1949-09-20 — Page 1

HONGKONO TELEGRAPIL

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SOUTH CHINA MOANING POST, LTD,

Erimine:106 BUNDET

The

Today's Weather: Freak' gusty easterly winds, cloudy with aliówers.

Noon Observations: Barometelo pressure, 1010.7 mba, 29.85 in Temperature, 19.1 deg. F. Dew point, 70 deg. F. Relative ..humidity, 93%. Wind direction, E by 8. Wind force, 25 kits.

3.10 p.m.

Lów water: 2 ft. 2 in at 3.10 p.m. Hali water: 5 ft. 1 In.

at 9.58 P

Hongkong Telegraph

VOL. IV. NO. 222

CHAKSANG

INQUIRY:

Chief Officer Discovered An Acid Smell

The

"I could definitely get an acid smell. smell of a safety match it afterwards was the same smell as in the explosion," the Chaksang's Chief Officer, Mr Brian Johnson, told the Marine Court of Inquiry this morning.

Johnson said this when questioned about the explosion which sank the Chaksang in the Dan- gerous Goods Anchorage on the night of September

7.

+

The Court is investigating the explosion which com-

KOREA SENDS pletely destroyed the vessel,

SOS TO U.N.

ASSEMBLY

owned by the Indo-China

Steam Navigation Company

on the night of September

7. Among her cargo at the

time were chemicals.

"I was awakened by a violent when I Lake Success, Sept. 19-hock and flash, and

came to my senses 1 was stand-

my bunk," Chler

Koren appealed to the ing near United Nations today to Olcer Johnson said. I went out and saw help it hold the line against onto the boat deck

the whole of the foredeck

"the Communistic expan- ablaze. sion in Asia."

The plen was made in memorandum by Korean repre- sentative Chough Pyung Ok to the 50 members of the General Assembly, He said the Korean people are determined to fight to the last man against Com- munism, but they need help.

If Southern Korea become a bastion of democracy

the Far East, in

to

whistle "The

commenced blowing and continued for long afterwards. I could not see any damage because of the fire. The Second Officer and a Chinese Quarterinaster then appeared on the boat deck, and together wo cleared away and lowered No. 2 boat on the port skle to the level of the main deck.

"I went with the boat aud ho said, then clambered back on board, "urgently needs strengthened returned to my enbin, and got hold of the cargo papers, I security forces."

to sec.that the Mr Chough said the Korean-Was then able Republic hoped to build in the cabing were completely wreck-

ed. Immediate future # regular

"During Uiis time I saw the

TUESDAY, SEPTEMBER 20, 1949.

BRITISH

FLYING

TRIANGLE

An unusual view of the Avro 707, a research aircraft, which was recently shown to the public at the tenth flying display and exhibition of the Society of British Aircraft Constructors at Farnborough, Hants, The plane has been dubbed "The Flying Triangle.” The show was attended by people interested in aircraft from all over the world.

Vine

At the

For

P.G.

Reservations

Price 20 Cents

Tel: 27880

CRIPPS SHOWS OPTIMISM OVER DEVALUATION No Cuts In Defence Or Social Services

London, Sept. 19.-The Chancellor of the Exochequer, Sir Stafford Cripps, today defended his optimism over the Washing- ton financial decision and last night's dovaluation of Sterling. Confidently facing over 400 world newsmen he declared that by devaluation the British Government had provided the big incentive to exporters which he had promised in Washington.

Blockade

Breakers

talles

hact

Sir Stafford said he had But, he said; the communique not suggested that the de-atter the Washinten talks had valuation of Sterling would been Issued with the knowledge

of the impending devaluation. show an immediate increase

The Washington in exports to dollar coun- seen successful tries, but he belloved an in- sad been aimed at a long-term

because the

use they crease would come in time! lution of tho dollar-problem. und that belief was borne Th Chancellor declared that

the whole point of the Washing out by United States re-

top talks was full recognition action to devaluation

that to succeed in reaching a "We hope that the ultimate long-term solution of the dollar end of this will be a higher problem it must be regarded as volume of trade from Britain Joint problem requiring joint and Europe to Canada ond action. Shanghai, Sept. 19.-The across the Atlantie," Sir Stofford this had been the arrangement

America and from them back

The greatest contribution to

Southwest China Now Cause

Politically

Stable

Canton, Sept. 20.-The course being followed by the Nationalist Government today in all its military and political aspects has the long- range goal of preserving Southwest China. In the eyes of many of the Central Government's leaders, including Chiang Kai-shek, Chungking is far more important than Canton as a base-from which the fight against Communism will be carried on.

Big Stir

Bald.

agents of the American Isbrandtsen lino ships, He declared that Britain for continuing consultation at Flying Clipper and Flying would cut neither defence nor high level.

NO DEFENCE CUT Independent, which broke social services expenditure_as part of her economies in Go- the Nationalist blockade of vernment spending.

· Sir Stafford said that the United States, Canada and Bri- Communist-held Shanghai "All that remains is administain had recognised that the on Sunday said they would trative expenditure." he said. Pound Sterling and the dollar sail for New York in a few

Sir Stafford said he changed were in a predominant position days with 10,000 tons of his return from his recent coa-lieved that not only Britain but

his mind about devaluation on in the trading world. He be de-cargo and a small number

overy trading country would in of passengers and mail. He reviewed the position then benent from the decision made

and realised that something had at Washington. to be done.

army of 100,000 men with an Third Oficer in his cabin, His additional 200,000 in reservo.

valescence in Switzerland foco was covered with blood.

PAPERS IN WATER

To do this, he said, the govern- ment must have outside aid.

Korean

memorandum

The

whero

after

Consolidation of the en-against the Nationalists, there tire Southwest has been the would have been little incentive chief reason for Chiang Kai. 10 keep on Oghting for South shek's long stay in Szechuan

"I went aft to the cookhouse made these proposals to the

by this time the reprovince. Assembly:

of the crew appeared The U.N. Korean Commis-mainder sion should be strengthened into be mustered. I then assisted

In clearing nway the number and

and the len boots, and threw my cargo military advisers to check on papers to the Third Officer, but Communist guerilla activity and unfortunately they went in the border incidents.

water. 2-The U. N. should declare

Fourth Engineer Quealey and that member nations will be

myself then returned to the ably jointly responsible for the secu-

to ilty of the Republic.

it any persons remained 3-The U. N. should advise on board.""

one

or more of the Western powers to give the Republic nilitary aid in the form of sup plies and equipment,

Questioned about the nature of the explosion, Chief Omeer Johnson said he could definitely get an ack smell. "After the 4--171c Assembly should nad explosion, when

1 a We some means of avolding a new cigarette, immediately after the Soviet velo on the Republic's flare of the safety match we application for U. N. member got the same taste and smell ship.-Associated Press.

(Continued on Page 5)

EDITORIAL

of the

It is no secret that the situn-

Szechuan tion in Yunnan and

China,

in Chiong's handling of the licate political problems Kunming and Chungking.

Governor. Lu Han moved fast; The "double blocltade run" nt Kunming to carry out the caused a big stir here,· More- terms of the agreements rench over, the cargo that the ships ed with Chiang Kai-shek. The carried was the largest consign-had been dealt with Communist tinged Provincial ment

of

were

Heretofore, only

"

Questioned on details of tho Government's plans for cutting domestic expenses, Sir Stafford said, "We shall not be able to cut on defence. We shall not cut the social servloes, What remains le administrative cx-

and penditure,

we shall economize thero wherever possi

Government

POLITICAL STABILITY

SERIES OF RISES Now that political stability,

The dollar-sterling problem at least on the surface, 1135

by sem Defence of Chungking, not

since the final days of been achieved, the Generalisi-

Council was dissolved, schools normal trade before the Comporary expedients, followed by only as an important geographi

mo can pay fuli attention to

suspected and newspapers

series of

each ex- of rises as cal point sill on the Nationalist directing military

munist occupation of Shanghai, strategy fostering Communism were The cargo map-but-its-preservation-as-This has already begun.

perent became exhausted includes cotton, "Now we realise that closed, and many persons

is not symbol

defeat of

which will be fed into textile There was considerabic specu- believed taken into custody.

enough, Sir Stafford cald Japanese, is way-in the military sense as already under

lation recently when Nationalist

He had sensed a feeling in ble". The Szechuan situation called mills here. well as the political.

troops under Gen, Hu Tsung for less direct action, as it -

The British two small many quarters that the Wa- went into action voived clashes between person ships nan suddenly

run the shington talks had not produced would do everything it could to. managed to Shensi

province. Their allties rather than ideologies. presence there had been almost Almost from the time he was Nationalist blockade. They were ally concrete result. Its satio- assist and stimulate private en- faction had been criticised as terprise to go out after dollars, provinces, before Chiang Ka forgotten except by those whose shek look personal cominand,

job 11

It is to keep track of all serious threat to Na- arces. tionalist prestige.

Gen. Hu went If the dis

over to the sident elements in those two offensive against the Reds provinces, elther Communist ne southwest of Papchi as the first Ambitious local commanders, had step in the defence of Chung- succeeded in setting up a burrier king. Chiang Kai-shek, is be-

lieved to have concluded that Chiang Kai-shick called the

London, Sept. 19-Mr Win- | the Governmeal's "proposal for the Communists still north of disputing officials together, first

The Foreign Trade Bureau ston Churchill, the leader of the a then Chengtu,

permanent solution of the the Yangtse and west of Hand Chungking, kow were a more direct threat and summoned some of the as approved officially the en- Conservatives. and the Liberal economic crisis"

Nationalist Government's top try of the American evacuation tender, Mr Clement Davies, figures from Canton to give him ship, General Gordon, which is today both urged an immediate support in solving local prob- expected here on September recoil of Parliament to discuză tems. Among these was Hsu 23.-United Press.

the situation resulting from last night's devaluation of Sterling.

Wan

Discussing Devaluation

D totally unexpected, despite the many

EVALUATION of the Pound was not situation, and some of these may undergo

fat denfels by official British quarters, the most recent being issued as late as last Wednesday. Tho open market value of Sterling had been slipping for months, and devaluation became Inevitable as soon as the world made up its mind what the Pound was worth. Only steady improve ment in Britain's economic position, and successful plugging of the drain on the Sterling Arca's dollar reserves, could have prevented it. The unexpected part of the announcement in the new rate that has been fixed. It is certainly much lower than most people had. been prepared for who had thought devaluation necessary, but, an Sir Stafford Cripps sald in his broadcast speech, "we can always let the rate go up if events prove that we have gone down a bit too low." Whether the present rate represents the true levol between the.Pound and the Dollar, is debatable, but as much open market business went through lately at around the rate now fixed, it may be called a realistic level. The inevitable, having çoms“ -- to- pasa, the question now. is whether the mensure will have the effect it is intended to achieve. Briefly, the object is to check any further lowering of dollar holdings while an effort is made more dollars. To earn more dollars, it is hoped to sell more British goods, -- which will now be cheaper in terms of dollars. It is too soon to fore- will work out as cast whether this satisfactorily as anticipated, as there is multiplicity of factors affecting the

to earn

to Szechunu than those in Hu- han nid Klangsi provinces.

RED PUSH STALLED

con-

given the Southwest Command, the British ships, Edith Molier being "slightly overdone." he said. Reuter. Gen. Chang Chun found him- and Icongbee. self at odds with Szechuan pro- vincal authorities. He tried repeatedly to resign..

that

LOCAL PROBLEMS

to

Observers belleved that the arrival of the American ships might mark a turning point in the blockade situation and that other big vessels now might at- tempt entry.

Was

in

MISSING

MAY BE

ALIVE

for the

ly.

factory settlement of the major Long-range military plans, it issues. Is believed,

Al hough provide

Chiang Kai-shek

ment fails to hold inces

and Fukien

and

said

RECALL

PARLIAMENT,

DEMANDS OPPOSITION

Parliament is not due to meet again until October 10, Reuter. ECA CHIEF'S VIEW Washington, Sept. 19,-Pau) Hoffman, chief of the Economie The Prime Minister, Mr Co-operation

Administration, Clement Attlee, is not expected called Britain's Pound devalun- to decide on his answer before

im-

the end of the week, but omciation today a bold, Imaginative

mensura" with far-reaching. quarters inlicated that "carncal portonee to the success of t consideration" would be given Marshall Plan. to the Opposition leaders ro- queat,

Recovering

He told a press conference that the action significs Britain's from the Arst intention to "copture dollars" shock of lust night's sweeping through competition In Interna devaluation, British trade union-tional trade

Such

measures are essential Toronto, Sept. 19.-Redits and industrialists are plan.

ning their next moves.

| to her recovery, fie sald, and te ultimate loss of Canton-but will continue to make his head Cross officials today

Bots the General Council of the success of ECA.

and not without a determined stand.quarters in Tolwan, he la ex-they thought that most of the Trade Union the

Congress

Mr Hoffman asserted ho had 84 people still But in the event the govern- perted to give more attention the

the un- National Union of Manufac favoured devaluation for some Kwang ung to defence of the Southwest by

Pai frequent visits to Chungking accounted for after the plea-rers Administrative Commit-time but felt that the decision

are are to sure ship disaster in Toronto discuss the now situation.

meet tomorrow to must be made by the British. Chung-hsl is expected to with- United Press.

Ile added: "It was my opinion Docks would be found safely Mr Davies,

after a meeting but never exprosed--that the Parliamentary Liberal devaluation would clear the at home in the United of

Party Committee today, wrote way to earn more: dollars and lo, the Prime Minister asking open the way for more, perhaps The known death total was for an immediate recall of very great, Increases in trade 121 and it was unlikely that it Parliament

the between European countries," would reach the 200 mark pre-dovaluation of the Pound.and Associated Press, dleted earlier, the officials said.

draw his Hongyang command armies Into Kwongs, and if necessary, to take them as far Kwangal-Indo-China as the border.

So He Tsung-nan was order-Kan; Minister of Finance.

There were persistent reports ed to go ino action. As far as change or modification. Cheapness itself,

Chlumg Kal-shek can be learned, and even taking however, will not necessarily sell more

wi h difficulty the usual over-optimism of meeting

solving the issue of overlapping British

unlcial dispatches into goods, but It will indubitably

but these sideration, he has accomplished authority,

brought attract the potential buyer and place the

what he was ordered to do. a rong official denials, including seller in a favourable position. British

personal The Communist effort to reach

cable from the sales methods have hitherto

the Szechuan

Generalissimo met with

border by the Ger

Kuomintang In the Tsining mountain much criticism; an excellent Incentive in

routes has headquarters here.

with snila- been stalled, at least temporari-credited himself now provided for these to be brought up to date and to a state of efficiency that can stand fo competition. Production

up methods must also be brought up to competitive standards. Again, popularity of British goods is almost certain to lead to a lowering of prices of some American goods. There is also the question how far prices of British manufactures can be maintained at the cheap level modo possible by devaluation where there is dependence on dollar. procured raw materials, which will 'naturally cost more. Devaluation will also mean that Britain will have to pay higher prices for dollar-bought neces sities; for instance, flour will.now.cost. more, and brend prices will go up in. proportion. If the British worker Is going to demand more pay when he finds his cost of living has risen, thus bolstering production costs, the benefits expected to follow devaluation of the Pound are likely to be erased. The scheme - cannot be regarded as a permanent economic remedy, but as a short-term palliative It holds out a good chance at least for strengthening the Sterling Area's dollar position, without reaching which point it would be clently Impossible to plan any farther ahead.

Scaffolding Stater

Collapses

Three workmen were in-

Troops under Gen, Liu An- chi in Kwangtung and Klangsi and Gen. Tang En-pa in Fuklen, which might be pushed back the waight of the 15 under

Divers searching a section in armies that the Communists jured and sent to hospital the stern of the vessel, the have in those areas, would be this morning when part of Noronie, have been unable to locate the "60 or 60 bodies" moved to the Southwest in as the scaffolding at the site of which some fremen believed Hreat numbers as possible under the new Cable and Wireless had been trapped thore. transportation limitations.

building on the waterfront collapsed.

OPTIMISM FELT " Orders went out shortly after Chiang

resched Kai-shek

The men were on the ground Chungking to find and send, by floor and were buried under the timber and bamboo. Their some means reinforcements to colleagues quickly sent for the Gen. Chang Chun. Bouthwest commander at Chungking. They Fire Brigade while an allempt will be long in reaching there was made to extricate them. by overland

and air

Two of the workmen suffered routes: belled upon to somewhat serious injuries, to the transport

MAY deliver them to Gen. Chang,head and body. The third was Government lenders are ex- only slightly hurt. They were pressing epiimism over what all sont to the Queen Mary they consider complete success | Hospital:"

Already, a fow people who worn belleved to have died in up the disaster have turned

alive.

in

to

to

discuss

CANADA MAY DEVALUE

DOLLAR TEN PERCENT

1.

Ottawa, Sept. 19.—An authori-¡simultaneous) with Sir Stafford tativa source told the United Cripps' announcement. Press at noon. today that the The battle within the Cabinet Finance Minister, Mr Douglaswan anid to have raged alt Abbott, would announce the de-week-end. The Cabinet first valuation of tho Canadian mot on the matter on Friday Appeals, are being made

dollar..

night. It continued, meetings American cities for survivors

Jon Saturday unit almost mid- The source indiented the night and was in seselors again come forward and report that they are safo.

devaluation would be tan per-today-United Press. A minor fire broke out in the cont

GOLD SHARES BOOM Noronie last night although it However, a sharp conflict of had rained most of the day.

London, Sept. 18-The mont views had divided the Cabinet The blazo was quickly put on the currency Issue, It was obviour' financial", result of the out, and today divers were con-learned. It was for this reason (new Sterling rate was the booms Unuing their search for bodies. that Canada's devalutation- step in gold shares-notably in Lon-

was not announced last night [273 (Contkind-on prNG BYRNE

·