1948-06-03 — Page 1

TODAY'S WEATHER) Moderate East winds. Fair.

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Prister and Mods

The

10ich water:: 4 ft. 2-in, at 6.57 p.m.

· 1,39 a.m. (Friday),

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HONGKONG TELEGRAPILS Fore test on

f

FSOUTH CHINA MORNING POST,

Low water 2 ft. 21, at

Hongkong Telegraph

VOL. III NO. 129

THURSDAY, JUNE 3, 1948.

HK Story Chian's New Cease Fire Order Not Yet

Arouses Colonial Office

(Our Own Correspondent) London, June 2.-The Colonink Office took today the unusual. course of commenting on special article appearing in the London Times concerning Hong- 'konig.

“It was apparent Colonial Office officials were considerably alarmed by the adverse comment in London na contained in the article.

The writer mentioned the neces ally of a a modem airport to replace Kai Tak. Criticising the necessity for the British Government to put up the money, the writer omitted to mention the answer to

ver to the House

of Commons question on April 20.

A Colonial Offico spokesman told

Premier

me: His Majesty's Government is Wong Wen-hao. (above), 59, new prepared to make a grant upCanada educated geologist and to £3,000,000 to supplement local. former minister of economic contributions."

affairs, who has become China's Premier.

INDIGNANT DENIAL Furthermore, the writer of the Times article mentioned the feeling

of British residents concerning the

lease expiring in 1907.

The Colonial Onlee indignantly Canton Claim

remarked that the correspondent

was ignorant in his facts. Hongkong Island is held in lease in perpetuity. Kowloon only is leased until 1997.

ngatns! Concluding Its onslaught. the Times writer the

is Colonial Ofice stated that the finni paragraph was "not true." In this paragraph the "Times correspondent stated that the Once insisted that man!- Colonial Office cipal elections be held on a wide franchise against the opinion of the local Hongkong Government and the educaled Chinese residents.

And Sale

Of Warships

Effective

MORE FIGHTING

IN JERUSALEM

Arabs Truce Terms

London, June 2.-An hour before the Security Council met tonight at Lake Success to consider conditions laid down by Jews and Arabs for accep tance of a truce in Palestine, the Arab Legion said the Jews today attacked the Old City of Jerusalem, and that 100 of them were killed by Arab 'shellfire. Despite assertions last night by the Jews and by some Arab leaders that cease-fire orders, in accordance with the Security Council's demands, had gone out of the fronts, military, action was reported from several areas of the Holy Land.

In Jerusalem, Arab Legion' combat troops and irregulars crouched in fighting position around the high battlemented walls of Jerusalem's Old City, today under orders not to fire unless fired on from Jewish positions. But no peace came to Jerusalem 2-They note the Security Council for Jewish mortar shells sailed over has taken into consideration their previous observation that a cease- the Old City walls at 4 h.m, local time today, exploding around Arab Bro should be the only means of positions,

anding a Just solution, long over- dus

Short bursts of machine-gun fire followed.

From Beirut, the Lebanese Prime Minister, Rind El Seih, sald the Arab states, had accepted the Securi- ty Council's cease-fire appeal "In principle" and were now awaiting

2-When

the London, June

Ad- Financial Secretary to the miralty, Mr John Dugdale, reported cf Commons today in the House that China had bought a cruiser and eight launches from Britain, a Mem Landon repeats. this fan't true. ber asked if cart had been paid "Inthe Council's decisions.

THE

view of the cast awed by the "If these decisions serve the Inter TIMES STORY ...

of "Palustitie and the "Aruba London, Vine 2-According to to Chinese Covemment on the Cantonesto

The referens was to the countries, who want to save Fales: day's London Times, a campaign by claim."

against cialm for Indemnity by Britain for fine from the Zionist threat, we will the Chinese Government

when the British order a cease-fire," he said.

anti- Hongkong, based on the demand for damage caused

"Otherwise the war will con the. retrocession of British "rights Consulate was set on fire in

tinue." there, will be intensifed if the Kuo-British demonstrations in Canton. In mintang becomes a "stable" Govern January this year.

ment.

ARABS' CONDITIONS

of the

Consequently, the Arab States are pleased to note the appointment of a mediator by the Security Council who will contact both sides 'in Palestine, if and, when a cease-fre view to becomes operative, with carrying out the mission entrusted to him by the General Assembly.

POLITICAL UNITY

3. The main object of the media- tor's mission is to reach. à peaceful and just solution of the Palestino problem.

United Nations

as well as the

Haganah military policeman und an unidentified Jewish off- cial hold the flag of newly. proclaimed Jewish state

Israel at airport in Haifa.

US To Spend Billions On Defence

of

to the

Washington, June 2-A re- The Arab Governments are cer- cord pencetimo Army-Air Force Mr Dugdale had told Mr Piratin

tain that the mediator, on behalf of Appropriation Bill was passed "Hongkong is vulnerable to a two- (Communist) that since his reply to

A spokesman for the Arab Lead members of the Truce Commission by the House of Representa- fold pressure." the Times' special a former question on March 3 about

in Damascus, meanwhile, declared correspondent in Hongkong wrote.British ships loaned or transferred

that an Arab cease-fire had been appointed by the Security Council tives today and sent "A blockade from the mainland

Chion, there had been further

ordered tentatively in Palestine on April 23, will find that any solu-Senate. with the- Chinese would soon cause its entrepot Trade negotiations

which pending receipt

dões not preserve the Council's tion- 10 wither. It would then be easy Government.

The measure provides $6,500,039,- for a hostile regline across the fron- As a result, the 6,200-ton cruiser approval of the Arab conditions laid political unity of Palestine and take

four-into consideration the will of the 000 for the two Services for the tier to infiltrate and gain control of Aurora and eight harbour defence down by the League for a

majority of its people will have no new fiscal year starting July 1. week truce. motor launches which it was pre- the Chinese labour on which both

The two main conditions demand-chance of BUCCCES. the port and the public services de-ously intended to transfer on loan

4. There a

no doubt, it is with a view to eventual purchases, ed by the Arabs are:

1-Stoppinigration ene Kucmintang has never con- had been bought by the Chinese

of all categories of against the purpose of the cease-fire Jewish

order to open the doors of Palestine, cealed its opinion that British rule Government.

2-Ban on war material imports now held by the Zionists, to permit constitutes an infringement of Chi- MENDIP ON LOAN

& flood

of Jewish immigrants of nese sovereignty.

The 1,000-ton destroyer, Mendip by the Jews.

Travellers

arriving from Jerusa-military age, who are awolting the for a period not exceeding Ave years. When Mrem reported that many Jerusalem first

from different parts of Country as the Kuomintang on the Piratin asked for the prices paid or Jews were now camping among the count Pportunity of entering the Navy and Air Force total $10,190,-

thelon way deserted Arab villages and Jewish Europe and Africa without any ob- the basts on which

settlements along the Jerusalem-ject other than Joining Zionist (Continued on Page 5)

now controlled terrorists. Tel-Aviv, highway by Haganah forces.

This is the greatest menace to the This Jewish "exodus" followed existence of the Palestine Arabs and severe shelling of the Jewish quar- to the maintenance of security, in ters of the city during the fighting the Middle East. -Reuter.

feel Fosco

"A strong Communist regime on the mainland would be quite as in- sistent

retrocession of British rights.

(Continued on Page 5)

EDITORIAL

THE

had been loaned

Vile Accusations

THE Palestine problem-which is the problem of how in the long run

Jews and Arabs

arc going to live and work peaceful- ly slie by side in the same small country is difficulty enough. It is being made far more difficult by the reckless and irresponsible partisanship of people thousands of miles away from that tragic and country and by reckless

propaganda, Irresponsible

One example la the allegations which are being made all over the world that the British Government is supplying the Arab States arms and money and officers to "invade": Palestine and attack

Israel. the Republic of

"Britain," says one United States Senalor,

before the

world Belf stands convicted as the Power beblud the breach of the peace,"

with

That is rhetoric. What are the facta? It is certainly true that Britalst for years past has been supplying arms to Egypt, Iraq and Trans- Jordan: that their armies have

been largely British trained; that of them-Tránsĵurdais—re- une ceives a yearly subsidy from the British Government. What le nat true is that this nasistance has been

that given them in order they can fight the Jowe In Palestine. It has been given them in order to provida the Middle Eastern Area with adequate forces for the

of

defence Its own security. And the vital security of that area is a Interestas surely it was realised between 1940 and 1943--not only of the British Commonwealth but of all veaceful nations. After the first World War Briain herself was responsible for the security of most of the Middle East, There were British armies in Egypt, Iraq and Transjordan, as well as in Palestine. And the armies of

were

been

the

ΟΙ

The House of Representatives is due to debate tomorrow another re- cord peacetime defence money hill

$3,000,233,250 measure nancing the Navy for the next fiscal year.

The funds included for the Army,

072,250.

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At: tho

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The Flag of Israel

Grim Admission By Stafford Cripps

TRADE DEFICIT UNDERESTIMATED

́ ́ London, June 2.—The Chancellor of the Exchequer, Sir Stafford Cripps frankly conceded today that the Government undercatimated its trade deficit for the first six months of 1948 by £73,000,000 -46 percent.

He told a press conference that if the present trade continues, Government, might have to cut further. its imports of food and raw materials. These already.

Cabinet regards have been pared to what the minimum necessary for Britain's recovery.

Ho

toke

WIL

come-

Furthermore, he said, the Gov- "I on balance Import prices con- ernment has abandoned hope of tinue to rise and export prices to lag further and further behind them, balancing. Britain's overall trade by

we shall obviously have to examine our import programmes again." the end of the year unless world prices-fall

Government's attributed

Sir Stafford Cripps said "that difficulties chiefly to rising prices allowing for freight insurance and other considerations, Britain's truo particularly in the United States.

"What notion we shall have to trade deficit for the first four months

to this state of of the year, was probably In relation affairs must depend on the

This is the equivalent of a defeit months," he The House Appropriations Comments of the next few modny, pething less than 100,000,000,

in the of £160,000,000 for the first half of mittee also called a

The governing meeting to said.

factor no doubt. be 1940. Cripps economic BUTVOY morrow morning to draft a measure whole, situation financing the foreign aid programme, American internal price level which Issued less than three months ago powerfully affects the whole world estimated a defcit for the first aix the The debate on

Army-Alc price level in primary commodities months of the year at only £87,- bill lasted less than two

If American prices 000,000, 5. The Arab Governments

and foodstuffs. that the Security Council's alm hours and fewer than 50 Members continue to rise, world prices will

DOLLAR SWITCHES cannot possibly be to allow tha took the floor during the discussion. Lake

HARVEST PROSPECTS

Breaking down the figures, Cripps of the bill's provisions. Security Council agreed tonight to Are by introducing in Palestine more

"On the other hand, there is pro- sald that the Government actually let the United Nations mediator In men who, though entering under the

The budget for $10,190,072,250 had spect of a good world harvest and had switched more purchases from Palestine, Count Folke Bernadotte, muise of immigrants, would, Im

Congress this might have quite an effect upon the dollar to the non-dollar area recommended to been decide when the actual four-week reality, be trained combatants under

had been envisioned in the the second eense-fire should begin.

paragraph of the earlier today by the House Appro- the level of food prices and so upathan

de- the economic other commodities.

survey. Thus Security Council's

ficit with the Western hemisphero mediator had

resolution--that priations Committee-Reuter. Counell for a limited time" br-prohibiting combatants of either

with compared tween the date of acceptance of the side from entering Palestine during

the economia survey estimate of the cease-fire. British sponsored resolution and the

£102,000,000. date of its application. He added DL5

that

of ap- "from the standpoint plication of control this might he some

The

to

these States

themselves under British contrai and com- mand; for Egypt wan a British protectorate, Iraq and Transfor dan were British mandated ter- ritory British polley was relinquish these controls, to give all these countries their Indepen- dence. All three are 110W Independent States. And Brlish troops withdrew and local armies passed out of British control it was plainly Britain's duly to help the States to create, organise and equip their own extent defence forces. The full

tha of so-called "British ald Arab States has, under treaty arrangements, the right for these Slates to buy their military equipment in Beltain, and in the case. of Tranjordan, the services of 30 British offleers and a sub- sidy of £2,000,000 a year. That and nothing more. Moreover, nince the beginning of the Year Britain has prohibited any further nphy et arma to the Middto Bart. Existlus contracts aro beluz

fuÏäiled by Arms which had mando them. There is no lawful around for breaking them. But orders are accepted. Po more Treaty obligations are still being fuifllled, but oven in ibls respect the Drilish Government да bowed to public episton Ind withdrawn 21 officers attached to the Arab Legion in Palestino. And 69 further ovlience oft Britain's determination to do all iruglo she can to resolve the

Palestine alfuation, She bas announced that when both Arabs and Jows effect a truce, arms shipments to the huddle East will be stopped forthwith. It is only too plain that Allegations of Britain encouraging, bloodshed in the Holy Land cannot stand test of investigation.

the

BERNADOTTE TO DECIDE

Success, Juno 2. The Zionists to profit from the cease- which was confined to explanations almost certainty.keep in step.

asked

the

me class respresentative alins

SUPERVISION

---The Arab Governments arc desirous of seeing the appointment to an efficient: impartial body supervise the carrying out of the

Council's Security

decision and conditions relative to the cease-fire with scrupulous care.

7-The Arab Governments do not tomorrow feel that the Security Council's re-

Counell, Mr Aubrey 5. the Security Eban,

complained that the Jewish three cease-fire State hnd Issued orders already, without any similar Detion from the Arab side. The Council will meet to consider what control measures

and solution contains an adequate

supervision the mediator enn

guarantee that the other side will

INCH-BY-INCH BATTLE

WITH FLOOD WATERS

Portland, Oregon, June 2.—Civilian volunteers were late this afternoon fighting an inch-by-inch battle with River sweeping the flood waters of the Columbia

Portland and the down the Clatskania area between Pacific Coast.

taite to ensure the success of the respect the rules and conditions of be less than three inches from the homes were swept away.

Connell's resolution-Reuter.

GUARANTEES NEEDED

was

the

Sir Stafford Cripps said that the estimated trade balances with the sterling area and with the rest of world had been reversed seriously by rising prices. Britain Fold £27,000,000 worth more of Rouds to the rest of the sterling area than it imported but this was £15,-

·000,000 less than estimated.

Britain's trade defielt with the

st of the world totalled £27,000;- whereas the economic survey predleted a surplus of £33,000,-

It was estimated more than 10,000 Com- The swirling river was reported to) the cease-fire order.

dyke tops and to be still rising. The munications were disrupted, trans-900, For that reason, the Arab Govern- 1,000 inhabitants of Clatskania have portation crippled and hundreds of square miles of land was under ments, in their capacity as members been evacuated to pinces of safety us

regional organisation

1 of the danger area.

Although the

ine,

and

crest of the flood passed Portland yesterday, Army engineers still described the situn- on as "critical" in six areas from there to the Pacific.

200

Aircraft and amphibious vehicles were delivering food at Kalama, Washington, Slate.

esli-

DANCER LEVEL

were

Sir Stafford Cripps.conceded that Britain has already run is gold rein meeting its trade defleit end dollar reserves down to danger with dollar countries.

Te said the Government neverthe- teen felt further drawings Justified because Britain would re- enleg game dollars back later. In the form of the European Recovery Pro- Although his economic survey is. Stafford already put of, date, Sir Cripps said that he did not con- template Issuing a new one until. said that there would probably bo alterations the 1948 survey however.

Asked about British press reports that he will go to Canada and the United States soon, Sir Stafford Cripps said: "No such trip has been arranged, but in any case 1 should

Cairo, June 2-The.Arab Governor ments, in their reply to the United responsible for preserving order have the residents of other districts water. Nations Security Council's truco their Grea, ard desirous of co- plan, reiterated that there was need for guarantees in Palestine without operating with the mediator

Truce Commission' in supervising which a cease-fire would be merely

From Vancouver, British Colum- an uneasy Interval leading to wider-the execution of the cease-fire Fules

bla, it was reported that evacuces and conditions, scalo disturbances and further

Arab Goverments, 1.-Tho

from the Fraser Valley were violence.

mated to total at least 9,000 today and The Arab reply,

for anxious to see peace established in released

Along Portland's northern

after the turbulent Fraser River troops and publication in Cairo today, made the Palestine so that a Just solution of

eastern outskirts,

breached the dykes again, this time the problem, presented there may following nine points.

ho found, accept the invitation of the 1.700 civilian volunteers were strug-

the flood-batteredt Cannor, come 55 miles east of for ging to bolster 1-The Arch Governments reat Security Counell to cease-dre.

Vancouver. firm that nothing is nearer to their four weeks as from a time yet to be dykes and to save Portland's airport

were thousand residents hearts desire than the returni

and the big Troutdale aluminium One of dividert. A

evacuated from the area when the 0-The Arab Governments, in ae- plant from Inundation.. peace in Palestine, and to see the day in which Palestine's population testing this Invitation despite the

the dyke. -Arab and Jew alike will

Up the river, the worst was past river ripped a 80-foot wide, hole in next year. He live failure of all previous efforts to amicably side by side. In complete reich n-just solution of the Pales and check was being taken of the

m-devestation and loss of life.

Elsewhere in the province, floods understanding.

ino problem, because of the uncom-

Residents of The Arab Governments reiterato promicing attitude of the Zionists, Twenty persons were known to continued unabated.

Canadian that there is need for guarantees in rive, proof of their sincere desire to have died and an unknown number Trail, just north of the Palestine without which a cense-fire co-operate with the United Nations were unaccounted for at Vanport, United States border, were frantical would merely be en uneasy interval in finding a solution, although their where 50,000 loat their homes and ly boldering dykes and retaining leading to wider-scale disturbances armies are now mastering the situa- the damage runs into millions of walls n the flood waters scoped into wait until I were asiced."United

dollars. and further violence,

tion-Reuter.

the business district.-Reuter.

Press.

in