SHANGHAI IN DISORDER

Rotorua Morning Post, Issue 5308, 22 January 1947, Page 2

SHANGHAI IN DISORDER

"RUMBLING VOLCANO" ECONOMIC AjNID ROLITICAL CRISIS. It has been obvious for some months past that Shanghai has been heading for an economic (and possibly, also, political) crisis of the first jna^njitnde. Diuring the last wek or iwo the process has' been • accelerated, partly by the runaway inflation of Chinese currencyi — the dollar, which a few months ago was fixed; at 3250 to the "U.S. dollar, is now heing quotedi at over 6000 — and partly by the ever growing demands of local labour, writes Mr. H. G. W. Woodhead in the Christchurch Press. It has betn the policy of the Knomintang, the governing: party ever since Shanghai passed under Ohinese cohtrol, to encourage local labotir in demanding increases of wages far in excess of those warranted by the actnial cost of living:. Dabour has, in consequenee, taken the hit between its teeth, and multiplied its demands, especially from foreign employers. It appears to act upon the assumption that, to foreign employers, whether their business or industry pays or not is a matter of indifference; they can always get more money from abroad! The latest demands are fantastic. In many instances, hesides insisting upon large wage increases and all kinds of allowances for family affairs (weddings, deaths, sickness, etc.), employees have demanded honuses amoiimting to six months' pay at the New Year. Most foreign factories, Which have heen operating on a very narrow margin, if not at a loss, are quite unable to meet this exaction. Endustries Close Down. The Chinese authorities at first, ano quite wisely, ruled that New Yeai bonuses were mattei*s for individual employers, which could not be demanded ag a matter of right, nor expeeted where enterprises were losinp money. But under labour pressur£ they made a new ruling: that the standard New Year bonus should be ar additional month's pay. This did no? satisfy labour, which still insists upor bigger and better honuses, and ahsolutely rpfuses to recognise the difference .between businesses which art losing and those which are making money. Already a number of industria plants in Shanghai have closed down including' eight Chinese cotton mills Hundreds more are likely to suspenc operations betwen now and the Chin ese New Year, putting many thou sands of workers out of employment The Chinese authorities appear thave completely lost control of eco nomic and currency conditions i» Shanghai, and in spite of a rigid re striction of imports, experts art steadily declining, as foreign buyer; will not pay the excessive prices de manded for Chinese products a ni commodities. A Lawles Army. How it will all end it is impossiblc to predict. That there is a large law less element in the former foreigi areas was revealed a couple of weeksago when an attempt to clear hawker. off the stx*eets led to serious rioting which was not confined to the ag grieved hawkers. Police inefliciencj was probably responsible to sonn extent for the gravity of these dis orders; but police inefficieney mus. also be reckoned with when the rea' storm breaks. Underpaid, inadequate ly trained, and notoriously eorrupt the present Chinese police force musi be regarded as completely unreliable To bring- in the Chinese militarj would only make matters worse. I) former days .Shanghai owed much oits peace and prosperity to its imiMnity from incursions by Chinese mili , tary forces. To-day they are a lav unto them'selves. 'No oue knows whei they will descend upon and occupj private property, without rders fron above, or any sem'blance of discipline. Only recently memhers of £ so-called Youth Corps invaded anr occupied part of the premises of i well known Catholic College, completely disrupting its educational work. and flatly refusing to heed any protests. Chinese military force their wa?, into cinemas and other places of en tertainment, often ocupying seats which have heen paid for by the pub lic, and wrecking- any premises whicl offer any oppositiont They use everj form of pubfic transport without pay ing fares, and beat up the conductonwhen payment is demanded. Shanghai to-day must be regarded! as a rumbling: . volcano. When it erupts in full force anything may happen. And foreigners and Chmese alike may have canse to rue the dissolution of the former municipal councils, with their . efficient police forces", and the presence of small, foreign garrisons, "which en-; - sured that no armed Chihese wqd'ld enter the areas.