A high power-weight ratio enables the smooth.
12 h.p. engine, developing 44 h.p. at 4000 r.p.m.,
to provide 70 m.p.h. and vivid acceleration. Ali seating is within the wheelbase, and the front sents have tubular frames.
FAR EAST MOTORS
THE FAR EAST AVIATION COMPANY, LIMITED. 26, Nathan Rd, Kowloon. Telephone_60101,
Boat, Ltd. Hongkong
The
FIRST EDITION
FOUNDED 1001
三拜禮 號七廿月四英港香。
APRIL WEDNESDAY,
27, 1938.
Hongkong Telegraph.
No. 15002
SINGLE COPY 10 CENTS
$36.00 PER ANNUM
The Worlds
Master Tyre
SIMON'S BUDGET SHOCKS BRITAIN
HEAVY INCREASE IN INCOME TAX GRIM SURPRISE
Government Facing Deficit In
Spite of
of Stiff
Stiff Levies: Tea Duty Danger to Popularity
Sir John Simon, Chancellor of the Exchequer, had a painful surprise for the country yesterday afternoon, when he announced, in the course of his initial budget speech to the House of Commons, that in order to meet the increased expenditure for 1938-9, there The news came as would be an increase of sixpence in income tax. a shock, as it had previously been foreshadowed that no income tax increase would be necessary.
Another burden on the British taxpayer which will be keenly felt is an additional twopence tax on every pound of Empire or foreign tea.
There is an increase in excise duty on power alcohol, and many other methods of indirect taxation were in- dicated by the Chancellor, including income tax adjust- ments regarding estates, profits from stock in trade, and cashing coupons.
Estimated expenditure for the ensuing year totals £944,398,000, and estimated revenue is £914,400,000, and estimated deficit of £29,998,000,
BLOW AFTER BLOW
London, April 26.
Sir John Simon introduced his first budget to a crowded House of Commons to-day, when he announced that income tax Olf and tea would be increased by sixpence to 5/6d, in the £. uties are also increased, and he revealed that new taxation in- luded an excise duty of ninepence per gallon on power alcohol. Sir John said that revenue totalled £872,500,000, and the total expenditure from reyenue last year was £843,000,000.
was £258,000,000 The net increase in the national debt
nominal, of which £208,000,000 was covered by assets.
The estimated total expenditure for
1938-0 was £944,398,000.
Sufficient wheat, whale oil and sugar had been secured to cover the needs of the civil population in the early months of an emergency.
The Chancellor of the Exchequer foreshadowed tax avoidance measures which might operate retroactively. He indicated that there would be in- come tax adjustments in respect to estate administered by executors for
"War Guilt" Countries Designated
a life tenant, adjustments affecting Japan And Italy Named
cashing coupons,
"anu, tightening of
the law relating to profits from the
suic
of stock in trade.
Other unspecified measures related The State
to company reorganisation, death letter from
By U.S.
12 Dead In
India Riots During
Week
Bombay, Apr. 20. Casualties for the past week
In the communal riota in India, amount to 12 dead and 100 in- jured,
Over 2,000 people have been arrested-Reuter Bulletin,
ULSTER APPROVES ACCORD
Lord Craigavon Optimistic Of Results
Belfast, Apr. 26. Lord Craigavon in a speech in the North Ireland House of Commons to-day, welcomed the Washington, Apr. 26.
Agreement. Department, through a Anglo-Irish
He
Panting Armies Rest on Shantung Front
CHECKED JAPAN'S DRIVE
Here are a few of General Sun Lien-cheung's thousands who have checked the Japanese drive near Taierchwang. These troops have covered themselves with glory. Here they are doubling into advanced positions in answer to an alarm. Although they have suffered very severe casualties the morale of these young soldiers is said to be unimpaired-Photonews.
by air mail.
STATE OF BRITISH AIRCRAFT INDUSTRY BRINGS QUESTIONS
London, Apr. 26.
The deep national interest in the position of the British aeroplane industry was reflected in the House of Commons to-day when Lord Winterton, Chancellor of the Duchy of Lancaster, replied to a lengthy private notice question by Mr. F. Montague, Labour."
Lord Winterton explained that a party of experts was now visiting the United States and Canada solely for exploratory inquiries. The party would investigate whether types of aircraft which might be suitable R.A.F. purposes were capable of early delivery. The party would also examine the capacities and potentialities of production of aircraft in Canada.
the
the
rew
The Investigation was part of the review of defences referred to by the Premier on March 14. Since the Government had decided that cir- cumstances made it necessary to extend and accelerate the programme of air expansion, a comprehensive review had been made of maximum production possible in Britain. It was the intention and determination of the Government that ail British firms suitable for the production of aircraft for quirements of the extended program- me should be in a position to give the maximum output possible during
orders for production 'on' + large scale had been placed, and further orders were necessary without delay. LABOUR BENEFITS Lord Winterton added that the scale on which orders bad been Sir John estimated that revenue, on
lo, secure existing basis, would be £914-ion on the resolution of Representa-province would receive financial placed made it possible
greate and Increased production 400,000, leaving £29,998,000 to be tive Byron Scott, a member of the benefits.
with additional labour. A House, asking the President to specify He gave an instance that Ulster In reply to further questions. what nations in recent years had goods would receive first consideration Lord Winterton said his answer duties implied that considerable expansion violated treaties to which they and when modifications of Eire
were the United States were signatories.
Where plans had already been laid before Mr.Sumner Welles' reply was agricultural subsidies were granted to the House. He Indicated that at
I restated the North Ireland, corresponding similar comparatively early date, a further studiously mild. United States Government's disap-subsidies would be made to Britain, statement would be made, detaliing proval of Japan's action in China and the cost to be borne by the United the Government's present objective Italy's action in Abyssinia.-Reuter. [Kingdom.
in first-line aircraft,
Mr. Clement Attlee, Labour,
pengiduties and investments in the sink- the Foreign. Summer Welles tojsaid, that taking the long view the next two years. The bulk of the
penics.
that
Affairs Committee of the Ulster would greatly benefit. ing fund business of insurance com- House of Representatives, implied
He announced that agreement had belleved Italy and Japan had it
on agricultural sub- violated international treaties in their been reached
aldies, re-ormament work, unemploy- operations in Abyssinia and China.
The letter was sent in response to ment insurance and assistance
found.
£29,998,000 Deficît
The estimated expenditure, which was £18,500,000 more than last year's estimate, did not include a substantial amount for supplementary defence.
The income tax was to be increased by alxpence to 5/8d, but 2,000,000 of (Continued on Page 4.)
JAPANESE BOMBER
SHOT DOWN
A lone Japanese houvy bomber
was "shot, down, in the "vicinity of
Ex-
a request for the Department's opin-penditure, coal prices, and that the
HALIFAX Sees avenOL
London, Apr. 20.
being considered.
*
Franco-Italian Talks Not In Real. Danger
Paris, Apr. 26. M. Georges Blondel, French Charge d'Afaires in Rome, returned to Paris to-day 10 report to M. Georges Bonnet on the progress of the Franco- Italian negotiations.
Well-informed olrofes" believe *that alibongh certain difficulties have arisen they are not "of a nature to prejudice the favour- able trend of the negotiations which will be resumed when Count Clano returns from Irana,
EPIC OF VANISHED REGIMENT TOLD IN CHINESE QUARTERS
1,000 Men Died to Hold Advance Position: Gave No Quarter, Wanted None
(Special to "Telegraph")
Hsuchow, Apr. 27.
Japanese and Chinese soldiers, like punch-drunk fighters, fell back into their corners yesterday, rested and waited for the final gong in the Lunghai railway battle. As if he were only feinting, General Sun Lien- chung stopped his hammer-drive in the Taierchwang sector, where there is now only sporadic fighting as the Japanese attempt to emerge from the north mountains.“ The vanguard was promptly knocked on the head by General Sun and beaten back.
Yesterday a Chinese soldier staggered into the American Presbyterian Mission Hospital and told how missionaries at Tenghsien, a Tientsin-Pukow railway city under. Japanese occupation, had saved his life. He claimed he had been roped together with eighteen Chinese soldiers and all of them had been bayoneted. By some accident, the bayonet passed through his upper chest and his back without touching a vital part. He was left to die on the ground but later crawled to the Catholic hospital where he was treated. Finally, he escaped to Hsuchow and is now undergoing treatment.
Another Arab]
Murdered In
Jerusalem
Jerusalem, Apr. 26. The father of two Arab polloc- men was murdered by unidenų- Bed assassins yesterday, while an Arab, believed to be a police Informer, was shot seriously
A letter brought through the lines from Tenghsien claims three shells fell in the Presbyterian Mission com- pound from the direction of the railway station where Japanese guns were set up. The missionaries pro- fested, but the Japanese refused to accept responsibility.
The focal point of what may be another "knock down and drag out" battle seems to be at Peihsien, south- east of Talerchwung, and north-east of the Grand Canal, and about 15 miles north of the Lunghai railway. The Japanese and Chinese should meet in heavy contact about 25 miles east of Hauchow, too.
woanded this afternoonoudy Story Of Heroism
HITLER TAKING RETINUE TO ROME
Hundred Journalists Among Big Party On Special Train
Berlin, April 26.
A group of German news-
where he is attendfor the papermen, numbering about 100,
wedding of King Zor of Albania, --Reuter Bulletin.
who will accompany Herr Adolf Hitler on his visit to Signor Benito Mussolini, will wear a
special uniform of slate blue
Since April 1, 1030, the British intimated that he would take an INSURGENTS Jackets, breeches and top boots
Defence Ministries had placed orders early: opportunity, of raising the Viscount Halifax, Foreign Secre-exceeding £5,000,000 with North Whole question of air, production:~~ tary, had a long conversation at the Ireland, and there was reazon to hope Reuter Special. Foreign Office with M. Joseph Avenol, for further substantial ro-armament Secretary-General of the League of orders, and the North Ireland Govern
1
Nailons, regarding recognition of the ment would press for the establish NO DEFENCE OF
Italian conquest of Abyssinia,
ment of a Government factory in:
M: Avenol remained to lunch with North Ireland. Reuter Special,
the Foreign Minister-Reuter Bulle-
tin.
U.S. A
ARMY RESERVES
yesterday - afternoon by TO BE FORMED AGAIN
machines.
the Japanese bomber
BORAN ATTACKS US NAVY BILL
JAPAN CURRENCY ASKED PLANNED
London, Apr, 201
· Replying to Me David (Laby In the House of Com Washington, Apr. 20.)
dny, Llént-Collis D Senator:
williant Borah: to-day] "Triincial Secrtár).
•ked the NaV#}}}]
uthorised which might havi jum
CAPTURE SEAPORTS
Fleet Assists In Operations
Burgos, Apr:? quadron of the
Goet, Cedarat.
in the day time, and trousers for evening receptions.
The jackets bear the inilala R.K:K., of the Reich Chamber of Culture..
Herr Hitler will attend May Day celebrations in Berlin on Sunday. On Monday evening he will board a
From General Tarig En-po's head- quarters in the Pelhalen sector comes a vivid reminder that the Chinese are still determined to win or die. It is officially known that 1,000 men were killed at Licnfangshan, north of Pelhalen, waiting for reinforcements which arrived too late. General Kwang Ling-chen, the 52nd Army ordered Commander, on April 20 this regiment to hold on for two days
more.
But just at this Juncture, the Japanese throw a heavy brigade (Continued on Page 4)
STOP PRESS
EGYPTIAN CABINET RESIGNS
Cairo, Apr. 26...
specially appointed train for Rome The Egyptian Government has where he is: quo at 8.30 pm on relined and the King has dited Mahmoud Pasha to form
Tuesday
Heswill be accompanied
ing, Ministers and skivlæery, including a new Cabinet Reuter Herr Joachim von Ribbentrop th
Hatch procs phlet, Dr. Dietrich, and several high army cancers, includin