Page
› THE CHINA MAIL',' MONDAY, APRIL 20, 1953.
器
FEW RESERVATIONS Wages
Chancellor's Budget Well Received
Startling Contrast With Last Year's Policy
(FROM OUR OWN CORRESPONDENT)
Londoni, Apr. 19.
Mr Butler's second Budget has proved even more popular than his first. The reason is clear. At long last the trend of economic policy is away from restriction and towards what the Chancellor called "freer endeavour and greater reward for effort.” --
This has been welcomed with only minor reservations by indus- trialists and wage-earners alike,
Of course nobody is entirely satisfied that the Chancellor has done all ho could to help them personally. But with this inevitable qualification the Budget proposals have met with wide approval.
Those who benefit by big tax concessions are duly graterul while thore who don't gain directly are at least thankful that nothing les been taken away from them.
Whatever may be said about the economile calculations that underlie 1; Mr Butler's second
For the extra funds made for it is expected that the Goy available to the "private sector" erament will go to the market of the economy by the reduction soon for a loan of several million in Income tax are more likely pounds. to be saved if they are given to companies than if they are Alyun lo
ven to individuals, Companies will also recalvo the benent of two other major tax concessions-the restoration allowances ол пеш
Budget has therefore been an of "initial outstanding political success.
Investment in industrial build-
from
A Government lopn of this size is in any case expected be fore the end of the year, for Mi Butler had budgeted for nn overall defels of £440 million and this can only be covered by borrowing.
This' was
Issue In U.S.
BRITISH CAPITAL MESSAGERIES
BEING INVESTED IN CANADA
Making Up For Lost Time
t
Ottawa, Apr. 19,
Outwarda
M
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MARITIMES M
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"IWA MABSEILLAISE" 22-11 MAY
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New York, Apr. 19. The National Association af Manufacturers said today that public interest Would be best. served I galila in productivity were distri- The quickening flow of capital from London buted to all segments of the to this country is regarded here as a daring move "MONKAT" population, in the form of by Britain to make up for lost time in sharing the lower prices father than by wage rises to trade union riches of Canada's det lopment.
workers.
There are unmistakable signs that the long- In a-statement on "produc-awaited march of British capital has begun in fivity and wages", the Ascoria- tion said that the growing de
earnest and that it is not all being directed into mands of unions for wage In- quarters guaranteeing an early, if moderatë, creases based on productivity
dividend. raised "large questions" whether It was in the national interest or practicable to attempt to the wages to the "miles per gallon" efficiency of the economy,
"Everyone
Outwards.
Bemowarda "MEINAMTM "FEI-HO"
"MONKAY"
FREIGHT SERVICE
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+ Salgon, Marseilles, Algiers, Orkhi; Tanglers, Casablanca; Le Havre, Antwerp, Rotterdam & Dunkirk
CIE DES MESSAGERIES MARITIMES
P.Q, Box 53, Hongkong
evideritly being taken, it is than Niagara Falls.
Biz risks for big stakes are greater hydro-power potential Qucen's Building (Gr. Floor) stated in Government circles
here, especially in the If, however; another. com- agrees that case agreement between pany wishes' to develop any workers should share in what-the Newfoundlant incal certain site ever gains are made in the pre-Government and the Rotschilds declined to do so itself, rights and the British Newfoundland Corporation of Whe
American backed ductivity
British Newfoundland economy," the Association said,
In considering the question
Corporation Ltd.
to that particular stretch water will be tant to the Cor whether wages should be relat- ed to productivity in any fixed formula, the Association came to these conclusions:
1. The national interest and the general well-being of all
of the general back, segments
the population would be adversely affected ground to last week's Stock
If the practice was adopted Exchange boceniet.
widely.
MORE WIDELY 2. Gains In
The Socialist Opposition ings, plant and machinery and appear to recognise this, too, for mining works and the ending of
On Wednesday mort prices their attack on lt ins lacked the excess profts levy
were marked up sharply but in- conviction.
January 1, 1954.
vestors remained exutious. Buy- Those
Individuals Ing was selective and private
concen- who do not gain directly by tested on shares in companies which will benefit from the tax the income tax reduction can draw
from concessions, especially the end-of the all-round cut of 25 per cent the excess profits levy. la the various levels
purchase tax.
In considering the economie aspects of the Budget It is In- teresting to contrast the present polley with that followed last year.
The paramount need then was to arrest the drain on the gold TestTves and wipe out the United Kingdom's huge payments de fell with the rest of the world.
Everything else was subor dinate to this Imperative need.
DEFENCE STRAINS
But there was one form of economic activity
that
some
censolation
of the
The benefits of this conces sion are widely spread through out the range of goods present subject to the tax but the biggest fails is price will the so-called "luxury" be in goods such as motor cars, re- frigerators and television rets.
This should stimulate sales
could of those goods and so bring not be restricted without In- relief to industries which have curring additionat rlaks. The suffered from the decline of defence programme `had to
It involved an on even though
extra strain on the engineering industries to which the country
overseas demand.
A GREAT RISK
argued that the Chancellor is taking
looked for a large proportion of It has been
its exporta.
production Savourable
movement i
the
a great On the other hand, some relief risk in giving such widespread of the to all sections was hoped for from increased relief
and from a community.
In particular, doubls have be-been expressed as to the wirdom tween import and export prices, of leaving some £440 million of Invisible carnings, too, werec. Government s projected expected to rise. But even so capital expenditure uncovered there appeared little likelihood by expected revenue receipts.
Time alone will tell whether.a
terms of trade the ratio
othe
poration title to what is virtual-
The agreement gives the Corporation.
of
ly an empire of undeveloped The timber limits Included
Chancellor
Was
In
prime black spruce along with In the ogreement sie known to contain ten million cords of large reserves of pulpwood.
This
spring, the Corporation Intends to send out le fest ex-
sources. But the taming of this raw materials and natural re- empire has daunted others and, until recently, was regarded as
There was a time when the impossible. indications that the British considered out of the question, development of Labrador wag of the Exchequer, The building of the Goose Bay productivity Mr Richard Butler, has broken would be shared airport during the war, how- ever, established 0 foothold for and more equitably among all of British capital into Canada
which can be readily farmers, white-collar and pro- there
are seen on many uldes. First, man
irst, extended the onnouncement fessional workers,
pensioners
that the release of dollars Britain for investiment Canada had in the first two and ploration parties. Much of this a half months of 1951 reached work will have to be done by
with camera an annual rate of more than acroplane,
and magnetometer. four times that of the 50,000,-pendable portions of the con- When the ex- 3. Even if it was desirable to
000 dollars in 1952. give explicit recognition to pro-
Second, the purchase by Bri closer surveys with a view to cessions have been delimited, ductivity In the setting of
tish Insulated Callender's actual wages, there was no practicable Cables, Ltd.,. of the great part concentrated on the remaining development will br method of doing so In view of
Electrical Works which Arm obstacles
prevented accurate and dependable mea-Ltd., at Brockville, Ontario, is regarded as a 12,000,000-dollar step across the Atlantle, to gain for Britain a share in Canada's switily expanding éléctrical ins dustry.
In the event, lees declined appreciably before the end of the week. The Financial Times in- dustrial share index, which had risen three and a half points up to Wednesday's close, showed a net gain of only one point on the week.
Gill-edged prices, on the other kund, remained
the week.
and others on fixed incomes---- if they were distributed in the form of lower prices rather than in higher wages for those belonging to unions,
throuhere gold shares reacted (surement of productivity gains,
on
sharply at first to the South African election result but prices later recovered hopes of favourable quarterly reports from the mining companies.
RISE OVERDONE
London, Apr. 10. Mr Butler's "incentive" Budget was very well received on the stock markets with prices soaring on Wednesday.
ភព
the
were
this
4. No real need existed productivity in any new way.
10 altempting to relate wages to as natural economic forces had over many years assured, work- ers of a nearly constant share of the proceeds of production.- Reuter.
Detroit Mission For H.K.
of Phillips
BUTLER PRAISED
Third, the move into the in- vestment fleld here of important United
Kingdom investment houses. ... which... have formed United North Atlantic Securities, Ltd., is regarded as a step to be really to participate in favour- able situations through dealings in unlisted thares of promising Canadian, enterprises.
Further, many enquiries have been received from British arms about the possibility of investing in New Brunswick's great new base metals ands where cobasal tonnages have been indicated.
In official circles here, Mr. the British Chancellor, is
of the atmosphere.
19, on expert sense of}
It was quickly realised that the movement had been over- done and, by the close on Friday, most of the rise had of balancing the external adefelt of this size can be borne
disappeared. eduint unless some of the burden
British Governments revival of inflation. engineering industries without
exception, holding their But the question that has lo was removed.
gains firmly. This was due to In the event, Mr Butler debe asked is not whether the
the widespread opinion
that elded to cut down home invest-Chancellor has taken risks-for
Chancellor will want to ment. In other
from Investors words, the obviously he has but whether borrow amount of money that industry the danger would have been bor
And not taken coming year to take care of at spent
least part of the defcit. This and Teater It be new pliant
them, machinery was deliberately re
that he would of informed would mean The consensus duced.
the aurse
who are market gilt-edged of the
cpinion is that I would.
due to arrive here for a six-hour One
aloe people were weapons Mr
visit tomorrow morning. Butler chose to bring about this--THE STOCK EXCHANGE----
fcard to reduction was the bank rate.
murmur that he will
"The * group, on a Far East Bost & action on entering His first
a cautious advance substantial can
trade tour, will study possibill- before the
gilts ties of investments. In Formosa office had been to restore ortho during the first two days of last Coronation. Accordingly,
of the dox monetary polley and this week, in anticipation of a mild were
a little and conduct a survey even
general economic sumtion on sus carried further in this fat Budget, Stock Exchange prices erratic.
this island. Brilish Budget.
surged ahead when Mr Butler's
Transport gained
Under plans prepared by locai 20/72 proposals became known. THE COST
and conmmercia Wednesday's going, however, But, on the whole, gains were industrial
the visitors, after their bedie Illa
were not fully held though most under 10/. other weapon in the
will be divided into industrials Vickers arrival, nct improve- struggle to retrieve the balance
three teams to investigate the 3/0d and Ford Motors Jumpe of payments situation was im-
but selling
import and export situation anıl second on port restriction and this was
to make of them
calls on Nationalist heid most "Incentive Budget met with thoughts
Premier Chen wielded with drastic effect.
Cheng, United States Ambassador Karl Rankin Despite the fact that subse-gcneral approval. Only note of down to rises at 3d.
Oils were criticism was that Mr Butler
rather idle apart
and Governor O. K, Yui, quent events disappointed many had not lowered the two per from Royal Dutch which work- of his Budget hopes, Mr Butler's cent stomp duty which is wide- ed its way up 13/04 to £31%. policy achieved its purpose.
In fact it worked beiter thany believed to be hampering
even he had
expected. External developments proved ore favourable to Britain than anybody had expected and these helped to turn the defeit of 1951 substantial surplus last
Into a year.
This recovery, However, was not achieved without cost. The British import restrictions con- tributed to a decline in demand for British exports and this was reflected in a fall in production
at
After
sections showed ment
ent on the week,
In the City, the Chancellors 2/-
strong
GOLD SHARES
investment
But good news waś not lack- There was buyirig of gold and standard rate of income tax will in general the picture was
The ing
reduction In the uranium shares on Friday but in- enable companies to put more of decisive. their profits aside for modernisa Some, argued that the new.
tion and re-equipment and, - South African Government, with vestors hope, till leave scene-its thumping majority, will take thing over for bigger dividend a big slice off taxes to express distributions.
Its oppreciation but there lingers
The all-round cut in purchase some fear of strikes and dis- tax should help many, industries otters. to step up their sales in the home
Japanese borids closed
very
market now that export outlets firm with Tokyo Electrics up de begening more difficult to £1 and others up by varying
Meanwhile competition was And. mounting and Britain was falling behind in the race for
RETAIL HOPES
amounts.
Germans were easier.,.
export markets. So, even if Companies expected to bene- slightly irregular.
world demand
Chinese were quiet and revived, there it most by this concession are There was
enough demand could be no assurance that Br-thors which
of the manufacture for dollar stocks tain would recapture her post "luxury goods such as motor, London premium per cent to tion in world trade-unless· bëri
cars, refrigerators and televl 3 per cent.-United Press. Industrier were made more slan ECLS. competitive.
THE SAME ENTIS,
This was the problem that confronted Mr Butler when he come to frame -his second Bildget
New policies were needed to meet the situation and The Chancellor V was ready with them,
His proposals all have the saine ends in view to increase competitive effelency, to stimu
and to encourage]
lato pro
Lower prices thould also lead
an improvement in retall
factor in
Rubber Futures
In S'pore:
4416-033
013-60%
|
are can-
Tripel, Apr. 19. Chinese Nationalist President Chiang Kai-shek will receive tomorrow
Д afternoon member group of the Detroit timing in his creation
freer Investment Board of Commerce,
All the steps taken. aldered excellent means of en- suring for Britain a share in
dividends the
to be earned int Canada. But the agree mbnt.
New- British foundland Corporation Limited is seen as by far the most fascinating and exciting.
This agreement confers concessions in Labrador and Newfoundland. for minerals and water power and has been called "the biggest real estate deal ilment in
The visiting Detroit business- men are due to leave here for Hongkong shortly after a lunch arranged in their honour by local Industrial and clvje ganisations en Formosa, In- cluding the American Chamber of Commerce.Reuter,
Expansion Of Steel Industry
OT-
London, Further details of the steel industry's development plan have been sued..
It is planned to raise output
with
visi
timber,
holdings. Reuter."
HONGKONG SHARE MARKET
(From Our Correspöädent)
Business dope on the Stock Exchange this inorning amount- ed to $183,359.40. Noon quota- tions and the morning's trans- actions:
SHARES BUYERS SELLERS SALES GOVT. LOANS 3% (1948)
BANKS
1 Barks .. 1400 East AMA."
148 NSURANCES
Canlan Underwriters
pocKS, ETC,
2:30
5.30
N. PL Wharf 0.10 14 Dock
11.000 S'hai, Dock 2.03 Wheelock ....
7t
LAND, ETC.
50000 DI
4 @ 1400
HK Hotel 740 750 IK, and (0) 3D 50 12795925 9'hal Land: 1.40 1.50 UTILITIES
Tram...... 21.80 Star Ferry 103
2349.35
C. Light (N) 630 6.45 Electric 23.2 on this con present century." It is the Arst time since the war that British interests have gone into any such large-scale plans for the development. of new resources in the dollar Area,
big sibilities in
iron copper, lead, zine and nickei and great new hydro-electrie) plants to power such projects.
200 ₫ 23.20
INDUSTRIALS
Telephone 10.10 181 1800 # 38 Cement
14.80 300 14.90 Коре
14.00 STORES, ETC.
Dairy
18.70 Wation. Lav
It ennium,
THE TASK
500 16.70
21.40 27.70 200 19 27.30
Crawford MISCELLANEOUS
Yangtze
614 6.35
OUT TO BEAT GERMANY
The sum of 850,000 dollars (about £120,000) has bedri allotted for exploration this year, with a total outlay on this work in the five years of 1,250,-
New York, Apr, 10. Japan's high-precision, optical 603 (about £420,000), It Industry is out to capture the race against time, qually position from Germany. however, be
While
incredibly large con
ànic, cessiona
_COL"] an Industry spokesman have been granted.
Thomas Bay of Yokohama, amounting almost to monopolles Divisional Export Director of at the outset, each your part of ordine Matheson & Co., Ltd.. the resources, of
land, or water added that "ubstantial strides power sites must revert to the already have been made in this Newfoundland Government untill direction. He estimated that tho minimum holdings are Americans now own more than
Tokyo,
the British Newfoundland Cor-
to 20m ingot tons by 1937-38 reached. It will be the task of 50,000 Canon edmeras made in As last year's production otporation to pick the choice spots 10,418,000, ingot fons, was the in a hurry. highest ever reached in this
over
The next decade," Mr Baby said, "will see Japanese pro- 50,000 duced comeras, lenses, binocul
other
country, this calls for a substan- For minerals, tial increase in steel-isking square miles in Labrador will lars, microscopes and capacity and will make a formli-be
selected from the present quality optical goods forge mde demand upon the anal raw 74,000 which are unallotted in ahead,” Associated Press. minterials.
this territory, Ten thousand The search for scrap could be square miles will revert to further intensified, and promis-Newfoundland by 1955 and after
new have Exchange Rates
to business, too.
These hopes riaturally adve stimulus to share prices in the industrials and atores section of the Stock Exchange.
Singapore, Apr. 18, But the biggest
Prives of rubber futures closca Wednesday's boomlet was. Mr today as followe Butler's announcement that the Nunder 1 rubber, per 18. * huted excess profits lexy would
MAY Juno
opened up, but ka view of recent yert to the Goverment every disappear on Jan 1 next.
July
trends there must be some dive years until the minimum of Business was done in this focal This tax hað bád a deterrent } Number 4 rubber, May
anxiety lest the nationalised 18,000 square
market exchang miles has been official
tills effect on the expansion of in-Number rubber, My
coal industry
morning at the following ralessa Number & rubber. May
should prove reached.
13.9. daithe (per, $1) que dustry and it is therefore right spot rubber, undale
unable to meet the Increated de-
Tips theistering note (ver £1) that it should, go,
Banket crepe
The Corporation mand for coking coal, sys the mammoth task of picking what Indonesian gullasts (per 1003 of benefit of this by no means
The rise in prices, however, No. 1 pale crepe
"Daily Telegraph
Hinkapore 18tra Chifncellor's
concessioris
confined to
Un do ta as, the plane, is best in as unxxplored Wildes am scals PRE 100 Faceruo to Industry as in-drinary, shares,
within the power of the steel and letting the rest go by FIC plates (per 1001
default."' 'In a làrid known to be deed' It should it their purpose found the Budget to its king.
The cult-edged market elo
Industry itself, confidence may be folt in its failigent cal studded with unbelievable Fiches, Because dis predecessor, has been this. lại | oing to be
to be a tricky For example nearly, a half of
LDAN REQUEST
10,
10 brilliantly, realised a year, burificas. the reduction, in
The first, trade, and payments gain from 1
Year Waterpower rights, his grant-
New Delhi, Apr. 19. the standhra. of income tax Tho, bank. rate has been. left | agreement between. Greces`kha, ahead of schedule, kuuled on mil, rivers: Iti NOWróbKALE
The way in which
Trado-negollations between now
pound Will unchanged and despite the tax barst was initialled this inglistry hay refused in it were land in Labrador which have India, and Crypt are expected For resins, revenue expected Foreign Ministry herd, today by arbell by the uncertainty that not already been opeild, Tils to start in Cairo barly. hekt rare, to exceed lost year's level. the Exyption Foreign Under har zelaned over it since 1948 is gives the Corporation. virtually month, according to reliable weighted ? the favour of the The continued Armtom of Secretory Mr Sami Aout Tetou very much to the credit of all ́a ménopoly on future develop sources. The Indo-Egyptian corporate taxpayer, it is not gilt-edged prices, however, may and the Greax Ambassador M. concerned-management, techni-menti There are several sites trade spreement expired la without good regioh..
ova something to official support | Michael Helas-Reuter..
cal staff and steelworkers. which are known to positus a February—United Press.
will 18 to be achieved.
the
United Prets,
Trado Agreement.
50.00 23.20
13275
Cairo Trade. Talks
Tel. 26681 (9 liftdy.
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EVERETT
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Apr. 27 from Singapore. Apr. 27 for Moji, Kobe,
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EVERETT STEAMship CorporatION S/A. Quaen's Building, Telephone 31206, Chinein Department: Telephone 28293,
BUSINESS REGULATION
ORDINANCE 1952
Coples of the prescribed Forms 1(a): 1(b) and 1 (c))}
Now On Sale at S. C. M. Post, Ltd. HONGKONG AND KOWLOON
TEN CENTS EACH