1958-09-19 — Page 1

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CHINA MAIL

No. 37158

Established 1845

FRIDAY, SEPTEMBER 19, 1958.

Price 20 Cents

Formosa Sources Say U.S. May Arrange "CEASEFIRE”..... But

Of The "NO WITHDRAWAL'

Day

Quemoy's Fate

Q

UEMOY is being slowly

throttled by the Cominun-

Ist blockade. The Nationalist convoyя are experiencing Increasingly greater diffleuf- ly getting their supply ships Into the island'a

bumb

battered benches Aircraft supply dropa hampered by

Communist guns and MIU

fighters cannot possibly en,

BOTH SIDES WILL OPPOSE

TWO CHINAS SETTLEMENT

By RUTHERFORD POATS

Washington, Sept. 18.

sure the Indefinite survival Nationalist China probably would go

of the garrison and

local population.

The Nationallata it

the

~ur-

have largely themselves to blame for this. The off- shore islands were steadily and, one suspects, reptitiously reinforced in the the months prior to Intest crisis. The seale the build-up was, une fur ther suspects,

concealed from the Americans heenuse the Nationalists

wanted

of

ultimately to force Wash- ington to accept the view that the islands we78 essential to the defence of Formosa.

Convinced

along with a United States-Communist China ceasefire agreement covering the Quemoy and Matsu off - shore islands, but it would not agree to withdraw Nationalist troops from the islands, informed sources said today. Generalissimo Chiang Kai-shek also was described as, adamantly opposed to any broad joint de- claration renouncing force and ending the Chinese Civil War. Communist China takes the same stand.

The

Such u declara'son was US goal at the original Geneva diplomatic take with Commun- Ist China, Both Polting and Taipei believe it would result ND HOW although the In practice, in a "Two Chinne“

oppose.

Keo

they bitterby

FETZKIN-

are convinced that, graphically speaking, they But Chiang way sold to have are not, the fact that the indicated privately o Nationalists have one third able" stand toward the namowly of their forces in the area confined US. proposal ut seems to have persuaded current Warsaw tatas.

the Americans that they Higher Price

caunut ignore the fate of

the troups 01 Quemoy However,

the

the

Nationalists

without Huzarding the have neither Riven nor been military defence of Formosa asked for authority by the

or without inflicting demoralising

blow

Chiang Kai-shek and Army

United States to make further

cortenssions at Warsaw in order

a

021

hts

source sale,

The Communist blockade of

Quemoy and America's re-

to persuade the Communists to stop shooling, na

authoritative

The Communists" price is con-

A New Macao "Ferry" For HK

IT has been a long time since this type of vessel was Inst wren in this part of the world, but the unusual "paddle steamer" shoten above will soon be a familiar sight to residents in Hongkong. It is now under construction in a Colony shipyard and will soon be ready for a widely- For the auswer read the publicised launching, What is 11?

Ching Mall exclusive story and pictures on the back page,

U.S. Planes May Chase Attackers But Must Not Bomb The Mainland

ORDERS TO CHECK

SABRE RATTLING

Washington, Sept. 18.

RELAX INDAKS

THER FAMOUS COMFORT

IN ACTION TAQUSTRI

Whiteaways

...HONGXD. M. G 1 KOWLOON.

GOVERNMENT CLAMP ON ESTATE DUTY DODGERS

By A CHINA MAIL REPORTER Government will shortly clamp down on

Estate Duty dodgers. This was announced today in a draft bill published for general information.

!

Elaborate and detailed men-{ Hongkong's catate duty laws sutes are proposed to real gaps|were at one time the same as in the low which have enabled | Britain's, but when the British people to dodge payments to the Government noticed that big Treasury.

estate owners found loopholes in the law they introduced "pro- ventive legislation."

In announcing the bill, Gov- ernment disclosed that big es late owners were getting profes- sional advice on how to dodge duly.

Within The Law "The devices commonly en- for this purpose are ployed within the law as it now stands in Hongkong," the Government revealed.

13th ATLAS BLOWS UP IN THE AIR

Cape Canaveral, Florida, Sept. 18.

A three-stage Atlas Intercontinental Ballistic missile launched here today flew for 90 seconds before it blew up in the air.

Auge air missile was un- The huge

officially reported be a "full Linge" rocket designed to fly the 5,500 miles needed for

Baillstic (rue Intercontinental Missile Earlier Alles tests have

about 3,000 miles.

The Defence Department said today that if Chinese planes used rockets with a range

attacked American aircraft over the Formosa Straits the U.S. pilots could chase their attackers all the way into China in an effort to shoot them down.

fusal to allow its Navy past siderably higher, tccording to A spokesman said, however, that American Forces in the Far

the

three-mile

initiat reports from Warsaw

shepherding supply ships toj dual the United States is pre-

the Quemy beaches is fore.

East had not been authorised to bomb Chinese mainland bases.

The

Delcace

the Defence Serre-

#

of

In today's test, the rocket blew up of an allltude of about 60,000 Icel

later:

The Air Force announced

"Approximately BO seconds pared to consider, according to

after the Alles was test- Ing the Nationalists to face confident Nationalist sources.

launched the vehicle exploded agonising alternatives. Un- One U.S. oficiat said that if The

Department apparently are continuing in and destroyed itself, the cause oflleial accounts tell of food Communist Chlua

commented spokesman maintained after persistent questioning

by spokerman said that the Marlie spite of

ol the mallunellon is not yet shortages and the generally the cease-fire for a considerable newsmen ebout a Taipei dis- Major in Furmost hard "tary's strong words on the sub-known." serious plight of the island period and toned down its mill-patch in which an American authorisation" for saying U.5. jee and perhaps it was fear of lary threats against Nallonulist spokesman was quoted as saying, planes might bomb mainland

US. pilanes reports of growing despera-China, the United States night The

might just bases. Moreover, the spokes- tion that persuaded The also urge Chlung to abandon his follow (any attacking) Migs to

forces man acled, American blockade of Ainoy, mainland China bases and tamu have no authorisation to bombow Nationalists varlier this vi

Foochow and other Communist thare bases."

i muinland bases." week to keep out visiting

ports. reporters. The trip was be coming increasingly hazard- There have been hints from US. Marine Major R. G. Martin.

Nationalist cmcials that they [described as spokesman for the It was pointed cut that the suld that American planes were

JUS. Talwan Detence Command. Defence

ORN anyway. It seems fairly clear that the would be kai to withdow

Communists aro not now large part of the present 80,000

Quemoy contemplating dirçet aggres- men garrisoned on slon but are content to en- there were a firm assurance that force the blockado with mainland China will not atteck.

However, a long period of growing severity and to

proof of Communist sincerity in hope für concessions from | abiding by a ecase fire would be the Warsaw talks, A de necessary before any withdrawal There cision by Chiang Kai-shek could surely be made, to stay put on Quemoyofficials emphasised in talks with therefore poses the danger the U.S. Government.

of starvation and the pro-

The Nationalists cre convinced

that the Comununists will pover

spect of inglorious surrend- become so peacesle.-U.P.I. er-anless direct American

participation is forthcoming.Warsaw Talks Gradually

Is this likely? Washington

now seems rather more

Vital Stage

American

Warsaw. Sept. 18.

The Taipei spokesman

WGS

Not Helpful

not

It was the 13th Atlas to be

the Atlas

If Mr McElroy has ordeel launched.

had flown Pacile commanders to tone

would have their utterances, the successfully

landed near Ascension Island, Defence Department Itas

the 1,000 miles off

African made it known publicly.

coast. The light would have The Defence spokesman here taken 30 minutes-Reuter. escorting Nationalist

to the three-mile, mil He also said American planes McElroy, has called statements only

around the Quemoy islands and Cuver for Nationalist of that kind by American clilcers supply convoys were under or "sabre rattig" of a type not thus were observing the same

statements rules as escort ships.

nying

H. Secretory, Nell

|ders to "shoot to kil!” if attacked. helpful. The

1

koon to settle the affair

Ambassador Jacob A peacefully, though follow- Beam and Chinese Communist Ing Mr Eisenhower's "no Ambassador Wang Ping-nan net appeasement"

declaration today behind closed doors to con- this will only appear gra-tinue their talks on the Formost dually. If the U.S. cannot situation. persuade Its

recalcitrant Although the utmost secrecy

Policeman Shot

In Paris Terror Strike

Paris, Sept. 18..

convoys

The spokesman would not comument об what American pinnes would do if Nationalist planes with which they wen flying came under attack.

The spokesman explained that pursuit" The practice of "not could be used anywhere in the world If a United States plane was stacked

He said that Air Force Navy Jet Oghters were bound by the rules that applied to Navy -uhlps. Neither U.S. ships nor planes were permitted to ap- prouch Qutmuy closer than three miles while covering

French policeman was fatally wounded by

Algerian terrorists in Paris today, and two Nationalist Chinese supply con of his three attackers were later killed.

The Algerians opened fire on

the policeman 'as he alood ally to withdraw and this surrounded their meeting, it was Walling for a bus. Police in a threatens to upset relations believed that today they discuss-patrol car heard the shots and

It would appear that the cd the most difficult point on rushed to the scene.

next best solution is to let their agenda-the possibility of a

modus vivendi in the Fur East

Are They opaard

on the Communists have their based on a pledge to abstain fleeing killera, the Com

wounding wo and koree the from any act of force in the For-of them, who later died Nationalists to quit. Looked mosa Straits and to seclea settle-third Algerian escaped. at In this Fight the ment through blockade appears to solve France-Presse.

the

Americans than it creates,

F

more difficulties for

The Nationalists stand a better

chance of survival by rotir

ing to the safety of Formosa

than by persisting in their

negotiations,

US. Casualty

Talpel, Sept. 19. The Communist shelling of taken its first futilo endeavour to hold Quemoy has Quemoy. Chiang Kai-shek American casualty, it was learn- must understand that the cd today,

A

Sir

The now idling came as Gen.

Charles de Gaulle's governmcat was meeting to discuss new security measures to atom the tide of Algerian terrorism, which is rising across Franes.

The

Meanwhile in a session behind closed doors at the Premier official residence, The Hotel world feels strongly that the He Is Army Spl-4 George W. Matignon, the Gabinet reportal- islands should not become Johnston, of Springdale, Pennsyl-ly decided to increase security

France and In of a now Far vannia, who was hit in the right patrols throughout the cause

arm yesterday by a flying shell tighten its watch over the 200,-. for fragment. He was evacuated by 000 Eastern war in which

live in Algerions. who more than the Nationalists air to Taipei from the besieged France. Franco-Prome

U.P.I. would be involved.

Island today---U.F.I.

voys from Formosa,--Ü.P.I. and Router.

'

Townsend Says "No" To £12,000

Paris, Sept. 18. Group-Captain Peter Townsend today declin- ed an offer by a Johon- nosburg company of a £12,000 a year post of Public Relations Officer, Mr Victor Stoloff, pro- ducar of his Round The World Travel. Film, sold today. Reuter.

When The Churchills

Go For A Cruise

Cap Dail, Sept, 18. Winston and Lady Churchill will go on

one of the largest privately owned' in the world.

Christina has a garden and a swimming pool with a mosaic floor that can ba raised to make a dance floor.

DANCE FLOOR Powered by both steam and diesel engines,

its the yacht has

own electricity system that could supply a town of .10,000 people..

à Mediterranean cruise off the Spanish The coast next week aboard the yacht Christina, owned by Greek shipping magnate, Mr Aristotle Onassis, Sir Winston's socrotary, Mr Anthony Montague-Browne, stated today.

Christina--named after Mr Onassis's daughtor--has a crew of 48, plus three. cooks.

the radio room Mr Onassis spends six or seven hours a day in contact with his New York headquarters and with his ships all over the world....... His float is

The bathroom has gilded bronze taps shaped like dolphins. The library and living rooms are sumptuously decorated with antique furniture and art tre jures,China Mail Special

Triad Suspects

Not just once, but almost every year new loopholes came to light.

And I took them 25 years to evolve and perfect" "the" pre- ventive legislation.

In Ita explanation to the Hongkong bill, Government dis- closed

that the amendments made by Britain "served to draw attention to methods of avoid- ance and to indicate how to take advantage of the abenço of restrictive legislation on the subject" in Hongkrong.

Sorious

Now cale duty dodging by people whose estates "are of sumcient size to render stich a matter of importaned hag become Increasingly Tious, and has caused loss of revenue.

How do eslate owners dodge duty?

The simplest way, says Gov- is for a person to met transfer property to a limited company, reialning lo himself

under the articles of association the right to enjoy the benefits during his lifetime, but vesting bare legal ownship of the pro- perty (in the form of shares or debentures of his companies) in his, beneiciaries.

Under such an arrangement, as the law now stands, no duty, would be chargeable on that uruperty up his death.

Further nétion against Trlod Societies by the Hongkong Police Force has continued and during the past two days further 154 suspected members of these legal socleties have been detained by the Criminal 1 ¡11. Investigation Department.

So to prevent dodging of this kind and all other kinda, Gov- emment will shortly amend the Estate Duty Ordinance, chapter

(Contd. on Pare B. Col. 4) 7

U.S. Vice-Consul

In Cyprus Dangerously III

Nicosia, Sept. 18.

American Vice-Consul, John Wentworth, shot out- side his home by terrorists today, was operated upon tonight at the British military hospital. His condition was reported to be "dangerously ill".

+

The American Consular nuthorities and the Cyprus goy- ernment were considering the possibility tonight that Went- worth may have been shot in mistake for en Englishman.

American families here. There' are about 450 Americans in Crprus Including familles, upart from the consular safi.

They man two diplomatic wireless stations near Nicosdu and the monitoring station near Karavas, North Cyprus,

Meanwhile, the two Turidsh Cypriots also wounded in today's terrorist attack were reported to be on the critically protection of 10 Hat tonight-France-Pressc.

However, a very serious view was taken of the incident, and the Americars authorities 10- night were considering the possibility of using Amorlean Marines for the

In Your Saturday's Mail

IS there a real threat of Communiem in India? Do the old superstitions and the ancient religions tourish? Are the rumours of corruption in Indian politics based on fact?

These are some of the questions that are asked and answered in a report by a CHINA MAIL observer who re- cently vislied India's big cities and remote villages. Read the first chapter of "INSIDE" NEHRU'S INDIA” în inmorrow'Ń CHINA MAIL.

Included arS:

Another chapter of "A Pig and a Promise Saved Me From the Titante” .......... a survivor's story of the world-famous disaster;

Show Business ... inside stories of filandom by top-reporters in Hollywood and Britain;

Three pipes of news picturés ...by our photos. graphers in Britain and Hongkong,

Alro all your favourlie carlcome,' comisa and puzzles, “Let's Taka Hongkong's Word" by, B. W. Thompson of the Hoogkong University, Polar Burgoyne's “Now» From Deliain,” and all the latest news and viowa. Tako boma: a CHINA MAIL LOTOKTÓW):