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50 years ago

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SCMP Reporter

Depression boon to Reds

London (Sept 17): 'Continuing industrial depression' in South-east Asian countries is discussed in to-day's Manchester Guardian leader.

'What will be the effect on world politics?' asked the paper. 'In the last month there has been a wave of optimism in the West about the containment of Communism in South-east Asia . . . But all these gains (in Malaya, Indo-China, Philippines and Burma) would soon be lost if there were to be a long period of economic decline.

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'A further fall of rubber prices in Malaya would provide many recruits for the guerillas. In Japan the economic depression might have effect on the general election in forcing the Japanese Government to break its alliance with America.

'Moscow checked in Europe may still feel that it has good prospects in Asia,' the editorial adds.

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Transforming

London (Sept 13): The New China News Agency, in an economic survey of China after three years' Communist rule, said to-night that the remoulding of China's economy had been completed and the foundations laid for transformation from an agricultural to an advanced industrial nation.

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