1949-09-22 — Page 5

1

M

DEVALUATION ROUND-UP:

THE HONGKONG TELEGRAPH, THURSDAY, SEPTEMBER 22, 1949.

Pakistan's Decision Causes Surprise

INTERPRETED AS DEPARTURE

FROM

STERLING STERLING AREA

London, Sept. 21.-The decision of the Pakistan Govern- ment not to devalue its rupċe was given wide prominence in the British Pross today,

The non-devaluation decision reports from Karachi were printed on their front pages by most of the popular London dailies, under such head- lines as "Pakistan's Surprise.”.

The Conservative Daily Telegraph said that "the decision of the Pakistan Government last night not to devalue the rupee in relation to the dollar, în conflict with India's devaluation step, is a blow to the last vestiges of economic unity in the Indian sub-continent. Pakistan will, in effect, leave the Sterling Area.

.."On

short-term A Pakistan has much to gain by maintaining the dollar value of her rupee. In A nornial year she can expect to export wheat and cotton. Sho la

purchasing

view £160,000,000 with the United Kingdom will decrease, these circles sald,

They felt that Pakistan had to make her choice between smaller dollar carnlngtu ntist maintaining the value of her blocked Sterling balances, maint ining the present favour. able balance of trade with the dollar areas and possibly allow. In the value of the Sterling balances to depreciate.

farce quantities of caplial goods From the dollar arca and naturally wants to avold pay. ing more rupees for them".

The printed the new rupee exchange rates under the heading "Pakis- tan Out Of Step."

was be

Manchester Guardian

in the same way as the Belglan

which frane, to

it is tied through the country's cronamie union, it was oficially utinoun- ced today.

GERMÁNY: Final decision on devaluation of Uio Deutschtark

expected within the next 21

hours.

Herliners, feuring devaluation, today formed long queums at exchange booths to buy Enst-

marks,"

INDIAN FORECAST INDIA: The Reserve Bank of India announced in Bombay that it will not quote any rate for the

The decision caused surprise, Pakistan's decision

rince Arancini eiretes here had Heved by Apancial eireles hera

expected Pakistan to fail in line to have been influenced by the fact that if she devalued, her with Die rest of the Common-purchase and sale of the Paris- ion rupee-the only Dominion doliur earnings

wealth Sterling Area countrice. through her

currency not to be devalued. jule, hides and skins, and cot-

Banking and business circles- 1on would decrease.

Those circles confirmed that the decision not to devalue would Rive Bh Impolus to in Dombay wald that Pokiston's the Dominion's Industrialisation decision was unlikely to work

present

because capital goods, which

goods, which out satisfactorily and forecast a

Palcstan mainly imports trom "breakdown" of

the

These commodities have been giving Pakistan, since its in- ception on August 15, 1047, a favourable balance of trade

the dollar areas, would on Pakistan rupee before the end with the dollar area countries.

tinue to flow at the same prices.

of the current Juto season WILL GIVE IMPETUS TO Her decision will mean that (January-February) if not ear-

British goods will be sold more Her. INDUSTRIALISATION The decision may mean that cheaply that at present and this the value of Pakistan's blocked will create a bigger market for Britain In Dominion, they Sterling balances of

observed.-Router.

about

Devaluation Opposed By French Unions

Call For Wage Rises To Offset Effects

French Paris, Sept. 21-The_Fre General Confederation of Labour today condemned the devalua- tion of the French frane against the dollar and demanded km- modlete WAKO bercases to offset the anticipated rise in the cost of living.

The Communist-led Con- foderation, the largest union | body in France, said in a stale- ment that "devaluation traditional means of impoverish... | Ing and exploiting the working masses."

The devaluation which has just taken pince is, moreover, to the profit of the American trusts and to the detriment of our national Interest," it added.

7-POINT DEMAND

It called on workers to react against Bie devaluation

24 NATIONS FOLLOW BRITAIN'S LEAD

London, Sept. 21, Four nations Spain, Argentina.. Chile and Uruguay-were still uncertain tonight whether or not they should devalue their currencies

Uhe total of nations following Britain's lead

mounted to 24.

in

TURKEY:-Competent circles Istanbul sald that tho Turkish currency would not be devalued.

SWITZERLAND-The Swiss tourist industry stands to lose Its three biggest customers as á result of devaluation in Britain, France and Belgium.

Swing National Bank om- clals denied that any devalua- was envisaged at the ton moment, but some commercial circles thought that it would

m

have to come sooner or later.

6,000 GALLONS OF RUM

A thousand tons of

wall to be! sugar canE ground and assayed at one of Puerto Rico's "Centrales" in Rio Piedras, The pile will produce 6,090 gallons of

runi.

ANOTHER

SOVIET

PROTEST

Italy's Inclusion. In Atlantic Pact.

London, Sept. 21.- Brian las received a second Soviel protest alleging that Italy's in- clusion in the North Atlanik Fact violates her peace treaty. a Foreign Offler spokesman dis closed here today.

He said that a note, dated MOSCOW-A change in the September 19, was sent to the which have There countried

rouble-sterling rate to 14.04 to Foreign Ofico by the Sovic. nlready devalued their curren- cles Include: Britain, Australia, the Pound Sterling

an Charge d'Affaires in London is Greece, Holland, Iceland, India,nounced today by the Soviet reply to a British communien Indonesin, Ireland, Iraq. Jarac State Bank for Foreign Trade.-- tion of August

2 which itself Luxembourg, New Zealand, Reuter

was an onswer to the Arst Soviet protest.

The new note recapitulated oid arguments and stated that the Soviet Union was unable to recept the British position, the spokesman stated.

Norway, Portugal, South Africa and Sweden.

•The WestermanTM mark-tah expec'ed to follow soon.

Latest news on the devalua- tion position follows:

Was

Burmese Air

PORTUGAL: The Portuguese Force Claims

Government today devalued the escudo in terms of dollars and Sterling.

The new rate for the dollar was fixed at 28.75 escudos, Co- pared with 24.05.

The Sterling ra'è Ls 80.50 cacudos, compared with 100.50.

This represents a depreciation of about 15 percent.

the

Successes

Opposition Supports Chifley's "Very Difficult Decision"

BUT MENZIES WARNS OF JAP COMPETITION

Canberra, Sept. 21.--The leader of the opposi. tion Mr Robert Menzies, speaking in the budget de- bate in the House of Representatives today said that the opposition would not challenge the "very difficult decision" made by the Prime Minister, Mr J. B. Chifley, maintaining the existing sterling-Australian exchange rate.

Mr Menzies said, however, that Sir Stafford Crippa' decision on an unexpectedly heavy depreciu- tion was "not so intelligible."

Ile warned that devaluation and production cos's up, ond would mean that Britain would asked; “Wint then becomes of have to sell 44 percent. mare | the iden. that you can enter Bie goods in the United States to dollar market in a big way and break even, '

sell goods at prices. the doliae countries will pay?"

This meant, he said, that devaluation would provide no feal'-benefit unters British ex- ports to the United States in- creased 150 percent,

He added: "I dont's day (hat Cripps was wrong, but de- valuation, for from solving the problem, ruises Д serier of

drostle action.

The original Soviet proicst was made to Britain, the United If Britain was unable to make subsidiary problems which with

a great production drive in the need States and France as signatories face of her present suil employ-scheme is to work." of the Italian Perce Trenty.

markets

IK the

Me

The note published tonight nent, her exports to non-uotlar The

like Australia inust

Defence Minister, Kaid that the responsibility for dwindle. Australia must either John Dedman, following MT Hanroon, Sept. 21. The the "violation" rested with Burmese

viner Menzies, aald he did not believe Government

goods from Alr Britain, the United States and there

ouices or step up her own pro- that "miere juggling with cur- Force today scored direct hits France.

Lasic on largets-al-the-rebel-Karen On-July-28,-Italy-replied-to ducilon,otherwise demand reney would correct the

unbalance-belwean the produc»- stronghold of Sabadaung, about the first Russian note alleging would force prices up beyond ve capacity of the dolls area 26 miles north of Rangoon, the vlolution of tho treaty and reason, Mr Menzies said.

and the rest of the world." Burmese Army Radio announ-countered with charges that ced today.

"Surely Germany and Japan Russia and violated the treaty will once more become big ex-

Ho 'pdded: The radio sald that air crews by opposing Italian admlilanco

porters? They come back when optimistic about the effects of devaluation In maet.ng the the United Kingdom operiod that the rebels were to the United Nations

canno dellar shortage." Associated abandoning Sabudaung after the

: should Press.. Then they

FAVOURABLE. POSITION BELIGUM: Tho Belgian Government early today an

devaluation nounced

of frang by about 12 percent in relation to the dollar compar-bombing.

cut of with Britain's percent.

The rute

the

ed

of

strive for a "Governinent Democratic Union" by pressing a claim for:

1-A_holiday bonus of 5,000 francs for all workers and 1,500 francs for dependants.

2.-A temporary cost of living Indemnity of 3,000 francs for all workers.

3-Certain ladividual wage-, hour incrERICE,

came

4. Tho re-introduction collective contracts (the salary for all workers lu the Enmo profession or the REMO baale salary for all workers in the same region).

6--Freo discussion of waga conditions.

GAn increase of unemploy- ment benefits from 160 francs: per day to 250 french,

7-A return in, the 40-hour

week with the same pay as for a 40-hour week to prevent un- employment.

"ABOLISH FREEZING" In a speech to the Anglo- Association of American Press Paris tonight, the anti-Com- munist trade union leatier, M. Albert Bouzanquet, sild that Franes may

with be faced "Insurrectional strikes"

ag

,ប

who

"Labour

13

result of the devaluation.

Bouzanquet,

M.

Secretary of

Force Confedern Lon of L

onid: "If the Government

wants

crisia,

bour avold

a social er which might go as far as 1- surrectional strikes, the freezing of wages must be abolished."

The cost of living had increas- ed by 21 percent alnce, the begin- ning of the year, he added.

It was learned in usually reli- ablo quarters tonight that the Government had practleally do- cided to increase some' wOKES-- Router.

Indo-Philippine Air Talks End

New Delhi, Sept. ~ 212-Tha Indo-Philippine, air talks, which atarted on September 5, ended today, it

hiinteral :...hlr. ⠀ agreement

- between” India and the Phillp

pines is expected to be signed by the end of the...work--

for

30

Pound

Sterling was adjusted from 178 to 110 francs.

The new dollar rate is 50

francs.

Brussels sald that Belgians

Tonight's note sald that the supply us.

It added that the Burmese Soviet Government had "never gain a share of our trade."

objected to the admission of *if the United Kingdom's Air Force yesterday bombed

Italy as a member of the United | share of our trade is reduced, another Karen strong-point, Sapyuzu. In the Insein district, Nations

together with other our export trade to the United applying for admi Kingdom will be imperilled." again scoring direct his.

According to the oMelal com-

MORE PROBLEMS munique, 10 Karens were kill-

A Government spokesman laed when Government forces al- tacked a rebel parly preparing generally were unlikely to flad to raid a police outpost near the cost of living affected, the rice centre of Houbin, 35 Belgium's ability to limit her miles southwest of Rangoon, devaluation means that she still Official sources reported that holds a favourable position, he | Shan troops are nearing the declared.

Southern State capitol af LUXEMBOURG: The Luxem- } Taunggyi, at present in Karen bourg frane is to be devalued | hands.-Associated Press......

SIDE GLANCES

Stutes

riun."-Reuter.

Mr Menzies warned that the

ACHESON'S higher cost of goods from dollar

OFFER

(Cantinned from Page 1)

Janeiro. Both these

are

treatles

made pursu int to the

By Galbraith principle of collective action to

ŠOVÉ VÝUN BY HEA BERVICE, HG, Y. UK, ROGU NA SE PRE, US

1.tó have a crush on Bing Crosby, too, but I finally

to aúd him to the list of fallows who stay married!?

resist aggression embodied-in Use

Charter.

"Methods and procedures to rive effect to this principle vary

with circunstances. The mem¬

areas might force Beflish wages

Kremlin's Bid To Control. Yugoslavia

Helgrade,

1 not

CHAKSANG INQUIRY

(Continued from Page 1)

jmitted that Jardines Ald, not

know they were on board,

The President: What right had you to have the passengers on board?

Witness: I knew that the ship could carry 12 passengers. The President: You did not Well the Captain?--I did not tell the Captain.

Is that the usual way you operate on board ship?-No.

This is the first time, is it?

21. TheYes." Sept

bers of the United Nations and Yugoslav Deputy Foreign Minis-

the General Assembly Itseller, Dr Ales Bebler, said today

must constantly study means which will lead to stabilisation'of peace.

UNIVERSAL

the that the break between Marshal

the

4

KOBLEM

Never before?--No.

CLEARING OF SHIP

Answering and her

query,

Tito and the Cominform was preceded by Kremlla demands that Russia direct the Yugoslav Wong said:" "I did not receive army and run Yugoslavia's for any passage money from these eign policy.

passengers, I thought I would "In the final analysis, the

collect the money for the Com- security problem is a universal

Dr Bebler, who is at present fpany when the ship sailed." problem. It cannot bo solved

The President: Had the ship attending the United Nations except cn.

universal basis, General Assembly in Now been cleared from the Marine through the United Nations.

"Let us proceed with appres article appearing in the monthly

York, made the charge in an Department?

Winess: I myself did not clear ciation of the limits of what wo

magazine "Com-the ship.

that the Do you

understand

ho clears his chip whether

Yugoslav this

can expect to accomplish al time, with confidence. In the

· VYSHINSKY ABSENT.

munisi”

L

ORIENTAL

AIR

CONDITIONED

Tako Any Eastern Tram Car or Happy Valley Bus SHOWING TO-DAY: 2.30–5.20—7.30 & 9.30 P.M. From the Sands of the Sahara to the Tropis Ixlos of the South Seas, they Follow the Trail of Romanco!

Romance

OF THE SEVEN SEAS

THE

John

Susan

WAYNE HAYWARD

FIGHTING

SEABEES

Republic

DENNIS O'KEEFE.. WILLERIE FRAWLEY LEON.U KINSEÉT J H. KERRIGAN - GUAX? MITHERS

ALHAMBRA

AIR FRESHENED

TO-DAY ONLY AT 2.30, 5.15, 7.20 & 9.30. P.M.

YOU

ACCEPT AN INVITATION 10,

LA SCONDE'S APARTMENTS

YOU

.ROS HOCKED IN THRƐ SAW -.

YOU

BLON END CEGONEN 201)

WWO TULLA TE (MENS TOWI

YOU and ROBERT MONTGOMERY

Lady in the

in the Lake

AUDREY TOTTER LLOYD`NOLANI

OPENS To-morrow

SHOWING

TO-DAY

HARRY SHERMAN

1E

WINTER

COMES"

with Deborah KERR--Walter PIDGEON:

5.20,

MAJESTIC 7.20 & 9.30

77 THE

P.M.

KANSAN

Richard DIX⚫ Jane WYATT

Albert DEKKER

Eugene Pallette Victor: Jury Robert Armstrong - Clem Bevans Red Cameron

Walt Disney;

Color Cartoon ~~

ADDED ATTRACTION: "RESCUE DOC"

OPENS

Lou COSTELLO Bud ABBOTT : * FRIDAY "in: “MEXICAN HAYRIDE”

Bigger Fishing Radio Hongkong

?

Area For Jans

the

#00Hong-Kong Caling Pron. long-term values of patience, Ile charged that, before the Master has got to declare when

Brammo Sainmary;,(6,02-Chlidren's and with reliance upon the Cominform résolution austing

Story: "Winter Holiday!", by. Arthur power of common sense in In-Tito and his

Sept Communists In there are passengers on board

21-Goneroansome. Rezd. by Captain Tokyo. ternational affairs,

had in or not?-That I'don't know.

Douglas MacArthur's. head- Tint (8ludfa); ~ 80-te for The public Interest of the June 1948, Russia

How long have you been a quartera today announcedan MuslBROMHland Light direct control of

| Orchestra--- Conducted .. by world community demands that sisted on

Yugoslav

foreign policy, at- compradore?-Since 1947.

We have gone over the list of extension of Japan's authorised Vinter (nucTS) 100m on the Res we get on with our business."

tempted to direct "state ap cargoes in detail; can you swear Ashing waters to the cast and cord Presented by Tonale parnius' including the Yugoslav that there was no other cargo a reduction in certafh other, bons (Studio): 730-La Demi-Bour

800-Worla [Army, :' and created Soviet

restrictions от on that ship?-No other cargo

lapanese fishing rančale (Studio);

News and News Analyslo (London Mr Andrel Vyshinsky, the agencies within, the Yugoslav besides that on the manifest; no operations. Soviet Foreign Minister, was government through soles and pidgin cargo.

wamod

Japanone portal Blue

dio); 830-Taka “it "team" fare”- not present at the United Natraltors.

Do you know, from your per- Government that, this did not A Variety Programme with Joy Bentley,& miny tions General Assembly today

3.B.C.. Ravir - Orchestra Edwards. B.E Dr Bebler said Russia had sonal observation that the car establish a precedent for any Nicholz, D to: bear ·Mr· Dean. Acheson's

violated the UN Charter in her toes we have gone over in do- further extension of authorised conducted by Frank Caniel wart plea for International

co-opera-

tall were stowed where you say falling acas, nor was it an ex-INCTS): 306yrom the cl campaign against his country they were stowed or are you pression of Allied policy on the weather Report: 9.11-Ballarat

tortala London · Halay)). 9.10--- Hom

The Soviet - delegation, was He served notice that the Tite only supposing they were so ulimate international boun-story of the Australian Golek jumla

in' the area.

Produced by headed by Ambzigo Arutiunim”; Kovernment would go all out slowed? They were actually daries of relaxations.^. ^. on (DNCTB): 10.10-Andre - Hosteláne The Russian economic expert. in Ma offensive against the slowed in those places.

and His Orchestra) 10.30++/"IT:UKMĒRT Some observers, described Str "revisionism" of the Soviets,. Iis answer to another ques- Japanese fishing activities would terenade A Programme of Cope Acheson's speech an definitely and that there would be notion, Wong sald that the red depend primarily on the actions Inuous Moderanged by of the olive branch variety, compromise until the Kremlia fron oxide was slowed in No. 2 of the Japanese Government Prewar 11 ponadio

its altitudom United lower hold," kata S which left the door open for chanded

and the. Ashing Industry London Relay)}. 11:30-v

the same port and Bummary of Nawatul MND furian co-operation-Reuter

SAOMBAY NEThe hearing is proceeding. Heuter

Close Down

Further

Page 5Page 6