1951-06-08 — Page 1

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CHINA

No. 34914

"Corrupt Band Of Crooks" Allegation

By US Senator

Washington-Júne 7.

Democratic Senator Brien McMahon de- manded an investigation on Thursday of the "cor- rupt band of crooks" which, he said, used United States aid to Nationalist China to enrich them- selves and influence American foreign policy.

Senator McMahon's charge made before the Senate committee investigating General MacArthur's dismissal, climaxed the fight of Secretary of State Dean Acheson and Administration Senators to establish that Chins fell to the Reds not because of any China policy failures by the United States but because of mistakes by Chiang Kai- shek's government.

Mr Acheson testifted that $200,000,000 in Aarerican gold was "transferred physically" 30 China under a $500,000,000 nid programme in 1942.

Chinese Nationalist banknoles, which were backed by $200,000,- 000 in United States gold trans- ferred to China under the 1942 Assisince programine,

Senatur McMahon declared Mr Acheson tuld Senator the "inside clique

around McMahon that of the 1942 credit Chlong made huge profits from $200,000,000 in goki was "trans- this transaction, He demanded ferred

to China, a "thorough inv

investigation of this wired physically"

MoMahon Senator

ques- corrupt transaction" to deter-loned him

ibout the frans- mine whether this money has action, the Secretary sald it come back into this counter for

came within the purview of the the рагроз of influencing Traury Department. He re- public oplaton."

the ferred

Senator lle

to memorandum written 10 the

"this China.

D

charged American tax-t payers had been robbed" binte President Roosevelt by the

corrupt gang of crooks" in t

former Treasury Secretary, Mr Henry Morgenthau, Jr., in 1943. Mr

McMahon read into the The memo, which has already record u speech made in the

been published in the State Senate on July

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Missing British Diplomats Said To Be Safe In Paris Reservoir

Winston Churchill Tables

Motion Of Censure

London, June 7,

Mr Winston Churchill, leader of the Conserva- Live Opposition in the British House of Commons, tabled a motion of censure tonight on Major James Milner, the Deputy Speaker (Chairman).

ile protested against Major Milner's refusal this week to allow Conservatives to discuss individually - the new taxation measures, proposed "In the Govern ment's budget.

Major Milner, who is presiding over the Com- mittee Stage of the Finance Bll to make the budget proposals law, has ruled several Conservative amend- ments out of order, and refused to allow the points to be debated.-Reuter.

"Friendly Talk" On Persian Oil Dispute

Teheran, June 7.

25, 1045, by Department's China

The General Manager of the Anglo-Iranian Oil Senator Alexander Wiley, Paper, stated that American Company, Mr A.E.C. Drake, hold what an authorised ranking Republican member of credit had not helped to con- company source described as "one hour's very friend- the Senate Foreign Relations trat Chinese inflation and fur-ly conversation" today, with Amir Alai, the newly- member of ther United States credit for appointed Persian Government supreme representa-

Committee and

the current Investigating group, urging the USSR to enter the Far Eastern fighting in order to force a quick surrender of Japan "and Allied Ilves."

save

HOT DISPUTE

L

China would be "undesirable".

"BUNCH OF CROOKS" Senulor McMahon asked how much of

the, gold shipment "lined the private pockets of speculators, grafters and cor- ruptionists" in Chiang's govern- ment, Mr Acheson said his Department had no facilities to conduct an Investigation of the matter.

The committee got into a hot dispute over proposal by Senator MeManon to read into the record a report made to the Foreign Relations Committee In 1949 by Major-General David Barr, who headed the post-war Senator McMahon contended United States military mission that the "ellque" in Chiang's Chine. Senator Henry Cabot, regime took Chinese dollars, Lodge (Republican) protested then selling of the rate of one that

revealing what went on. at million to an American dollar, a closed session of the Foreign and bought banknotes backed by Relations Committee was "quite United States gold. Then when on par with revealing private the notes came due, "this bunch conversations in the White of erouks cashed in the Chinese House or anywhere else." bonds, took the dollars in gold

Making his

2

"inside erge against and then proceeded to invest around it in the United States for their Chiang, Senator-McMahon said own private profit."United

the

I made huge profits by buying 'Press.

COMMENT OF THE DAY

THE

tive in Khuzistan.

Mr Drake flew for the meeting from Khorram Shahr, near Abadan, the Persian Gulf port, to Khuzistan's capital of Ahwaz.

The company's legal adviser letter to the Prime Minister, Dr en Khuzistan, Manushehr Bo- Mohammed Mossadeg, that the meet-Bond did not have full powers zorghmehr, attended the ing, but the source said that his presence was of no special

since he significance,

is the normal interpreter on such oc-

casions.

TELEGRAMS

RECEIVED

BY THEIR PARENTS

London, June 7,

The parents of the two missing British Foreign Office offi- cials received telegrams today indicating that their sons were safe and in Paris, the Foreign Office stated tonight.

The spokesman pointed out that the authenticity of the telegrams had not yet been established.

An international search has been going on for the two offi- cials Donald Durat MacLean, 38, and Guy Francis de Moncy Burgess, 40.

They have been missing from their homes since May 25. The spokesman said today that the messages received probably meant that the two men were in Paris and in good health.

Baffled British diplomats expressed alarm at

the mysterious disappearance and British and 51 Dead In French agents were busily seeking clues' on the two men, who vanished from their jobs here 13 days ago.

The French Ministry of the Interior in Paris said tonight that it had found no trace yet of the two Britons.

"We are looking for them everywhere but so far we have no clues as to whether they are or are not in Paris,” it said.

The French police were not asked to help in the search until two days ago, although MacLean and Burgess were known to have arrived in Paris 10 days ago.

wiroutof London.

Д

both officials were suspend fashionable Kensington section Comunised for being absent. The Parliamentary

of leave." The Foreign Office said

"Her Ladyship is vastly dis- sion, supervising the art management, to whom the Pre- they disappeared, from their tressed and has gone to bed," mier forwarded the letter, re-home on May 25 and went to sald

young woman who jected it and Hawapi was ex-France "a few days ago."

answered the door to callera. pected to resign later today.

"Her doctor has ordered her to British officiale pri rest."Reuter, United Press and vately expressed the view that Asscelated Press. Anglo-American

relations might suffer through the incl

Some

Earlier today two members of Persia's Board of Manage- ment, assigned to take over The Governor has granted his the company's Installations in two colleagues 200 million rials the south under Persia's

a-credit for immediate expenses to lonalisation of oil law, left the take over the allfields, Including dent. capital.

payment of Persian labour there. the Parliamentary Oil Commis

Three of the 11 members of sion are due to leave this week end for the south to join the two members of the Board of Management.

The third expert, Momoud Hesapl, remained behind and was reported to have effered his resignation. He stated in

Anglo-American Harmony

serious

HE disclosure that all

differences between Britain and the United States bearing on Far East policies, affecting the proposed peace settlement with Japan, have been dis- solved is more than ordinarily grati fying. So much has been heard of supposedly sharp friction between the two chief supporters of Western civilisation "since the MacArthur episode thrust its way into the fore- front that an atmosphere of crisis appeared to threaten. Now, happily, this has been effectively dispersed. The term 'crisis' is not excessive for such open disagreements openly arrived at as have marked British and American policy over Communist China, Formosa and the conduct of the Korean war, and of course, the differences that did exist were much greater between the extremes of anti-American feeling in the British Isles and of anti-British feeling in the United States. Neither of these groups will, presumably, derivo satisfaction from the speed of adjust- ment, of official views on the Japanese peace treaty possible to Mr John Foster Dulles and Mr Kenneth Younger, but objective observers will hail the result

a distinct achievement. Preciso details are still lacking but it is clear that the way has been opened for putting the final touches on the peace treaty, and that the voxed question of Chinese participation has been side- tracked. Meanwhile, there is a touch of irony in the timing of the outburst from Peking attacking the Anglo-American proposals. The second phase of the Chinese spring offensive in Korea hus ended in coatly defent. Once again it has been demonstrated that the boast of Peking that the United Nations forces would be driven into the sea was and is, idle. Unless there is a radically different disposition of all the factora "In military potential in the Korean theatro, the Chinese are bucking their heads against a brick wall. It is

under those conditions that they demand, as

voice in the a right, a making of a treaty with Japan. More- over, they demand the right to lay down the conditions of the treatý in their echo of the "five principles" previously set forth by their Soviet mentors. Were it not for the grim nature of hostilities in Korea, the whole Peking fanfaronade would belong in the realm of the opera bouffe. The Chinesе Communista, like their Russian tutors, have always grossly exaggerated the part they played against the Japanese. Their field orders were clearly to exert their major effort toward consolidating their bases for civil war and to clash with the Japanese only incidentally. Like the Russians, they cashed in on what others did and suffered, Even more ironic is the Peking insistence that Japan, or any other nation, be a "peace-loving, democratic and in- dependent state." Red China's love of peace is getting a good demonstration on the Korean front, as it has already had in the invasion of Tibet and the pressure Da Indo-China. Peking's addiction to "democracy" was well ex- pressed by Mao Tse-tung when he called his Government a "democratic dictatorship." As for independence, the regime that has made China nothing better than colony of

#

Soviet imperialism must feel obliged to talk with its tongue in its cheek. It is precisely because Britain, and the' United States do want a treaty that will help to establish pence, democracy and independence for Japan that the ansistance of the Peking puppets has lost

any meaning in London. It is precisely because both recognise the value of concluding a peace treaty at the earliest possible moment, and the futility of entering into an endless pro- cession of wrangles and vetoes that the. Soviet proposals, choired in Péking's antiphony, have been so firmly rejected.

REPLY DRAFTED

*

Relations between Britain and the United States already since the war by the defections have been subjected to strains

and Dr Alan Nunn May and by of atom sples Dr Klaus Fuchs British trained Tajos Janossysc decamping to Budapest from Irelan to help Communist science.

These steps have been taken

AL

It was rumoured today that in the search for the missing the Persian Goverment's reply | men: to the note of the British For-

British diplomatic mis Mr Herbert sons in Europe including elgn Secretary, Morrison, of May 19 has already Moscow-were alerted to be on

the lookout. been drafted,

Friendly governments, includ- It was believed that the replying France, were asked to lend would be handed to the British police help in the hunt. Ambassador in Teheran,· Sir; All British Decret service Francis Shepherd, tomorrow or agents here and in Europe were

job.

}

Train

Smash

Rio de Janeiro, June-1.

crowing.

was

an-

Shing Mun

Overflows

Water Supply Not To Be Increased Yet

All reservoirs

on the island and mainland (with the exception of the Kowloon byewash dam) are over- flowing it was officially re vealed this morning.

But, it was added, the Water Authority is not contemplating extending the hours of domes tle water supply.

At the present time the water supply is on for 15 hours a day, from 8 am. to 9 pm, and There has been sonte startling ratafall in the Shing Mun and Tytam Tuk arcas post two days.

during the

At Shing Mun more than 10 inches of rain have been record ed in 48 hours.

Yesterday the Jubilee Dam received 5.82 inches of rain, while. at

Tytam Tuk the record ing was 7.74 inches.

On Wednesday 3.21 incher were registered at Shing Mun and 1.05 inches at Tytam,

On

Tuesday the respective rainfall was 1.02 and 1.65 inches.

A week ago Jubilee Dam'a

of the Water

Explosion Aboard HMS Bermuda

Simonstown, South Africa,

June 7.

At least 51 persons were kill-storage was sull 12 feet below ed on Thursday when an elee- maximum and It was then be; trio commuter train collided lieved it would be some time. with a fuel truck at a grade before it overflowed.

However the remarkable rain- fall this week has sent the water" Another 38 persons were re- ported injured seriously in the through the catchments, and to

into surging

the reservoir crash and the resulting fire at the delight the Nova Iguassu station, 25 Authority the dam is now over miles northwest of Rlo, nowing. nuled with workers enroute tu reservoirs have been overflow- The first couch of the train, Tytam Tuk and other island Rie da the early morning hours, ing for a week and it can now fuel truck exploded. The coach chay na walexsho was enveloped in flames, as the be claimed that the Colony's

maximum storage copaed sengers in the

camity toll were not able to escape.. bounced by the local chief of police who said 61 charred bodies have been recovered. It was feared that some of the severely burned may succumb. Scores of other escaped with minor injuries. Chicago, June 7. The polico sald some of the | the British. Francis Marling said here to burned bodies were day

found in Squadron, at this naval base he had talked with his standing position; others were today, it

was ofcially

her husband's disappearance is death enreely knowing Lean, In London, and she thinks dicating that they burned-10 daughter, Melinda Marling Mac-seated in the packed car, fnnounced.

The announcement said that

he suffered a year ago." a recurrence of the breakdown happened-United Press,

no serious damage was, caused, The explosion was due to the SECOND DISASTER

bursting of a condenser of a who is adver Marling,

Clarksville, Tennesse cooling plant which in turn was for manager

Pure Oll 7

June 7. probably due to excessive pres”. Company, said: "I do not belle

Two Louisville and Nashville | sure while under that, the an- there Is anything this trains crashed near here today nouncement said.-Reuter. speculation that Mr MacLean and the railway said that an. may have disappeared behind undetermined numbor of per- the iron curtain,

All Night Sitting and neither sons were killed. does my daughter."-Associated Press.

WIFE'S BELIEF

to

ACHESON'S COMMENT

The

A minor explosion killed one man in the Bermuda, dagship of South Atlantic

what no

at

London, June 7. trains crashed

The House of Commons set- Palmyro, about. 12 miles

tled down tonight to

an all Southwest of Clarksville and night sitting on the Finance Washington, June 7. about 40 miles northwest of Bit which legalises the 'Go- The Secretary of State, Mr Nashville. Deau Acheson, today agreed

The ticket agent said, "Some with a Senator that it would be are dead and some are hurt but a "berious matter if the two as early as this we cannot tell missing British Foreign Office

ce you how bad it will be." officials

proved to be Soviet Associated Press. sympathisers. He said the State Department had asked the

Saturday,

put on the

The London Daily Herald. Persian polition) sources also which has close relations with said that the. Persian Govern the government, said MI-5 ment might present a counter Britain's Wtro socret military | British Embassy here about the petition agaist

the company counter to The Hague Interuptional assisting. Court following the Court's a0- captance yesterday of the Bri- 15h Government's case against Persia.

arm—was | missing officials but the Embassy had no information other than press and radio reports.

espionage

Scotlanth and would not say a word about the case,

Foreign Offre spokes- man told reporters:

The

"There is no reason to be love that they have taken any official papers with them"

Senator Owen Brewster ques- tloned Mr Acheson about the British affair an the Secretary testified before the Senate Com- mittee. Mr Acheson said that ho "Imagined" that Donald Maclean; sa head of the Ameri Is con section, had knowledge of discussions" at the Paris meel- ing of the Big Four Foreign Ministers' deputier, United Press.

A Council of six legal ex- peris (three jurists and three Members of Parilament) was due to prepare Persia's reply to Mr MacLean, however, knews the Court as mon as the corn practically everything there plele text of the "Court's ar to know about Anglo-American

of coptance the British case relations in every

of phose world affairs. was received in Teheran.

The Feralan Government_to- Until a year ago, he was head Chancellery in the day refused to grant any fur- of the ther permits to foreign corres- British Embassy in Washington bondents wishing to visit the and all paper including the Anglo-Iranian oll installations Ambassador's messages, cleared

GOOD ADVISER

in Southern Persia. No rea- through him, son was given. Permits are needed by all foreigners wiste ing to leave Teheran for abroad or for any part of Persia Reuter.

Conscription

Mr Burgess is probably less fully informed **He was A student of the works of Lenin and Stalin", 'one official said, "that was well known in the Once But he used this Russians.

Forcedgo to confound the

GUARDS ALERTED

Bonn, June 7. German frontièr güzards have been alerted, and furnished de- scriptions of Donald MacLean and Guy Burgess, it was dis- closed

today by British off- cinis.

The

vernment's budget proposals announced last April.

Conservatives have kated

that they would submit the bill bo a detalled examination. Router.

FOR THE PRINCIPAL...

A SUAL MEANS TO SKŁAFER AUTPUT

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Emidicta

DICTATION

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The officials sald normal pre- A PRIORITY IN BUSINESS ECONOMY. cautions were being taken since | Clearly records and reproduces a full six the warning several days ago minutes dictation (000/1000.) words) at

negligible cost. before the general, public" learn- of the men were missing.

The frontier watch was con- centrated in the British Zone of our bast, and most but aquads in other Zones were effective replies to the Rusions also on the lookoutUnited Washington, June 7. have been based on advise given Press. A bill lowering the con- by Mr Burgess

Bill Passed

scription age from 10 to 181⁄2 Mr MacLean worked in the

Of Play Score

yours was passed by the House Foreign Omer sunf the day Test Match Close of Representatives" today and | before he diappeared, sent to President Truman for A tall, aristocratic- man, educated at. Cambridge, he has his signature.

bill extends the con da (Amaricen - wife, ing forther scription law until July 2, 1954, Afella Marling, só of Chieng", und requires all recruits to

21

Tho

At the end of the opening der's play to the flast Pert malidir being played at Trent hey have two sons.or

South......- Afrion – hald MAIN MIROLOWA le the son of the Bro

Anistond of the prap whith fin mariled in 1940)

i prohibits the calling up

thres

wickets.

- aro

Checlitera

Int Bir Donald MacLean, lender.cored 230 russ for the loss of of youths under 10 unth the of the Bellay Liberal Party and The not out bators conscription bearda bato ox- Minister of Education in igas?

NOLTWO (70) #His mother, Ladge MacLean, (19), the tem hausted their pools of eligible toro anyone today Report pad full scores appear men in the 19 to 25 Ben Broup, he was at “hez sat in the on Fame deg

Finger-up typs stop-start.repent controla for speaker and typlat. Quick dictation alowed as required, Corrections simply made and final erasing of records a 'master of seconde. Supplied on wheel stand with hand and desk microphones and featherweight undbetes. sive headphONGS.

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