1949-07-05 — Page 1

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HONGKONG TELEGRAPH, For and on behalf of

BOUTH CHINA MORNING POST LIT

The

Fair.

TODAY'S WEATHER: Lighi or moderain Southwest wlads,

Noon Observationst. Baromatita pressure, 1018.1 mbs, 39.89 In Temperaturò, 87 deg, F. Dew point, 77 deg. F. Relative humidity, 24%%%. Wind direclfen, W by B. Wind force, 8 knots. High walan 4 N. 5 in at 0,35 p.m. "Low water: 3 th 7 In at 11.57 p.m.

Hongkong Telegraph.

VOL. IV NO. 156

TUESDAY, JULY 5, 1949.

Dino

At the

P.G.

For

Reservations

Tol: 27880

Price 20 Cents

Truman Message HONGKONG'S NEW K.C. CANTON REPLIES TO

To Congress On Recession Fight

Washington, July 4.—President Truman

is expected to give Congress his formula for combatting the recession this week when he sends his mid-year economic message to Capitol Hill.

Because of mounting unemployment and. declining production, the message is eagerly awaited by Congressmen as well as business and labour leaders.

consumers.

The

The President studied n Board composed of representa- still secret report of his tives of industry, agriculture, Connell of Economic Advi-Board would study economie

labour and sers during a holiday week-conditions and make recommen- -end cruise on the Potomac dations.

the

cam-

self-

River and Chesapeake Bayan Legion announced a

At the same time, the Ameri- This report, together with paign to create new jobs with his own recommendations, emphasis on community will be sent to Congress, help. The drive, in which all probably on Friday.

the 17,300 Legion posts will Though detalls of the message participate, will be similar to have been cloaked in secrecy,

community development there has been

plans niready Iried considerable

out In speculation

various parts of the country. that President

The Legion's Truman may give the green light

national com- to government action to provide mander Mr Perry Brown, sald in "shelf" of public works to be the plan will work like this:

started in case of a severe re- cession.

committees will be formed; a community consumer survey Such a programme highlights will be mode to determine the

goods and services : $15,000,000,000 anti-depression

the people plan unvelled on Saturday by want, and, one by one, little throo Democratie Senators, projects will be tackled to pro- James Murray, John Sparkman vide Jobs by supplying the and Hubert Humphrey.

desired services.

LEGION PLANS

ON LABOUR FRONT

Called the "Economic Expan- On the labour front mean- sion Act," the new plan calls while, government officials are for the establishment of a Na-increasingly optimistle that the ttona) Economic Co-operation nation may get through

SOUTH NEGEV

QUESTION -UNRESOLVED

new instructions.

summer without

the

a wave of

midnight.

Mr Charles Edgar Loseby, K.C. (right) photo- graphed with the Chief Justice, Sir Leslie Gibson, K.C., after being admitted within the Bar and presented with Letters Patent in a Full Court cere- mony this morning. Report on Page 5. (Staff Photographer)

VYSHINSKY SAID

ON HIS WAY OUT

New York, July 4-The "United Nations World" said today that M. Andrei Y. Vyahinsky is on the way out as Soviet Foreign Minister. The United Nations World is a magazine devoted to international affairs. It has no connection with the United Nations.

fall

tween

his

energies vocation,

BRITAIN'S PROTEST

Far East

East 2,000 MORE Deplores Flow Of Alliance WAY HERE

Mooted

Taipeh, Taiwan, July 4- British Interests in Hong- kong and elsewhere in Southeast Asia would bone- fit from the protection point of view if there were a Far Eastern alliance embracing Nationalist China and other Interested countries in this part of the world, a high Chinese official told Reuters today.

This being the position, he added, Britain should take im- mediate steps to initiate such on alliance.

[

The official also expressed the view that if the Communisis make deep Inroads into South China they would eventually "certainly occupy Kowloon".

Ir the British Government

did not Initiate an Asian alllance then the "Chinese Government should consider taking appropriate steps in re, gard to Kowloon and Hongkong before the Communist forces approach that ares,”

The oficial did not, however, elaborate this latter statement.

ASIAN TITO--

Discussing the possibility of

"Asian Tito,”. "the official that whatever attitude the Com- munist lender eventually adopt-

Mao Tse-tung becoming

an

sald

TROOPS ON

Two thousand more army reinforcements for Hongkong sailed from Liverpool.yester- day aboard the troop- ship Orduna, according to United Press. The ship will call at Middle East ports and Singa- pore on her way to Hongkong.

A Reuter message adds that some mem- bers of the Royal Air Fores are also coming out in the same troop. ship.

Trade To Reds Through Hongkong

By HAROLD GUARD

London, July 4.—The Chinese Gov- ornment today replied to the British note: protesting against the Nationalist blockade of Communist-fold Chinese coast ports.

A British Foreign Office spokesman said the note was delivered from the Chinese Foreign Office. through the British Consul- General in Canton, Mr J. P. Coghill.

Washington Trying

To Work Out New China Policy

Washington, July 4.-The U.S. is cautiously trying to work out a new policy towards Com- munist-split. China. This effort is the first really positive American approach to the subject" in several years. It is being carried on mainly through conferences in a' number of world capi-

tals.

ed the result would be favour Dock Strike: able to the Nationalist Govern- ment.

EMERGENCY Acheron

MEASURES FORECAST

He declined to reveal "the contents of the note, but it was understood that the Nationalists showed no sign of backing down from their plan to close China's vital seaports.

In addition to the reply to the British protest of last Thursday, the Chinese Nationalists also were reported to have told the British government that a free flow of tredo to Communist Chiria was tantamount to alding the enemies of Western, De- mocracy.

The Nationalists were said to have told the British authorities that Hongkong was becoming the Communists' main supply base which would be exploited by traders from countries sym- Communist

How well it succeeds may be Indicated in the imme- pathete to the diate future when the U.S. cause. Secretary of State Dean

It was understood that China's and President reply to the British note con- Harry Truman reply to tended that the Nationalists' questions raised by Senators closure of Communist-held ports bitterly critical of the State the Nationalist Government was d'd not constitute a blockade and Department's recent hand-acting within her sovereign ling of Chinese affairs.

rights.

Two big problenus confronting

crippling strikes that has beent forecast. They note that John L.

Lewis, President of

---of-~ the United Mine Workers,

Thita July issue, the dissatisfied with his own per Endl Walter

P. Reuther, of the magazine says M. Vyshinsky formance in' the diplomatic United Auto Workers, have al was an unqualified failure in words, that he would prefer to sphere and stated, in so many ready removed the immediate his first crucial test as So-devote threat of huge coal and. auto

to his viet Foreign Minister and lifetime strikos,

jurispru- Mr Lewis ordered his soft coal his standing with the dence". miners to return to work on powerful Politburo went to Jerusalem, July 4-Dr Walter Tuesday at the end of their its lowest point.

HINT TO FRANCE Eytan, chief of the Ismell de- annual 10-day vacation even

Quoting the most authorita- The magazine says M. Vyshin- gation at Lausanne, is expected though their contract expired live

last Thursday to return to Tel-Aviv next week, Bituminous miners cast of the deals during the recent Foreign Minister Robert Schuman that influence, then "outside efforts diplomatic sources"

the sky, in most diplomatic lang-

He explained himself thus: the usually well-informed dip Mississippi River will work only Minister's conference

magazine sald these two incl- ungo, hinted to French Foreign Mao rebelled against Soviet lomatic correspondent of the three days weekly until further confirm the report of M. Vyshin-come Palestine Post reports,

in Paris the Soviel Union would wel-would undoubtedly be made to Dr Eytan will report to the notice, but soft coal mines west

д French-Russian pact depose him by internal strifo." Israeil Cabinet and may receive of the Mississippi and anthracite sys

from his high gimilar to the 1935 accord be- there were any trouble of mines will resume full-scale standing:

Premier Stalin and M. this nature the Nationalist Go- The correspondent says that production.

"1. M. Vyshinsky, eager to Pierre Laval

vernment would naturally pre- there seems to be little "chance Mr Reuther and the Ford have Premier Stalin act as lis

fit by it. of any constructive outcome to Motor Company signed in ex-pilot--when the U.SU.K

The veiled-invitation was proved to be a firm supporter Labour the talles, and the situation is tension of more tense since the beginning Operate on a day to day basis early optimism, failed

dissociate herself as sharply na 01 on April 27.

beyond the July 16 expiration through to the Soviet Premier possible from activities of the Democracies would, sooner or The main question is believed date.

by phone, despite frantic round-French Communist

France and other Party if later and in their own interests, investigating charges that powers

Western have sought to emphasise the the-clock efforts.

France would vote, from time be compelled to oppose him. In the Communists had in economic and

do about establishing "global nature" of the struggle diplomatie re-in China and to have appealed to time at least, with the Soviet the event of Unis development, spired London's crippling lations with the Chinese Com-to the British Government amall Union in the Foreign Ministers, Nationalist China would ob- dock strike and hinted at munists,

vlousty beneat too-Reuter.

avoid pollelen likely to be or 2. What should the U. S. do aid to the Chinese Communists. emergency measures to pro- tect cargoes aboard 88 ships. efectivo anti-Communist forces Government la still awaiting about strengthening whatever In the meantime, the British to the crumbling omcial contact with the Chinese On the problem of dealing tlate for the removal of the with the Chinese Communists, frigate, Amethyst, which their American diplomats have been remained anchored in the up this conferring with their Westemper reaches of the Yangtze since colleagues in the Chinese, Bri- the Communist shelling nearly tish and French capitals, as well two months ago.

Washington.

NO CONTACT The Chinese Nationalist re- an- 1. What should the U.S. in presentatives to the British Go-

On the other hand, if Mão London, July 4. The policy makers arer their contract to French diplomats thwarted he said to mean that Russin would Moscow, then the Westernnounced today that it was so co-operation with Britain,vernment were understood lo

to get

to be the Southern Negev STEEL STRIKE THREAT Desert "There seems to be little These two unexpected moves

2. On June 4, at a loubt that Britain and Americo left a possible steel strike as the and private dinner where the Council, are supporting Egypt's Negev biggest July work stoppage Secretary

laims and endorsing the plan threat in major industries,

of State, Mr Dean for a territorial

Mr Acheson, was link between Philip Murray, President of the Vyshinsky's customary aplomb was never directly made and M. present, Mr The magazine sald the offer Egypt and the Hashemite King-CIO and Steelworkers' Union, was observed to be conspicuous-Schuman never had a chance dom of Jordon, which would cut indicated he may call out the ly displaced by uncertainty and to refuse it outright, but that M off the Akaun coast from Israel," bulk

of the 1,000,000-member anxiety. He conveyed the dis- Schuman foft na he adds-Neuler.

(Continued on Page 53

EDITORIAL

Australian

tinct Impression that he was France would remain la cloe Union Heads

Mr Attlee's Warning,

THE Prime Minister, Mr Attlee, is not

given to colourful oratory. In part, this is due to his dislike of publlelty for himself. And because of this, Britons as mass know less of his personality and habits than they do of many other national -figures, including even his juniors in the. Labour Government. Throughout his political career, he has always worked quietly, but determinedly, towards attain- ment of the Socialist objectives to which he has dedicated himself. It is his mind and his methods that are remarkable. Words he uses, but always only when ho has something worthwhile to

say, and

not for the sake of charming of hypnotising his audience. Now that the Labour Government is passing through another difficult period-with an unofficial strike of dock workers adding to the problems of production and shortage of dollare-It fe Important that anything which the Prime Minister may say to the publle be read with an understanding of his character and his methods, Seldom has Mr. Attlee been as strong in condemning any influence for Ill as he has been during the past week-end in his castigation of the Communists of Britain. He bluntly accused them of serving the Interests of Russian Communism, and putting those Interests above the well-being and prosperity of their own country, and their fellow citizens. His accusation did not go unsupported. Four Members of

Parliament disclosed at the same time. that they had come into possession of information-derived, it

appears, from both strikers and non-strikers-hat the London dock strike was fomented by British Communists in a plot to wreck the country's economy. Mr Attlee warned the strikers that, by fast auch activities, the Russian Communists, through their stooges in Britain, are seeking to drag

the

British people down to the "same standard of living and serfdom as that to which they have plunged the masses of Russia as well as the people of several Eastern European satellite states. He held up the example of these countries in their complete subservience to Russia-both politically and economically-as a clear Indication of the depths to which fred nations could sink when they fell victim to the Communist fifth column within their own borders. All freedom of speech, of conscience and of the person has been destroyed in these countries, whose economics are not organised for the benefit of their own peoples but must be geared to serve the USSR. Legitimate grievances are defensible, but British workers must ask themselves before taking any action whether." they are serving the Interests of Britain or are being miated into, serving the interests of the Kremlin Polliburò, Mr. Attlee's working man plenty of food for thought. words give every patriotic. British

doubt that

association with Britain and the United States Associated Press

Face Gaol

Government

Minister,

George Isaacs, told the House Chinese Nationalist Government? Communist authorities to nego

The Labour

loft Mr are

[of Commons: "This strike, is

hurting the country men

out.

and

cannot escape responsibility for causing hurt by say

is a lock- saying there As I pointed out last Friday, the men are in breach of their agreements and of the Sydney, July 4-Unless provisions of dock labour. It is certain union leaders pay nothing but

Communist large sums of money to the manoeuvre to pretend there is Registrar of the Common-ny other explanation of

the wealth Arbitration Court by London, July 4.-Mr WUson tomorrow morning, Harris, Independent, asked

Diplomatic Immunity

in

amend

the

of

they

Position:

A.

"I the men say they wish to show their loyalty to their own trade union and to trade

SOLID FRONT

to

the 100

British official sources sald there has been no contact with the Communist authorities other

urged a solid front in the Farat, Nonking.

In general, the Americans than in Informal consultations East as in Europe, with the same (Continued on Page`6) restrictions against selling wor materials to Communist coun-

now-the

the House of Commons today if may be fined or imprisoned the Government would

While a decision la yet to be the law

This position diplomatic immunity of

arises from unionism and to full obliga-made, most officials in Washing- Britain in view of last froozing

Federal Parliament's legislation tions to the country, they should ton belleve that oventually week's ruling by the Court

funds

the resume normal working at once U. S. will try to catablish a

some months from of Appeal that Tess, the official Miner's Federation and

in accordance with the advice working relationship with the other Soviet news agency, was

big unions.

of their accredited. trade union Chinese Communist regime ex- pro- tected against actions for libel

leaders," by diplomatic immunity.

The Minister of State. Hector McNeil, said that Government was studying decisión..

EUROPEAN PAYMENTS

London, July 4-Sir Stafford pected to be set up next autumn, Cripps, Chancellor of the Ex- Twenty-one. Senators have chequer, told Parliament today.

The object of the freezing is to prevent the unions using their money to prolong the coal a few hours after 8,000 London asked Mr Truman to speak out that he regarded Mr the strike which began on

27

tho

Paris

The announcement was made dock workers

had refused to against handle Canadian ships.

Communists, and Chinese agreement on Intra-European

and Senator Know-payments as a great achieve land, Republican of California, mont of European co-operation OPEN WAR

says that a large number of which will, I hope, serve to Senators want the U. S. to un develop European Trade and Signifying the Government's dertake a new China labour agitators, Mir open war on alleged Communist gramme.

ald pro-recovery! declared: "I

Isanca

which to see no food is lost to the

of community,"

Jung the effective, the Miner's Feders- Before legislation becamo tion and other unions

withdrow As leave to appeal, to the about £60,000 from the banks. House of Lords Britain's Mr Justice Kelly today orde

ordered highest judicial body had the Miner's Federation and the been given, he thought that any Ironworkers Federation to re-

He said that Belgium would statement would ba premature. turn £40,000 by tomorrow." The House every step will be taken -con-assure the

POLITE REJECTION

get more dollar aid for the year casco of other unions

1049-50. in return for making The Court of Appeal ruled withdrew the remainder

Nationalist China has a special grants and long-term credits, to that Tass enjoyed immunity as £00,000 will be

dealt with to-

envoy in Washington to discuss some of her principal debtore a department of #aovereign | morrow.

with the White House and "In this way Belgium's debt- Stata-Reuter.

Thirty of the stalled vessels State Department a scoret plan ors, of whom we are one, should When called upon in court to me food ships. day, to disclose the whereabouts Mr. Isanca blistering

for a stand against the Cum-have enough of other currency to of the money withdrawn from on Communist agitatora

attack munists in Westem China. buy from her without

loss of bank accounts, officials of the similar to the Prime Minister's American afil, but, at the under strong pressure to use for Was The envoy is working for gold or dollars and without being Miners Federation and address at Manchester Inst night moment his efforts. workers Federation refused and emphasised that the unoff-more of the Senatore and ap them by other countries

like that purpose the grants made to Meanwhile, both Federal and tial strikes were "damaging the. New South Wales Governments economic position of the cout-Plated for polite but firm Se Stafford said that by limite of the three foreign within the mining unions to end

Bro waiting for Inside pressure try" rejectionerne og ing the amount

However, the possibility still dollar aid which could chango nows agencies Reuter, Asso the strike, Minors leaders to bench to explain what action nist forces under individual effect would be avoidedy anco Pressed by the Conservative exists that It any anti-Commu- hands any serious restrictivo elated Press and United Press day reiterated their determina the Government had, taken on leaders, succeed in making the risk for the countries taking received any news messagestion to fight until the demands the report from thred Members stand in Western China, they part should be outweighed by from Shanghal this morning. are granted,pink most of Parliament that the. Com may eventually get American tho, advantages which they wil This is the second day of the The miners are asking for a munkats had started the London help. Officials might conclude gain from, expanding, trade withs news black-out. No explanation 35-hour-week, a 10 shlilings dock strike, Mr Issace said the that such aid could accomplish their European partnere la for the stoppage had been re wook, increases and long sarvice report we receiving the at a lot for a tolatively small In- more fully competitive ceived up to the lunch hour leave-Associated Press,

270(Continued on Patw 8). vestment.Associated Pros: Reútur.

NO NEWS FROM

SHANGHAI

7

None

-

៉.

of conditional-