1961-07-26 — Page 1

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LIBRARY, SUPREME

F

ELECTRICAL

THE WEATHER

EQUIPMENT

FERRANTI GILMAN'S

Moderate SW'ly winds. Fair opart from isolated showers. At 1 pm at the Observatory the temp was 86 degroes' F

́and the relative humid 77 par cont.

LATE FINAL

CHINA MAIL 6

No. 38037

Established 1845.

WEDNESDAY, JULY 26, 1961.

Price 20 Centa

JETS. WEEKLY TO

EUROPE

DAILY except Thursdays

PHONE STORI

PAN AMERICAN

Comment Doubles and triples draft calls in the services KENNEDY DEMANDS ACTION

of the

day

ALGERIAN

TALKS

YEAR ago President de

negotiate on the terms under which a vensefire could be arranged in Alkeria and appeared to be holding to the French_proposals_at the abortive Metun confer

his lust word on Algeria's future, French policies then could

be justly criticised as un- realistic.

A Gaulle was refusing to

elice

were 71-

realistic because they re- fused to accept that the rebel nationalist movement's co-operation was indisports- able in establishing a viable. peaceful State whatever its nature.

AB this hus changed. "France," says General de Gaulle "accepts without any condition that the Algerian population shall constitute

entirely

Independent State. For this purpose France in ready to organise free self-determination with the Algerian political ele- ments, and particularly the

rebels

To achieve this, the President

has cut through the cense-. fire obstacle and a not argued the right of the FIN to negotiate virtually on behalf of the Mosten population.

Problems

TT is true that many practical problems have to be solved before the State comes into being.

The object of the Evian talks is to begin trying to solve them by negotiation. Instead the FLN has begged the central "question, für Fralice,

discus by refusing to kuarantees for the Euro- peas population. has also raised ther major obsta ele by challenglug French plan for the Sahara, It was at this stage of the

that the Presi disagreement, th

adjourned the Evian

talks.

Hix reiterated public pronuncements, that "this affair" must be settled this year, make his motives quite clear, He adjourned The talks to force the FLN towards realiurn.

Reinforced

TOW be has reinforced

Nthat action by describing

the alternative to "organic Co-operation,"

This is the regroupment of all.

a kind of

Prezident Kennedy

UNUSUAL

RACE

BRINGS A CHUCKLE

Goodwood, July 25. Thousands of racegoers today witnessed one of the races ever most unusual seen in the colourful four- day asanal Goodwood meeting.

The race. the Bentinck Niaken, was cun and won by a soiltary borse-- Hamanet, owned

by Brigadier Hardy Roberts.

There were originally 47 ontries for the £1,305 race, but one by one they dropped out, until Englly lost interest for many owners when Sir Winston Churchilf's horse, lah Hat, was scratched.

Hamanet's Jockes, bow- ever, dullfully mounted, cantered up the

the race

courie turned past the stands. round and returned for a "walk over" amid cheers and chuckles from the -specialurs. __sy.ho....___included

Queen Elizabeth and

the Duke husband Edinburgh, Reuter,

her

of

$3,000 million RISE IN INTEREST RATES POSSIBLE

boost for armed forces

Washington, July 25, President Kennedy tonight called for a $3,247,000,000 boost in military spend- ing, increasing the Army's strength to 1,000,000 men, doubled and tripled draft calls, and asked for sacrifices by all Americans to meet the Communist challenge at Berlin, South-east Asia and elsewhere.

Mr Kennedy also said he will,

Force's and increase the Air Navy's strength in men, planes, und ships.

Addressing

the nation

by

rudic and television, Mr Kennedy soberly warned of dungers and called for both American and Allled unity.

Mr Kennedy asked for an Ju-

nit a balanced budget for the fiscal year 1983.

The President said that while increased taxes popular, he

never are wus sure every American "wants to pay his fair shure and not leave the burden freedom entirely of defending

en those who bear arms,"

The President's formal

crease in the authorised strength quests, which go to Congress to

of the Army fren 875,000 tomorrow, will be is a brief bud- approximately a million men. get outline rather than a full-

He ordered draft calls to be dress message, doubled and tripled in coming months.

Announced

He made his prepared address

to Americans tonight against a background of world trouble and

How the UK's austerity

moves may affect HK

By A CHINA MAIL REPORTER

Britain's austerity measures announced yesterday by the Chan- cellor of the Exchequer may push up Hongkong's interest rates and may check the indiscriminate flow of Hongkong exports into the UK,

док

fas

"However, the increase in This was learned today by the tlon, said that as a result of the

of austerity measures interest rates Jocal Interest rates may China Mall in the course

the Increase in the UK bank canvassing opinions on the pos- in Hongkong will probably be necessarily be the

rote."

sible effects Britain's austerity increased.

of the increase¦ The extent have on Hong- measures may

cannot be deckled immediately," kong's economy,

Mr B. G. L. Oliphant, Hong-he said. "We have to wait until kong Manager of the Hongkong we have more information from und Shanghal Banking Corpora London.

Kirby criticises

the measures

tension which, he said, had its Britain's new austerity measures are mere cuts

source in Moscow and not Ber-

lin.

He also announced that he will ask Congress for authority

He coupled his milliary build- to call up certain ready reserve

with units and individual reservists. up plans

$207,000,000

afr

A number of air transport boost in proposed civil defence squadrons

national sponding to start on providing und

bomb shelters if war guard tactical air. squadrons will atom be ordered to active duty to comes. give us the airlift capacity and protection we may need."

Mr Kennedy did not call for tax increase to an immediate meet the new military spending because "improved, business outlook-means improved re- venues."

But he said that if necessary he would ask higher taxes next January when he hopes to sub-

TUC CRACKS DOWN ON COMMUNIST UNION MEN

London, July 25.

and savings on the fringe of the balance of payments which will never get the UK out of the vicious cost-and-wages spiral.

This was the cominent mode i this morning by Prof E. S. Kirby, }

His programme, he said, is head of the Economics Depart aimed at avoiding war.

Proposals

ment, University of Hongkong. on Mr Selwyn Lloyd's announce- ment of an increased bank rale,

chase tax, customs duties, and other Lausterity.

1

and excise to present the question in that

There has been a flow of capt- tal from Hongkong to the UK to take advantage of the difference in the rates. but Mr Oliphant ald, "I don't expect any large flight of capital as a result of these measures,”

Mr

Opinion

Oliphant was of opinion that the austerity mea- sure of a 10 per cent murcharge on purchase tax and customs and excise duties "could affect Hongkong's exporte to the UK." "The effect of the mensurts," he went on, "is that it will make it more difficult for UK Imiporters to pay for their im ports-with the result of dis-

ouraging imports and encoura-

ging exports from the UK.

·

Я

LAOS TALKS SUCCESS?

Genova, July 25. The 14-nation Laos conference was ·report- ed to have agreed hero. today on a general un- dertaking to recognise and respect the unity, sovereignty, Indepen dence and neutrality of Laos.

It also agreed on a general undertaking not to violate the peace of Laos, authoritative sources said.--Router.

Forged £6,500 cheque

Melbourne, July 25.

A man has collected £6,500 in cash from a city bank aftor forging_the_signa- ture of Lady Rowell, wite of the formor Chief of the General Staff, Sir Sydney Rowell,

On June 14 he obtained a cheque book on Lady Rowell's: account after forging her olgna- ture on an application form

the

The

One observer, who is in an continuously to the real prob lem of producing and export excellent position to speak on

On June 18 he returned to ing more without cost and trade, said the medsures would

mako the UK Importers the bank, presented a forged prices gotes up in the mettle more careful when im- cheque for £6,500 and was paid proportion, "We seek peace but we

"Until politicians are clear-porting goods from Hongkong in 10 notes.

BEST or anywhere,

Detectives described shall not surrender," Mr Ken-a 10 per cent surcharge on pur-headed and courageous enough

"Although there will be, in forged signatures as the best nedy declared.

measures of way, the UK will not get out of effect, a general rlee in prices they had seen in years.

in the UK of all goods either mado in the UK or Imported, signatures were so good that the-forgeries were not dis- still Hongkong exports will

untli Lady Rowell covered maintain the advantage of the queried the large debit when duty and price differentials she she received her monthly bank has enjoyed under the imperial statement. preference system," he said.

Detectives sald the forger "The measures aim at curb had had to stand in the bank ing the spending spree of UK for 10 minutes while the realdents so that they would be money was brought to him buying from the vault. as the teller more selective when goods, whose prices have all did not have enough money in gone up. The same would apply, his cubicle to cash the cheque. to importere."

China Mail Special.

His proposals added up tỡ of a national short moves

to mobilisation. emergency demonstrate the strength and determination for meeting Rus- slo either at the negotiating · lable ur on the battlefeld.

bank rate

this vicious spiral." "I'm shocked at the mea-Prof Kirby thought that the

the rise in the London sures," Prof Kirby told China Mall. "So the UK has from five to seven per cent may Hongkong's interest fonded off devaluationBut push up devaluation is not the answer rates. in any case. "Britain's real problem has

SURCHARGE

The announced surcharge may push up any duties on also Hongkong exports to the UK by 10 per cent.

"On the whole the austerity measures will dampen import trade, check imports in general, and Improve the balance

Hongkong is also

nf

"The Immediate threat to free men is in West Berlin," not been tackled--namely, Bri- he air. "But that lofted tal needs greater productivity an isolated and industrial efficiency. These not outpost is

costs should rise more than preblent. The threat

should rise. world-wide. Our effort must

"What the Chancellor is do be equally wide and strong is to make cuts and savings and not be obsessed by a on the fringe of the balance of single manufactured crisis.

payments, without tackling the "We face a challenge Ber- crucial wage-and-cost spiral payments. lin," he said. "But there is alev, and the problem of technical affected in many ways because for example, a challenge in modernisation in Britain's basic of her Sterling Link with the South-east Aslu, where the industries. borders are less guarded, the enuniy harder to find, and the donger of communism often less apparent to the local popula- tion."

thuso in Algeria who refuse Trades Union Congress chiefs cracked down to- night on Communist leaders of the Com-

240,000-strong Electrical wald, munist-controlled Trades Union with a tough three-point ulti-is matum.

to be part of Statą destined to chaos" transitional partition while the regrouped Europeans

Moslems are resettled and

งง

in France and the aban donment of the rest of Algeria withdrawal in other words of all French interest in the territory.

a most desperate No country in the world can be an adequate • That Mr Frank Foulkes, substitute for France in the ETU Communist President developing Algoria.

should be invited to resign and fresh election.

The TCC leaders, after a,two- day inquiry following what bg- came khown here as the "ballet rigging" case, stipulated these three conditions for continuati amilation to the TUC

Threat.

Without French trade and aid to submit himself to u

Algeria faces bankruptcy

tund chaos.

RESCIND

The choice between realism, That the Executive council with tangible benents, and should rescind within 10 days

to set unrealism, with only their decision

up sub- handle matters

emotionalism commitless

nationalist satisfied, now rests with the previously the responsibility of FLN.

the general secretory,

That ve Eru leaders, in- cluding Mr Frank axell, the Communist deposed general

FILM CUTS

secretary, should be effectively. barred from holding any office

10MPLAINTS about the Uulon for five years.

C

cineman cutting flima

to suit their own books are

These conditions wit placed before the TUC'&

Keneral

coumeil

OFFSET

оп

UK."

Prof Kirby.further criticised the austerity measures as "at- ways appearing to pick on the weakcat 'member ko a scape- goat,"

"I would say all that he has dono is to put fourpence tobacco and let wages go up "We tace a challenge in ou: aixpence and then try to offset th by reducing minor- items

"For example, in countenancing own hemisphere, and wherever like token garrisons overseas, the move lo gang up against else the freedom of human

and by refusing to increase Hongkong textiles while pt economic aid to developing home, coming out against any In this beings is at stake."

defence buildup, ho

relatively improvement in the pay countries which is "our primary purpose smail anyway." neither

propaganda nor

He said: "My general feol- provocation but preparation." ing is that I don't like this "It war begins," the Pre- green light and red ghi stop sident said, "It will have begun and go' way of dealing with The special sub-committees in Moscow, not Berlin."

Britain's economie problem. referred to in the TUC's ulil-

Mr Kennedy said the freedom malum reduced the authority

uf West Berlin

"not of the THEW anti-Communist

Mr Keneral secretary,

John negotiable."

(Contd. on Pare 3, Col. 4) Byrne-Reuter,

be

never goes, mar

an infe Bottle!

iomorrow

not now. They have cropped for approval anel whil be

up in the Colony in spite of considered by the ETU counell

pubtle dissatisfaction over on Friday,

many years.

Cinema proprietora seem to

have their own rules and cut nt will to nult their own convenienco Irrespective of the public which koops them

in business.

It in time that they paid mors attention to the public's de manda and gavo satisfaction to the audience.

If they are turned down, the

ETU faces expulsion from the TUC. according 10 Industrial sourcer.

The Union's formaer general secretary, Mr Hoxell was de

posed recently After the figh Court found he and four other executive had conspired to rig his election, and managed the Union's affairs "to serve ideals of the Party."

Wa.

for teacher who have long been the worst-treated group

for other whereas increases workers are easily met."

"I cannot feel that all this to "I think that to some extent playing the game' and Britain's it is undermining the coun- reputation in the world for try's position. The only solu- business and social decency may tion is to face up directly and suffer," he concluded.

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