eire. land in Peking and construct People's Government con- And the absence of anything grims sternly against regarding

The emperor has staged some rarely uses them; ja director of

works inde- companies and barracks," These barracks sidered the compound should more to see has begun to arouse themselves as trippers.

He hinted that they should of his greatest conquests in the 21

as the old-time United Kingdom. So lightly does fatigably on all of them.

He is a pleasant man who lives and other installations--pre-be handed over in compliance respective emotions of uneasiness,

glec,

and despair in the parties come sumably including the very with the terms of the Military

only for his business and will pilgrims used to do the Vatican he hold the reins that his most directly interested. conspicuous wireless station Control Commission's order,

"Is the Holy Year a flop?" has still gives three days' free board lieutenants do not know him,

It was they who built Daven- probably dislike every word of try's short-wave station, equipped this very much. and masts in the United but that the question of pro- become the standard subject of and lodging to a properly accre

dited pedestrian pilgrim). States Embassy--would, ac perty rights in respect of the Roman small talk. cordingly be requisitioned. buildings would be settled Notices to the same general separately at a later date. effect were posted on the That is the position as it walls of the former military stands, and the barracks were

taken over on Tuesday. compounds in the British,

Since 1939 there has been its by-products. American, French, and Netherlands Embassies. The no military guard in the Bri- The Pope, when he declared Consuls-General of the three tish compound, and the build- this Jublice Year, called it The last-named Powers were orings, which were built by the Year of the Great Fardon." He dered to evacuate the pro- British Government, perty concerned. The notices were removed, however, from the walls of the British com- pound a few hours after they had been posted, but the compounds of three other Powers were requisitioned several days later.. Delay in carrying out the order in re-

Τι

Roman

He

on foot

He took steps to see that they The parties directly concerned

get cheap sccommodation the Holy are the Vatican should

Year passionately eager for its sue- under Churchs susplees instead of cess; the

Communists-equally being exploited by the inity. He all vulgar eager for its failure; and the arranged to suppress

and hotel and inappropriate trafficking in. owners peepers

interested in medals and rosaries.

drow up a

a tight programme of religious cventa to occupy the

the pilgrims' time.

But he could not reverse have made no secret of the fact that trend of the age. He could not of a world-wide spiritual regen- pilgrims. And he could not dis- been used for civil purposes, he hoped it would be the start completely turn tourists back into suade the merchants of Rome At one time it was thought eration

He designed it as the Church's from regarding them as tourists. that the Peking Government

In the interests of holiness he the Orst major positive move in the intended to take over

fight against Communism. The could abolish some of the more main premises of the various communists laid their plans of gaudy manifestations of the Holy Embassies as well as the defence; sabotage, If the Holy Year; but in an age of advertise- barracks, so as to break up Year seemned to be going really went that merely resulted in an

impression that the Holy. Y Incessant negging and the unity of the Diplomatic wille

was doing badly. if it went moderately; a

could not induce pilgrims. Quarter and force the various polley of

And the shopkeepers stuffed they preferred to travel in the was presumably because the presentatives in various parts

The summer. On the other hand the with goods.- proclamation coincided with of the city. Quite probably their shelves redecorated their shops and hotels, taking the

hotelkeepers the Communist the British recognition of the

rooms and

their prices. Restaur- Pope's word for it Peking Government. Nothing leaders felt this way about it. ants

threw

out new wings. were primarily pilgrims, expected was sald at the time of the Its silent, unifled symbolism Pickpockets and confidence trick them to now in at all times of the barracks in the old Russian must have been irksome to sters moved in for a Roman year. Embassy, but about the many who recalled with re- season Every conceivable method middle of February it became sentment the era of foreign of extracting proats from pilgrims Poor pilgrims known that as a result of the domination.

But now the Holy Year has Sino-Soviet Treaty negotia But while military barracks started so modestly that you can tions in Moscow, the Soviet in Peking are no longer either scarcely see it has

The Vatican

begunex Government had agreed to ornamental or useful, and

Year

gard to the British barracks Powers to establish their re- went quietly ignoring it if it to come in January; for ns tourists

of their compound."

some of

was prepared for.

plaining through Its

byBut

that they

So the Holy Year's start has not been spectacular. In January amera 30,477 pilgrims arrived. The Vatican claims that. Is three surrender the military part other facilities are adequate | that success. Ja notwspaper times as many as it expected.

made little diference Rome especially since pil- for the limited diplomatic) the number of pilgrims who phyto PAPER

to the surprises of the It was not until April 4 activities now being pursued sically come to Reme but by the grim turn out to be mainly that the Military Control there, it is to be hoped that effect in the hearts of the faithful, merchants, 1

by Communista bave done very poor people

#hampered: az little currency restrictions Commission in Peking not the unity of the Diplomatic nothing, cal wall exce

the flow, has been small, if fled the British representa- Quarter will be preserved, routine, pin-pricking

nough to show Home tives in Peking of their in- for this had, and will yet

the hotel

The Church; Has tention to requisition the have, its advantages not only military compound on April for the Diplomatic Corpar

was taken

ad the merchghis have that tourists are also

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