BORROWING FOR

~ ARMS PROGRAMME

SIR JOHN SIMON OPENS HOUSE OF COMMONS DEBATE

London, To-day.

U.S. NAVAL

WAR GAMES UNDER WAY

The of the Exche

San Juan (Puerto Rico),

To-day. Navy'a mimic warfare started yesterday as defence patzola geeking the "enemy feet" that will try to seizo Puerto Rico,

Renter

Opening a two-day debate in the House of Com-

mons yesterday, the Chancellor quer, Sir John Simon, moved a resolution to operations got underway with air confirm the raising of borrowing powers for defence purposes to £800,000,000.

Dealing with the proposals for borrowing more

generally, Sir John Simon said it had already FOREIGNERS TO been decided that there were sufficient grounds

of justification for resorting to borrowing for LEAVE KULING the rearmament programme.

He thought it was widely and generally recognised TO-MORROW

that the financial strain was greater than could be met fairly or solely out of revenue.

Shanghai, To-day. British and American naval

MR. HUDSON TO VISIT MOSCOW

London, To-day.

Mr. R. S. Hudson, Secretary for Overseas Trade, will undertake Journey to

Moscow, the Baltic States and Scandinavia" in the courge of next month," said Mr. Neville Chamberlain in the House of Commons yesterday.

LARM

The announcement confirms in- dications made by Lord Halifax, the Foreign Secretary, to the for eign affairs committee of the Con-, servative Party that Britain would Seek closer trade relations with Soviet RussiaX- Trans-Ocean.

b..

The rearmament plans were de- which there would be full plant pro-officers, who proceded to the JAP. PLANES

resort of Kaling near tion of foreigners detained there, Kiukiang to arrange the evacua reported, yesterdays that evacua. tion foreigners from Kuling has been arranged for to-morrow.

DOWNED AT LANCHOW

signed to reach completion in a duction. Moh ohho ICING of limited period of years, and heWhatever criticisms there may thought it would be an inequit bo there is qutation that next ance that the whole cost should year is marked down as the year be debited in the few years in of most substantial progress in the which it would be incurred. production of defence materials of Nevertheless they had shown all kizda” of a situar mondiaudattas fi

The report added that 44′′ for- themselves ready to bear year by Sir John reviewed development in while 20 others declared that they "THE FIRST AIR COMBAT

eigners agreed to leave Kuling LANCHOW TO-DAY. year their proper share them-all the Services and recapitulated preferred to remain at Kuling, selves.

details of new naval tomage afreddy Foreigners who have decided to OF HANSU,

OVER LANCHOW, CAPITAL: ro Dealing with how to be in Referring to the Estimated for be in considerable danger when RESULTING IN AT LEAST present bor-made public man drabinos remain in Kuling will naturally YESTERDAY

TOOK PLACE- AFTERNOON, creased, Sir John said:

the Navy, Army and Air Force, the Japanese begin their fore FIVE JAPANESE PLANDS BE- the which will be issued within à few casted operations against ChinING SHOT DOWN AND FOUR total days, Sir John said that for the ese irregulars in the region OTHERS HEAVILY ↑ DAMAG- scale purpose of the Defence Estimates around Kuling, Trans-Ocean. ED. of total rearmament.

he had made the assumption that "Secondly, it must be judged in £230,000,000 approximately will be comparison with the provision we available out of revenue, leaving are making year by year from re-about £350,000,000 to be met from

loans account.

"It seems one must judge validity of this enormous firstly in association with the

venue."

CERTAIN TO BE EXCEEDED Sir John recalled statements in

CIVIL DERENCE

earlier White Papers that $1,500,- In reply to an interpellation, Sir 000,000 might not be the fixed total John emplizaised that the gute for of defence borrowing, and that total defence expenditure covered civil do expenditure would exceed that fence as well, adding that taking figure. Je last year, the present year and the He said the expectation that if coming year, out of a total £1,250, would be exceeded was really no000,000 for defence, about 700,- certain unleas come eaper change 000,000 would be met, from revenue for the better tres place he thash In the period 1932 36 the coun International Wonka yan try saw a restoration, towards

The Chancellor pointed out that

sperity which enabled remission of total defence expenditure for the

large part of the burdens first three years of the five-year posed in 1981. portod amounted to £1,173,000,000, and if civil defence was added the total would be about $1,250,0

.000.000:

NEVER BEFORE We have

have been building up rapidly increased productive capm- city and now we have reached. stage of production never before touched by this country when. peiči

24.

There had been no removal burdens In 1930.

ime

"During the last three years wo have had three successive facrenses in Income Tax, making an addı. tional chilling in the pound.

Thirt Japanese machines_in three squadrons of nine, twelve and nine respectively broke into

2.

ARMY MANOEUVRES the city in succession. They

IN YORKSHIRE

-Loudon, To-da

The British Army which are being held in the tumn, will take place this year Yorkshire.

Mechanised units will represented Reater.

were engaged by Chinese pur suits. Over 80 bombs were dropped inside and outside the city is

About 20 civilians were killed and some fifty houses demolished. in of Kansu Provincial Hospital,

Among them wore the buildinga. the Women's Vocational School, the Mohammedain Primary School, the Committee for the Custody of the Educational Sinks ing Fund, and the Kangu Higher Court

AUTOGIRO ANTICS A Inter report states that the

TELEVISED

London, To-day. An autogiro display, including) leaning over a tops placed 18 feet above the ground, formed part of the BBC television” programme Yesterday, Reuterior quae qu

} “We had a new tempuraty tax- the national defence contribution which will be coming into ita fuit yield in the year now approaching.

PLAYING ITS PAFT te. Sir John stated the opinion that a for defence out of rever was they were entitled to claim that the $200,000,000, white £65,000,000 was present generation was playing ité modi contibuted by Joan.

Sir John explained that in financial year 1987.

the ture

wreckage of four of the Japanese planes shot down has been locat-,

Central News

édi

SHELLING NEAR HAIMEN

Kinhawa,

Chokiang, To-da Japanego warships. tho Chekiang coast near 10 miles south of Shang-

armaments Haimen, would, indeed hair:

In the year lidt, ending the figures | We shall not putfor either from to face. were £274,000,000 – from revenue, loss, of credit in the prevent, almathis heavy burden, and 42,040,000 (rpm)

* shall we incur the reproaches of dre rumember that ethos.comtrim fad Explaining the rise in these successors hereafter in the course these burdens well as ourselves figuren Sie Jobtrald the first year wo have bar cempelled to teha? and let us be confkient, tice par d was largely preparistom for Digger Sir Colin sald, it wish (deplorable, Land, with (suyuancial outgute:2

yllarda grievous and, horrible that e largo with those other resour QUGFUEL PRODUCTKIN Th part of World laureat alkot d be are more patent....) He-dcscriber? the dem your devoted for this purpose when they and..

might otherwico, "her available to abdo to infanch the tion, and the third yong as one in promote peaceful progr (Comprat · Contal core).

Eighteen Central New

FRANCO IRANIAN SETTLEMENT

Pari To-day.

laotwear

batio: felations

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