1953-05-07 — Page 9

Page

THE CHINA MAIL, THURSDAY, MAY 7, 1953.

PROSPECTS FOR CONVERTIBILITY Ceylon's

Change Of Pace In Dash To Achieve The Goal

Peking Trade Pact With

East Germany

East

Berlin, May 6.

Clermany has elgued a trade agreement with China for 1951, the Bani Gertnan news agrbey ADN announced today. T provides for exchange of 54 per cent more goods than in 1952. ADN sald, but gave до figures.

an

: China will deliver oren, non-ferrous metals, alt, fats, rain and soya beans In exchange for East German machinery, optical and precision instruments, office machines, chemicals, including fertilisers, and Consumer goods, The

agreement was signed in Peking last Thursday.

After the Soviet Union, China is East Germany's largest customer. neoond -Reuter,

HONGKONG

SHARE MARKET

(From Our Correspondent)

Business done on the Stock Exchange is morning amounted 10 $175,745. Noon | und the morning's transactions;

But

Objective Expected To

Be Gained Before Too Long

The dash for convertibility has been postponed, declares the "Financial Times,"

Several times during 1952 the finger crooked on the trigger of the starting pistol appeared to be tightening. In the early summer of last year this was the reflex to a mood of despéfatTUR-in the circumstances then provalling any change seemed to be a change for the better.

Towards the end of the year the renewal of the resolve to set off alone, If need be, and rapidly in any case, had behind it the more rational justification of the intense and considered study given to "The Plan" before and during the Common- wealth Economic Conference.

It was no longer a gesture of ings to a common pool and taking; inflationary policies and accept desperation

realistic rálos of exchange, since the Hold out inconvertible pounds. haemorrhage had been stopped,

There may be very strong the balance of payments put into

There is no hoarier fallacy than credit and some success achieved arguments for not endangering that which argues that there will hardening the clomealle the sterling system and such never be a chance of closing the dollar yap through other than arrangements economy in the manner required valuable regional

discriminatory maans because

by a

12t und

Trade

India Turns To With Japan & Germany

Germany

New Delhi, May 6. India is negotiating with German Arms about the equipment and running of * new fron and steel plant in India.

Pro Mr K C. Reddy, duction Minister, fold the Counell of States (Upper House of Parliament) that negotiationsA fairly advanced stage.

An earlier Japanse offer for the same purpose had been found tinaceoptable,

were

he added.-Reuter.

The

ما

•

Colombo, May 6. Ceylon's postwar trade with Japan and Germany is increasing rapidly, officini figures released today, show.

Ceylon Imported 103,800,000 rupers of goods from Japan last year,, compared with only 6,300,000 rupees in 1917.

Ceylon sent Japan 10,400,000 worth dast year, rupers pared with 3,000,000 worth'In 1947.

*cort- runces

MESSAGERIES

Ontwer

M

MARITIMES

M

PASSENGERS/FREIGHT SERVICE

"LA MARSEILLAISE" "FELIX ROUSSEL“

Morewards

..

Igaves Marseilles'

17 Apr.

21 July Hongkong "LA MARSEILLAISE" 12.11 May FELIS ROUSSEL” .. 9 June

longkong 10-12 May ·

23 AVERAÍ

Hue Marsellies

· 18 Juns

11 July

For Yokohama Marills

Vi

Salzon Yokohama

via Marsellies to all Mediterranean & West Africa ports. via Djibouti to Modagascar.

Oniwarth "MONKAY"

Home Wards

FREIGHT SERVICE

Monakong

4-5 June Hongkong

For Jagan

For

31 Juna

July

t

T

Leaves ***Upnklek—19 Apr, Leaves ......Keelung-10 Jung |«Keelung-30 Juna "SILVER SANDAL" ..Keelung-20 July 28 July

**PEI-110" "MONDAY"

↑ Balgon, Marseilles, Algiers, Oran, Tangiers, Casablanca, Le Havre, Antwerp, Rotterdam & Dunkirk, CIE DES MEssageries MARITIMËS Exports from Japan to Ceylon were spread over A large and

P.O. Box 58, Hongkong pre- | Queen's Building (Gr. Floor). Tel. 20651 (8 lines). pared cereal foods, fresh fruits, spirits and textiles to toys and musical instruments.

varled neid ranging from Rubber

Markets

Jime

Number 1 rubber, per Io.

731-7

|

·August

July

Singapore, May 6. Prices of rubber futures to make a success of converti- as the European Payments Union dla

a rush move into converti-American technique and progress closed today as follows:- bility; but to. bepe that the the

will niways be in advance of that solvency

of the rest of the world. While monetary cohesion of the sterling area or therefore, we must necept the fact be that the rond to convertibility Western Earope ensured In the framework of a may be long, there is no reason payments

system permanently to doubt the achievement of the insulated by exchange and im- objective within the foreseeable port controls against the dollar | future. world, is to foster a great illusion.

of

ups he

bility.

Yet the dash b alf, and the pare

changed to

that of the glacier, inexorable, but decidedly

ane, EHJW

incidentally, propriate to the volume of frozen sterling which still clusters the International payment scene.

The change of pace is not due to any fundamental change of policy.

It can be explained In the light of two developments,

with

Cin

The debate on convertibility which has recently occupied us, and which is destined to do for some time to cosue, has been bedevilled by the use of two very different concepts of the word.

AMENDED

BANK LAW

DRAFTED

Zurich, May 0.

Following the rocent im-

Number a Rubber, June.. Number 4 Rubber, June

Numis 2 rubber, "Juno"

pot rubber, unboled

Blanket crepe

Nu 1 pale crepu

+

7274-7376 .... 00-85 United Press.

LONDON MARKET

Ceylon's trade with Germany In 1032 also showed an increase over previous years, but unlike the Japanese trade, it shows a favourable trade -balance for Ceylon.

Ceylon sent 82,300,000 rupeest weth of goods to Germany and received from

he 10,300,000

rupces' worth.

Ceylon's trade with the -60European Payments Union ex- cluding Germany. in 1952, 1KD showed * favourable balance with exports lolallkiıg 160,200,000 supers and imports 100,500,000 rupees.--Reuter,

London, May 8.

The rubber market was uncer- tain. Prices closed today follows:-

No. 1 rubber, to per lb...... June

July/September

October/December January/March

pence

211

United Press.

New York, May 0.

NEW YORK MARKET

સ

Cotton Prices

In New York

Now York, May 6. Prices of cotton futures closed

34.20

TWO DEVELOPMENTS

The Brst was the, growing.

TWO DEFINITIONS realisation that on isolated dashi f convertibility on the part of

To stimme is means teelitest j convertibility into dolinys irres- sterling would be fraught real danger; it would break up pective of commercial polies. To the European Payments Union; athers it can only be visualised might lead to a repelitims of the

context of a in the wider

general 1047 Rasco when every country loosening of restrictions on inter- tried to acquire sterling in order national trade as well as pay-ploncellon of a new coinage Prices of No. 1 staımlard rubber today as follows- Lo convert it into. dollars; R ments. There were indications

decree in Switzerland, the Gov | futures closed 35 points lowerpot SHADES BUYERS SELLENB SALES would tend to malte for con- that for a time the Arst and

traction and not the planned ex somewhat

ernment has placed

before to 10 points higher with sales of July. hal barren, not to say Parliament a draft low amend-64 contracts, 22 1470 pansion of trade if it caused fraudulent, concept of converti-

Bank ing the Swiss National other countries to put restrictions

billy hek away in

British Law. Dan

sterling oficirl imperts

l circles.

The main alm of the law is to countries in order to gain conver-

On that definition the dash for transform emergency lible pounds.

and even more convertibilty held no particular regulations into part of the Lerror', Taking account of the Swiss legal code and to give the facilities for converting all types National Bank wider, pawers to of non-resident, and even some influence the money it capital resident, sterling in various

black shades of

markets, such carly convertibility air

already exists. But the second definition has come to be accepted as may be gathered from the

imports and

HANKS

JK Back

INSURANCES

Union XD.

BHIPPING

Waterfal

DOCKS, ITC.

..

7105

760 750

14,50

X. Whart N. PL. Whart 6 620 Provident. 10.00

7.43

Shai Dock Wheelock..

LAND. ETC.

FLIK flut

JK Lind (DI

Shai Laid

UNILITIES

P. Tran

3000 at 11 2000 7.50

7.10 7.28 2909 7.10

1.38

21.70 21.00 500 21.70

30

Tram (Nj 10

C. 7.11

10 XD 2. Light (N) 645 XD Electric... 23.40 Telephone... 17.90 10.33

INDUSTRIALS

Cement

Rope ******

Textile Corp.

#

000 10

006.45

900 or 23.50

15

15.00 300 m 15.70

3.20 100

5.ts

10.50

Dairy XD 1819 18.60 200

W#laon

Lane

Crawford 2015 27

COTTONS.

Cwo ***

2.25

2

Lower Trend

Of Grains

4

The second,

convincing, deterrent to hugly action was the atmosphere which Mr Eden, Mr Butler and their officials encountered when they visited Washington in March.

market.

October December closed March

July

Number 3 contract nominally 5 points tower with no sales reported. currency

Besides controlling monotary circulation and facilitating pay ments, the Bank would hence- What they found was an ad-

forth be required to."carry out ministrative chaos, a vacuum of

serving the country's overall in- deference the possible views increase tourist travel allowances terests". of Congress, in which no hopes which Britain announced at the

effective of immediate

co-recent Paris meeting

May October

MAERSK LINE

FAST FORTNIGHTLY SERVICE TO:

NEW YORK, BOSTON, BALTIMORE & PHILADELPHIA vís SAN FRANCISCO, LOS ANGELES AND PANAMA.

m. v.

NEXT SAILINGS

M.Y.

"JEPPESEN MakrBK” „...

May

MR.Y. "LAURA MAERSPE"

01.GA MACRSK**

17 June I Jurie 17

ARRIVALS FROM U.S.A.

m.v.

LAURA MAERSH"

Nay

19

m.v. "KIRSTEN MAERSK“

May

16

in.. "OLGA MAERSK"

.Mpy 마

For Freight and Further Particulars please apply to:--

AGENTS:

JEBSEN & CO.

33.91-33.94

23.118

360-33.70

31.73 nominal

2347

31.31 bid

Unlled Freu

27, Connaught Road, C.

NEW ORLEANS MARKET

Spot

The market ruted steady on active positions. In the spot market, dealers reported a some- what improved factory demand. May July Shipment offerings were rela- October tively light and high prices. March Spot No. 1 ribbed smoked Jury

a pound.

December

May

polley making, a concern for und gestures to liberati, substantial a crodit and meny polley sheets were quoled at 261; cents | October

THE FUTURE

Furthermore, the draft pro-

on

Prices closed or follows- No. 1 standard May

Septe

September December

of the poses that the Bank be exempled operation by the United States O.E.E.C. Council. Convertibility from the obligation to redeem could be grounded,

of sterling must henceforth be banknotes in gold. Such co-operation is essential considered as inseparable from a It

the value whether the move to converti- corresponding casing of restric- the quires the Bank to hold Merch

of the franc at the May

No. Isizudard prescribed parity and to advise may bility made by sterling in tions on imports. Isolation or in concert with other

the Government

currency July

September quertions.

PLcember European currencies.

The In that light what hope is

question of compulsory March there of seeing convertibillly reserves for the banks has to be May Ti must take the form of stand-realised "In our time"? It de-considered in detalls, the Gov by credits, granted directly or pends on the answers to the ques-ernment stated.

included in through the International Mone-tions implied in the Common- will tury Fund, to provide the cushion wealth Plan

being con- present "draft-Reuter;"

PRESENT DANGER

130W

of international credit which, insidered by Western Europe and

metallic re- the United States. the depleted atute of serves outside the United States, Are

the "soft currency"

are essential to underpin any countries prepared to toughen

scheme. convertibility

That their domestic policles to the American

alsa point at which their resources co-operation is also needed in the more essential are no longer sucked into the form of a libera) Import and whirlpool of their own inflation?

palley. foreign lending

Are the creditors notably the The British team found willing United States, prepared bc-

Isteners for love as they should in their im and sympathetic their hopes and plans; but not port and lending polkies? Chicago, May 0.

conditional Are the countries concerned Chicago grains were mixed one firm or even

In the prepared to use their capital re- along with the major commed!-promise of assistance.

In Chicago

And

that the

not be

Therefore, it

the

Virtual

Standstill In Stocks

New York, May The stock market slowed to a ties, with slightly lower tenden-circumstances the plans had to sources to develop the materials

but with the and the food the world needs, in-virtual standstill today with he pigeon-holed, efes predominating.

reassuring stead of frittering them

the Wheat weakened at the close, comforting

and volume tide is now, uneconomic development? Wil prices firm suffering losses up to 2 cents a bushel under liquidation, and run for. Britain; that delay;

Barely be possible to revivify the in- lightest in six months,

clearing the million strengthen sterling and is tornational will

institutions which

share mark at 1,110,000 shares,│ Wheat closed 1/2 to 2 cents positively helpful to the cause should be providing the founda turnover for the day was the tion of international credit which lightest since October 30. The There is, however, a danger must be available to underpin a few gains of

point that the change in pace may be | return 10 convertibility taken as a change of objective. currencies?

hedge selling.

lower and soybeans were 14 lo cents lower. Prices closed as follows:-

2

2.16 nominal

Wheat-price per bushel

Spot

niny

July

September

3.1872-12 2.1724- 2.2014

December

7.20%-

March

2.3011

Corn

Spot

May

July

September

1.41 1.5731-1.57 1.00%-14 1.001.14

December

March

Iyo

May

July

Oats

May

1.3744-12 1.0134-14

7412-36

***** 76-7434

July

$13.05. nominal--United Press.

[1

of ultimate convertibility,

of

or more

23.00 bid

20.20

25.00

23.13 bid

23.16 bid

14.45 nominal

24.25

24.15

24.13

14.33

United Press.

"LONDON TIN

MARKET

32.89-34.00

bid

United Prem

New York Sugar

Futures

New York, May 0. World No. sugar closed 2 points lower to 1 point higher with sales of 02 contracts, Domestic No. O sugar closed point higher to' 1 point tower with

155 contracts, salon of Trading was mixed in both de- | liveries but the markets showed on avertone of steadiness in company with the raw market. Prices closed as follows:-

Contract No. 4 (World) July

London, May 6. The tiny market was very f today, Turnover was 110 tons, including 75 tons for cash. Prices closed at the end of the officiat morning session as fchow

Septembar October

January

March

Spot im buy

Spot tin. sellera

Business done at

#pree-monthe tin, buvern .... Three-months tin, sellers Business done at Settlement

150 73216 763 75-730

-United Press.

May July September October Spot No. Contract July September November March Spot

were registered mostly in the PENINSULAR oil group which received slight boost from the Senate approval of the Tidelands Bill although this had been largely discounted in the Street.

In the list of 05 leading

There are those in Britain, as Imily seem rashly optimistic well as in the soft currency bloc to suggest affirmative answers to of Western Europe, who have all these questions; but not if ac holled the amended time-table count be taken of the fact that with delight and in the hope that the true dollar gap is steadily this is the last that may be heard narrowing- us the appended stocks used in compiling the of the word "convertibility” in

gures show. Within these Dow Jones averagos, the best this generation. They are far totals the European dollar de-gain was a rice of 4 to 54% in ies of sterling and of fleit has declined steadily from Texas Company, the widest greater enemies of the British economy than are about $7,000m. in 1947 to about drop a point. loss to 21 in those who counselled the carller $270m. In the first half of 1952 New dash for convertibility. If that and to a probable surplus in the Harifard. dash had proved unsuccessful it second half of the year. would always have been possible

and

to halt go back with some lose admittedly, but no irremedt- able damage.

But

the damage

CAUTIOUS HOTE

York. New Haven and

3.54

3.64 bid

353 nominal

3.01

2.50 bid

354 nominal 3.54 nominal

1.32

4.3 bid

527 bid 8.07 bld

4.00

United Press,

Pedder Building.

Tel. Nos. 38066-9

Tel. 20461

Chinese Freight Booking Office

Dales and rotation subject is change without belice,

At liberty to procezḍ wis‘other ports to toad/discharge cargo.

EVERETT

LINES

EVERETT ORIENT LINE Fast regular freight-refrigerator-passenger service to Korça, Japan, Philippines, Indo- China, Siam, Malaya, Rangoon, Calcutta and Chittagong.

"NOREVERETT"

Arrives Sails

May 13 from Singapore. May 14 for Kobe

"REBEVERETT”

Arrives Sall

May 22

from Manila, May 23 for

Yokohama,

Singapore, Penang,

Rangoon, Chittagong Calcutta.

(Accepting cargo for transhipment Kobe/Furan and Koba/Okinawa)

EVERETT STAR LINE

Fast regular freight--refrigerator-passenger service to Korea, Japan, Philippines, Indo- China, Stam, Malaya, Colombo, Bombay, Karachi and Persian Gulf Ports.

"STAR ARCTURUS”

& ORIENTAL

Arrives Sails

STEAM NAVIGATION CO.

R.M.S. "CORFU

NOTICE TO PASSENGERS.

Of 1,084 issues traded, 401 were higher with 383 lower and SAILS: 211 unchanged The averages showed a slight loss, refloeting United Stutes Imports and

dividend corrections. disbursementa

for maintaining

With the list donc to military establishments

holding around *broad New York flour per 200 b. sack sterling by the other extremists are about 24 times

the

level where resistance had is far more fundamental and more were before the war-cautiously

what they been anticipated, traders moved

awaiting dangerous precisely because it

develop BAGGAGE: is less apparent, Theirs is the allowing for changes in prices.

The world's dollar gap iments which could send the of the death-watch

Margely due to the fact that the market either to a sell-off iest- beetle which may leave the industrial countries of Europe ing the April lows or further

of the untouched until it and all that own

have been unable to hold their drive into high ground.

Dow Jones averages at the with American manu-

end of the stasion stood, as rests upon 11 come crashing factures in third markets. follows:

But that position steadily

30 industrinis BASIC IMPORTANCE Improving. It will continue to

20 ralis Improvo provided the Europeon

1,19, utilities What rests on sterling is the countries persevere in their dis-

40 bonds whole cdifce of the sterling area, for a world-wide system of inter-|

Exchange Rates fell work

Business was done in the local un

at the following reten:-

obical exchange market this morning

US, dollar. (per #1). ...

97376

Sterling note (por £1)

18.74

Infonewan kuliders (per 100)

20.03

Stom Ucale (per 100)

$4.00

Hingapore (streita) uju

1435

1131

FIC platte (per, 100)

METALS IN N,Y.

26 Palanga te

appearance

down.

national trade, Insurance and JAPANESE BONDS finance. It was built on a con- vertible pound: New York, May 0.

it

survive cannot Prieca, in the metal market on an indefinitely incovertible elosed changed with the pound. It inconvertibility is to following exceptions.

be, the accepted norm it will not be tong before countries such as Ceylon and Pakistan and later| ton | West Africa and Malaya refuso

Scrap, copper, Lab. per to (ht) $17.00.

· Serap' lead, fobi `per

London. May 0. Japanese

borda "A" CAN. of 1899) 0112

"B" (4 of 1910) 08

of 1207) 1224 HDP (BA) FOX 1924) 100 "E" (829, of 1030) 141

(heavy soft) $9.25-0.75.—Unlted to play the sterling area game of Console

Press.

handing in their net dollar earn-

270.14 3104.43 51.12 03.07

SPECIÁL

United Press.

Flax Scod Prico

New York, May G. Prices in this zoods and oils

FRIDAY the 8th May at 12.00 Noon for the UNITED KINGDOM vía Straits, Colombo, Bombay, Aden and Port Said,

Passengers are requested to send ALL baggage to the Hongkong & Kowloon Wharf Co's Godown at No.2 Gate, CANTON ROAD ENTRANCE, by NOON on Thursday, 7th May, 1969.

NOTE; With the exception of hand packages carried by passengers themselves, ALL BAGGAGE must pass through the Wharf Co.'s Godown for loading- on, board by ́ ́ ship's slings only, BAGGABE COOLIES WILL NOT “BE PERMITTED TO ENTER THE

WHARF

market closed unchanged with EMBARKATION: the following exception;

Flax nord, per bushel, fo.b. 60-3/10, Minneapolis $3.79; United -United Press,

Press,

20 ite

Passengers should embark between 9.80 and 11.00a.m. on FRIDAY, the 8th May, 1953,

May

from Japan.

May 10 for Singapore, Port Swet- tentum, Penang, Madras, Colombo, Bombay, Karachi, Khorramshahr, Basrah & Babrein.

"STAR ALCYONE"

Arrives Solla

May 10 from Singapore.

May 11 for Kobe & Yokohama. (Accepting cargo for transhipment Kobe/Puran and Kobe/Okinawa)

EVERETT STEAMSHIP CORPORATION S/A

Queen's Building, Tolephono 31206. -

·Chipass Doportmont: Telephone 28293.

www.

BUSINESS REGULATION

ORDINANCE 1952-

Copies of the prescribed

Forms 1(a) 1(b) and 1 (c)(

Now On Sale at S. C. M. Post, Ltd. HONGKONG AND KOWLOON

TEN CENTS EACH