1955-02-07 — Page 9

Page

PLANNED

ALASKA

UNDER

CONSTRUCTION

DISTANT EARLY WARNING

CANADA

MID-CANADA LINE

IN OPERATION

PINETREE LINE

U.S.

Sun FrontaCO

Colorado Springs

York

Chicope

Continental Air

Defense Command Headquarters

Jaxon Towers UNDER CONTRACT

AP Newsfeatures

American Air Defence

Plans Changing From

Theory To

Associated

The safety of the United

By BEM PRICE

Fact

Press Newsfeatures

Writer

Bolstering the interceptors are assigninest and has

States from sudden attack ground defences-averal

dependa

THE CHINÁ MAIL, 'MONDAY, FEBRUARY 7, 1955.

hun- Free! radar controlled anti- invisible. ntrcraft

and guns

a growing miles number of

supersonic "Nike" misalle stations which can search

and destroy (1):1

high-fying

Convert Liberty ships

plans to to the

sane purpose.

on A electronic fence 12 high.

on

TRADE and

COMMERCE SECTION

Page

PREMIERS ENCOURAGED

But The Chancellor Warns Of Possible Inflation

From Ronald Boxall

London, Feb. 6.

Mr R. A. Butler, Chancellor of the Exchequer gave the Common- wealth Prime Ministers in London last week a most encouraging report But the point has now been on the sterling area's economic progress. reached, he warned, where healthy expansion can easily be turned into

inflation.

The chief danger in the present situation is that sterling countries might be tempted to spend beyond their means. The expansion of economic activity in the area generally has created demand for more raw materials, ut also for bettering the workers' lot and for more consumer goods. To some extent this is, of course, inevitable and even desirable; but if imports are allowed to expand unchecked consequent inflation might set our recovery back several years,

N.Y. COTTON

MARKET

WEEKLY

REVIEW

countries

If there are any doubts left le present wide discount on the offcial rate is the loss of dollar atrout where the dunger Hes two

to sterling should business developments Ferent

The first is the dispel them. absence of any measurable im- provement in sterling despite the higher bank rate in Britain. The

By William Plunkett it was by no means reassuring.

INITIAL CAUSE

Persian Exchange HONGKONG

Rates

Teheran, Feb. 6. Bank officials here to- day announced that the

for

the

rates of exchange sierling, following Persian Government's do- cision to revalue the cur- rency would be;

Bank buying

rato 210 rials: bank wolling rate (commercial rate) 222.6 rials; oMelai rata- 80.4 rials (unchanged).— Reuter.

Greater Egg

Output

In China

Landon, Feb. 6. Communist China claling she has Increased her egg produc-

and tion for foreign

domestic murkets despite her disastrous nummer floods.

STOCK EXCHANGE

(From Our Correspondent)

Business done on the Hopg~ kong Stock Exchange this mora- ing Ammounted to $1,175,930. Noon quotations and the mura- ing's transactions:

BHARES BUYBAS SELLERS SALES

DANKS

HK Dank

INSURANCES

Union Lombard Underwriters

DOCKS, ETC.

Dock Puuvilent (O

Wheslock

LAND, ETC.

HX otel

H

Roalty

This Wis reported by the Tientsin Ta Kung Pau, one of UTILITIES the country's official Communist newspapers.

Total daily

egg purchase in the three provinces of Kiangsu, Auhwei and Chektang. China's chief egg producing centres, had boon increasing stendily ns ( result of measures taken to in- crease productivity, the paper stated.

JJCW9+

British businessmen who re

were re- cently visited Peking ported here to have negotiated egy purchases from China for the United Kingdum marke!.—- China Mail Special.

caused by "shunting" operations. In these conditions it is profitable for a Continental firm to use is for a

tin "cheap" pounds to buy

(or in fact anything second is the

Guamonds comparatively par

that is expensive in relation to outcome of January's gold and

bulk) in the dollar bransactions. An exact

sterling area and sell

Bri Ly United States. dance with the world cuiside

Dollars thus earned are then sold Western Europe was a bretter result than had been expected, for transferable sterling at a

substantiuj discount T the but as January is normally one

tu start crera- of the best months of the year dealer is ready

tions all over again. for doller carnings of sterling,

OUTBID STERLING AREA

These deals have been having a serious effect on the sterling arca.

entirental dealera are able to By using "cheap" pounds

area suppliers outbid sterling and acquire dollars that right- fully belong in the area's central resuarve. At

Paris, Feb. 6. this

-point, the vicious circle begins, For the The Bank of Franco stato- ended meni

the week for loss of dollars is refocted in the monthly gold figures and if these Jan 27, reads as follows: are lower than the holders of sterling consider they should be

Total gold holding 201,281,591,420 confidence in the pound begins Total

11,020,468,393. rencies so wune and its value

Advance

183,300,000,000

New York, Feb. 6. Cotton

trading futures

last week became more of a

The initial cause of the fall in the value of tire pound was

BuL

what

the disappointment at the delay

'convertibility Nearby of two-sided affair. deliveries settled back under appears to be keeping the oficina

rate at its present low level liquidation, the now crop the marked weakness of trans- months stood

firmer ferable sterling which has fallen ground prospects fum $2.70 six months ago to brightened for higher around $2.72.

The greatest source of danger Government loan rate this

when transferable sterling is

(N

on

#

year.

list AL

clos Friday'n ruled off 13 to up 8 points, or 65 cents a balo lawer to 40

Exact Agures

baie higher than the cents what the

La United States is spending on air

preceding week. but defence are not available.

Foars of a serious flare-up in the Far East over the Formosa there is no question the trend Upon the alertness of enemy bombers.

belief is

The country's situation, ani traders' upward. men in over 100 radar

capital investment In that chances are lessening for stations from Greenland to has at least the bare essentia's Present

any material Increase in the nir defence...21 protectiva air defence has been estimated

allotments thin year. were additional background factors in the new crop months.

lions of Americans.

of

now The United States thus

its

at 3 3 billion dollars.

armed

ΠΟΥ DIC

1

sure

San Diego and Alaska to ring of radur eyes around Florida rest the lives of mil- ‡ borders and a command struc- According to some reports.

ture with the tools of protection the

forces at its disposal. As yet the fence has many

spending more than that in But the maximum range of single year to make

this holes, but slowly tou slowly,

radar station is about enuntry has as much protection say some the gaps are being ground mended. It will never be whole. 200 miles. Therefore the heavy as modern science can provide.

will

regions

the Arm industrial

along

expect n will Great Lakes could guarantee that no enemy.

15 maximum warning time of will

minutes

from the "Pinetree"

bombers this day of supersonic speeds. radar chain it Soviet

the come streaking down from polar wastes.

bever

offer

sneak by undetected, but

It

be the best scientists can devise

In

It has been more than years since Congress first ap-

proved the plan to stretch

Obviously this is not enough radar screen neross the northern

lime to properly deploy Inter- border of the United States to

To remedy this, protect this country's Industrial ceptors. centres from possible bombing second radar fence the "mid- Canada" linc-is now rising some 600 miles north of Chicago. When completed

"mid- the Carında" line wili give Gen. Arst approval didn't

Chidlow an hour and a half to mean much, for while Congress voted in favour of the project prepare his defence strategy.

attack by planca across the polar

Russia.

That

sweeping wastes from

it did not set aside any monoy

for construction.

The

first Russian atomic

bomb explosion in 1949 altered

oversight,

Third Line

that

of

The

months.

As the shows,

coast.

line

W.GERMANY

PREFERS

NATURAL RUBBER

Continental

For Dogt

MARCH LIQUIDATION

March liquidation proceeded at an orderly pace, coincident with a steady rise in the certi fleated stock. First notice day for March will be Feb, 21. As the week ended the open post- tion in March was estimated around 570,000 bales,

N.Y. STOCK

MARKET

WEEKLY

REVIEW

By Elmer Walzer

at

dollar is further weakest the

The Bank Of France Statement

other

Stabla Fund Bank note culation

Tram

Star Ferry Yu Periy

2120

20 G 2:20

10 2120

33 34 325

045

10

10.34 1000 vs 10.30

243

10.40 1700 or 16.10

7.10 1500 1.4 2.033

18 500 g 24.00

.2000 se 15.70

1000 15

600 14.80

03 100 67

100 or 021

1007

2.021 8006 020214

5000 4 3

20.00 200

1700

200

500

200 *

130

400

C. Light (D) 10.70 17.30 1000 or

C. Lint INI (3,80 Electric

Macro Elec

1000 *

1000 40

18:33

34% 2000

400

2332

12.00

Telephone .30% 194

STORES, ETC.

Dairy

...... 2!!

1 Crawford COTTONS

Tenille Corp. MISCELLANEDUS

Yangisze

Allied

2000

2012

0.00

5.30

4271 435 4000 @ 41%

500 $4.2135

Exchange Rates

Business was dano in the local unofficial

Franca

cur.

Curr.

cir.

market exchango 2,472,040,259,333 morning at the following rates:--

U.S. dollar (per 1) 120,791,250,478 Blerking notes (per 1)

Indonesian rupish (per 100) Slom ticals per 100) 60,312.100,404 Singapore (Siraits) -United Press.

this

13.07

17.00

27.70

1.80

Indo-China plastres (per 100):

current accounts and

pils discounted 1,110,180,002,001 Sight balance brood

This sort of thing would be impossible, of course, if sterling were convertible. For then there would be only one rate

no longer be able to would undercut sterling countries in the dollar market with their own commodities.

exchange Topontis and Continental dealers in EPU

the

But if sterling wore declared

1. officially convertiblé present circumstances, we would simply be closing one leak in the reserves at the risk of opening another and much larger onu.

To a certain extent, of course, New York, Feb. 7. sterling s already convertible Industrial shares on the over a wide area of the world.

Holders of pounds

ids anywhere out- the sterling arta may stock exchange finished the Hold

exchange them into dollars, the week at a new all-time high. exch

Gains on the week in the in- only difference between this and emvertibility being baics dustriais ranges to more than 2 the official since the New Year. Spot in-points with some issues showing that non-American hollers must sell them at the transferable rate believed to be much wider rises. were transferring hedge

instead of the official rate

Cotton available for contract delivery rose lo 05,788 balcs, a new high, and an aggregate in-

almost 15,000 crease of

terests

GREATER FREEDOM

LONDON STOCK MARKETS

INDUSTRIAL INDEX

HITS NEW

HIGH THURSDAY

positions

From Our Own Correspondent The against sales of the new crop

market mAdc ita best In- showing lato in the week. months

London, Feb, 6. on shares advanced The spot March delivery on dustrial

After a short period of hesitancy early in the Monday sold up to 34.70 cents Monday and Tuesday. However,

pound, its highest level since after 11 days of advance, last Dec, 30, whereupon hedge industrials declined in the next of transferable sterling in inter-week while the market digested the political news and national commerce it has not from the Far East industrial shares in London selling and

in-two persions-Wednesday

provented from falling- in creased.

The net

liquidation

the consequent

Thursday,

But though this greater free- the dom has led to much wider use

Fords

cotton in Government hands at The rise in the industrial yot right for convertiblity. The United Nations Invitation to dis-rose is 9d to 89s 9d on a 100

18

the

:,!

Indian Railwell They were downs 83 conts policies in sterling countries has

moved Traffic Increasing

Singapore, Feb. 6. West Germany will buy

Lagging tendency of the near- On Friday, a buying spurt value over the past few months. forged vigorously ahead. By Thursday's close

in Thought to bc

new all time. more Malayan rubber be-

than This which moro by months was coupled with the developed cause manufacturers there slow rate of producer impound-wiped

out the carlier losses, because market needs are being the Financial Times index was at a

supplied by sterling high of 197.5, having risen from 193 at the begin- end the Air To boost the crucial time

it to the synthetic | Ing under the Government foon The large mumber of favourable full. prefer

countries - spending more than

ning of the week. Force received hasty authorisa-preparation still further, a go product, said Herr H. T. programme and

corporate developments helped

they should on imperts. tion to divert 56 million dollars ahead was given last year to a

Mr Butler had other things in On Friday, however, news sharos affected by special situa- dividend "free" supply situation before get third line which will run along itscher, a representative of teening of prospects for a tight to map the market out of its from other progammen to

lethargy. Stock splits, storted on a warning system. the edge of the Arctic Circle. the largest German rubber the next harvest is available,

boosts and higher earnings help-mind as well, of course, when that China had turned down the tions. In this category air defence picture has been Called the

he said that conditions were not (for) manufacturers,

stock of 1984 croped the market considerably.

and, Im- "Durning). these Gummi-Werks A.G.

off the main-per cent scrip issue cuss a crasefre carly getting brighter ever since, and distant

19 still en the last reports was 108-054 bales,

land coast coincided with a now perial Tobacco put on 3g to 01s shures, stations-soma of them

measured by

main

Überal trade has taken some giant strides inmate and unmanned-will

fo in sterling and both indus-9d on dividend hopes before plus 4,099.020 boles from 1953.

amounted averages,

to $5.09, adoption of a more recent mon

and the moving

to policy by America that United Press.

component

took a sharp tumble.

drag back a few pennies. $409.76. 红 new high, Railroad availability of adequate reserves, trials and gilt-edged securities Friday's Town caused them to In the gilt-edged market sort- equities, however, did not show but the need for sound internal

Earlier the Industrial market dated securities continued their low levels up in relative had been sustained by a flow of recovery from the

after on the week to $143.37. Utilities now

privous holpful business news. Follow roached

the

chango and finished a shade under 14-year importance.

It was not surprsing to learn, ing the previous week's an- week's bank rate highs established on Janitory 14.

added therefore, that the Common nouncement of the big railway improvement later spread to long The upswing last week

schemo in Britain and undated stocks. around $1,000,000,000 in valua- wealth Prime Ministers had little expansion

But the market turned dull to say in their communique about the Government has now pub tion to the list..

The so-called "war issues" convertibility beyond the fact shed its plan for modernising on Thursday, when Investment Now Delhi, Feb, 0. were booming. In particular, that it remained the goal of the roads and this brought in buyers support dried up and further.

the were Mustained Passenger traffic on the Indian aircraft stock were strong. Betterling area policy. Unicas Mr for road building shares.

next day on the turn in the For rallways was now showing an Aircraft stole the spotlight, late

warning is heciled and taka firm

Eastern political situation, and upward trend as compared to the in the week when the Company sterling cointeles downward trend since 1951-52, announced that it has developed mousires to prevent an ula-

the sagging pound according to the, Chairman of -. Herr Ritscher said his com-the Indian Rahvay Board, Mra plant in building special types tionary ring, of Imporisit my tries have both ́ announcóð" ra- |

of engines, Boll Aircraft regisbe a long time before it conses For tile reason the United pany Imported natural rubber G. Pandey.

tered a gain of 0% points to 333 to be polky and becomes reality, cord production figures; the

January gold and dollar result The feature of the foreign States la planning to extend is from Malaya, Ceylon and The Indian railways are the and Fairchild, was up 3 points

biggest nationalised undertaking

|to $204, This command post is an all-radar oyes out over the sea Indonesia.

in the country.

returns Standard Oil Company (NJ) The Bank Of England service operation. Its chlot from Newfoundland to Norfolk

Last year, he added, West

Passenger earnings from April directors disappointed Wall Air Forco Gen. Benjamin Chid-with Texas towers," man-made

Statement 1 to November 30, 1954, Street That work when they only to islands which can be anchored Germany Imported 74,750 tons of law-to directly reappnelbin

Was corded on increase of 16 million declared a dlyidend of $1.25 3 to the continental shelf. They're rubber from Malaya and the Joint Chiefs-of-Staff.

country's fourth best

(about 1/ £1,384,000 The centre is manned 24 called "Texas towers" because this hours a day and ceaselessly of their similarity to the ell customer. He said his company sterling) over the corramending share the same as paid in the

had expected a stock split 2719, ment ve the work endect drilling platforme of the Gulf manutuctured 30,000 different period of the previous as previous quarter, Sicet quat The Bank of England satoes are sufficient reasons for copper shores firm despite goes about its task of choice Const. The contracts for these arilcies made of rubber includ-The goods perpine hawed a lock declined on this news, but reps 2, reads de followe the nature of avery

airgratt

of towers already have been let, ing motor car tyros, tubes and increase be 20 million spotrebovered a good part of the

In areasach as those off

Herr Ritscher, as an exten- accompanying map give the United States a three-slye tour of Eastern countries, there now is in opera-hour alert. Soven experimental said the reason German manu- tion a radar fence following the stations on the "DEW" line now facturers preferred natural rub- U.S.-Canadian border from the pre in operation.

ber was because the machinery Atlantic to the Pacific and bolts

Radar, however, is not in-required to turn out products extending southward down each fallible. Low dying acroplanes made from natural rubber was often escape detection and it is considerably cheaper than thore A central Continental Alt not improbable that a bomber required for the manufacture of Defence Command has been set could sneak over the North articles from synthetic rubber. up at Colorado Springs, Colo., Pole, dodging the mountains where information from the

The German Industrial expert ice caps, and como in low

Atlantic. Unless it said however that for such art!- radar outposts arrives by tele- over the type, and is plotted on a huge happened to be spotted by a cles as hoses for use in con

with oil and petrol, plexiglass map of the continent ship, it could be almost on top nection

WBS botter than 22 feet wide and 30 feet long, of a coast city like New York synthetic

before It showed up on radar (natural rubber. - screens.

Command Post

art of

and

We rompuły:-Investigated | the Weet: Coarb-where AG

by si Bahtera,orambil from depur 1 too grost, fox, misport. de Honidos galego

noids sentianed by round like permanent towers, radar picket Hent

ration.

At Chidlaw's commin are/13300 jet interceptont

fahlp", will be usedan EarlyBhit

month the Navy equipped

(£2,000,000 atering) compa

Ro che proviour Darlod": pany. The increased ja arnika

better, traffic position.

Idas on Friday. On the wa

Tewas up any points to $110

London, Feb 6.

BAYON AND PLASTICS

The rayon and plastic Indus

BOND MARKET

was better than most people bond market was the rise in had expectext; and the Ex Rumanian bonds on the news

continuo,to that the dobb talks with that'; choquer encourage hope of tax reduc country are to begin next wook. lons in the next budget. A new record, price, com

hakra manied by the mainly kept market's advance but the labour, troubles, necting Rho sharpness of the week's gains is desland mines), oils/Improv evidence of an acute ahortage atine d'ailystart, tonka of stock,... A quito moderato de entrady, fria and rubberi mand in theeg conditions has a malbeck dreifteady Bouthi somewhat exaggerstone

effect, on

tho

prices.

The induse li market 1 blistal PTICE DOVEIents, have beengi