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The
FINAL EDITION
Court
Hongkong Telegraph.
FOUNDED 1601 三拜禮 號九十月正英港香WEDNESDAY, JANUARY 19, 1938.日八十月二十
No. 15410
JAPAN'S Y200,000,000
ENORMOUS
WAR
CALL Chiang Kai-Shek's
ON COUNTRY'S
FINANCES
Method For Raising
Revenue
Revealed
Tokyo, Jan. 19.
An increase in revenue of Y200,000,000 to finance the China war, through higher taxation, both direct and indirect entegories, are being planned by the Japanese Ministry of Finance, where efforts are being speeded to draft the necessary measures for presentation to the Diet, soon after, its resumption on January 22.
Approximately Y100,000,000 will be raised in additlun by extending the "North China Incident" taxes. The Y208,000,000 increase has been pro- vided for muinly by an increase in the individual income and national) taxes, a revival of the transit taxes impositions on new built homes and an extension of the new special Prticles tax.
HISTORY
OF ORIENT PEACE
Appropriations for the "China PARLEYS
Incident" will be asked from the Dict in the form of extraordinary inilitary accounts. The budget is likely to exceed Y4,000,000,000.
Negotiations are still progressing between the Finance, War and Navy Ministers. The latter, In view of China's announced determination not)
Japan Grateful
To Germany
Tokyo, Jun. 19. The Foreign Offee, simultaneously
"BINGLE COPY 10 CENTS $36.00 PER ANNUM
TAXATION
Resignation Denied
This is recent picture from Peiping, showing members of the newly-formed women's police force arch. ing a couple in their ricksha at the Kuan Gate, where Chingie and Japanese fought a sanguinary battle in
the early days of the hostilition.
Humidity, Temperature Still High
to sue for peace is alleged to have with Berlin, has released an oral MORE DRIZZLE AND decided to ask for sufficient appro- stalement detailing the peace talks | priations to avold the necessity through the good offices of the Ger-
extraordinary
In the Bear
of calling pnother session of the Diet future. HOW MONEY WILL BE RAISED
The higher taxes will remain in force for a period of one year after the termination of the Sino-Japanese hostilities.
man Government.
LIGHT RAIN
Further drizzly weather and
AUTHORITATIVE
STATEMENT
TO "TELEGRAPH”
Generalissimo Not To Quit His Post
RUMOURS SCOTCHED.
A high official source close to Generalissimo Chiang Kai-shek made an important and exclusive statement to the Telegraph this morning regarding certain rumours affecting the Generalissimo.
Since the arrival of Madame Chiang Kai-shek in this Colony rumours have persistently surrounded her visit with an aura of mystery and suspicion, despite the
BIGGER BRITISH FAR distinguished visitor's statement to the Press, saying she
EAST FLEET LIKELY
SAYS NEWSPAPER
was here for health reasons.
A definite and categorical denial of these and other rumours was given the Telegraph this morning.
The statement said that in last light rain in predicted in Hong- But Singapore Garrison May M
| autumn" "Japan fofurnied—foreign diplomats in Tokyo that in the event of
China sincerely approaching the Japan for a happy solution ineldent which caused the present Shostilities, Japan was willing to
listen.
German Dirksen, com-
Japan
kong for the next 24-hours-
Hongkong's temperature,
The official weather, report, issued 10 a.m. by the Royal Observatory, states: Moderate to fresh easterly and north-easterly winds; cloudy: occasional drizzle or light rain."
which An outline of the tax programme
varled only one degree on Monday, given in the Chupai Shoggo, the load- In December, the
Am-hus atlil remained ateady, the varia- ing Tokyo financial paper is as bassador, Herr von
tion between maximum of 65 degrees follows: firstly, income taxes will be municated that China desired to talk and minimum during the 24 hours increased by a minimum of 20 per of peace and tendered his good offices being only four degrees. cent. to realise between Y110,000,000 in this connection, to which
Humidity fell only slightly, und 84 and Y120,000,000 additional revenue. happily agreed. Thereafter Japan per cent. was recorded at 10 o'clock Secondly, there will be an amplifi-submitted some of the conditions for this morning. cation of the provisional tax on pront peace through Herr von Dirksen, on business and industries directly Japan considered these conditions connected with the hostilities. Third-most appropriate to the establishment ly, there will be an extension of the of peace in the Orient, and that they "North China Incident" special also constituted the National Govern- articles tax on ten selected articles, ment's last chance. At the present rate this tax is expected
realise Y30,000,000. Fourthly, there will be an extension the magnanimity
NATIONALISATION. IN JAPAN TO
+
1
Be Increased
"The official 'view in Landòn seems to be that the present China Squadron will be largely reinforced only if circumstances necessitate, and permit, the despatch to Singapore of a fleet capable of defeating the whole naval power of any possible enemy in the Orient.
"A necessary condition would be reconciliation between Britain and Italy or, in its absence, of Admiralty, confidence in the ability of the French Fleet to maintain the status quo in the Mediterranean and North Sea."
"The National Government Ignored MEET WAR DEMANDSficance to Hongkong.
shown by the
of the term "North China Incident Japanese Imperial Government and Tax," insofar as it does not affect in- also the friendly gesture of the Ger- come taxes, and also of the "North man Government and failed to sub- China Incident Special Artleler
which is expected to realise mit any reply with sincerity."
15. PERISH IN SCHOOL
BLAZE
There is no political, reason whatever attached to the visit to Hongkong of Madame Chiang Kai-shek, it was reiterated.
Rumours that Generalissimo was negotiat- ing peace terms were, the Telegraph was officially inform ed, as equally unfounded as a rumour that he intended quit his high post.
Chinese Massing At Chiang Kai-shok Massing At Tenghsien
BIG ENCOUNTER IMMINENT
to
"It is emphatically stated, once and for all, that Generalis- simo Chiang Kai-shek will re- main at his high post," the Chengelow, Jan. 19.
Telegraph was informed... Chinese forces on the northern"'
but "China desires peace, sector of the Tientsin-Pukow railway In Shantung are being massed at there can be no question of Tenghslen. 41 kilometres south of negotiation, either directly with Tsowhalen, the birthplace of the Japan or through other Powers, Chinese sage Mencius, according to a which would entail a surrender military message.
by China of any of her sovereign An imminent encounter is expected rights. between these Chinese units and 3,000 Japanese troops from Tsowhalen which are supported by over 20 fold ploces,
An article by the London Corres- pondent of the Straits Times, publish- ed on January 11, contains this and several simillar statements of signi- states that The correspondent Britain has hesitated to strengthen Tokyo, Jan. 19. both naval and military forces in After receiving pledges from the Far East only because it was
The Japanese troops which retired Japanese politicians of their co-impossible to spare extra forces from
from Tsining on the right Bank of the operation, Prince Konoye, Japan's elsewhere, and to have moved any
railway are reported to have been In the circumstances Japan was Prime Minister, on Thursday will Eastwards would have added greatly
St. Hyacinthe, Que., Jan. 19. massed around Yenchow to prevent obliged, as announced in the Imperial | convene an emergency session of to
tension.
Fifteen are known to be dead anda danking movement on the part of further dealings with the National Uonal support for Japan's programme
Many rumours are flooding London, a dozen are missing, though this the Chinese.
figure, it is feared may be 30 in a blɛon the southern sector of the All phases of national life will be the correspondent adds.
townsfolk The most popular of the many re-boarding school fire here.
Tientsin-Pukow Railway a small unit The statement added that despite more jointly organised, including the ports in circulation there suggests Church bells roused the auch clrcumstances, Japan feels deep nationalisation
of Japanese troops stealthily crossed bysterical boys who of industries, and that a battle fleet will be based on
were the Mingkwang River push north- Otherwise a revival of old taxes gratitude for the good offees of the probably intensified munitions and Singapore early in 1941-immediately trapped were watched by one hun-ward on January 17, a belated report and the creation of new taxes in German Government and also for the air craft production.
the five new battleships of the King dred others, helpless to aid.
Some states. They were discovered and friendly efforts of the German Am- Some of the vernacular papers| principle will be confined to a mini-bassadors in Tokyo and China.predict Cabinet changes the naiura George V class are commissioned, to of them Escaped by leaping from routed by the Chinese forces on the
United PrCHE.
of which are not mentioned, but preserve the favourable balance of windows and scrambling down are northern, bank-Central News.
the saki; sugar, and Conference statement, to discontinue prefectural Governors to rally na-pras FLOODING LONDON
000. Fifthly there will be an in- crease in garolene taxes realising Y00,070,000. Sixthly, a revival of the transit tax (a on the purchase of railway tickets) will realise Y30,000,000,
tax
-mtam.
to Y1,000.
Lax
on
Government.
KAWAGOE DEPARTURE
United Press,
in China.
power
and
100
in
the escapes
Brillah navai which will possibly invoke a reduc- Mediterranean. tion in the number of Ministries, Export naval opinion is, however, thus increasing centralised control
Inclined to decry this report, on the United PreER
ground that the Admiralty will never run the risk of another Coronel by
tour
though many fell storeys to the ley ground. Nuns from a nearby convent were soling the bereaved parents, the thermometer was below zero.
It is belleved that the fire started
con- while
Mongol Regiments Surrender
Linfen, Jan. 19, General Yen `Hisl-shan, Pacifcallon
yuan, has wired, to the National. Government, recommending commén- datlon and reward for two regiments of Mongol irregulara which recently surrendefed to the Chinese govern- ment.
Commissioner for Shansi and Sul-
Seventhly, the newspaper states, land capital, interest and business
UNCERTAIN profit taxes are unlikely to be in- creased, but a decision has not yet
Shanghai, Jan. 19. been reached regarding a capital of "Juridical persona". A Japanese Embassy spokesman Eighthly, the present, Y1,200 exemp-said it was not known when Mr. Mr. Mosa of the Kowloon Fire sending East a force which, however in one of the dormitories, the cause tion for the assessment of first class Kawagoc, the Japanese Ambassador Brigade, has reported to police to well found in itself, would have little being so far unknown.-United Press. income tax. will probably be reduced to China, was departing, since he had the effect that his car was missing or no chance against the overwhel
numerous official calla to make. from Saigon Street, after he had ming odds which could be marshalled
parked there yesterday evening.
against it.
"More worthy of credence, 1 Informed, is the report that the Singapore garrison may soon be re-
According to General Yen, the two inforced to brigade strength of four
London, Jan. 18,
regiments, stationed at Fengchen and battalions and that the establish
Wage changes in 1637 are estimated Chining in-cast Sulyuan revolted ment may in the not too distant future by the Ministry of Labour to have against the Japanese and fought their be increased to two or even, three resulted in total net increases of about way from Sulyan to Shamal to sur brigades.
£700,000 in the weekly full-timo render to the Shansi authorities and #This
suggestion is being stren wages of mora than ously denied by those whose business workare. The average weekly in Government-Central News
8,100,000 pledge their support to the National it is to do so, but the plain fact is-
This eighth measure is likely to be postponed as enforcement would probably realise no more than Y3,-
000,000 at the cost of widespread Bombing Of New Hongkong-
social affects.
As soon as the drafting of the tax programme has been completed by the Ministry of Finance the project will be transferred for further study to a Taxation System Inquiry Com- mission, and only after the approval; of this commissión will it 'be present- ed to the Diet-Neuter,
BOURSE CANNOT
+
Canton Highway Not Likely To Be A Success
BRITISH WORKERS
ant
་
EARN MORE
um fold by a friend very closely increase is more than three shillings touch with the authorities that both por head-British Wireless, the Singapore and Hongkong garri-
.
"Far from negotiating a secret Generalíssimo Chiang peace, Khi-shek and the Supreme War Council organised last week de-
(Continued on Page 4.)
STOP PRESS
Mme. Sun Yat-Sen To Attend Peace Talks Canton, Jan. 19. cessful than the attempts on the would have been substantially General of the R.A.F, arrives at The news that the Japanese Intend railways, which have always been strengthened within the past few Hongkong this week to inspect the
Hankow, Jan, 19. to bomb the newly-opened Canton-repaired a few hours later.
The Chinese People's Foreign Hongkong highway, and that foreign-
decided to Several car loads of foreigners, in months had it been possible (1) to
He is expected in a flying boat of Affairs Association has
nak Madame Sun Yat-sen, and Dr. from their urgent dutles elsewhere must notify the Japanese before cluding women, anticipated making have spared the necessary battalions Royal Air Force bases here.
of the DEAL IN GOLD making the trip, is not surprising the trip during the week-end, but it or (2) to have moved them award No. 205 Squadron.
Shameen residents, who realise that is: now, understood there have been without adding too greatly, to the for General in 1937. after luiding Academia Sinică, lo attend the con
Bir Edward was appointed Inspec- Teak Yuan-pel, Director ***** the journay, is bound to be fraught | cancelled, li pran
existing tension.!! maga Istanbul, Jan. 10. with danger.
Several highway, together with
RAF, INSPECTOR GENERAL several other Imperiant appoint-ference of the international: Ponço Movement scheduled to be held in The Government has-notified the In fact the road can be bornbed wooden bridges north of wanatung Born that from now on it will not several times without oikeable and beste bed bedpans DUE IN HONGKONG HO was Principat Air aldo-de-camp Geneva on February 11 on behalf of ser
mit den linguis on the gold ex= |arect, and it is the general
WAR VET SAMAsthall of the Boral-Air-Toros to the labe King George V for four
tered that sich bombinE LAT
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