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03 AUGUST 1971

News headlines and details from the Daily Morning News.

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We are giving the help they need and will continue to give it." He said and added we are not shy of giving all kinds of material help to the freedom fighters. We don't want to hide it from anybody.

The Dacca city peace committee was formed on Sunday in an emergent meeting of the conveners of the Union Peace Committee falling under the limits of Dacca Municipllity. The Meeting held under the presidentship of Syed Khawaja Khairuddin convener of the Central Peace Committee elected Alhaj Senajuddin Ahmed chairman of the Dacca city peace Commitee and Mr. Mahbubur Rahman Gorha vice-chairman, reports PPI.

Mr. Mohammed Mansoor Ali was elected General secretary of the committee; the convener Syed Khwaja Khaiduddin explained the duty of the convener and members of peace committees when the country is passing through a crucial stage. Every member of the peace committee has to contribute his best for the integrity, solidarity of Pakistan.

The meeting prayed to Almighty Allah for the integrity and solidarity of Pakistan.

The Next meeting of the Dacca Peace Committee has been scheduled to be held on August 3 at 4 p.m. at 15 Ahsanullah Road.

Army's role in maintaining Pak integrity lauded

Pirojpur, Aug. 2 (PPI): A Public meeting held here Friday last lauded the role played by the Pakistan Army in maintaining integrity of Pakistan.

The meeting was organised by sub-divisional branch of Jamaat-e-Islami, Islami Chhatra Sangha and Jamate Talabay Arabia pleaded to defend the country even at the cost of their lives.

The Meeting in a resolution appealed to the authority to train the Islam loving people to face the Indian Infiltrators and anti-state elements.

The Meeting welcomed the decision of the Government to reform Madrasha education.

No aid with strings,  Yahya not to give into foreign pressure

Karachi, Aug. 2, President Yahya has said that he would throw any aid back to the donor's face if there are strings attached.

The president said this in an interview published in Kayhan International of Teheran in its issue of July 27.

The interview was granted by the president to a group of three Iranian journalists who recently visited Pakistan, including Amir Taheri, representative of Kayhan last week.

The paper also published a photograph of the president with quotes from him "form the start my sole objective was to restore law and order in the country and to hand over power to an elected civilian Government."

During the course of the interview, the president reiterated that he was a soldier and would not give in to any pressure "According to the paper, the president, went on: they say I am under pressure from this or that big power. That is nonsense. these, who say they don't know me. A man can be subjected to pressure only if he is interested in this chair.

I am not, and I have made it clear that I shall throw any aid back to the donor's face if there are strings attached.

The president also spoke about the attitude of the foreign powers towards Pakistan in the recent crisis. According to the paper, the president observed Soviet and American Govts, had adopted a correct policy towards Pakistan right from the start of the crisis, but he could not say the same about Britain.

The British Govt, he said has been vehemently hostile to us and trying to meddle in our internal affairs.

The paper added, president Yahya insisted that a civilian government must take over. He told us, he hoped there would be such a Govt. before the 25th anniversary of the Iranian monarchy in October and in any case before the end of the current year.

According to the paper, the president told the Iranian journalists that the by-elections would not take place on one day since he did not wish to have force of law and order stretched to him.

In answer to  a question, the president said that he must have a full National Assembly representing the Nation as a whole, and he will be prepared to accept a civilian govt, formed by such an Assembly.

He said he should not hand over power to any one individual or party before that done.

The paper further added, some 80,000 refugees had already returned home and about 1000 were coming in every day through unofficial channels. India, however, was doing its best to prevent the refugees from returning home.

The president said, it was doing so because Mrs. Gandhi wishes to use the issue as a political weapon against Pakistan.

India, The president said, has set up training camps for rebels in its territory some 35,000 rebels are being trained and the displaced persons are being used as a means of pressure on Pakistan.

Replying to a question, the president said he had no official information that a new Tashkent had been proposed by the Soviet Union.

The paper quoting the president said that India was openly saying that it would not allow the refugees to return to Yahya Khan's Pakistan but only to Mujib's Bangladesh. This he said is clear intervention in our internal affairs and obviously we reject it."

APP adds: As a member of the Commonwealth, we had excepted Britain to remain at least neutral and not to back India so openly, the president said.

Indian Accused

The president also accused India of converting the issue of refugees and humanitarian issue, into a political weapon against Pakistan.

Asked about the efforts to bring India and Pakistan on a conference table, the president replied. I am ready to meet the Indian leaders anywhere and at anytime provided we discuss the return of the displaced persons treating the issue as humanitarian one and not political.

But they have refused all our offers of negotiations and sabotaged the work of the United Nations. In this respect they hope to break Pakistan and think they have no interest in talking to us."

The president remained firm in his resolve to set up a civilian goverment in the country and emphasised that he was not interested in staying at the helm of affairs in the country. He was keen to return to the army. He would continue as president of the country only if fully constituted National Assembly representing the entire country requested him so.

Mandate

"My mandate is clear; it is to keep the country United and to give a civilian government."

The president referred to the rumour that he had been advised to set up a civilian puppet government and described it as absolutely wrong. As a soldier he considered rumour mongering a crime."I do not use tactics like that", he added.

Replying to a question about forming a Government with the people's party, the president replied that Mr. Bhutto had majority in one wing of the country. But a civilian government should consist of the representatives of both parts of the country.

In any case since a civilian government would be formed in a matter of months, all the parties could wait a bit longer. I must have full National Assembly representing the Nation as a whole. I will be prepared to accept a civilian government formed by such an assembly but would not hand over power to any one individual or party before that time."

Credit ceilings on lending in East wing withdrawn

The State Bank of Pakistan has withdrawn with immediate effect all selective credit control measures and credit ceilings on lendings by banks in East Pakistan.

This was announced by the Governor of the State Bank, Mr. S.U. Durrani, in Dacca yesterday at the opening of the four day conference of the chief executives of banks and financial institutions in Pakistan.

Mr. Durrani in his inaugural address said it was a first bold measure to free the banks from the discipline of credit ceilings and to provide complete freedom to launch their loaning operations in East Pakistan without any obstacles of Monetory measures in their way. This was meant, the Governor said to give the banks incentives to expand credit in East Pakistan to the limits required to regenerate the economy.

The banks in West Pakistan will, however, continue to be subject to the discipline of the current selective credit controls and ceilings.

The State Bank Governor urged the banks to take full advantage of this facility and make an all out effort in their own business interest as well as the interest of the National economy to revive economic activity in East Pakistan. He said, freeing the banks should add significantly to the most crucial and fundamental factor in generating credit resources for direct employment in productive enterprises in all sectors of the economy.

Mr. Durrani said the president in his Message to the conference had made a significant reference to the capacity of the country to withstand a serious onslaught on its ideological and physical integrity. The Assembly today, he said, of the chiefs of banks and financial institutions was a symbol of their determination to respond dynamically to the challenge that the present economic situation in East Pakistan posed in the larger interest of National good.

Time for Major Change

The Government said he would suggest that the time had come when traditional banking must spread to new directions and assume for a more dimensional and dynamic role that the situation called for.— Banks in the past have played a very crucial part in building the economy by mapping up savings and channelling them to productive enterprises, only by discording rigid conventions suited to normal times they would be able to meet the abnormal situation.

Mr. Durrani pledged the full and unfettered support of the Central Bank as well as of the Government in their determined effort to regenerate the economy of East Pakistan.

He said the chief executives during the course of their discussions with the provincial authorities and representatives of trade, industry, agriculture would be able to appraise that combination of numerous factors that were operating as bottlenecks in regenerating the economy. He urged them to accept responsibility as a group to identify the problems and adopt positive measures to revitalize the economy in the right tradition of their post performance. The situation facing the Nation Tuesday, he said was more compulsive and more demanding and the motivation behind their effort was supremely patriotic.

Mr. Durrani said he did not believe in the concept of regional relationship between deposits and credit. All the savings constituted a national poll and must be used wherever they were urgently required in the National interest. Any other method was repugnant to the national concept.

Reopen Branches

The Governor urged the Bankers to re-open the branches of their banks that had been closed down and accomplished the task as far as possible during the course of their stay in East Pakistan.

In the discussion that ensued, the remark by a chief executive of a major bank symbolised the enthusiasm generated for a new drive in banking when he said the Governor's impassioned appeal opened a new chapter in bankings, raised new hopes and obliterated all doubts about the scope of banks operation to meet the economic crisis in East Pakistan.

Another chief executive assured the Governor that the banks would go all the way to support the National effort to rejuvenate the economy. 

Jute

On a point raised about the purchase and movement of jute Mr. Durrani said the banks should be able to finance its purchase and lifting within 60 days. Apart from strengthening the institutional framework special financing arrangements must be made to life the crop. Jute which can rightly be described as the life blood of of all—. economic activity in East Pakistan not only makes a significant contribution to country's foreign exchange earnings but is responsible also for a substantial part of incomes and employment of a majority of people in East Pakistan. In view of its importance, steps are being taken for ensuring a steady growth in its production and exports and maintaining its prices at a level which generates sufficient return to the growers.

In the afternoon the chief excutives had discussion with chairman of jute Board and the managing director of the jute marketing corporation.

Kelly arrives in Dacca

Karachi, Aug 2 (APP): John D.R. Kelly United Nations High Commissioner for refugees in Pakistan for the UN focal point for assistance to Pakistani refugees arrived in Dacca from Islamabad yesterday.

According to UN Information Centres press release today Mr. Kelly's functions in Dacca will be concerned with displaced persons voluntary returning to East Pakistan to establish contact with the local authorities to make regular visits to reception centres set up by the Government of Pakistan and to channel United Nations assistance provided through the Under focal point to returnees.

Campaign to recognise 'Bangla Desh'

New Delhi, Aug. 2 (Reuter): Scores of members of the Jana Sangh, a right wing Hindu nationalist opposition party were arrested yesterday when 500 of them demonstrated in favour of recognition of Bangla Desh in an area in which demonstation are banned. For the next 11 days Jana Sangh workers will court arrest in their campaign to pressure the Goverment to recognise 'Bangla Desh'.

The party leaders Mr. Atal Behari Vajpayee, intends to seek arrest on the final day of the campaign.

Varsities resume classes

Classes in all East Pakistani Universities and colleges which remained suspended since March 1 resumed yesterday, reports APP.

The attached hostels of these educational institutions also reopened.

According to the principal of Dacca College a large number of students also appeared for the collection of their admit cards for the ensuring Higher Secondary School Certificate examinations.

The Vice-chancellor of the Dacca University reported to have held a meeting with the provosts and heads of the departments of the University after the classes resumed yesterday.

Sylhet colleges also reopened yesterday, Sylhet women College, Sylhet Madan Mohan College and Sylhet Government College held classes.

Preparation are now complete in Sylhet SSC centres for holding secondary school certificate examination of Comilla Board from August 5. The Deputy Commissioner, Sylhet visited seven examination centres. Candidates are taking their admit cards in large number. All arrangements for peaceful holding of examination now completed, considerable number of students including female students attended classes in colleges.

Azhar khan says: India shelling continues

Karachi Aug. 2 (APP): Lt. Gen. K.M. Azhar Khan, governor of NWFP said here today India was continuing the shelling of the border areas of the East Pakistan.

He was talking to newsmen at the Karachi Airport on arrival from five-day tour of East Pakistan.

He, however, said India had stopped the shelling of the city of Comilla, India's shelling of other areas was 'occasional' he added.

Asked as to what the purpose of his visit to East Pakistan was, the NWFP Governor said he had inspected some army Units stationed there.

He said condition in East Pakistan was normal replying to a question, he said rumours that he would be appointed Governor of East Pakistan were baseless.

On arrival, Lt, Gen, Azhar was welcomed by Lt-Gen Rakhman Gul, Governor of Sind, Indspector General, Karachi police and other senior civil and military officials.

India assisting rebel forces

Islamabad, Aug, 2 (APP) First time, a senior official of the Indian Foreign Ministry has openly admitted that India has been providing assistance to the Mukti Fouj.

According to a report in the New Nation, Singapore of July 22, the official who was commenting were planning to ask the United Nations to send observers to both the sides of India-Pakistan border, also spelled out in clear terms the Nature of assistance India had been providing to the Bengali rebel forces."

Dacca city peace committee formed

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