THE PREDICAMENT OF FORMOSA
Santuan
150 m.
Foochow
CHIN/A
FUKIEN
"PROVINCE Chuanchow
Amoy
!
175m
Swatow
U.S. NAVY
Cale
OF
Chilung
G.N.Q.
CHINESE NATIONALIST
FORCES
Suao
Hsinchu
PATROLLING FORMOSA STRAIT
Formosa Strait
135 m.
A HONG KONG 100
MILES
Changhua
ping
Tainan
Kaohsiung (Takao)
PEARL HARBOUR 1,300m.
Hualien Chiang
Tungmen
MANILA
$80 m.
THE CHINA MAIL, MONDAY, JULY 24, 1950.
United States faced with huge spending to deal with crisis
Washington, July 22. Well-informed Washington quartors predicted today that United States. military expenditure might reach about $40,000,000,000 during the financial year which started this month. The United States Government is already committed to spend about $30,-
000,000,000 on defence in that period.
with En
This Includes normal de- On that day the President will fence budget expenditure of send to Congress the mid-year $13,545,000,000, supplementary economic report of his Counell military expenditure of $10, of Economic Advisere 000,000,000 demanded by Pre-economie message of his own.
These are expected to give not sident Turman last week as only official views, on the state a result of the Korean crisis, of the national economy but on military aid to North Atlantic the control steps necessary to and other powers requiring safeguard it frorn inflation. $1,222,500,000,
expansion of Taitung this forlegn military aid pro-
Hengchun
President Truman's decision to use the Seventh United States Flect to prevent the In- verin of Formosa by Chinese Communist forces focused attention on the predicament of this 240 milles long, 85 miles wide island with mountain ranges as lofty as any in the Swiss Alps. As this special map indicates, a sinborne Invasion mounted from rochow, where large con- centrations of small craft have been reported, is perfectly feasible.
From
war Formosa was a Japanese possesalon, and to the end of the second world
returned China, nearly half a million Japanese were deport. In 1945, whin the island was
mainland, arrived ed. Generalissimo Chiang Kai-shek, with a million refugees from the Formosa and established his headquarters at Talpen lol December, the island's population is now estimated at right million,
1996
Ia
The Generalissimo, Whose Nationalist Government is still recognised by America, has been called upon by President Truman to crase all sea and air operations against the main. land. But an the British Government hits formally recognired the Chinese Communist Gov. ernment, a difficult diplomatic cituation will be created if the Chinese Communists start their threatened invasion of
Formora.
STATE DEPARTMENT FACED WITH POSER IN QUEMOY ATTACK
Washington, July 22.
State and Defence Department officials were reported to be giving prompt consideration today to the questions raised by the reported Chinese Communist shelling of the Nationalist island of Quemoy. First indications were that officials do not regard American requests to the Chinese Nationalists to withhold military moves against the Com- munists as preventing purely defensive operations.
There was no indication that the American Soventh Fleet, which President Harry Truman has assigned to protect Taiwan, would have any res- ponsibility for the protection of Quemay.
PLENTY
Quick action
Both House and Senate leaders gramme in view of the inter-
were certain of quick final pas- nationul crisis unofficially sage this week of two measures estimated to require about for building up the strength of
$5,000,000,000, and proposals | the fighting forces,
ob-
to lend money to private In- One of these allows the Pre- dustry up to $22,000,000,000sident to increase all enlistments to enable them to fulfil arms (by one year and has already sped' orders, This amounts to $31,- through the Senate without
Jection. The President now has 707,500,000,
authority to call and hold offers Administration spokesmen have in both regular and reserve explained that the $10,000,000,- forces. 000 for Immediate military GX- penditure is only a beginning to deal with the Korean war.
Cords
Cabinet to decide on British role
London, July 22.
The Cabinet, at its meet- ing next Tuesday, is expect. ed to make two vital decisions on Britain's role in the Far East fighting.
The firat will be whether
to change the length of ser- vice of Britich conscripta,
who now serve 18 months.
The second will b: whe ther to send a token British ground force to Kores.
Both points are likely to be covered in the draft plan to Increase British ald to the United States effort in Korea, on which the Defance, Sup. ply and Finance chlafe aro working overtime this week. and.-Reutor.
Present mobilisation plans In- dicate that there will be at least 2,000,000 men in uniform by the Industrial lenders are prepared end of the year, and that more for industry to be placed general will be called up soon after that.
When the Korean ly on a wartime footing.
war broke Mr. Paul
G. Hoffman, Marshall out, fewer than 1,500,000 were in Administrator, has Plan
the been Army, Navy. Marine mentioned as
the as a possible head of and Air Force, Since then, Issued calls "an ofer
for of Defence Mobilisa-Services have and {tion". which some observers con- Reserve
National Guard units needed to bolster the hard- sider necessary.
The importance of the Marshall pressed Yank forces in the Far Plan itself is expected to decline East. as American planners concentrate
more on European military rear-that there would be no let-up, in mament and less on economic future drafting until the Armed
Forces reach their legal limit of St. Johns, Newfoundland, 2,005,000 men, And botli House and the Senate
are al-
recovery.
Question for Truman
Increased United States de- mands for raw materials from non-dollar areas may, quickly solve the dollar shortage pro- bleme In those areas.
doing.
Defence oficials made it clear
the
REPORT OF SUBS IN ATLANTIC
July 22. ready considering proposals to reported sighting an uniden- The skipper of a trawler has abolish even this manpower ceiling-Reuter and United Press. tified submarine off New- foundland's Grand Banks ac- SUNDERLANDS IN cording to the "Sunday
KOREA WAR
London, July 22. A squadron of Royal Air Force Sunderland flying boats is now
First move to initiate sacrifices helping
countries to match those
Herald" here.
of the United States is expected forces there. These he said, were were
in effect a
The United States is expected
The skipper, from the type of to press the Western European
construction, said it was Russian. His report followed stories from countries for substantial increases
other parts of the Atlantic and in their own defence budgets to operating with the British naval Pacific coasts enable them to increase their own forces in the Korean campaign, submarines
that unidentißed had been seen off- armed forces and equip
them Mr.
Arthur Henderson, Air shore. from
their own factories. But it is not expected that the Western hampton today.
Minister, revealed in Wolver. Rear Admiral FL. Houghton, Vice-Chief of the Canadian Naval European countries will be able Addressing ገ branch of the Staff, said that East const naval to double their military expendi Royal Air Force Volunteer Re- forces were investigating two re- tures as the United States is serve, he said the Royal Airports from fishermen that they had
Force was playing its part Insighted unidentified submarines.
General these
MacArthur's Admiral Houghton said there by
no reports
from other to be made by the American reaction under the authority
a United Nations police sources. He said: "If people can of see flying saucers, they can see presentative to the meeting of
the Security Council.
submarines." the Council of Deputies of the The Minister announced thint The reports came from near New North Atlantic powers in London In future the Reserve Command Brunswick and from quite a way! this week.
of the Royal Air Force was to be out in the Atlantic, off Newfound- The President faces the ques do about an attack on Quemoy, tion so often debated in the early as the Home Command, land,
Reuter. the State Department would days
ays of World War II: whether say only that the President's it is
is possible to divert
a sub-
Washington, July 22. stantia
proportion of the nation's
The State Department and the resources to wartime Indian Embassy dented published Admiral Houghton added: "They No guidance
production without firmly taking reports that the Indian Prime could be Russian, it they are sub- Lover
control or
whole Minister Mr. Nehru, had sent a marines. They are not American A statement of the American
economy as
ns had been done attitude, is expected to be sent Authorities would offer
by new message on the Korean war or British submarines. But it is Britain during the last warto the Secretary of State Mr. our job to and our what they are." to the Chinese Nationalist Goy-guidance
such questions
The Government has ordered Dean Acheson.-United Press, ernment in
few as whether a Nationalist" sea-air
-Reuter and United Press. Taiwan in
attuck on the Red concentrations 12 troopships to be taken out of
the
Pacific Depart-reported as being bullt up for a
coast "mothball" fleet drive 011
on Quemoy
be and turned over to the milltary would classed as defensive action.
servlets, The attitude being
at least developed The ships can carry here with respect to
men-two full Quemoy 85,000
army On June 27, in a statement an- would not necessarily apply to divisions. nouncing American forces had all other Nationalist-held Islands been ordered to support South other than Taiwan,
That island, though Nation- alist-beld, lics just off the mainland and is far over on
Communist the
side of the line of the Seventh Fleet
OF FOOD patrol.
IN-U.S.
Washington, July 22. The Government told Americans today that there was plently of food in the Country and that the Korean crisis would not even notice- ably affect supplies.
days.
Meanwhile, the State ment said no official report the Quemay incident had been recatved from Natiqnalist head- quarters at. Taipeh,
statement speaks for itself,
no
the
In addition, 20 "Victory ships" In a special food report, the Korea against Communist attack,
fast, wartime prefabricated cargo- Bureau of Agricultural Economies President Truman also
For instance smoll islands ships-are to be withdrawn from ordered would be essential to the defence the seven feets laid up in dust said also that food prices were un- the Seventh Fleet to prevent any of Taiwan itself evidently come covers in the Pacifle, Gulf of likely to rise this year by more attack on Taiwan. He called on than three or four per cent above the Chinese Nationalist
within the protection being given Mexico and Atlantic coasts. An- govern to Taiwan by the Seventh Fleet. other 2,220 cargo ships remain. the July level, and the year's re-
ment to cease all air and sea-Associated Press. tail average should be about, the operations against the mainland. same as that of 1949,
Evasive reply
About two weeks later, the Chinese asked the United States for clarification on the Prest- dent's stand.
MENZIES OFF TO AMERICA
Blueprint ready this wook
President Truman hope to have ready for Congress by next Tuesday a blueprint of his $10,000,000,000 programma to help fight the Korean war and guard againet Communist aggression elsewhere.
The Bureau tried in its report to drive home what President Tru- man and the Secretary of Agricul- ture have been saying to the American public-tlust price rises and hoarding were uncalled for.
London, July 22. The Bureau of Labour Statisties
Prime Minister Robert Menzies Did it mean, for example, that of Australia left for the United sald
that between May 15 and reconnaissance flights to observe States today after June 15 food costs leaped 2.1 per the movement of Chinese
10 days visit cent, and since the fighting started munist
Com- here. He expressed the conviction
It will be in the form of a de- forces should not be some prices have shot higher.
that_Anglo-Americantles are un- tulled request for the huge up. modo?
breakable.
propriation designed to carry out Chinese note, officials "Sometimes we are rude to partial mobilisation of the na-
yet each other, but we always like lion's milltary strength. answer each other," he said this after- On Wednesday the nation may noon before boarding a train for set the first official word on the In response to Inquiries as to Southampton, whence he will sail extent of the new taxes
It sold the present strong de-
This mond resulted largely from the made clear today, has not record level of employment and been answered but the high level of personal income. will be sent shortly, A larger part of personal Income
fa being spent on food than be- fore the war-Reuter.
Browns!
Thickens!
Seasons!
an
which
what the United States thinks for New York on the Queen will be asked to finance the pro- the Chineas Nationalists should Mary-Associated Press.
gramme.
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