Lifeschermendet, nem a 20.
A car that every body likes, not alone for
Its low operating costs the
-
NEW
Flying Standard
"10"
with Independent front wheel suspension, 4-speed synchromesh gearbox, 12-volt elec- trient equipment, etc., is the handlest cor In congested trafle and easiest to park. It saves loin of $ and shows good buying THC.
FAR EAST MOTORS
Telephone No. 30101, Kowloon
*Mongkong Talegraph”
for The South, China, Morning Post, Ltd..
TITANäy Wykbaar Aweet, Hongkong-
ghing Up Time:-5:52 p.m. High Water:-18.19.
Low Water:-11.12,
The
FIRST EDITION
Hongkong Telegraph.
FOUNDED 1801 No, 16033
五拜型 號五月--英港香 FRIDAY, JANUARY 5. 1940.
American National Debt Will Reach
New Record As Defence Costs Mount
ROOSEVELT'S LAST
BUDGET ANNOUNCED
RELIEF SLASHED TO PROVIDE FOR EMERGENCY
SPECIAL TO THE "TELEGRAPH"
WASHINGTON, JAN. 4 (UP).—PRESIDENT ROOSEVELT, IN HIS MESSAGE TO CONGRESS, HAS BUDGETTED FOR THE ADMINISTRA- TION'S ELEVENTH CONSECUTIVE DEFICIT, DESPITE THE FACT THAT HE HAS CUT EXPENDITURE BY $65,000,000 AS.COMPARED WITH THE CURRENT FISCAL YEAR.
The 1941 Budget introduced by the President to-day totals $8,424,000,000 which, although
lower than the 1940 estimates, is the third highest Budget in the nation's history..
WHY HITLER DAREN'T
BOMB BRITAIN
WE CAN
CRUSH HIS ARMADA
SPECIAL TO, THE "TELEGRAPH"
Relief costs have been
drastically cut in order to
provide new emergency de-
fence expenditure of
$460,000,000. This
is
in
addition to the ordinary WAR IN CHINA
defence expenditure.
In his message, Roosevelt
opposes
purchasing power.
LONDON. Jan.-1.-Britain which-will-curtail now has enough fighter planes on the Home Front to overwhelm the biggest mass formation of bombers that Germany could send against her.
That is why Hitler has nol dured to bomb Britain. Our Air Force, it is now revealed, can always keep more than 2,300
lunes flying-at home, alone--- however many may be lost in fighting.
At least 800
President
taxation consumer
Although not revealed, it is believed come, estate and inheritance lasese that he contemplates increases les
The estimated defelt is $2,976,- 000.000. As a result the National Debt already a record--will be Increased to $44,938,000,000,
America's Fiscal Problems
WASHINGTON, Jan. 4 (Reuter).-)
AGRENDA
1237 1939
ADRES: VOLL
THESE propaganda
ام عدل
Posterl
Molland (the stamp and' postmark are shayn above), are being received now by many people
The first, marked 1914, shows the "cucirelement" necessary to make Britain's blockade suc- cessful in the last war.
Below is one marked 1939 la which the Gernians attempt to show how "enelrclement" has failed and how the blockade
must also fait,
It takes no account, however, of the vital fact that present- day Nazi Germany has no gold or foreign currency with which to pay for imporis necessary to carry on the war or that the countries on her freniler can- not supply any of the raw materials she needs,
GRAF SPEE MEN
PEACE IN TRY TO ESCAPE
OFFING?
London Has Wave
Of Optimism
LONDON, Jan. 4 (Reuter)— Hopess that serious efforts may shortly be made towards secur
some settlement in
the
the course of his review of scal policy in his Budget speech, President Sino-Japanese war were respon. Roosevelt pointed out that the de-jsible for the sharp upward of Chinese bonds
It is realised that the potential.
of these Erst-ne: liberute use of government funds to movement planes are high-speed fighters, reatly energise private enterprise has to-day.
foundly affected both government and
to defend you..
These figures do not include the private incomes, stundrous sent to France at the out-
-MONTEVIDEO,~Jan.~~4~| (Reuter); Five members of the Graf Spee crew made a daring attempt to escape internment to-day,
secured & They
motor launch and starled for Buenos Aires,
The motor launch develop- ed engine trouble, however, and the men were overtaken and brought back.
SINGLE COPY 10 CENTE
日六十月一十 $30.00 PER ANNUM
Poles are Ready
LONDON, Jan. 4 (Reuter).—Subslaaflal Polish forces will be ready to fight beside the Allies at the beginning of spring, declared the Polish Ambassador at a luncheon to-day. Be protested against the German allegil- tions of Polish atrocities and said than the Nazis, not content with destroying the Poles, at home, are now trying to destroy their gooti name abroad.
The Nazis are making every effort to kill the spirit of the Poles, particularly by means of concentration camps.
The whole of the population of Western Poland are being driven from home, and to-day there is not a single Pole in the once- thriving Polish" port"of Gdynia.
Merciless
ilmanis. the car people
EVERY MONDAY
WEDNESDAY and FRIDAY IN THIS CORNER
featuring special announcements and news of Interest to all concerned with motering
Big
Air
Red Raid
LONDON, Jan. 4 (Reuter).-Reports from both Copenhagen and Stockholm state that the Soviets staged one of their most ambitious air raids on Wednesday on the town of Tornea, at the head of the Gulf of Bothnia.
Twenty planes are said to have bombed the outskirts of the town. Two were shot
[down.
Criticism
of Russian Leaders
LONDON, Jan. 4 (Reuter).-Praise for the mag- nificent fighting qualities displayed by Finnish soldiers is given in a leading article in the "Times" to-day
There are a number of contri- } buting factors on the Soviet side
which have materially assisted TRI-POWER
the Finns, the paper goes on.
Stalin's Incompetence
Stalin, in the first place, is mili- torily incompetent and has miscal- culated.
The Russians living close to Fin- land would obviously be more able to endore the weather conditions pro- vailing there than those from other parts of Soviet Russin,
But they suffered from the usuni difficulty that Russian soldiers do not like to attack their neighbours, hence
had to be used.
troops from other parts of the country
Serious Mistako
PARLEYS
TO START?
The raliway bridge a few miles cast of Tornen. Is said to have been damaged. If this is so, the Finas will be deprived of a valuable means of supply from Sweden.
... Mystery Air Bases This rald raises the question as to where the Soviet plunes came from. town is and
The nearest large Soviet Murmansk, and the outward homeward journey from Murmansk is 600 miles. From. Leningrad the nearly 1,000 miles.
round-trip would be one of
It is possible, however, that the Soviets have established temporary air bases on the frozen takes near their Ines yu the central front.
The Soviets also bumbe Oulu (Utcobarg), un important railway town on the Gulf of Bothnia, some 60 to 70 mlles south of Tornea,
These raids are believed to be part of the new Soviet plan to attack railways and harbours in order to
Keeping Russia Away hinder foreiga assistance to Finland.
From The Balkans
Finns Rotaliato ROME, Jan.. 4 (Reuter).— LONDON, Jun. 4 (Reuter).—There Persistent rumours are circulat- was aerial activity by both the Finns
ind Soviets to-day. circles that a triangular confer- Swellsh paper reports that Finnish ing in well-informed unofficial The Helsingfors correspondent of a ence may be held between Count planes flew over Leningrad on Wed- Ciano (Italian Foreign Minis-nesday and dropped leadicts contain Then again Stalin, for political ter), Count Csaky (Hungarian minister to Mr. Molotoff.
log the speech of the Finnish Foreig reasons, has destroyed a large num- Foreign Minister who is at bor of his best professjonal officers.
And finally, Russian soldiers who have been raised in bellef in God and their country have now been ahorn of those ideals.
Civil Service Want Wage Increases
Sir John Simon Sees Inflation Threat
present visiting Italy) and Ger- man statesmen..
Dr.
Field-Mahol Hermann Goering, Joseph Goebbels und Herr Joachim von Ribbentrop are mention ed as the possible German represen- tative.
Clano To Meet Csaky "Rumours of a visit by Goering were current last night, but contrination is not obtainable.
It is sad to be practically certain that Count Clano will go to Venice to meet Coint Csaky,
י,
Authorititive eireles belleve that If the conference becomes triangular.
LONDON, Jan. 4 (Reater).—the problem of how to keep Soviet
to
of
Russia on her own side of the Car- pathians will stand at the forefront of the discussions.
Automatic raising of wages meet the rise in the cost living would involve a grave danger of inflation, Sir John Simon. Chancellor of the Exchequer, to-day told a depu-
Service.
THEY FEEL tation representing the Civil
The national income in four years recovery capacity of China in THE PINCH
Expenditure Cuts
especially as the latest returns of
Customs revenues issued by the Front Line Soldiers Short The Works Progress Administration Chinese Embassy indicate a relatively
Of Clothes small real decline in China's receipts
COPENHAGEN, Jan. 4 (Rea-
fleet of 1,000 first-line machines with will operate on about 80 per cent. of prepared for a much greater decimeter)—According
to reports
Russo-Japanese Trade Talks
оп
Soviet
Break of war, the reserves available has risen 69 per cent.-the biggest rise such an event must be large,
The deputation drew attention to MOSCOW, Jan. 4 (Reuter).-Five for the Western Front and the Hamel for any similar period in history.
the number of wage and salary members of the Japanese trade dele- Front, the large numbers of new air-
increases by Industrial concerns to gation have arrived here from Tokyo craf with Die Fleet Air Arm and.
meet the increased cost of living, and and were welcomed by a large num urged the establishment of a com- ber of Soviet officials, including the #t overscas garrisons, or training machines.
mittee in elaborate a scheme of com- Deputy Commissar of Foreign Tracle. pensation for the Civil Service,
Tolks are scheduled to stari When Germany revealed in 1934 will be enabled to provide employ that the intended to build a new alement for an average of 135.000 people. for 1039 as compared with last year.
Sunday. Financial Strain Emphasised Many funncial quarters, who were The Farm Security Administration
The Chancellor re-affirmed the The delegation.will visit the Krem- adequate reserves, and mid that
Arc now wondering whether, reaching here, the Allied Government policy of reviewing in with the Japanese Ambassador hundreds of the planes were then last year's level.
China can secure such a large Cus-economic warfare is now being Civil Service pay in the light of sub-to Moscow to-morrow for conversa- ready, it was decided that we should Relief expenditure will be closety toms revenue with
the level of tlon with M. Molotof, the stantial changes in many of her felt in Germany, even among the remuneration elsewhere, but referred Foreign Commissar. build a first-line strength at home of geared to actual needs, but if the legitimate trade outlets closed, nle 1,500 aircraft,
present hopes pre disappointed, might not provide spectacular troops in the Siegfried Line. to the enormous financial strain in ..Order For 1,000 Fighters
revised estimates might be substituted commercial recovery were the normal | The reports assert that consequence of the war, and to the
the Replying to the criticism of This was later increased to 1,750,
many men are in want of new grave danger of inflation wages uniforms and other clothing, were automatically adjusted to prices. and then to over 2,000, to be com- public debt, President Roosevelt
be difficult keep pleted by the Spring of the present pointed out that there are durable
Even, the richest Germans, it Civil Service wages at the present and tangible assets constructed or
is reported, are finding it hard level if prices continued to rise, the purchased by the Government, though Sinco overy Squadron of The these are never yet listed. R.A.F. has a,50 per cent reserve Expenditure estimates includin with H. for rapid replacement of nearly $150,000,000 in the construc- casualties, the real sirength of the tion of merchant shipping.
PLEASE Turn To Page 2.
PLEASE Turn To Page 2.
year.
Iuler in the session.
NAZIS PRAISE (YOU'D NEVER
GUESS WHOM
trading conditions restored.
to obtain now clothes which Government was doing everything in its power 10. prevent unnecessary are particularly needed now rises In the cast of living. beenuse of the very cold win- ter.
Cotton Price Control
Other leaflet planes flew over the Soviet Lines in the Karellan Isthmus and dropped pamphlets telling of the good treatment the Finns gave their prisoners.
showing the prisoners wearing warm The aflets include photographs cloth.
These also showed Russian DI CASE TH- To Proe 2.
LATEST
Soo Back Page For Further Late News
U.S. Neutrality Believed to be Weakened NAZIS SEE THREAT IN ROOSEVELT'S SPEECH
HOSPITAL BURNT DOWN Shocking Action By Japanese Troops
No. Food Shortaga
AMSTERDAM, Jan. 4 (Reuter)-President Roosevelt's speech is regarded from beginninng to end as an attack on Ger- SHANGHAI, Jan. 4 (Reuter)-la no serious food shortage provided Generally speaking, however, there
many, according to German political circles quoted by the Berlin The Brilish Consul-General at that one has the money to pay for it, Tsingtao has made representations but the fare obtainable la monotonous,
correspondent of the Telegraaf."
theme of the Press renelon, to Pre- It is considered that Presidentident Roosevelt's speech yesterday. to the Japanese following the burn- and to certain extent lacking l Ing of the English Methodist Mission nutriment.
LONDON, Jan. 4 (teuter).The Roosevelt has weakened Ameri-
It is now felt that the meaning et hospital at Chuchin, near Wutingfu
new Ministry of Supply order does ca'u' attitudo of neutrality. ....... President Roosevelt's message to the not control raw colton prices' but, This opinion is further strengthened Pope is better understood. Japanese troops, In retaliation for al- This, combined with the shortage with certain excoptions, réguintes the by the report that the US Secretar Jest the President should be advocat- There has been some apprehension leged treatment of wounded guerll of clothing and the new
cold,prices of single cotton yarn of Ameri- of the Navy. Mr. Charles Edison, has augurs i for the comfort of the can and Egyptian type by prescribing proposed placing certain industries Ing peace on the basis of målntsträng Before departing, the Japanese are Germans for the remainder of the specific "margins" for each type and under the direct control of the State, the status quo, but it is regarded us It has just been published by Paul; of langunge seldom met with, full of reported to have made a threat to winter
quality.
It is recolted that American nuclear from the speech that, he' con- "List in Leipzig.
wit and humour, always thrilling and burn the Church and foreign houses
The controlled price of any yarn 1017, a mail or two before America and liberty.
thorities obtained the same powers in templates the peace of, democracy On the paper wrapper they have fascinating, but nevertheless full of in the Mission compound at a later
sold will be ascertained by adding an entered the war, and although it read an advertisement
It is felt that he is not favourable appropriate margin to the sum presenting the cost of ray cotton too much to claim that Uils step is an to a peace offensive which will leave
indication of American intenillon to Germany In participato in the war, there is loss gotten gain session of her
MR.
CHURCHILL
THOUSANDS of people in Germany have bought a version of T. E. Lawrence's "Revolt in the Desert."
Freezing German waterways are In Shantung on December 25 by holding up coal deliveries.
Ins.
new book, which says;
for another deep moral seriousness.”.
The tribute is the advance notice ofį
date.
reveals himself as
"In this excellent work Churchill a translation of one of Mr. Churchill'
b spirited and books, obviously planned just befare
daring, adventurer, but also os a the outbreak of war. sincere and open character,, He la
irresistibly attracted by a fight, anel
bursting to perform derda herolam,
of
"Churchill is ti born story writer, commanding a richness and vivid use!
But the Nazi consors masod-it.
[Note: In
recently Mr. Churchill has been
German newspapers
amoral being"
described as “an
Italian Envoy Returning
MOSCOW, Jan. 4 (Reuter);--Tho "a Machiavellian mind," and "lalla Ambassador left for Home to deadly enemy "1
extreme
PORTUGAL HIT BY FLOODS
LISBON, Jan. 4. (Reuter) —The foods which hit-Portugal in the past two days Ɛaró growing worso, and largo areas are now under water,
Some 60, vilinges are submerged and hundreds of head of cattle have been-lost.--
used,
re-
:
The system föllows on A general confidence th the continuance of It is reported in Paris that somës, line the existing voluntary yarn price: America's neutrality in all cireum thing is being plojsed in, Germany, agreement.
atances,
but whether it is a new peace offen In general, the margins fixed are Ak
Bive with a window-dressing of Franch Roactions To Speech- appreciably lower than; thote pre-
change of government, as the Pett valling, and is is hoped that one Im-
PARIS, Jan, 4 (Router)That the fallslcán": "forekásta, che a military ade portant result will be to assist export Allied cause will have a moral fensive against Holland and Belgium trade.---
tory-before-a^ material-one-is-thejks not,yut oleat