1958-11-05 — Page 9

THE CHINA MAIL, WEDNESDAY, NOVEMBER 5, 1958.

ECONOMIC WAR THREAT HANGING OVER FREE TRADE AREA TALKS

BRITAIN

RANSPORTATION Agreement Needed

Opposition To Proposed Boycott Of Ships Flying 'Flags Of Convenience

London, Nov. 4.

THE International Shipping Federation declared here tonight it was "wholly opposed" to a proposed boycott of ships flying "flags of venience."

Plans For Boycott To Be Discussed

Brussols, Nov 4.

con-

The Federation said this in

malement commenting on the proposed boycott by the International Transport Woriters Federation.

The Federation said it had been naked for its views of International Transport PLANS for a world-wide the

trade union boycott Workorn Federation that there should be general boycott of

of shipa sailing under "Hage the nib-standard" ships flying of convenience" will be dis-nags or conveniente" cursed at a meeting of the

International Confodoration SUB-STANDARD

Workers

Federation

of Free Trade Unions hero on The November 10, an .C.F.T.U. | defined "sub-standard" as being ships on which the wages "and spokesman said tonight.

the Representatives of inetal and employment conditions of

crew were not regulated by any allied workers unions will meet

collective agreement recognised of the Interna- committee timel

Workers by the I.T.W.F. Trasport Federation for prehhinary talks on the proposed boycott.

'PANLIBHONCO'

SI

The International Transport Workers Federation planned the boycott-due to begin some time between November 15 and December 15-al a ineeling in Amsterdam earlier this

The stalement went on: "The members of the International Shipping Federation, which is the international body or ship

whers competent to deal with

conditions, employment wholly opposed to the boycott, for two reasons.**

year

★

and will meet again to discuss details v1] November 13, the spokesman said.

would

It

1

"panlibhone" slups, Le.

all those suiting under the fuge of Panama, Liberie, Honduras un Costa Rica, the spokesman zükl

T ICFTU

alrenity complained about the practic-s of hip flying under the Dags of these nations without the agreement of the international Transport Workers Federation," he added-Reuter,

NEW SHIP SERVICE

TO FAR EAST

THE

has

an-

Ling THE Ben

nounced the inaugura tion of a new monthly ser vice from For Eastern ports

to Grangemouth.

une

~The Brat reason Is Chal such a boycott wuald volve a breach of national collective agreements, and in Dome CAMER breach of national Jap

To Save

Payments Collapse

By STEPHEN COULTER

Paris, Nov. 4.

The threat of economic war between Britain

and the Continental Powors is hanging over the Paris conference on the Free Trade Area. The French are resolutely hostile to the British idoas.

Differences remaining are fundamental, and it is now plain that unless there is some agree ment between the two sides Britain und her 10 O.E.E.C. associates on the one hand, and France, Germany, Benelux and Italy on the other the whole system of multilateral trade and payments on which Europe has depended for the last decade muy collapse.

They are accepting it, and the concurrent likelihood of German economy hegemony, for polillen! reason the creation of a united Europe under Franco-German negts-almost a modern version of the Holy Roman Empire. But they feel that to expose French fadustry to competition from still further afield, that is from Britain to Scandinavia and the other O.E.E.C. countries, would be disastrous to them. And they are specially disli

60 since these countries refuse to lay down any political stake.

1

Political 'Issue

This would mean the end of the O.E.E.C. and a major clined to do heaval in European payments through the destruction of the European Payments Union at the moment when Britain is moving closer to converüibility of the pound. Moreover, British octols do not disguise their fears that this sort of economic division would be the prelude to a political division between Britain and Europe, with the inevitable strain on military untly.

One of the prickliest aspects is the danger to British industry now politico-economic partnership between France and

Gennany

in

the

British Fears

The Cominon Market is due to come into operation on January 1 with a Brst cut of 10 per cent in toris and 20 per cent in quotas The British fear is a "The second reason is thi

under this British goods or those: the tonnage under flags

01 ay O.E.E.C. non-member convenience Will Dot be

country will be progresively diminished to any signiti.

queezed out of the European extent by collective

nurket by suy. German goods! agreements on employment circulating duty free from Calis conditions,

القادم

The advantage of Rags of euvenience les estehually on lower taxation, not in bad ent- ployment conditiona Reuter.

'Day-Glow Paint For

Safe Air Travel

Stockholm, Nov. 4.

aeronautical

SWEDISH

In recent years, tice the Ben have Libe discomitrued their service

officials are planning to

to other Scottish purts, the only painted

all Swedish airliners

red

with self- glow"

regular direct service from the luminating "day

-

Far East has been to Glasgow, paint as a first stop toward

Far Eastern cargo destined for better air sopurity in the now

ports

Coust

of

on the Erst Scotland has had to be delivered with transhipment at additional cost.

ALTERNATIVE

ڈراتا میرم

jet age.

The Royal Aeronautic Ad- ministration's Board here re-

Hards the risk of air rollisiona os "very serious”,

narrow

The Ben Lae's new service should, It 13 felt, porticular interest to importers Since 1950, there have been in Eastern and Central

of 60 reports Scot- some Land, while at the same time esenpes In Swedish air space. Swedish tex- offering to West Cost Importers Every pilot over an alternative to the existing ritury must immediately report Glasgow service.

all such incidents. by radio Benolder, the first vessel in Those reports have shown the new service, sailed into teady increase during the last Grangemouth recently having four years. londed at Hongkong, the Philip

pines, Bangkok. Singapore, CO-ORDINATE

Malaya. Aden and Port Sudan. Subsequent salings wili

load at the generally range of ports. Some vessels will, in addition, load in China

and Sarawak.

Trackwork For

Mombasa Harbour

Game

THE trackwork department

Plans are now under way to

and civil co-ordinate military nie operatoris around Stock- holm and other big airports.

to Triste and Palermo.

대

Vs CONTINENT

·U.S. SEES RISK TO NATO

Support For Britain

Washington, Nov. 4. The United States will give stronger support, both pubilely and behind the scenes, to 'Britain's proposal for a Free Trade Area, American officials indicate. For Both a months Britain has been trying to persunde Mr Dulles, Secretary of State, to exert American influence to that end, but without any tangible suc-

ceas.

He has been feeling that agreement among the six European nations on 4 Common Market has been not only ah im. portant economic but also a political step forward, and that ko therefore did Mbi want to misuse the United States by pressing for mere. However, there Is now a greater reallsa- tion here of the danger that the NATO military alliance could economic-

I

nily become

Buoyant Day divided In London

London, Nov. 4,

against itself without a Free Trade Aren. Since Germany is basically It was a buoyant day of ad-

in favour of a Free Trade

vancing prices in stock Area, but does not want markets today and bus!- to put pressure on ness was again en a con- France for fear that It siderable scale. could upset Franco- Sentiment was helped by German relations, Ameri- yesterday's debate in the House

of Common can influence would have ment's economi policies And to be centred on France. the statements made by the To exert pressure on the Chancellor of the Exchequer de Gaulle Government and other officials on the Bri these days is not easy,

'Folly For HK To Reject

Cotton

Proposals'

London, Nov. 5.

Hongkong would have been foolish to reject the British Cotton Board's counter proposals on the voluntary res- triction of cotton textiles, a Financial Times Editorial said today.

مجرا

on this Govern-

tish economic outlook.

Just before the close of busi- ness today nows of the rise in the gold and dollar reserves by 504,000,000, the thirteenth suc- reached ressive monthly rise, the floor of the stock exchange.

Home Affairs

As was natural interest was on home amirs and business confined to industrial equities and gains were quite numerous and in some cases fairly sub- stantinl. Steel and engineering shares were generally faz abd electrical equipments responded to the govertiment's announce- ment of increased state invest- ment.

Gt-edge were out of the picture although the short- dated issues hardened, Trans- Atlantic stocks and

foreign bonds were almost entirely ignored, Although FDIDU con- tinental demand kept the Gør- mah issues firm.

What may not be entirely realised by British Industry la that the Common Market is something for more than ineans of lowering tarist walls; it is primarily a political instru- ment, That is the crux of the matter It is suggested that General de Gaulle is not per- sonally hostile to the notion of a Free Tract Arca, but Huz "The terms of the proposaka

10 It's professed

mistaken approach. In the French Ludustrialists are sabo- which Leshire nude Lo teudoir of securing a normal long tuo Lancashire, will have to taging whatever orders he may | Hongkong huve. nut beet commercial outlet for Common-live in the same trading world on have given about it. French ofcally dextoset, but it Is wealth producera. Protectionist Its Commonwealth competitors industry is united in a phalanx f known that the final Lancashire ection would hit Hongkong (and it may do better to organise ngainst the creation of a Free suggestions were of a generous į particularly Deverely the ita affairs on this basla rother Trade Area and some French nature

colony had lost most of and Hongkong would

its than hope for further protection officials believe It may be now have been foolish ho hve former entrepot trade with from the Government which "too inte" for General de Gaulle, rejected them," ft said.

China and is heavily dependent would be politically Impossible to to Influence their view.

on textiles for both employment | give," the Financial Times con- demand and gained moro and foreign exchange.

cluded.-Router.

The Frenchi reproach the "The Brilish Governinent had British Government with having been under great pressure to take Proponed the creation of a Free official action to enforce or more Trade Area not so much out of stringent limitation of imports desire for any such thing as out than that which has now been

through

would

hostility to the Common) agreed. Market. The Brilish concept

"The Government has of retaining sovereignty over exterior tariffs a fundamentally recognland that a polley of out- Britain and the O.E.E.C. opposed to the French desire for sight protection

integration Therefore propose countries

a political free tradó zone allied to the surrender of economie Over- British officials point Common Market and embracing eignty.

industry will O.E.E.C. countries where out that British

back and tariffs, quelas

and restrletions not be able to si

excluded gooda would be progressively abolished watch British

from Continental countries with - complaining about dis-

For the French, with their out highly protected hothouse crimination. economy, it is already enough to

ners in the

accept competition from part-Maudling's Warning

Conimon Market.

HONGKONG

STOCK EXCHANGE

Our Own Correspondent Business done on the Hong- kong stock Exchange this morn- ing amounted to approximately $241,000. Noon quotations and the morning's transactions were:

Bhar

Balen Buyers Beliers DANKS HIC Etal

145 100 3 2 100 INSURANCES East And

283 INSURANCES Union XD Lumbard SHOPPING Wherinck

XD

111#

1.40 11.00 300 M BAD 5.50

1000 1000

0.40

4435

11.40 11.00 100 11.00

21.30 211 000 6 21.40

Nadar and radio control vill |be put In action during the

DOCKS, ETC. daytime, Erven when weather Duck conditions are good. This, how Provident

ILAND, ETC. ever, means an

enormous per- HK Hotel sonnel ineTVA FO And will fake |îk Land .. 2014 DUET 1000 30**, some time to worle out. Mean-

Humphreys white, airliners will be palpert RUBBER red no that they can be seen Amalg from a greater distance.

Efor Allon & Co During night operationa

Ltd, Shaffield,

havo

ta-

are normally under radio colved an order to supply Judar control-URI.

and "install what is thought

to be the first docksido rail

sections for on African port. LARGE MARINE

The raila oro for berths #1

and 12 at

Monbdan harbour

which handle the large punen DIESEL MOTOR

ger liners.

Two sets of track will be

supplied; one for the docksalde

Tolly

יי.

1.40

DOL A 17.25

情侣

1.70

- 10000 27 1.95

3000 1.10

Trust

1.70

10000

and UTILITIES

Aungala

Tram

2

Yournali

ENF

2314

700

**

17.70 17.00

C: Light

Flectric

Manau E... Tel.

"1

... 23.90 24

23

20

10001

1071 4

Mr Maudling has now given a formal warning that if British forts to create u Free Trade Aren are frustrated British manufacturera and truders will react with considerabia vigour The French retort that a united Europe can hold together only by reason of discrimination be tween its members, and outsiders, the essential conception of any community

ELECTION DAY

There were no mar- ket reports and prices from the United States were 46 all markets closed for

counter

Unemployment

"The risks of intensifying un- employment in a territory so close to the mainland of Com- muust China need hardly bo stated These points have been clearly recognised by the Prime Mhisler, who has been mor reluctant to take any official action to restrict textile imports into this country.

"It is possible that Hongkong's acceptance of the principle of voluntory limitation may have

a

Gold shares were quiet and although selective buying helped a number of issues at one time prices OYN way towards the close. Coppers and other base metals were quietly Arm,

Oils moved erratically and the leaders were mostly lower on balance.

Rubber shares mei a renewed

found.-U.P.1.

Non-Inflationary Expansion Prospects

For UK,

UK, US Good

By SYDNEY 5. CAMPELL

London, Nov. 4.

been necelerated by the French Both London and Wall Street have snapped

Lo 0x decision Election

a severe quota Tenuiction on cotton Imports

Day' throughout the `country yesterday.

Agreed Merchant Rates

from the colony. There have been reports that similar action

out of what must, so far, be rated as

only minor technical reactions.

much

may be contemplated by U.S. A substantial pause or setback could have been and other European prodhuezry, | rationalised 29 а transition from ап In the case Hongkong textil. manufacturers, who ore in any

inflationist upswing to something, case faced with severe Chinese competition in Asian markets.

Dy have preferred to compro mise with Lancashire to secure

Canadian Dollers, Maximum Selling 10% Minimum Buying British Government support. 17 T/T; 17 1/18 O/D.

Belgian Francs, Maximum Selling 850.

West Germon Deutschemarks, Maximum Selling 71 10/16.

Britain is accused of trying to dislocate the six European Powers by working on the desire of the Germana and Dutch for a wider market and there is no doubt in Parts that the British Government arranged

for President Heuss to visit London as part of this design.

British officials negotiating in Question Paris are well aware that inclus teiniless in Germany and Holland would welcome the larger Free

But both Trado Area, officials and the industrialists are up against the almost mystic Induciice which the

French wield over some European political lenders, notably Dr Adenauer, with a dream of o politically united Europe.

Deferred

Ceilings

"An agreement with

on

better.

Consumer Credit

No Choice Leading members of the pre- sent British Government know these almple facts of political Ufe.

Anyway, they had

cholco,

סה

The actual Inflation In the, electorato time at least to for- United States recently has al get, and if possible to reap most certainly been exaggerated, some rewards of the unpleasant- Inflationary sentiment can, and ness, by the time that the to some extent did, affect

the government has to face markets even when it is based electorate again at the next

2 misreading of the generat election. Hong-cronomle facts. kung need not, however, settle Anyway, the United States, the question of Commonwealth Britain and the other Industrial imporla, os arrangements would countries have good prospects of have to be worked out with non-inflationary expansion. Jadia and Pakistan on the basis of the ceilinga agreed in Hong- Geneva, Nov. 4. kong. But it would be surpris-

In Britain the expansionism The Sterling crisis hit them proved a final ob- has been highlighted by the almost unaware in September Continued crlifelem of the Ing it this 10 the United States polley In Its die-stacle

Dia- removal of the Intest restele 1087, just before the mid-point agreement.

in tons on consumer credit and by of their posat of agricultural surpluses appointment may be felt

maximum five-year the final re various other prospective moves term. It needed has resulted in the General Lancashire when

heap of Agrecinct on Tariffs and Trade sult of the prolonged negotia- In the new suselon of Parlia- unpleasant measures. Gradual-

the tions becomes known.

ness in relaxing those measures (Gatt) deelding to place

hire-was question on the brenda of Ita

and is necessitated by the shares ceonornic enaul

and prudence meeling next year, it

by Sterling's position. was learned today-Reuter,

It. It also hurtis but to have been the best electoral taciles, that is just a lucky coincidence for the Government and the Block Exchange,

Another

ment.

Tho relaxation of However understandable such purchase boosted la reaction would be, it would be

COMMODITY PRICES

TOREIGN EXCHANGE

LONDON

Closing rates were:

5 New York

156 7.40.

7.30

1000

· Mantran)

2000

7.30

2006 25.20

Copenhage

osla

Stockholm Vieriha Zurlon

11.70. 11.40

Copenhagen.

INDUSTRIALS Citat crone and the other with points | WHAT la hélieved to be the

STONES, ETC. largest marine diesel motor Datry. 184 185 and switches will run the full length of the bertha and con- In the world has been ordered

Walgor neet up will the East African by a Norweglah shipowner from En Gre

the Burmeliter and Wain naval Railwayo ayatem.

INVESTMENTY Ini, Inv. All the rails are of the tram yards in Copenhagen, t track type which are hid flush disclosed here today.

with the concrete paying, thus

producing no obstruction

The motor in about 20 metres

Allied

***

13.20

4.ID

for long, 12 metres high and equips Exchange Rates

other vehicles. This system is ped with ten vylimacts totallin rapidly paluing mvur through 17,000 horse-pewper.

out the work!,

The first shipment of rall will

Jenve Sheffield

Business way đôno in the longl excitango roarke this morning at the following rebossat

Nora delme. (her 91)

it in destined to equip à 10,000 fot Mombasa ton tanker, built by they the next few weeks, wegian firm of rasender of and the installation will be Stavanger noe, the Bigvai Der- ocmplated by the middle. of reci Whipping, Decaping, we 2009,

us nota COMMA Australian note: CapuraKELING mannewan rupiak (pm (300) ( Biars, thewin (per 100) kuigiowe (u) zaprovec

Frankfurt

hate etiani Red

300-11/10-3.8095 2.72-2.1210

10.6732-10.07% 13055-19.00 1933-1930) 11.00-11.10

1177-117MMA

1223102.23

METALS

Land 1st helf

Copper

Spot

-month

Nov.

Fel

Black Hall

Nov. Fol

Buyers Satiera

2501% 237,

$30

RUBBER

SINGAPORE -

The market opened lightly higher on Improved New York ndvibes and rulia very quiet with narrow fluctuations, No. 1 rubber per lb. Nov, 9011-08:4 Dec. D-EAS No. 3 rubber per lb. Nov. 0-871

| No. 4

03-30 1 Spot rubber inibaled *** Blanket crepe v

17-TD No. 1 palo crepe 011-0335

21

AMSTERDAM

The rubber market was steady today. Quotations unchanged.

LIVERPOOL

Cotton future closings, in Tho rubber, market wan penco per lb. were as follows:

LONDON

quoted at

atendy with spot

25-15/16 pence per lb. Prices;

No: 1 spot. 2316-28

| detifenient Huum tern!

Ded.

Jan./Mar.

++/+ 2471-2011

2015-209

Gewerkt markete, dit varie, patin:

Now,

2016-2011 2-2016 LONDON

Dec. Lend, kind and rợppata waen] Malatyʻorupu 225118. all lenty in the morning | zatkla eripe" Vien

Dev.

American Contract

Out/Nov...

Dre/Jan.

.........

R3.00 23.40

Mar/April

23.15

May/June

27.45

July/Aug

22.00

Del/Nov.

22.00

Mixed Contract

Oct/Nov.

$3.68

IN/RN.

13.30

Mar/April

93.10

May/June

12.13

'The voting, ladies, and gentlemen, da imaD ̧nnanimbus !N.

►

coincidence is that the Government has become motorcar conscious, The two- fold casing of hire-purchase (by the Government's decontrol of the terms, and the banks cutting or the charges) could do a great deal for business and employ- ment in cars and other consumer durables.

Restriction

The restriction on using care for taking voters to the polla in to be removed, too.

As the Prime Minister: Ex- plained, cars · Dro now owned very widely and are no longer a The widening by ownership of such things may showing that Sterling and the make some pollileal slogans out- economy have so strengthened | dated,

the in the past year that

The Treasury han Just report- Government, can afford relaxa-od that the British economy is in dlong which make it popular a better condition than for othe Inslend of unpopulaë restříçions, Į Ume,

concerned. It also strengthened rate luxury. the gilt-otgeil market:

When i government has to do Whatever may have been pleasing things, its boat tactics] peeded u your bgo, rising output. ake to do thers fù a heap. so ka is how the most promfalnyt wie to have the best chance of get-of airéngthening and disinflating ling plenarnier things to dole aut] It further,

oyer a long period.

It wat always a paradox tipt Any government that has ta¦ Innationary (príssura vouílá ba de unpleasant things hizo Uken roduced only 'by restrictions to gut them done in the feat on output, which safually réteg half of its life, so as to give the lumit götu,China Mall Special.

..