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Smee U.S, ALLIES IN CHINA REVEALED AS MERE BANDITS Cantonese Only Honest and Orderly Force WASHINGTON, Oct. 13.—Radical China is providing the only safeguard to American and other foreigners in the'midst of the bitterest civil war the country has yet known, while reac- tionary and militarist China is turn- “ Ing a savage face toward ita foreign allies, That is the perplexing fact which Ameriean state department. officials gather from the endless flow of dis- patches from Peking, Hankow, Shang- hai and Canton. It is confirmed by special press dispatches from Obina and {s now dignified by a reluctant editorial in the New York. Times— which always has influence with diplo- matic Washington, Expected Red Terror. Frank Lockhart was sent to Han- kow as American consul-general to watch over American commeretal in- terests in central China and to report on the dangerous spread of the na- tionalist doctrine ef the “red” ‘govern- ment at Canton. When the Cantonese forees started northward and cap- tured Hankow he was greatly alarmed. Foreign powers, except the Soviet Union, had backed. the militarists, Ohang Tso-lin and Wu Pet4u, to crush the radicals. When Wu fled and Found White Terror, Now Lookhart reports the Canton- In Peking Minister MacMurray finds ehaos spreading from the native qaarters to the gates of the foreign eompounds. Most of the self-consti- [KING GEORGE’S COMMISSION ON AMERICAN LABOR COSTS GETS TO WORK By LAURENCE TODD, Federated Press. \ WASHINGTON—(FP)—Premier Baldwin's Royal Labor Commission which was sent to the United States to study industrial relations in mass Production in order to justify tory policies in Britain, has paid its official calls in Washington and gone to work. Its first inspection of an industrial plant was that of the Baltimore and Ohio railroad shops at Mount Clare, Baltimore, where the eo-called B. and O, plan of cooperation between the management and trade unions in increasing production is in operation; Labor Representatives! Baldwin's commission was ostens- {bly created in order to help British manufacturers pay @ wage scale more nearly up to the American wage level. Two represensatives of British labor and two spokesmen of British em- ployers ate among its members. The labor men ara Hrnest Bevin, secre- tary of the Transport and General Workers Union, and J: Taylor, execu- tive board member of .the Amalga- mated Wngineering (Machinists) Un- fons. The employers’ men are Mich- eel B, Dewar and Randolph Smith. Sir William Mackenzte ds chairman, He Is assisted in the “impartial” post- tion by F. W, Leggett, assistant sec- retary of the international relations department of the ministry of labor; I, Haig Mitchell, principal conciliation officer of the ministry, and H. C. Em- erson, acting as secretary. Trying to Crush Minera, This commission was sent to Amen ica while Baldwin’s tory majority in parliament was trying to crush the British miners’ union, Its announced purpose ds to find out why American employers can pay high wages and still make profits while British em- ployers are paying low wages and making no profits: In. view of Bald- win’s private status as a manufac turer and a tory, the majority report which will follow an admiring tour of the plants of Mellon, Ford, Schwab, General Wlectrio, International Har vester, Baldwin Locomotive and other concerns may be readily fore cast. That report ts ilkely to declare that American employers who have made . |gigantie output possible and are pay- ing hith wages are untrammelled by @ lot of trade union rules and agree- ments. It may offer a theory of in- dustrial autocracy as the basis for re- organization of British industry on @ modern mass-production plan. It will eulogize the helpfulness of the antl union, corperationg in the United States and will deplore the class bit- terness maintained in Britain through strikes and trade union activities. Such « report by the majority may be emtictpated in yiew of the political and economie situation faced by the Natural Resources Abundant, tie Baldeta” eaatiteke calor are the struggle ofthe more aggress- ive elements of labor to establish high wages} the fact that American Tesolirces ate abundant, labor relatively low, economic conditions resulting from the world war highly favorable to American as against British tndus- tries, and modern machinery fer more prevalent here than in Hurope, If they ignore these factors, can they De understand Henry Ford's principle that the payment of a high wage pro- motes demand for more goods and hence makes possible higher profits and egain higher wages? It 48 expected that the labor mem- bers of the commission will report that the highest wages in America ‘are paid in the building trades, which are unfonized, and that the worst in- dustrial conditidns are found in those industries in which the worker has been ieast emancipated from feudal- ism. in BRITISH LABOR PARTY EXHIBITS YELLOW STREAK Robert Williams Aids Mine Owners LONDON, Oct. 18—The machine of the reactionary labor party official dom at the national conference in Margate had the satisfaction of roll ing over the resolutions demanding that Communist organizations be per mitted to affiliate with the labor party, but the joy of the right wingers was somewhat mixed with vinegar when they saw 20 Communist delegates present af the conference, tho they hed no right to be thera, according to the decrees of Ramsay MacDonald: But the Communists were there be- cause local labor party branches elect- ed them: Willlams a Renegade. One of the sensations of the ses- sions of the national conference of the labor party was the conduct of- Robert Williams, onetime member of the Communist Party; but expelled for conduct unbecoming a member of a revolutionary organization: Williams is now business manager of the Lon- don Daily Herald: The former revolu- tionist came out boldly for a policy of making peace with the employers rather than Aghting them: Williams spurned the suggestion of an embargo on coal and attacked the miners’ federation for having voted to pull the safety men out of the pits: Palace Now Night Club. | CONSTANTINOPLE, Oct: 18.—The Palace of Yildis, formerly the prop- erty of Sultan Abdul Hamid, one of the most beautiful palaces in the world, has ben converted into a night club where the elite dance among the art treasures collected by the sul tans. THE DAILY WORKER FRANCE RENEWS PLOTS. AGAINST SOVIET RUSSIA United With Britain in Hostile Intrigue MOSCOW (By Matl).—It {s a known fact that British diplomatic circles have for some time been bringing Pressure to bear on the Qual d’Orsai for more active participation in the anti-Soviet crusade. This is confirmed by a renewal ofFrench machinatfons, Like Great Britain, France has been intriguing against the U. 8S. 8; R., both in the west and in the east. The recent FrancORumanian treaty makes normal relations between France and the U: 8: 8. Ry impossible. The treaty recognizes the annexation of Bessa- rabia: Russia can never agree to this act of robbery: Whether this policy will be continued following the Strese- mann-Briand conversation remains to be seen: Plistidsk! Prepares. By her military guarantee of the inviolability of Roumania France not only strengthens the power of the white terrorist boyars oppressing Ru- mania, but strengthens Rumania's al- liance with the Polish adventurer Pil- sudski, who is feverishly preparing an attack on Russia. France, at pres- ent, in ¢lfus supplementing the British policy of encircling Russia: In the east the French ambassador in China, de Martel, has been nego- tiating with the White Guard Rus- siang of the “Russo-Asiatic Bank” for the exploitation of the Chinese Hast- ern Railway: This is to be “eompen- sation” for the Russian debts. According to the Harbin Observer, while in Mukden, deMartel stated that Freneh capital eould give 43,000,000 Mexican dollars in an internal Muk- den loan. He discussed the question of financing the Chinese Eastern Rail- way in view of the imminent taking over of the railway by Chang. An- other version {is that the financial op- erations will be entrusted to the Russo-Asiatic Bank, “as it has expe- rience in this field.” Allusion 1s evi- dently made to the period when the railway was in the hands of the Rus- sian White ‘Guard emigrants. All But Political Prisoners Go Free POLAND, Oct: i8:—The Polish press reports that an amnesty is pre- pared for Generals Malezewski, Za- gurski, Roswadowski and others, among,them also common criminals: And the, jroletarian Political pris- oners? e , a ee Comrade Murdered. LODZ, POLAND, Oct: 18—In the hard labor prison in Lodz the pollti- cal prisoner, A; Ousser,; was found in his cell 'with.a wound on his head and with blood pouring out ef his month. The wound had been caused by some heavy instrument: The prison administration “found out” that Ousser committed suicide. NEW YORK, Oct. 18.—A powerful combination of American and Earo- pean investment bankers has con- cluded negotiations for the formation of the American-British Continental Company, an international banking trust for the underwriting of foreign bond issues, it was learned on good authority today: Blyth, Witter & Company, one of the best known American investment banking houses, will head the Ameri- Bage Thres MONEY TRUSTS OF MANY LANDS UNITE IN'HUGE BILLION DOLLAR COMBINE TO CONTROL INVESTMENT can end of the combination, while the | Henry Schroeder Company, an out- | standing bond and banking house of | the English financial center, will act in simflar capacity on the other side of the Atlantic. The new alliance, to | be known as the A. B. C. Trust, will | embrace the leading banks of France, | Germany, Austria, Holland, Sweden, | Switzerland and Belgium, the com- | bined resources of which exceed a| billion dollars, ABYSSINIA OBJECTS TO BRITISH-ITALIAN PLAN TO DIVIDE IT AS LOOT GENEVA, Oct. 13.—Ras Taffarl, representative of Abyssinia on the league of nations has filed a note with the league declaring that the British-Itallan treaty wherein the two powers divide up Abyssinia in zones of Influence between them- selves without the consent or knowl edge of Abyssinia Itself, are vold and constitute a threat against the territorial Integrity and political In dependence of that country: “The Imperial Abyssinian gow ernment,” says Ras Taffarl, “very naturally is troubled on learning that two great powers have come to an understanding on thelr course of actlon toward a friendly country, which with them Is a member of the league of nations, without Inform- Ing that country first; “We Interpret this as an Indica- tlon of their Intention to combine and exert pressure In order to ob tain economic advantages If the Im: perial government should consider that the Interests of Abyssinia dic- tated that those advantages should be withheld.” Cloudbursts Strike Sonora, Dangerous Conditions Prevail NOGALES; Aris, Oct: 13—Cloud- bursts and floods in Senora, Mexico, have resulted in a dangerous shortage of provisions and the complete paraly- sis of all classes of public service, ac- cording to reperts recetved here to- day: One cleudburst, it was reported, cleaved into twe an entire mountain, ruining farming lands by eovering them with millions of tons ef rocks: Belief in heavy casualties, based upon the reports of sailors that they saw hundreds ef bodies floating in the Gulf ef California; was explained by the fact that the flood washed out @ cemetery at devastated Carbo: Fever has broken out at Hermostl lo, where the water supply has been cut eff} and itving conditions are in- tolerable om account of the high prices charged for food. Coffee is sold at 60 cent @ cup, according to re- ports, and ether prices range accord- ingly: United States Navy Invades Nicaragua | Under “Neutrality” MANAGUA, Nicaragua, Oct. 18.— | Under a formal declaration of “nen- trality;* the United States govern- | ment landed a force of sailors from | the U: 8. S: Denver and took Dos- | session of Corinto at 8 a. m: Sunday, | Oct; 10. | This “neutral” attitude led to an immediate searching of houses and confiscation of arms from the liberal revolutionary forces who are trying te overthrow the tyrant Chamorro, a notorious tool of United States im- perialism: The |U. 8: proclamation says that the armed forces of the United States will control the territory until a new president has been inaugurated: Lawrence Dennis, American charge @affaires, ts using the pressure of the U: 8; armed forces against the Uberals, to press for the appointment of Adolfo Diaz, a follower of Chamor- to, as president to succeed the dic- tator, since Chamorro has been too much discredited to remain in office: German Police Seize - IRA Booklets, Court Rules Act Is Illegal WEIMAR, Germany, Oct: 18.—In April of this year the bodklets “The Land of the Gallows” and “Terror in Pictures,” issued by the executive committee of the International Red Aid, were confiscated by the Jena po- lice: The confiscation was endorsed later on by the Jena court: On the basis of the complaint of the Inter- national Red Aid agatnst the prohibi- tion; the Gistrict court in Weimar now arrived at the decision that the confiscation was not correct, because the appeal to the proletariat ef Bul- garia, which was the sccasion of the prohibition, obviously did net have as its purpose “to alter; by means of violence, the constitution ef the Ger man. Reieh.” 19 Die in Dutch Waters, LONDON, Oct: 18—Nineteen per- sens are reported dead and many ships were wrecked in Dutch waters as a result of the gale of hurricane force which swept over all Holland during the week-end, according to a Central News dispatch, by friends of striking oigarmakers, who stopped working last July, New Intervention In China. horrible massaere of the Oh nese in Wahnaien by British gun boats is followed by the news of Hng land's intention to mobilise additional forces for active and determined inter vention in the Chinese civil war, to- gether with the proposal for more con- certed alliance in China between Eng- land and Japan is an indication of the ‘These provocative measures, gether with the inspired attacks by Tohang Teo Lin on the Russo-Ohinese China and the abandonment by Brit- ain of the plan to improve and|a strengthen the Singapore naval base, Chinese progressive forces have al- ready protested bitterly against this new development. Wahnsien papers are urging the formation of a national anti-English alliance, the boycott of all British goods in China and the dts- solution of all GERMAN COAL TRADE BOOMS FROM STRIKE Big Profits from Scab Shipments BERLIN, Oct. 13.—The German coal industry {s in. the middle of a boom, For the first time since the war a reat shortage prevails, so that the upper Rhine reserves. of the coal trust, hitherto held at Strasbourg and Kehl, have been ship: terdam to satisfy the 4 south to Rot export demand The freight rates on coal are also going up. Experts on the coal trade assert that even a complete cessation of the British coal miners’ strike now would not deprive Germ of all the advan- tages gained du the past haltf- year during which German coal has been sent in enormous quantities to break the British strike. The banks of Germany are sti showing # reluctance to grant new loans and the financial stringency still exists. But the extra charge on overdrafts leads the banks to be very lenient on this form of credit, British Dominiorts to Insist on Autonomy at Empire Conference LONDON, Oct. 13.—In spite of pre- vious ptedictions that Premier 8, M. Bruce of Australia would take a stand opposed to the program of more auto nomy demanded by the dominons at the imperial conference, the dominion- ites ‘are expected to put Bruee for- ward as their spokesman upon that program. Bruce is known as the most loyal of all dominion premiers to the em pire, hence anything he says cannot be discounted as coming from extrem- ist sources or enemies of the empire. Bruce has his ideas well fixed ag to what must be done and he !s before all convinced that if something defn ite is not done, this will be the last of the imperial conferences. The cen- ference three years ago passed reso tations but accomplished nothing, Australia demands that in Paciiie problems, especially touching defense matters, she herself, and not Great Britain, must set the policy. Canada and South Africa are supporting Australia in this as both have inter ests demanding dominion autonomy. But if all get what they wish, the British empire will be disintegrated. * Conservative Party of Canada Selects ° Guthrie as Leader OTTAWA, Ont, Oct. 13—tugh Guthrie has been selected as leader of the conservative party in the house of commons, following the resignation of Arthur Maighen. This is only tem- porary, however, as a party leader will be selected later this year by @ caucus, --Weekly International Review-- Poincare (not to of the world war itself). At the time of the Ruhr occupation French imperialism hoped to establish on the basis of the economic unity of German coal and technique and French iron ore, the hegemony of France on the continent. Only the interference of America and Great Britain, to both of whom such a development was a menace, prevented the consumation of this French imperialist dreanr, But what cannot be accomplished by g le when each is under the impres- sion that # is the other who ia the victim, PRMANY, “which has gained a respite with the gold injections from American bankers, is now developing a monster appetite, remin- scent of 1910 and 1912, With an itely intensified exploitation of la- bor, “rationalization” of industry, super-trustification of industry, and possibilities of a favorable trade bal- ance in the near future, she is irked by her national confinements and ee France, with the Ruhr still uncon- trolable, with England still a: power- ful enemy, with Mussolini rattling the saber, and the ever more imminent Dawesation of the country by Ameri- oan bankers, Ginds across the Rhine ite most Mkely ally—for the moment. i been Berlin organ of Stresemann, ‘Taegliche Rundschau, gives as the six points of agreement between the two foreign ministers et Thoiry, (1) the progressive reduction of troops of ocoupation on the left bank of the Rhine; (2) evacuation, in the course of 1927, af the second and third banks of the Rhine; (3) return to Germany of the Sear valley in all of tts political and economic entirety, without pre- liminary plebiscite, within the next year; (4) suppression of the military fontrol commission, the control to be exercised henceforth by the league of nations; (5) negotiation of part of the preferred shares of the German Railways company as compensation to France; (6) the acquiescence of France in Germany's attempt to secure the return of the industrial territory of Eupen and Malmedy, given to Bel- gium by the Versailles treaty, Thoiry conversations accom pany the announcement of the final organization of the European steel trust. The three Belgian steel com- panies’ (Sambre de Moselle, the Provi- dence, and the Societe Metalurgique de Hainant) that were stubborn for a time, demanding an increase in the quota assigned to them—their stub- bornness was credited to BEngland, with whom these firms have close rela- tions, and against whom the trust is directed—have finally entered the combination. It is expected that an iron trust, a coal trust and a chemica) trust, on a similar scale, will soon be consummated. i developments will have a protdlind affect. What is directed today against Great Britain will to morrow be directed against the United States. "The United States has invest get Woy of gem Belg Rental res) ed more than a half Dillion dollars injand its bed of roses may have its German corporations and in govern- mental, provincial and municipal is- sues since January 1, 1924. In the first half year of 1926 alone (according to the U, S. Department of Commerce) the U. 8. invested $107,420,000 in Ger- man corporations alone, which emounts to more than 46% of the total American capital furnished tor eign countries in that period. This does not include the $52,300,000 in- vested in governmental and municipal issues by the U. S, in the same period. ie reymgaraie is fertile soil for profit- able investments; but the hard- headed Teuton imperialist will not tolerate for very long a condition in which he must share his profits with Wall Street. The rapprochement to- wards France ig a move away from America. The suspicions of the Lon- don Daily Chronicle are no mere phantasies when it asks if the Thoiry pourparlers do not signify for Eng- land and other, countries an economic war without mercy, The reply of the United States at east has already indicated its alarm at this turn Of events. Wall Street oriticizes the’ 'Thoiry accord on the sale of Germafi railways bonds for the support of the! franc on the grounds that “it will very dificult to find a market for t! bonds in America.” First, because the loan granted to Ger- many carries interest at 7%, while the railroad bonds bring interest at but 5%; second, because it is doubtful if the American government (i, e., Cool- idge-Morgan-Mellon) will permit the sale of the German bonds in the United States 80 long as France will not fund ite war debt. Wall Street would far prefer the launching of the international loan which was dis- cussed some time ago tween Messrs, Mellon, Strong, Morgan, Mon- tagu Norman,, Schacht and other financiers of Hurope, The road of the Franoo-German al- lames may bec bard @nd ambushed, |Germany ts giving olépr nat Ue thorns, but it is destined to play an important role in the history of the coming few years. It is such an alll- ance which changes the map of oon- tinents and brings war and revolution {n ite train. =; os The European Steel Trust and England. O sooner was the Huropean steel trust accord signed by Germany, France, the Sear valley, Luxemburg and Belgium than the German indus- trialist, Rechberg, publicly accused the British steel magnates of having Intrigued to prevent the adhesion of the Belgian steel masters to the pro- posed combination. The British, he said, promised the Belgian firms a| farge subsidy if they would consent to introduce such demands to other participants in the carte] that they would find it impossible to admit the Belgians. The British seem to have added to @ lately-acquired record of failures their unsuccessful efforts to head off the organization of the powerful steel combine, eee Pilsudski Eyes Lithuanian Spoils, ‘T is announced that the Lithuanian government has instructed all of its diplomatic representatives to for- eign countries to draw the attention of all the governments to the concen- tration of Poliwh troops on the Lithu- anian border, In a memorandum to be submitted to all foriegn depart- ments Lithuania accuses Poland of putting the peace of Europe in danger by its lust for Lithuanian territory. Lithuania, poverty-stricken as it is, possesses the advantage of the Baltic seaport Memel, once awarded #t by the league of nations. Pilsudski, in partic: | ular, has always benkered after Meme! and Vilna. Pol has been successful only with Now that aints as te its desire for the abolition of the Pol ish corridor, which separates East and West Prussia, and the dissolution of | the fiction known as the free city of Danzig, Poland’s main outst to the sea, Pilsudski is again marching to and fro on the Polish-Lithuanian foontier hnnting for a seaport like a @ying sailor. T 1s not surprising, therefore, that | Lithuania has just signed a treaty with the Soviet Union whose only aii is to ensure peace between the tw: nations. This act has, in turn, en- raged Pilsudski, who is a tool of Brit {sh imperialism, which is the leader, | inspirer and organizer of the anti- | Soviet bloc, in which Polnad plays so| decisive a part because of its con- tiguity to Russia and the political| situation in Poland, | A repetition of the 1923 struggle in the Baltic is not at all unlikely in the very near future, A New French Attempt on Greece, HE announcement that M. Kafan- daris, leader of the liberal-progres- sives, and M. Michalakopoulos, leader of the liberal-conservatives, will col- laborate in the coming elections in Greece—after which the dictator Kon- dylis announces he will retire from political activities—is an indication of the tenacity with which France is fighting to maintain a foothold in Greece, and, for that matter, in the Balkans in general, The collaboration of Kafandaris and Michalakopoulos is an obvious at- tempt to rebuild the party of the old politician, Venizelos. Kafandaris and Plastiras threatened to march on Athens soon after the overthrow of Pangalos, when the inclinations of the victorious Kondylis turned trom France to England. The proposed electoral alliance of the old French Venizelist marionettes !* another form of the struggle between Freneh and British interests for the domination of Greece, The Narrowly-Averted Greco- Turkish War. CCORDING to a reprint jn the Westminster Gazette of an inter view with the dethroned Greek dle tator, Pangalos, m prison, published in the Athens Eleftheron Vema, the general had been preparing, at the |moment of his fall, to initiate a war against Turkey with the ald of another Dower. An offensive treaty had al- ready been signed on August 28 with this undesignated power. The West- minster Gazette adds that this power Was to have sent an army to aid Greece In Western Thrace which was taken by Turkey from Greece when latter had 1 Thracian frontier hoved westward to the Maritsa River after the defeat in 1922. The my rious power !s, of conrse, the Italy of Mussolini. It fs well known that Pangalos was, especially in the latter part of his dictatorship, very little more than a Greek iInstre- ment of Mussolini's Balkan and Medi- terranean policies. A Greek attack on Turkey would serve Mussolini's pur- pose quite well especially if he might participate in the spoils and inefdent- ally weaken nch impertalism, a no mean consideration URTHERMORBE, the Dodecanese Islands, inhabited by Greeks, off Turkish shores which Italy had calmly annexed unto itself after the Tripoli- tan War, have been a constant. sore spot in Greeco-Italian co-operation. To mollify Greece, and get in a few licks himself, Mussolini planned the attack on Turkey, inciting the Greeks with the bitter memory of the Lau- sanne treaty. Decisive steps were al- ready being taken, for the Greek en- voy to Jugoslavia was arranging for the broadening of the road from Guer- geli, in Serbia, to Salonika, the stra- tegic route thru Jugoslavia for the concentration of forces againat the northwestern corner of the Turkish nation, Mussolini, however, overreached himself. His support of de Rivera's Tangiers proposal earned him the joint, temporary opposition of both England and France. Pangalos was overthrown. Benito is dejected, MAX SHACHTMAN,