The Archive · 1940

Coal Crisis

The Chinese press expressed indignation over the sudden increase of the price of coal balls yesterday from $7.40 to $8.50 per picul which also created a big stir in Chinese households. It is said that local Chinese are hoping that the authorities will do something to prevent coal merchants from increasing their prices without good reasons.

It is alleged that some big coal merchants. are manipulating the market, thus rendering it impossible for small coal ball shops to obtain enough goods for sale, It is asserted that there is no shortage of the coal needed for making coal balls, which are used by every Chinese family for cooking.

The Shanghai Machine-made Coal Ball Merchants Association has not obtained information on the increase of price, but a check with Chinese housewives revealed that the price was actually increased by more than $1. It is learned that the association will hold a meeting today to discuss the question and the results of the deliberations are being watched with anxiety.

Washington, May 3.

M. Constantin Fotitch, Yugoslav Minister to the United States, conferred yesterday afternoon with Mr. State. andi urnner Welles, Under-Secre!

It is understood that views were exchanged on the conversations held in Rome during the past two days between Mr. William Phillips, U.S. Ambassador to Italy, Signor Mussolini and Count Galeazzo Ciano, the Italian Foreign Minister, when the former was given assurances that Italy did not have any aggressive intentions against Yugoslavia.

Mr. Welles, it is believe, informed the Yugoslav Minister of the assurances the United States had received from Italy.

Should there be no improvement in the Mediterranean, the United States would close that area to American shipping, Mr. William Phillips, U.S. Ambassador to Italy, told Signor Mussolini when he conferred with him on Wednesday, according to diplomatic quarters here, Such a measure would strike a new blow to Italy's economic positions already affected by the British decision not to allow Britain's merchant ships to use the Mediterranean. Il Duce, it was added, then assured Mr. Phillips that Ttaly had no aggressive intentions against Yugoslavia.—Havas, Spain to Stay Neutral Madrid, May 3.

The uncertain state of relations between the Alles and Italy, emphasized by the closing of the Mediterranean to British shipping, is taken with remarkable calm here. Opinion is becoming more emphatic shat unless Spanish sovereignty in the Balearic islands or elsewhere is violated, Spain will remain neutral—Reuter, "N.Y. Times" Comments London, May 3.

"The re-routing of British shipping should remind Mussolini more effectively than a dozen diplomatic warn. ings of the dangers of going to war against the Allies," declares the "New York Times" in an editorial reproduced in a special commentary issued here today. A secondary editorial approves Mr. Gandhis virtual renunciation of civil disobedience.—Reuter.

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