THE CHINA MAIL, WEDNESDAY, APRIL 22, 1953.
Encouraging Capital
Capital "Cut-Throat" Investment Schemes
Ceylon's Rubber Exports
Colombo, Apr. 21. Rubber amounting to 89,132 tons of all grades was exported from Ceylon during the year 1952, ac- cording to statistics com- piled by the Rubber Com-
missioner. Mr H. Jinadasa.
Communist China imported the largest quantity of rubber from Ceylon, 29,691 tons, followed by the United Sinter with
10.008 tous and the United Kingdom, 15,000 tons.
Besides all grades of rubber and cocsanut ell, which were the commodities
duitherto shipped lunder the terms of the trade Lagreement with Red China, China.
bas expressed
desire ก purchase certain ather com- modities.
to
All trade beween Ceylon and China has now come under the
ntrol of
the Rubber Cum- missioner, who will be the sute exporter of all Ceylon produce, and no licences. will be issued
exportation through con mercial channels.
for
A Government spokesman said that the reason for all trade being under the control of the Rubber Commissioner was to establish a
allked ogency
here, which
deal direct with the Chinese National Import and Export Corporation, the sole ex- purter and importer in China.
In Colonies
(FROM AN ECONOMIC CORRESPONDENT)
An incentive to British companies to go ahead with capital investment schemes in the Colonies and other Commonwealth territories has been given in the Budget.
This incentive takes the form of important tax concessions. One, affecting companies operat- ing in all Commonwealth territories, concerns the allowances granted for income and profits tax pur- poses on the cost of industrial buildings, plant and machinery, and mining works.
In 1945, wheri every possible encouragement was needed for companies to increase productive capacity at home and overseas, a system of “Initial allowances" was introduced.
FICTION.
The effect of this was to enable initial allowance on new invest- a company to "write off" a largements at the rate of 10 per cent part of the cost of new industrial for industrial buildings, 20 per installations during the first year, cent for plant and machinery, thus reducing its liability for tax and 40 per cent for mining in that period.
works. This system was suspended British mining company, two years go, however, when whether it operates at home ur the demand for new capital overscus, will therefore be able equipment had to be damned to claim 40 per cent of the initial down in the interests of the cost, cf sinking a new short as rearmament programme.
allowance against income and profits tax during the year in which the expe
expense Thus, if
company new mining works. £1,000,000 It will be permitted to claim an initial allowance of £400,000, and this will be offset against its profits for taxation purposes.
From now on, companite will again be permitted to claim an
U.S. WHEAT
CROP
012
A
is incends |
NORMAL RATE
In the following years, the tax
remaining £600,000 will be at the normal rate, which is usually based on the estimated life of Die wine or oil well.
tex
PROSPECTS allowance for writing nif" the
New York, Apr. 21. The New York Times said that prospects
uppenred
for #food harvesting a United States wheat crop of 1,024,154,000 bushels this
was
for
The trade agreement between Ceylan and China will definitely continue and no persuasion had
The other
concessions been directed towards the
granted in the Budget Implement adimistry of Trade and Comineree
recommendations made by the Royal the United States Government. year.
Commission on Taxation of But while the Government's Prots and Income in its recent NO REASON
estimate
Interim The statement was made by Mr volume this season of 325,000,000
report. an export
Until
operating G. Senanayake, Minister of bushels, trade
now, companies sources doubted countries with which Brilain Trade and Commerce, when I that he
has no double-taxation agreement Zorviewed
forecast in connection with the realised, it said.
be Would
-Pakistan and Jetniem
India, for Went of Mr Harold Stassen, ;
Unless there was some pick-example-have not received full Security
director, ใน
U. K. taxation for In committee
foreign demand within the relief from congatisional
meeting up
few weeks, there were many the amounts paid in tax overseas. next that the US was
US was trying to per in the trade who believed that Ιπ these
the U. K. cases, sunde, Ceylon to cancel its agrec-exports might not reach 300,000; Gove
Government has allowed only 36 000 bushels.
per cent reller in respect of
profits With the refusal of Britain to overseas
from Mr Senanayake sald that the
and 75 per terms.
of the
had o along with the proposed ex-foreign countries, agreement
Tension nf
carned in the ΟΙ the International cent on profit been strictly adhered to up to wheat Agreement, which is duo Commonwealth.
Mr Butler has on July 31, the prospect
new accepted for any increase in exports was the Royal Commission's recom
mendation that all oversens not promising.
ment to send rubber to China in exchange for rice.
date by both countries, and he saw no reason why any difficulty should arise in the future. As
for
to
expire on
tax on
as he was aware, China would honour the contract and the
at drawn from the agreement, the tax purposes beliol that a
breach of faith ac future of the International Wheat taxation agreements have been that end would
was very much in signed or not.
With Britain now having with- profts should be treated ulike for whether double-
cause
the
collapse of trade relations was doubt.
Agreement
unfounded.
his
had
Britain's actian would probably
DISAPPOINTMENT
Mr. Senanayake added that, for mean greater competition in the He has also implemented "on"
part he would abide by the
export market. The exporting other of the Royal Commission's agreement thu hə
If overtures had such as Canada
tax
necat.
the
backing from The nations in the Commonwealth, recommendations -- that profits
ment to the Ministry of Defence End External Affairs with a view
C
Reuter.
and Australia,eamed overseas shall be exempt been made by the U.S. Govern-were expected to get most of the from U. K. so long as loca!
United Kingdom's business-currency regulations
prevent their remittance home.
There will be disappointment, however, that Mr Butler has not given effect to the third-and, perhaps, the most important-of the Royal Commission's recom- mendations.
to cancelling the agreement, he not aware of any such move. In rubber circles
particular
importance is attached to crepe rubber, as Ceylon's entire output of sheet rubber is being sold to Chino, so that crepe rubber and tca are now the main
corners, an
* MOST LIKELY
When the China trade
dollar
part
Grain Prices
In Chicago
This was that arrangements should be made whereby the amount of tax relief U. K. com- panies get in the Colonies as "planeer Industries" Chicago, Apr. 21.
should also Prices of grain futures closed rank for U. K. tax relief. was announced, certain quarters today, as follows:
AL the moment, this expected that crepe rubber pro-
particularly affects companies Wheat-price per bushel, switch over to spot
operating in 2.1094 the
and West Africa. more May
UPP: | September
ducers would sheet. rubber.
remunerative product. This July
cannot be
however, has presented difficul- December tics as machinery, used for sheet Match (1980) rubber manufacture
Com Spot utllised for
July
produeing стере May
erepe
March (1034)
Rye May
2.17-2 22344-3 23011 250-4/8.
2243%
4.0134
1.59
1.50-1.08
1.031%
1,014
rubber,
The Trade Advisory Council September will discuss measures to prevent December the manufacturers of rubber
from switching over fo sheet. The most likely form of Ju relief is reduction in the ex- Onta
May port duty.
July
New York Beur 200 11. Sack of $12.50 nominal-United Fress.
Mr S. T. L de Soyen, a leading rubber shipper
who has asked, the
Chame of Commerce of Ceylon |
Trade Advisory Council, has pointed
out that if Ceylon the manufacture suspends crepe rubber, the United States will turn to other sources, such
as Malaya and Indoncala.
of
7312-70 2435-39
1953-34.
tha West Indies
HEARINGS IN
Fight Against WASHINGTON ON
Competition
his
Dortmund. Apr, 21. Professor Ludvilz Erhard, West German Economics Minister, sald today country's export trado wAN ergaged in a "cut-ikroat" Delt against competition Ome fore!cu
to the
from
countries,
This was dine "partly criminal trado policy" of Some States more or lesa, openly
exports, idised their and not to their notual rompeiliive sohlevements
Dr Erhard did not ine dicate the countries he had
In
export prices
than be favourable Eow before but Was Ger- many would not adopt the palley of subsidy, he said.
He would shortly
meet authorities in Ecitain—"not to talk about a cartel but to reach a fair ne la ex- port poller."Reuter.
HONGKONG SHARE MARKET
(From Our Correspondent)
Business done on the Stock Exchange this morning amounted to $332,800.50. Noon quotations and the morning's transactions SHARES BUYERS SELLERS RALLS DANKS
HC. Dank .. 1413
INSURANCES
Canton Tinion Underwriters SHIPPING
Waterboat
Asia Nav,
DOCKS, ETC.
250
1.20
13% 13.50
K. Whart. 721
41410 10 * 1420
N. Pt. Whart 6.16 6 1809 @
Dock. ***** 10.50 39,19
Provident
sha Buck
Wheelock
LAND, MTC.
21., Hotel K.K. Land (0) S'hai Land Humphreys UTILITIES
Tram
Star Ferry
005
1.45 115
200
19
0.20
2.03
714
7.40 7.00
02 200 # GI
14,40 15
2222.20 1000
21.00
-1000 m 22
104
C. Fight (0)
XD........
10
C.
Light (N)
308 # 10. GOO 10.10
Elevinte ....23.20
Moçao Electric Telephone 10.40 INDUSTRIALS
Cement..... 15.30 Rope
15.10 STORES, ETC,
10.00 10.00 1200 Dairy XD
1000
300
Watson
.....21.40 21.70
Lune
61% 8.35 1000 Cass
TRADE POLICY
Washington, Apr, 21. -
MESSAGERIES
Outwards
M
MARITIMES
M
PASSENGERS/FREIGHT SERVICE
Leaves Marsailles Jongkong
"LA MARSEILLAISE” 19 Apt.
Tomewards
For
10-11 May 秘 Vakokamas
·
te Maraeilles
15 June
Hongkong "LA MARSEILLAISE" 21.33 Mey
via Marsellies to all Mediterranean & via Djibouti to Madagascar,
The House Ways and Means Committee will start hearings on international trade relations to- morrow, marking the first stage of a political bat- tle vitally important to the entire free world,
President Eisenhower's world policy speech last Thursday encouraged the advocates of a liberal trade policy, although early setbacks are "PEL-NO" possible.
Bill
The "protectionist" elements) in the Committee took the Initiativo a forin ghi ago when
cy outal the right of heartug on the Simpson which would simultaneously extend the present Reelprocal Trade Act for a year and satis ty the coal industry's demand for quota mis on imports of patroleum and fuel oll.
use Restion
Japanese
►
Trade With
S. America
Ex-
This has caused wide fenra in international circles that the Limplo
of extending
Washington, Apr. 21. Act, pending a
Trado experts here see a fair new general study of
for the gradual foreign prospect trade policy
of Japan's commerce as recommended pansion 10 Congress by President with Latin America but think E'tenhower, would become in- That the economic bauls for such volved in the "lög rolling" pro- a growth will differ greatly from cere an exchange of sectional that in the pre-war period, favours.
com-
Dolwatde "MONKAY" flamewards.
"MEINAM"
**MONKAY"
FREIGHT SERVICE
Leaver Dunkirk-19 Apt.
Leaves
•Keelung-21 Apr. ferluami Ay Keelung-29 Jane
Vla Salgon
West Africa ports.
Fet
מתוך14.
Hongkong
4-5 June
Hongkong
30 Apr. 30 May
2 July
Fif
+
•
↑ Saigon, Marseilles, Algiers, Oran, Tangiers, Cazablanes, Le Havre, Antwerp, Rotterdam. & Dunkirk
CIE DES MESSAGERIES MARITIMES P.O. Box 63, Hongkong
Queen's Building (Gr. Floor)
福团
Tel. 26661 (3' linea).
MAERSK LINE
.!
FAST FORTNIGHTLY SERVICE TO:
NEW YORK, BOSTON, BALTIMORE & PIIILADELPHIA vẫn SAN FRANCISCO, LOS ANGELES AND PANAMA
NEXT SAILINGS
"PETRE MAERSK” "JEPPESEN MAFIBRE "LADBA MAERSK“
May
Miny
...tr
Catling Vancouver
ARRIVALS FROM U.S.A.
ny, "GRETK MAKROK” MA "LAURA MAENSK" DLY. “OLGA MAERER'
May
May
May 10
Reports from many sou
sources The primary task for the indicated recently that Japan is committee men of Fberal trade at present engaged In i new views-which means lolerance series of trade missions, toward imports will be to dis-mercial exhibitions, negotiations cutangle the polley question of and promotional activities in extending the reciprocity pro- various Southern
om.. republies gramme from the vend versus calculated-
Im.v. to establish a per- öl squabble.
manent commerce in expanding dous advance publicity from a
The latter has had tremen-volume
Starting in 1948 Japan's com- spokesman for both the coulmerce with the Latin Amerlenn and petroleum industries.
area mude
rains but will suffered a The State Department
a temporary setback in | make a strong stund for the re-
1952
American ciprocity agreements, including because South the Venezuelo
Pael, which prices of some raw materials such Ds raw cotton and wool get cul Axed the terms of the interna-
of line with world prices and tions of trade.
Imports by Jepan were advantageous than in previous
In
years.
stendy
of her shipping connections with The principal Latin American ports and is dispared to negotiate patiently with the Republies of
America and Middle
Sculli America for more
business, United Press.
A RARE EVENT Rarely in history has a mere controversial and complicated problem confronted the
The fact that Argentina hod Con-
two bad years in grains produc- grets than the present neces-
tion because of drought was also sity to formulate on interna- tional irade policy.
a factor in slowing the Japanese The basic reason is that the commerce with South America.
However, Democratic Party, which lost
experts here under- control of Congress
stand that Japan at present looks to Latin America as an area of November -elections, fuvours
commercial im- low tariffs and the encourage-permanent ment of imports to make pos-portance to her international sible large exports of agricultrade plans and the restoration tural products, especially ent
and tou
Rians, The Republicans represent 1500 6 21.30 primarily industrial and manu- 500 23.30 tacluring industries which have 10.40 1000 10
avoured usually
"protection' 1300 18.40 of the home market. 1000 or 10 Political observers believe 15.30 that as the Congressional bat- the develops, both Republicans and Democrats will break par- 18.70ty lines an the trade policy question, with one wing of the
Party and Republican
the Democrats majority of porting President Eisenhower.
PRESIDENT'S AIM Many Impartial students DI
L'anal--situation-and- the-internato diplomatdent Eisenhower
Observere regrel
593
19.80
27.30
Crawford 21 21.30 1000
320 47 2
Sun Co. ............. COTTONS
Ewa
2.35
MISCELLANEOUS
Entertainment 10.40 -Yangtze 0.20 0.35
1000
1014
The Rubber
Markets
Singapore, Apr. 21. Prices of rubber futures closed today as follow
Number 1 rubber, per dh.
May June July
Number 2 rubber, May.. Number 3 rubber, May.. Number 4 rubber, May.. Spot rubber, unuåled. Blanket crepe No. 1 pale, crepe
874-14
that
sup-
did
not find it possible in the ear
Administration ly weeks of his
to present a definite long-terin would
tiade progromme which
Tin Market Proving A Headache
London, Aur. 21. Several things tire making
in a headache there days.
Опе is the "hot money" in temporarily deposited | London-foreign-owned Sterling here
satisfy the aspirations of many countries for Irade not aid."
They would welcome deci-which, in order to earn some
useful profits. While
has turned sive leadership by the
the metal market. House in the International
The owners of
thi "hot economic field.
However, 14 s generally money"
understood that the President
have been
"hori," it
to
selling Un
is generally
be-
is trying to maintain harmony lieved, and have been largely with the Congress which is ul-responsible for the big drops ways sensitive on trade ques- which, lewered spot in from £0321⁄2 per long ton on April tlons because of sectional and
. £6871⁄2 on April 15 – col-d241⁄2 Slate pressures.-United Press. 73-80
fall of 20 per cent.
30-2-001%
United Press.
LONDON MARKET
London, Apr. 21. The rubber market was today. Prices closed as follows:-
Number 1 rubber,
in pence per ib.
May
June
July/September October/December
January/March
dull
Share Market
Dealings
In Singapore
1
Το
cover their short sales, some of them have cautiously bought t'n. despite their
tion.
This buying has lifted
cau-
the
price from £007% to Friday's close of £73715, a recovery-of
seven per cent..
For Freight and Further Particulars please apply to:-
AGENTS:
JEBSEN & CO.
Pedder Bullding,
Tel. Nos, 36066-9
Chinese Freight Booking Office 27, Connaught Road, C.
Tel. 20461
Dales and rotation subject to change wilbout notice.
At liberty to preterd via sther porta to load/dlichatgn cargo.
EVERETT
LINES
EVERETT ORIENT LINE Fast regular freight-refrigerator-passenger service to Korea, Japon, Philippines, Indo- China, Siam, Malaya, Rangoon, Calcutta and Chittagong.
"BRADEVERETT”
Arrives Sails ............ Apr. 24
Apr. 23 from afaniia.
for Singapore, Rangoon &
"REBEVERETT"
Arrives Sails
Apr. 25 from Singapore. Apr. 25
Penang, Calenta,
for Yokohama, Osaka & Kobe.
Nagoya,
(Accepting cargo for transhipment Kobe/Fuman and Kobe/Okinawa)
EVERETT STAR LINE
Fast regular freight—refrigerator-passenger service to Korea, Japan, Philippines, Indo- China, Siam,, Malaya, Colombo, Bombay, Karachi and Persian Gulf Ports. "STAR BETELGEUSE”
Apr. 27 from Singapore.
Arrives Sails
Apr. 27 for Moji, Kobe, Osalen,
Nagoya & Yokohama.
"STAR ARCTURUS“
But the headache is probably.
enly
temporary though
there
may conceivably be men
ΟΙ
Eubstance to argue
Singapore, Apr. 21. The Singapore
that should get back to its pre-
tin
Arrives Seila
to
It is remarkable that Mr Butler took no action in this matter, It was this "particular difficulty that he named when he asked the Royal Commission to produce an Interim report as a matter
a matter of "Importance and urgency."
United Press. Statement for Financial The LAT
Mr pubished offer Butler's Budget Speech,
NEW YORK MARKET shows 1.041% 1.00-1.07% the
thare market | Korean war level of £3014 on Colonial provision for
New York, Apr. 21. Development and Welfare ex- Crude rubber No. 1 futures exper.enced one of the most June 29.
hla- They might be tempted Interesting periods in 113 penditure in the coming financial closed unchanged to ? lower,
by May
23.78 tory last week caused nainly continue 15 hammer the mar- year has been increased
fluctuations in
the ket. £2,400,000
last year's | July over
23.85 by wide
But there is much bigger to £10,500,000. Agures.
Crude rubber No. 3 future price of tin.
popular The Budget estimates also show closed quiet, no sales,
Trade sources said th's fac-trouble, haunting this
dominatet share dealings and widely used metal. One that the British Government ex- Spot No. 1 ribbed smoked pects to pay out £8,000,000-sheets 24% nominal-Associated and operators in the tin stares is that when exceptional fac-
market were continually
DS en tors sucr government. £1,000,000 more than last year Press.
the toes to take advantage of lockplling-drives the price of the rises and falls as they oc- tin skywart the cost of getting curred.
This is t'n iso rises tharply. The daily fluctuations en- the problem on which the In- couraged speculators and there ternational Tin Study Group is was greatly stepped-up buying almost certainly 'work'ng
United Press. end selling during the weck.
Industr.ale wero steadier with a fair investment demand
New York Sugar
Futures
New York, Apr. 21. World No. A sugar futures
con-
He also points out that several closed today 4 to 20 paints lover America manufacturers have with sales totalling 217
their machinery to deal tracts.
Contract No. 8 closed un-
designed
to meet its capital commitments with regard to Colonial Develop- ment,
Cotton Prices
ed in Ceylon, with
types manufacturers changed to 4 points lower with and if these Handle cubber from Malaya end Indencala, they are not likely to reconvert their machinery again when Ceylon, producers resume production of crepe rubber, latex Press.
redesign their machinery to Sales totalling 05 contracts, In New York
Profit-taking and realising pressure found a teclinically un-
New York, Apr. 21. balanced tuntion in the world contract after last week's rise,
Prices of cotton futures closed traders wild. Domestic futures today as follows:-
erepe, serpPN clo.—United { held relatively steady In quietpat.
METALS IN N.Y.
and mixed dealings
Prices closed as follows →→
Contact No. 4 (world)"
May July Reptember New York, Apr. 21. Ociobic Prices Int: the metal market January
Marcis closed uncharmed with the fol lowing exceptions:
MAY July October December March May July 344 ruminal Oelaber
NEW ORLEANS Spot: 345) May
2.63 asked
3.4%
$3.49-3.62 3.42 bid 3.42
Spot
Tin, Grade A (89.00, per cont or higher), New York, per, Ib.
Contact No. §.
July
15.00 bla
13.30 nomínki | KEY
0.0
July October
Tob por ton: November (hoaysoft) $8.75-0.25
March United
Spot
Rod. Prass..
03,17-23,19
5.68
33.04 nominal
33.24 noming!
52.70, bld
-Unlied Pre
MARKET
33.15-33,34
LONDON TIN MARKET
lows:
London, Apr. 31,
Spot in, buyers' Spot tin. wellery
Sludness done at rjames Three-months tin, buyert.. Three-months tin, sellers. Busine and at Bettlement
.699
*100
200
tor
A
*London, Apr. 21. Japanese bonds,
"A" (48. of 1800) 84 "B" (4 of 1010) .. -72 "C" (48.0 1007) 127 "D" (Sa of 1924) .. 403 "E" (545, of 1930) 347 Console
United: Press.
00-7/10
The tin market was barely following showed only
the steadier rubber JAPANESE BONDS steady today. Tumover as 70 price tons, including five 1033 for cash.cmall decline over the previous Prices closed at the end of the week...
Trade sources suld the official morning session as fol-
steadier rubber market. las re- flected a better sentiment in ikis market and the apparent. ly improved prospects of con- 606-650 sumption of natural rubber hail
ja elcodying effect.
However, rubber share en
and thurism is lacking the, first time in many months not a single deal in shares was
Do New York, Apr. 21. reported.
Jones · : averages: at the Businom wat done in the local Ono trade expert said it is end of the stock market session unofficial. Exchange -market-this › fairly evident that rubber will stood as follows:— › morning at the following:ratan:- have to rise a good many 30 inutustrials
160ccnta per, paund before there 20 'rails
700
United Press,"
Exchange
Rates
334 US dollar per #1), leg
Sterling Boteper. #11, Indonesia "auliders (per 100) Ellom tenía (per › 10d) -
Singapore (tri)
*FIC planttos (per 200)
for NY Stock Exchango
can be any pronounced roylyal 15 utilities of intrees. In shores.-United | -240 bonds.
12.40 Press
276,40
*****、 103.80
51.77 00.201 United Press.
May 1 from Japan. May 2 for Singapore, Port: Swet- tenham, Madras, Colombo, Bombay, Karach).. Khor- ramshahr, Basrah & Buhrein.......
-- (Accepting cargo for transhipment
· Kobe/Pusan and Kobe/Okinaws)
EVERETT STEAMSHIP CORPORATION S/A Queen's Building, Telephone, 31206. Chinese Department: Telephone 28293,
YAMASHITA LINE
S/S YAMAHIKO MARU
*D/W, 9.650 tons
Arriving A.M. April 23, Loading Buoy All Sailing April 24
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Telp 22033. ANOVA, Chinese Freight, Agentsi.
Leighton Shipping. Co. 31 Gilman Big! Tell 23141