1946-12-04 — Page 1

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Hongkong Telegraph &

VOL. I NO. 57

WEDNESDAY, DECEMBER 4, 1946.

Library,

ECONOMIC MERGER OF BRITISH AND

U.S. ZONES IN JANUARY

EQUAL FINANCIAL RESPONSIBILITY AGREEMENT

JOINT EXPORT-IMPORT AGENCY TO BE SET UP

WASHINGTON, DEC. 3.

THE BRITISH AND AMERICAN ZONES OF GERMANY WILL BE ECONOMICALLY UNIFIED FROM JANUARY, 1947, WITH THE AIM OF ́ ACHIEVING SELF-SUSTAINING. ECONOMY FOR THAT AREA BY THE END OF 1949, THE ANGLO-AMERICAN AGREE- MENT ON THE FUSION. DISCLOSED. TO-DAY,

"The two zones shall be treated as a single area for all economic purposes. Indigenous resources of the area and all the imports into the area, including food, shall be pooled in order to produce a common standard of living," the agreement states.

Britain and the United States have agreed to share the financial responsibility equally and to aim at achieving a unified ration standard of 1,880 calories daily for the normal consumer in both zones. In view of the current world food supply, however, 1,550 calories a day will be maintained.

The agreement establishes a joint export and import agency

to take the initial responsibility Beginning Of End Of

for foreign trade but which will

transfer its functions eventually Economic Troubles

to a German administrative agency for foreign trade.

In Germany

hay

These boys recently left England for Southern Rhodesia, where they will be educated at Fairbridge College for any careers which they may choose, at the expense of the Rhodesian Government, They are the advance party of 700 boys and girls from Britain who are going to settle in that country.

Three-Way Race For Presidency Of France

Paris, Dec. 4.

Communist Plan To Seize North China Revealed

Peiping, Dec. 2.

Britain Not To Recommend Gold Price Increase

me Court

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U.S. Opposes Coercive UNO Measures Against Franco Spain

4

New York, Dec. 4.

The United States is opposed to coercive United Nations' measures against Franco Spain which, it contends, would conceivably lead the world into another war.

Instead, the United Stat es presented a five-point sum- mary of its position on the Spanish question, which looked toward a democratic change in Spain wherein it was hoped. that Generalissimo Franco would be replaced by a freely elected government.

Senator Connally, United States delegate, emphasised be fore the Political Committee of the Assembly, that the United States is opposed to Franco but that the United States does not believe that Spain is at present a threat to peace.

.

by

On companion proposals Poland and White Russin for a com plete diplomatle and economic break with Spain, Senator Connally sald the United States felt such a break would produce no result beyond cutting off the Spanish people from communication with the rest of the world

and thus making worse their present condition

He spoke against a course of ac tion which, he said, would lead to economic and political chaos in

Spain,

Nehru Appeals

Against Use Of Violence

London, Dec. 3. Pandit Jawaharlal Nehru, Congress leader and Vice- President of the Indian Provi-

sional Government, in London to-day declared that Indians must resolve whatever the nature of problems they had to face and that their methods and which could not be pre- vented from degenerating into civil approach should be peaceful and war with serious International com- co-operative, even though they plications und which would array might differ from each other. different Spanish factions against London, Dec. 3. The Communist Party, in an

each other and enlist, in varying de- "We should approach our work in The Chinese Communist Mr Hugh Dalton. the Chun- grees, the support of different mem- a spirit of co-operation and avold eleventh hour split with the Party's overall plan to seize the cellor of the Exchequer, re-bers of the United Nations.

all. Incitements to violent methods," Socialista, nominated veteran whole of North China was dis- jected a suggestion in the House sures against Franco, suggesting that

Norway demanded effective mea-he said, Communist Marcel Cachin for closed in a recent statement by of Commons to-day that heff two-thirds of the United "Unfortunately, we have had President of France's new the Communist North-west Poli- should recommend the Interna- Nations membership affirmed that National Assembly. This in- tical Bureau.

tional Monetary Fund to In- they would support actively a break dicated a breakdown in Party "To overthrow

In relations, then such a break crease the price of gold.

should be ordered as of February 1. negotiations for Socialist support in the bid for leadership of the

asked if, under the Bretton Woods

Col Crosthwaite-Eyre (Cons.) had-Associated Press. fourth Republic's first Govern-

increase in the price of gold had Agreement, the possibility of

ment.

A three-way race for the post was in prospect inter in the day with the nomination by the Radical Socialist Party of Alexandre Verene. Vincent Auriol, Socialist, had been the only cundidate for the Assembly

pre- sidency and it had been understood that the Communists had offered to support him in return for Socialist votes for Communist Maurice Thorez for Premier.

the Government and to establish a China based on Communism" the statement said, "it North-west which occupies one-third vast

necessary to liberate the

of China's territory and serves as an area for co-operation between China and two other democracies."

10

been provided for and 1. In view of tie need for such an increase, would recommend to meet increased cost of production, he

that the Inter- increase be made. national Monetary Fund that such an

Arst

Mr Dalton's reply was: "To the part ‚ answer 'Yes' and to tho second part "No","

To attain this end, the statement revealed. Communist

forces started a northward drive against have Yulin, strategic point in Southern Suiyuan,

This

campaign is designed to crush General Fu Too-yi's forces now defending the north-west. statement further revealed, the third referred to the rise in production When this goal is achieved, the The Conservative member also phuse of the offensive in the North- costs of gold in South Africa which,

he sold, threatened The Socialist National Congress west will begin with complete con- mines unprofitable. He asked if, in had scheduled a meeting later in the trol of the Shensi, Kansu, Ninghsia view of the importance

to Britain to deelde whether

frontier areas as its and the Empire of maintaining gold Suiyuan to back and day Thorez, but members announced ultimate objective.

output, he had taken or proposed to that they were unable to

Once the Communist positions in take, any action commil

with the themselves in advance.

South The Com- the Sitensi and Sulyuan frontier Airican Government to remedy the munists said that the nomination of

situation. Cachin was dictated by a lack of

Thorez, Secretary-General of the Communist Party, would take over the leadership from President of the Council Georges Bidault, who signed with his Ministers Inst Thursday. Thorez would set up an interim Cabinet to serve until the formation of ft permanent government in mid January.

areas are consolidated, the Com- munist sphere of influence will be extended to form a vital base of the Communist regime, the statement concluded-Central News.

to make many

а

Mr Dalton replied: "This is matter for the government of the Union and it is not for me to take any action.-Reuier.

LEWIS CONVICTED ON CONTEMPT CHARGES

The agreement splits German Imports into two categories-1, those Imports required to prevent discuse and unrest, and 2, those Imports

New York, Dec. B. which will be required If the economic state of the area is to re- "The beginning of the end of cover to the extent sumetent to

our economic troubles as far as achieve self-sustaining: economy.

The proceeds of exports will be Germany is concerned," was the collected by the joint export no way Mr Ernest Bevin. British Import"

agency

to help defray the Foreign Secretary, described the cost of imports. The United King-

new Anglo-American merger dom will make available to the agency £7,500,000 in settlement of agreement here to-day.

Mr. Bevin, who was addressing the understanding renched In 1945 for pooling the proceeds of the press conference, said: "The agree exports of the two zones in pro-ment is not in any way directed by portion to the import expenditures antagonim towards

other sheer which shall be credited to the United Government. It was born from | Prlor agreement. States contribution.

necessity and we still hope it will he Proceeds of Exports

possible to brink in the other zones." The

United States will niso He explained

that ihe plan contribute

the аденсу an originated in talks held in Paris to de- estimated £3,500,000 which are the ride what should be done to deal with accumulated proceeds of exports the dilemmau that resulted from the from the United States zone. Both non-fuldtment of the economic clause nations will hiave over their of the Potsdam Agreement respective shares of the sums they This was the clause laying down receive to be used for financial that Germany, under occupation, purchases of essentin! commodities should be treated

Da one econom for German

economy under the unit. Mr Bevin summarised the, ob- agreement for the liquidation of German assets, reached with Sweden Jectives of the plan as follows inst July.

1. To put an end to the dilemma "The

incurred Costa

by the which had arisen out of rival claims Governments for their two zones, of distressed ex-occupied countries before January 1, 1947 and for the Germany and the economic necessity area thereafter shall be recovered of putting order into chaos in Ger from future German exports in the shortest practicable time consistent. To build Industry in Germany

many itselt. with the rebuilding of German-under such control that It would economy on healthy non-aggressive not be aggressive--which would serve lines," the agreement continues.

The two nations agreed on the Europe, the rest of the world, and early establishment of the exchange

Germany itself

Before the Court's decision was value for the mark, the relaxation of

To remove the danger of the

Istanbul, Dec. 4.

made known, Lewis said that after trade barriers, financial reform und standard of living level being per

Two Istanbul

his announcement that the contract manently below

newspapers was ended, the exchange on full technical and buɛi-

'government, "in largest single population in Europe published reports that Marshal violation of the anti-injunction act, Resa communications between Ger-which if perpetuated might treat Joseph Stalin is seriously ill. asked for a restraining order and it

and other countries, The mang agreement stressed: "Normal bust- en the whole of the Western Euro-

was granted nesa channels should be restored ns penn living standards.

The political correspondent of without a toon as possible."

Lewis The agreement also established British

To End Dilemma

normal for the

The Communist bld for Socialist support grew out of the election on November 10. No Party received 1 majority of the Assembly's 618 seats.Associated Press.

Stalin's Health

Mystery

on Tanin, crediting his Information to

Washington, Dec. 3.

t

Franco Note To U.S.

Madrid, Dec. 3.

good deal of violence in India ro cently," declared -Pandit Nehru in the course of an exclusive interview. "We are not going to solve any problem that way," he observed, adding: "Violence breeds violonce and we move around in u' vicious (circle.""

Generalissimo Franco to-day sent n note to the United States, deploring "We have to face a different situa- the terms of the amendment offered tion, not only in India but every to the United Nations and charging where." Pandit Nehru said.

offended Spain. United

This requires an attempt on the part of all of us to co-operate for the tasks ahead, which include not

only achievement of the Independence of India, but also social changes in

Press.

Arabs To Send Open, order to raise the standard of living

Blunt Note To U.S.

Cairo, Dec. 3.

Jumal Husseini, Deputy Chairman of the Palestine Arab Higher Com-. mittee, said to-day the

Palestine League's delegates to the Arab League were awaiting approval of a recommendation to send an open blunt note to the United States on the Palestine problem,

nf the masses and remove many of the burdens they suffer from.

These two objects must be com- mon to all Indians, however much they may differ about ather inatters." added Mr Nehru.

"There is another subject," he observed, that the Joint Commitice

"I am happy to learn of the has passed by a majority a resolu United Nations General Assembly tion which means complete vindica- He said the Palestine delegates on of the cause of Indians in South recommended a note to Washington, in the United Nations."

Africa, This justifles our confidence

couched in open, blunt language, werning that American interests

throughout the Middle East would to express his gratitude, particularly Pandit Nehru sald he would like be seriously endangered If President to the nations which espoused India's Truman and the U.S. Government

Zionists.

persisted in their support of the case and mode, its success possible.

"In particular, I am grateful to Husseini said the delegates last right unanimously approved the re- Union, Ukraine and Poland," he de- France, Mexico, Egypt, the Soviet commendation that the Arab repre-clared. "This decision affects not sentatives at the United Nations in only India, but the world. New York be instructed to submit means that the majority of world for it the note to Washington. He dicated

the Arab belief that the Nations, has set to face against dis- opinion, na represented in the United British decision to allow 1,000 Jewn crimination of race or colour. from those in Cyprus Internment camps to enter Palestine would be tantamount

"This is a vital decision which, if to admission Government agencies tightened eventually nil conservation measures and another would be

Cyprus internees acted upon in future, will remove goods embargo seemed likely if the United Press.

permitted to enter.—one of the mofor clauses of Inter-

national conflict."-Reuter. dispute were not settled soon, Associated Press.

Judge Alan Goldsborough to-day announced that John L. Lewis, United Ming Workers' President, was guilty of contempt of Court for disregarding an order intended to avert the industry-shattering walk-out of 400,000 soft coal miners on November 20.

Lewis completed his defence with- out offering a word of teatimony in rebuttal of the contempt of Court charges,

Maximum Sentence Convicted of both civil and criminal contempt, Lewis faces maximum sentence Imprisonment or

1. one year's a $5,000 fine for notice and criminal contempt plus whatever

punishment

Judgo Goldsborough "this coercing, deems fit for civil contempt, adds

of ignoring,

212 knstan INN YUs "borlative reports," said Stalin's all

ember," United Press,

....

that

MINES EXPLODE UNDER JEEP IN HAIFA

4. To alleviate the burden

Jerusalem, Dec. 3.

simulian- Two mines exploded joint committee in Washington to enabling Germany to make adequate ness is so serious that all high which he was

courly under a jeep at Halfa to- obtain from the appropriate autheri-exports to pay for her own essential ranking Soviet officials and his and addressing the Court, he de- order to take the unusual step of Presa.

The judge deferred the sentence In night, killing a British ser and fies the commodities in short supply minimum importa.

closest friends .now are near him.

rocking the clared, "Your injunction, Sir, I rea discussing penalties

entire elty-United and to determine the source of this supply. The agreement authorised current year, the coat to the British recover from an illness last spring dom of speech, freedom of press, pressing for a heavy fine and gaol

Mr Bovin revealed that during the

The account said Stalin did not of their content rights of free- Government and union counsel. The

pectfully

with both the deprives the miners the joint export-import agency to inxpayer of subsidising the British and that his condition was getting freedom of assembly and freedom sentence in the belief that only a Government was reported to be apen bank accounts in nny countries zone would have been £100.000.000 more and more serious. where is operating and added:

servitude.

"Bi-partite finance committees will

be authorised to accept payment of balances in either delfors or sterling

(Continued on Page 4):

whichever in the judgment of the President Lines Ship

Joint export-import agency, may be better utilised in financing tho essential economic unification of the whole of Germany," and asterted in

Leaves For Hongkong

San Francisco, Dec. 4.

quoted

SIDKY PASHA ILL

end to

the believed that ask a con-

A special United

STOP PRESS

ENGLAND ALL OUT FOR 141

Brisbane, Dec. Brillant sunshine dried the wicket sumciently, this morning. to allow resumption of the Test. England added only 24 runs to their overnight total of 117.for five, the whole alde being dismissed for 241 runs.

The newspaper. Tasvir

Involuntary

body blow, at UMW' . $13,000,000 miners will stand upon these political circles at the Bulgarianonstitutional rights ng "American treasury can force. an capital of Sond' as saying Stalin's fine had taken

Cairo, Dec...4. citizens. dangerous course,

The miners are Jaw-strike. Some observers

States Army despite doctors' efforts.

abiding, God-fearing citizens, and the Governmen! would

Individual scores: Hammond,.32; Calro yesterday Yardley, 20; Gibb, 13; Vace. not Nelther report indicated the nature only asserted their rights as cititinuing Ane of

day the strike lasts. There is no talk morning from Germany with out; Bedser, 0; Wright, 4: extrus, 16.

0,000 a day each plane arrived in an of $200,000 a of the illness.

zens." Prominent persons recently re-

Sentence was deferred til Tues of a ironclive One dating back to unity of the streptomycin, for

Ismail Sidky Pasha, Egypt's Premier second innings, leaving Washbrook

Hutton was out first ball of the turned from Moscow, sold

day,

and when Judgo 'Alan Golds- when the injunction was violated.

The C-in-C in the United States and. Edrich to take score to three Governmenta

secrecy borough decreed that Lewis could go

Producers' Head Resigna surrounds the question of Stalin's

zone of Germany sent the strepto- runs for one wicket} that this agreement shall govern The American President

Mr Edward R. Burke was forced to

mran and an American Army their mutual arrangements for the trans-Pacific passenger liner, Genealth and that it was interesting free till then in the custody of his

that more and more

his $25,000-year pictures of counsel, the American Federation of resign

Job

as doctor economie administration of the area al Melgs, which unlerl

the Forelin Minister, Mr Molotov, Labour general counsel, Joseph Pad President of the Southern Coal pending agreement for the treatment Monday night for Honolulu, Shang- have been appearing in newspapers. way, protested.

Producers' Associations because of Germany as an economic unit or hal, Hongkong and Manila, was the A Moscow dispatch of November Meanwhile, United States coal re-allegedly he advocated an appease until amended by mutual agreement. first big commercial passenger ship 7, which censoru delayed for 12 days, serves have dwindled as thousands ment policy toward Lewis. The It shall be reviewed at yearly inter- to depart since the maritime sirike, anid Stalin was in good health on a mbre were out of work owing to owners accepted his resignation with vals."--Reuter.

-Associated Press.

vacation.Associated Press.

curtallment of allied Industries.

(Continued on Paro 4).

in concluding paragraph: "It is the Intention of the two

Edrich lost his wicket at 13 after to help Sidky Pasha. The he had scored seven runs,Reuter, doctor told the Prime Minister that his orders were to remain, na long as necessary."

Five doctors have described the 'Premier's health ax "critical."-

Associated Press.