SERIOUS BLOW FOR CHINA

Bay of Plenty Times, Volume LXXVII, Issue 14859, 22 December 1948, Page 3

SERIOUS BLOW FOR CHINA

SUSPENSION OF ALL RECONSTRUCTION

Mr Paul Hoffman’s Decision

Communist Progress

Continues

'London, Dec. 21

The Economic Co-operation Administration has suspended all reconstruction projects in China. Mr Paul Hoffman, the Marshall Plan administrator, said this decision was made during his recent visit to China when he surveyed the situation. ,

The programme calls for the spending of £32,500,000 on such things as the rebuilding of docks and transport.' The Congress vote for all kinds of economic aid for China has totalled over £67,000,000, with another £31,000,000 for military aid. The names of China’s new cabinet ministers are expected to be announced in Nanking tomorrow, after the Central Political Council has met to approve them. In East China, 2000 Communists have made a raid ten miles from Nanking, but on the other side of the Yangtse. Further east the Government reports heavy flighting 35 miles north of the river where it joins the canal area. Some Communist reinforcements are believed to be moving to this trouble point. In North China an unconfirmed report says the Communists have taken another town.

A Chinese airliner crashed today on an island near Hong Kong. Thirty-one people were killed. One of the passengers reported to be aboard the plane is Captain Quentin Roosevelt, a grandson of President Theadore Roosevelt.