1949-05-26 — Page 1

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ke Cold

For the Yoprietor of

HONGKONG TELEGRAPIN For and on behalf of Bank

SOUTH CHINA MORNING POST, LIIM

The

TODAY'S = WEATHER: Moderate southeasterly winds, Mainty fair, some showers. AQAN A

Noon Observations: Parmetrio pressure, 1011.5 mbs., 29.87 in. Temperature, $7.3 deg. F. Dew point, 27 der. F. Relativo humidity, 7, Wind: direction, SE. Wind force, 7 knots.

Low, watert 1 ft. 0 in. at 4.p...

at 10.15 p.m.

High water: 4 EL. 8 In.

Hongkong Telegraph

VOL. IV. NO. 122

THURSDAY, MAY 26, 1949.

NEW S'HAI DRAMA DEVELOPING

Coming Soon

Western Powers Tank Troops

Condition For A New Germany

Paris, May 25.-The three› Western Foreign Ministers at today's four-hour meeting demanded the political unification of Germany as a condition for economic unity in the Reich, according to French sources.

AMAZING

HIGH SEAS

EPISODE

3

Halla, May 26-8even young Jown are feared lost after high seas drama in which

the caplain of

Israel-bound schooner drew a gun and forced his 80 immigrant passengers to strip and jump into the water.

An official police statement, describing the incident tonight, -sold that 23 had been saved after being in the water for 48 hours.

The British, American and French Ministers took this stand in replying to the Soviet Foreign Minister, Mr Vyshinsky's reiterated denunciation of the current trizonal organisation.

Mr Vyshinsky insisted upon a re-establishment

of the four- power Alllod Control Council which has not been functioning for almost a year.

The West maintains that It was rendered useless by Soviet veloep,

Why not make and more, at- tempt, said Mr Vyshinsky as

oled by American sources whe to re-establish the Allied Con- attended the Ministers' meeting, trol Council if the three power cess? council has been such a suc

He was referring to replies given on Tuesday by Western Ministers that the Potsdam ac cord Allied Control today had been first set up the disastrous for Germany.

which

London, May 25-The Brat British tank troope ever to serve In China will leave for Hongkong in the troopably Dilwara on Wednesday.

They are men of D Squadron, Third

Royal Tank Regiment, now at Bovington Camp.

Contingenis of Britain's 27th Anti-Aircraft Regi- ment, will accompany the 27th Infantry

Brigade to

reinforce the Hongkong garrison next month, the War Office announced to- day-Reuter.

Commons

Asking

Still

About Hongkong

25-Mr.

London, May Leonard Gammans, Conser vative, asked in Parliament today whether there was any suspicion that the mur der of two police inspectors in Hongkong on May 6 was Communist-inspired.

Tho

no

Nationalists

Try Desperately To Escape

A WOOSUNG "DUNKIRK”

Shanghai, May 26.-The battle of Shanghai roared toward climax on Wednesday night on the road to Woosung, where the fleeing garrison is fighting to escape by sea. Violent Communist cannonad- ing, turned on Woosung fortress and its approaches to cut off retreat, shook this great Chinese city throughout its first night under the Red. banner.

The whole horizon to the North burst into flame. The beaten Nationalists were believed to be blowing up fuel, bomb and ammuni- tion dumps in their withdrawal through the Red barrage.

Mortar fire and the hammer of machineguns echoed through downtown Shanghai. Communist mop-up squads strove to dislodge stubborn rearguards who held Shanghai's Soochow Creek bridges covering the garrison's retreat.

All communications were cut off to Woosung, 10 miles North of Shanghai. It was impossible to tell if the Nationalists were making good on this Oriental "Dunkirke".

were 838cm

Dine

At the

For

P.G.

Roservations

Price 20 Centa

DR RALPH BUNCHE

Dr Bunche

Rejects Govt. Job

Tel: 27880

U.S. Wants Britain To Forfeit Jap

Reparations

Washington, May 25. The British and Australian Governments were reported. ly in consultation on the United States plan to aban- don reparations and lift all controls from Japanese non- military industry...

Britain has told the State Department that this matter will need a careful study by the British Cabinet and involve a high polldy decision. Consequently it is expected that

It

will take some time before Britain and Australia will give definite answers,

The British will consider the effect of a free rein to the Japanese textile industry on British textile exports. Britain and Australia intend to consider Jointly whether any limitations ins to the size and speed of thố Japancae merchant marino uro advisable.

WILL SEEK PROOF

·British and Australian officials think that it all controls aro lifted from Japanese shipbuild-. Washington, May 25-dustries it will deal a blow to ing and merchant marine in- Dr. Ralph Bunchie, acting United States shipping which United Nations mediator carries all rellot shipments to for Palestine, today turned tralian governments pro

Japan. The British and Aus- down an offer by President expected to ask the United Truman to be an assistant States for proof that any surplus Secretary of State.

Industry In Japan will not be available for war potential.

ол

thơ

niko

Officials said today that the United States opposes setting thy limits whatsoever on peata- time industry in Japan and also belleves the matter of Japaneso completely by the victorious reparations should be dropped Allies.

In the middle of the trip for which each Jew had paid him $200-the captain said that he could not continue as he had no landing papers. He told statement from the US Secre

Mr Vyshinsky challenged the the men that they would havetary of State, Mr Dean Acheon. something such as happened in "Ig this the beginning of to jump into the water and that the new West German Malaya about a year ago?!?-ho make for Israel ma best they .could.

state Was B Democratic regime, He threw in the aca about 30 The Soviet Minister said thai sked

All Tuesday night, thousands trapped. Nationalist. prisoners slege. Then swaggering No-

The negrO, atatesman tolo wooden barrels tied together to the suggestion to extend the

of Nationalist soldiers, trucks being marched to stockades tionalist soldiers took a Roman newsmen after his White House make a raft and one small boat Bonn constitution to all Ger- State for the Colantes, Mr David Woosung,

Under Secretary of and guns rolled North toward tramped through the streets holiday in the city's big hotels, call that Бе holding five.

many was simply an attempt on Rees-Williams, replied: "I am

A large number of most of the night.

was highty stores, homes and restaurants. honoured by the Nationalist At Brst the Jews refused to the part of the Western Powers informed that there

ships

President's Many Communist troops, dog The Nationalists mixed fight-offer but could not see his way bled there, waiting to take them tled from the heavy fighting at ing jump. The

over all Germany-ovidence of that. It was a bandit off. captain and his to take

with looting. Associated Press.

Shanghai clear to taking the job. crew of five drew their guns.

roid

Shanghat's and had no

outskirts, sprawled citizens came to dread the pros- President accompanied by the

Dr Bunche called After the garrison left the in doorways and on sidewalks pect of political The Jews begged the captain to

significance."

Communists came.

long siege. Whatever walt un nightfall and then

and went to sleep.

their The Communist troops, battle-

attitude toward Com-cting Secretary of Stato, Mir Asked what was being done wise

Communist discipline was munisi there is

no question ames Webb. and efficient, lost no time Arm. to provide temporary air-strips occupying all major positions. There was no looting.

For these reasons the Ameri- was molested. they were weary

of the Na-

Dr Bunche zald he told the Sir: pore,

can representative on the 11-1 May

In Hongkong or the New Terri-in

tionalists.

President he wants to continue nation Far Eastern Commission scamen walked off the Cable

they forles, Mr Geoffrey de Freitas, they ran into trouble when they Shanghai's Inst days under the the Soochew Creek district, this UN Trusteeship Council and introduce proposals that the

the centre of the city but All this is in contrast to Away from the Bund and his post as director of the "within the near future" Wireless Company's cableship

& Under-Secretory of State for tried to move Into the Northern retriever after a wages dispute ir sald the Air Commander-district.

sprawling city seemed 'peace-that he did not feel he couldcration of Industrial levels uld FEC discontinue any further con- today, thus delaying her depar that the airfield facilliles were bund, ture to repair a cable between

In-Chief, Far East, had reported

ful. When they appeared on the

The

reason, of course, was afford to take a pay cut. Dr the absence of Shanghai's usual Bunche maker US$14,000 yearly Shanghal's

or reparations. adequate for the

famous aircraft at waterfront, unexpected Nation

Incredible tramo jam,

with the UN on a tax-free

The United States also will present based there.

Cars, pedicabs and rickshawe basis. His salary as assistant ask the commission to amend alist.gunfire drove them to.

slayed at-home. Most business secretary would be $10,000 sub-any of its interim decisions on the Minister was satisfied that

When Mr Gammans asked it cover.

houses were closed.' Shanghal ject to inxation. They found upon moving up

Japanese Industry which might commercial district was at П

conflict with the American view more modern

to Soochow Creek, which flows aircraft than those already sent could land Into the Whangpoo after bisect- on the present airfield Mr de ing the city, that a few hun- Frelias said that it would not

dreds determined Nationalist

try and approach the coast. WALK OFF SHIP

But the captain forced them in- to the water.

The boat meant for five was loaded with 17 persons. The other 13 were on the barrel

Soon the barrels broke loose

and only six-with men hang- ing on desperately-were made fast to the boat.

the Far East and Brilain.

The ship had had an import. ant call to mend the malo When the boat was seen from Penang-Colombo undersea cable,

const Israel marine police-Reuter, the arrived on the scene, took the

survivors afore, and went u search of the

Lisbon, May 25-Two persons seven men were killed today when a Por- barrels, which had floated off.

The police statement did not at Golega, Ono was killed on tuguese milliary plane crashed say whether

the seven save:l-Reuter,

were the spot and the other died later

of injuries-Reuter.

EDITORIAL

indicate any further steps which be in the national interest to rearguards held the bridges, might be taken to strengthen

THE THREE BRIDGES the air defences-Reuter.

Now. Comes The Big Test

THE Inevitable has happened, and Shanghai, richest prize in all Chino,

were

- has now fallen under the domination of the Chinese Communlate. If the climax was longer in being reached than many expected, few

misled by the propaganda pronouncements that Shang hai's defences were even more impregn- able than those of Stalingrad, and that the city would be defended to the bitter end." It is reasonably, fair to believo that the much-vaunted sanguinary battles for the auler defences of Shanghai were in reality but token" - engagements and rearguard actions to permit the with, drawal of the bulk of the Nationalist forces to their only remaining escapo route, The Nationallats adroitly bulli up a facade of resistance designed to fulfil the dual purpose of saving "face" and permitting the city to

be taken over peacefully. In this respect they achieved at least partial, success. But Shanghal's dificultlas have not disappeared, with the arrival of the Communists: on the contrary some problems nssumo new, complications. One of the biggest tasks' confronting the Reds is the feeding of Shanghai's millions; another, is to main- *Cain light and power services. Food wil be the Communists' principal preoccupa- flon. Six shiploads of ECA rice were. scheduled to be delivered to Shanghai, but three of them have already been' diverted to Talwan and the others reninin for the time being in Hongkong." The loss. of this precious stable food commodity must add grave administrative burdena

p the Iteds in Shanghai, for if the masses"

deprived of their rice, they are going Mediealt to control. And whether

prepared to permit its rics and.

other goods to enter Communist-controlled territory is a question that

has no immediate answer. Likewise, the Com- munist bosses of Shanghai will be needing oil and coal to maintain essential services, and wherever, hitherto, these have been provided under ECA assistance, they are not likely to be any longer available. In seizing Shanghal, the Communists havo brought themselves face to face with the biggest test of their administrativo ability since they first began extending their influence beyond the countryside. Shanghai, the fourth largest city in the world, demands a highly skilled adminis- tration if it is to survive as the main gateway to China's vast interior. At the best of times the task of a new govern«

There are three main bridges on the best routes from down- town Shanghai to the Northern front. All three of these were manned by Nationalist machine- Lunners.

Loft became

No one

The Reds' Terms For Friendship

Hands Off Taiwan

HEAVY EXPENSES

to

•dustry.

Will

10

standstill for the moment,

The UN mediator said he had and not conducive to the fullest NEW ADMINISTRATION one daughter about

enter possible development of Japan- The Communists lost no time college, another In preparatory in taking over the administra-school and a third daughter who

said the United States tion of the city, He added, "I have lived in members of the commission

would start school next autumn, intended to give the other of police, supported by Red sol- Washington and worked here in "reasonable time" to study the diera, moved in.

Other Communists took over the government and. I know American position but would the city hall and began forming what it costs. Because of my not wait too long before in- administration. own situation, I don't find it troducing the proposals designed

without finding myself in very expand their industry to what

Palestine assignment to end as great anancial embarrasament." ever levels necessary to sustain

Dr Bunche, who is a native of self-supporting economy. Detroit, suid he expected his

OPPOSITION · EXPECTED Boon as the Israeli-Syrian arrals. tice was completed. He held Diplomatie observers thought great hope for the UN in deve- the United States action possibly loping a "truly peaceful world." would come within a fortnight.

Unlied Press,

(Continued on Page 5)

A NICE CTB both Chinese and possible to take the position to ensure Japanese capacity to

handship. changeover

шал

London, May 25-Official foreign, published as usual They are the Garden Bridge, indicated that the Chinese however, was taken off the air reports from Nanking today There was no clamp dawn. The American-owned radio station, from where traffle

the bund Communist regime already by moves into northern Shanghai;

Communist orders Chapoo Bridge, & block to the had made known the condi- Foreigners generally were re- West, and Szechwan Bridge, ations whereby it would es

ported to have weathered the block farther on,

tablish diplomatic relations

undue without The rearguards at the bridges with Britain and the United were

supported by machine- gunners on the third floor of the States. 17-storey Broadway Mansions, near, the Garden Bridge, and from the four-storey main post office, two blocks wost. These buildings are on the north bank

the Creek.

apparent

BRITONS ISOLATED they could not take the bridges

Shanghal, May 25.-W. 3. without heavy casualties, the

and Hawkins, British manager

of Reda brought up mortars. They

the Wheelock Marden Com- amashed nearly every window Communists was

A spokesman for the Chinese pany, and his wife were last In the post office, but still the

said to have reported a few days ago to he told the British and American still living in their heme near Nationalists hold out.

Other Nationalist rearguards assadors that the "new the gate of Hung an airport, five near the building, however, people's government" would ailes from the West suburbs.

want equal, status with, foreign seemed to be getting ready to gov

Telephone contact with the governments and the withdrawal elderly couple who have lived retreat.

Some of the Nationalists at warships from China,

of all foreign armed forces and In China for 27 years was out the bridges retreated North, HONGKONG'S POSITION

off last Saturday, and since then. leaving about.10 soldiers to each

there has been no information conditions for of them. But the British Con ero supported In discussion by some armour, but even some rointions with the United States sulate and their friends believed armoured units were withdrawn, and Britain, the Chinese Com- that probably the couple would TRAPPED IN MANSIONS misis also were said to have be safe if they alayed indoors and insisted that both the countries their house was not accidentally Approximately 20 Americans adopt a hands-off policy with re-shelled. 'ardent

and other foreigners were in the gard to Formoso. It was under- Broadway Mansions as the battle stood that they told the British war zone on Saturday.

Bince the area was declared a roared below. them, wore in the Embankment Build-munist policy regarding Hong- their friends belleve that the Others Embassy in Nanking that Com was able to visit their home but ing nearby on the wort

Bulleta, whistled down the

kong would depend entirely couple would be able to take Bund past the American and Formoja.

on British policy, concerning care

of themselves. British consulates, b

A-French correspondent, There even was the cracklo

Nanking report.

reports said the only Roger Pierard, visited them a of small arms fire in the old Embassy was the curfew im- ample supply of food. United restrictions affecting the Briush week ago and said they had on International settlement, down- town.

Here

posed from 11, p.m. to 5 am. Press. PADA METR squads went after small bands being accepted, although the

other Red morus General mail from abroad CONSUL PROTESTS of Nationalists still haled

One British subject, however, van wounded by crossire. British officials in Nanking re-ighting line were in an uncom

The foreigners behind the ported that the were showing willingness

Communists fortable spot, but there seemed co-operate

to to be no immediate danger- with Britsh American commercial and ad-

and Associated Press. ministrative quarters. Reports said all guards had been with- drawn from the British American Embassies.

assuming office would be atupendous with the present chaotic economic, financial and Industrial 'con- dition of Shanghala legacy of the corrupt and inept Nationalist adminis tration the burden is sufficient to cool the enthusiasms of the most Communist. It is conceivable that the administrative problems which will con- front the Communists In Shangbal, and the urgency of their solution, may bring a halt, at least temporarily, to their military activities. Little, or nothing, has been heard during the past few days of the southward drive, and one explana tion may be that the Communists have decided to establish themselves thoroughly and successfully in Shanghai before continuing the military conquest::" of southern China. From the military viewpoint, they have already ilered their most important objective, and they may and Itwise now to: pau

that which they:

bridge. These were

::

building w

In

no one

London, Stay 25-Mr T W only route which appears to be Urquhart, the British Consul

Meanwhile, the zers watched

atched the fighting from Foreign Ofice is studying Ran-vernment Military Commander

tested to the local Chinese Go rooftops

Many

Nationallat troops were mossures dn the Burma-Yun chant vessels to conway, troops. goon ? reports that security against the use of British mer caught by the swift advance of nan border, were being: intens In the Communist frooper into the led to meet the threat of ■ Oghting, Foreign Office spokes

neighbourhood of the cent of Shanghai,

Chinese Communist heurt tog man said in London: mieganter VESA LOW DICKDRd over the Boo-ward Myitkyinay Bordara to w noon SAWY

Thousands of Shame pen is via: Siberia Moharat-In Shanghal; - Has pro-

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