1949-09-19 — Page 1

For the Proprietor of

HONGKONG TELEGRAPH. For and on behalf 01

SOUTH CHINA MORNING POST, LIIA/

The

Today's Weather: Moderato East winds. Fine

Noon Observations: Barometrio pressure. 1010.1 mbi., 20.83 in. Temperature, 86.2 deg. F. Daw point, 74 deg. F. Relative humidity, 09%. Wind direction, East. 3bedzłogęs, 20 knots.

Low water 1 ft. 4 in, a$ 242 pm. Iligh water; 4 ft. 0 in. at 9.68 0.0

Dine

At the

Hongkong Telegraph.G.

VOL. IV NO. 221

CRIPPS

MONDAY, SEPTEMBER. 19, 1949.

EXPLAINS

NECESSITY

OF POUND DEVALUATION MOVE

CHAKSANG INQUIRY OPENS :

Captain Tells Of Typhoon Night Events

"Just after 9.15 I turned in and the next thing I knew I was on the deck of my cabin pushing away debris and various other things which had fallen on me. When I came to my senses I realised something awful had happened and managed to crawl out of my cabin," declared Capt George W. F. Edwards, master of the steamer Chaksang, when he gave evidence before the Marine Court of Inquiry this morning.

U.S. Coal Gold Reserves Ran

Mines May

Shut DowVIR

Pittsburg. Нерв 18. Local union leaders today predicted that few of the 480,000 members of the American Vulted Mine- worken.' Union would report for work tomorrow,

They expected that practically ali mines to be shut by Wednesday 414 13 result of the suspension of pension and midleal pay- mente by the miners' Welfare Fund.

Mr John L. Lewis, the Union President, has made no official strike call but mine operators claimed that local developmenta were the start of "famillar pattern."

They claimed that the union was securing general Lirike under the guise of a spon- Lanenup walk-out by the miners. Reuter, 13

The Court was convened | Master and the First Omeer. to investigate the explosion Mr. B. D. Johnson, while Me

of. Hastings, J. L. Lynn, on board the vessel, owned holding a watching brief on by the Indo-Chinn Steam behalf of the Indo-Chin Navigation Company, which Steam Navigation Co., Ltd. occurred on the night of Sep- the Court has been convened on The Presiderit announced that, tember 7 when a typhoon the recommendation of himself was threatening the Colony. nnd of Jardine, Mintheson and The ship was then in the Co., Ltd. agents of the it Dangerous Goods Auchorage fated vessel. and sank after being com- pletely destroyed by fire."

EVIDENCE GIVEN

After W. R. K. Collings, Act- Capt Edwards paid tribute to ing Surveyor of Ships, and the courage and atamanship of given formal evidence as to the crew of lifeboat from the plans,

Capt Edwards entered

steamer Nowrooz, which. was the witness-box and gave he

tho first to come alongside. evidence seated. The wind and sea after the ex- plosion Increased strongly and handling of lifeboats

wns CX-

Capt Edwards said that the Chakrang led up to huby 13 at about 9.15 am. on Septem-

Away At Too Fast

A Rate Despite Aid

DECISION FOLLOWED BY WORLD-WIDE MARK-DOWN

OF SOFT CURRENCY

LONDON, SEPT. 18.-SIR STAFFORD CRIPPS, CHAN. CELLOR OF THE EXCHEQUER, IN ANNOUNCING THE DE- VALUATION OF THE POUND STERLING FROM $4.03 to AMMO DUMPS, $2.80 IN A NATION-WIDE BROADCAST TONIGHT, SAID THAT THIS STEP WAS THE MOST SERIOUS THAT THE GOVERNMENT COULD POSSIBLY TAKE, AND "WE ARE TAKING IT, BECAUSE OUR PRESENT STERLING-DOLLAR DIFFICULTIES ARE, WE BELIEVE, OTHERWISE INSOLUBLE."

BLOW UP

the

Cairo, Sept. 18.-Am- munition depots in Eastern part of Cairo blew

up in dimensi traten dous explosions tonight.

The police said there might have been casualties,

Ambulances and fire apparatus were rushed to the scene.

Red flames roared in a sky

which was filled with heavy

tremely dimeuit and dangerous. ber 4 and general discharge of yellow smoke and the stench of

Earlier in his broadcast Sir Stafford said: "Though we took the decision before the Foreign Secretary and I left for Washington, we did not then announce it because we wanted to tell our American and Canadian friends first and to inform all the members of the Commonwealth and also because it takes a little time to arrange these matters."

Sir Stafford appealed "most carnestly and with all my strength to burnt cordile, The Members of the Court cargo was commenced and con-

The first explosion came at our manufacturers and exporters to redouble their efforts to sell their aro Mr Neill Garland, (Marine uued Intermitten ly untli Magistrate) President, and Cap- September 6. During this the 2708 GMT, quickly followed by goods in the dollar markets."

five other blasts. Thousands of persons ralsed shouts of fear

Explaining why the step taken was contrary to what he had stated and astonishment at the rapid,

on behalf of the Government in July last, Sir Stafford said that Britain's scarth-shaking barrage.

Steel-helmeted police, carry--gold-reserves-began to run away-at-much-top-fast-a-rate, despite the aid- ing shields and staves, dis- she was getting under the Marshall Plan.

tain J. N. MacFarlane (Master there were some packages of Mariner), Professor J. E. Driver export cargo, including chemi- (Professor of Chemistry, H.K. cals, loaded. At 8 a.m, on University),—Mr J.-Redman Sep ember 7. the vessel (Government Chemist) and shifted to buoy A15 Lieut. Cmdr J. P. B. Stirling

Dangerous Goods Anchorage persed (R.N.).

Mr D. L. Strellett, of Brutton Co is representing the and

EDITORIAL

In iba

and while there during the day small quantity of chemicals and general cargo was taken on (Continued on Page 5)

a crowd, estimated t 10,000

which

had persons, gathered in the arco, endanger- ing their lives should another explosion occur.-United Press.

Policy In Japan

AST week's sintement by the American

LAST week's one than

he and Mr Bevin were agreed upon the urgent need for a Japanese peace trenty is a surprising departure from recent American policy in Japan., Two years ngo his statement would have been under. standable. Both Britain and Amerlea were then in favour of an early treaty. Britain thought the resumption of British commerce would ald the general recovery of the Far East, and provide an expanding field for British exports, America looked benevolently upon Japan as a new outpost of democracy nnd considered the occupation to be a costly business which could well be dispensed with. But since then the widening of the East-West spillt, and the Communist advances in Chino, have caused a change in this attitude. Only a few weeks ago Mr Tracy Voorkees, American Assistant Secretary of the Army, suid in Washington that the United States Government entertained little hope for

elther

treaty pence of the withdrawal

American troops from the country. The implication of thin-and of recent developments in occupation policy-has been that America realises the importance of Japan in the #cold war" against Communism, and

·Intends to keep troops there until Russia gives up her expansionist alms in the For East. Concessions recently granted to the Japanese by General MacArthur have suggested that America wishes to have Japan accepted as 1 friendly, Independent nation, without the signing of a peace treaty. MacArthur has recently permlited almost all classes of Japancso to travel freely abrond, and sanctioned the employment of Japanese technicians avereras. He has granted permission for international broadcasting by tho Japanese, and their participation in ́inférnational conferences and agreo. has even authorised

or

ments,

A

now

"If we could not stop that might take place, people tried

pounds Sterling drain, those reserves, which to turn

Price 20 Cents

27680

Sir Stafford Cripps, "Chancellor of the Exchequer, who announced devaluation in a broadcast speech lust night. He is seen holding the battered brief case used by many of his predecessors in office, and which followed him to Washington recens).

U.S. Policy On Issues Facing

U.N. Assembly

Lako Success, Sopt. 18-The American Ambassador at large, Dr Philip Jessup, today made public the official Nations General Assembly, and particularly emphasised United States position on top issues facing the United problems in Asia.

form of trustceship, and Italian administration or Somaliland

ship.

Dr Jessup urged the Assembly, which opens on Tuesday, to seek a solution under United Nationa trustee- to African as well as Asiatie problems, through construc- 2. Indonesia: The United Truman's "bold new pro- session tive measures like President States is optimistic that The

Hague conference now

would gramme" of technical aid.

bring brand agreement" on an independent Indonesia_tled- to the Dutch Crown, and that therefore the Assembly would not have to deal with the probleni

HONGKONG served the rest of the Ster gold and dollars by all sorts of their energies for

REACTIONS

The Hongkong Stock Ex- change was open for business.

of men

ing Area as well as our- selves, would disappear," he said.

In thinly-cloaked criticism of soviet tactics, Dr Jessup warned that efforts to provoke the people of Asin and Africa to into violent uprisings "may absorb a ume, bul can nover solve their problems,”

Dr Jessup's important site DIFFICULT TO STOP

ment of polley was made na "That is

dimeult meeting of the American Asso-

devices

reserves.

new

to overcome the

a very

to take

PALESTINE

in

3. Palestine: The United

States hopes the Assembly will provido continued support for Uto hundreds of thousands of Arab refugees uprooted by last

South

All Hongkong exchange "We must stand on our own thing to stop and there has clation for the United Nations at year's Palestine warfare, but banks suspended exchange feet in this matter of dollars. We been a good deal of it going on New York's Waldorf Astoria this autumn's Assembly cannot

must not run any risk of large latterly. With low reserves wn Hotel. Dr Jessup underscored be expected to resolve all poli dealings today pending reale unemployment", he added. cannot afford losses of that American

concern Dver the tical differences, since the full clarification of the position

upheavals in China and through- Fonts Sir Stafford uld it was essen-kind. We had

reports of the Palestine Con- out the Far East by devoting aciliation Commission will not be Tollowing devaluation of til to fix the new rate at a level steps to stop it. the Pound Sterling. Ordin- that Britain could hold: "We "That was one reason which good half of his speech to the ready in time.

If convinced

10 problem of rising nationalism in us of the need ury banking business went can always let the rate go up

4. Korea: The United States cvents

that we

Asia and Africa. prove

have lower the Sterling rate of ex-

the feels

Soviet-boycotted on as usual.

gone down a bit too low." he change to a new rate which

commis- added.

watch-dog would stop this

Dr Jessup, who became na-Korean drain on our

tionally prominent

should be strengthened last spring on "We thus start upon another

in his private Berlin talks with and kept on the scene untit It was declared that London stage In the magnificent struggle

"It was essential to x that the Soviet delegate, Mr Jacob the security of tho

United business uld not affect the our people

rale of a level that we Malik, said the United States Nations-recognised position

of Hongkong shares.ushing difficulties imposed could hold.

believed that peoples desiring Korean government is no longer There was a large attendance upon them by their sacrifices in

"The Government decided-Independence should be glyen threatened by raids from the the world war. We have, so far, and we told our American and it "quickly and ronerously." members.

**Communist-controlled Northern The

Chinese Gold and Silver succeeded, and it is no time now decision on the first day of our perialism, he warned against a

Canadian colleagues of this However, while attacking im Zone,

6. Technical Exchange Increasing and

nid for under- usual Po opened

falter or hold back." he There were many transactions stated.

arrival before starting on any isorderly to Indepen developed areas: The United

shift discussions or consultations--to dence which merely precedes

States fully supports the re- la commercial gold, which ros¢ by $35 per tael, being quoted

reduce the dollar exchange equally sudden dictatorship of a commendation of the Economic value of the Pound Sterling. this morning at $335 against

small group acting under the and Social Council for a con- In the last few "In Saturday's closing of $300 per

tew days we have direction of a foreign power.

on organising a UN Sir Stafford continued: "In

what the

technical aid programme. rato now thel

the light of the renewed pro- and now I have to Native

money mises of co-operation from the tell you of that decision-it is changers declined to sell U.S. members of the Commonwealth, that in place of the present rate, dollar notes this morning, bul

from the United States. and axed in 1946, of US$4.03 for would help Independent people were willing to buy at rates

from our friends in

Western

ther ranging between K36 to $0.20 Europe, we have, on your be- future be US$2.00 to the Pound, freedom from external or in-

the rate will In everywhere to Western the Pound, US$1. The

half, accepted the challenge of

"Wo can always let the rate lernal attack. closing rate was $5.58.

the times for fresh and decisive up if events prove that we Dr Jessup outlined American action, convinced that it will have gone down a bit too low policy on these top issues: bring us Billi nearer to our goal of happiness and prosperity for ONLY SOLUTION our people."

the Japanese Government to re- sume "semi-diplomatic" relations with other countries. He justifies these con- cessions by the claim that the country is

thoroughly democratic.

is It unfortunate that his confidence is shared by so few independent observers, Japanese leaders are falling over themselves in their anxiety to impress upon the General how democratic the country has become. But their very unanimity suggests that they are merely paying lip-service to MacArthur. There are disturbing signs that the pre-war ruling clique is well on the way to reasserting its power over the Japanese people. This in a serious threat to realisation of the allied objective of a stable and democratic Japan. If the reactionaries succeed with their plan to re-establish their old control there is sure to be a corresponding swing of liberal elements to the Left, and a strengthening of the Communists. There Is already ample evidence of Communist activity in Japan. Illegal strikes, attempts at sabotage and train-wrecking aro frequent. Mobs waving red flags have. besieged. police stations, and workers have barricaded themselves in factories in protest against the Government's indus- irin¡ policy. There have been many acts of violence, and there would undoubtedly be many more but for the restraining Influence of American troops. The signing of a peace treaty and the with drawal of allied troops would be the signal for an open battle for control of the country. If democracy in Japon is to be a reality the occupation authorities must continue for a long time to hold the balance between the extremisia of the Right and Left. The need is not for a relaxation of occupation centrol, but, for Its tightening up. · Considerably more concrete evidence, ́of a conversion ; toʻ democracy is needed before the allies can safely get out of Japan,"

per

banks

and

week-end

Gen. Gordon

Passengers

of

CHALLENGE ACCEPTED

*ah

POLICY OUTLINED

He said the United States

protect

ference

B. Greece: The U.S. belloves there has been "real progress? In the past year in reducing the guerilla threat and cutting ald from abroad to the rebel forces.

THE BALKANS

7. The Balkan natione: The United States will push for UN Ingelion to induce, the Communist 1. The Italian colonies: Jependence for Libya in the Overnments involved to ' use "Anollier | reason I have

near future (reported to mean treaty machinery for the settle Earlier on, Sir. Stafford said: already mentioned we had to two to five years), cession of ment of disputes or to send the "We and the Sorling countries increase our power to

case to the International Court I but the Westdris province of the Commonwealth, like dollars: That is the only per- Eritren to Etalopia, incorpora of Justice. Australia, India and so on, all nianent solution for our difcution of the Western province 18. The do a lot of business with the tic-to earn more dollars.

today dollar area and we pool our

Sudani "We must either earn released a third list of about dollar earnings. So though this dollars or spend less to get a cittier directly or through come 1.000 foreiguera who will he problem

offecia •Tho "United balance. Merely to cut down allowed to leave the city in the Kingdom particularly as our spending and do nothing to 17.707-ion American ilner, bankers for the Sterling Area Increase our carnings is a policy General Gordon.

Shanghai, Sept. authorities In Shanghai

more

of desperation and not one that wo could adopt."

in Anglo-Egyptian

B. Freedom of information: the the United States wante

EMIR SENUSI general approval of the conven-

TAKES OATH

proposed convention on freedom of information, dropped for the resent beenuse it is felt hore there is little chance of getting

tion that would not "contain restrictive provisions sweeping exceptions

"broad

and

The liner is expected to leave it also affecis the whole Sterling Aren and, in fact, the whole after staying 24 hours in the

non-dollar world. port.

About 1,500

passengers plan

"Nor can we solve it alone to leave the vessel at Yokohama dan Wuntries in part to catch planes for the United cular must help us and the States and other countries-reat of the non-dollar world to Reuter.

flour.

of state. The Hongkong office of the earn more dollars,

"Talks had American President Line anld

started Inst noticeable increase in retall The ceremony at midday today they had no spring about bur exchange prices for the time being, Sir by Ministers designate as well | Uime, but reaffirms fis willing- Fedvice from "their head office rates in a way which led in Stafford said.

4 by prominent members of ness to scrap its atomic stock= the when n fool-proof interna- that the Gen, Gorden would call doubt as to whether they were He warned that over the next the Benusi farally and at Shanghal. The ship is due not to high. Once It was fow monilis a few articles made | Congress Executive Committee. tional atomic control system is In harbour this aftörnoon.

suspected that a lowering (Continued on Pagu 8) |--Associated Press.

narrow Speaking in simple, "plain man's" language) Sir Stafford

Instend Benghazi Sopt." told the prulinary Britons that hnus today signed the provision" should be included in devaluation would mean an las constitution of Cyrenaica and the covenant on human rights. crease in the price of bread and took the oath of office as head 9. Atomic Energy and Dig- armament: The United States But this would be the only

'g."und no

illusions that was attended | fendlocks can be broken at this

In_effect.”-United Press.