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COMMENT OF

THE DAY

BRITAIN'S BUDGET

I the chancellor at the

T was not unexpected that:

Exchequer, Mr Heathcoat Amory, would produce budget containing Jargo roforma and small reliefs. He has reformed and slightly reduced the profits tax, by abolishing the discrimina- tory tax on dividends and simplified and reduced the purchase tax.

It

in Bome

thought WEB quartors that the reliefa would be larger than they are, but there is still need for caution despite the fact that Rome economista have; calculated that the Chancel- Jor

could conservatively afford to remit between £100 and £150 million in taxes. Instead Mr Amory has re-

mitted only £50 million for i the present financial year (up to next April) and £108 million in a full year.

Formal Deficit

A result, the Chanceller

expects a' current budget! surplus of no less than £364 million. Formally, he shows an overall deficit of £236 million, but this includes more than £500 million for the nationalised industries, most of which were not Included in the budget until | 1960,

Had the Chancellor chosen to

Budget Details-Back Page

THE WEATHER: Moderale EGE winds, Fine,

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WEDNESDAY, APRIL 16, 1958...

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GAILLARD'S GOVT RESIGNS

FELIX GAILLARD

The bombing of Saklet Sidi Youssef was Als downfall.

Algerian

Prisoners Riot

Defeated In National Assembly On

North African Policy

Paris, Apr. 16.

Felix Gaillard resigned as Premier of France early this morning after the National Assembly voted him out in a violent display that plunged France into probably its worst political crisis since the war.

M. Gaillard drove to see President Coty shortly before 1 a.m. and was with him 45 minutes before announcing that his resignation has been accept- ed. He will stay on as caretaker Premier.

The vote toppling the 38-|

year-old Premier after five months in office came just before

midnight,

after a violent debate in

an emergency session. of the National Assembly. The official Agures were 321 to 255.

that

Lyons, Apr. 15.

Righties and Communists Six hundred Aigerian pri

soners rioled. unchecked ganged up on Premier Gaillard, despite his warning that the tonight for more than an

.only alternative to his con- hour through this city's cillatory policy toward Tunisia SL Paul Prison until would be an obviously im-

possible reconquest of grenade throwing police former French protectorate. reinforcements quelled thent.

The Bombing Oticla's soid nearly 100 rovert

the to

pre-1956 rioters were injured, 20 of them system of Anancing the Go Bertously that they were nationalised Industries be taken to Lyons Hospital. could have shown a large; The Algerinns mutinied at suppertime as they were Aling overall surplus. The bulk of this year's tax into the prison mess hall cherily

after 8 p.m. relicts

Britain-£40 for million of the £50 million goes to purchase tax and the cinemas while the great majority of people buying their own homes will also get a useful anving on stamp tax.

Y

Expansion

M

WR Amory insists that the longer term objective is steady expansion, and that he could and would loveen up quickly If and when any danger of deflation or mass unemployment arose. He granted some coriccasions of above- to the areas average unemployment. The Increase from 20 to 25 per cent in the "initial allow ances" will enable businesses to write off the capital costs of new plant much faster and this should be a minor encouragement to industrial Investment.

With the unification.of

the

OVERCOMING

Bever

of

TUNISIAN GOVT

EXPECTED

ΤΟ

GO TO UNTM NOW

Washington, Apr. 15.

United States officials viewed with extreme con- cern tonight the defeat of the Government of Premier Felix Gaillard, as this was considered, likely to open up grave problems at the United Nations and in North Africa.

Condemnation

They expected that the Tunisian Government would lose

Although M. Gaillard was not

They said it had been hoped defeated on a formal conddence that the sobering influence of vote, he had sald Carlier he President Coty and the strenu- would rezign if defeated,

otis efforts of M. Gaillard to Thus the French bombing

obtain a sumclent majority for of the Tunisian villageT

the present governmost to co- Sakiet Sidi Youssef, alleged tinue would succeed even by hideout of Algerian rebels, alim margin of votes February which M. Gallard Overcoming their guards, they

ordered but which he spread through the

countenanced-oulminated in praon wreaking havoc; they smashed his defeat by the night and Left extremes of the Assembly. windows, broke down doors and

The vote came at the end of lore apert tables and chairs.

Emergency

Security Comell to ask for a police squads, one of the most violently answering un urgent call for antl-American

the condemnation of French action debates help from the warden, pushed Assembly has seen since World in Tunisia or even more serious the prisoners back cell block by War II. The US came in for requests. They foresaw that it eell block in a terrific battle. heavy criticism for its alternot would be very difficult for the The police used Hght conellate France and Tunisia United States and its Nato allies

which could

not-so heavy that M. Gaillard in the Security Council to leke et solidarity with Krenades,

injurics,

but warroj against "this automa- any action

France. frightened and contused the tle anil-American xenophobia

which threatens to sully the United States and British, votes On the contrary, at least the rioters-United Press.

honour of France."

among the Western powers in the Security Counc!! might show a sharp divergence with The "French" voLIKT on the Tunisian problem.

cause

serious

SHORT-TERM RADIOACTIVITY

London, Apr. 15.

Mr Harold Macmillan, Prime Minister, said today there was "a significant rise" in short-term radioactivity in the upper atmosphero lato fost month.

The Prime Minister told the House of Corunous that the lo- crease might have been pro- duced by the recent Russia 1 nuclear tests.

This short-term activity was not dangerous," he added.

He said the level of Strontium radioactive Clerch! 00

uffects bane tissue-on

profits tax at 10 per cent, the tax on dividends comes down from 30 per cent to 10 per cent while the tax profits on ploughed-back goes up from three per cent to 10 per cent. Those consumer goods and

other companion which that have been paying out the great bulk of their profits will thun have a tax saving. but big organisations such

25

the stcol companies

will now have to pay rather

more.

Relieved

JOWEVER, these latter Hwpics are relleyed from the liability which has

mountains and high ground was monitored regularly-Rouler,

Cotton Talks

|

Undue Pressure

The Government's was seen here as a

defeat protesi

REGRETTABLE FOR SUMMIT CONFERENCE

Bonn, Apr. 15.

no time in going to the UN West German Government circles in Bonn said the defeat of the French Government tonight was most regrettable.

en-

They said the present in- ternational situation, with the possibility of a stummit con- ference on the horizon, made it more important than ever to have complete unity in the Western nations,

A France without a Govern- ment would leave-the-West weakened and would jeopardise the chances of preliminary Tegotiations for a summit con- ference uchieving a successful conclusion,

DISMAY

Furthermore, they feared It against what whe considered possible that President Hablb undue pressure by President Bourguiba's position in Tunisia Eisenhower and a vote against a might be considerably weakened Prime Minister who was con politically, which could sidered by the Assembly courage the Tunisian extremists, having handled the situation backed by the Egyptian Govern- in Tunisia in a weak manner, ment. Officials feared the fall In Rome, the defeat of the,

Prior to the assumption of of the French Government French Goveniment WI. rc- office on November 5 last by might also result in less cordial garded with dismay by Italjon M. Felix Gaillard, both relations between France and political circles who see it

covernments of M. Morocco. Maurice Bourges-Mauboury and of M. Guy Molist had not hesitated to take energe- tic but unadvertised military reprisals against unila of Insurgent Algerians making ralds into Algeria from Tunisia.

the

Walle the Assembly debated

Repercussions

Պ

Elow to Franco-American relo- tions and an augury of increas- ing difficulties in North Africa. All commen! was private Italian Government spokes- but officials here feared that it men, while expressing sympathy wave of anti-Americanism with France's problems in the

in France this

have frequently urged might prea,

on greater readiness to accept have grave repercussions

France Algerian nationalist demands since Nato solidarity is the geographical centre of Ruer.

+

occurs

in the Selne-side Bourbon. Nato from the strategic view- ¡Palace, hundreds of riot police point.

took up positions in the vast Place de la Concorde to protect two the US Embassy against riols Manchester, Apr, 15.

that never came. There was only The Cotton Board announced a brief demonstration by Right-

discussions wing today

that

extremists with representatives of the In-Algeria is French",

The anti-Americanism dlan and Pakistan cotton dustries on the Import problem manifest not in the street but in ness in the solidarity between will be resumed in London

three Itself. United the

Prosa.

here

in-

at the Assembly

Press and Reuter.

the beginning of May-Reuter,

They recalled that France's closest allies, the United States and Britain, took part in the good offices mission and the fall of the Gaillard Gov- shoutingerment

anust be considered consequently a perious weak-

countries.United

was

been hanging over them for MACMILLAN ON SUMMIT:

tax

OR any future dis-

tributions of profits ploughed back ever alneo 1947. Leftwing as well as rightwing economists have long argued that the discriminatory tax

dividende

favoured

WEST'S REPLY TO RUSSIA SOON

London, Apr. 15..

monopoly: big businesses Mthe

finance themselves

ho

order that they may speak with in Britain that wanted to 100 the tests completely abolished. R Harold Macmillan, one voice."

Mr. Mucmillan was replying "Has become acquainted could

British Prime

to Labour questions about pre with the fact that the Print by ploughing back their pro- Minister, announced today parations for summit talks and Minister of Japan, who has fits, while now businesses that he hoped n note from the possiblity of discussing the condemned both the Russia could not raise money. Western governments re-banning of Hydrogen

and

bom tests and the Western tests, now

visit to President Eisenhower.

Retrospectively to as long ago plying to Sorict proposals teata during his forthcoming

1956, relying on a warning then for summit talks would be

AB

October,

the

thinks that the time has come

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sent in your' nomination

far

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if not, you have from Bow quilt Saturday. May 3. To ale mit, Toru to the Sports Pager for the nomination form-

US Census

Washington, Apr. 13.

A

CINEMA

BLOWN

UP ON ORDERS

TORY BUDGET UNDER FIRE 'Failure To Grasp Point'

!

London, Apr. 15.

Mr Hugh Gaitskell, leader of the British Labour Party, making what he called a few pre- liminary comments on the budget presented earlier today in the House of Commons by the Chancellor of the Exchequer, Mr Derick Heathcoat-Amory, said he thought he had missed "a great opportunity."

Nicosia, Apr. 15. cinenin in central Famagusta was blown up tonight by order of the British Governor, Sir Len Hugh Foot, when bombs found inside were

The considered Labour Party { detonated

the spot on

view because they were pro made tomorrow. nounced "too dangerous

Mr Amory still thought the deal with rising

to move".

.

dono Mr Amory could have on the budget will be something with one simple step.

-allowed the railways to ahead with their modernisation programme.

The explosion tore off part of only way to the nof and several of the walls prices was restriction and keep-

the fainting down production, Mr Gait collapsed, smashing

Labour, on

the other hand, thought it wiser to encourage increased productivity. Tho

ture and shattering neighbour-siteli said, ing windows, it was described by the owner as a "total loss." DEMOLITION

Shortly before the demoli- núm should be to try to reach an tlon, the British authorities re-arrangement with the traders Jected an offer by the Cypriot-union on the basis of polleles Greek owner of the cinema to, they could support. remove the bombs himself.

Experis said that the burnbs,

Most. Serious

This would ensure that wIRCI did not zei hopelessly out of step

which were found in the living quarters of the cinema projec Bonist, must be exploded where they were.

The bombs were found in a with productivity. cupboard yesterday together

"It Is the Chancellor's failure with fuse deinrators, utensils to grasp that point which we for making bombs and EOKA (terrorist union-with-Greece movement) literature, SILENCE

the

There was a strange silenco in the streets surrounding cinema tought as police cor- doned off the area prior to the explosion.

There were no

Then suddenly, the hooters of security forer cars began to sound one minute before the big bong, which was heard through the entire town. casualties.

The police were inquiring into the activities of the cinema projectionist, who disappeared before the explosion.-France- Presse.

Formosans

Bomb Celebes?

feel is most serious," he said,

Mr Galtakell said he did not think the budget proposals bed brought a settlement in the transport industry nearer,

Labour

That would have made pos- sible a rise in productivity, which would have made settlement of the wages dispute casier.

ם

Mr Gaitskooll also criticised

110 company profita tox changes

He thought the decision to end discrimination in favour of taxation.on, reserves, and, against taxation on dividends

"a mislaken move."

It must inevitably encourage the payment of largen dividends and therefore encourage con- sumption at a point where it was least necessary.

It was bound to have deteriorating effect on the oc- emmalation of company reserves and the promotion of company savings, ho addod-Router,"

Forces On Budget

Vote On

London, Apr. 15. The House of Commons tonight approved by a vote of 300 to 224 a Government budget pro- posal which would impose a 10 per cent tax on both distributed and undistributed profits.

The vote was forced by the an Increase in industrial pro- Labour Party, contrary 10

duction, which ho sold was at custom, following today's pre- the same level it had reached sentation of the Budget by the two years ago. Chancellor of the Exchequer,

continued to

Mr Heathcoat-Amory, and an Gal kell said that UNCITE- attack upon various of the Bud-ployment get proposals by Labour Party crease.. leader, Hugh Gaitskell,

OBJECTED

Galiskell criticised the ab- sence of my reference to the or to the Gaitskell said he objected to problems of wages

made

threatened strikes 1 the the pronts tax because

transport industry,

Ho expressed

Djakarta, Apr. 15. Official sources here in- dicated today that the

no distinction between distri. aircraft which bombed buted and undistributed profits. He said this would have the Mandai airfield near effect of Increasing dividend Macassar in the payments. Celebes last Sunda budget did nothing to encourage

WBS

based

"undoubtedly"

on Formosa,

the Indonesian Antara news agency reported. The sources said the air- craft was probably piloted by a Formosan crew, the agency said.

It quoted army guards on the airfield 13.9 saying they sighted Nationalist Chinese markings on the plane.

Reports had earlier stated it came from a northerly direction and that it was an American type B-26 bomber.

Damage at the airfield was described as "light" and repairs were completed yesterday, the

agency Bald.-France-Presse,

Jet Crash

Tokyo, Apr. 15.- The United States Air Force said today a RF-84-F United States Air Force Jet plane crashed six miles south ct MIZAWA Air Bose, northern Japan. The pilot parachuted safely prior to the crash---Heu- ter.

Mild Reaction“.

He also complained that the

regret that the bilget did not provide for the full carrying out of a programme for Investment and modernisation of the railway, system--France-Presse.

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when the Western governments Mr Macmillan said he would should agree with the Russian

proposal? Mr Hughes asked. Kiven, the Chancellor has delivered today or tomorrow. reply very shortly" to

Latest Soulet communication on

Mr Macmillan: "Yos air. But the JAW on

nuclear tests.

It is as I think the House on a strippingme

ning

He told the House of Com- "dividend

that reason whole feels, for He added: "As regarde to whereby nomo mons that the West's most im- device

much un-

The United States popula- was to persuada summit talka my discussions at I attach so

President Eisenhower

tlun reached 173,210,000 persons ingenious people were get-portant task

portance to making as rapidly

New York, Apr. 15. n. priblo the amendments around Apel 1, the Cenota Britain's new budget, AU- ting refunds on taxes which the Soviet Government to agree with

which will tend to the summit Bureau announced today.

im- they had not paid. While to preparatory plans and all the when I soo him in June will de-

nounced today, had little proper arrangements to make pend on the situation at that

wtiere, this time.

meeting,

whold

The United States population | medlata offect on sterling on the the British Treasury dis- the summit talka successful

exchange retrospective tax Jikes

Mr Emrys Hughes, Labour, question, including the question was 181,132,000 persons in April New York foreign It was also necessary to con

of control, can_best," "in_my | 1060, when the last official and foreign traders wald they did changes it alou dislikes retinue the process of propata asked if the Prime Minister was

was taken.-France- not expect more than very mild showroom: 42 Des Voeux Rd., C., 1st·f., HK. aware that there was a opinton, be dealt with."-Reu-cen funding taxos to propletion of the position of the not

[reaction' before closing,—–Reuter, various who have not paid them.

Western powers insteadily growing pubilla opinion

ter

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