Pacific Stars And Stripes (Newspaper) - September 30, 1948, Tokyo, Japan                              Weather forecast Friday \ High Low condition Tokyo 77 60 fair Kyoto 74 60 fair Seoul. 75 55 fair. Sapporo. 63 40 Cloudy and stripes City edition volume 4, number 229 share this paper thursday september 30, 1948 share this paper up Apins Apps wire services quiz Kurusu in bribe Case warrant for arrest on malfeasance expected by Robert y. Horiuchi ins correspondent the probe of the Showa Denko loan scandal reached into the Cabi Riet. Level for the first time today As state minister Takeo Kurusu surrendered for questioning which probably will Lead to his arrest. Procurator Hitoshi Lyo said a a arrant has Bee prepared which charges Kurusu with malfeasance in office through corruption. Lyo added that Kurusu is. Suspected of having accepted Money As bribes from Showa Denko fertilizer Combine while he was director and the director general of the Indus trial Bank while he was finance minister of the Kata Yama Cabinet and during his present term of office As head of the economic stabilization Board. Kurusu will be questioned probably until this even ing when it was considered Likely the warrant. Will reserved. Meanwhile procurators sear Ched the private Home and the official residence of the state minister. Watanabe procurator Tome searched Kurusu a private Home while procurator Haruo Yashiro supervised the search of his official  each was armed with a War rant to search and seize. His Secretary Tsunehiko Mitsumoto was arrested at 6ain. By procurators who raided his Home. The Homes of both Kurusu and Mitsumoto. Were searched by , now head of the economic stabilization Boa was the finance  Katayama Cabinet which. Was based on the same Denio. Brauc social democratic co operative party coalition As the Ashida Cabinet. It Rusu has1 been close to the Showa Denko concern since. The time that Setsuzo Hinohara was made president. A. As director of the Industrial Bank Kurusu was one of the men designated to select president for the com a adj. Or a urus u. Was finance min Ter of tit Katayama Cabinet a luring i Jilich tune Showa Denko received the bulk of the2,867,000,000 yen it borrowed from the government. Kurusu attended the Cabinet meeting last night and after the meeting was adjourn a he was closeted for 15 minutes with attorney Gene ral Toshio Suzuki. Suzuki pleaded with news men after the conference to re Frain from asking  brushed by newsmen in a Huff refusing to talk with.  All Kurusu has steadfastly de Nied his guilt. Last week when rumours circulated that he would be arrested he took the unusual move of taking cognizance of the rumours enough to deny he was implicated in the loan scandal at the same tune he  and denied that Prem Ier Hitoshi Ashida was involved. Ashida s name had not been linked to the scandal Wen by Rumor despite the fact his close Friend and political supporter Tsumei Sugawara is the brother in Law of Setsuzo Hinohara jailed presi Dent of Showa Denko. Palestine arabs form new gov t Lake Success sept. 30 up Philestine arabs announced the formation of a government today and claimed sovereignty Over All Palestine in a Cable to the United nations from  Cable was addressed to. Trygve lie and signed by Ahmed Hilmi Pasha who styled himself the Premier and acting Loreign Secretary of the new government. The claim was certain to be disputed not Only by Israel but by  Abdullah s Arab legion already occupies most of Arab held Palestine and he has indicated his desire to tire territory to his  Hilmi is associated with Haj Amin be Hussein. Grand Mufti of Jerusalem who has just returned to his Homeland Kile. After 11 years of probe May hit entire finance system of Rob by int l news service investigation of the Showa Denko Case yesterday threat ened to expand into a probe of the operations of the re construction finance Bank whose Loans to japanese Industry totalled 89,215,000,000 yen August 31. In an exclusive interview with International news ser vice attorney general Yoshio Suzuki disclosed that he had directed Public procurators to determine the legality of therb Loans. He made his statement after newspapers began to Point out that both the Mitsui min ing company and the Japan electric Power generation and transmission company received greater. Rob Loans than Showa Denko. Of he communist Okahata silent now on the Showa Denko probe made the Flat charge that irregularity and corruption were involved in other Rob Loans. The aka Hata blast which charged the Showa Denko scandal was the inevitable result of Monopo Listic capitalism appeared to be the opening gun in the Long delayed communist propaganda Campaign. Suzuki made his position Clear by saying since these Loans Are being borne by the japanese people i believe that it is the duty of my office to find out whether or not they were obtained  in its August report the Rob said it loaned 47,994,000 000 yen for Industrial installations and 41,220,000,000 yen for operating expenses of these Loans totalling 89,215, 000,000 yen the Rob said 67,675,000,000 yen is still out standing. The communist newspaper Okahata charged yesterday that the borrowers did not Haye the slightest intention of repaying the  it added they Are resort ing to All Means of bribery and trickery to obtain shares of the  the attorney general said office would not to affected by political  if sufficient evidence is obtained we shall not hesitate to arrest and indict the suspect regardless of his official position Suzuki said. He flatly denied communist allegations that he was inter Fering with the Public prosecutors reported attempts to carry on the investigation into High government circles. I cannot cite names but 1 can assure you that investigations Are being made of per sons regardless of their Posi Tion provided such investigations seem warranted to the prosecutors Suzuki said. He made the statement in reply to a question As to whether or. Takeo Kurusu director general of the economic stabilization boards and Hisato Ichimasa governor of the Bank of Japan were being investigated. Vienna said storing food for blockade Vienna sept. 30 up qualified authorities said wednesday night that Austria is fully prepared for any Sovie attempt to blockade the West Ern sectors of Vienna As they have the Western sectors of Berlin. They said the govern ment expects such a soviet move and in anticipation of it the government is storing sup plies sufficient to feed the City s 1,600,000 people for six to Cine months. Soviets Buzz . Airmen Over Berlin by Richard Kasischke Berlin sept. 30 a new interference with the Allied Airlift by soviet fighter planes heightened the Berlin crisis yesterday nine russian yaks dangerously buzzed two american transports in a corridor in the soviet . Air officials said they sent a written protest to the russians demanding remedial action. The protest charge the russians with violating air safety . Vincent h. Gookin . Representative at the four Power Berlin air safety Center filed the protest which he said was based upon accounts by pilots of two c-54  pilots reported they were divided upon by soviet yaks As they were carrying cargoes to Berlin through the Hamburg Berlin corridor. They were inbound from Fassburg. Coal base for the Airlift. They said the buzzing occurred at about 11 45 .a.m. One Pilot said his ship was buzzed by five yaks and the other by  said the pilots asserted the yaks dived Down at the Supply transports an around them coming within 100  generally constitutes simulated tacks shallow dives from  and swoops from the sides. We. Have vigorously pro tested the incidents to the russians and demanded what they Are. Going to do about it a senior air officer said. These were the latest of several recent soviet perpetrated incidents in the air corridors which the americans asserted violated four Power flying regulations and were designed to harass the Block Ade breaking Airlift to Berlin. Last week a soviet fighter flew dangerously close to an american passenger transport. During the last week also the americans protested a soviet announcement of close forma Tion flying by russian aircraft which violates air corridor rules and a soviet announce ment of anti aircraft firing practice in the corridors to a height of 10,000 feet. Citizenship lost woman sues Sec y by United press miss Hatsuko Ouye Ameri can born japanese of set Aga Yaku Tokyo has filed Sui against . Secretary of state George Marshall to re Coyer her citizenship. In a complaint filed in the . District court in Hono Lulu she said she has been deprived of her american citizenship because she voted in the 1946 japanese elections while living at Hiroshima. She says that when she applied for a passport to return to Hawaii in 1947, the United states Consil at Kobe refused it on the grounds that she had forfeited her citizenship by voting in the japanese elec Tion. 0 she asked again for a. Pass port at Yokohama in january of this year and was again refused for the same  papers assert that her participation in the japanese election was based on mis take misinformation mis understanding undue in Euler ice and  plaintiff Points out that the 1946 election in Japan was he first in which women were Given the right to vote. She says she was told that it was he duty of every woman in Japan of majority age to take part in the election. And she says she was informed that she would lose her food ration and migh t be subject to punishment under the Law if she did not vote. Crosby wed 18 years Hollywood sept. 30 up eighteen years ago to Day Dixie Lee a promising Young film actress married an obscure Singer with Paul Whiteman s band Hollywood doubted he d Ever amount to much. His name. Bin Crosby. Scap checking on underground report by United press Allied Headquarters officials Are checking into re ports that a formosan under ground organization i operating in Japan. Existence of such an illegal organization was revealed in United press  officials in Tokyo now Haye asked officials i general Macarthur s head quarters to investigate the activities of the group it was  quarters believe the leaders. Of the so called formosan underground organization which is working for formosan Independence Are professional agitators and believe the organization is not yet  China Public and Pri vate groups have been calling for general Macarthur to stamp out the organization in Japan and take the leaders into custody. Similar action has been advocated by som sections of the chinese press. . Factories up War output Washington sept. 30 up a Survey showed that the $15,000,000,000 armed forces budget for the fiscal year of 1949 is beginning to pump a Stream of new guns tanks and planes from Ameri can factories. It stepped up production machine guns and my Rifle parts at the Spring hell  and contracts for 213 new bombers and fighters and new 71 super tanks. The army ordered increased production of machine guns for Jet planes to keep up with in creased plane production. The army set aside $8,000,000 Foi the development of the new improved 50-caliber machine gun and the new. Fully Automa tic Rifle to replace them a More than 400 b-29 super fortresses Are being hauled out of storage and Are being modernized. The air Force announced it is spending $23,000,000 for the development of new bombers. The new army 71-tank was reported Superior to any known in the world including the russian Stalin-3 and the Ger Man Tiger tank. Another medium tank is under development but the army refuses to disclose any details. It is equipped with a Joy stick control like an air plane instead of the conventional steering levers. The device was reported to enable the tank to turn in a minimum of space. The Navy is building 60 new ships incorporating postwar developments in the design. These include a 60,000-ton air Craft Carrier new sub killers High Speed submarines destroyers and cruisers. It is converting another 33 ships for new uses. It also plans to make 50 per cent of its Carrier planes Jet propelled. It has been purchasing 1,165 new planes and. Is withdrawing others from storage at the rate of 180 per month. The Navy also disclosed the development of a new steering methods which might be used in War time for trans Ocean move Jents threatened by. Sub Marine attacks. Anglo slav Trade pact talks begun London sept. 30 a an informed British source said today that Britain and Yugoslavia Are within sight of a Trade agreement for 1949. Britain seeking non Dollar sources vital food and raw materials began negotiations with Yugoslavia Long before he yugoslav co inform Row had pinched the communist state s economic Structure. The agreement if reached would not become effective until the two nations Settle their Long standing dispute Over Britain s 12,000,000-Pound claim for compensation for British properties confiscated n Yugoslavia after the War. Barring unforeseen difficult ies the source said talks now underway Here probably ill be concluded amicably in a matter of Days. Then negotiations on the compensation question will begin. It could not be estimated How Long hese will last. Russia formally charged by West with in betrayal atom problem Heads Agenda in committee Paris sept. 30 up the United nations Politi Cal committee agreed today to debate the East West split Over the control of atomic Energy immediately and to take up the soviet Dis armament proposals second. Palestine was made the third item on the  the first part of the Agenda was reached after three hours of debate. The vote was 42 to  committee agreed to take up fourth the United nations report on Greece fifth the korean question and sixth the disposition of former italian colonies. The United kingdom the United states the Western european Powers and the latin american countries supported the first part of the Agenda a Compromise proposed by chairman Paul Henri Spaak of Belgium. The soviet bloc voted against it and the Arab nations abstained. The United states Britai nand Russia had asked that Palestine be debated first but the request was Defeated 21 to 16.much of the debate pivoted on russian charges that the West wanted to discuss the commission s atomic report for propaganda purposes Only and counter charges by the British that soviet Delegate Andre Vishinsky was merely propagandizing when he proposed a one third Cut in the arms of the big five the russians wanted the italian colonies taken up Early but the committee supported american contentions that it was a new problem which required study by most of the 58 delegations  United kingdom Australia and Egypt led the successful Campaign to have a in convention of genocide head the Agenda of the As Sembly s Legal committee. The convention would out Law the mass extinction of racial religious National and political groups. Civil War rages in Central Luzon Manila sept. 30 up the War Between the Huckba Lahapa arid philippine government troops is racing again in Central  m Taruc communist Leader of some 100,000 filipino peasants has gone Back int hiding after a 50-Day truce and his Hub Alaha guerrillas Are engaged in hit and run fighting once  time Taruc is a Volun tary fugitive. Officially he is no longer an outlaw. He is a member in Good standing of the National House of repro  of president Elpidio Quirino to restore order to the Rice producing farmlands appear to have failed. The government offered to Pardon the formerly outlawed dissidents if they registered themselves and their firearms during an amnesty period ending last August 15.less than 200 hunks Regis t ered and Only a handful of Aruns were turned  government however has continued Quirino s a Cial amelioration  possible the government has offered Relief and welfare services to the pea Sants and has promised land reforms which would end the old Feudal landlord system. Called subversive stinging note Calls soviet acts illegal coercive Nicholas Scholoff Zaikoff above was arrested in Chi Cago recently on charges of being an alien and a member of an organization advocating forceful overthrow of the  government. Under the name of George Zirinsky Zaikoff i executive Secretary of the All slav Congress. Which opened its convention i Chicago the Day of Zaikoff s arrest. Russian slave workers escape by Walter bundle Berlin sept. 30 up German police in the British sector said that 20 German slave labourers slated for work in the russian uranium mines at Aue on the czechoslovak Border escaped from a train passing through Berlin. The labourers Are the first contingent in some time to pass though Berlin in route to labor Camps in Czechoslovakia an Poland. Russian authorities suspended the practice of routing conscripts through Berlin because of the Large number of escapees. Police said that eight of the men were released to join their families in the Western Sec tors the other 12 Are being held pending a decision by British officials. In the meantime German news reports said that Russi ans ordered German plants in the soviet zone to fill a num Ber of urgent military orders with emphasis on Jet engine turbines and other modern warplane parts. The american licensed Den news Agency said that the in formation on soviet use of German plants of rearmament was obtained from Wel informed Heripan sources in the soviet zone. Change in policy reported in China safely record claimed san Francisco sept. 30 a trans Ocean air lines announced it has completed with "100 per cent a safety record in ferrying 150 twin engine Curtiss c-46 command Xan sports to the chinese air Force at Shanghai. The plane were purchased from . War surplus. Banking sept. 30 up observer s viewed formed Premier Chang Chun s Broad cast As a Harbinger of a new chinese policy of assuming Active initiative in the solution of the japanese peace problem and promoting far Eastern economic cooperation. Though Chang now holds no official position it is known hat he has a Strong Leader of the powerful political science clique which virtual a manages foreign relations. Their is no doubt Chang s recommendations will form the Basic principles of the new Ore Gri  addition to laying Down the outlines of a new policy Chang Chun s broadcast is believed to have gone a Long Wain allaying chinese fears an suspicions regarding Japan and the United states policy in Japan which Early this year erupted in anti Ameri can Aid to Japan agitations. Draft inductions delayed to nov. 1 St. Louis sept. 30 up inductions under the draft Law have been delayed until november 1, maj. Gen. Lewis Hershey said today because of increased Normal enlistment  National director of selective service said that about 161,000 men have enlisted in the nations armed ser vice since last june by Louis Nevin Paris sept. 30 a the United states Britain and France accused Russia before the bar of the United nations yesterday of menacing world peace with a blockade of Berlin which has brought Germany s first City to the Brink of economic ruin. On the 10th anniversary of the Munich pact which ignite the fuse of world War ii the three Western Powers told the United nations in identical Tito sides with soviets in in Assembly meet in by Louis be vhf Paris sept. 30 a Yugoslavia lined up with the so Viet Union yesterday As the Western Powers readied their Case against the russians in the United nations. The soviet Ukraine closed the plenary session of the in general Assembly accusing the United states of incite ment to  Yugoslavia whose Premier marshal Tito recently was denounced by the co inform for straying from the Moscow communist line came with yugoslavian foreign minister Edvard Kardels attributing the world s woes to the anti soviet policies of the Western Powers. Dimitri s. Manuil sky ukrainian foreign minister also accused the United states of trying to split Europe in order to conquer  in one part of the world he said reaction is raising its ugly head. New wars Are being commenced. In the communist world however democracy and peace Are being strengthened. The people Are Busy at the constructive work of rebuilding their Homes after the War damage despite the economic blockade of the United. States of  Manuil sky said we do not seek dollars. We will not sacrifice cur National Honor for american goods or War  the United states he said has set up 489 military Basss throughout the world. These bases Are keeping under control the. Mediterranean Basin Central Africa latin America the Middle East the far East and. The Pacific. The people of Thesa areas cannot fail to realize that their Independence is  Manuil sky was the last speaker in the general debate and Assembly. President or. Herbert Evatt of Australia adjourned the full Assembly without setting a Date for the next plenary session. The heavy committee work is to begin now. Kardels listed the differences Between the russians and the West Point by Point and put his country on the Side of the people s  return of ships demanded by . Washington sept. 30 ins the United states has again demanded that Russia return 31 naval vessels loaned during the War and indicate that the Case would be taken before an International court if he soviets refuse. The vessels three inc break Ders and 28 frigates were loaned Independent of the Mai russian 11-billion-Dollar lend ease account. It was revealed tuesday that the soviets have3een called on again to Settle that account. The United states wants its naval Craft Back under article five of the master lend Leas agreement with Russia where Jay title to those vessels re i notes that the soviet Union is Bent. Upon driving them out of Berlin and bringing the City solely under russian Rule. Three identical notes de manding Early action by the in Security Council were delivered to Secretary Genera Trygve lie shortly after 4 . Yesterday in the palais Decaillot. The text of the British note identical wifi the others except for the salutations said i have the Honor on behalf of Hig majesty s government in the United kingdom in agreement with the govern ments of the United states of America and the French re Public to draw your attention to the serious imposition by the government of the Union of soviet socialist republics of restrictions on transport and communications Between the Western zones of occupation in Germany and Berlin quite apart rom the fact that it is in conflict with rights of his majesty s government in the United kingdom the govern ment of the United states of America and the government of France with regard to the occupation and administration of Berlin this action by the soviet government is contrary to its obligation under articled of the charter of the United nations and creates a threat to the peace within the meaning of chapter 7 of the  is Clear from the protracted Exchange of notes and the conversations which have taken place on the initiative of the three governments be tween them and the soviet government that the three governments conscious of their obligation under the charter to Settle their disputes by peace Ful Means have made every Effort to resolve directly with the soviet government. Copies of the relevant Docu ments Are submitted separately. Particular attention is drawn to the summary of the situation which is contained in the note of his majesty s government and the governments of the United states of Amer Ica and the French Republic dated september 26 and 27 As follows the Issue Between the soviet government and the Western occupying Powers is therefore not that of technical difficulties in communication of the currency for Berlin. The Issue is that the soviet government has clearly shown by its actions that it is attempting by illegal and coercive Meas ures in disregard of its obligations to secure political objectives to which it is not entitled and which it could not achieve by peaceful Means. It has resorted to blockade Meas ures it has threatened the Berlin population with starvation disease and economic ruin it has tolerated disorders continued on Page 4 intelligence body aids China reds Hanking sept. 30 up the chinese communists have built up a highly efficient worldwide intelligence and propaganda machine to supple ment their present armed at tempt to overthrow Chiang Kai Shek s nationalist regime. They Are also employing this machine among Asiatic races Maine with the United states to imitate Russia s ideological expansion in Eastern Europe. Chinese intelligence reports say the Mastermind directing the machine is Chou. In Lai number two chinese red who was chief communist repro government. Persian army reshuffle Teheran sept 30 up a major reshuffle of the per Sian army command was re ported underway As the chief of staff marshal Ali Razmara warned this Oil Rich nation would certainly be one of Theattle grounds of world War Iii. Tentative in the Marshall mediation Days. He pilots the program in his position As min ister of overseas activities of the communist political Bureau