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COMMENT OF
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Gloucester Arcade
New Bank Rates
is a new, and slightly dis- I concerting experience for Hongkong to And its lend- ing banks having to follow the example of their counter- parts in Britain, Bolgium, Germany and the United States, and raising the bank rate. It is a strong warning to the Colony that the in- flationary spiral created by speculation must be checked if it is not to get out of hand.
While it is a striking fact the Hongkong banks have found it expedient to apply restric-
Live
borrowing measures simultaneously with Bri. tain and other European countries, the reasons for the action are not entirely similar. In Europe a prine consideration is the balance of nyments and dollar reserves. There, much of the inflationary spiral is repre- sented by excessive spend- Jag on consumer goods and
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INFLATIONARY TENDencies must be cuRBED HK's “Big 3" Banks Take Action
By ROBIN HUTCHEON
The "Big Three" British banks in Hongkong are raising interest rates on some advances by between one and three per cent a year, in an attempt to curb inflationary tendencies in the Colony's economy.
The new rates which will be between six and eight per cent a year apply to existing overdrafts as well as new advances.
The Chartered Bank, the Hong- kong and Shanghul Banic and tho Mercantile Bank nounced earlier this week that As from Wednesday interest at one per cent would be paid Current accounts on balances
un
monthly minimuni exceeding HK$5,000.
GENEVA TALKS Britain.
MAY LEAD TO Designing
UN DECISION Atomic London Optimism Aircraft
London, Aug. 4.
FROM LES ARMOUR
London, Aug. 4. Work ба the world's
Chou May Meet Cautious Hint By
Eisenhower
Washington, Aug. 4. President Elsenhower sald today the United States might consider holding a foreign ministers' conference with Communist China, but British merchants interested in Far East trade
he ruled out talks at the "summit" with Peking at said today that there were strong hopes that the first atomic powered air the present time. next step in the talks between the United States craft is under way in The President told, his press and Red China,in Geneva would lead to a relaxation Britain.
conference Urat the United
and Three of the nation's big-Stetes to make certain kinds of bor of the strategic embargoes which have been cramp-gest aircraft and aircraft flons would have no choice but the United No- tanding Sino-British trade,
to oppose recognition of Com- engine makers -- De Havil-munist China as long as Peking Hopes started to rise on Monday following the land. Rolls Royce and Eng- remained condemned statement by the Colonial Secretary, Mr Alanish Electric have reveal-aggression in Korea,
President Eisenhower spoke margins And this is only in There is no suggestion that any Lennox-Boyd, in Hongkong over the weekend thated that they are currying out
crisis is in the offing but at the British government "would not cling to the velopment work"
Americon
and Communist "design studles" and "de Chinese diplomats were nego- at the ambassadora level lating project.
In Geneva. Two of them-Rolls Royce POLICY UNCHANGED and English Electric-are also He said in reply to questions
the refiner 10 in created in atom power unlts that for ships and the two projects "People's Republic of China" by are likely to go hand hand. American diplomata nt, last The first plans for planes and month's Big Four Geneva talks ships are likely to be exhibited had no particular significance.
change business turnover has totailed more than $36 million
at banks are an Many Chinese
present lending against the and other of shares Becurity collaterals
on very
creasing Inflationary pressure,
services with a consequent | The bunks also announced that diversion of investment interest
savinge bank capital,
balances would be paid at two per cent a year.
In- Their statement added that
terest rates on advances would also be liable to "application of
higher scale than that presently in force."
that interest rates will learn not be increased automatically
indiscriminately.
In Hongkong it is a more sub- the less predletory form of initation, largely created and sustained by specula. tive manipulation of now No one ont le capital. denies that share prices are Inflated in relation to the
which factors
normally govern the activity of the market.
IT is true the international
war
Colony's
political atmosphere has improved; the danger of has receded; the industries Are generally speaking in healthy condition; and now optimism is developing
•
Before
it in decided to apply the new scale each application for an overdraft or advance will be considered on its merits,
Applications
for advances for tiseful Industrial development and expansion that are likely to contribute to the Colony's economic well-being will not be affected.
The Chief Cause
that in the not too distantThe banks' action is futuro it will be possible for the UN to lift its embargo, permitting a freer flow of international trade with
China from which Hong- kong must to some extent
beneft,
But these considerations by no means explain what is to many minds the dangerous. ly phenomenal activity of the share market, lience effort to the new
restrain speculation and to divert excess capital into long- term investment which will beneft the Colony,
designed primarily to cut down borrow- Ing for speculative ventures which is the chief cause of the present inflationary trend In HongkonK.
There is no indication yet as to
the action to be taken by the Chinese banks. But much will depend on the measures they adopt, The "Big
arrow
potentially
rowing
more
but difcult to encourage savings channel investment Into most
ceful economieally
enterprises.
some
eradicate the un-embargoes" on trade with Red China.
Then
came the encouraging reports from
the
At the moment Hongkong is Geneva talks between Red China's Ambassador,
any
the
time the banks want to healthy trend that has grown in recent months.
considering πα
more Wang Ping-nan, and the United States Ambassador, drastic measures to reduce
Alexis Johnson, who agreed that after the repatriation inflation such
restricting as
of civilians had been discussed there should be talks overdraft and advances. дру The more than at present.
on "other practical matters." bank will give this first men- muro a trial probably for several wecks to see what effect it has,
It does
Buccced tho activilicj curbing
this speculators and
It also presents a
in the danigorous position Colony which the "Big Three
trying to remedy. banks Many responsible people think Colony
is getting that the overbuilt, that the share mar- ket
nat too high. gotny is
The
say the pre- Conceivably
sent inflationary spiral could crash if there was end up in a
wide scale indication of any borrowers fulling Lo
interestedt British mees
In here and there was good reason their obligations.
of to believe that these discussions may would include an exchange of depend to a large extent on views on trade with Red China. measures. adopted by the Chinese banks to discourage this and
tendency--then stemmer action will have to be taken.
This is what the banks are try-
ing to avoid.
what they are trying to do a
a number of countries have done this week including Bri- tain, Belgium, Germany the United States-is not only
If
nol
Released Flier's
Byd Wife Goes Into Hiding
Cisco Grove, Calif., Aug. 4. The 20-year-old wife of airman Daniel Three's" decision Schmidt, one of the American fliers on his way end a sharp slump on the home from captivity in China, went into hiding Hongkong Stock Exchange on Wainesday, The full was today apparently to escape local gossip about her about the sharpest this year "marriage" to another man. and losses of up to five per on the were recorded
cent
clas
How has this inflationary pros-
sure developed?
from remittances
It is not to be expected that Inward
dollers
of
"
or
the banks' new measures Southoust Asia and the out from the trailer camp where itics sald the girl was considered
United will be particularly popular,
States have flooded
they live here and set off for an to be a the Colony with millions of undisclosed destination. "un- "Idle"
Neighbours said they went in in recent money
the direction of Reno, Nevada, And they are still
but they had not turned up roining in, the rate of inflow
now there, today. being determined to some ex-
but they are designed to protect general interests will survive and as such criticism. Yet to be seen is whether they are sufficient to achieve their purpose. The share market has hard- ty had time to absorb their Implications.
In any event the last thing that is intended or desired lo promote is fearful re> nction on the part of market investors. A shares crash would be just as disastrous na an uncontrollable prices apirul. The move made by the banks
expreasts caution; it objective. If tho mensures quickly achieve their purpose they could with justification be sub- jected to revision,
£6
new
A
representative
body merchants
Already representative bodies of the interested merchants and manufacturers
seeking guidance from the British Board of Trade,
pre
They have stressed that with
sudden relaxation any
in the trado embargo, competitors in Germany and Japan might get 19 first to take a large share of
10 Chinese markets tie
china
Magistrate's Life Threatened
Wellington, Aug. 4.
A threat on the life of the senior magistrate of Dune
on
ᎠᏏ
the
change
for
the
10
of
he
at the Atom Trade Fair which The US at present planned no
in its opposition. opens in Geneva next month.
The biggest problem is likely recognising the legitimacy to be the size of the plant re- tho Peking Government,
which will atured-
re-mid. much
quire
a120
aircraft 40 be
President Eisenhower said larger than any now in fight that it was possible to consider which, unless flying boats are holding foreign ministers, talks unod, will create serious prob-with Pcking, but timt a "sum- lems in airport construction,
GERMAN. PLAN
a
op-
conference to seitle general Asian problems was too distant But the Gaman insitute for prospect to be discussed pro-
fitebly. physics of jet propulsion is work-
He reaffirmed American ing ces a plan for a 200-ton air-
position to negotiating the (craft which would be
rocket.
Tuturo
Cluna of Nationalist assisted in take off and capable without the participation ef structurally of flying at three the Taipei. government.--France- tunes the speed of sound.
Presse Such a craft
to take enough en gunes.
mom-driven
bo big
The advantage. of atomic
CONFIRMS ATTITUDE:””
United Nations, Aug." 4. Mr Henry Cabot Lodge, per- manent American delegate to
The Board of Trade has din. New Zealand, WAS pointed out that any easing of handed him today while he the embargo on trade with Red was hearing a case of negli-power would be unlimited range, the UN, indicated today that the China can be done only by the gent driving that caused use power and the pod United States would continue to United Nations and that no
sibility of even greatly reduced oppose the admission of Com- rudden bilateral
decision be- death.
cost operating
for after the
China tween the United States and
munist
to the United The note
Initial installation cost, it seems Nations at next month's General to the magistrate, can emerge from
Ho told Mr J. D. Willis, said: "If Wills likely that atom plants will be Assembly meeting. Geneva.
does not give the decision to relatively cheap to run,
that 110 supposed So for no details of the new American policy on the question Nevertheless it is recognised Keogh he will get a bullet be-
plans have been revealed, but it would be the same as in the. that the definite relaxation of tween the eyes."
is almost certain that the details past. The last two Assembly tension must bring Bome
A member of Mr Willis will become available shortly sessions adopted · American re- changes in. United Nations
family received the messagó in when the practical designs are solutions to postpone any debate. an anonymous phone call this complete.--London Express Seton Chinese Communist admis- policy.
morning and the police at once
slon.-France-Presse, passed it on to the magistrate in the court.
MAINTAIN CONTACTS
commercial Interesta
vice:
newsmen
Won't Claim British Throne.
The girl, Una Schmidt, went through a form of marriage with a woodman, Mr Alford Fine, after she received word that Schmidt was missing in the Far East.
British Meanwhile Air Force author- Last night the couple pulled
"This does not worry me in pointed out that they have beta the least," said Mr Wills, a
every "relative of Schmidt" seizing
opportunity to
Munich, Aug. 4. the former university boxing blue, contacts with when they made up a passenger malatain
Prince Albrecht, 60-year-old Peking
already after had had shown the note to And regime list to fy close relations of the
have been compiled
and of both prosecution defence heir to Crown Prince Rupprecht 11 freed airmen to the Pacifests
of Bavaria, will make no claim count to meet the men in a few goods which could be supplied counsel.
to the English throne through days' time.Reuter:
Britain when the restric- "The would-be assassin can his descent from the Royal House Long on strategie supplies are rest assured that a decision will of Stuart,
not be given tonight." Omelni statistics show that panted his mother and "step-Plane
In court, counsel for the de-e
to the the throne of Bavarin which the Britain's trade with Red China fendant, Leonard Augustin Wittlesbach, family announced previous head of the house, already has increased with the Keogh, said his client wished to last night at Leutstotten, near Ludwig III, abdicated in 1918. Improvement in the internation- make it clear he knew nothing here, that though. Jacobites had But he would not claim the al atmosphere.
of the threat China Mail regarded Prince Rupprecht, who throne unless the people wished Special,
died yesterday aged 86, as the t-China Mall Special.
Danny, 24-year-old son
of
tent by the prevailing polliculairman Daniel Schmidt, accom ntiel economie situation Southeast Asia.
Some of this money has gone father,
straight into the share market and real estate. But much has been Inguishing in Chinese banks earning small rates of interest,
"Get Rich Quick”
Meanwhite at Nevada city the District Attorney, Mr Vernon Stoll, told reporters he did not intend to bring any charge of bigamy against Mrs Schmidt on his own initiative,
"I will take action whenever a complaint is filled," he added. STILL IN IGNORANCE Airman Schmidt was ignorant
Recently quite a large propor- tion of it has found its way is limited in
in the hands of speculators of his wife's action today. Re- who are trying to get rich porters at Hongkong and Manila quicle by capitalising on the were forbidden to mention her share market and real estate when they questioned him. booms. And in the last trading days the stock
ས
12
CX-
Sphinx Without Secrets?
Oscar Wilde described them as sphinxes without secrets. Women, of course. But what about the enigma- tic Greta, Garbo, the hazy, lazy darling of the screen whose preference for solitude is only slightly less remarkable than her eternal fascination?
In tomorrow's China Mall, your favourite week-end news- paper packed with the best feature reading available in the world our Hollywood correspondent Michael Ruddy begins THE GARBO STORY.
Don't miss this top-notch series of a unique personality and the whims and wiles that have made her famous. It is only one highlight in tomorrow's Mall. Watch also for these:
Chapman Pincher reports on an atomic energy project
which should cheer all Britons;
Another chapier in the fe-story of Orde Wingate Gideon Goes To War.
When news of her. husband's release was first given to Mrs Schmidt-who has been known here дя Mrs Fine She An- nounced that she would stay. with Mr Fine.
Since then she has told report- era: "I don't know what to
do,"
She added that she thought it
was better for her husbond to married than to come home and return to find his "wife happily and she's been running around with everybody."
in
Mr Fine, a tractor driver at a timber camp near here, said he was willing to step aside
favour of the returning husband if Una wishes it.
Disaster:
30 Lose Lives
Rolia, Miss., Aug. 4. An American Airlines Convair crashed in flames near here today killing all 30 people on board.
The twin-engine airliner, bound for St Louis from Tulsa, Oklahoma, had 27. passengers and a crew of three.
It crashed about a mile beyond the Rolla landing strip after the pilot radioed Waynesville airport that the plane was on fire and would atteript emergency landing.
ha
an
Some seven bodies were recovered soon after the crash but the scaring heat turned back rescue workers.
.The
blazing plane set brush and treés éftre near- by-Reuter,
Emergency Bill Extended
by
lifted.
For the six months ended June 30 Britain exported -£4,- 200,000 sterling worth of goods to Red China, compared with £2,000,000 for the same period last year.
During the same period Br. fain bought £6,000,000 worth from Rod China, compared with £3,900,000 worth for the first alx months of 1954,
a
Judge's Body
Found In River
Rouen, Aug. 5.
The representative bodies of
A naked body found floating Brüish merchants sounded
in the Seine river not for from note of caution, however, when Rauen yesterday morning was they pointed out that the poten- formally identified by a dental Halities of the Red China mar surgeon last night as that of ket are limited because Britain Judge Edmond Meyer who dia- is not likely to buy more.
This is because substitutes | Year's Evo.
appeared mysteriously last New.
have now been found for many Meyer left Rouen, where he of Britain's traditional imports was a judge, on, 'a new motor from China, Including bristics, | bicycle on December 31, 1954, fung oil and wolfram.
HK'S POSITION
ሱ
sdying he was going to Paris,
All his papers find beon tidied
up in such a way as to point to a possible intentional disappear- ance.
Nevertheless, It is expected that a lifting, of, the embargo
The vehicle was found 'th the river would bring
noar! Rouen carller, "tlıla "substantiat rist" in trade with Red China, year and the body yesterday 11 for which British merchants miles downstream.
Police Investigators are owalt- intend making a strong, bid. ing today's autopsy to continue From the point of view of their inquiry into the causes of
the
PLANE MISSING
"My wife's happines means a
Paris, Aug. 4. The Council of the Republic great deal to me and I am p’e- pared to go along with what- (Upper House) today approved the government the position Meyer's death-France-Presse., ever she decides he said, "We by 280 votes to 75 the bill proof Hongkong is of the first are very much in love and we posing that the state of emer-
mrin victim of the Wester have faith that everything will gency in strife-torn Algeria un Not only is Hongkong work out satisfactorily.".
should be prolonged for six*| embargo, but because of the months.
loss of the Chinese market the The National Assembly (the Colony was forced to make big
Vancouver, Aug. 4. Lower House) approved the fronds Into
British An amphibious alverüft with which is particularly five men on board, Including A Scote family returns from a South Sea paradise to to the gli last night just be bill on July 29 by 309 votes to mental to, the
247.
ricashire
the law partner, of Mr Ralph The state of emergency, giving textile
Industry
Canadian · Darepea trailer uie
the authorities wido
polleo problem in the face is a Campney,
which Minister, --was missing tonight powers, was introduced earlier tha British government, will in mountainous country -- 400 writes on current filma Rene MacColl continues his report on
Today sho Russia. There are three pages of pictures, cartoons and comlene ale mi levo Mr Tine. attacks against French rule arid. Hongkong does not find outlets
Una do say- this year as a result of terrorist remain powerless so long as miles north of here,
Tho sirips, sports news, women's news, children's news and Gites
plane, a 12-pwwenger- She would go back to Schmidt | virtual civil war in some areas. alsowhere for hor all in the China Mail.,
trading Malleti, diappeared on 4.28- -“if he want me now?" Mrs Algeria Ia:: politically, ai pars of activities; - United Fresa" und minita fight between Kománo Fowler. quoted her, an saying, metropolitan France---Räuter. | France-Prosso,
and Kitimati Reuter
their homeland. His wife is a Polynesian princess. There are all your regular favourites as well. Jano Roberts
M
NEIGHBOUR'S. STATEMENT
Mra Eleanora Fowler, the Fines' neprest neighbour, spoka
they packed their thing in their
tavan and left the camp.
quoted
of
The
court Marshal
rightful, king of England, ho himself never made any claim to the English throne,
Nor did Prince. Albrecht In
do
DO, tend to The
Marshal said Prince Albrecht would continue his father's policy
ley of not
renouncing
810:
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