44
BRITISH WAR LOAN CONVERSION
SCHEME
MR. CHAMBERLAIN SPRINGS SURPRISE -
11
IN COMMONS.
ESTIMATED SAVING OF £30,000,000
ANNUALLY
(THROUGH REUTER'S AGENCY)
LONDON, July 1.
HATEVER will be the reaction of the 3,000,000 kolders of War Bonds to the conversion scheme, it is welcomed with
a chorus of praise in this morning's newspapers, which editorially impress the koldora that it is their duty" to accept this bold and simple, scheme,
It is wise and far-reaching; The Daily Mail..
Great and well-conceived: The Times,
Courageous and well-timed: 7h Telegraph.
Sir George Beharrell, President, of the Federated" British Industries, saya stimulus will be given to the launching of long, term Interest rates which will be of the most importance to industry..
GIGANTIC FINANCIAL GPERATIONS
LONDON, June 30.
Details of one of the most gigantic nancial operations in history, the converting of the £2,000,000,000 $ per cent... war Joan, was amounced by Mr. Chamberlain in the House of Com- mums to-day.
From the end of the year the loan will bear intereat of 3 per ent, but holders proferring repayment may receive cash at par on December 1.
Convertees will receive a cash bonus of 1 per cent. on a new loan not to redeemed before 1952. This operation will mve the "Chancellor of the Exchequer £30.000,000 annually.
The simplicity of the scheme has confounded the city prophets, who anticipated complicated alternatives in view of the magnitude of the sum involved. Mr. Chamberlain, who returned from Lnu- sanno to-day, sprang the surprise on the Hoare to-night, and awakened loud cheers from all the beaches.
Mr. Lansbury expressed delight that an effort had at last been made to put the enormous debt of 'n betier footing.
The
All the Governments, Äines" 1829 have anxiously followed the market to choose the proper" moment to launch the scheme. Government printers were summoned for night work to cope with the tremendous task of printing and posting 13,000,000 forms with 24 hourя,
A GREAT ENTERPRISE
Mr. Chamberlain declared that the final and strongest argument for immediate action was the spirit of the country which had re- covered freedom in monetary matters, and was in the mood for areal enterprises and determine to carry them through to a sueceяs- ful conclusion.
He was confident that the great mass of holders would respond to the invitation to convert, and in the meantime he appealed to the city to forbear marking the new issues of capital on the market for a few weeks.
The total internal debt outstanding on March 31 was. £8,329,594,000 so therefore the conversion operation applies to one- third of the total internal debt of Great Britain..
The interest and management of the national debt was estim- ated in the April Budget to cost £276,000,000 for the current foar- cial year.
Some noteworthy features of the conversich scheme, are that the stock will not be tenderable for estate duties, and there will be.. no depreciation Fund. under which the Government now must provide £2,500,000 monthly when the market price of the War Loan falls below issue price.
This means an incaleylable gain, besides a saving of £30,000,000 interest anually. It in estimated that £150,000,000 to £200,000,000 is held abroad.
#
If holders decline to convert there is no eause for worry, as there will be ample time before December to re-finance any portion that is converted.
BROAD DETAILS OF CONVERSION
[URITISH WIRELESS SERVICE]
It 08.
1, 1952, hus not earlier, either in a separate operation or by inatal- rond.
HONG KONG DAILY PRESS, SATURDAY, JULY 2, 1932.
LAUSANNE
MANCHULI CUSTOMS
ป
CONFERENCE
"THERE IS STILL HOPE."
[UNITION WIRLASH SUVICE.}
"Ruoxy, June 30.
AT Lausanne, the Conference
Bureau, Consisting of Mr. Ramsay MacDonald, as President, and one representative of each de legation, which after its formation last night at a meeting of the six inviting powers, worked into the small hours of the morning on the reparation problem resumed at an early hour to-day and has been al most constantly at work since.
EMPLOYEES FORCED TO WORK FOR MANCHUKUO
(THROUGH REUTER'S AGENCY.]
HARBIN, July 1. TELEGRAM from Manchull states that the Custools staff has been arrested and forced to work for the Manchukno.
Several Russians and Chinese,
previously discharged from the Harbin engaged.
Customs have been re-
STAFF IN HIDING
HARBIN, July 1. THE Jaichuli Chascona Station
Meanwhile, the Ministers of Com- erts or their representatives, have been considering the measures ne comary to solve the economic, and financial difficulties responsible for. or tending to prolong the present was taken over by the Manchu yerisia, in preparation for a wider kad authorities on Tuesday, when
international conference to consider the question in the near future.
Chinese grade assistant was arresti Mr. MacDonaki, at a luncheoned by the Japanese police and adjournment, told Pressmen: "We escorted Are making
to Harbin, where he progress. The is hope."
arrived to-day. He is still under guard.
According to the newspapers, tai Germans are prepared provisionally to contribute a sum as yet unfixed for a Buropean reconstruction fund, and some of the discussions have centred round this idea,
Only six of the Harbiu regular Customs staff are working at pre- sent. The staff of all grades how totais 220,
1:
Intimidation continues, despite
NEW MENACE IN MANCHURIA
COMMUNISTS FORMING
AN ARMY
THROUGH REUTER'S AGENCY.}
ī
44.
HARIN, July 1. is rumcured, according to i Japanese information, that Soviet citizens in the Haitin and tengtaohutao and other closeby dis- tricts are forming a Communist Partisan detachment, one thousand strong and that their commander, from the Third Internationale, is arriving shortly.
It is estimated that the anti- Manchukua forces under Goneral La Tu and General Ting Chao to the east of Hailin total 20,080.
NANKING 'VARSITY
OUTRAGE
COMMUNIST MENACE GROWS
GENERALS TALK BUT DON'T FIGHT
+
NEWS FROM "SOVIET TERRITORY
(From Our Own Correspondent.)
KIURING, June 28, With regard to the Communists, the situation has not changed very 'múch during this month,"
the collecting of all surplus food. stufts and raw materials after pro- viding everybody with his require- ments. Every night at the same time they receive their radio com munications from Shanghai, Han kow and other places.
The papers give every day, long tolograms about the deliberations in Kuling, the travels of the big gen orals, etc...but they never give news of any rank fighting against) the Reds. As far as we are Concern- ed here in Kiangui ws do not know of nay ghting except at Wannsay (Central W. of Kaungsi). Thera certainly has been some fighting, and wounded soldiers have come! Reports of Government victories back to their bare Kronn: buc
in the anti-Communist campaign
GOVERNMENT VICTORIES Z
THROUGH BEUTSH'S AQINOY.}"
NANSINO, July 1
at the same time we hear that any pre coming in. Their lateat saccors soldiers passed over to the Reds hoing the capture of Hoshan, in
West Africi. at Wantsay.
Always the same story!
TOO LATE
The papers state also that a Wusueh (extreme E. of Huprh) the Government soldiers repelled thr Communist. All we know is that.
The Chancellor of the Exchequer, the counter-measures taken by the Troops early this morning forethly owing to the practical independeren.
Mr. Neville Chamberlain, who ro
this evening. attended a cabinet meeting and reported to his colleg gues on the developments at the conference.
Government troops no now be sieging he Communist headquar tera at Hochin, the opitulation of which is momentarily expected.
COMMUNISM NEAR WUHAN.
TROOPS ARREST UNRULY
STUDENTS
STARQUGX REDTER'S AGENCY.)
NANKING, July 1. THE Goverment is taking drastic steps to curb the student riots.
turned from Lausanne to London but the majority of the Chinese for the attack on the University's on in E. Hupeh, and Kiangsi, of Japanese Consul, Mr. Takigawa, entered the Central University and every Province the Hupeh troops.
arrested the .udents responsible were unable to cope with the sitan GREATER ACTIVITY REPORT.
ED: DESIGNS ON AREA. staff are in hiding.
Chancellor, the students were br course, did not try and help until It is assumed that Mr. Kato, the dered to leave the University pend-cupied by the Rods, and Hwangnes received from various districts qu
it was too late. Kwangts was oc Hankow, June 17.- Information former head of the Wharf Departing ita ment of the South Manchurian faculty were relieved of their posts. ed a lot of refugees; and that has the Communists are again becoming
re-organisation and the
was besieged. Kiukiang has receiv xide the Wuhan Cities, show that. Railway at Dairen; will be appoint- ed Commissioner at Harbin,
opened the eyes of the Officials. aotive and froin alt appearences they are making another effort to rench here. Confidence, however, is being placed in the troops who are ontrusted with the protection of the Cities, and especially in the 48th Division, who, although they are in arrenas for pay, ara, Hupeh men, of a square job we will have a home areas.
We are afraid here that instead and therefore ready to protect their
Aeroplanes are to be... medley of politics. We are already seen leaving here every morning, told that 108,000,000 dollars are and returning some hours after- wanted for this campaign. If wards, and it is presumed that they money comes firat, I am afraid that are. on the watch we will have no campaign,
for any threatening movement that miny bo made.
THROUGH KETER'S AGENCY.]
LAUSANNE, June 30. M. Harriot, the French Premier, has left for Paris
The meeting of the Executive Committee concluded at midnight. bat the German delegates were not present,
Discussions will be resumed to day Mr. MacDonald is staying and his return to London is inde
finite.
"I Will Carry On." (Reuters Special Service.)
LAUSANNE, July 1.
The principal negotiators con tonne their critical discussions be hind closed doors. Mr. Ranany MacDonald emerged at 30 p.m. for a breath of fresh air looking tired and serious. He remarked grimly “I shall carry on till a decision has been reached."
A DILEMMA FOR
"DRYS":
Japanese Instructions,
TOKYO, July 1 The Foreign Office has instructed the Consul at Changchun to inform the Manchukuo" that the Japanese plan for the settlement of the Cus tems question is final, for which reason she strongly urges its ac ceptance, as would be to the disad. cantage of the Manchukuo if it
refuses.
No News at Nanking.
NANKING, July 1. A Foreign Office spokesman. when hat the Chinese Government had interviewed by Reuter declared
not heard from Tokye regarding the above-mentioned plan. He said that the repart that the Chinese Governments accepting it it is without foundation.
Hope that Foreign Interests are not Impaired.
"CHINA'S TROUBLES
CANTON ASKED TO MEDIATE
|HIROYAH HEUTER'S AGENOV.]
NANKING, July 1.
THE Central Executive Commit tee has wired C.E.C. menbere Canton urging them to mediate between. Admirat Chen Cheh and General Chen Tang Tong for the welfare of the country at this time of national crisis.
MISSING RUSSIAN
"MYSTERY
REQUEST OF FRENCH
POLICE REJECTED
(TALOVUN REUTER'S MORNOY.]'.
CONSTERNATION OVER
LONDON, July 1.
SHANGHAI, July 1. REPEAL PLANK
REPLYING to a question on the THE French Municipal Police's Dairen Customs situation the application te exhume the TAROVON NEUTER'S AGENCY)
Lader-Secretary for Foreign body of Gladeih was rejected to- Affairs, Capt. R. A. Eden told the day by the Chinese Court. They CHICAGO. July 1.
House of Commons that the Gov. say that the original Chinese ver THE "drys" are consternated at
ernment expressed the hope to the diet regarding Gladkainfa death the Democrats Repeal plank, Japanese Government that they from a natural ease is still valid and some advocate running their would not countenance, any, depar and they are atil willing for an w candidate, and other boycotture from the 1807 Manchuria Cusautopay to be made, but it must be ting the Presidential election and
tons Agrsement, or Act in any by a Chinese expert, It is ex concentrating their efforts on the
way likely to impair foreign in-plained this is simply a matter of elertion of a dry majority in the
berests involved in the Customs principle, according to the Rendi Congress.
service, or complicate the solution tien Agreement. Meanwhile, the webs "
of the Manchurian dispute. are eole. brating all over the country, and hopes are expressed that the legali sution of light wines and beers may be passed by Congress in the nea
future.
The Democratic party is opposed to the immediate cash payment for soldiers' bonuses, and has rejected the proposal to endorse bi-metalsın.
Roosevelt Agrees.. Franklin D. Roomayeit, Governor of New York, and outstanding con- didate for the Democratic nomina- tion for the Presidency, has endora- ed the "Web" plank adopted by the Democrats' Convention.
A Futile Poll.
REGBY, June 30.
Thirdly, it will be changed to parades, the at twenty-five minutes past nine to-night that the Chan-three and half per cent. War Loun. cellor of the Exchequer, Mr. Neville Chamberlain made his dramatic announcement in the House of Commons.
Income Tax,
#1
CHICAGO, July 1. After night long speeching and Democrats settled down this morning to the main task of sleeling a presidential can- didate from nine names of whi Dividends will continue, as be-Franklin Roosevelt is the favourite, fore, to be paid without the pre- and Al Smith, angond favourite. Mr. Chamberlain said: Thevious deduction of income tax and
Others proposed are "Cactus Government intend to repay the the existing exemptions from the Jack Garner, ex Governor of loan in cash on, the first of Decem- Unitel Kingdom taxation in favour Virginia; Bird, Governor of Mary- ber next to any holder who has of the holders in the Dominions or land; Ritchie, ex-Missouri Senator; decided to apply, for repayment resident, outain, the United King James Reed, a Chicago bunker: within three months from to-day, dom will continue in force.
Nelvin T. Raylor, Governor of that is not later than September Holdera who wish to have their hom, and Alfalt Bill Murray. Ohio; White, Governor of Okla 13.
holdings continued are being in- vited to do so without delas and the first ballots
Nobody accured nomination in the scheme provides that all who col, which is 1031 short required Roosevelt pohled notify their assent to a continuance for a majority. not later than July 31 will be paid a cash bonus at the rate of £1 per £100 nominal of their stock.
·
Holders who wish to have their holdinga redeemed must notify their desire not later than Septem- ber 30.
"But holders in the loan "are, At the same time, invited to con- tinuo in the Joan on altered cou ditions and it is my coufident hope that the great mass of the holders will respond to this invitation."
The Treasury will, in accordance with the prospectus of January 11, 1917,
outstanding redeem the amounts of the loan at par on December 1, 1932. At the #ame time they lovite any holder of the stock or bonds who wishes to do Under a special provision which so to continuo his holding. In the f was embodied in an act of Pariia- loan after the redemption date, sub-mont last August, any holder who ject to certain modifications.
by September 30 has neither applied
T
Special Provizion,
The principal modificatione are for his holdings to be continued nor as follows:-
applied for redemption will be Firstly, the rate of interest will treated as if he had accepted the bo reduced as from December, 1832 | offer to have his holdings continued. to three and a half per cont. per These are broad outlines of this gigantic scheme the largest opera- Secondly, the loan will be redeem-tion of its kind ever undertaken able at the option of the Govern-in Great Britain or any other ment at any time after December country."
annum.
Smith 2014; Garner 901.
Olher first ballot results .ore:
Roosevelt has announced that he would insist that the session 200- tinue until a nomination is made...
SECOND BALLOTT
In the second ballot, Roosevelt polled 8778, Smith 1941 and Garner
00
AMERICA'S BUDGET DEFICIENCY
In Hong Kong To-Day
CLOUDY WITH RAIN LATER
"YESTERDAY'S WEATHER EEPORT, FORECAST AND REMARKS, ISSUED KY THE ROYAL OBSERVATORY AT 5.3" P.M. HTATED:-
THE TYPHOON 18 HITUATED TO THE WEST THE BALINTANG CHANNEL IT 18 MOVING VERY BLOWLY WNW.
LOCAL FORECAST :-LIGHT VAAI- ABLE WINDE, PROBABLY PREATENING FROM N. AND N.L. FAIR AT FIRST; CLOUDY WITH RAIN LATER.
TYPHOON WARNINGS. The following typhoon warn- ings have been received by the American Consulate General from the Manila Observatory:
(1) Manila, July 1, 3.10 p.m. Cyclone or typhoon over N.E. Chian Sea. moving W W.N.W.
or
(2) Manila, July 4, 3.10 p.m. Cyclone or typhoon E. of Balin- tang Channel, direction Un- knowi
or
Manila, July 1, 9.45 p.m.-- Cyclone or typhoon near over Bushi Channel, moving W.N.W. or NW.
AMERICAN TROOPS LEAVE SHANGHAI
[TYROVIH NEOTER'S AGENCY.]
{THROUGH REUTER'S AGENCY.].
WARRINGTON, July 1. PRESIDENT Hoover has signed
SHANGBAI. July, 1. the National Economy Bill. THE 31st Infantry embarked this saving $175,000,000. This leaves
evening on the transport: Re- 250,000,000 neoessary to balance the public which is sailing before dawn Budget.
tomorrow for Mandla
POLITICS
As Chiang Kai-shek is staying in Kuling, he is directly concerned with Communists; we will see what
be does.
» WHERE REDS RULE
The 8.5. Pabwn arrived here on. Wednesday from up river and re- Returned captives from "Soviet ported that she had been heavily territories state that their govern- fred on it No. 7 crossing which is mont is fully organised. There is about 150 miles from here, and one. a real Civil Government, and all of the Chinese passengers was shot the soldiers (even General Ho in the back. He was landed. ob Lung) have to obey t. The basis Chengling, but succumbed to his of the system is the division of the wounds. These shots were no doubt. land, and the fixation of salary, and fired by Communist, forces who have worktime according to age and sex, been seen in the neighbourhood.
*GRAIN RACE "
TRAGEDY
FINNISH BARQUE SINKS
TIENTSIN GODOWN
10
ON FIRE
FIRE-FIGHTERS
FIGHTING
FEVERISHLY
(TUROLGE REUTER'S AGENCY.)
TIENTSIN July 3.
¡THROUGH REUTER'S AGENCY.]
LONDON, July 1...... A Chiness official baa intimated THE famous Finnish four-masted, the export post-mortem examiner
barque Melbourne with a cargo will be a foreigner and the French of wheat from Australia tragically Municipal Council will be permit-ended the grain race" when she THE Makcazie Company's go ted to be present
sank after collision with the tanker down in the British Conces Seminole off Fastnet, Eleven Mel-sion, also its sheep wool washing bourne residents, including the plant is afire. The BM.C. Fire captain and the art and third Brigade is working feverishly to officers, were drowned,
prevent the fire froin spreading and reaching a large quantity of cotton ** which as stored at the other end of the godown.
The examination will take place on Monday or Tuesday, probably at the French Municipal Morgue, and the general public, will be admitted
Fresh complications are scort ay a result of this decision by the Chi uese authorities.
SWEDISH MATCH
COMPANY
DIRECTORS SEVERELY
Fifteen survivors are being taken in Queenstown aboard the Semi- nale, which is practically undan- aged.
OTTAWA
CONFERENCE
DINNER TO DELEGATES IN LONDON
(TUROUGH REUTER'S AGENCY.].
Damage is not ascertainable at this stage.
The French fire brigade has ruch- ed up to lend a hand.
Sunningdale, his country hone
On arrival he felt anwüll and Bir CRITICISED
Stanley Howett, H.M. the King'a doctor, motored from London to see (THROUGH REUTER'S AGENCY.]
him and ordered him to in
lay bed. STOCKHOLM, July 1.
Sir Stanley saw the Prince again TO-DAY'S meeting of the share-
to-day, but the Alness is not serious holders in the Swedish Match
and no bulletine will be issued at Ch. closed without the usual vote
LONDON, July 1. ..
nt the farewell though the Prince had to cancel hi IN his speech of thanks to the directore,
intention of attending the Canadian dianer in London to the Ottawa Dinnor to the Ottawa delegates to Bitter criticism of the board was delegates, H.R.H. Prince George, night. made, especially of the chairman speaking (on behalf of H.R.H. the Rydbeck, who is charged with Prince of Wales, whose condition is having hindered all the attempts improving) stated that it was of the by the board to gain a thorough utmost importance, that "far from COLONIAL TRADE POLICY knowledge of the company's posi-taking any steps that might dis
tion.
courage, foreign countries, we should! make every effort at Oltawa to put PROPOSALS FOR SUBMISSION; the heart of the world in concert)
TO OTTAWA with the casares. 30 that other countries may later cooperate.
"While recognising the difficul ties, we must not, allow misgivings to overwhelm us. Failure is un-
The Public Administrator's re- organisation programine wIK: DA- cepted,
The balance sheet which shows provisional lona of Kr. 25,590,000. Was adopted with the explicit re serve that it was only formal and did not represent the real posi-thinkable," Prince George conclud tion.
CHEN'S RESIGNATION
REJECTED
(THROUGH: NEUTER'S AGENCY.]
NANKING, July 1.
A GOVERNMENT moeting today rejected Chen Ming Shu's re- signation bet granted him three months in which to recuperate his health. It also appointed General Huang Shao Hsiung Minister for the Interior and Acting Minister of Communications.
ad.
43
Prince of Wales Indisposed. [DRITISH WIRELESS SERVICE]
(THROUGE REUTER'S AGENCY.}
LONDON, June 30. ASKED in the House of Commone to-day if the Government had formulated any definite Colonial Trade Policy for submission to the Ottawa Conference, the Under- Ruany, June 30, Becretary for Colonies; Sir Robent H.R.H. the Prince of Wales, is Hamilton, said that the Minister remaining in bed with a chill, ap for the Colonies had consulted with parently contracted yesterday at all Colonial Government represents Nottingham, where, in his capacity tives in Britain. As the result of As the Patron of the National these discussions a number of pro- Council of Social Service, he, paid posals had already been submitted a number of visits to various social to Colonial Empire and Dominion welfaro destres.
Governments who had been invited The Prince flew last night from to state what adjustments of Co Nottingham to Fort Belvedere lonial Customs tariffs would be of
(Continued un next column.)
ral value to them.