Communists Challenge Right Of British Warships To Sail Up The Yantse River

Wanganui Chronicle, 2 May 1949, Page 5

Communists Challenge Right Of British Warships To Sail Up The Yantse River

Foreign Powers Told To Get Out; Their Help Is Not Wanted

SHANGHAI, May 1 (Rec. 6 pm).—Britain’s right to sail naval vessels up the Yangtse was today challenged by General Li-Tao, spokesman for the Communist -Army Headquarters in China. Li denied that such a right existed. He said, in a broadcast: “The Chinese people must protect the territorial sovereignty of China and will not allow foreign Governments to infringe it.”

Denying that the Communists had been prepared to allow the, Amethyst to proceed to Nanking on condition she helped the Red i' Armies cross the Yangtse, Li I' said:

“The people's Liberation Army does not hope for any assistance from armed forces of any foreign country. On the contrary, it demands Great Britain, the United States and France to withdraw quickly their armed forces, warships, military aircraft and Marines in the Yangtse, Whangpoo and other places in China, and not aid the Chinese people's enemy in waging civil war.” He said the Communists were willing to establish diplomatic relations with foreign countries on the basis of “equality, mutual benefit and mutual respect for each other’s independence and integrity and territorial sovereignty.” The Communists today promised “to protect all foreign nations in China who are engaged in normal vocations."

Meanwhile, Shanghai witnessed the wildest price increases in its long history, with rice, vegetables, meat and daily necessities and cigarettes rising several hundred pe r cent, from the previous day. Imported cigarettes are priced at a minimum of two million yuan for a packet of 20. Gold yuan banknotes soared to more than seven million for one United States dollar. The Central Bank of China announced that it would issue its own notes in 500,000 ar.d 1,600,000 denominations —virtually accepting a collapse of the country’s banknote system. The garrison command and police have evacuated threatened Hangchow, a key point of the new Nationalist defence line and are nbw south of the Chinetang River. General Chow-Yan Chekiang, Provincial Governor, however, is still in Hangchow. Public order in Hangchow is at present maintained by a volunteer police force. Most of lhe shops are closed.

The evacuation of Hangchow was followed by the abandonment by Nationalist troops of three important

points 20 miles north and north-west. Meanwhile, a Communist pincer movement against the strategic road and railway junction of Mashing, 60 miles south-west of Shanghai, has continued to develop with Red spearheads today only 25 miles west and 15 miles north of their object. A garrison communique this morning placed the vanguard of the Red western force, which is advancing along the south bank of Taihu Lake, near the small town of Nansin, while to the north the Nationalist forces’ were withdrawn to Pinwang, from Wukiang, after a brief but fierce encounter. —Reuter.