THE CHINA MAIL, APRIL 17, 1940

SHANGHAI FACES BATTLE OF THE BUDGET

Ibery, Supreme Court

Shanghai, To-day. THOUSANDS OF BRITISH, American, Japanese and minority nationalities in the Settlement are expected to turn out for the annual Municipal ratepayers' meeting this afternoon at the Race Club, at which the Japanese are expected vigor- ously to oppose the Municipal budget providing a 50 per cent. tax increase.

If the Japanese succeed in stopping the passage of the budget measure the Council will be faced with the task of revising the budget and seeking other means besides taxes to defray expenses for the year.

SANG WO-TAI CASSIA CASE CONTINUES

THE ACTION ARISING FROM A DISPUTE BETWEEN SANG WO-TAI AND THE HOLLAND CHINA COM- PANY WAS CONTINUED BEFORE SIR ATHOLL MACGREGOR 'THIS MORNING.

Mr. Eldon Potter, K.C., instructed by Peter Sin, is for plaintiffs, and de- fendants are represented by the Hon. Mr. Leo D'Almada Jnr. instructed by Wilkinson and Grist.

Mr. Potter is asking the Court to de- clare that they discharged from any liability under seven contracts for delivery of 870 bales of cassia liquea which was made in Canton between August 3, 1938 and October 5, 1938, and the return of $8,000.

The plaintiffs contend that the oc-

However, the easy passage of all resolutions is forecast in official Coun- cil circles..

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The Japanese Residents Association TO-MORROW met last night to plan opposition to the budget and the tax increasé mea-

sures.

Council officials are confident Ja- panese opposition will be overcome because a large turn-out of British and American voters is assured.

If the budget resolution la de- feated by the Japanese voters it is probable confusion in the Municipal government would result.

to

Only by passage of the measure can the Council raise funds to pay police, firemen and other public services. If the resolution is defeated it is believed no bank would advance a loan keep the Council running another year unless assurances are forthcom- ing from a foreign power,

Between 6,000 and 8,000 are ex- pected to attend this afternoon's meeting. Reuter.

cupation of Canton made it impossible DENMARK'S

for delivery of the goods at due date, but by the delivering of the goods on the agreement of June 9, 1939, they had performed the delivery of

seven contracts.

the

Defendants contend that plaintiffs were liable under the seven contracts

GOLD

London, To-day.

The Chancellor of the Exchequer

to deliver 870 bales of cassia, and that stated in the Commons that according the agreement of June 9 constituted to the latest returns, the gold holdings a further and distinct contract to de-of the National Bank of Denmark and liver another 870 bales.

Norway amounted to thirteen and

Sir John Simon was unable to say whether the Germans had seized any part of these holdings or what part

their was being held outside countries at the times of the invasion.

British Wireless.

Defendants in respect of the 870 bales delivered had paid to plaintiffs eighteen or nineteen million pounds $10,036.90 only, and in breach of the respectively. said agreement of June 9 had refused. to pay the balance of $8,000,

Wong Chuen-oi, partner of plaintiff evidence yesterday, firm, who gave was to-day cross-examined by Mr. d'Almada and said he would have lost $1,500 on the contracts even after the extra amount had been paid for 'tran- sportation through Kwong Chow-Wan,

When the Japanese took Canton his office was burnt and one of his go- downs was taken over, but he had an- other godown at Shakee where some of his fokis stayed.

and

L

SAMPAN OVER H.K. MINEFIELD

own

"Have you no idea that you'll get blown

up?" the Harbour Master, Commander G. F. Hole, asked a Chin- The Canton office was closed

ese, Lai Chung, who was charged in business was done in Hong Kong.

He did not know why Messrs. Hol- the Marine Court this morning with land China were told that Sang Wo-entering the minefield at the north tai of Hong Kong had nothing to do side of the West Lamma with Sang Wo-tai of Canton."

LETTERS QUESTIONS

Channel

:

sampan near the shore and did not believe he was in any danger.

He was fined $10, or 10 days. Accused was arrested by Sergeant C. H. Mayor.

yesterday morning.

Defendant pleaded guilty, but ex- Referring to letters sent by the de-plained that he was sailing in his fendant firm correctly addressed but refused, witness said he could not ac- count for it. Regarding another ad- dressed to his father, he was present when the letter came. The postman insisted on the chop of the addressee on the receipt before delivering the letter. This was not possible as his father was not in Hong Kong and the chop was with him;

He could not say why another let ter sent to his firm by chit book was refused.

agreement cancelled previous con- tracts.

Witness said that he had not seen such an amendment in any contract The marks and quantities before. were the same as in the other con- tracts and he always took the agree- ment to refer to the previous tracts.

con-

At the time of the fall of Canton he had outstanding contracts with other firms including Jebsen's and Loxley's

IN ABEYANCE? He did not tell the manager of de fendant firm that these firms were In answer to Mr. Potter, witness holding their contracts in abeyance said that as far as outstanding con- and were entering into new contracts.fracts with other firms were con- to Referring to the agreement of June 8, witness agreed that by the agree ment alone, he would be obliged to de- liver 870 bales of cassia, but he said the agreement was in connection with the seven previous contracts.

a

It the agreement was treated as substitute contract, Mr. d'Alntada ask. ed, why was it that witness did not insist on words to the effect that the

cerned, he explained the.position them at the time and the contracts were still in abeyance.

He never in his mind thought, when he signed the agreement, that he was selling a new lot of 870 bales.

*- Before the fall of Canton, his month- ly business was over $50,000 but now it was only a few thousand dollars,

The case is proceeding.

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