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FIRST EDITION The
Hongkong Telegraph
FOUNDED 1301
No. 15011
SEPTEMBER 四拜聼 號八廿月儿英港香 THURSDAY,
SINGLE COPY 10 CENTEN
28. 1939. AXTЯ6.00 PER ANNUM
IN SOFT KID
Smart shapes and beautiful new shades
from $19.50 ea.
plours Wine, Brick, Navy, Black, Brown, Greengage
WHITEAWAY'S
Income Tax 7s. 6d. in £; 60 Per Cent. Excess Profit Tax; Capital Levy May Be Introduced: War To Be Financed
Be Financed By Direct Taxation of People COLOSSAL TAXATION ANNOUNCED IN BRITAIN'S FIRST WAR BUDGET
REPRESENTING THE MOST STAGGERING BURDEN OF
SIR JOHN SIMON'S WAR EMERGENCY BUDGET, INTRODUCED IN
|
TAXATION EVER UNDERTAKEN BY A FREE NATION IN HISTORY: £938,000,000 MUST STILL GALLANT POLISH THE HOUSE OF COMMONS LAST NIGHT, PROPOSES STUPENDOUS COME FROM BORROWING FIGHT AT END
INCREASES.
INCOME TAX IS TO BE INCREASED FROM 55, 6D. TO 7S. 6D. IN THE £ STERLING.
AN ADDITIONAL SURTAX, RANGING FROM 1S. 3D. ON IN- COMES OF £2,000 TO 9S. 6D. ON INCOMES OF £30,000 AND OVER, WILL BE IMPOSED;
Duty on estates of between £10,000 and £50,000 will be increased by ten per cent., and on estates of over £50,000 by 25 per cent. BEERS AND SPIRITS
LONDON, Sept. 27 (Reuter).The main figuros of the budget make the revised estimated expenditure for the current year up to £1.933,000,000.
The revised estimate of revenue, including £107,000,000 from new taxation amounts to £995,000,000, and this leaves £938,000,000 to be met by barrowing, of which £500.000,000 is already authorised to be met from dofence loans mancy. Effective resolutions giving legislative force to the proposals were agreed unanimously within 100 minutes of the budget speech, and the general debate thon opened.
Warsaw Completely Wrecked, Capitulates To Nazi Forces
SPECIAL TO THE "TELEGRAPH"
Excise duty on Beer will be increased by one penny. Duty on spirits Exaggerated Reports from Berlin ONCE PROUD CAPITAL OF A NATION OF
will total 13s. 9d. a bottle.
Duty on sugar will be increased by one penny per lb.
An increase of 2s. per b. will be imposed on tobacco.
In addition, trade and industry will have to bear an all-round excess profit
tax of 60 per cent,
LEVY ON CAPITAL?
NAZI CLAIMS IN N. SEA ACTION
SPECIAL TO THE "TELEGRAPH"
LONDON, SEPT. 28 (UP). — WARSAW,
|34,000,000 PEOPLE, HAS UNCONDITIONALLY CAPITULATED AFTER ONE OF THE GREAT- EST AND MOST HEROIC RESISTANCES TO SIEGE THE WORLD HAS EVER KNOWN.
A radio broadcast from the city states that it is completely wrecked. Hardly a building remains standing in an area which once held 1,300,000 people." GIANT INFERNOS
During his outline, Six John Simon warned that the Government might be NEW YORK, Sept. 28 (UP). The story of the forced to apply a levy on capital.
Even with the next taxation, revenue will fall far short of war time expendi-North Sea engagement between British warships and ture, and several forms of loans are to be made available to the public.
German aircraft, at first denied in London, is slowly
being patched together,
Giant fires are raging everywhere, and, because the An official German communi-water supplies have been destroyed by Nazi bombs and` que claims that a 1,100 bomb, shells, there is no method of controlling the infernos.
Estimated expenditure up to March this year will be $2,000,000,000, which is only £696,221,000 short of the record Great War expenditure in 1917-18, despite the fact that the Empire will only have been at war for seven months.
HIGHEST IN HISTORY
RICH AND POOR
TO PAY
effort.
Income-tax of 7s. 6d. in the
The new income tax is the highest in the nation's
history.
The Budget proposes to raise about 51 per cent. of expenditure by taxation, which is almost double the proportion raised during the Great War.
SOVIET FREIGHTER TORPEDOED
Serious Affair In Baltic Sea
The crux of the Budget was Sir John Simon's state-
SPECIAL TO THE "TELEGRAPH" MOSCOW, Sept. 27 (UP).— ment that financing other than by taxation or loans The Moscow radio station an- from genuine savings must be inflation. Britain, he nounces that the Soviet freighter declared, intends to avoid this by financial efforts.
OPPOSITION SUPPORT
unprecedented
Mettalish has been sunk near Narva Bay, off the Estonian coast, by an unidentified sub- marine.
The report said 19 of the
that five are missing.
probably the biggest bomb eveři
ised in warfare, scored a direct
hit on a British aircraft carrier.
The radio announcer described the city as an
The communique claims that two inferno upon earth.”
5501b, bombs struck a British battle- Warsaw officially capitulated at 11.30 a.m. (6.30 p.m.
H.K.T.)-after-being-besieged for 21 days.
ship, one exploding fore and the -other-aft.-
"It is unnecessary to elaborate
on
the effect of these very heavy bombs," RAIN OF DEATH
the communique adds, -
The communique claims that alli German ivernft returned safely to their bases.
•
:
During that time, it is computed that 20,000 bombs' and 100,000 shells were rain- Exaggerated The German claims appear to be ed upon the city.
definitely exaggerated.
been
WESTERN FRONT Saarbruecken Evacuated
The formal surrender of the The action is now confirmed by city to the German High Com- the British Admiralty, which mand will be made on Friday. reiterates, however, that no direct
The surrender includes 100,- hits were scored by the German
000 troops, all of whom will lay ralders. Опо German Nylng-boat was down their arms.
24-Hour Armistice second Was brought down. The
A 24-hour urmistice has sccend machine fell into the sea agreed upon in order to permit the ts crew of four were rescued by "etly to attempt to quell the great firea
PARIS, Sept. 27 (Router).— British destroyer.
that are raging.
The Germans have completely In addition, Warsaw has thousands evacuated Saarbruecken. of dead civilians and soldiers still not
The French are seriously threaten- buried, owing chiefly to the lack of Ing the city, which is under C90- burial grounds and insufflelency of tinuous artillery fre. labour for digging the large trenches Saarbruecken has been evacuated that are being turned into common because French artillery and machine aves. All the city's parks have gun fire became so heavy that the Deen converted into graveyards. Germans were unable to hold the
Peoplo Starving
town. They are now trying to loosen
Diplomatic ciréles characterise the British ship.
LONDON, Sept. 27 (Reu- ter)Sir John Simon's drastic Budget, affecting rich and poor alike, has The Opposition, whilst reserving the right to freighter's crew were saved, and urged by anti-aircraft fire and a caused an enormous im-criticise çertain points, will support the Budget. pression throughout "Severe as the Budget is, it does not bring us even
"Sorious Development"
The British flotilla consisted of a This event coincided with the Britain, regarded as the within the remote range of the limits of our financial arrival of the Estonian Mission to squadron of battleships, in aircraft attendant cruisera and Moscow to explain the activity of carrier, best possible proof of the strength, or the sacrifices which the people will accept alleged Polish submarines in Soviet destroyers. country's determination to as they become necessary as a means to victory," declared and Estonian waters,
There was no loss of life un any earry out a supreme war Sir Archibald Sinclair, leader of the Liberal Party. Incident as a serious development.
A sccont German official com- munique described the North Sea engagement, which was audible from the Norweglan coast, as the first time in history that a clash. The surrender of the Polish capital the grip with which the French are between aircraft and warships of was announced over Zeesen Radlo at partly encircling it, Germany and Britain has occurred Berlin Radio's orchestra immediately bach, the Germans are showing un-
6.10 p.m. (5.10 am, H.KT.). Tho
Between Zwelbrucken and Horn-
afterwards struck up. "Deutschland easiness owing to the French hold on Allegation Withdrawn
Ueber Alles" and the "Horst Wessel". the Ohrenthal sallent which protrudes The second Nazi communique withdraws the earlier allegation that every family of whom has suffered dominating the Hornbach stream.
Half a million starving civilians, into German territory, its ridges the aircraft carrier had been sunk, bereavement, remain in Warsaw,
German guns have been pounding. "The vessel, however, was dumng-
in vital spots and was reduced to be desperate.
The food situation is believed to the salient for several days. wreck," the communique claims.
Naxi Lines Wiped Out, Armistico At Noon
PARIS, Sept. 27 (Reator)Many report states that an annistice has Siegfried Line have been wiped out WARSAW, Sept. 27 (Reuter)-A Important German positions in the been agreed upon since noon to-day, by French artillery fire. It is sloted
PLEASE Turn To Pago 2,
PLEASE. Turn To Pago 2.
£
" is the highest since the War Emergency Budget:
tax was introduced
in 1798. It compares with
1s. 3d. at the start of the
last war and the previous Simon's Speech in Full
highest figure of six shil- lings.
the
Roscue By Patrol Ships MOSCOW, Sept. 27, (Reuter).- The Soviet ateamer Matallish was sunk by a submarine this evening. Nineteen of the crew of 24 wore rescued by Soviet patrol ships,
The Metallish was attacked in Narva Bay off Esthenia according to "Havas."
After a search Insting one and a
on the High Deản
Germany is elated at the report,
Berila newspapers.
which is upished in heavy type in
The newspapers draw attention to
Further Statement
EMPIRE MENACED, SAYS AUSTRALIAN PREMIER
LONDON, Sept. 27 (Reuter).-Substantial all-round
Danish Ship Searched Copenhagen, Sept. 27 (Reutered The budget as a whole, writes increases in direct and indirect taxation, including Danish coastal steamer bound for
"Reuter's" city editor, re-
Copenhagen was stopped and search-. presents undoubtedly
raising of the income-tax level to 7s. 6d. in the £, and ed by a German torpedo boat just heaviest burden ever under large increases in so-called luxury articles, were outside Danish water to-day, taken by a free nation in announced by Sir John Simon, Chancellor of the half hours the vessel was released. the fact that Britain started the war history.
with seven aircraft carriers in com- The budget proposes to raise Exchequer when he introduced, the war
Submarino Off U.S. Coast
mission. about 61 per cent, of the ex-budget in the House of Commons this afternoon. New Marine Corporation reports fence," one newspaper exults.
emergency SPECIAL TO THE TELEGRAPH
The loss of two must be consider- penditure by taxation, which
New York, Sept. 27 (UP)--The ed a vital matter for Britain's de is almost double the Great At the outset, Sir John Simonture on defence lund grown to a total inving intercepted a message from War's proportion, which
aald that when he Introduced of £730,000,000, and the amount to the American tank Steamer Japan the budget at the end of April be borrowed at that time came to Arrow maying that she had sighted LONDON, Sept. 27 (Router)~~A. instance from 1915 to 1916 he estimated the expenditurn something like £480,000,000.
an unidentified submarine at 2 pan., further announcement was made in was 22 per cent.
Total expenditure when Parliament E.S.T., off Ocean Cliy, Maryland. Londen late to-night in connection The crux of the budget was Sir for the year would amount to rose in August was £1,453,000,000, Upon sighting the tanker, the sub with the unsuccessful Nazl air attack of which £302,000,000 was to be bor- marine submerged and headed off on a British squadron in the North John Simon's statement that £1,322,000,000.
The defence expenditure included)
rowed. financing other than by taxa-
Sea. In that vast tolat was at that time.
Peace Time Effort tion or loans from genuine stated a £630,000,000,
Delegation For England
The announcement says that Mr. The Hague, Sept. 27 (leuter).-A Winston Churchill's statement in the The Air Expeditionary Force | tralla, savings must bo inflation
These totals, vast as they were, The budget proposals were calcu wero arrived at on the basis that Netherlands delegation has been ap-House of Commons was literally and promised Britain.would be more which Britain intends to avoid lated to raise from revenue £042,- unprecedented financial 800,000, and consequently at that'
we remained at peace throughout pointed to go to England and discuss absolutely correct, and that there was useful. by
questions of neutral shipping and
the German counter- Ume £380,000,000 was left to
trado.
statement that an aircraft-carrier had He stated the conditions were efforts.
borrowed within the financial year. On September 3, we were at war, The dalgeation is Headed by the been sunk, a battleship badly different from those in 1914, - when Though the Chancellor has obviously Before the Finance Act was passed, and a vote for credit for an addi-pirector of the Commercial Treaties damaged, and that all the Nazi planes belligerents, were known and there
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PLEASE Tum To Page 2. Department.
returned safely to their bases.
I was no danger of Invasion of . Ausei
the figures for this year's expendi
the year.
to 300,
no truth in
CANBERRA, Sept. 27 (Router)—Mr. R. G. Menzies, the Australian Prime Minister, said in a radio broadcast to-day that it would be unwise to send a large expeditionary force overseas at present.
J
I bellave that there is a serions mensos to the British. Empire,”, he
"The war will be won, bai nol quickly and we must preservo our resources," he stated.