1951-07-05 — Page 2

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THE

Communist Gains In Finland

Helsinki, July 4. Finland's Communists

--

gained ground in the two- tay general election, but -the present anti--Leftist Government coalition, ap- peared to have enourh strength to stay in power, nnafilein) returns showed tódax

The Copimunists won possibly 44 of the 200 Parliamentary seats con- tested, compared with 38 in 1948. They were all belg17 post-war peak of 49 seok In: 1045, -

The Government coat." Uan of Agrarians, Conser- vative and the Swedish- speaking People's Party lost at Icast seven seats,-~-~~- United Press,

CHINA MAIL, THURSDAY, JULY 5, 1951.

WEST'S REARMAMENT EFFORT

Warnings Against.

Any Relaxation

London, July 4.

Peace in Korea would be more likely to speed up than rotard formation of General Elsenhower's Atlantic Army, European officials said today. However, they' cast 'anxious eyes toward the United States and Britain for signs that peace might result in a lag in production in the two chief producing notiqus...

Officials fear that rising prices and taxes might lead public opinion to force the United States and British Governments--both facing election campaigns in the near future to cut down, arms manufacture

On the European Continent, official reaction to

HUNGARIAN possible peace in Korea was: "It will not affect our

DEMAND

REFUSED.

Budapest, July 4,

The United States tonight re- fused a Hungərlan demand that three Americon diplomats in Budapest should be recalled.

The demand for the diplomats' recall was made in a Hungarian note on Monday because of their "unquestionable part in the "conspiracy and espionage acti villes" of

Archbishop Josef Groess and eight other defen- dants whose trial ended here last week.

A spokesman of the United States Legation here sold 10- night

"The premiso · that the Legation staff members were allegedly implicated in the Groesz case is not accepted by the Department of Stale and they will not be recalled.

Three Legation members were mentioned during last week's

trial.

The note, though it did not Ust their names, obviously ro- ferred to the Third Secretary, Mr Albert Sherea, nr.. the Cultural and Press Attache, Miss Ruth Tryon, and. her Secretary, Miss Mary Eleh.

Miss Eich left last week on horse leave and Legation spokesman said on Monday that she was unlikely to return Budapest-Reuter,

to

Canadian Aid

For Korea

Ottawa, July 4,

has alreatty Cannday which provided $7.250,000 for Korean réhabilitation, may pour several million dollars more into the

If the programme

cease-fire negotiatious - are successful, ว Government-source, sald-

The United Nations mapped

today.

out a $250,000,000 programme of relief to the war-torn country and Canada so far has been one of the largest

contributors.

Canada has turned the cash over 10 the United Nations Korea Reconstruction Agency. Until now, the Agency's main work--similar to the United Nations Relie!

and Rehabilita- tion Administration,

operated mainly in Europe has been Federal held up by the w trade authorities suld Canada would probably beconte a major of supply for Korean reliat needs as it had under

source

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“THE RED SHOES” “BRIGHTON ROCK"

plans to build a “strong NATO army.""

In France and Italy, two of the countries expected to pro- vide the most manpower for General Eisenhower's force and bol with the national election already past,reaction was even stronger: "Good. Now perhaps we will be able to'geI mort meera -equipment. from the United States.” **

A French Foreign Office ofcial sald France would not dally in building defences be cause peace in Korea would merely mean the Chinese Com munists would be able to give further help to the Vietminh Communists lighting the French in Indo-China.

ask the Prime Minister, Mr Clement. Attice, about Govern- ment rearmament plans in the event of Korean peace-United Presa,

PROGRAMME LAGGING

Washington, July 4, The United States Defence Mobiliser, Mr. Charles E. WII- son, said today that the United was running some 20 per cent. States rearmament programme behind schedule and must be stepped up immediately whether not the fighting ends now in Korea.

In his second quarterly

President Truman since. port he took over the lop mobilisa- A French Defence Ministry tion job in December, Mr Wil2 - official said American arms all son warned America and the to Indo-China lagged because entire

entire free world that it will Korean commitments and be imperilled if Congress takes "It is

П hoped we will now get the Korean peace talks ng more and more modern equip signal to kill controls and let ment from the United States down on arms spending

of

ro-

п

for both our forces in Indo-Ching Korea le but an episode in the and at home."

year,

third

Truman immediately

The Victorian era was the theme of this year's Hampstead Arts Ball. 'Mrs Diana Wieliczko, wife of an artist, wears a flower-pot hat with an aspidistra growing out of it. Artist Sidney Arrobus came dressed as a Victorian swimmer. They carried off both first prizes for their costumes-London Express Service.

WINSTON'S CLASH

WITH PREMIER

London, July 4.

Possible

Sequel To Peace

REACTION IN UK AND AMERICA

(Our Own Correspondent) res London, July 4. The end of the lighting

in Koren, if it should como in the near future, may find a marked difference in British and American in- ternnt reactions.

It is believed, however, that a cominoti bond will be the imple- mentation. of the arms programme and that this will be a governing factor in the economies of both countries,

Supporting this view this morning, tho Financial Times polnis out that ending of tho Korca war is unlikely to maku much difference in British polley. ·

Qutbreak of war in Korea had resulted in. few, superficial changes in Brilaiu. Controla already plentiful, there

were

Was already trouble in Malaya and taxation was higli.

But in America the position

entirely

different. Firstly,

War

President..

ident Truman

declared

state of emergency. From this stenumett system at price con-

cls. Then Cangteaɔ was asked to step up the rate of taxation, and Bnally there was a change In the Government's monetary policy accompanion by restric hions on Items such as house or car purchase 50 as to really affect

Individuals.

Britain had come to tolerate the state of affairs existing here before the outbreak of hostil!- les in Korea. But In America there has been an appreciable body

of opinion arguing that the of inflation has been

1s little Aghting ceases, there

rated. And if the doubt that the strength of this party would be considerably in creased. This would make

long-range struggle, with Com- An Italian Government ofll-raunism, he said, and cial said: "The United States

world war could explode furnished Italy witta 30 ship- momentarily anywhere along ments of arms under the mill- the broad perimoter of the tary aid programme during 1950 Soviet empire. and carly this

Because M: of pressure in Korca, only two relayed the 25,000-word report shipinents have come

A quarrel between Mr Winston Churchill, February. I peace comes to endorsement and culling on the leader of the Conservative Party, and the Prime Korca, we feel

United low-makers the

to reconsider States will #gain

speed up crippling amendments to

the Minister, Mr Clement Attlee, started an uproar in shipments so that we can put Defence Production Act and give the House of Commons today.' in the field the 11 divisions we Mr Wilson the strong promised General Elenhower,"

price, rent and credit controls he wants. Mr Truman said: "Otherwise consumers in this

danger since to Congress, adding a letter of

GEIMAN WARNING

wago,

sold renewed Inflation, and our

Asked if this was the British

The trouble arose over a public speech by the Defence Minister, Mr Emanuel Shinwell, in which he suggested that at the slightest sign the Govern- ment would be only toa willing to curtail rearma» ment activities.

Labour Merabers rose to their Mr Wilson hammered on the Government's policy, the Prime feet and shouted in protest.. same theme in his report, and Minister, said that the Govern Mr Attlee, hot with anger in the news

conference acment had consistently sought denied that he had hung out any He said that to companying the release of the the co-operation of other coun- insinuations.

counter the bogus Communist report, he lashed out againai tries in arms reduction. important groups whom he. When these countries, showed peace campaign it was usefu! genuine response, Britain to state that the country was would be very willing to recon increasing lis defences for the skler the size of her defence purpose of preserving peace, forced

Au Independent Meraher of

In Norway, Denmarks and the country may be plundered by Benelux najlons, uffelals NATO was established to deal whole mobilisation programme feed Western Europe against threatened with disaster." Communist aggression and there: was a reason to let up because of peace in a "fr-off war".

in Germany, where Choa- sold ou Sunday

"Power 13

only Janguage which the

cellor Konrad Aaccused of trying to kill controls, i

officials warned the West not

understand," high Government He made it clear that he to allow peace in Korea to lull referred to the meat and live it to sleep. They said: The stock interests. lure to build up strong de- fences against the East may make Germany the Kremlin's -next-objective."

However, Britain remained the key to the Western defence effort in Europe and signs pointed to tough sledding for

the Government.

ing would

MANPOWER POSITION

dificult for ́ President Truman to continue the power of con- trols and would mean an oven greater Congressional fight for hia texes.

EGYPTIAN REPLY ON SUEZ

Calto, Jukr 4. The Egyptian Foreign Minister, Salah El Din Pasha, sald here today that he was satisfied that

Halfe-bound oil pakers, was sound..

In the meantime we bave Parliament, Me Raymond Block- no intention of relaxing our burn, who originally raised the efforts to strengthep pur de- question of the Shiawell state- In the section of the report fences," Mr Attlee said.

ment, said that he was dissatis- dealing with manpower. Mr Mr Churchill asked if it was fed with Mr-Atlee's reply and Wilson said there was no evid- necessary for Mr Shinwell to would raise the maltor again Erypt's Suez Canal blockade of ence of a general shortage of make such a statement at this Reuter manpower although there had momont. He demanded to know been some local shortages. Ho

it the Prime Minister associat- sald about 1,500,000 new workers ed himself with the statement. will have to be recruited from

The cheers and counter- the ranks of women, retired cheers from Labour and Con- persons, the handicapped and servatives began when Mr minority groups which are not Attice cald he thought that Me being used to the full.

Shinwall's remark Other highlights of the report reasonable and sensible thing to a perfecily

contracts.

say..

WANT FEACE

Shah Enters Britain and the United States,

Hospital For

Operation

The

Teheran, July 4

He was commenting on pro- tests by 10 powers, including against the Egyptian restrictions on Halta-bound shipping during the war with Israel.

Egypt stil considers hersek, at war with Israel

The Foreign Minister had dis- cussed the protests with Dr Wabit Ranfat” Bay, legal adviser to the Foreign Ministry, They also discussed naports that Britain 'the

In the

Shah of Persia today intends enisins atter ·

bass.

Jecent

It was understood the Chan

the Exchequer, cellor of

Mr the Hugh Gaitskell, would tell House of Commons on Thurs- day that the rearmament pro- gramme was only beginning. were Mr Gaitskell's

(1) About $10,000,000,000 of speech, accord- to Informed

supplies, sources, military

equipment largely attempt to and facilities have been dell- stifte at the outset the move vered since the outbreak of the It was perfectly relevant to!

Labour Members among

of Korean war and American in- suggest that Britain's whale Parliament to suggest slowing dustry has a backlog of $32,000,- end was peace and that the na- gave a special audience to his Seculty

000,000 in military

tion did not want to spend all Cabinet Ministers" and loading aitain had no right to

Minister Tha

declared that down rearmament.

(2) Construction

occupy ոու pro-its efforts in building up afma-Parlamentarians on the lawns GRAVE TEMPTATION duction of consumer goods such ments.

the hespling he entered berian territory.am

Egyp: or use any part of Egyp Mr

asked

millary Churchill

what to Minister, Mras automobiles and refrigerators, The Defence

to undergo an operation.

He was commenting on reports The -31-year-old 'Shah looked has been cut to one-third below precautions were taken to make Emanuel Shinwell, and the pre-Korea levels, and further sure that the lightest sign"

on the deckion of the tense

and worried as The stepped

his Ralig-Royce and Commonwealth Defenes Minis- Stokea, both indicated duringi me

Conference in London to ters walked forthcoming, would not be a walk the past few days that the neca (3) Military production is means of deceiving the Allies.

Ministers the urms programme to push

The Prime Minister: did not might not be so urgent faght concentrating now on atomic

shook hands with them all major base for

defence.. igg opded in Korea.

weapons, airerats, tanks, elec- think there was any danger of and chatfect for a while. Thon At the end of this week Salah tronies and new weapons such that. It was easy to make the Shak hurled into the An official British source sald: "The Government will as guided missiles,

dimculties about a phrase. "We hospital where he was met by Din Parka is expected to hand the British Ambassador hare want strength but we also want Dr. Frank Glerin, chief surgeon Egypt's reply to the British pro he gravely templed, particular- AIRCRAFT QUTPUT

of peace," Mr Attlee added.

a New York Hospital, who ly in view of the impending election, to ease of the rearma- are two-thirds higher think one Shinwell's statement was likely appendicitie

Mr Churchill said that Mr will perform the operation for ment 'drive, The situation, with rising prices and the next 12 months. However and

the develop

national As wn broke today, the

dawn is much more they will still wage demands,

be behind pre-defences

Dean Mullahs called on the faithful serious than the Government is sently planned schedules, Em-

LABOUR PROTEST from the minarets of charan prepared to admit."

"Does Loft Wing Socialists, headed ployment in the aircraft in-

oes the Prime Minister not to pray for the "life and health by the former Labour Minister, to 300,000 since the outbreak of think he would better employ of the Shah of Persia,

Similar calls were being made get sourdemen Mr Angurin Bevan,

his power and authority by have at the Korean WDR, and more ready demanded a cut. In the workers, are needed.

secking to teach some discioling in hundreds of other towns and

Teheran, July 4, The airport Customs seized arms programme, Just

his principal colleagura villages throughout, the country. (5) Big bottlenecks of the lo for they plan to push their

Court carries here say it is on his arrival from Paris today are justead of slinging out insulting programme right now demand may be answered to caused by shortages, of skilled insinuations that the Conserva not yet known how long the a camera and films from morrow when Dr Ian Mikardo,

tives are not as devoted to peace | Shah" may have to spend in Raymond Mejas, o Fox Movie- one of the Left Wingers, E to (Continued on Page 3. Col. J.) as be 197" Mr Churchill asked, hospital-Reuters

tone cameraman --United gress,

Lord Privy Seol, Mr Richar major cuts should not be neces-referred to by Mr Shluwell, if out of over to the walusregird/ibo Suez Canal zone:15 2

(4) Aircraft deliveries now

Domis for

Router,

East

a revision of the

economic year ago and will be tripled in to wenlien the efforts to mustala; ni gboeruz cheeks-un, Klvo / Angla-Egyptian treaty of 1938.

how

dustry has risen from 185,000

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