Evening star., 1947-02-19
Z Communist Armies
Utterly Defeated,
|NationaIists Claim
BY the Assoeioted Press

NANKING, Feb. 19.-Two Com
munist armies, the new 4th and
the 18th Route. have been "ut-
terly defeated" by government
forces in Southern Shantung
provinces, Minister of Informa-
ton Peng Hsueh-pei declared
today.
Peng announced to a press con-
ference that the Red armies, under
Gen. Chen-yi and Gen. Liu Po-
cheng, had practically ceased to
exist" as the result of the govern
ment victories. including the cap
ture Of Liyi, Shantung Communist
capital.
Remnants of the defeated forces
are attempting to flee northward
across the Yellow River, he said.
Previous government reports from
the field indicated the bulk of the
Communist Shantung armies had
managed to escape into hilly coun-
try where mass pursuit would be
difficult If not impossible.
Government troops which pushed
northward out of Lini after the re-
treating Red garrison were re-
ported to have reached Chuhsien,
IS miles to the north, and Yishui,
so miles northeast.
In Southwest Shantung govern
ment field dispatches reported the
capture of Yihsien. which had fallen
to the Communists in their cam
paign.
China to Ask Assistance.
Meanwhile, Informa ton Minister
Peng intimated at his press con-
ference that the Chinese govern
ment expects to call on foreign
nations shortly for help in enforcing
economic stabilization measures.
The measures not only forbid
trading in foreign gold and ex-
change but require Chinese nation
ais to either surrender their foreign
assets or deposit the accounts in
Chinese banks.
Since much of the exchange assets
is held on account in foreign ma
tions, Peng was asked if China was
requesting foreign governments to
freeze or report such accounts.
Detailed measures are being
drawn now to cover this matter"
he replied.
Peng said the mere possession of
gold or foreign exchange was not
illegal under the regulations, which
merely prohibit trading In those
commodities. Reports have been
circulated that secret police were
stopping and searching Shanghai
individuals for such possessions.
Explaining the government move
to force the surrender of foreign
held assets, Peng said press reports
indicated that Chinese held more
than $500, ,000, 600 in the United
States alone.
The regulations require surrender
or deposit in China of bank de-
posits and credits, telegraphic trans
fers, demand, sight and time drafts:
checks and notes due within one
year, letters of credit, bank and
trade acceptances, government
OoilOn h1l0 OAAIo, OlCdoA1 AlOtCo. SdF-
ings certificates or other obliga-
tions due within a year, and any
other negotiable instruments due
within year and payable in fore
ign currency.
Chinese who are bonafide resi-.
dents of foreign countries are ex-
empt from the regulations.
Airlines Won't Be Sold.
Peng said the government did not
contemplate the sale of either the
Chinese domestic airlines or the
China Merchant Steamship Co.,
which controls most of the Chinese
flag shipping, in the government
program of selling commercial firms
to private capital.
A list for disposal under the new
economic program is being prepared
by the Executive Yuan, he said.
Meanwhile, in Shanghai the city
government completed arrange
ments for the rationing Of vital COM
modities, which will be put into ef-
feet when the approval of Premier
T. v. Soong is obtained. The plan
contemplates fixed allotments of
such daily necessities as rice, flour,
coal, edible oils, sugar, salt and cot
ton.