1948-05-12 — Page 1

EXTRA RICH NIGHT CREAM

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SOLEAGINIS NAN KANG CO. UNION TDGH

VOL. III NO. 110

For the Proprietor di HONGKONG TELEGRAPHL For Brick on behalf of

SOUTH CHINA MORNING POSE, KAND

The

TODAY'S WEATHER: Moderato SE winds, backing East tonishi; cloudy; light or moderate showers, becoming thundery tonight.

1 p.m. Observatio;s; barometric pressure 1012.3 mbu, 29.69 in; temperature 79,1`deg. Fr: dow polni 07 deg. F; relativo humidity 89; wind direction Easi;/wind forko 18 knots,"

High water; * ft. in, at 11.39 pm. Low water, 4 in. ut 7.25 p.m.

Thongkong Telegraph.

WEDNESDAY, MAY 12, 1948.

U.S.-SOVIET OVERTURES BRING NEW

Police Grill Marketeers

Shanghai, Níny 12.-Five men, suspected of having conducted illegal transactions in Hongkong dollars, were transferred to the District Procurate yesterday after police grilling, It was learned.

They will be formally charged In court shortly.

extensive

Meanwlute, the China Press reports that C. Wang, Manager of the An Wan Company, ons of the 28 organisations ralded by detachments of the Economie Police last Friday. Is still being detained by police authorities.

Wang's company Is'Bald 10 avo maintained have network allegedly dealing in un- Jawful money remittances. It is further alleged that the head- quarters of the organisation is located In

with Hongkong, branchen extending to New York, London, Manila, Swalow and Canton-Reuter.

an

*STERPARADA DE PARALLEL SATURATZ1|17|

Kidnap Chase

In Austria

Vienna. May 11. Soviet troops fired into the United States zone of Austria during a kidnap chase of two Austrian civilians, the American authori- ties disclosed today.

HOPE TO THE WORLD

Official Reserve

Reserve Shown In London And Washington

UNITED STATES MAKES DETAILED REPLY TO MOLOTOV'S STATEMENT

London, May 19.--The Foreign Secretary, Mr Ernest Bovin, to- day received the American and French Ambassadors in London, Mr Lewis H. Douglas, and M. Rene' Massigli, for urgent discussion of M. Molotov's "Yes" to Soviet-United States negotiations for a settle- ment of differences. World relief and renewed hope contrasted with official caution and reserve in London and Washington, Router des- ́patches disclosed.

General Walter Bedell Smith, the American Ambassador to Moscow, who made the approached to the Kremlin, said in Berlin that the Russians had violated confidence by releasing the story. He had left Moscow this morning on "a fishing holiday."

A Foreign Office official made it clear that Britain was not informed of the American move and had not expect

Swiss Radio, typical of general world opinion, called the Moscow dis- closure "great news."

Repercussions from various cen- ires included:

London: While high-level discus-

Military sources in Linz said the sions went on, the Foreign Ofice de- shooting took place when anclined to comment before seeing the Austrian policeman, Ferdinand Neu- full text of the American note to bauer, 27,

and his wife were Russia. abucted near the United States Danube River outpost at Wesenuter, 30 miles north-west of Linz."

The sources who sald their ae count of the incident was

accurate but declined to label it official, em- phosised: "The Soviets did not fire at the American guard nor at the: American guard post. It is thought they fired only frighten the Austrians."

to

The authorities said that last Fri- day at noon the American guard saw two Austrians rowing across the river pursued by Soviet marines another boat. As the Neubauers neared the American shore the Rus- stans returned to their site of the river and began ring at the Aus- Irlans with rifles.

and Soviet notes transmissions.

Moscow: It was understood here that General Bedell Smith

would not return to Washington to report. He left here on his way to France for a holiday arranged before the

Molotov note.

In its European ‡ cussions, And we hope to God

there will* ...

This official view was disclosed while the State Department-for "on the record" purposes-enforces

the strict "No Comment" rule Soviet Foreign Minister's suggestion for "a discussion and settlement of differences, existing between us."

To

Diplomatic quarters saw two rea-

All today's Soviet newspapers son for the official reserve:

I-Arzчicty Iest the Soviet- published the full Tass. the official American talks should delay deel-news agency, report of Lie exchange slons

on the future of Germany, of notes, first disclosed by Moscow and lest American might be at a Radlo last night. tactical disadvantage in the discus- States-European commitments. sions with Russia because of United

2. The projected talks would be the first meeting of world Impor- tance without Britain.

CAUTIOUS OPTIMISM Washington: in

Diplomatic ciretes, optimistic, gave no hint enuilously when or where a meeting might take was assumed the action place. It

Ambassador was of the Moscow ordered by Mr George Marshall, as of State, with President livuded, showed | Szeretnry their identity cards to the guard and Truman's blessing. asked for assistance. They were The State Department issued the directing-Austrian-police-ata full text of General Bedell Smith's statement. New York Radio broad- east the text of both the American

The Neubauers

tion at Wescnufer.

Continued on Page 5)

EDITORIAL

Flight Of Capital

QHANGHAI, with its currency Inflation, prters spiral and generally parlous economic situation, has no

more genuine sympathiser than Hongkong, which watches with the livelies! Interest the eHarts of Shanghai's officials to obtain some onder and stability out of this chaos. The Colony has, in fact, gone further and given practical assistance to

concluding by China

An anti- Customs agres- smuggling and ment the effects of which bring

ces to Hongkong.

no advantages to

It

is now announced, firstly through

and again a Nauking spokesman, yesterday through Mayor K, U. Wu of Shanghal that negotiations

being

conducted

аго

with

The

Hongkong Government for con- clusion of a currency pact to en- force effective control of Chinese currency in this Colony. It is ta

be

noted that the Hongkong Government is completely un- aware of any such negoilation3. either contemplated or la pro- gress; wherefore it would seem that Mayor Tu

Nanking and officials are either dying a kite' Dr are resorting to the desperate of saying anything sa measure long as it helps to atlile criticism of their administration. Assured. ly the Shanghal authorities have reasor to feel alarmed. at, the increasing fight of capital to Hongkong. but that the Colony should be blamed for this move- mont sirikes us as being some- what incongruous. It is true that we enjoy financial and economic stability which naturally atttsels businessmen and Industrialisis. who find themselves

China struggling hopelessly with a 41- rupled economy and a virtually useless currency. but that is no reason why

abould we penalised or expected to make -sacrificeg· that 'will Impair qur own prospertly. I can be ad.

DO

Tho Harao: Dutch observers thought M. Molotov would. burgain for Amerlen lo cease setting up world military und naval bases, abandon Its sponsorship of the Western

Some quarters feared the talks might mean diminished American interest In European recovery,

SWEDES SCEPTICAL

Stockholm

on

all questions on this point, State Department spokesmen refer red

correspondents to President Truman's statement, and added: "We are not prepared to add to this."

Not As Per Schedule

When Venerable Lokanatha, Buddhist missionary priest from Burma, arrived at a lecture club In Los Angeles he was supposed to walk across a carpet of human hair provided by a dozen women because "Venerable is not permitted to walk on ordinary pavement," according to his spokesman. But, permitted or not, Venerable is walking on ordinary pavement here because only one of the women had hair long enough. to spread before him-AP Wirephoto. -

Jerusalem To Be Made Open

City

London, May 11-Jerusalem will be declared an open city tomorrow or Thursday, barring unfore- seen circumstances, the International Red Cross announced in Geneva tonight.

All troops to withdraw from

At the

For

P.G.

Reservations

Tel: 27880

Price 20 Cents

Early Korean Election Results

Seoul, May 11.-Tension has cased and little violence was reported throughout South Korea today after yesterday's first democratic election in the country's history,

People moved about freely and showed great. Interest in the early elections returns displayed оп boards in the streets.

mo-

These results placed five derate Nightwingers of the Hankook Democratic Party ahead in Seoul. Or Syngman Rhee, lender of the National Society for the rapid reall- salon of Korean Independence, was elected unopposed in Seoul, but none of his supporters was ahead th the metropollinn contests..

His supporters were leading how- over in a number of country elec- torates.

LEFTWINGER WINS Independent candidates were most prominent in the preliminary re- turns from country districts.

One of the few final returns In- dicated the "success of a Leftwing

the candidate In

Pusan district. Complett returns are not expected for several days,

Meanwhile, the United Nations Commission in Korqu today pro- tested Bgainst the decision of General Douglas MacArthur, the Supreme Allied Commander int Japan, not to allow the Commission enter Japan to write its report

10

an the Korean elections.

The protest was, cabled to Trygve Lie, the Secretary-General of the United Nations.

Dr

The Commission, expects Dr Lio to make an omelal protest-Reuter.

A Question Of Citizenship

London, May 11.-The Govern ment has asked the Dominionn whether the term "Commonwealth clitzen" would be preferable to "Bullish citizen" when referring to British subjects.

REPLY TO MOLOTOV

States today fasued

Washington, May 11.-The United Union, and reverse some point reply to

a point by M. Molotov, trends of the European ald pro- Soviet Foreign Minister's, statement the ramme, while the United

States suggesting a would want a reduction of some Russian and United States Govern- meeting between the Cominform activities.

The entire city will becoine a security zone for the ments.

The United States said it. did not

protection of non-combatant civilians under the scheme want to indulge in a contest of

to which Britain, the United Nations Commission in words will might be interpreted Jerusalem, and the political and military organisations as "the pot calling the kettle black." of the Jews and Arabs have given favourable consi

The reply was in the form of ad- today welcomed Russia's acceptance Waller Bedell Smith, the

deration, according to the Red Cross announcement. The Swedish press ditional coinments made by General

Speaking of the ambiguity of the... United

term "British" during a debate in of the American' proposals but was States Ambassador

The plan is based on these main | 15 Jewish dead left after the attack the House of Lords today on British to Ulic Soviet conditions: sceptical of the outcome.

Union, to M. Molotov ou

ing Jews had dragged other causual-nationality, the Lord Chancellor, May 9 Paris: The independent Right after the Soviet Foreign

ties away with ropes. Minister the city.

Lord Jowitt said that the peoples The United Nations truce com- of some of the newer Dominions, wing France Soir, described the had replied to the American note. news as "the

most sensational event

mission in Jerusalem tonight op- such as India, Pakistan and Ceylon, In issuing details since the end of the

of Generni and sak Bedell Smith's remarks, the

pealed to the population of the city and some of those who were do- nobody would greet

Sinte

to help save the Holy City. with more Department refrained from making of the International Committee comuniasion, consisting of the Con- lors, like the French in Canada profound joy than the French,

The pendants of "other great parent na- The Independent L'Intransigeant

any comment on the Russian procathisted with the control of the France and

suis-General the United States, and the Dutch In South Africa; shid: "Let us not ask too much. Let between the two countries.

posal for resumption of discussions protective measures

Belglum, asked themight not like to use the term us be content with on easing of the certain

population M. Malotov's note had yet to be

to "help achieve,

"British". K5 situation that, in itself, is enough formally

Earlier, i

rapidly as possible, one of its prin- received by for the world".

"If the word is a stumbling block Department.

the State Jerusalem that the Jewish Agency Sipal objectives-to save the Before

city, to anyone, let us by all means see- There was a sharp drop in gold commitments

specifie In Falestine wanted control of the which is dear to the whole world". If we can and an alternative term adopted or any Tel-Aviv-Jerusalem convoy route as prices

the French Stock Ex- binding comment made, the indica-

such as Commonwealth citizen," change and the black market rate tions are

condition of accepting the plan. that consultations will for the dollar as a result of the news. be held between the Secretary

The Lord Chancellor was asking Jewish Agancy denial. Despite

2 of Red Cross officials in Geneva said Berlin: An official of the Western State. Mr George lcensed Christian Democratic

ale Union President Truman and the Cabinet today that both Arabs and Jews had described the Molotov "yer" to

agreed in principle to accept the General Bedell Smith, referring to plan, and they were confident formal America as "a sign of weakness."

M. Molotov's remarks on the "de-ipproval would be given. Vorwaerts, the newspaper of the

nity velopment of United States bases, Soviet-sponsored

Unity Socialist

MEDIATION APPEAL Party, called it "an alleviation of the policy of encirelement and warlike

is inifted that there amount of idle capital which has come from Shanglial to Hongkong and which has sliglik Inflationary tendencies. On the other hand much of the money .which Shanchal Industrialists are bring- Ing here is being productively Invested In factories and mills which can have nothing but a beneflelal effect on our ecouoniy Employment is created, consumer goods produced, and export trade Increased. It would be folly for Any Government to sacrifice auch real wealth simply because neighbouring city was unable to manage lis affairs well enough to make it unnecessary for caplial to escape clsewhere. It is possible that in due course overtures will be made to Hongkong

conclude an agreement designed to pre- Vent further absorpilon

of

Chinese capital by the Colony; it is also possible that some sort of concession could be made without endangering our commercial and economic equilibrium. But any such agreement must carry quid pro quo conditions. The

pubila would resent another one-sided where Hougkong concedes

past thing and receives nothin

In return. If China desires us to impose restrictions on Chinese currency within Ilongkong, we

have a right to expect some: relaxing of the import restrictions infileted by China on our traders. In half a dozen ways Hongkong has shown it is

prepared to

to ren- nuo to China, der practical assistanuo to but it cannot be expected Indo- finliely to make all the con- cessions without reciproclly. hayor Wu and others have in- dicated what they expect from Hongkong: they are

more

Tikoly to repelyo at

hearing

they now ludicate what they are willing to offer in ro- On that basis nerofialions are conceivable.

turd.

on.

are

any

and

by

Food to go to the population which shall be motor convoys allowed through the fighting lines.

possible.

far AS

was reported

பர

from

A Haganah spokesman la Tel-

world slluation," and a spokesman threats," saldi: "1 can only say that Aviv said today that no approach

to

o an understanding between the big volved aggressivo war." powers."

The Soviet-licensed Nacht Express

HONESTY OF PURPOSE

Reuter.

BOMB FOR EX-COC

London, May 11-Police tonight the Lords to agree to a Bill which people of each self-governing coun- found a bomb containing a high gives effect to the principle that the explosive, probably cellgnite, la a

the British Common- parcel delivered through the posty within carly today at the home of General citizens of their own country and wealth have a particular status as Sir Evelyn Borker, former Ofcer

a common status as members Commanding British troopa

in the Commonwealth. Palestine.

It establishes a common citizen- Ceneral Barker in 1940 was placed ship for the people of the United on the same "death list" as Captain Kingdom and the colonies, and

ed by a posted bomb Inst week oso her British nationality Reuter.

marrying on alien.-Reuter.

of

on,

of the party told Reuter: "We wel- our entire history is a refutation of had been made to any Haganah off- come every step that is likely to lead any suspicion of,a policy which in-į clal to declare Jan an open city. Koy Farran, whose brother was kill-provides that a woman should not The Jalla Emergency Council is reported to have appe

appealed to Britain und the Unlied States to mediate said the American move meant that "The drawing together of the before the Arab port falls under the United States "is fed up with Western European countries", the Jewish control when the British American Ambassador cald in his leave this week, and to have an- The Soviet Union is unmistak-report to the State Department, nounced that the elty would not be ably in favour of a realisation of which paraphrased his comments to defended. the United Nations programme. 11 M. Molotov, "und the support which

cold war,"

is now up to America to show she is was being given to them by the willing to

out carry

President United States, was a direct reflec- Roosevelt's wishes," the paper said. tion of the apprehensions and fears -Rauter.

which had been aroused by the ex- GENERALITIES BARRED pansionist policy of the Union of Washington, May 11 The views Soviet Socialist Republics".

In his report on his conversation expressed by ML Molotov, the Soviet Foreign Minister, In reply to General with M. Molotov, General Bedell the American Am-Smith continued: "I said the United Bedell Smith. bassador. In Moscow, did not pro-States was secure in its honesty of vide sufficient evidence of, willing-purpose with regard to the European

recovery programme. ness for reasonable and specific ne-

Justify Kotiations to

the United "Our people were completely un- States agreeing at present to a able to understand the implications meeting to resolve differences, off-placed on that programme by the clat American sources sald today. Soviet Union.

They insisted that additional over-

(Cautinued on Page 5) tures from Russia would be neces- sary if the hopes for such a meet- ing were to be fulfilled.

“།

with The sources, which spoke authority on United States, polley, declared: "General Bedell Smith made it clear to the Russians that wo are avallabia at any time. the other hand, we are not pre- pared to meet with the Russians on a basis of glittering generalities.

"If the Russians have anything speciile le propose, any construc- tive suggestions, there will be dis-

On

Only a "Drip" will allow a tap

to drip these days

The Water You Can

Save All

The Jews have given the British military authorities an undertaking to renounce any possible plans to use Halfe as a naval- base before the British evacuation is completed at the end of July, Reuter despatches from Halin said.

Italy's First President

Rome, May 11.-Signor Luigi Einaudi, Italy's 76-year- old Budget Director and an economic expert, was tonight elected first President of the Italian Republic. He was elected by a vote of 518 against 320 for Signor Vittorio Orlando, 87-year-old former Prime Minister. Blank votes numbered 28.

The Arab Liberation Army In Damascus tonight claimed that they had cut off nearly 1,000 bow Wad best known economists and a pro- Fresident of the joint session of the Signor Einaudi is one of Europe'a When the votes were counted, the renewed battle at the Bab El Wad roadblock on the Jewish life-iing life writer on economic matters. A Chamber

and the Senate, Signor from Tel-Aviv to Jerusalim.

Liberal, he was Vice-Premier and Glovanni Gronchi, declared: "I pro- An Arab communique vald 4,000 Finance Minister in the Cabinet of claim Signer Luigi Einaudi President Jews were taking part in the battle Signor, Afcide de Gaspert.

of the Italian Republie." and that Arab guns werO shelling The Popular Front and the Italian those cut of.

The whole Chamber rose and op- Social Movement supported Signor Orlando, "Father" of the Constituent plauded. Signor Einaudi, who is ATTACKS BEATEN

The Assembly.

Popular Front ntxo Governor of the Bank of Italy, The communique also reported that two Jewish attacks had been opposition to Signor Einaudi was was absent from both today's ballots, election, -losses

on this famous. economist's and was informed of his beaten off with heavy

in based central Palestino.

enter for seven years, by a telephone call. The communique theories supporting private

ship to his home. State ownership. said "big enemy forces," escorted by prise as opposed armoured cars, had attacked Kneir

theories he hns and Kufrkar villages, west of hesitated to put into practice as far and the, extreme left voted for the Tulkarm,

forced but had been withdraw.

These

not Although both the extreme, right

to as possible as Italy's Budget Minis- veteran, Signor Orlando, they joined ter. He needed 461 votes, a simple in the cheering when the result was The Arab losses were put at one majority on the fourth ballot, and announced. Signor Einaudi had al- killed and four injured.

carlier political circles said, that he ready told the Premier, Signor do Another Jewish"attack / WAS ro would probably not serve unless he | Gasperi, that he would accept the ported in the Kufisaba ares and was ❘ got at least 20 to 30 votes more than Presidency 11 elected, it was under- inlid to have been beaten off with the number, required..

stood.--Reuter,