WAR IN CHINA

New Zealand Herald, Volume 82, Issue 25357, 12 November 1945, Page 5

WAR IN CHINA

FIRST REAL ATTACK MORE MEN ON WAY CHUNGKING'S PLANS OCCUPYING MANCHURIA (Herd. «.80 p.m.) NEW YOEK, Nov. 10 Heavy fighting between the Chinese Communists and the Nationalist forces has broken out along the Great Wall of China north of the port of C'hinwangtao, bringing artillery and heavy mortars into action in the Chinese civil war for the first time, says the Associated Press correspondent in Chungking. New clashes were reported along the C'hinwangtao-T'eiping railway south of Chinwanglao. The presence of American marines guarding the railway bridge prevented the Communists from attacking the Nationalist-controlled armed Japanese holding Shislurig village south of Cliinwangtao. The Communists halted the attack when the marines refused to pull back out of danger. Well-Equipped Troops Moving Three more American transports carrying well-equipped troops of the Chinese Eighth Army have left Kowloon (near Hongkong), for Tsingtao (a port in Shantung Province). American soldiers returning from Haiphong (IndoChina) said two Chinese armies had been moved from there in 20 American ships. They understood that one army was bound for North China and the other for Formosa.

Semi-official Government sources said earlier that the Government would probably make its major drive into Manchuria by moving east from the Chinwangtao area along the PeipingMukden railway. It was hoped to reach Manchuria this month In replace the Russian occupation forces. Communists Will Resist The Communists stated that they would oppose the entry of Generalissimo Chiang Kai-shek's troops into Manchuria or into any other liberated areas. They charged the Government with using 49 armies, aggregating 127 divisions, composed of nearly 1,000.000 men in addition to 350,000 puppet troops. The Government divisions, they alleged, were, supplied wholly or partly with American equipment. A Communist spokesman said an American ultimatum was served on the commander of the Red troops at Slianhaikann. the coastal terminus of the Great Wall, to withdraw his forces 100 kilometres from either side of the Peiping-Mukden . railway. The commander rejected the ultimatum. American Statement The American commander in China, General Wedemeyer, who is in Chungking, said the United States woidd not help China to move troops into Manchuria, but the Central Government had already obtained 20 American transport planes. General • Wedemeyer emphasised that the TTnited Slates would continue to assist in the repatriation of the Japanese from tho Chinese theatre, but the American forces would remain nonpartisan. He expressed regret about American troops being involved in clashes, but asserted that the Americans had not taken the initiative. CONTROLLED ECONOMY GREEK SEVEN-POINT PLAN (I'enl. p.m.) A'l'H i'.XH, Nov. 10 The Government of Greece lias announced the following seven-point programme for a controlled economy in agreement with the British and American Embassies and Hurra: — 1. Readjustment of taxation and an increase in prices of Unrra. supplies in order to balance the Budget on a sound foundation. 2. Increase of imports. Foreign currency will 'be allocated without obstruction for the import of every item considered useful and permitted to be imported by the State. The price and the use of imported goods will he controlled. .'5. Foreign currency will he sold to importers at official rates, but subject to surcharges varying with the types of goods, with the purpose of absorbing the difference between world and domestic price levels. 'l. Issue of credits will he controlled with the object of developing production and internal trade. 5. Application will be made on a broader basis for financial assistance from Allied sources. Tf granted, the assistance will be used mainly for the country's immediate rehabilitation. fi. TTnrra supplies will be distributed and valued promptly. Effective price control will be enforced. COMMANDO MARINES (Rent. f!.:to (i.iii.) LONDON. Nov. 10 A comiiuiinto brigade of 3000 meji will be maintained as part of the peacetime strength ol the Royal Marines. Every marine iu future will do a spell in the commando service as part of his normal engagement*..