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hongkong Telegraph.

VOL. III NO. 184

FRIDAY, AUGUST 6, 1948.

ISRAELI SEEKS PEACE

CONFERENCE

Shertok's Request To Count Bernadotte

ARAB REACTION DOUBTFUL

London, Aug. 5.-The Israeli Government in Tel-Aviv tonight formally called for an Arab-Jewish peace conference on Palestine to end the four-months old war, now tentatively checked in the second United Nations truce.

The invitation came from Mr Moshe Shertok, the Foreign Minister of the Provisional Israeli Government, a Reuter despatch from Tel-Aviv said. No official Arab reaction has, so far, been forthcoming, but in Alexandria tonight a reliable source said the Arab Governments would refuse to discuss the general Palestine situation before a favourable solution of the Arab refugee problem is found.

The Israeli move was announced after a three-hour talk between Mr Sher- tok and Count Bernadotte today. He told the mediator: "I approach you on behalf of the Israeli Provisional Government with the request that you transmit to the bil ligerent powers an invitation to meet the Provisional Government for peace negotia-

tions".

Anti-Inflation

Bill Passed

Washington, Aug. 5.-The Anti- Inflation Bill, Republican substitute for President Truman's price and wage control programme, was passed in the House of Representa Ilves today by 264 votes to 07.

After the meeting, Court Berna- dotte left for Halfa, whence he will return to his headquarters on Rhodes. The mediator hos cancelled an in tended trip to the Red Cross Con- ference in Sweden and will return to Jerusalem on Monday.

The Count discussed the refugios problem with Mr Sherlok today and relief work to ease the situation had begun. the mediator's spokesman caid. He added that no plan had yet been drawn up for the demilitarian- tion of Jerusalem but that the Count was trying to evolve one from his talks with Jewish and Arab leaders.

ISRAELI RESERVATION

It provides for: (1) Restrictions on hire-purchase buying; (2) Tighten- ing of bank credil, but on a smaller scale than the President had pro- posed; (3) Higher Federal Bank On Monday, Mr Sherlok told a Rold reserves, which the Truman press conference In Tel-Aviv that Administratton opposed strongly. even if the current truce had not

The bill Ignores President 'Truman's requests for selective price and wage controls, fur ration- ing powers and excess profits tax.

Some Democrats predicted tonight! that President Truman would vetu St.

continued fighting been broken by between Egyptian and Israeil forces in southern Palestine, an indefinite, prolongation of the cease fire wound be "Intolerable"..

same time, he declared the At the sam Israell reserved the right to lay

State res claim to Jerusalem, and to territory cnplured beyond the borders of the

If so, the bill will need a two- Jewish States as it was laid down in thirds majority from both Houses the United Nations partition scherne before becoming Inw.-Reuter,

last November.

EDITORIAL

The Danube Conference

THE Danube Conference finds

the East and West yet again at varlance, with ihe Soviets doing their utmost to prevent the Western Allies from sharing

In

control of that vlial any European waterway. In fact, there is no sense

in minimising the difficulties in the way of the conference ending successfully, It has started none 100 au- spiciously with considerable wrangling over the question of whether the 1921 Blatute of the Danube remains in force. The view

is widely

hold that the Statule can only be replaced by A new instrument if all thin signatories agree, but Russia. herself not a slzuxtory, doct

not share this opinion.

branches at the Decube Commission, the International Danube Commis sion, above Braila (00 miles from

of the Danube),

of

and

the ropean Danube Commis-

the

sion, below Bralia.

teral existence.

The

arblirarily suppressed In November,

1030,

Bro

still In

economic pressure, by Cominform countries and

may, therefore,

siill try to obtain some degree of real freedom of navigation, Twe recent statements bear somewhat. on this point. One wao a vaque alsertion by a Yugoslav pubilea- tion which stated, “Our Govern- 'ment stands for

the use

the of Danube by ripartan as well as

states, nou-riparian

provided agreements are signed freely and au infringement on our are not rights. The principles of free navigation must be followel hul the interests of the new dc. mocracies must be fully pro- tecled." The other statement came from Mr George

Marchall

who declared, "Free and open navigation

willll th:0 resultant benefits of more abundant trade Is of very real urgency to the people of all Europe in their

dally Ulves. Untit we reach

unse

Indicating further the stand that the Jews might take at any peaco talks, he said also that Arab recognition of Israel as a sovereign State was esscriṭṭal to a settlement of the Palestine war.

Egyptian Circles in Alexandrin; were surprised when they heard that the Israeli Government, had proposed peace talks between Jews and Arabs.

Azzam

Pasha, the Secretary General of the Arab League, when informed of the announcement, said: "I would not like to comment just yet". The Egyptians are tonight starting the three-day Moslem holiday of Bairam, which marks the end of the fasting month of Ramadan, so that no official reaction can be expected at the moment.

BERNADOTTE'S APPEAL / Most observers beilove, however, that the Arab countries will give careful study to the Jewish proposal Possibly a meeting of the Political Committee of the Arab League will there be called, or alternatively be cal

Arab might be a meeting of the rulers.

According to a reliable source in Alexandria, Count Bernadotte has decided to launch an appeal to the whole world to

the help

300,000 Arab refugees from Palestine and The re- secure their return home. turn of those of military age would

ANNOUNCES CABINET

Dino

At the

For

P.G.

Reservations

Tel: 27880

Price 20 Cents

Airliner Not Found

Premier Andre Marie of France (centre, before microphones), a' radical socialist, announced to reporters in Paris the composition of the cabinet he presented to President Auriol. The new cabinet, like its predecessor, contains no Communists. AP Picture.

Disorders In Soviet Zone Of Germany

London, Aug. 5.-Widespread food shortage disorders in the Soviet Zoue of Germany and in- creasing unemployment in the Western sectors of Berlin because of currency exchange difficulties were reported today."

کی

The British official newspaper, Die Welt, quoting "reliable sources in the Soviet Zone," said hunger demon- strations had taken place in many towns. Tho Berlin Social Democrat group, however, said that these reports were "probabl ̧ exaggerated.”

the

the

Writing of unemployment in the give hin concrete answers, Western sectors, because of the Russian official was reported to have Inability of industries to pay their sald. workmen, the Russian-licensed

Up to midday today the answers newspaper assailed the City Ad- ministration for what it called its had not been received at the Krem-

Eastern accept

Russian refusal to

Zone lin

said. Political marks from the Deutsche Notenbank circles-in-Moscow were surprised

at the delay since to keep industry going.

It had been City Council spokesmati assumed that the

three Western lly denied that the Adminis-powers had agreed in detail upon trailon had refused to accept help their plans before requesting the expected Interview with the Soviet Premier, and said that little was

on a Four-Power the Russian officer was reported as before decisions agreement are reached in Moscow. saying.

Supporting the reports of unrest

shortages,

Marshal Vassili Sokolosvky, the French over food

in do-Russian Military Governor in Ger- sector newspaper, Kurter, Zone, said German police had last week, had not yet returned formed emergency squads there to to Berlin. Political circles in close trains from plunder touch with the Soviet Administra- protect food

tion reported tonight there was по ng demonstrators.

indication when he would be turning Reuter.

the

Anyway, She's At Least 110

Saint Wales.

Asaph, North

Aug. 5.--Miss

Isabella Shepherd, aged, 114-or is it 116-was the guest of honour at a birthday party at the

and Emergency

County Hospital, Saint Asaph, to- day and was congratulated by the Lord Lieutenant of Flintshire on behalf of the King and Queen.

Miss Shepherd is not cor- tain how old she is but sho knows she was born in the region of William IV and the pension authorities are. satisfied she is at least 110. Tonight Miss Shepherd, who is able to walk unaid- ed went to see the North Wales Searchlight Tattoo. -Reuter.

be carried out under the supervision

vision patches from Halle, in the Russian many, who left Berlin for Moscow SIAM TO STOP

of international observers, the Count proposed, according to the source.

The

Arab Governments will refuse to discuss the general

Bernadotte

had

H.E. LEAVES

FOR S'PORE

Two-Day Conference

The

have

gement will at least

Generalissino

TC-

Stalin Minis-

Berlin crisla

INFILTRATION

J.

SEARCH GOES ON

Paris, Aug. 5.-An Air Franco official tonight cate gorically denied reports that the missing French flying,boat, Latecoere-631, with 52 people aboard, had been found. "The search centre at Dakar have informed us, that they had nover received giving news of its discovery", ho said,

An

message

An official in the operations room at Merignane. Airport ncar Mar- sellies, which was reported to have picked up the message stating the aircraft was found, told Reuter: "Wo are trying to And out who gave the false Information to tho French nows agency." The report that the plane had been found gave its poal- tion as nearly 120 miles south of a point indicated in the fourth and latest SOS messuge.

unconarmed report from Dakar, West Africa, earlier today, had said the giant Franch flying boat, last five days ago, had been found with all 52 occupants safe.

The Dakar report, relayed by the Air France airport near Marseilles, said the seaplane lay 120

miles south of a point indicated in the fourth and latest 509 incusage which gave 18 degrees North and 38 degrees West. This would place it rather more than half way along Its route from Martinique to Cape Verde, the westernmost point of Africa

the

Air France emphasised that the report should be treated with "ex- treme reservo" aatijan official said: "We hope to have news from the search ships and aircraft at the end of the afternoon".

·

the

SOS MESSAGE An Air France official said latest 80S message was picked up off the Canary Islands at 3.30 0.0 GMT today by the American Coast Guard cutter, Campbell, on its own Tong-Wave frequency."

The position given was west of the spot from which the earlier call, picked up by the French vessel, Leverrier, yesterday was supposed

have been transmitted, The

boat for the flying Bearch fo switched tonight to an area 200 to

to

300 miles northwest of St. Vincent Island in the Cape V

Vorda

group after categorical denials of earlier reports that the plane had been found, Only

Only four ships and nine aircraft remained in the hunt, which Singapore, Aug. 5. The Siamese continued under overcast skies with Defence Ministry has ordered tank tle swells. They scanned the waves

a strong units to Southern Slam to prevent infiltration of Chinese Communist about 500 miles east of the point SOS insurgents from Malaya, the Straits from which the intest radio Times reported from Bangkok today, was believed transmitted early this

|morning.--Reuter. Premier Phibun Songgram also hos ordered the destruction of two secret

WRECKAGE SIGHTED

Marcus

Sandys

confided,

wind and moderate Atlan-

recovered two aircraft seats in the South Atlantic which were presumed to have belonged to the missing French sea plane. A search was being iade for additional wreckage,

The Caost Guard' said that the cutter Campbell radioed that the Beats were found at 3.30 pt m..GMT today about 1,570 miles east of San Juan, Puerto Rico.

The brief message reported also. that an aircraft, presumably from the United States Air Force, 20 minutes later, had sighted" some additional wreckage about 15 mlles southeast of where the Campbell had recovered the seats. The nature of this wreckage was not civen. Router,

Palestine situation before a favour-

CURRENCY UNBLOCKED able solution of this problem is

The Russian authorities in the found, it was added. The Count in-

SEEKING NEW TALKS tends to find that solution before capital have agreed to unblock part the end of August or refer the case of the Eastern mark bank account

London, Aug. 5.--The Moscow en- Administration and Nations Security of the City to the United

voys of Britain, France and the Western sector Arms, a British Council, it said.

United States may make a further unlicensed radio stations in South New York, Aug. 5-The United left spokesman said tonight, "There are Count

approach to Alexandria for Tel-Aviv early to no conditions attached, as far as through the Soviet Foreign

Siam which he believed alded Malaya today that it had sighted and States Coast Guard reported' here day. He discussed the general we know", he added,

thú пре Palestine situation in

fer, M. Vyacheslav Molotov, some insurgents, the dispatch said. "The Russian authorities

Bangkok dlapatches on Wednesday time tomorrow, it was believed in question of Arab refugees with probably agreed to release these

sald 300 armed men had been sent Informed quartera in London to- Azzam Pashu before leaving funds because they do not wish to

night.

to the border area to reinforce police Reuler.

prejudice the Moscow talks". Mr

Was assumed Charles Giffard, Deputy Chief of the

in diplomatie guarding against Communists who British Finance Division, told a presa quarters here that to-day's conver- might try to escape from Malaya.

sations between the Foreign Secre- Associated Press. conference here.

the "As far as we are informed of the tary, Mr Ernest Bevin, and

French and American Ambassadors terms of the ag

agreement between the

secured three-

Death At Age Of 92. City Administration and the Russing in London had

on the next power co-ordination

London, August 6-Michael. Ed- authorities, appear to be satis-

move..

win factory, ho

Sandys, 92-year-old This, it is expected. here, will con- Baron and former member of the for four- London Stock Exchange, died at proposals the life of Berlin to go on lain specifle normally for the time being power negotiations on the problem hia London home on Wednesday.

Until

Lord recently, Under the arrangement, the City of Germany and the Agreement on a new convention this important sphere remains in

His Excellency the Governor, authorities have already withdrawn which should tako, as their start-bonated amazing vigour and on his area In International United States

Sir Alexander Grantham, left 26 million Eastern marks from their ing point, the currency question in birthday last December

blocked account which totalled about the western sectors

(Continued on Page 5) 330 million marks. Fall details by at the Belgrade

BOAC flying-boat this conference has given substance to

morning for Singapore where he the agreement are not yet known, this utterance by demanding that

will take part in official con- but it was understood this was only Danube Bussis releases the

for

the Art Instalment. all nations

ferences. He is accompanied by free navigation by with

qualifications. 110

The Mr Alastair. Todd, Clerk of Hoylet reply is to suggest a new Councils. evention

whereby Central trado ariery would

under exclusive come control of the Communist bloc. with the qualification that the Danubian

countries Vo allowed Immediate supervision over ship movements within their areas. 100

The two proposals bring the Danube issue down ta fundamentals, and the outcome of the conference can be said to rest on the decisión resched over these alternatives. To Western Europe is at compelling Im portance that the Ianabe be freed for international trade, for without resumption of the river's traffic the European Recovery. Programme.can be very seriously hampered.

The

by Ililer representative

former was akitier and accord. Ing to Article 7 of the Danube Statute the powers' of the Intier Cease only by an International arrangement by the Commis. alon states. But Russia has not Tot allowed the revival of either the International Danube misalon or the European Danube Commission. Thus the Soviet, this time in the forra of Mr Vishinsky, continues her obstruc- tive tactics. At

time Alone

States,

Europe's 1,000-mile Com-

was felt that the Tito-Cominform trouble, which

which is still between the Communal parties than between materially

alect the Danuba negotiations, but so far this has not been apparent. It seems un- likely that either Belgrade or

witt contemplate Мовсо

breach at this stage. the Western especially with Powers ns close spectators, Ол the other hand, it is fast possible thai -- the Tugbalavs · may fear

open

an

own

Bir Alexander will return to Hongkong next Monday,

Sopore, Aug. 6. Top ranking British officials from Southeast Asian possessions are being called

of

not, however, be able to with-

It is only a few years since I gave up boxing."-Associated Press.

Wants Henry Wallace Investigated

overthrow of

the

these

It is understood the Iussians also to a complete unfreezing of agreed the blocked Eastern mark account of

Washington, Aug. 5.--Repre- poenaed to "And out why

"As chairman ``of'a special sub- Westors sector recte i sentativo John Rankin (De Communists, who were plotting the committee of this committee, I can

Government, reveni that at the will

mocrat) proposed today that were placed in key positions in his atomic research. In 1943 of

two ship investigators call America's Department at a time when

our menta of uranium compound were "Third Party" Presidential can young men were fighting and dring made to Russia after tremendous on every battlefront In the world didate, Mr. Hoary Wallace, for for the protection of this country pressure on all phases of our Go-

vernment - from Mr Wallace was appointed Secre- agents and others who had worked questioning about the "placing

in 1045. President tance," he said.

reform ordinarice.

draw their full deposits since these withdrawals are limited for the time being by a second Russian emergency Bir Giffard declined to term the Russian. concession a withdrawal "It does not materially alter their of Communists in key positions" trys velt

of Commerce by President themselves into positions of impor a major topics will discuss bargaining position at Moscow", he in the Department of Com-

bo

here for a conference tomorrow. The revolt in Malaya is expected to

A communiquo the com

sald-Router

merce.

Truman removed him from Cabinet in the autumn of

1940

to the after

The

known

Russian

Colonial Icadors ho

of ARA" Problems Attending the conference will be

QUESTIONS CONCRETE Mr Malcolm MacDonald, Commle-

One shipment was of 100 pounds Mr Rankin said that the House Mr Wallace dlaagroed openly, with and the other of 1,000 pounds, myd sloner-General for the United

Berlin, Aug. A high Soviet dom in Southeast Asin; Sir Alex,

Political officer was reported tonight of Representatives Un-American the Administration's foreign policy: they went from a amall obscura

folu ler Cirantham

German political Activities Committed had received Mr Rankin made his statement alrnald in this country,” he added.

of as Alee Newboult, acting

I sito 'have

Com leaders here today that Starshal testimony that a large number

lls hearings on "charged with being (Burned 1 prepared to ren

alleged Stalin presented the three Western | individuals

Cond- The rub-commitleo alio had es misatoner for

Charles

nist activilles in the Government. tablished almost beyond ques envoys with a list of concrete ques- | Commuriist | spits"! worked in the munist A Clarke, Governor of Sarawak,Mrtions on Germany and Berilh when Department while Mr Wallace was Representative

John

McDowell | tion," Mr McDowell said, thất malp.../ James Caldor, senior Administrator he received them of the Kremlin on Secretary of Commerce.

(Republican) `told the committee ments of heavy water were made to of North Borneo, and Sir Franklin MondAY.ON

He said that these persons were that there was "much more? to the Russia during the warren (Honvy, Gimson, Governor of Singapore. Marshal Stalin asked the envoys to evidently appointed by Mr Wallace Communist story, than has been water is a substance used In atomía Associated Press.

consult their: „Governments and to und, therefore, he should be sub- | brought out,

research) outer

Bl fox Malaya;