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.
DOROTHY
LOWELL
DEMOCRATIC
CANDIDATE FOR
STATE
Representative
"Equal Representation for alt"
Spaniarci by Pinl Hack,
Chairman Klamath CeintT
Democratic, Central Cammltta
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rpm rrT-&sTi tmtzrri
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133 So. 8th Phono 5188
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