1948-12-15 — Page 8

B

Gen. Eichelberger On Need Of Jap Defence Corps

DANGER OF COMMUNISM

Washington, Dec. 14.-Lieut-General Robert L. Eichelberger today urged the "Imperative im- portance" of establishing a well-armed. Japanese- manned defence corps for policing purposes.

He told the United Press two possiblo methods would be (1) to arm the present total police force of 125,000 and increase its number to 150,000 and (2) to leave the present forces as it was and to create a brand He said he pre new Constabulary of up to 150,000. ferred the second solution.

In an interview with the United Press, General Eichel- the second berger suld the force he envisaged under alternative would be a national Constabulary for interna- tional protection: He said the force should be held to n maximum of 150,000 and armed with small weapons only. "it they are not well armed, they would be useless," he auld.

He added that when he

total

only

Japan the

125,000 and

polloo

left fores of 10,000 pistols Discussing the necessity of an armed Japanese Constabulary, Geheral Eichelberger said, "The implications to Japan become more omphatic as the Communista sweep southward on

lie Asiatic mainland."

REMOVED A BARRIER

Pacing up and down the

and emphasising his point

SPY

LATEST

RING DISCLOSURE

When the Alites whipped Jupan without-and I stress without the in stolen

THE HONGKONG TELEGRAPH, WEDNESDAY, DECEMBER 15, 1948.

-POCKET. CARTOON

HELTER SKELTER

Mr Hoffman

Was Speaking For Himself

Official Commont On China Statement

--- A Washington, Dec. 14. spokesman for the U.S. State Department said on Tuesday that ECA Administrator Paul G. Hoffman was speaking for himself in suggesting American

aid to China might be continued

If the Chinese Communists win control there.

French Taxation To Go Up By 40%

NOTICE

LANE, CRAWFORD, LIMITED

AN

Notice to Shareholders

Nolles la hereby given that Interim Dividend of One Dollar per share and a Bonus of One. Dollar per share 75,000 014 Shares declared payable

has

tho

on been

15th

December, 1948. free of tax.

Paris, Dec. 14-French tax-

The Share Transfer Boots will payers will be asked to pay be closed from Saturday, 4th nearly 400,000 million francs December 1948 to Wednesday, (about £377,368,190) or 40 per- 15th December 1948. (inclusive) cent more in direct and indirect for the purpose of the prepara Laxes next year. the French tion of Dividend Warrants. Premier, M. Henri Queuille, told the. Finance Commission of the National Assembly today.

The 1949 budget estimates the tax revenue at 1,250.000 million franca (about £1,179,245,233) for the or- dinary budget.

In addition, a special 10 percent Increase on all taxes with an exten 10 percent on the production lex, making a to'al of 20 percent in- crease on this tax, is expected to 135.000 million (about produce

for the reconstruction £127,547,170) and equipment programmes.

The Premier, who is also Finance Minister, told the Commission that this record tux burden would have to be increased sill further if loans million franca totalling 100,000 (about £04,339,022) to be launched next year were not fully subscribed by the end of June.

NO INDISCREET QUESTIONS

He did not reveal the full con- ditions attached 10: the new loans

subscribers

but indicated that Washington, Dec. 14-llouse

would not be asked indiscree! ques- spy Investigators today asserted

Mr Hoffman was quoted as saying tions about their resources. room that an alleged pre-war Com-

Business

fear that an circles on Monday in Shanghul that he br-

stage uf acute Dnancial munist espionage ring, dealing leved aid would be continued folutics Bill shortly be reached.

Government docu- new Chinese Government reprisent difficulties, help of the Communists, we rements, might have obtained ed all the people and preserved The deficit of the French balance moved a barrier. which permitted vital military data on secret Chinse freedoms. The result of that removal la more United States weapons and sent Important than any concessions wa them to Russia. nindo to Russia

nt. Yalta Potsdam. When we defeated Japan. we removed the balance of power in Azla."

the Communists to sweep South.

or

Although General. Eichelberger did not specify what barrier, he re moved, he obviously meant the Japanese Kwantung Army which had occupied Manchuria.

General Elchetediger, whb retires from the Army at the end of the year, said he hudders at tan con scquencos" shout: Jopan succumb to the Communists after the occupy-

rowers how withdrawn. Asked his opinion of the Chinese altuation, General Eichelberger re- plied: "If the Nationalist Govern- ment collapses and China goes Com munist, then the second World War victory in the Pacife was no vic tory."

·DEEPLY, MOVED

whe

of payments for the first 11 months of the year amounts to over 201.000 Press officer Michael J. McDer-million frontes (about £109.622.641). mott toll

reporters Mr Hollman This means that only 65 percent of was speaking "very frankly on one French imports are offset by ex- The House Un-American Activites subject and one subject only." parts.

had obtained This, Mr McDermott said, Committee said it new oral Information" indicating continued aid to China ond parti that an unidentified "witness" had obtained information from the Abercularly continuing aid to abate hun deen, Maryland, proving grounds. ger and suffering The proving ground is a major Army testing ground for all types of guns, shells and ammunition.

the Information

OUTSIDE ORBIT

and

Mr McDermott said Mr Hoffman, however, made it clear that poll Army intelligence said it had no ileal matters were outside his official It orbit

final decisions that knowledge of such information.

to be made at the said it would need specifie informa- would have

when specifle lovel tlon before It could make an accurate White House

situations arose. check.

The State Department, Mr Mc- The Committee said: "We have Dermott said, will itself not in indications

on "hypotho- ho dulge in speculation ' and transmitted hastical possibilities." collected reached Russia. This phase of the

Mr McDermott sald further in res- case involves an individual whom

ponse

to a question that there le no we belleve to be still in the employ reason to believe American represen of the Government."

tatives in Nanking are pressing to Generalissimo Chiang Kai-shek form a coalition government with the Communists.

WARTIME ESPIONAGE

*

The acting Committee chairman, Representativo Karl Mundt, said the evidence obtained by the Committee had led to believe that Communisi espionage activities had continued through the war when Russlu was an ally.

Ho said he believes reports that those representatives are trying to

a coalition: force

-are false, Before he left on his current inspection trip to China, Mr Hoff man falked with Under-Secretary of State, Mr Robert A. Lovelt.

Mr McDermott suld that what Mr Hoffman, the Ecenomle Co-operation Administrator, had said in Shangha! was not cleared specifically with the department in advance.

He declined to comment on what might or should be done to help bolster the tottering Chiang renme Asked to comment on reports that the United States Government had "written off the Chiong Government, General Eichelberger replied: "I can-

The Committée feels there is still not comment en thaftübject: That

an espionage ring operating in is a question of national policy and i

the evidence have nothing to do with national po Washington. Russia. lley. I have only carried out orders."ndicales, did it while she was an ally and certainly she would step General Eichelberger appeared it up in times like this, particularly deeply moved by the implications since we have done nothing to of the continued Red successes in check it," Ching. He said: "I have lost my international. Altruism. Izi the the Committee's beliefs. He said election campaign last spring ho Pacifle we have some other friends the "tragic aspect" of Soviet spy had said that if Haly went Com- whose interests correspond to our activities was that Russian agents munist there would be no further With them we should work for our

"have been alded; and abetted by economic ald from the United Aus meials and employees in our own Stay did stick common good." He named

Mr. McDermott's only reply tralia, Canada and the Philippines as Government"

WAS, examples of friends.

M- Mundt made the statement in that one. didn't my neck out on The Chinens Matist Govern-

We are

10

"Sinco

committed establish democracy in Japan and since wo, disarmed them at the troyed every weapon except platels, then we assumed the role of guardian with a guardian's res ponsibility."

Mr Mundt did not give reporters | any concrete evidence to back up

the Committee's summary

-STUCK-HIS-NECK OUT_

Mr McDermott was reminded by reporter that during the Italian.

to refused to discuss how a well. Grand and Jury failed to return in- led an increase of less than $235,000

10

from the

releasing of its progress to date in the ment has withdrawn all but less Whittaker Chambers-Alger Hiss than $5,000,000 from the $125,000,000 "Pumpking Papers Red spy con- which Congress voted for military

The Committee said it ald to China. intended to track dowit "ali guilty

The latest tabulation showed the parties" involved in the

the case, no

treasury had paid out $117,372,809. matter what the New York Federal

Jury did. And, it added, If through last Friday. The total show-

preceding week. the Attorney General

Mr. McD

said the

United dictments,

China policy (Tom Clark) should assign the FBI to the case and give it free rein. It remained unchanged. raid it bad "full

confidence" the

He said his remarks had no bear- FRI could

crack the case under ing on the conference President Tru- such conditions. It said also: "This man had last Friday with Madame caso comprises one of the most Chiang Kai-shek. Mr MacDermott serious, if not the most serions, ter taid he did not know. what the

Generalissimo's wife proposed of espionage."

what sho was told.

armed police force should be used.the But he added, smilingly, "Just si down and think a while of Japan's topography and economy and draw your own conclusions."

A GREAT PRIZE-

In a speech in Chicago on Octo- bur 20. General Elchelberger had told the National Safety Council, "One can appreciate what a great prize Japan would be to the Com munistle nations if they were per mmitted to gain possession. But to the United

Statca,

the

Conada Lho

Stoles

ог

ANOTHER APPEAL Meanwhile, the Chinese Control Yuan appealed to the United States House of Representatives speaker for increased Mr Joseph United States aid in China's fight against the Communists,

The message from the group, which

oversees the government ex-

STRIKE TO GO ON London, Dec. 14-Strikers at the Funippines and Australis it would London maintine terminus of Euston World War decided today to continue their strike and potential defeat in the Pacific which is delaying the despatch of In any future war that might be many train loads of parceta. The do not like to men also decided to seek the active forced upon us. think of Japan as an ally in war, support of other London stations. although that might well be pos The - London Midland region of the penditures, was sent to Mr Martin sible. I would like, rather, to think hallway. Executive informed the at his office by the Chinese Ambas- that we have built up, a great reser-men yesterday that if they did not 'rador,

voir of friendship and respect, which would act as a deterrent. 16 then who entertain no desire to light on two fronts."-Uoiled Press,

.945

return to work today they would

ador, Mr Wellington Kao,

made no comment in

Mr. Marthe message which

be dismissed but by midday only 53 making

of the strikers had returned, leaving omitted any suggestions

over 400 still on strike, Reuter.

amount or type of ald,

05 0

10

the

war

The Yuan referred to the against the Chinese Red. armlos

stupendous

crusade." "It China should

unfortunately be conquered," tho Yuan told Mr Martin, the Far East-will be Sovietised and so would Asin and Europe. Even the Americas might nol bo sectire."-Associated Press

Occupation Costs

London, Dec. 14. The occupation of the British Zone of Germany cost Britain £537million from the 'end of the hostilities to March 31 this year,

Chancellor of the Exclie

quer,

ford Cripps, said-in M

reply Noday This nominal valdo of British fo parations receipts in the period up to the end of last July was £30.400

Reuter

The

National Assembly is ex- pected to begin discussing the bud get on Monday,

Dividend Warrants bo issued at the Registered Office af the Company, 1st Floor, Exchange Bullding,

Hong Kong between 9 am and 5 p.m. On Wednesday, 16th December 1948.

PEAT, MARWICK, MITCHELL &

COMPANY, Secretarica.

22nd November, 1948.

NOTICE

HARBOUR VIEW HOTEL

CHANGE OF TELEPHONE NUMBER

Please note that Telephono

whi Number 59123 (3 main lines) # from

our

new be

16th December 1949.

PRESS PHOTOGRAPHS

Expenditures will include a civil expenditure of 750 miliard francs, civil reconstruction and equipment (including schools and other Gov-

Copies of photographs takon 150 milliards, ernment buildings)

350 milliards. military estimates

by the South China Morning The expenditures will be covered by

will Post and Hong Kong Telegraph normal receipts, which probably be increased by fiscal re-

to simplify

Staff Photographers aro on view and form measures tighten up the tax collection. These

in the measures are tabled as an annex the budget-Reuler.

REMOVING OFFICE

Manila, Dec. 14The Cabinet to- day approved moving UNESCO East Asia Scientific Co-operation office from Nanking to Manila 09 quesied at UNESC Dalian Huxley, bead

The main function of this office is to co-ordinate scientifle research in the Far East and serve as an in- the United formation bureau of Nations on selen matters.---- United Press...

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