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About Herald and news. (Klamath Falls, Or.) 1942-current | View Entire Issue (Oct. 21, 1954)
L THURSDAY, OCTOBER 21. 1954 Trade With Red Chinese Reported LONDON MPRjieci. .nil V.. r... . .. . HERALD AND NEWS. KLAMATH FALLS. OREGON PAGB SEVEN LONDON UTr-Russia ind her Fu. ropean satellites have opened a big hole In Western barriers against war potential exports to Communist China. They are buy. tag strategic goods from the West and selling them to the Chinese, making a neat profit in the bar gain. American and British officials here and elsewhere know what is happening but say they can see no way of stopping it. This is the Western gimmick the Kremlin has turned to Eastern advantage: Bank Employe Faces Charge PHILADELPHIA IB A man de scribed by the Cirard Trust and Corp Exchange Bank as "a trusted employe for 26 years'" has been charged with approving fake loans totaling a quarter-million dollars and spending $45,000 of it on "wine women and song." , . Officials of the bank yesterday preferred fraudulent conversion charges against Edward B. Mc Call, about 45. They said the money was taken through a series of faked loans approved by McCall over a period of 18 months. The bank said the loss was cov ered by insurance. At his arraignment before Judge Curtis 3ok, McCall was held in $10,000 bail lor action by the grand Jury. It was testified at the arraign ment yesterday that a routine aud it of McCall's accounts in the bank's loan department brought the shortages to light last May. McCall was dismissed at that time and a further check was made to determine the full extent of the alleged defalcation. ' The bank said 160 loans were Involved, most of which McCall was permitted to make simply on his recommendation or signature. Officials charged that the basis of the scheme was a series of loans obtained by friends of McCall, who then turned the money back to bim. Succeeding loans were used In part to cover due payments on previous ones, they said. The United States and her allies fofbid the export of certain strate gic goods to both Eastern Europe and Red China. But the list of goods embargoed for Red China is far longer than the one for Eastern Europe. Red Europe thus can buy West ern goods that the Chinese cannot things like generators, machine tools and petroleum equipment. Western officials say European C o m m u nist nations are buy. ing these 'items for transshipment at top prices to the Chinese Reds. One of the big Communist trans shipment points is Gdynia. Poland. From there Western goods go by rail to Peiping via the Train. Siberian Railway, or are carried into Chinese ports by Red ships able to evade the Chinese Nation alist naval blockade. . Several shipments of strategic items from the West were recently held up at Gdynia by a transport bottleneck, according to inform tior. reaching Western diplomats. The strategic ban on Red China, imposed by the United Nations dur ing the Korean War, has always been tougher than the cold war embargo on Soviet Europe. And with tensions easing in Europe, the West relaxed embargoes for the Soviet bloc last August, cutting the number of prohibited items from 250 to about 110. But the Far East situation re mained potentially explosive and similar action on the Red China lists was deferred. Western European businessmen are urging their governments to let the Chinese Reds buy what Eu ropean Reds can buy. The United States opposes any change in the China lists before the signing of a full Korean peace. HEAR SENATOR WAYNE MORSE THE TRUTH ABOUT CORDON'S VOTING RECORD" THURSDAY, OCT, 21 KFJI 8:00 p.m. KFLW 9:15 p.m. M. Daraacr.ric Stole Central CaatmiHat Haward Marion, Chairman Oakuw Suildinf. Partlaia1. Ofaaaa. 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