INFLATION CAUSES CONCERN

Chronicle (Levin), 12 May 1947, Page 5

INFLATION CAUSES CONCERN

Eeceived Sundav, 7 p.m. SHANGHAI. May 10. An investiga'tion of the private propertv holding of leading Chinese ollicials include Chiang Kai-shek ancl the Soong family, is among the cieniand.s of.the Federation of Industruii and rtilitv Workers whose 800, OOu workers in Shanghai threaten to stnke on Monday. The Federation manifesto declares: "We are not Communists but workers demanding fair treatment. We are willing to play our part in the reconstruction but refuse to be made to suli'er from the greed of a -liandful or political leaders. " The Federation is also seeking pay iiicreases and a reduction in the Nationalist Army to 1,000,000 within nrne months. Tlie Xew York Tinies' correspondent says there is widespread feeling in Shanghai that, pressed by the steadily worsening economic conditions, the slow progress of the anti-Comniunist militarv campaign and the social anu political disintegration almost evervAvhere in the Government controlled areas, the Government mav be eompelled to renew its efforts to negotiaie peace with the Communists. Tlie correspondent says the galloping pate oi economic disruption is no where inore evideut than in Shanghai where the cost of rice has risen 500 per ceni. since January. Daily attacks on tne rice sliops reflect the food stringencv and the ugly temper of tlie people, ile adds that speculation, black marketing and racketeering are flourishing whiie cormption is rampant. An American banker in iShangliai said he bclieved nothing short of dumping 2,000,000,000 to 8,000,000,000 dollurs' worth of oommodities into China could slow down tlie inflationary trend.