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Telephone No. #101, Kowloon
longkong Telegraph” saikst, Morning Posi, Ltd., kkinkbund/Street, Hongkong.
High Water:-18.19, Low Water:-11.12.
The
SECOND EDITION
Gilmans
con people
EVER MONDAY, WEDNESDAY and
Hongkong Telegraph.****
FOUNDED 1881
No. 10:43 ·五拜禮 號五月--英港香 FRIDAY, JANUARY 5, 1940.
America Will Build Eight Big Battleships As Part
Of President's Great Naval Defence Plan
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
COLOSSAL history.
Relief. costs have been
AMERICAN drastically cut in order to
provide new emergency de-
DEFENCE fence expenditure
BUDGET £500,000,000-For Army, Navy
8 BATTLESHIPS TO BE BUILT
SPECIAL TO THE "TELEORAPH" WASHINGTON, Jan. 4
(Domei). Although expen-
$460,000,000. This
addition to
of
is in
the ordinary WAR IN CHINA defence expenditure.
अग
0-4
1949
ADRES VOLL
HESE
propaganda 2,
posted In Holland (the stamp and postmark pre shown above), are being received now by many people
The first, marked 1914, shows the encirclement" necessary to make Britain's blockade suc- cessful in the last war,
Below is one marked 1939 Iti which the Germans attempt to show how encirclement" has falled and how the blockade Buist also fall,
It takes no account, however, of the vital fact that present- day Nazi Germany hy ne gold or foreign currency with which to pay for imports necessary to carry on the war or at the countries on her frontier can- not supply many of the raw materials she needs.
GRAF SPEE MEN
PEACE INTRY-TO-ESCAPE-
In his message. President PEACE IN Roosevelt
opposes
which will curtail
| purchasing power,
taxation consumer
Although not revealed, it is believed that he contemplates inereuses in income, estate and inheritance taxes
The estimated deficit is $2,075,- 000,000. As a result the National Debt already record—will be) increased to $44.938,000,000.
America's Fiscal Problems
OFFING?
London Has Wave Of Optimism
LONDON, Jan. 4 (Reuter),- Hopes that serious efforts 'may shortly be made towards secur- Hettlement in the
diture in President WASHINGTON, Jan. 4 (Reuter).--- Roosevelt's 1941 Budget is in the course of his review of flseal some lower than that anticipated policy in his Budget speech, President Sino-Japanese war were respon- in the current fiscal year, it liberote use of government funds to movement
Roosevelt painted out that the de-sible for the sharp upward sets records in several energise private enterprise has pro
Chinese bonds foundly aftreted both government nud respects.
private Incomes.
The national Income in four years
if
to-day.
It is realised that the potential
MONTEVIDEO, Jan. 4 (Reuter). Five members of the Graf Spee crew made a darlag attempt to escape internment to-day.
They secured a motor launch and started for Buenos Aires.
The motor launch develop- ed engine trouble, however, and the men were overtaken and brought back.
WHY HITLER DAREN'T
BOMB BRITAIN
Expenditure on Defence has risen per cent.--the biggest rise recovery capacity of China in WE CAN
will reach the all-time record for any similar period in history.
be
Expenditure Cuts
especially as the latest returns of CRUSH HIS
ARMADA
SPECIAL TO THE "TELEGRAPH"
such an event must be large, of $2,000,000,000 (£500,000- 000).
The Works Progress Administration Chinese Embassy indicate a relatively Customs revenues issued by the Revenue is estimated at $5,- ment for an average of 135,000 people.for. 1938 as compared with last year. will be enabled to provide employ-small real decline in China's receipts 548,000,000 (£1,387,000,000).
The Farm Security Administration) Expenditure is estimated at will operate on about 80 per cent, of Many financial quarters, who were $8,428,000,000 (£2,107,000,000). Inst year's fevel,
prepared for a much greater decline, LONDON, Jan. 1-Britain The defeit will therefore
now wondering whether, Relief expenditure will be closely re
I now has enough fighter planes on $2,876,000,000 (£719,000,000)-genred to actual needs, but if the China can secure such a large Cus- the Home Front to overwhelm another record,
¡present
toms revenue with many hopes
disappointed,
of her the biggest mass formation of Estimated revenue represents
revised estimates might be substituted legitimate trade outlets, closed, she Inercase of $302,000,000 over the cur-later in the caston,
might not provide spectacular bombers that Germany could Replying to the criticism of the commercial recovery were the normal send against her. Estimated expenditure is $075,000-pointed out that there are durable
public debt, President Roosevelt trading conditions restored.
That is why Hitler has not dared to bomb Britain. Our Air land fungible assets constructed or
Force, it, is now revealed, can always keep more than 2,000 planes flying at home, alone--- however many may be lost in
rent fiscal year.
000 less.
an
are
The estimates for the Navy pro-purchased by the Government, though vide $369,000.000 (£92.250,000) for these are never yet listed. the construction of new warships.
They will include two 45.000-ton nearly $100,000,000 in the construc- ExpendHure estimates Include battleships. They will be the big-tion of merchant shipping.
PLEASE Turn To Page 2.
PLEASE Turn To Page 2,
NAZIS PRAISE (YOU'D NEVER
GUESS WHOM
MR. CHURCHILL
#
Full Court Sustains C. J. lighting.
Japanese Appeal
Dismissed
At least 800 of these first-line planes are high-speed fighters, rondy lo defend you.
日六廿月 -+
·SINGLE COPY 10 CENTS $36.00 PER ANNUM
THIS
featuring special announcements and news of interest to all concerned with motoring
Poles are Ready Big
LONDON, Jan. 4 (Reuter).-Substantial · Polish forces will be ready to fight beside the Allies at the beginning of spring, declared the Polish Ambassador at a luncheon to-day.
He protested against the German allega tions of Polish atrocities and said that the Nazis, not content with destroying the Poles at home, are now trying to destroy their good name abroad,
The Nazis are making every effort to kill the spirit of the Pules, 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 part of Gdynia.
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 bead of the Gulf of Bothnia.
Twenty planes are said to have bombed the outskirts of the town. Two were shot
[down.
Merciless 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
the Finns, the paper goes on.
Stalin's Incompetence Stalin, in the first place, is mill- tarlly incompetent and has miscal- culated.
The Russians living close to Fin- land would obviously be more able to endure the weather conditions pre- valling there than those from other parts of Soviet Russia.
But they suffered from the usunl difficulty that tussinn soldiers do not
TRI-POWER PARLEYS
TO START?
The railway bridge a few miles jeast of Tornea is said to have been damaged. If this is so, the Finns will be deprived of a valuable means f supply from Sweden.
Mystery Air Bases This raid ralaes the question as to The nearest Inzge where the Soviet planss came from. Soviet town Is Murmansk, and the outward and
homeward journey from Murmansk is
round-trip would be one
680 miles. From Leningrad the of nearly
1,000 miles,
It is possible, however, that the Bovicta have established temporary ale bases on the frozen lakes near their lines on the central front,
The
Sarlets also bombed Oulu (Ulcaborg), an important railway town on the Gulf of Bothnia, some 60 to 70 miles south of Tornea,
These raids are believed to be part of the new Soviet plan to attack allways and harbours in order to
Keeping Russia Away hinder foreign assistance to Finland.
From The Balkans
ROME, Jan. 4 (Reuter),—
Finns Retaliato LONDON, Jan. 4 (Reuter). There
troops from other parts of the countrying in well-informed unofficial and Soviets to-day,
hud to be used,
like to attack their neighbours, hence Persistent rumours are circulat was aerial activity by both the Finns circles that a triangular confer Swedish paper reports that Finnish The Helsingfors correspondent of a Serious Mistake Then again Stalin, for political ence may be held between Count planes flew over Leningrad on Wed- reasons, has destroyed a large am-Ciano (Italian Foreign Minis- nesday and dropped leaflets contain- ber of his best professional officers. ter), Count Csaky (Hungarian Minister to M. Molotalt.
ing the speech of the Finnish Foreign And finally, Russian soldiers who Foreign Minister who is al have been raised in belief in God and their country have now been shom of present visiting Italy and Ger- Soviet Lines in the Karelion Isthmus
man statesmen,
and dropped pamphlets telling of the Field-Marshal Hermann Geering good treatment the Finns gave their Dr. Joseph Goebbels and Herr Prisoners, Joachim von Ribbentrop are mention-
The leaflets include, photographs
those Ideals.
Civil Service Want Wage Increases
Other leaflet planes flew over the
ed as the possible German represen- showing the prisoners wearing warm tative,
These also showed Russian PLEASE Turn To Page 2.
Ciano To Meet Csaky Rumours of a visit by Goering were current last night, but confirmation) is not obtainable,
It is said to be practically certain that Count Ciano will go to Venice to meet Count Csaky.
Authoritative circles believe
that
Sir John Simon Sees ́
Inflation Threat LONDON, Jan. 4 (Router).--| Automatic raising of wages to if the conference becomes triangular, meet the rise in the cost of the problem of how to keep Soviet
Russia on her own side of the Car-) living would involve a grave pathians will stand at the forefront of danger of inflation, Sir John the discussions, Simon, Chancellor of the Exchequer, to-day told a dopu- tation representing the Civil | Service.
Russo-Japanese
Trade Talks
On
The deputation drew attention to the number of wage and salary increases by Industrial concerns to meet the increased cost of living, and members of the Japanese trade dele- MOSCOW, Jan. 4 (Reuter)-Five urged the establishment of a com-gation have arrived here from Tokyo mittee to elaborate a scheme of com- and were welcomed by a large nin pensation for the Civil Service.
ber of Soviet metals, including the Financial Strain Emphasised Deputy Commissar of Foreign Trade.}
Така The Chancellor re-affirmed the
are scheduled to start Government policy of reviewing
Sunday. Civil Service pay in the light sib-
The delegation will visit the Krem- stantial changes in the level of remuneration elsewhere, but referred in with the Japanese Ambassador
to Moscow to-morrow for conversa={ to the enormous financial strain in tion with M. Molotoff, the consequence of the war, and to the grave danger of inflation I wages Foreign Commissar. were automatically adjusted to prices. While it would be dimcult to keep Civil Service wages at level if prices continued to rise, the Government was doing everything in its power to prevent unnecessary rises in the cost of living.
Soylet
clothes.
LATEST
Soo Back Page .For. Further. Lato. Nows
the present U.S. Neutrality Believed to be Weakened
New Shipping Service Soon
SPECIAL TO THE "TELEGRAPH"
NAZIS SEE THREAT IN ROOSEVELT'S SPEECH
AMSTERDAM, Jan. 4 (Router)-President Roosevelt's speech is regarded from beginninng to end as an attack on Ger- These gures do not includo the squadrons sent to France at the out-
many, according to German political circles quoted by the Berlin break of war, the reserves available
Baltimoro Line To correspondent of the Telegraaf." theme of the Press reaction to Fre Judgment wOB delivered In the for the Western Front and the Home Appeal Court this morning by Mr. Front, the large numbers of new air-
Call At Hongkong
It is considered that Presidentsident Roosevelt's speech yesterday. Justice R. E. Lindsell and Mr. Justice craft with the Fleet Air Arm and
Roosevelt has weakened Ameri-¡ It is now felt that the meaning of J. A. Fraser, dismissing the
WASHINGTON, Jan. 4 (UP). ca's attitude of neutrality. President Roosevelt's message to the appeal at oversens garrisons, or training against the order made by the Chief machines, THOUSANDS of people in Germany have bought a new Justice, Sir Atholl MacGregor, direct-
-Approval has been given by This opinion is further strengthened Pope is better understood, When Germany revealed in 1934 the Federal Maritime Commis- of the Navy, Mr. Charles Edison, has lest the President should be advocat- There has bem some apprehension, by the report that the US. Secretary version of T. E. Lawrence's "Revolt in the Desert."
ing the winding up of the Ching Ke that she intended to build a new air slon for the Inauguration of a proposed placing certain industries in Dence on the basis of maintaining Steam Navigation Company.
fleet of 1,600 first-line machines with It has just been published by Pautjof language seldom met with, full of List in Leipzig.
wit and humbur, always thrilling and Kisen Kaisha and others, who were hundreds of the planes were then to Singapore, Manila, Hongkongthorities obtained the same powers in templates the pence
The appellants were the Dalren adequate reserves, and said that new. American shipping service under the dirsel control of the State. the status quo, but it is regarded as It is recalled that American au- clear "from fie speech that he con- On the paper wrapper they have fascinating, but nevertheless full of represented by Messrs. II. G. Sheldon ready, it was decided that we should Shanghai and other points in the 1917, a month or two before America and liberty o
of democracy read an advertisement for another deep moral seriousness."
+ K.C., and Leo d'Almada e Castro. J:1,500 aircraft.
bull a first-line strength at home of Far East. new book, which anys:,
The tribute is the advance notice of instructed by Mr. H. J. Armstrong, ni
entered the war, and although it it is felt that he le not favourable "In uils excellent work Churchill a translation of one of Mr. Churchill's Deacons. The respondents were the Ordar For 1,000. Fighters
The service will be operated by the too much to claim that this step is an to a peace offensive which will leave Baltmore Steamship Company reveals himself as a spirited and books, obviously planned just before China Merchants Steam Navigation
indication of American intention to Germany In possession of her. III- This was Enter increased to 1,750. daring adventurer, but also as a the outbreak of war.
·Four ships will be placed on the participate in the war, there is less gollen gains, pONE Company for whom Messrs, Eldon and then to over 2,000, to be com- route.⠀⠀ slacere and open character.
But the Nal censors missed it: Rolter K. C. and I. C. Macnamata pleted by the Spring of the present
confidence in the continuance of It is reported in Paris that some- Under the terms of an agreement America's noutrailty in all circum- thing is being plotted in Germany, (Note: In German newspapers appeared instructed by Mr. D., L. year m
But whether it is a new peace offi recently Mr. Churchill has been Strellett.
**Since priaz Banasio with the American President Llibs, stacci
of the any profits accruing from the now
kalvo, with a window dresing of a slewertbed sa “"'ATI amoral being
BAT has a 52-per vel - FOSETYO | Barvice which originates through the French Reactions To Speech change of government, as the pati Machiavellian_mind,”,
{delivered by their Lordships diamies- Kipasanlling,” the red strangih of the - by the two companies. Ttle, surpe-Allied¿éauso will have a morál vic" fan4 MAKE PERCALLS, Tom-h÷military of
with it for Tápid: replaconsent of President Line whit be equally shared PARIS, Jan. (Router)That the deadly enemy.
PLEASE
Remont, is valid for inix kamonths, i tory, Inetare a Chisterial; one all the mind
Irresistibly attracted by a night; and
bursting
ما
· perform deeds of
Churchill t-a-born story writer commanding a richness and vivid urg
Two-lengthy fudgments ward
Lainst Holland and Bat
gam
1