1949-06-30 — Page 1

Coca-Cola

SimColl

Consul Hands In British Note Today

Cantori Juno 30,-Air John F. Coghill, Britial Embassy representative in Canton, has received the British Government's 'repir to the Chinese announce- ment, closing tlie Com- munist-held ports and is landing it to the Chinese Foreign Office this after- noon.

The contents of the reply are not available at present. Realer understands from fnformed quarters that in contents will be along the linea

in of those forecast London yesterday when it was Implied at Britain would not recognise the Chinese Government's tion-euter.

AC-

Wedemeyer Report May Be Made Public

Washington, June 20.- The Secretary of State, Mr |· Dean · Acheson, told the press he believed the Wede- meyer report would be in- cluded in the "White Paper". which the Department is preparing to make public, giving the background on the United States' attitude toward China. He said the paper was still under study,

was

For the Proprietor of

HONGKONG TELEGRAPH, Ford on behalf of

SOUTH CHINA KORNING FÖST, L'EI),

The

Today's Weather Moderate occasionally fresh 8-8W winds: Partly cloudy, Beatlered brief showers.

in

Noon Observations: Barametrio pressure, 1007,8 mbs, 29,70 Temperature, 84 deg, F. Dew point, 79 der. F. Relative

· humidity, 80%. - Wird direction, GW. Wind force, 9 knoiE.

Low water: 3 ft. 4 in at 5.31 p.m. High water!:4 ft. at 3.3.m. (Friday)

Hongkong Telegraph

VOL. IV NO. 152

THURSDAY, JUNE 30, 1949.

BRITAIN'S DOLLAR CRISIS

Cripps To Consider Compromise Plan

OPTIMISM AT PARIS MEETING

Paris, June 29.-The 19-nation Marshall Aid talks broke up in an optimistic mood after a three-hour meeting here today. They will resume tomorrow to consider a new Belgian.compromise plan on the intra-European payments scheme, members of the Belgian delegation revealed.

The new plan was brought forward by Belgium's caretaker Prime Minister, M. Paul-Henri Spaak, in a move to narrow the gap. between the opposing viewpoints of Britain and Belgium over a new scheme for trading within Western Europe, the delegation members said.

It was learned in 'circles close to the OEEC that Sir Stafford Cripps, the British Chancellor of the Exchequer, had agreed in the last five minutes of the meeting to consider M. Spaak's new com- promise proposal.

The new Belgian compromise plan would apparently eliminate all suggestion at present of convertibility into dollars or drawing rights which - both the Belgians and the Americans originally wanted.

The plan would, on the other there

00 percent. was now a hand, provide for a certain chance

of reaching deflnite transferability of drawing rights, agreement tomorrow. with technical, measures to pre- The British Chancellor's last When the Secretary vent a drain of gold and dollars minute agreement to consider u compromise proposal come as n questioned whether the British from Britain to Belgium. Government was following the

The compromise scheme is not big surprise-particularly since he specch on the lines of the in his opening same polley, toward China's entirely

peech made by Sir Stafford reiterated the position in has closed ports as the United Cripps at the beginning of to- adapted throughout recent weeks

of negotiation. States, he said he thought. the day's meeting.. British had taken a more ex- But Sir Stafford was describ treme position than the U.S..ed by lending delegates from other countries as having been in a very canellatory mood.

They said that he was "quite different man from the rigid Chancellor he was at Brussels last week.

, HC sold he

did not know whether the Department had sent any instructions to United

States shippers regarding the elosing of ports by the Chinese Nationalist government.

Mr Acheson was also asked about the situation relating to possible recognition of the Chinese Communist government but replied that he had sald before that the question had not yet arisen-United Fress.

EDITORIAL

Britain

various worla) Cables. from capitals fold today of the tol-4/ lowing reaction to Britain's gold. and dollar-troubles:

Unitca

Washingtons The States. Secretary of State, M Dean Acheson, sald he hoped a British economic crisis could be. avoided through the combined

of the Western. statesmanship

Powers.

Asked if he believed that the MAIN PREOCCUPATION Observers now thought that United States should, take any action, and what that action the British Government was should be, he said that dis- much more preoccupied with cussion of that point would not Britain's real crisis of gold be helpful at present. losses and fall in dollar carn- Mr John W. Snyder, Secretary ings, and was therefore willing of the United States Treasury. to

compromise on the Europeans expected to meet Sir Stafford One delegate sald that when payments problem to get it out Cripps in London soon for dis- Sir Stafford agreed to discuss of the way. the compromise proposal put It was thought here that for cussion on the crisis, according to the New York Times' forward by M. Spoak, this pro-the sake of a quick settlement diplomalle correspondent. caced a "complete change in the Britain might be willing to hitherto tensa atmosphere."-- accept a small-loss-in-the total- The Secretary-General of the dollar aid she would receive for CLEC, Mr Robert Anriolia, said the second year of the Marshall alter today's meeting he thought Plan

And The Blockade

THE reported decision of the British Government not to recognise the Nationallet blockade of Chinese ports now in Communist hands does little to clarify, a complicated and obscure situation. The Nationalists, with becoming subtlety, refuse 10 URC the word "blockade," although the rights which they reserve in the matter of interfering with foreign shipping inside Chinese territorial waters in fact represent n blockade as understood in international Jaw. Non-recognition is said to be based on the opinion that the blockada cannot be mado effective, and therefore, cannot reality exist. But this makes the in problem no simpler, inasmuch as 'the effectiveness of a blockade can be measured only by the degree of its in- "position: und this, in turn, depends upon what extent. foreign shipping is prepared to Iquore the blockade threat. The position at the moment, so far, as, Shang hat is, concerned, is that the blockade, whether recognised or not, Is effective) Insofar that foreign ships are neither going into nor coming from the port. The Nationalists, therefore, can argue In the case of Shanghal that they have closed the port. The reluctance on the part of British and American shipping companies* to resume contact with Shanghal'; is understandable. Firstly, they wish to know, precisely what is the attitude of their governments to the blockade; secondly they are confronted with sub- stantial: Increases In Insurance." rates which would make trading, a costly business, The explanation of the present Cambiguous altuation appears të”- de-a reluctance on the part of Britain and the United States to take any step which may involve too early: a recognition of the

· Chinese Communist regime, To admif the. Nationalist blockade in effective means? that this catatus of (a) belligerent power "must be accorded the Communfäts, which;

In effect, affords them de facto recognition. The Communists, on their part, have made no move to secure any such recognition from foreign powers, seèmingly adopling the attitude of "let them apply to us for friendship, and we will consider the pro position." On the other hand it would clearly be to the Communists' advantage If they could obtțin de facto recognition: and It would also embarrass the Nationalists, who not only claim to be the Government of Chinn, but who still enjoy de fura recognition by the foreign powers. Non-acceptance of the Nationalist blockade would open up new, and impor. tant considerations. It would mean that British ships must be prepared to sail to. und from Chinese 'ports and, pre. aumably, resist any attempt at inter- ference. It would also test the effective. ness of the blockade, proving beyond doubt whether it exists in fact or arily as threat. Nevertheless, if the British Government expects merchant ships fo provide this fest, It must also be willing to offer adequate pratećtion.: There is an alternativo; it is for the British 'and United States governments to convince the Nationalists, by means of, diplomatic argument, that a blockade cannot be effective, and to obtain from the Nationalists assurances that no.. attempt will be made to apply one. Tho : situation calls for careful handling, but too long, a delay-in coming to a firm decision could be damaging to British and American Interests --In China, and this must, as far as possible, be avoided. It would be most unfortunate to give the blockade the appearance of effectiveness simply because British and American shipping services to Chinese porta have been suspended. Non-recoguliton of the blockade must be accompanied by appropriate action, which is to continue the services as though the situation were normal.

́CUT-IN-IMPORTS

He is also likely to discuSS the world economie situation with. Commonwealth Finance

next month.

The

Attlee Summons

Inner Cabinet

COUNTRY'S INDUSTRIAL DISPUTES CAUSE ALARM

London, June 29.-The

Prime 'Minister,

Mr. Clement. 'Attlee, today summoned his indus trial Inner Cabinet" to consider the threat to communications resulting from the decision of 460,000 railwaymen to launch a “go slow" com- paign at midnight on Sunday..

Mr Attlee discussed the situation with the

Dino

At the

For

P.G.

Reservations

Price 20 Cents

Tel: 27880

The Princess Astrid Settles Down On Sandbank

The cross » Channel steamer Princess As- trid, settles down on a sandbank, after hitting - a mine while crossing from Ostend to Dun- kirk With water up to her bridge, a lifeboat still in. its davits, the ship's flags say, “Want immediate ald."-Lon- don Express Service.

U.S. Has

Sufficient

Minister of Labour, Mr George Isaacs, the Minister Atom Bombs

of Transport, Mr Alfred Barnea, and the Home Secretary, Mr James Chuter-Ede.

Campaign To Communise Japan

Washington, June - 29,- American State Department. officials said today that So- viet Russia was pushing an active campaign to "com- munise Japan from within.

The latest apparent ovidedco was the return to Japan of 2,000; war prisoners who chanted Commuelst songs when they came nahore.

оп

that

the basis of Tokyo T- poeta hero fereast

others whom Mos-, Washington, June 29- cow has promised to free this The American magazine, year would also turn out to be Ministers, due to meet in London A special national delegate The Wellington agents of the the United States News, said well-schooled in Soviet Ideology. other signs of Russian conference of the

Union of strike-bound 7.132-ton Canadian today that the United States. A

intentions

oficials noted the voted. that Rallwaymen

overwhel- steamer, Tridale, told the crew has now enough atom bomba newspaper. said

following

things: British officials had fold themingly yesterday to continue in prison here today that fur to fight a major war and all-

until the

were proceeding ther altempta United States Government that "so slow" working

controlling to settle their strikco........................-------- out production would providle Briinin intends to make another Railway Executive,

The men have almost com-1,000 atom bombs in two substantial cut in her imports the nationalised railways, con-

for demand

a.10 pleted a

a month's sentence for years. from America time during

shillings a week wage rise, Incidents which followed the the next thron weeks.

The Railway Executive, which crow's sympathy strike with The magazine claimed Ottawa:-Canada Is unable

alco met today, to consider the other members of the Canadian computations based on informa position, has offered

wage in Seamen's Union throughout the lion publicly available showed creases of 6d. to threa shillings world against the recognition; of that the United States had built

lower-pald

up u minimum stockpile of be- railwaymen a new rival organisation. about one-third of the Union's The New Zealand Labour tween 200 and 250 atom bomba, Thero wero sono indications membership.

Federation is awaiting fresh in- but some estimates' placed the that Canada might be reluctant It was assumed the Cabinet formation from Canada before figure as high as 400.

some

at present to make further loana Britain or the Sterling Area, a usually rellable source said

here,

#

ceded

to

problems of

out their throat,

that

The magazine quoted Dr Oppenheimer, the atom scientist, as estimating that, with all-patt production, the United States

Police Resort could build up 1,000 atom bumb

to send the Finance Minister, Ministers might today have proceeding with negoliations for Mr Douglas Abboll, to next riven preliminary consideration the men's release—Router.

maving month's Commonwealth-dollar fo talks because the Dominion does perishable food and other vital not want to have to refuse a goods if the railwaymen carry request for a loan

Mints- Canberra: Australia's

It is generally agreed that

organised national "go ter of Defence and Postwar well

John slow", tactic would cause choos Reconstruction, Mr Dedman

will represent the on the rallways, leading to the Dominion at the forthcoming cancellation of many trains and Commonwealth talks in London, serious bucklogs in the move- Prague, Junio 20-The

serious violence:, was reported It was authoritatively stated ment of freight,

today

Czechoslovakia's

hore.

DOCK STRIKE

To Force

Arat

The announcement, quoted by. London,'s "In and out" dock Church-State conflict with the Australian News Bureau strike over the Canadian Sea- tommygun armed

on

in two years..

A spokesman for the Atomle Engery Commission declined to вау whether the magazine' figures were correct--Reuter.

Radio H.K.

(1) Soviet attacks on Japan- eso Government efforts, backed by General Moe- Arthur As Supreme 10 Allied Commander, cope with strike dis- orders. The latest came from Lieutenant-General Kuzma Derevyanko, Rus- san member ot the four- nation

ion Allied Control Council in Tokyo.

(3) Communist attempts to control key communica- tions and railway imlons. They are credited with being at least parily successful

3 A campaign to promote trade between Japan and Communist China. An butspoken champion is a? Moscow-trained" Japan-

Communist leader, 2

E30

Nosaka Sarizo.--Router,

Programmes

For The Services

Steps ard already being taken by Radio Hongkong to provide the Services with special programmes, the Telegraph learned this morning.

Saturday

said that the London talks men's Union - "var" broke out subduing Catholics. Commen A Church source reported that would be held in the third week again today and by noon nearly of July.

7,000 dockers were idle,

tho tho polico subdued minor Tho 4,000

Royal Dock men uprising: OL Catholle 'parlshlöneri OPPOSES DEVALUATION

once more refused to

in tour villages in the Turcany unload Mr. Joseph B. Chifley, the two Canadian ships affected by sky-Svaly-Marlin. area. The Australian Prime Minister, the seamen's strike, while port uprising was prooipitated determined to co-operate with employers refused to call for Sunday by a police attempt to Britain "to the limit" on dollar any other work until they did arrest four local priests.

A special Forces sub-com- Radio Hongkong on Goverunent.so... conservation,

Meanwhite, there was wide- mittes of the Broadcasting July 29, when the Laicpsters® spokesman sald today.

The men's leaders, alleging an sprend speculation about Arch Advisory Committee has been band wil be featured). Colombor Ceylon'

Finance employers,

lock-out, decided to bishop Beran's fallure to emergs not up and includes two repre- The new Forces "Hour-pro- Minister, Mr J. H. Jayewardene, c... out all London dockers,.. from his police-guarded palace sentatives from each of the gramma which opens next Sun

The employers issued a state, to say the graduating Mass at Services. who will attend the Comman wealth crisit; talks in London, ment denying a lock-out and Vojtech Seminary as had been In addition to the "Forces day at 3 o'clock is intended in will dy there on July 18 after declaring that they were told by his custom for years paste

wowej, due course to be featured, by re- Hour" which will start next

**** questa and messages from the He has presented his budget to union representatives yesterday

Radio Hongkongis tamilies at Hongkong service that the 4,000, men; then Parliament in

In Colombo.

nhd concerts to be given Until his arrival Ceylon will strike would resume work on

feature bands and orchestran Of represented by her High all ships, including the Canadian DROUGHT BROKEN men who live in England.

Radio Hongkong, hoped, that Commissioner in

London,

Sir Bonverbrane and Argoment

the various regiments, naval and servicemen will write to their 20 Britain' Oliver Cooneticke

air force units stationed in relatives telling them at this 'New Defbi-India is likely

day? Hongkong, and will also include special request programmes and to throw all her weight against

Services Inviting them to submit tume by

requests any suggestion for devaluing

and personil mosanges. Sterling, according to usually

Radio Hongkong also intends reliable sources here.

The Finance Minister, Dr. John Matthal, who will repre- sent India, at the Common wealth talks | Bald today that India's ** döller ~ position had caused "considerable anxiety.” **Reuter.

A

United Press.

on

drought"--10

inc

meeting of stevedores London, June union members later rejected a "absolute recommendation from their without rain-was broken last variety executive to resume normal night when light rain fall in

decided um-Yorkshire, Cumberland and artistes. working anut animously, to carry on the boy part of Eastern Scotland, dus It is hoped to obtain tott of the Canadian vesselsetts Rain was expected today. In China Fleet Club for these to Beck the co-operation of the The earlier strike began when the Eastern coastal districts and concerts. Admission would be Garrison Players, the Hongkong Canadian craws from the two thunderstorms as threatened in free? to Bervicemen (and the Stago ships, walked off -alleging that the South, But the three-day concerin would. – bu biondenst Dramatle Society; with a vins their employers had broken a eld heatwave is likely to con- through Radio” Hongkong from to presenting, for the benefit of sellement reached througly the inse for a few days, the the Clubs,

Services listeners regular work" Canadian Higit Commissioner Meteorological Office has an- The first of the fartuightily-ly plays and dramaan Mon in London, last week; *** 31 pounced............ Bouter.

Ukikat conueets wit bal khard? Fron

Club and to BAF