1950-05-30 — Page 7

THE, CHINA MAIL, TUESDAY, MAY 30, 1950.

Page T

4

SECRET NEGOTIATIONS WITH RUSSIA LIKELY Big Three meeting's success gives West bargaining advantage MR. LIE'S OPTIMISM

Washington, May 28.

The Secretary of State's deals at the Big Three meeting in London may have cleared the way for secret negotiations with Russia, observers belioved today. The Secretary of State, Mr. Dean Acheson, in reports to President Tru- man personally tomorrow and to a Senate-House session on Wednes- day, will also give a first-hand account of North Atlantic alliance de-

cisions.

The fact that both Mr. Truman and Mr. Acheson indicated a sweeping suc- cass for the Big Three meeting was interpreted as moaning that the Western powers held an advantage such as Mr. Acheson considers necessary for successful bargaining with Russia.

French attitude awaited Port

London, May 28.

1

al-

of the answers

Mr. Acheson has said repeater-iminary talks, but they face a ly that effective agreements with far more imposing "action"

before the London the Kremlin can be reached only liance then when Moscow can be confronted sessions. Some with "situntions" of strength. may come when Mr. Lle meets The purpose of the London con- Mr. Acheson and President Tru- ference was to build up suchman. situntions.

Diplomats here also are con-

The "fringes" of the United Nations-not format UN meetings

Both President Truman and Mr.sidering the possibility that the Acheson are looking forward to Savlet Amborsador, Alexander talks this week with the United Panyushkin, who in Russia on Nhmet Secretary General, Dr. leave, may return with special Trygve Lie, who recently discuss-instructions. British officials here are nowed the cold war with the Russian awaiting d clarification of the leader, Josef StarkA cædi with the French

Britain's British attitude to

and French

Fareign but Informal get-togethers of The proposal to "sit in" on the Ministers. Franco-German negotiations on Mr. Le said he was frankly states "after hours"--are regard- domajébe most likely spot for the Schuman Plan-without aptimistle of chances of improv-

The preliminary 11Begotiations. being comndtted to the prin- ing International relations,

most likely

American scheme, ciple of the

writes the Western Allles have

the Am- bassador-at-Large, Reuter's diplomatic correspon-angers crassed. dent.

The effect of the lightning ex- changes at the end of last week between Britain and France ou the Schuman Plan negotiations has been that Britain, in the light

of the known French request to commit the British Government to the principle of the plan, has reaffirmed a decision to uncommitted a

this

stage.

remain

t

In diplomatic quarters here

clearly recognised that there

is now a well-marked difference between

een the French and British approach to the problem of Ger- mon industry.

It is also thought that Britain has no intention at this stage of being committed elther to the principle of the plan, or to t

would he

position in which it impossible to submit counter- proposals or amendments of sub-

stance.

What will not be clear in Lon- don until after Whitsun when the

French Government answers the

British note delivered in Paris last night, is how serious the dif- ference between the French and British, standpoints will prove to ba.

If France refuses Britain's re- quest to attend the Franco-Ger- man laiks "without being com- mitted in principle," then a seri- will have been ous difficulty

Britain way of placed In eventually joining the industrial merger plan.

the

but

MM

MOON.

'Ere, anybody parked a Flying Saucer on the wrong side of the road?"

Labour Gov't switches to policy of decontrols

London, May 28, Labour Government has suddenly switched to a policy of decontrols and economic liberalis- ation since the "hush-hush" meeting of Labour Party chiefs at a' country mansion at

their negotiator prom PARIS Latin. Dorking, Surrey, last wook-end. Proliminary talks Jessup, who is currently without in one short week, the Government has derationed

American diplomatic major assignment. Dr. Jessup quarters are agreed that suc-did the spade work for the agree

ended aessful cold war bargaining ment with Russia which

Most

with Russia involves secret pre- the Beilin blockade an agree- liminary talks of an Informal, ment that took shape largely in private and make corridors, non-binding nature

lounges to

the United Nations. sure there can be some bans cfces t

Department officials for formal agreement. If such Slate

said a bosie can be established, they Dr. Jessup expected to be at the said, then a formal conference UN for the General Assembly can be easily arranged.

meeting in September and had

It is not known here whether said he "probably could go enciler the Russians would agree to pre- if necessary."-United Press.

Depression hits

Jap co-operatives

Tokyo, May 29.

Depression__has_hit_many of Japan's agricultural co-operatives-koy elements of General Doug- las MacArthur's programme for firmly rooting democracy in the paddyfields.

Ironically, the co-ops' plight is partly the result of two occupation measures the deflationary economic stabilisation programme, and the American incentive goods distribution.

Both

SCAP and Japanese sources say the only way off the financial rocks for many of the farm co-ops in more borrowing. But Interest rates are high, and here are the Central Bank of Agriculture and Forestry is officially reported tion which now exists will dis-on the verge of going broke. appear. Reuter.

On the other hand, if France, in the light of the latest British note, admits the British proposal, diplomatic quarters optimistic that the British hesita-

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Already this spring 47 .co-ops have reported their inability to

depositers

demands

for

meet cash. More than 120 others have limited deposit withdrawals, and 440 others are planning to re- strict deposit withdrawals. Minis- try of Agriculture pificials be- lieve the situation actually Is much worse than these partial reports indicate.

U.S.puzzled by Russian

move

Husband thrown out of kitchen. · window by wife

New York, May 28.

A plump, five-foot three- inch, gray-haired woman ad-

that she threw his fall, par- alysed husband" ftam. a ficken window Live stories to his

death.

nearly all steel, agreed on more convertibility of sterling in Britain's proposalatonthe European Payments Union, relieved the butted without remorse today den of double taxation on incomes from many overseas countries, given the housewife the right to buy milk from the retailer of her own choice, increased' London taxi fares by a third to an economic level and given the motorist all the petrol he wants by reaching an agreement with two American oil com- ponies for increased supplies to be paid for in sterling.

the

coup.

more

"I Just it, that's all," said Mrs. Anna Bornholdt, nged 56, when asked why she lifted Fred Born- holdt, aged 184, - from bed and dropped him out of the window in their Bronx apartment Jast night.

The magistrate, Rafael Murphy, ordered her held for a hearing on Wednesday on a homlelde charge." The biggest effect of this new dollars-though not

than The police said her helpless hus- "Freedom" has been felt so far by Britain can afford and probably band pleaded with her not to do the motorists and

London less than she will indirectly re-it, but she said she told him, "I Stock Exchange,

have to." On Friday evening, just before

On petrol Britain has gone some it closed for the Whitsun holiday, the Stock Exchange, elated by the way to meet the American case. derationing of petrol, gave the The mounting supplies should be technical signal for a new bull used to enlarge consumption market.

The couple had been married 20 years. Bornholdt, a waiter, had been bedridden since he suffered in D stroke last November. The

the-sterling-area-and-not-merely police said Mrs. Bornholdt ap- The index of British industrial to oust dollar goods to enlarge the barently broke under the strain shares

edged up to 110.4 just currency discriminations against of caring for him.-United Press.

110.3 American exporters. This removal the peak beating

boomlet of Anglo-American friction may during the devaluation

of

last September. Stock Exchange be the biggest result of the dera- observers this weekend fancied Lioning-Router. the chance of a real boom after the holiday.

Anglo-American economic re- lations have olready benefitted strikingly.

for proposals

the Britain's European Payments Union, and the her agreements on oll, are biggest steps yet taken towards convertibility of sterling.

Policy defended

Con.

British officials hero were saying today that some Ameri- Continent Can officials on the have in the last few days bean stoutly defending Britain's new manetary polley against tinental criticisma,

that a These criticisms were European Payments Union on the lines proposed by Britain would involve Belgium, Italy and France converti- of any in some retreat from were ignorant

Washington, May 28. Diplomatic officials were at loss today to evaluate Russia's decision to withdraw its dele. gates to the Allied Council for Tokyo. They said

However, the SCAP agricul- ture chief, Mr. Mark Williamson, Japan in said the number of insolvent co- they

ops is small in comparison with motives the Soviet might have bilty.

the total of 13,000 authorised to had in replacing Liculenant- In fact under the British pro- carry on credit functions in General Kuzma Derevyanko posal, Britain's bilateral Japan's rural villages.

Serious situation

He agreed that the situation In serious in certain areas, but sald borrowing of funds, by the

and his top advisers with a number of lesser officials.

agrec

coun-

ments with the Continental coun- tries would wither away, except for the old sterling balances. All sterling currently earned by the The change led to speculation Continental Marshall Ald

vertibility as the Union's clearing units because otherwise no country would exercise the Omclule attached no particular option to hold sterling instead of

in Tokyo that a major change in tries would have as much Russian occupation policy might

co-apa to meet the temporary be in the making. largo demands for cash during

the planting season, plus pond-

Ing foglalation to requira more significance to the fact that the the units.

соп-

own

effective supervision over the Russian move was made as the This means some real converti- co-apa banking functions should U.S. Secretary of Defence, Mr.bility as well Toive the problem.

Louis Johnson, and

like

as full freedom to John transfer within Europe any cur-

Mr. Williamson

mson said the co-ops, Foster Dulles, Republican State rently earned sterling and other many Japanese retailers, Department consultant on Far currencies. were caught with large inventories Eastern polley, prepared to leave

when prices began dropping They for Japan for conferences with How much convertibility? American "Incentive goods" at a General Douglas MacArthur.

Invested heavily in semi-luxury

surplus

ROBESON OFF

FOR LONDON.

New York, May 28. Paul Robeson, the Negro singer, left by air for London today. He will address a two-day "pence" meeting opening on Wednesday. --Heuter.

WORKERS OCCUPY SHIPYARDS

Naples, May 28. Nearly

today 4,000 workers occupied the Liva shipyards here to prevent a lockout. The man- agement of the shipyards ordered the lockout allegedly to avoid sabotage during a "go "low" strike which began 10 days ago.

The strike, was called when 150 workers were dismissed for low output. No incidents had been reported by late tonight---Reuter.

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Britain's new monetary policy, ment, the co-operatives had on military installations, but they February 1 a total of 132,000 also will discuss the Japanese in short, is to strengthen sterling million yen worth of farmers de-peace treaty question with Mac by making people what to hold it posite. About 27,000 million yen Arthur.

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superficially that jetla only!!

the of this was out in loans, 9,000 Mr. Dulles, who, recently was extra patrol for Britain

#for million on "deposits in banks, 52,000 million on deposit with assigned by the Becretary. of American sources will be bought prefectural credit federation and State, Dean Acheson, to work on whall, in inconvertible sterling. 224188 most of the rest tied up in inven- the treaty will leave about the In at least three ways. It would tories,United: Presz presa 24- same time----United Press. + - InvolvaTMsome convertibility into

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