1950-05-25 — Page 1

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ERNEST BOREL

CHINA MAIL

No. 34596.

ESTABLISHED FOR MORE THAN 100 YEARS

PEKING RECOGNITION CRITICISED BY EDEN

Bevin defends policy in Commons debate on China

"NO CONCESSIONS"

London, May 24.

British recognition of Communist China was unfortunate both in timing and method, and has brought Britain no`advantages at all, the Conservative deputy leader, Mr. Anthony Eden, charg- ed today.

Death of Earl Wavell

London, May 24. Fleid Marshal. Earl Wavall, one of the great Allied gang. erala of World War Ii, died in a private nursing home on, Wednesday after falling to recover from a major abdo. minal operation, performed on May's. He was 67.

Earl. Wavell died at 11.05 .m. at the nursing home where he had undergone an abdominai operation on May 5. He suffered a relapan lon Sunday.

the

During

War, Eart Wavell successfully took com- mand of areng where Britain's power was at low ebb, and by his ability retrieved the Beltlah fortunes. His chlaf military fame of the war wAR won' as commander-in-chief In the Middle East. As Vice- roy of India, in the last half of the war, his efforte con. telbuted to turning India from a state of near revolt to Ya wholehearted backing of the Allled

effort. United

*Press.

WAI

Mr. Eden, opening the House of Commons debate

on the Far East, said the Tories wanted it made "abundantly clear that there can be no ques- tion of making any concessions to the Com- munist Government of China in order that diplomatic relations can be established."

Britain anounced recognition of the Chinese Rods on January 6, and has since attempted un- successfully to establish diplomatic rolations with the Peking administration.

Mr. Eden deplored the "awk- ward dilemma" that arose afles Britain recognised the Chinese Reds.

"It is embarrassing," the for- mer Foreign Secretary said, "that neither Australia, New Zealand, Canada, nor the United States, nor France have recognised the Chin- ese Communist Government.

must say I should have thought that this dilemma in China in which we find ourselves, could without much difficulty have been anticipated.

He sold: "Although it may

unpleasant

be an

decision to

HONG KONG, THURSDAY, MAY 25, 1950.

China to modify

import restrictions

Import restrictions in China will be modified to facilitate trade between Hong Kong and the big cities on the mainland, according to yesterday's "Bino Tao. Man Po".

The newspaper sald Industrialista and merchants in China have obtained assurances from the People's Central Govern- ment that the restrictions would be removed,

it added that the new Government's Trading Bureau's agency in Hong Kong has already made controls with Hong Kong traders and industriallets for exporting goods to China. The newspaper said that the Bank of China, recently chularised the Chinese Gènera Chamber of Commerce asking. it for details of goods stocked here that will intereit mainland buyers.

The report added that the clroutar sald that the Bank han undertaken to introduce buyer` in China to sellers in Hong Kong to facilitate free trade, and to extend banking facilities at all ile branches in China.

Alleged

accomplice of Fuchs arrested in Philadelphia

Washington, May 24.

After American_G-Mon had interrogated_Klaus Fuchs in a British prison, the Federal Bureau of Investigation last night said that they had arrested the man to whom he is said to have handed atom bomb secrets.

He is Harry Gold, aged 39, of Philadelphia, who was born in Switzerland of Russian parents named Goloditsky, who became naturalised Americans.

CS-

When he was remanded on 1 bail to re-appear in court on June 12 on a charge of plonage, Geld was said to have have recognised the Commun acted as a go-between for the alternative Soviet Intelligence Service to and have come to the conclu make important

lon that the advice I gave to America. the Cabinet was right, and in

lats, I have searched my con. eclance as to the

contacts

in

vantage of a foreign nation, to

cialist Repubiica.”

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HK FINANCIAL SETTLEMENT WITH UK; DEFENCE COSTS

Hong Kong's financial settlement with His Ma- josty's Government has resulted in the slate being wiped clean up to March 31, 1950.

A sum of £998,000, claims still outstanding from the late war, was set off as Hong Kong's con- tribution towards the cost of reinforcements up to March 31, 1950.

Hong Kong's contribution for 1950-51 will be £1,000,000, subject to our carrying out certain military works for the Military.

This announcement was made by the Financial Secreary, Mr. C. G. S. Follows, in Legislative Counell yesterday.

thi

No commitments were madu | show that the actual rate of ex- change at which funds had been for 1952-63.

to Macae was Jess reniftied favourable than the rate at which their claim against us had been calculated, with the result that the balance still due by Government was greater than was originally believed. satisfactory position we susgested

"In view of this to the Treasury delegation before the afternoon meeting that in our view the preferable course an overal! sider this proposal, and the next would be to alm settlement. They agreed, to con-

morning it was decided that we

The settlement was approved by Council, though it was termed a disappointinent by Sir Man kom Lo, in that as a result per Colony will have to spend 25 cent of its income on defence and

late

rather un-

should aim at a settlement in rèn

"Proposals, on this basis were

Makao

Seven killed in Glasgow accident

3

Glasgow, May 24. Seven - persona were ro- ported killed and 40 injured today. In a freak colilaton be. tween a trolley car and a double-decker bur.

The top-heavy bus over. turned in the path of the speeding trolley. As the bus lay on its side, the trolley car crashed through the bus roof and mangled trapped passen. gors.

Workmen used oxyacélytena burners to out EWAY the wreckage Land releasa the injured.—Associated Press,

New Tax Ordinance passed

The Inland Revenue (Amend-

few years to come, I think it long been watching him, sald Gold research project at the Philadelpus sorts arising out of the sumoher paid to; the Internationatil the eslíamiód dicit was, <chly'

will turn out to be right"

the wrong stap."-United Press to vea Along

and

security. He agreed, however. It

settlement possible. result of the negotiations which Mr. Follows told Council the he conducted with His Majesty's Government which led to the settlement. He sold:

"As I explained in my Budget cot of the Bnanela! year 1949- framed that no money speech, one of the Habilites, then 30, 10

would actually pass Indeterminate, which it necessary to tako into account, Vas the contribution which this subsequently put forward, but Government had been, asked to they excluded the Macao clabas make towards the cost jet, rein which would have, meant that forcing the garrison, I mentioned this Government would have had that this payment, which was to pay separately some £300,000 ment) Ordinance 1950 which rate of quite distinct from any ordinary to the Foreign Office. This was raises the standard hot satisfactory from defence contribution and which of view. We therefore put. for 10 to 12 procent, was passed our point earnings and profits tax from related solely to the present need ward a counter proposal which into law yesterday, wit, the Union of Boviet -80. for strengthening the garrison provided for the inclusion of the The only comment was from

above its

hnd normal level.

In the general the senior unomdial member, Mr. Taceo claims been the subject of negotiation Gald was born in Switzerland for some little thing. The sand otlement and that we should T. N. Chau, who recalled that

Feceive

credits in respect on December 12, 1910, and was point taken up by this Govern certain claims which we did not unofficials had asked Government of during the Budget debate, the brought to the United States in ment had been that in consider certain 1914 by his

consider were a fair, charge | to reconsider its decision when Russian born parents He was senior biochemist during tribullon it was essential to take

lug the amount of any such con- against this Govertiment and also. It originally baked for a 30

per tha

on a heart

foto account the claims of vart-respect of the recoverabla cent Increase,

At that time, **** portion of the unspent balance of

and Mr. Chau, The FBI, who said that they had past two years

phia General Hospital. He le

war which still remained unsettl- told the agents who arrested him

of Science ceived his Bachelor "I do not think that we took thought I would be helping the degros in 1940 from the Xavier Reached a very formidable totale bysit Malary Government, ments as inentioned the inabi and which in the aggregate Red Cross from the advances HIC$7,500,0002 Now In view of mada 10-Hong Kong, Government. kuluunari commi- Diginally whose final aims ap- University at Cincinnati and was It was felt that the negotiations gay had a dial Secretary in hKRGIN and Associated Press.

the road to Indus associated with the New York could not satisfactorily be pur-Cost of BMA the tailer on the damela le trial strength."

correspondence

When our counter-1

ter-proposals hent with the Home Govern For more than two hours Dr. Laboratory from 1040 until 1945, sued by

a. Obtained secrets

therefore arrangements, wete Emil Klaus Fuchs, the atom spy serving 14 years sentence

Gold obtained secrets of the made for a discussion in London were submitted to the Conference And also in view of the printin It was explained that dimculties hereuse having been cut down to Russla, talked atomic bomb from Dr. Fuchs and, which I was to put forward were forezëzo' about including by 50 per cent; he felt that the passing secrets

the Hong Kong point of view,

knulat, Agree to the tinomialals." the Macao claims, but It was with two United States security in turn, gave the data to "John

these circumstances, delivered them to who chiets seeking to get from him Doo"

cedure could be worked out

We earnestly hope, however,“ Information about his Communist Russia, according to Mr. Hoover. 10 Loudon na April 21 arriving subsequently agreed that a pro- modified Increase of 124 per cent. contacts in America, Reuter con- The FBI chief, said Gold and there on April 23. After a series whereby these difficulties could that so soon as conditions war-

of

discussions preliminary Fuchs first met carly in 1944 on

rant, Government will abandon a report from London, They were Mr. Hugh Cloff. 49- New York's East Side and met on 1 April 24. and 25 the first full | DR "Overcome. :-Kaere 'was, how this extra impost and revert to

took every meeting of the Conference took wallsfactory conclusion of a settle

the original 10er cent standard service Shipping

between year-old Assistant Director of the Jater

was fortun- |** place on April 201

orment on the lines envisaged and rate," said Mr. Chau, Bureau of Investigation Bronx, Shanghai and North, China will

-Two amendments were approved My Hoover sold at later meet. jate enough to have the support this concerned the value of stores and Mr. Robert, Lampher,

1 J. F. soon be restored by

ings in Cambridge,

Nicoll the Cooler shipped to Hong Kong by the in the committed stage concern Secretary, who sacrificed part of flying the flag of the Chinese special agent.

They drove 15 Wormwood setts, the Philadelphian received his leave to attend most of the Wer Ofee which were retained Ing the revisions in the graduated People's Republic as the State- owned China Merchants Steam- Scrubbs-Frison,-in-West, London, both written and oral Informg-subsequent meetings forby by Government departments after scales of salaries tax.

the close of the British Military in, a plain van and saw Fuchs Fucks provided as assisted me throughout the dis- Administration. One of the con-

his work at Los Alamos." cussions and his detalled know- yesterday in the room used by

ditions

under which H. M. G. Tawyers when they visit prisoners. Gold received more information sumption and its branches in with them were an offloor of thefrom, Fuchs in Santa Fe, New Ledge of the various `outstanding waived the recovery of the cost

claims, on which he had been

ht their last working at this end prior to his was that the value of such stores In 1945 and

the Military Administration Tientsin, Tsingtas, and Chefon Special Branch of Scotland Yord

departure on leave, proved of the would be recoverable from Hong have already begun booking and officer of MI 5. *sewing

Fuchs escaped the job. learned from

Gold The Foreign Secretary, Mr. cargoes, it is

--was taksa' in 'custody by greatest value, /. FBI at

at his

"The procedure adopted at the afores actually shipped to Hong Kong funds. The value of the Philadelphia home Ernest Bevin, said that if Bri- shipping circles here yester mail-bags in the afternoon by his the

before Arst full meeting of the 'con-Kong by. the War Office was. tain had failed to recognise day.

voluntary decision to be quer-and held for two days tioned.

formal charges were made. Communtat China five months

ference was to undertake a do-known and the value of the stores, Indicate talled examination of all the out-sold by this Government on-ba- Mr. Hover, did not ago, the initiative would have. The source sold that foreign American investigators are ex-

this whether Gold's orrest was a re-standing claims. We felt that half of the War Office was also nice -gone to Russia, and the West ships continue to be favoured pected to visit him ogala

sult of

of the

questioning of this was not the best approachkno current would have "thrown the Far with special permission to run week East away for ever."

between China's coastal ports of According to some reports, they Fuchs by FBI agents in London, as it was clear that many claims known. The gap between these

have accepted the Philippine the 'Mr. Bevin admitted to Perlia own merchant flect is not expect- lat today's session and cabled further hint as to the identity of promise baris for the fall facts i greater than could be becounted vitation to attend the conference.

the tonnage shortage of China's used a set of prepared questions Neither did Mr. Hoover give any could only be settled on a com- two ulgures was, however, much comprise the wared to be relieved for sometime to preliminary report to their chle, "John Doe" or whether he is could not always be established. for by the stores bequeathed to

Moreover, His Majesty's Govern- British Military Administration morrow morning for Baguio, Mr. J. Edgar Hoover, in Washing within reach of FBI agents.

The FDI chief said Gold was ment would obviously be reluctant

**to offer any ured by Soviet intelligence to

concession until they However, representatives of 100.

Fuchs had the right to retus- Chiness the CMSN and other

intermediary." were

of the Como iden Given agents to have turned over hir Bgure which the Hong Kong He was to Information to "John Doe" an Government had in mind for its ngent of Boviet Russia and contribution towards the cost of

un reinforcements. "divers ether "persons"

"It seems to me that if the Commonwealth and our immediate allies were not able to move to gether with us, we would pro- bably have been wiser to hold our hand for a little while longer and Foc whether we could not make a united front on this lasue and take our decision together when It would have been at once more effective and more rewarding."

Mr. Bevin's

Three suspects statement

in grenade case held

Three Chinese men were ar- rested by the police yesterday on suspicion of having been connected with the hand- grenade throwing incident out- side the "Sing Tho Jih Pao" on May 8.

It was learned that during the arrest of the mon a large number of ducuments were seized by thị Police.

Shortly after 8pm, on May &. a Chinese was seen to throw a hand grenade at the building of

d

injured.

this

incld

Chines

ment that although Britai the first major Western power to recognise Communist China, formal diplomatic relations have still not been stabilized. But he -aid, he believed time would prove that he was right.

He said: "I did not think 'that our representative would go to Peking to settle everything In a

CMSN to ply between S'hai,

Northern Ports

vessels

ship Navigation Company is actively preparing for the re-

come.

tinues

in

private shiping companies in to be interviewed, hut be agreed Hong Kong and abroad have to answer questions.

beck Instructed to Intensify their efforts to purchase muft- ablo vrascia to meat this Indroms- Ing demand following the ac cupation of Chusan felanda: by Communist forces.

erult

the

Occasions A Manhattan

Brooklyn,

and

Queen's,

Massachu-

xas:in. September, 1945.

I dis

In

Larger figure

+7

I new

OM

"Equally we were not in `d position to commit ourselves on this point until we know o** actly which claima we were

· expected to meet","

Incidentally It had transpired in the course, of the, discussions

the fuformation available at the larger than had appeared --from-

Faces court

known, research Gold, who

Mr. Hoover said. Gold, explained chemist, was arraigned last the "Sing Tao Jih Pao." The ex- moment. I came to the conclu-

night before: Federal Judge he thought I would be helping a plosion took the life of an 11-slon' that the advice I gave to the

James McCranóry, who sat ball nation, whose faal alms I ap- year-old girl, Tang. Shun-king, Cabinet was right, and I belleve

The CMSN is not contemplat- at $100,000, adda. United Press proved, along the rond to inttus- white nine other persons werd that in years to come, it will turning resumption of shipping ser

trial strength; report from Philadelphia out to have been right." *.

I "Particularly was takent with vice between Shanghal and South

The chemist made no "effort to In connection with,

idea that whatever ent, two weeks ago

Mr. Bevin was making what China ports by its own vesseln raise the bail money and was

prison would go to help making living conditions far more advanced In Philadelphia here Lo for giving the pollos falso for some months. He was operat- for Talwan It is reported.

Nor is the Company preparing of six FBI agents,

here in the United States," Mr. information and, yesterday a 10-ed on for haemorrhoids early this

shock Gold's arrest come ha a year-old boy was sentenced to month, but cut short the treat to call back now its vessels at

Navy employee with

of viointing

The statute which heimur the Foreign Office were able to i

provides a whom he made his home, and to of his 10-year-old Russian born penalty of death or up to 30 rother Joseph Gold said: "To ny prisoner said the arrested ON OTHER PAGES knowledge my brother was neve

Hoover

also said he fol a Communist.

unist. My father. wasch

h-worker Communist A

that as an ally I was only helping And I myself heavier Union to attain certain hate Communism."

But the streated man becerdin- Information, that I thought it was

entitled to the Edgar Hoover. "admitted his contacts The case was the first in which with Fuchs and had given aides an Americans has been arrested? for atomie, spying and the firs tailed account of his activities."

Gold was arrested on a baste brak in the notorious Fuchs case **** in the Ugljed States-Reuter and of Information in Brookin United Press.

filed" Japanese Press, reports sald Now York ** The warrant "with in

was fined $150, by mr, din-ahing, may be his last public appearance. In view of the imminent ·batud | taken to the Moy under guard along the road as we know them that some of these claims were

three months hard labour. by Mr.ment to attend the Big Three and present lying Idle in Hong Kong- į to his brothers, Joseph, `,99, à (Xoover quoted Gold A3 long Kong “end. For example,

Reynolds for creating a public Atlantic Pact foreign ministers' The crews of three versels have civilian mischief by giving the polire faled conferences here. He will return already announced their loyalty to hospital for further treatment to the Peking Government a few Information which led to the ar- rest and detention of another and a second operation later this inonths ago,

The Weather:

"ADES UNT (2 DM, ZIKAT) anjaniki cyclene", dordipäive „Jabem do the 8 w depengelon szpades, to walat wer Chri Frond it my trough stends" › Kaplward through the Bouthern Loochoot, 5/

Bijkerly Who?, inimky ht" festë pausternă. "uhe, yeḍzil kwith,Inir Kiatviyala, during, the

week, and will take on extended

vacation after he has recovered. ;

Peking's seat

in the UN

C

Mr. Beving - told the | House.

that Britain: fuels that Com

Jap trawler attacked by

Chinese gunboat

Tokyo,, May 24.

never

to the 781 Director. Mr..

3. Muntat:China should be given » several crew members were in which he was arrested accuser

--scal in the United Nations, adda

Associated Press Albani

jured when a Japanese trawler. | him of conspiring with an un-

A was shot at within the Mac named "John Doe" to obtain

Arthur Line by a Chinese gun-atomic

"I think that it is better for the new China to be inside the UN

Information from Dr

boat this morning buchs while he was in the Unitet. We do not want to ostracise any- The reports Bald the Kyowa Stalesid 3944 and 1945. The he said. Maru, No. 17, of 60 tons was with complaint shared/pocifically that In the MacArthur. Line, delineat Gold acted on behalf of Russiaway Escharged that Dre Fushe Ant

me on political grounds, he sa

"At the same time," "Mr." Davin | Ing the legitimate wapabero dish- accused the Soviet Union of being grounds, ont chimbar Con strike” against the UN. Fengroup in the Eag

are holding up the work when it was subjecada tossunro and this will not do,' by Chinge Vesa END230 AM)

Japan. Une fem

years

COLLISON GETS

18 MONTHS

wester while

Molter tug, overdun.

Pak Tramways