Presse et revues
6 pages
Titre : The New York herald tribune
Éditeur : [s.n.] (Paris)
Date d'édition : 1950-11-16
Notice du catalogue : http://catalogue.bnf.fr/ark:/12148/cb32823406b
Type : texte texte
Type : publication en série imprimée publication en série imprimée
Langue : anglais
Description : 16 novembre 1950 16 novembre 1950
Description : 1950/11/16 (A64,N21091). 1950/11/16 (A64,N21091).
Droits : Consultable en ligne
Identifiant : ark:/12148/bd6t593397k
Source : Bibliothèque nationale de France, département Philosophie, histoire, sciences de l'homme, GR FOL-PB-1751 (BIS)
Conservation numérique : Bibliothèque nationale de France
Date de mise en ligne : 11/04/2021
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-No. 21,091
* *
PARIS, THURSDAY, NOVEMBER 16, 1950
THE NEW YORK HERALD
ESTABLISHED IN EUROPE 1881
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Approved by
| Duck’ Session
L r# U Tribune Bureau
U or lc Herald Tribune, Inc.
['ON, Nov. 15. —Secre-
Treasury John W.
today a 75 per cent
tax on corporations
3 , 000,000 annually
revenue.
[ml—a modified and
"of the 85.5 per cent
'tax of World War II
Uo the House Ways and
nittee, which opened
_ morning on an ex-
|jy in accordance with
Congress laid down
[ioumed in September,
went before the tax-
j to implement Presi
t's appeal to Congress
enactment of an ex-
p e vy, effective retroac-
[lr l, that would add
to the government’s
year.
‘Confident’
[ins his recommenda-
yder said he is “con-
[ can be passed at the
session of the 81st
Wuled to open Nov.
ieiief contradicts the
[opinion, in Washington
session of Congress,
[tened by Mr. Truman
[, will not have time
new tax legislation
Lly elected 82d Con
ker on Jan. 3.
| there has been fairly
Eition to any excess-
tall. Sentiment seems
tup for other methods
government revenue,
;r increases in in
taxes and ordinary
xes.
imposed that cor-
12 World War II, be
drive of computing
wgh a “base period
or an “invested
’Either system would
(wrings on which the
Urate income tax, which
45 per cent, would
tre all profits in ex-
|sum subject to the 75
*ss” profits rate.
for Program’
>Administration plans
I larger and more com-
| :ax-boost proposal to
Mr. Snyder said
erly designed profits
for a balanced anti
ram since economic
higher taxes on in-
uld be unfair unless
profits carry their
the tax load.”
I that corporate profits
are now running at
so that even $4,000,-
fiiitional taxes “would
ptions, in the aggregate,
pings and a high rate
investment."
I Truman had three ob-
1 mind when he wrote
•Rep. Robert L. Dough
ty chairman of the
[tod Means Committee,
[said. He listed them
[contribute to meeting
cost of defense; sec-
peck inflationary pres
ide the government to
strong financial posi-
^rd, to tax the high
!tl ng from the defense
r also presented the
‘timate by an Adminis-
•n months on the out-
(overnment’s budget in
“seal year ending next
F.’^d spending will total
000,000 and govern-
wi U amount to $43,-
;Vin g a deficit of about
live Stocks
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22,000 71%.
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19.400 7
18.700 15%
18,300 17
18,300 45%
itic ■ H"’ 00 9 %
Oi,-" ^.200 61%
. hl ° 12,700 13%
12,700 40%
C 12,600 56%
12.400 4%
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f - oes, 426 ; unchang-
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it j> ‘2,350 18% 4-2
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l'?! ation * and, market
0n back paae.
British Won’t Trade Refugee
For 2 Men Held by Russians
Moscow Said to Propose Exchanging Sapper and
Flyer for Officer Who Fled Soviet Army
By the Associated Press
LONDON, Nov. 15—Britain has
refused to “ransom” a Royal Air
Force officer and British Army
enlisted man held captive in East
Germany by turning a Soviet offi
cer refugee over to the Russians, the
Foreign Office announced today.
The Foreign Office said the Brit
ish Ambassador in Moscow “will
continue to press” for the release
of Flight Lieut. J. W. Driver and
Sapper John Bennet, who have
been held by Russian authorities
for more than nine weeks.
When their release was requested,
the Foreign Office said, Russian
authorities “intimated that their
return would be facilitated by the
surrender of a certain Soviet Army
lieutenant who had deserted from
the Soviet forces in Germany and
sought asylum with the British
authorities a few days previously.”
It explained that Lieut. Driver
made a forced landing in the
Soviet Zone while piloting a fighter
from Britain to Germany in bad
weather last Sept. 5.
On the following night, Sapper
Bennet, a guard in a military
freight train, was accidentally left
behind after the train halted in the
Soviet Zone.
The Foreign Office said the Brit
ish Ambassador in Moscow “has
pointed out to the acting Soviet
Foreign Minister that facilities are
available to the Soviet military
authorities in Germany to verify
for themselves that the Soviet
Army lieutenant is a political ref
ugee and that to surrender him
against his will would be contrary
to the generally accepted practice
of nations in regard to the right of
asylum.”
It added that “there is no con
nection whatsoever between the
case of the Soviet officer in Brit
ish hands and the British officer
in Soviet hands which could
possibly provide a basis for an ex
change.
“The prolonged detention of the
British officer is, in any case,
quite unjustified. Similarly, there is
no justification for the detention
of Sapper Bennet. The British Am
bassador will therefore continue to
press for their release."
Persian Radio Cancels BBC ,
Voice of America Programs
Move Is Interpreted as a Friendly Gesture to
Russia Following Recent Trade Pact
By the Associated Press
TEHRAN, Nov. 15.—The Persian government tonight banned British
Broadcasting Corporation news and Voice of America relays from the
state radio station in a move interpreted by Western diplomats as a
new friendly gesture to Russia.
While the order canceled rebroadcasts of all foreign radio programs,
there was no doubt that it was
Chuikov Says
U.S. Jet Buzzed
Thorez’s Plane
Soviet General Says Red
Chief Was Endangered
On Flight to Moscow
By the Associated Press
BERLIN, Nov. 15.—Gen. Vassily
Chuikov, chief of Soviet forces in
Germany, charged tonight that an
American jet fighter plane threat
ened the safe passage of a Russian
transport carrying Maurice Thorez,
ailing French Communist leader, to
Moscow for medical treatment.
Gen. Chuikov sent a formal pro
test to United States High Commis
sioner John J. McCloy. He said the
incident happened Nov. 11 about 30
miles west of Frankfurt while the
Russian C47 was returning from
France with. M. Thorez aboard.
The Soviet chief declared that the
jet fighter made threatening passes
at the Russian plane and that the
Soviet ship escaped a possible col
lision only because of the pilot’s
dexterity.
Arrives Safely
Gen. Chuikov’s announcement
was issued through the Soviet-
licensed ADN news agency. Earlier
in the day, the agency had an
nounced the arrival of M. Thorez
in Moscow.
Gen. Chuikov’s letter said the
jet fighter “emerged under the
right wing of the Soviet plane
at a distance of ten meters and
then made, at the same altitude
and a distance of ten to 15 meters
in front of it, a sharp return curve
to the left.
“After it had moved away about
one kilometer,” the letter said, “it
made a turn of 180 degrees and
again approached the Soviet plane.
At this moment our plane disap
peared in the clouds. A serious
endangering of the Soviet plane by
the attack of the American plane
was prevented only by the dexterity
of the Soviet pilot.
“I protest firmly against this oc-
(Continued on Page 2, Col. lj
aimed primarily at the Voice of
America, which has recently inten
sified criticism of Russia in Per-
slan-language broadcasts.
Pro-government newspapers,
which have been attacking the
“Voice” for its anti-Russian tone,
linked the radio ban with the un
expected dismissal last Friday of
Esfandiar Bozorghmehr as director
general of press and propaganda.
The paper “Tolou” said that the
Prime Minister dismissed Mr. Boz
orghmehr after a violent attack by
the “Voice” on Russian Ambassador
Ivan Sadchikov.
Mr. Sadchikov took a leading
part in the negotiations for the
recently signed Persian-Soviet trade
treaty, which has been universally
praised throughout Persia as herald
ing new and friendlier relations
between the two countries.
‘Azerbaijan Butcher’
The Voice of America, which for
several months has been relayed
for half an hour daily, called Mr.
Sadchikov “the butcher of Azer
baijan." It was referring to the
1946 revolt in Azerbaijan by the
pro-Communist < Democratic party,
which collapsed after Russian
troops were withdrawn from Persia
under United Nations pressure.
The American Embassy here had
no immediate comment on the
cancellation of the “Voice” pro
grams. But there is no secret
about the concern among British
and American diplomats here at
the recent wave of pro-Russian
comment, both in the press and
Parliament, as a result of the trade
treaty.
Ever since the United States
granted a $25,000,000 Export-Import
Bank loan last month, there has
been growing criticism of America.
Complaints in Parliament have in
creased because the aid was in the
form of a loan and not an out
right grant.
“Tolou,” a pro-government news
paper, summed up general feeling
when it said: “We do not want to
exchange American friendship for
Russian enmity,” and urged a mid
dle-of-the-road policy of friendship
with both.
“We should not be a tool in the
hands of either side,” “Tolou” said.
“Persia has 2,500 kilometers (about
1,550 miles) of mutual border with
Russia.”
New Yorkers’ $62,399 Gold
Formally Claimed by Britain
By the Associated Press
LONDON, Nov. 15.—The British
government laid claim formally to
day to $62,399.75 worth of gold bars
found in the possession of two New
Yorkers at London Airport.
Notice of the claim was published
in the Official Gazette by the
Customs and Excise Service. The
notices were directed to Egon Hof-
bauer, of Long Island, and Em
manuel Schwarz, of Brooklyn. Cus
toms officials previously had filea
a third claim for gold bars worth
$28,000 found in the luggage of Mr.
Schwarz’s mother, Mrs. Bertha
Schwarz.
All three arrived on separate
planes from New York on Oct. 27
and 28. They were booked to fly
on from here to Bombay.
Under British law gold is freely
Importable but cannot be taken out
of this country without a Treasury
permit.
The notices in the Gazette said
Mr. Hofbauer had 984.25 troy
ounces and Mr. Schwartz 798.6 troy
ounces, worth $35 an ounce. The
claim added that in each case the
metal was “found concealed and
packed in a package to deceive the
officers.”
Unless the owners take some ac
tion to recover the gold within 30
days, it will be forfeited to the
Crown.
Mr. Hofbauer, 48, who describes
himself as an importer and ex
porter, told reporters he planned
legal action.
A spokesman for the United
States Treasury here said yester
day the three Americans have given
no explanation of what use they
intended to make of the gold. The
spokesman said gold cannot legally
be exported from America, either,
without a Treasury permit.
Grotewohl
For German
Elections
But Wants a Constituent
Council Formed First;
Announces His Cabinet
Acheson Asserts U.S. Must Do
All It Can to Avert a ‘Tragedy
In Handling China-Korea Crisis
Moch Proposes
To Supply Half
Of Pact Army
By Russell Hill
From the Herald Tribune Bureau
Copyright New' York Herald ikribune, Inc.
BERLIN, !Nov. 15.—East German
Prime Minister Otto Grotewohl an
nounced formation of a new gov
ernment today and declared in a
policy statement to the People’s
Assembly that he favored free elec
tions throughout Germany if they
are preceded by establishment of a
Constituent Council on which East
and West Germany have equal rep
resentation.
This is the first time an Eastern
spokesman has agreed to the prin
ciple of all-German elections pro
posed by Federal Chancellor Konrad
Adenauer. The apparently con
ciliatory move must, however, be
viewed against the background of
three other developments.
First, the Communist newspaper
“Neues Deutschland” disclosed to
day that the ranks of the Socialist
Unity (Communist) party are to be
carefully combed in a six-month
search for “alien, hostile, morally
unclean and opportunistic ele
ments.” This is in line with the
policy of creating a revolutionary
Leninist “new type” of party, whose
task would presumably be to cap
ture a united Germany for Com
munism.
Equal Representation
Second, Mr. Grotewohl foreshad
owed in his speech a new state ac
tion against the church, including
the elimination of subsidies. This is
interpreted in West Berlin as an
other step in the process of break
ing opposition to Communism and
tightening control by the present
regime. Such steps do not make
for confidence here in the willing
ness of the East German leaders
to create the conditions under
which free elections could be held.
Third, in demanding creation of
a Constituent Assembly, in which
East Germany w r ould have an equal
voice with West Germany although
the former’s population is less than
half as great, Mr. Grotewohl seems
to reject the basic idea behind the
Western proposal, namely, that the
purpose of the voting would be to
elect the Deputies to a Constituent
Assembly.
Mr. Grotewohl, may, however, have
scored a propaganda point, since
the Communists can now claim
that they favor free elections, and
will blame tne West if they are not
held.
The new government announced
today differs little from the former
one, and its formation was over
shadowed in importance by the im
pending purge. As a first step, the
party lists are to be frozen and no
new members are to be admitted
until after June 30, 1951.
Ideological Struggle
Every one of the party’s estimated
one and a half million members
will have to turn in his member-
ship card and apply for another
one, which will be issued only after
“the whole development and activity
and social origins” of the member
have been studied.
This operation will begin only on
Jan. 15 and will be preceded by a
“decisive ideological struggle against
all bourgeois influences in the work
ers’ movement,” during which “the
whole hostile role of Social Democ
racy, cosmopolitanism and objectiv- mament of the other Atlantic pact
ism must be unmasked.” countries should have priority, M.
The Socialist Unity party has al- Moch said that the divergences be-
ready rid itself of many of the un- tween France and the United
reliables in its ranks. In the last States had been “greatly exagger-
two years its membership has been ated.”
reduced by 500,000. Many of those “We had certain proposals and
excluded were former Social Demo- the United States had others,” he
crats who automatically became said. “Differences are normal in
members in 1946 through the farced the democracies. Only the satel-
merger of their party with the Com- lites behind the Iron Curtain accept
munists. (Continued on Page 2, Col. 4)
American Troops Seize a Korean Power Plant
Intercontinentale.
United States Marines, during their advance toward the Changjin reservoir, which they reached yes
terday, captured this hydro-electric power station in the Korean mountains, south of Changjin.
Tells Council He Expects
Solution on the Use
Of German Soldiers
By Vincent Bugeja
Jules Moch, French Minister of
Defense, declared yesterday that
one-half of the army of the Atlan
tic pact countries, now in forma
tion, should be French.
Cheers greeted the statement
which M. Moch made at the end
of a debate in the Council of the
Republic on the bill for the exten
sion of French conscript service to
18 months.
M. Moch said it was the duty of
France to keep aggression at bay.
Russia, which he estimated has
4,100.0'00 men under arms, had “no
need to let loose a war just at
present,” but it had not abandoned
the idea of war “for good,” he said.
“One fact which we must bear
in mind,” he said, “is that the
United States has decided to main
tain its troops on European soil
to defend Europe.” In this develop
ment, which he called “revolution
ary,” M. Moch saw an argument
for the view he has frequently urg
ed that the “fight for freedom
should be kept as far away as pos
sible from our frontiers.”
As regards German rearmament,
which France at first strongly op
posed on the ground that the rear-
Reynaud Threatens to Drop
Support for Europe Council
By Robert Yoakum
Former Premier Paul Reynaud
threatened yesterday to withdraw
his support for the Council of Eu
rope, saying that he would not con
tinue to associate himself “with a
policy of weakness when action is
called for.”
M. Reynaud, an Independent
Conservative and a member of the
French delegation at the Strasbourg
organization, also took advantage
of a debate in the French National
Assembly to berate Guy Mollet,
Minister of State for European Af
fairs, for what he called a “Social
ism first” approach toward Council
of Europe problems.
M. Reynaud charged that Great
Britain had refused to give up any
national sovereignty, would not ac
cept supra-national authority, and
“does not accept the idea of a Euro
pean army.”
The former Premier said “the
only way” of convincing Britain was
to create a united Europe without
it “with whatever ons is able.”
“A unit 3d Europe is the only way
of rearm’ng Germany without dan
ger,” M. Reynaud said. “There arc
some people who think that we
have 20 years in which to make a
united Europe. I don’t know if we
have 20 weeks.
“But the government is represent
ed at Strasbourg,” M. Reynaud
continued, “by a minister who said
there that he could not envision,
as a Socialist, a united Europe
without Great Britain.”
M. Mollet replied: “I said that
I was hostile to a partial solution,
because I am a federalist, because
I am a Socialist and because I am
French, since a union only with
Germany and Italy would not be
accepted by a French Parliament.”
M. Reynaud also clashed with
another former French Premier,
Paul Ramadier, who, he said, had
warned against a Europe dominat
ed by the Vatican in a recent
speech before the French Socialist
congress.
"I want neither a Vatican nor a
schism,” M. Ramadier answered. “I
want a completely United Europe.”
At the conclusion of the debate
the Assembly passed, by a vote of
353 against 184, a resolution asking
the government “to take all steps
likely to increase the political au
thority of the Council of Europe ”
U.S. Gets Delay
On UN Debate
Over Formosa
Marines Arrive at Changjin ,
Reservoir for Korean Power
But They Still Have Not Reached Hydro-electric
Plants, Which Reds May Have Dismantled
By the United Press
TOKYO, Nov. 16 (Thursday).—United States Marines yesterday
reached the Changjin reservoir, which supplies the bulk of North
Korea’s hydro-electric power.
A motorized patrol of the Marines’ 7th Regiment arrived at the
shores of the reservoir at 4 p.m., and 30 minutes later troops began
moving on unopposed to high
ground commanding the southern
tip of the artificial lake.
Changjin had previously been
heavily defended by Chinese Com
munist forces, apparently to give
them time to dismantle the power
equipment.
Ninety miles southwest of Chang
jin, units of the American 1st
Cavalry Division entered the wall
ed town of Yongbyon and found
that the Reds had left, abandon
ing freshly dug defenses.
Reds Attack ROKg
But Chinese Communists in bat
talion strength hit elements of the
Republic of Korea’s 8th Division
at a point four miles northeast of
Tokchon and forced the Repub
licans back four miles. Tokchon is
about 25 miles east of Yongbyon.
The marines, who advanced two
miles from the village of Hagaru
to the reservoir shores, had still
not reached the hydro - electric
plants themselves, and it was not
known whether the Reds had been
able to dismantle and transport the
plants across the Manchurian bor
der.
Several days ago, the marines
overran heavy crates of equipment
the Chinese had not had time to
remove.
It was estimated here that the
marines had destroyed the better
part of a Chinese division of some
10,000 men in their slow advance
during the last two weeks over Icy
mountain trails toward the reser
voir.
Civilians at Poklichi, the next
village north of Hagaru, said the
last of the Reds withdrew four days
(Continued on Page 2, Col. 2)
By the Associated Press
LAKE SUCCESS, Nov. 15. — At
the suggestion of the United States,
the United Nations Assembly’s
Political Committee today post
poned consideration of Formosa’s
future until a later date. The vote
was 53-0 with five abstaining. Com
munist China’s nine-member dele
gation, appointed to participate in
the Security Council’s debate on
Formosa, was expected momentar
ily. '
The committee decided, by 14
votes to 8 with 36 abstentions, to
consider next Nationalist China’s
charges against Russia. The Na
tionalists have accused Moscow of
violating treaty provisions and the
UN Charter by helping the Chinese
Reds to gain power.
Oriental Problems Complicated
In calling for a postponement of
the Formosan discussion, which was
on the agenda for today, American
delegate John Foster Dulles told
the committee that the conduct of
the Chinese Red regime has com
plicated oriental problems.
He referred to the Chinese Reds’
intervention in Korea, their inva
sion of Tibet, aid given to Ho Chi-
minh’s rebels in Indo-China and
their threats to invade Formosa.
If aggressive war sweeps through
(Continued on Page 2, Col, 3)
U.K. Will Revive Home Guard
When an ‘Emergency Arises’
By Jack Tait
From the Herald Tribune Bureau
Copyright New York Herald Tribune, Inc.
LONDON, Nov. 15.—Britain’s
Home Guard of World War II is
to be revived when an “actual emer
gency arises,” Defense Minister
Emanuel Shinwell announced in
the House of Commons today.
Mr. Shinwell said “planning
measures (to establish the guard)
are being put in hand at once.” He
said the guard “will form part of
the armed forces of the Crown and
its functions will be broadly similar
to those which the Home Guard
performed so admirably in the
recent war.”
The Home Guard of the last war
was in operation for four and a
half years. It was disbanded in
1945 when the war was over. At
one point the strength of this
voluntary service totaled 1,794,000.
Its casualties were 1,206 dead and
557 wounded.
The Home Guard of any future
war will undoubtedly—as it was in
the last—be assigned to guarding
vulnerable points in Britain’s home
defense. It also would be on the
alert against attack by parachutists,
and would assist in general civil
defense and anti-aircraft duties.
Mr. Shinwell made it clear that
the government at the present time
was more concerned about obtain
ing volunteers for civil defense
than for the Home Guard. He as
sured prospective volunteers for the
Home Guard that if they joined
civil defense units now they could
transfer to the guard freely if and
when it is re-established.
“The training which potential
Home Guard members would receive
by joining civil defense services or
the special constabulary,” Mr. Shin
well said, “would be of considerable
value If they should later wish to
join and can he accepted for the
Home Guard on its formation.”
Believes 6 Disaster
Can Be Avoided’
But Says a ‘Really Great
Crisis’ Would Have to
Be Faced Resolutely
By the Associated Press
WASHINGTON, Nov. 15.—Secre
tary of State Dean Acbeson declar
ed today that the United State*
must do everything possible to pre
vent Red China’s armed interven
tion in Korea from plunging the
world into “a tragedy of the most
colossal nature.”
Speaking at a conference of rep
resentatives of 200 organizations at
the State Department, Mr. Ache-
son also said that the world is
passing through “a very dangerous
period in history which seems to
get increasingly dangerous as it
develops.”
Mr. Acheson said: “It seems to
me that disaster can be avoided,
but it can be avoided only if we
exercise a great deal of common
sense in our policies and leadership
throughout the world.”
One of a Series
The conference is one of a series
the State Department has been
holding to provide a background on
foreign affairs for representatives
of farm, labor, business, veterans’
and other groups.
Mr. Acheson, speaking extem
poraneously, dealt in considerable
detail with the Far East crisis. He
recalled how it recently appeared
that United Nations forces would
have Korean fighting substantially
ended in a few weeks, when “this
Chinese intervention occurred.”
One of the first things necessary
in this situation, Mr. Acheson con
tinued, is to clear away any pos
sible misunderstanding about the
United States and United Nations
aims which might exist in the
minds of the Chinese Communists.
Mr. Acheson said: “If they believe
that the United States and the
United Nations have ulterior designs
with respect to Manchuria, as their
propaganda has claimed, then
everything which can be done must
be done to remove their fears.
“If they fear a loss of their in
terests in the border areas—the
Yalu River installations — then
everything possible must be done
to make sure that they know that
their interests are being, and will
be carefully protected.
‘Really Great Crisis’
“If, on the other hand, the
Chinese have been led, either by
ignorance or by seme other means,
to precipitate a really great crisis
in the world, then that must be
met with all the resolution, all the
soberness, and all the wisdom at
our command.”
Mr. Acheson said: “We hope that
is not the case. It would be a
tragedy of the most colossal nature
if that were so. And, therefore, we
must explore carefully and wisely
every possibility of the Charter of
the United Nations.”
Before turning to the Far East,
Mr. Acheson discussed European
rearmament. He said that as em
phasis shifts from economic to mili
tary preparations, “one should not
open the back door or side door to
Communism through economic
penetration.”
He apparently meant the United
States must continue to give Euro
peans economic as well as military
help.
Other speakers were Under Secre
tary of State James Webb and
Assistant Secretary of State Dean
Rusk
Mr. Webb said the State Depart
ment next year will make increas
ing efforts to cope with the effects
of Red propaganda abroad.
Mr. Rusk said the UN can work
out a settlement of the Korean
crisis only if the “extremely dan
gerous” Chinese Communist inter
vention has the limited aim of
protecting their border and power
sources.
“But if their intent is to seize
Korea, or this new phase of inter
vention is part of a general Com
munist campaign of aggression, the
UN cannot negotiate a settlement,”
he said.
Laborite Is Criticized
For Absence in Korea
LONDON, Nov. 15 (A.P.).—A
closed meeting of Labor party
members of Parliament criticized
Tom Driberg today for being ab
sent during several confidence
votes during the last three months.
Mr. Driberg was in Korea, cover
ing the war for “Reynolds News,”
a pro-government Sunday news
paper.
An official commun’que from the
meeting said Mr. Driberg was
“censured for gross neglect of liis
Parliamentary duties.” He “apolo
gized and expressed his deep re
gret,” the statement said.
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NEW
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1. ,.,J 1
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-No. 21,091
* *
PARIS, THURSDAY, NOVEMBER 16, 1950
THE NEW YORK HERALD
ESTABLISHED IN EUROPE 1881
ILL STREEl
l YORK 5
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Marcel r j
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Excess
ts Tax
I-1
Will Raise
Billion
[dent’ Program
Approved by
| Duck’ Session
L r# U Tribune Bureau
U or lc Herald Tribune, Inc.
['ON, Nov. 15. —Secre-
Treasury John W.
today a 75 per cent
tax on corporations
3 , 000,000 annually
revenue.
[ml—a modified and
"of the 85.5 per cent
'tax of World War II
Uo the House Ways and
nittee, which opened
_ morning on an ex-
|jy in accordance with
Congress laid down
[ioumed in September,
went before the tax-
j to implement Presi
t's appeal to Congress
enactment of an ex-
p e vy, effective retroac-
[lr l, that would add
to the government’s
year.
‘Confident’
[ins his recommenda-
yder said he is “con-
[ can be passed at the
session of the 81st
Wuled to open Nov.
ieiief contradicts the
[opinion, in Washington
session of Congress,
[tened by Mr. Truman
[, will not have time
new tax legislation
Lly elected 82d Con
ker on Jan. 3.
| there has been fairly
Eition to any excess-
tall. Sentiment seems
tup for other methods
government revenue,
;r increases in in
taxes and ordinary
xes.
imposed that cor-
12 World War II, be
drive of computing
wgh a “base period
or an “invested
’Either system would
(wrings on which the
Urate income tax, which
45 per cent, would
tre all profits in ex-
|sum subject to the 75
*ss” profits rate.
for Program’
>Administration plans
I larger and more com-
| :ax-boost proposal to
Mr. Snyder said
erly designed profits
for a balanced anti
ram since economic
higher taxes on in-
uld be unfair unless
profits carry their
the tax load.”
I that corporate profits
are now running at
so that even $4,000,-
fiiitional taxes “would
ptions, in the aggregate,
pings and a high rate
investment."
I Truman had three ob-
1 mind when he wrote
•Rep. Robert L. Dough
ty chairman of the
[tod Means Committee,
[said. He listed them
[contribute to meeting
cost of defense; sec-
peck inflationary pres
ide the government to
strong financial posi-
^rd, to tax the high
!tl ng from the defense
r also presented the
‘timate by an Adminis-
•n months on the out-
(overnment’s budget in
“seal year ending next
F.’^d spending will total
000,000 and govern-
wi U amount to $43,-
;Vin g a deficit of about
live Stocks
]*■ 15, 1950
P Stock Exchange
Volume Close Net
5 - ts - 33,300 49%
P f 26,800 139%
22,000 71%.
ft*" 20,000 34%
ch’ge
— %
I
-1%
+ %
+ Vs
+ %
+ Vs
+ 1 %
'rick;
U'CCk;
+ ’%
- %
— Vs
— Vs
+ 3%
+ %
ra.soo i7%
19.400 7
18.700 15%
18,300 17
18,300 45%
itic ■ H"’ 00 9 %
Oi,-" ^.200 61%
. hl ° 12,700 13%
12,700 40%
C 12,600 56%
12.400 4%
1.820,000 shares.
' 276,400 shares.
, 17 -1 per cent.
;lo^ ks ' *39.18.
!“• 1.153!
f - oes, 426 ; unchang-
0t k r
ur b Exchange
Volume Close Net
, t h ch’ge
25,000 4 % -|- %
it j> ‘2,350 18% 4-2
-.000 21% +2
Ve 1 ,°'380 2%
8,300 %
0n back paae.
British Won’t Trade Refugee
For 2 Men Held by Russians
Moscow Said to Propose Exchanging Sapper and
Flyer for Officer Who Fled Soviet Army
By the Associated Press
LONDON, Nov. 15—Britain has
refused to “ransom” a Royal Air
Force officer and British Army
enlisted man held captive in East
Germany by turning a Soviet offi
cer refugee over to the Russians, the
Foreign Office announced today.
The Foreign Office said the Brit
ish Ambassador in Moscow “will
continue to press” for the release
of Flight Lieut. J. W. Driver and
Sapper John Bennet, who have
been held by Russian authorities
for more than nine weeks.
When their release was requested,
the Foreign Office said, Russian
authorities “intimated that their
return would be facilitated by the
surrender of a certain Soviet Army
lieutenant who had deserted from
the Soviet forces in Germany and
sought asylum with the British
authorities a few days previously.”
It explained that Lieut. Driver
made a forced landing in the
Soviet Zone while piloting a fighter
from Britain to Germany in bad
weather last Sept. 5.
On the following night, Sapper
Bennet, a guard in a military
freight train, was accidentally left
behind after the train halted in the
Soviet Zone.
The Foreign Office said the Brit
ish Ambassador in Moscow “has
pointed out to the acting Soviet
Foreign Minister that facilities are
available to the Soviet military
authorities in Germany to verify
for themselves that the Soviet
Army lieutenant is a political ref
ugee and that to surrender him
against his will would be contrary
to the generally accepted practice
of nations in regard to the right of
asylum.”
It added that “there is no con
nection whatsoever between the
case of the Soviet officer in Brit
ish hands and the British officer
in Soviet hands which could
possibly provide a basis for an ex
change.
“The prolonged detention of the
British officer is, in any case,
quite unjustified. Similarly, there is
no justification for the detention
of Sapper Bennet. The British Am
bassador will therefore continue to
press for their release."
Persian Radio Cancels BBC ,
Voice of America Programs
Move Is Interpreted as a Friendly Gesture to
Russia Following Recent Trade Pact
By the Associated Press
TEHRAN, Nov. 15.—The Persian government tonight banned British
Broadcasting Corporation news and Voice of America relays from the
state radio station in a move interpreted by Western diplomats as a
new friendly gesture to Russia.
While the order canceled rebroadcasts of all foreign radio programs,
there was no doubt that it was
Chuikov Says
U.S. Jet Buzzed
Thorez’s Plane
Soviet General Says Red
Chief Was Endangered
On Flight to Moscow
By the Associated Press
BERLIN, Nov. 15.—Gen. Vassily
Chuikov, chief of Soviet forces in
Germany, charged tonight that an
American jet fighter plane threat
ened the safe passage of a Russian
transport carrying Maurice Thorez,
ailing French Communist leader, to
Moscow for medical treatment.
Gen. Chuikov sent a formal pro
test to United States High Commis
sioner John J. McCloy. He said the
incident happened Nov. 11 about 30
miles west of Frankfurt while the
Russian C47 was returning from
France with. M. Thorez aboard.
The Soviet chief declared that the
jet fighter made threatening passes
at the Russian plane and that the
Soviet ship escaped a possible col
lision only because of the pilot’s
dexterity.
Arrives Safely
Gen. Chuikov’s announcement
was issued through the Soviet-
licensed ADN news agency. Earlier
in the day, the agency had an
nounced the arrival of M. Thorez
in Moscow.
Gen. Chuikov’s letter said the
jet fighter “emerged under the
right wing of the Soviet plane
at a distance of ten meters and
then made, at the same altitude
and a distance of ten to 15 meters
in front of it, a sharp return curve
to the left.
“After it had moved away about
one kilometer,” the letter said, “it
made a turn of 180 degrees and
again approached the Soviet plane.
At this moment our plane disap
peared in the clouds. A serious
endangering of the Soviet plane by
the attack of the American plane
was prevented only by the dexterity
of the Soviet pilot.
“I protest firmly against this oc-
(Continued on Page 2, Col. lj
aimed primarily at the Voice of
America, which has recently inten
sified criticism of Russia in Per-
slan-language broadcasts.
Pro-government newspapers,
which have been attacking the
“Voice” for its anti-Russian tone,
linked the radio ban with the un
expected dismissal last Friday of
Esfandiar Bozorghmehr as director
general of press and propaganda.
The paper “Tolou” said that the
Prime Minister dismissed Mr. Boz
orghmehr after a violent attack by
the “Voice” on Russian Ambassador
Ivan Sadchikov.
Mr. Sadchikov took a leading
part in the negotiations for the
recently signed Persian-Soviet trade
treaty, which has been universally
praised throughout Persia as herald
ing new and friendlier relations
between the two countries.
‘Azerbaijan Butcher’
The Voice of America, which for
several months has been relayed
for half an hour daily, called Mr.
Sadchikov “the butcher of Azer
baijan." It was referring to the
1946 revolt in Azerbaijan by the
pro-Communist < Democratic party,
which collapsed after Russian
troops were withdrawn from Persia
under United Nations pressure.
The American Embassy here had
no immediate comment on the
cancellation of the “Voice” pro
grams. But there is no secret
about the concern among British
and American diplomats here at
the recent wave of pro-Russian
comment, both in the press and
Parliament, as a result of the trade
treaty.
Ever since the United States
granted a $25,000,000 Export-Import
Bank loan last month, there has
been growing criticism of America.
Complaints in Parliament have in
creased because the aid was in the
form of a loan and not an out
right grant.
“Tolou,” a pro-government news
paper, summed up general feeling
when it said: “We do not want to
exchange American friendship for
Russian enmity,” and urged a mid
dle-of-the-road policy of friendship
with both.
“We should not be a tool in the
hands of either side,” “Tolou” said.
“Persia has 2,500 kilometers (about
1,550 miles) of mutual border with
Russia.”
New Yorkers’ $62,399 Gold
Formally Claimed by Britain
By the Associated Press
LONDON, Nov. 15.—The British
government laid claim formally to
day to $62,399.75 worth of gold bars
found in the possession of two New
Yorkers at London Airport.
Notice of the claim was published
in the Official Gazette by the
Customs and Excise Service. The
notices were directed to Egon Hof-
bauer, of Long Island, and Em
manuel Schwarz, of Brooklyn. Cus
toms officials previously had filea
a third claim for gold bars worth
$28,000 found in the luggage of Mr.
Schwarz’s mother, Mrs. Bertha
Schwarz.
All three arrived on separate
planes from New York on Oct. 27
and 28. They were booked to fly
on from here to Bombay.
Under British law gold is freely
Importable but cannot be taken out
of this country without a Treasury
permit.
The notices in the Gazette said
Mr. Hofbauer had 984.25 troy
ounces and Mr. Schwartz 798.6 troy
ounces, worth $35 an ounce. The
claim added that in each case the
metal was “found concealed and
packed in a package to deceive the
officers.”
Unless the owners take some ac
tion to recover the gold within 30
days, it will be forfeited to the
Crown.
Mr. Hofbauer, 48, who describes
himself as an importer and ex
porter, told reporters he planned
legal action.
A spokesman for the United
States Treasury here said yester
day the three Americans have given
no explanation of what use they
intended to make of the gold. The
spokesman said gold cannot legally
be exported from America, either,
without a Treasury permit.
Grotewohl
For German
Elections
But Wants a Constituent
Council Formed First;
Announces His Cabinet
Acheson Asserts U.S. Must Do
All It Can to Avert a ‘Tragedy
In Handling China-Korea Crisis
Moch Proposes
To Supply Half
Of Pact Army
By Russell Hill
From the Herald Tribune Bureau
Copyright New' York Herald ikribune, Inc.
BERLIN, !Nov. 15.—East German
Prime Minister Otto Grotewohl an
nounced formation of a new gov
ernment today and declared in a
policy statement to the People’s
Assembly that he favored free elec
tions throughout Germany if they
are preceded by establishment of a
Constituent Council on which East
and West Germany have equal rep
resentation.
This is the first time an Eastern
spokesman has agreed to the prin
ciple of all-German elections pro
posed by Federal Chancellor Konrad
Adenauer. The apparently con
ciliatory move must, however, be
viewed against the background of
three other developments.
First, the Communist newspaper
“Neues Deutschland” disclosed to
day that the ranks of the Socialist
Unity (Communist) party are to be
carefully combed in a six-month
search for “alien, hostile, morally
unclean and opportunistic ele
ments.” This is in line with the
policy of creating a revolutionary
Leninist “new type” of party, whose
task would presumably be to cap
ture a united Germany for Com
munism.
Equal Representation
Second, Mr. Grotewohl foreshad
owed in his speech a new state ac
tion against the church, including
the elimination of subsidies. This is
interpreted in West Berlin as an
other step in the process of break
ing opposition to Communism and
tightening control by the present
regime. Such steps do not make
for confidence here in the willing
ness of the East German leaders
to create the conditions under
which free elections could be held.
Third, in demanding creation of
a Constituent Assembly, in which
East Germany w r ould have an equal
voice with West Germany although
the former’s population is less than
half as great, Mr. Grotewohl seems
to reject the basic idea behind the
Western proposal, namely, that the
purpose of the voting would be to
elect the Deputies to a Constituent
Assembly.
Mr. Grotewohl, may, however, have
scored a propaganda point, since
the Communists can now claim
that they favor free elections, and
will blame tne West if they are not
held.
The new government announced
today differs little from the former
one, and its formation was over
shadowed in importance by the im
pending purge. As a first step, the
party lists are to be frozen and no
new members are to be admitted
until after June 30, 1951.
Ideological Struggle
Every one of the party’s estimated
one and a half million members
will have to turn in his member-
ship card and apply for another
one, which will be issued only after
“the whole development and activity
and social origins” of the member
have been studied.
This operation will begin only on
Jan. 15 and will be preceded by a
“decisive ideological struggle against
all bourgeois influences in the work
ers’ movement,” during which “the
whole hostile role of Social Democ
racy, cosmopolitanism and objectiv- mament of the other Atlantic pact
ism must be unmasked.” countries should have priority, M.
The Socialist Unity party has al- Moch said that the divergences be-
ready rid itself of many of the un- tween France and the United
reliables in its ranks. In the last States had been “greatly exagger-
two years its membership has been ated.”
reduced by 500,000. Many of those “We had certain proposals and
excluded were former Social Demo- the United States had others,” he
crats who automatically became said. “Differences are normal in
members in 1946 through the farced the democracies. Only the satel-
merger of their party with the Com- lites behind the Iron Curtain accept
munists. (Continued on Page 2, Col. 4)
American Troops Seize a Korean Power Plant
Intercontinentale.
United States Marines, during their advance toward the Changjin reservoir, which they reached yes
terday, captured this hydro-electric power station in the Korean mountains, south of Changjin.
Tells Council He Expects
Solution on the Use
Of German Soldiers
By Vincent Bugeja
Jules Moch, French Minister of
Defense, declared yesterday that
one-half of the army of the Atlan
tic pact countries, now in forma
tion, should be French.
Cheers greeted the statement
which M. Moch made at the end
of a debate in the Council of the
Republic on the bill for the exten
sion of French conscript service to
18 months.
M. Moch said it was the duty of
France to keep aggression at bay.
Russia, which he estimated has
4,100.0'00 men under arms, had “no
need to let loose a war just at
present,” but it had not abandoned
the idea of war “for good,” he said.
“One fact which we must bear
in mind,” he said, “is that the
United States has decided to main
tain its troops on European soil
to defend Europe.” In this develop
ment, which he called “revolution
ary,” M. Moch saw an argument
for the view he has frequently urg
ed that the “fight for freedom
should be kept as far away as pos
sible from our frontiers.”
As regards German rearmament,
which France at first strongly op
posed on the ground that the rear-
Reynaud Threatens to Drop
Support for Europe Council
By Robert Yoakum
Former Premier Paul Reynaud
threatened yesterday to withdraw
his support for the Council of Eu
rope, saying that he would not con
tinue to associate himself “with a
policy of weakness when action is
called for.”
M. Reynaud, an Independent
Conservative and a member of the
French delegation at the Strasbourg
organization, also took advantage
of a debate in the French National
Assembly to berate Guy Mollet,
Minister of State for European Af
fairs, for what he called a “Social
ism first” approach toward Council
of Europe problems.
M. Reynaud charged that Great
Britain had refused to give up any
national sovereignty, would not ac
cept supra-national authority, and
“does not accept the idea of a Euro
pean army.”
The former Premier said “the
only way” of convincing Britain was
to create a united Europe without
it “with whatever ons is able.”
“A unit 3d Europe is the only way
of rearm’ng Germany without dan
ger,” M. Reynaud said. “There arc
some people who think that we
have 20 years in which to make a
united Europe. I don’t know if we
have 20 weeks.
“But the government is represent
ed at Strasbourg,” M. Reynaud
continued, “by a minister who said
there that he could not envision,
as a Socialist, a united Europe
without Great Britain.”
M. Mollet replied: “I said that
I was hostile to a partial solution,
because I am a federalist, because
I am a Socialist and because I am
French, since a union only with
Germany and Italy would not be
accepted by a French Parliament.”
M. Reynaud also clashed with
another former French Premier,
Paul Ramadier, who, he said, had
warned against a Europe dominat
ed by the Vatican in a recent
speech before the French Socialist
congress.
"I want neither a Vatican nor a
schism,” M. Ramadier answered. “I
want a completely United Europe.”
At the conclusion of the debate
the Assembly passed, by a vote of
353 against 184, a resolution asking
the government “to take all steps
likely to increase the political au
thority of the Council of Europe ”
U.S. Gets Delay
On UN Debate
Over Formosa
Marines Arrive at Changjin ,
Reservoir for Korean Power
But They Still Have Not Reached Hydro-electric
Plants, Which Reds May Have Dismantled
By the United Press
TOKYO, Nov. 16 (Thursday).—United States Marines yesterday
reached the Changjin reservoir, which supplies the bulk of North
Korea’s hydro-electric power.
A motorized patrol of the Marines’ 7th Regiment arrived at the
shores of the reservoir at 4 p.m., and 30 minutes later troops began
moving on unopposed to high
ground commanding the southern
tip of the artificial lake.
Changjin had previously been
heavily defended by Chinese Com
munist forces, apparently to give
them time to dismantle the power
equipment.
Ninety miles southwest of Chang
jin, units of the American 1st
Cavalry Division entered the wall
ed town of Yongbyon and found
that the Reds had left, abandon
ing freshly dug defenses.
Reds Attack ROKg
But Chinese Communists in bat
talion strength hit elements of the
Republic of Korea’s 8th Division
at a point four miles northeast of
Tokchon and forced the Repub
licans back four miles. Tokchon is
about 25 miles east of Yongbyon.
The marines, who advanced two
miles from the village of Hagaru
to the reservoir shores, had still
not reached the hydro - electric
plants themselves, and it was not
known whether the Reds had been
able to dismantle and transport the
plants across the Manchurian bor
der.
Several days ago, the marines
overran heavy crates of equipment
the Chinese had not had time to
remove.
It was estimated here that the
marines had destroyed the better
part of a Chinese division of some
10,000 men in their slow advance
during the last two weeks over Icy
mountain trails toward the reser
voir.
Civilians at Poklichi, the next
village north of Hagaru, said the
last of the Reds withdrew four days
(Continued on Page 2, Col. 2)
By the Associated Press
LAKE SUCCESS, Nov. 15. — At
the suggestion of the United States,
the United Nations Assembly’s
Political Committee today post
poned consideration of Formosa’s
future until a later date. The vote
was 53-0 with five abstaining. Com
munist China’s nine-member dele
gation, appointed to participate in
the Security Council’s debate on
Formosa, was expected momentar
ily. '
The committee decided, by 14
votes to 8 with 36 abstentions, to
consider next Nationalist China’s
charges against Russia. The Na
tionalists have accused Moscow of
violating treaty provisions and the
UN Charter by helping the Chinese
Reds to gain power.
Oriental Problems Complicated
In calling for a postponement of
the Formosan discussion, which was
on the agenda for today, American
delegate John Foster Dulles told
the committee that the conduct of
the Chinese Red regime has com
plicated oriental problems.
He referred to the Chinese Reds’
intervention in Korea, their inva
sion of Tibet, aid given to Ho Chi-
minh’s rebels in Indo-China and
their threats to invade Formosa.
If aggressive war sweeps through
(Continued on Page 2, Col, 3)
U.K. Will Revive Home Guard
When an ‘Emergency Arises’
By Jack Tait
From the Herald Tribune Bureau
Copyright New York Herald Tribune, Inc.
LONDON, Nov. 15.—Britain’s
Home Guard of World War II is
to be revived when an “actual emer
gency arises,” Defense Minister
Emanuel Shinwell announced in
the House of Commons today.
Mr. Shinwell said “planning
measures (to establish the guard)
are being put in hand at once.” He
said the guard “will form part of
the armed forces of the Crown and
its functions will be broadly similar
to those which the Home Guard
performed so admirably in the
recent war.”
The Home Guard of the last war
was in operation for four and a
half years. It was disbanded in
1945 when the war was over. At
one point the strength of this
voluntary service totaled 1,794,000.
Its casualties were 1,206 dead and
557 wounded.
The Home Guard of any future
war will undoubtedly—as it was in
the last—be assigned to guarding
vulnerable points in Britain’s home
defense. It also would be on the
alert against attack by parachutists,
and would assist in general civil
defense and anti-aircraft duties.
Mr. Shinwell made it clear that
the government at the present time
was more concerned about obtain
ing volunteers for civil defense
than for the Home Guard. He as
sured prospective volunteers for the
Home Guard that if they joined
civil defense units now they could
transfer to the guard freely if and
when it is re-established.
“The training which potential
Home Guard members would receive
by joining civil defense services or
the special constabulary,” Mr. Shin
well said, “would be of considerable
value If they should later wish to
join and can he accepted for the
Home Guard on its formation.”
Believes 6 Disaster
Can Be Avoided’
But Says a ‘Really Great
Crisis’ Would Have to
Be Faced Resolutely
By the Associated Press
WASHINGTON, Nov. 15.—Secre
tary of State Dean Acbeson declar
ed today that the United State*
must do everything possible to pre
vent Red China’s armed interven
tion in Korea from plunging the
world into “a tragedy of the most
colossal nature.”
Speaking at a conference of rep
resentatives of 200 organizations at
the State Department, Mr. Ache-
son also said that the world is
passing through “a very dangerous
period in history which seems to
get increasingly dangerous as it
develops.”
Mr. Acheson said: “It seems to
me that disaster can be avoided,
but it can be avoided only if we
exercise a great deal of common
sense in our policies and leadership
throughout the world.”
One of a Series
The conference is one of a series
the State Department has been
holding to provide a background on
foreign affairs for representatives
of farm, labor, business, veterans’
and other groups.
Mr. Acheson, speaking extem
poraneously, dealt in considerable
detail with the Far East crisis. He
recalled how it recently appeared
that United Nations forces would
have Korean fighting substantially
ended in a few weeks, when “this
Chinese intervention occurred.”
One of the first things necessary
in this situation, Mr. Acheson con
tinued, is to clear away any pos
sible misunderstanding about the
United States and United Nations
aims which might exist in the
minds of the Chinese Communists.
Mr. Acheson said: “If they believe
that the United States and the
United Nations have ulterior designs
with respect to Manchuria, as their
propaganda has claimed, then
everything which can be done must
be done to remove their fears.
“If they fear a loss of their in
terests in the border areas—the
Yalu River installations — then
everything possible must be done
to make sure that they know that
their interests are being, and will
be carefully protected.
‘Really Great Crisis’
“If, on the other hand, the
Chinese have been led, either by
ignorance or by seme other means,
to precipitate a really great crisis
in the world, then that must be
met with all the resolution, all the
soberness, and all the wisdom at
our command.”
Mr. Acheson said: “We hope that
is not the case. It would be a
tragedy of the most colossal nature
if that were so. And, therefore, we
must explore carefully and wisely
every possibility of the Charter of
the United Nations.”
Before turning to the Far East,
Mr. Acheson discussed European
rearmament. He said that as em
phasis shifts from economic to mili
tary preparations, “one should not
open the back door or side door to
Communism through economic
penetration.”
He apparently meant the United
States must continue to give Euro
peans economic as well as military
help.
Other speakers were Under Secre
tary of State James Webb and
Assistant Secretary of State Dean
Rusk
Mr. Webb said the State Depart
ment next year will make increas
ing efforts to cope with the effects
of Red propaganda abroad.
Mr. Rusk said the UN can work
out a settlement of the Korean
crisis only if the “extremely dan
gerous” Chinese Communist inter
vention has the limited aim of
protecting their border and power
sources.
“But if their intent is to seize
Korea, or this new phase of inter
vention is part of a general Com
munist campaign of aggression, the
UN cannot negotiate a settlement,”
he said.
Laborite Is Criticized
For Absence in Korea
LONDON, Nov. 15 (A.P.).—A
closed meeting of Labor party
members of Parliament criticized
Tom Driberg today for being ab
sent during several confidence
votes during the last three months.
Mr. Driberg was in Korea, cover
ing the war for “Reynolds News,”
a pro-government Sunday news
paper.
An official commun’que from the
meeting said Mr. Driberg was
“censured for gross neglect of liis
Parliamentary duties.” He “apolo
gized and expressed his deep re
gret,” the statement said.
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