NAMING BATTLE OF WORDS

Gisborne Herald, Volume LXXV, Issue 22572, 27 February 1948, Page 5

NAMING BATTLE OF WORDS

MUKDEN MENACED; INFLATION SOARS WRANGLE OVER PEACE MOVE RUMOURS NANKING, Feb. 25. As the Government and Communist forces battled for Mukden today, a heated debate on recent peace rumours took place in the central political conference of Koumintang, with the majority of members opposing the idea of a coalition Government as a solution to the conflict.

Attempt to Isolate Mukden At the same time China’s runaway inflation continued at breakneck speed. With the Government's loss of the Manchurian steel city of Anshan and Liaoyang during the past fortnight the Communists are attempting to isolate Mukden. The military spokesman said today that though fierce fighting is still in progress at Sinmin—south-west of Mukden —the Government forces expected a large-scale Communist attack from Penhsi —south-eastward thus sealing the city off from communication with the south. With the port of Yingkow, in the Gulf of Chihli still frozen and the Communists astride the Mukden-Peking railway, the Chinese Government garrison at Mukden is dependent on the air force for food and supplies. The spokesman said that food and ammunition at Mukden are at present adequate for three months. The situation generally was regarded as critical. Assault by 109,000 Communists The spokesman admitted that the Nationalist forces who retreated eastward after the Anshan battle had lost contact with the Manchuria headquarters at Mukden. He said that over 100,000 Communists, supported by heavy artillery, had stormed Anshan which was defended by only two Government regiments. In the Kuomintang debate, the extreme Right supporters charged the Americans with being ignorant of the actual conditions in China and stated that a coalition, involving the Communists, had already set unsavoury examples in Eastern Europe where radical elements promptly seized power. In this connection Dr. Wang’s foreign policy was once again criticised as being too weak and for allowing other countries to make “diplomatic inroads” in China. Too Late to Avert Crisis Regarding Manchuria, the conference felt it was too late to avert a crisis, members stating that changes in the Nationalist command should have been affected as far back as the time of the Szepingkai battle early last summer. There had been no check to the runaway inflation. Unconfirmed rumours of a possible Government reshuffle sent the United states dollar on Shanghai’s .black

market soaring to 300,000 Chinese dollars today—an increase of 45,000 in 24 hours. Gold which was worth 17,000,000 Chinese dollars per ounce yesterday, was quoted this afternoon at about 20,000,000, while foreign and Chinese shares gained a further 10 to 15 per cent. The price of rice reached a new record of 2,800,000 Chinese dollars per picul.