1949-07-21 — Page 1

Coca-Cola

Ice Cold

Strange Ships Off Sweden

London, July 20,- Strance aval vessels were

Bighted cruising afong ito Swedish count yesterday for the second time with In a month, according to a Blockholm newspaper quoted by Stockholm Radio today.

The report said at two foreign warships sailed for neveral hours along Bweden's eastern seaboard suuth of Stockholm just outside the three-mile Timis

They had 110 identity marks, whereas the war- ships which made a simi- Jar VOYANC some weeks ago were definitely Identi- Red

as fussian cruisem, the newspaper salil. Reuter,

SECRET

ATOMIC TALKS

Washington, July 20

High atomic, Cabinet, Con-

For the Preatictor of

HONGKONG TELEGRAFII, ' For andre Lehalf of

SOUTH CUINA MORNING I LTİL

Printer"2nd Prizitateť

The

TODAY'S WEATHER:. Light Boutheast or variable winds. Fine and hol,

Noon Observailons: Baromotele pressure, 1010.5 mba,, 20.84 In. Temporaluro, 83.1 deg. F. Dew point. 77 der. F. Relative humidity, 82%. Wind direction, East. Wind force, knota.

High water: 3 ft. 5 în at 8.47 p.m. Low water: 3 ft. 4 in, at 11.35 p.m.

Hongkong Telegraph.

VOL. IV NO. 170

CONFERENCE OF BRITISH MIDDLE

EAST DIPLOMATS

London, July 20.-Britain has called home its diplomats from the Middle East for a searching: study of the effect of the new Jewish state on tradi- tional relations with the Arab world.

Ambassadors and Ministers accredited to the Arab nations, commence tomorrow their first The general conference in London since 1945. impact of recent Middle East developments including the Jewish-Arab war and the creation, of Israel on British strategic planning, will be a top subject, Foreign Office sources said.

ed

They are the Regent of Iraq. the Emir of Cyrenatea and the Prime Minister of Transordan.

While the extent of Com-British dipomats were summon- home for a planning munist penetration into the

meeting. countries concerned will be examined, the diplomats will give their major atten- tion to economie and social conditions, in the Middie East, these sources said,

The Foreign Secretary Mr Ernest Bevin, wil open the conference before taking a two- week rest in France because of illness.

British han alliances with hoth Iraq and TransJordan which will come up for clis-

gressional and military officussion and in addition the ques- clals, including General tion of a new treaty with Dwight Eisenhower, met to-Enynt will be studied. Foreign Gillce experts believe, however, day to seck A means

that

definite no

action will

of

smoothing atomic relations come on this matter until after with Britain and Canula. the Egyptian elections.

General Eisenhower accom- panied the Defence

SOME PROBLEMS Secretary, Here are some of the prob- lems which the diplomats will

British Senatu-Houze fit in with

relations with the Middle East.

Mr Louis Johnson, to a secret

of the faceting Atomic Energy Committee.

Also present were the Secre- tary of State, Mr Dean Acheson, the Atomic Energy Commission chairman, Mr David Lilienthal, other top Government members

King Abdulla of Transjar- son is expected in London 5000. (Continued on Page 5)

Support For Chiang

in

San Francisco, July 20.- The Chinese community of San Francisco--one of the largest outsido China-off- cially came out today against 1. The future of the Italian Communist aggression colonies,- question duo

to Chinn, come botore the United Nations The powerful Chinese Klx

and the General Assembly this autumn. compánico

Chinese The problem 2.

of caring Chamber of Commerce sent tele- for 500,000 Arabs who fled from grams to President Harry their homes during the Jewish Truman, members of U.S. Con-

Secretary gress and the Economic and

social as State. Mrs Dean Acheson, urging Among those in Mr Johnson's

that tho Red regimo in China party was Mr William Webster, sistance to the Arab states in elvillan chairman of the Military line with Britain's traditional not be recognised..

fuli Liaison Committee in the Atom-paternalism. ic Commission.

and Uteir legal and policy advi-

sers.

Aral war.

S.

of

They also recommended "moral and material support to Asiatic nations fighting Com- must aggression."

They also recommended. full "moral and material support to

THURSDAY, JULY 21, 1949.

Busless New

York

Dine

At the

For

P.G

Reservationa

Price 20 Cents

Tel: 27880

Colonies Debated In Parliament

GOVERNMENT URGED TO PLUG DOLLAR LEAKAGE

by

Slam, for instance, was ship- ping for more rubber to the United States than she could

prospects of the rubber Industry! in Malaya.

How long would the present record of 098,000 tons of rubber possibly produce. This led one produced in Malnya continuet to suppose that, there was n he asked.

Inerative trade shipping rubber There are one or two sinister from Mulya to Slam, he said. signs. The herculean task hus been achieved of creatment-to-negotiate with the He also asked the Govern- duction under appalling difficul- Amerleans not to push synthetle ties. This, with gangster wat rubber at the present rate.

round, the fare continuing all plantations, must draw from this

London, July 20.—The Colonial Secretary, Mr-Arthur Creech Jones, told Parliament today that the British colonies could not proceed fast with political development unless their social services were expanded and "unless we build up in the territories. a sound economic basis to sustain the social services we are trying to create." Opening a House of Com- mona debate on the Colonies, 31r Creech Jones said that the broad purpose of British Colonial policy was to bring stability, good order and mutual prosperity to the world. The polley was to do this in co-operation with the Colonial peoples

MAIN FACTORS This is how Fifth Avenue, New York, appeared as building up in the Colonial House the fullest admiration and

Mr Stanley Awberry, Labour, a strike on transportation lines put 30 bus roules out territories responsibility and praise for our fellow citizens who went to Mainya in 1948 to

the conditions of

whether British, Malay, report on the labour and trade good there of operation. This picture was made looking north from

union conditions there, said that Saks Fifth Avenue store and shows plenty of taxicabs,

must remain in a few pleasure cars and several trucks in traffic lanes things inside the Common-margin of pront for the rubber were, Britain

companies wealth.

this year. Seventy Malaya not only because of usually jammed with hugę green buses. At the right

"We are anxious in our re- percent of the cost of rubber them. is St Patrick's Cathedral, `and at left the international

with

There was the Intlony

Colontal Production went in Inbour. Any

a much higher Bullding of Rockefeller Centre and a new structure peoples that there should be a fall in the price of rubber must responsibility than to make being raised on the former site of the famed Vanderbilt steady elimination of all die have considerable consequences profits out of tin and rubber. on Britain's whole economy and That responsibility was to help and

full mansion on the corner of 51st Street. (AP Photo).crimination

upliit the social condition of operation with

the on the rubber producers. them in great talks which have to be MATTER OF DOLLARS people and to simulate the done", he added.

Sir John Barlow, Liberal Na- development of democratic con-

trol. Mr Creech Jones also salational, thought the amount of that within the next few years doilars Malaya was allowed to tive and managing director of Mr Walter Fletcher, Conserva- Parliament would have to con- retain from her exports to the

of rubber merchants, older how much further eme United States-about half-was f

said that in and rubber for of the British Colonial group too great in the circumstances.

many years to come at Inge could....boted up into It is no real service to the effective government federa- Colony and a great disservice Tate as-long as the present dol- lar crisis lasted-must be the Ilans or new government to the Empire as a whole. If one

two main factors in closing the machinery,

part is using a greater number

dollar gap.-Neuler. It was Interesting, he sata, jot dollars than is reasonably to see the success of some of necessary," he said. the experiment over the past few years:

China Reds Force

Heavy Tax Levies

On Foreign Firms

(By OUR OWN CORRESPONDENT) 4. The maintenance of Britian

London, July 20. British businessmen fear friendship and popularity among Unusual steps 10 guard the Arab states, and at the same

the heavy taxation imposed by the Communists on secrecy were taken before of time maintaining the beat cials. nnd Committee members possible relations with Israel. Generalissimo Chiang Kai-shek foreign firms in North China will be repeated on arrived at the Capitol for the

CYRENAICA

and Acting President Li Tsung- an even larger scale in Shanghai. meeling. Two Capitol police-

proposed the Briinin, now administeringen endorsing to keep imen were assigned

of Pacific alliance and pledging and photographers the former Italian colony

of overseOS newsmen from approaching the door of Cyrenaica, is anxious to main-complete support

the Nationalist the meeting room. Shades were thin her position there because Chinese

that faced of the strategie importance of Government-Associated Press. drawn on windows

air, land and naval Virtually existing

the public corridor.

all members of the Joint Con-bases in Cyronien.

LEAVES CANTON Canton, July 21.-Generalis- Chiang Kai-shek left Canton for Taiwan by pinne

It is interesting that leaders sime were on conference of three of the Arab states are

gressional Committee hand for the United Press.

EDITORIAL

or save

The

in London at the time thels morning-Reuter.

Colonies

IN connection with Britain's present gold and dollar shortage, the Secretary of State for the Colonies, Mr Creech Jones, announced earlier this week that he was discussing with the various Colonin! governments the question of how much of their dollar expenditure "might, or should, be curtailed." At first glance, this might give the impression that the Colonies were responsible for some part of the drain on the aferling aren's dollur resources. Actually, the reverse is true. The British Colonial Empire has been earning dollars at the rate of no less than £50,000,000 n year, Important commoditica produced in different Colonies, such as rubber, cópro, sugár, tin, cotton, coal, cocon, palm oil, etc., earn a great many dollars for the sterling aren. This has been recognised by the Home Government, who have financed much of the development and have encouraged every effort to increase production whorever there are prospects of increased sales. The rising production figures in many Colonies are truly Impressive. Production of rubber in Afalaya, for instance, reached a record total of 698,000 tons in 1948. The cotton exports of the Colonial territories where It is produced last year doubled those of 1917, and 1948 Colonial exports of sugar, at 1,004,000 tons, were well above the prewar level. These results spesk for themselves. Hongkong, being"" without rich natural resources, obviously cannot contribute to dollar curnings in the same degree as some other Colonies. Neverthe less, it has contributed in its own way. For while some part of Its dollar earnings In certain export items has to be surren......:

And Dollars

dered to the Exchange Control, imports from the dollar area do not enuse a drain on earnings because they are financed, by and large, by the merchants themselves from exporters' procéeda, Chinese famlly remittances and various assets held in America by private individunis available. in the open market. Although the Colony is part of the sterling area, its peculiar position As a Far East'entrepot has necessitated modificationy from the system of control such as exist in the United Kingdom and other parts of the Empire. Paradoxically, because of this Independence, it is, as far as trade with the dollar area is concerned, hardly to be classed as part of the sterling area. There is, therefore, no obligation here to cease or curtail Imports from the dollar areas, though every effort might.be made., to encourage buying more from sterling area countries. What the authorities here' can do to Increase dollar earnings for the Exchange Control is to subject more export commodities to the exchange surrender requirement. Some merchants. may raise objection to this procedure, but it is one positive step that can be taken hero to help the Old Country without upsetting the Colony's normal trade. Together with a stimulation of exports," particularly to the United States and Canada, by other Colonies, this will play a useful part in reducing the pressure on. the sterling area a whole. By strengthening Britain's economic position, this, in turn, will make it easier for Britain to provide the Increased 'capital' needed for, further economic development In the Colonies.

living, and to achieve these Chinese or Indian," he said.

There had been only a amali | important no tin and rubber

: DIFFICULT PERIOD

com

Sir John protested at the time

the

Any

and in certain directions the Allowed To Stay

In U.S.

dollor expenditure was reduced.

But

hope the Colonial will look Secretary

into the Ceylon had Dominion status point," he added. Malta had acquired internal

"I am sure if the matter

Washington, July 20-Poon self-government, West were brought suitably before Lim, the Chinese sailor who

the

Indles were discussing the

see how wrote a new

chapter in the problem of federation and the Maleye they would I learn from reliable sources from Shanghal that East African

dollars we are history. of human. endurance by very short of Authority had

here and that we deserve a spending 133 days adrift at sen the Jenminpino equivalent of £800,000 has been de come into being for carrying

than

after his ship greater

we during the war woportion manded from Chinese and foreign firms in Tientsin. out the economic services of that are getting

bren torpedoed, WAS given vast region. The period of taxation is the last six months.

"It might be possible permission by Congress today Mr Creech Joncs sald

bring them The levy in Hankow is the equivalent of £200,000, somewhat difficult

Into the consulta-to spend the rest of his life ta period had ons concerning dollars going the

the United States. -divided among guilds and Individual firms, for the first been reached when the price on

If a Colony al present

Poon

old Lim, a 31-year half of 1949,

levels of some of the principal earns an enormous quantity of native ax Hunan Province, commodities had slumped, but dollars ilke this it should have China, Was the sole survivor Although these levies are for 20 days' delay, and the the Government would do

freighter, Ben. called "income tax," there is possibility of withdrawal of pro- everything possible to readjust to say how they are of the British

to bo spent."

Lomond, whihh was torpedoed of registration or help in the situation arising tection, refusal the thut

He urged the Government to in November, 1942. and expropriation of properties, from this recession.

The plug some of the holes through

Briüsh Government figures have been based on The effect of thesa taxes on It had been necessary to which dollars were leaking in gavė Foon Lim the British actual trade or income, and foreign firms can be judged by lower temporarily the dollar that part of the world.

Empire Medial-Reuter, the it is believed

Com-the fact that Tientsin firms calling" expenditure ja munists have shown dis-indiented they may be crippled. Colonial territories, but the crimination against foreign stated that the firms must first development work and

Ticntain Government was mindful that the pay and appeal afterwards if expansion of essential products they choose. Mast British firms should not be prejudiced by

ld up-under protest

no

ers.

indication

The authorities in

NO ALTERNATIVE

this nor, it possible, the stan- dard of living lowered in any

I understand that payment was due on July 16. The firms ordered to

heavy pay these taxes were threatened with A An emergency meeting In way.

Mr Lennox-Boyd, one of the penalty up is double the tax London of the Committee of the

China Association, representing chief Conservative speakers, Brlüch business Interests in expressed general approval of China, felt that Brilish firms the polley the Minister had in had no alternative but to pay. dienied.

HONOLULU WATERFRONT BATTLE

Hopes Of Ending Dock Strike

London, July 20.--New hopes of ending London's crippling dock stoppago emerged tonight after a day of confusion and conflict between the Govertiment and its own National Dock Labour Board.

They suggested the Committee He said that the needs of the of the British Chamber of Sterling Ares today were the Commerce would doubtless take opportunities of the Colonics. into consideration Vie and

pros

As two vital meetings his chairmanship of the Doct Only in helping in that way Lons of centralising British were they likely to help them-affecting the 15,000 idle Labour Board, the Prime Minis payments and of making pay

selves to the fler life they dockers were fixed to take er will demand his resignation.

Brst of two meetings under protest

if they needed.

place, political quarters which are generally expected

· Mr Lennox-Boyd naked for were discriminatory anghal tell some reassurance about the speculate on what would be to decide whether the 24-day-

Reports from

London dispute will be the fate of 76-year-old Lord old

ended this week took place to- Ammon, Chairman of the night. Leaders of the Stevedores

ment

difficulties being rowing faced by British firms under

Honolulu, July, 20.-Thef

The

striking CIO Longshoremen Communist rule. The Nation- WAGE DISPUTE Dock Labour Board, whose and Lightermen's Unions had a

union stevedore gang. Three which;

vested, This altuation is al

Ltd.

is a

IN BERLIN

today clashed with the police alist blockade of Shanghai is

statement, to dockers last three-hour discussion. After- and members of a non-slowly, stling all enterprise in

night was repudiated after wants they announced they British capital is in

hoped to trash out tomorrow midnight by the Govern policy which would enable a policemen and 26 other per-ready

# causing

drain on

ment.

general resumption of work. sons were hurt in the battle. sterling balances in England

MASS GATHERING and Hongkong to meet over

The statement ordered the Berlin, July 20.-West Fighting broke out at the heads

The second meeting, which is costing gates of the Hawall Stovedores 250,000 ptir month, timated Berlin's railwaymen may men to return to work dr risk

tlio schento mashing

under to be held tomorrow, will be

mass gathering strike again if the Soviet which dockers get a guaran

of dockers: MOB TACTICS Omeo on the waterfront. The Hawall Stevedores

Political conditions in Shang- controlled. Railway authori: teed week's pay whether or be when the leaders of these two Unions will present their re- newly-formed company which Thal make It Impossible to tics continue their refusal to there a work for them.

Tho Government, strength. To pay

feellig commendations. has been hiring non-union dock

reduce. Inbour

The Lightermen's Uolon has 60. porcent of the workers to unload strike-bound

worse, Chinese workers wages in West make matters

thut this thrent would cause“ ships in an effort to break the workers are employing mob tac-

resentment throughout the already

to work B1-day

tleu

The number of dackers who The police arrested 27 Cities to enforce their demands for marks, a spokesman of the nation's docks, made clear that rei staled that it favours a Increased wages and employ West Berlin Railwaymen's the scheme was not threatened. held them

onment of superfluous, staff, pickots

Lord Ammon responded with have stopped work mounted to Union told a reporter today.

with 15.500 tonight of troops in the rioting

The police charges

The

the

why comment: Communist authorities

The number Government has Kone The Soviet duthorities gave caid that more than 300 pickote, seem reluctant, to restore order many of them armed with two- or discipline.

an undertaking to make such and done what it has done and Fort was Increased from 0,779 whole

ly to 9,053 and more. spolled

vesterd Bhow I Business Arms by-fours and lead pipes, milled

ane saying poyment when work was re-

Service-men were standing by. that this around the gates of the steve openly

1 Lord Ammon had

Troops 20- doring company. Finally, about continues,

enterprises five-week, strike:

Iwere working 94 shipa many

minute interview with the and civilian dockers only 17. Olement Forty-five vessels lay idle, four The Western Conınaniants Prime Minister, Mr

were under-manned and ninh the company's offices before hausted. They say the litting today fodged a formal complaint Allee, this afternoon.

Political quarters felt that. it were waiting for berths they were driven oft by the of the Nationalist blockade can- on the subject' with the Shvibt police.-United Pross

Inot euro all Stanghal's troubles. guthibritive-Nouter;

- he does not voluntarily resign. Rauter.

old

-

situation med at the end of Jund after not ***.

100 strikers broke through the will be faced with liquidation gales and smashed windows in as sterling reserves become ex-

Crazy

do