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HONGKONG TELEGRAPH

March 29, 1940.

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Zhongkong Telegraph.

Friday, March 29, 1940. Wyndham St., Hongkong Telephone: 28815

THE prefix "Special to the Telegraph ls used by the "Hongkong Telegraph to Indicate nows which is aizietly copyright under the provisions of the Telecommuni- catious Ordinance, 1938. Such news. AS bears the Indicatión "UTH is received la Hongkong on the data of publication by the United Press. Artociations, who re- serve all rights and forbid republication, either wholly or in part without previous Arrangement.

Food Prices And Cost

Of Living

THE cont-of-living index datos from the last war, and its Introduction then was symptomatic. In war under modern conditions prices must always keep on rising if they are left to themselves. When they have come to pinch the working-class consumer, determined da- mands are made for higher wages; and these, again, under war conditions can- not long be resisted, But they never permanently overtake prices. For, oven if they do so temporarily in a particular instance, the increased spending.power conferred on the workors koon driven the prices higher again. That is the "Vicious spira?" which produced the In- flation of 1914-18. It caused unemploy-'} ment in many classes and hardship in nearly all for at least ten years after the war was over."

Most_people_agree,__In__the_abstract, that we ought new, as far as possible, to avoid repenting It. But how far can we? In "cost of living" there are three main Ingredients--fond, clothing, and house-room. It is impossible to provent the costs of the first two from rising at the Rource. Both are affected by submarino sinkings, the delays due to convoy, by higher Insurance rates, and in the care of clothing by heavy extra demands from the armed forces for uniforms. The question is, how for the State should allow these risca to be borne by the ordinary consumer, and how far it can intervane to divert them from him. Two main lines of intervention are open to it-rationing and subsidy. Rationing checks the price-rise by Ibaiting demand. Subaldy checks it by artifletally cheapening sup. ply.

In the last war neither was rososted to until the struggle had been in pro. gross for yours. By then the upward movement had nequired a momentum which could not be arrested, though some brakes were put on its necolora- tion. In the present war. it was la- ovitable that action should be taken much earlier. Subsidies began about the beginning of last December, and rolloning soon after, the beginning of this year. According to the full state- ment made in Parliament by Sir John Simon, the present cost of the milk subaldy is £200,000 n wisk, of the meat subaldy £320,000, of the bacon subsidy £80,000, of the bread. nubaldy £480,000. Thus the Exchequer is already contri- buting £1,116,000 a week to keep down prices to the consumer,

Mr. Keynes han pointed out-and Sir, John Simon ogreen-that subsidios are not a complete policy, and, unlerá bal- anced by others, may even bo danger. ous. For they encourage consumption,

THE TIGER: "You have not offended me in any way. HOW DARE YOU !”

BLITZKRIEG?-the Lowlands

are prepared

10

NCE more in their lang history, a history that has earned for thom the of title of Cockpit Europe," the Lowland countries Care standing toʻarms.

From the mouth of the River Ems to the hilly borders of Luxemburg a million or more men are ready to meet the in- vasion which

they

. fear threatens them.

More than half of them are Bol- glans, sons of the men who fought desperately to stem the German

· advance of 1014, in some cases the -men-themselves.-----

The remainder are the Dutch, a people who have known peace for years, but who are resolutely de- termined to defend the neat farms and tulip fields that are somehow characteristic of Holland's tradi- tion of neutrality.

Once again David faces Goliath.

But both In Holland and Bel- gium it is realised that the two armies. notwithstanding the assistance their natural defences provide, cannot hope alone to withhold a German advance for more than a limited time.

There is, however, one important factor in the Lowlanders' defence dispositiona. Her own history and the tragedies that have befallen ́small' States in the past few years have taught Belgium to prepare for the

worst.

BY BERNARD MOORE

Locarno is now a dead letter, the undertaking has been renewed, ・・

Her main defences, therefore, are designed to check an invading force until such time as help could comr.

Along her frontier have been bullt tiny concrete plil-boxes hold- ing one or two marksmen only, The men who man those piil-boxes have sworn to die rather than let the enemy pass.

Bohind the

bill-boxes Aro tranches masked by "asparagus beds for tanks. Some miles be- hind the trenches aro Belgium's main defences, the rivers and . carals.

In the north is the King Albert Canal, more than 100 yards wide, with steep, desp banks. Along its 200-mille Tong south bank ličs a line of low businesslike looking forts whose concreto and steel walls are belloved to be capable of standing up to any bombardment. From Liego, itself heavily forti- fled, run three lines of similar forts, most important of them being that along the rugged banka of the River Meuse.

Talking of this defence line, one humorist said that anyone trying to break through it would need three suits. One, a climbing out- ft to clamber up and down the

stoop river banka; then a diver's suit to cross the water; and finally asult of heavy armour to get any- where near the forts.

A few years ago Belgium's Air' Force was a pathetic handful of rather old-fashioned planes. To-

day it is still small compared with the armadas of the Great Powers, but its commander, Major-General Duvivier, regards. it as a swarm with a vicious sting.

Holland's fighting forces, per- haps because they have not fought for so long, are something of an unknown quantity.--- Last time the Dutch fought in Europe was in 1831, when they conducted a brief 10 days' campaign in connection with the separation of Belgium from Holland.

Hor peace-time strength at home Is some 10,000 troops in four divi- stons, with an oversqsa army of 40,000, for, don't forget, Holland has an extensive Empito.

To-day, she has something under half

a million men under arms, · with mobilisation · only partially' completed. They havo all geen service under the Colours, "for Holland has compulsory military' service.

Like the Bolglans, they have been

Intensively trained, and Holland's Army Chief, Major-General I.. H. Reynders, has worked out a plan of defence particularly pulted to the country.

The system of flooding is well known; not so well known are Holland's skating infantry, armed with Mannlicher carbines," who may one day play the same rôle in Holland that the crack skiers of Finland are playing to-day.

Unlike Belgium (which has one. fishery protection vessel) Holland has a fleet.

It consists of five cruisers carry- ing 6-inch guna; one coastal de- fence ship (11-inch guns), eight destroyers (with four building), 12 torpedo boats (with 32 building), 21.submarinės. (with nine bulld ing), and a number of minelayers. and minesweepers,

Her fleet is ninth largest in the world.

the

Almost as important as Army is the potential defence force provided by the Dutch population..

All civilians between the ages of 18. and 00 are liable to be called прод to aasist the military authorities.

They may be called upon to re- pair damaged roads, bridges and rallways damaged by bonibs; to bulldor-pull down förtifidations; to build and dig watercourses, help In the reinforcement of dykes and canal banks.

Like Belgium, Holland's Air Force is small but efficient, con- sisting largely of the famous Fokker planes:

These are the armies, small but highly-trained, equipped with the latest weapons of war, which wait for any German move against their countries.

Latest news from the Lowlands is more reassuring. But, even if this crisis blows over too, the Low- Inndors, armed and resolute, will. watch and wait,

for EUROPE'S FIGHTING-MEN

hetion

Holland, which for 109 years has avolded war, has been kept fully informed by her neighbour of THOUGH the war of action has threatening developments. The begun, the "War of Nerves" hus element of surprise which enabled [by no means ended. In view of this the. Kaiser's Uhlans to stream behoves us

careful to make n

across the Belgian border in 1914

can now be discounted.

Plan

p" which the Belgian Army Command put into opera tion during the week-end is the last stage but one in a defence scheme which has been perfected during the past decade by Bel- gium's military experts,

Ally and Enemy. Personnel

By LEWIS SPENCE

survey of the qualities of our allles and our toes as flighting-men, their military psychology, lasting powers, so that wa and physical make-up, may arrive at provisional conclusions concerning the reliability of each as Thrice Armed a factor to be reckoned with.

And first, the French. As a soldier And there is this to be remembered; the French poilu varies considerably no public is so liberally educated in

The sense of personal enterprise nmong the German peasant rank and. Alle is almost nil, that lo be found: In the elty battalions being only a little more developed. As has been sold by a keen observer, there is "a suleide flash-point" in the charpater of the German townsman, tendency to sudden paychological breakdown and despair when confronted with precisely those overwhelming condi- llons which bring out the best: qualities of the Briton.

from one generation to another. The the political sense as the French. It Unimaginative Leaders

him

Europe of Louis XIV's time

much as it does the Alrondy the peace-time Army of das

day, as rather

fo-ing, and a

90,000 has awollen to 700,000 moh, merciless enemy, ovoNedrealises precisely for what it is light-

If It is found necessary to put into somewhat prone to looting.

and is thrice armed, which knows that

The

which, generally speaking, needs fa bol origration Plan "E" there will be French grenadier of Napoleon's have ever been the equals of the philosophere, as that of tho great

weapons,

Londen-

No population has been so subject- It may be added ed of the doctrines of morbid and that in all ages no troops in Europe psychological theorists and pseudo-. day French in technical knowledge and German cities, and this has induced. discouraged. Miik and bread eart be

over 1,000,000 mon under arms in was usually a juntied as exceptions-milk because its

gruff, hard-bolled use of their

be these In them a keen sense of the tragedy production still levon a large margin] Belgium.alone.

fellow, tough as hickory, and accus-swords, matchlocken, Lewis-guns, or of existence. The modernist tend which, for health reasons, would be. And they will be a highly trained tomed to regard his opponents with modern artillery...

cles in thought of the hyper "civi contempt. The conscript of tho bettor to 100 coneumed in the liquid force. whose members have all Franco-Prussian War, to judge from soldier að regards weight, romanti-apt to produce, what the German German in a good, handy sed communities of Germany aro stale; bread, because it is a necessity| Ab for the poorest and Ha thoapening does

nerved between 12 and 18 mont38 all-accounts, required a good deal offcally courageous, and with an almost Jhimself calls "brain-sickness" and not enuse the better-to-do, to eat more with the colours, undergoing in- of it. But hocon is rightly rationed, tensivo preparation. Belgium hascouragement at the beginning of a adolescent sentiment about military a belief that the world is very much and meat is about to boi

fight, and, occasionally lost heart, but;

The motive for rationing, of course, is not merely to keep down cost of Hirs Ing, but to inévro ni, equal division of restricted suppiles, The - question of supplies is primarily one of tonnage, though that of foreign exchange plays also an important part in it. And both are only aspects of a larger proposition. vin, that we can only throw a maxim 25 of the nation's resources into the medas. for winning the war, in proportion we reduce to a minimum ik» démands made on those resources by ordinary, civil consumption.

The

been pushing on with the mechad- jiƒ under dashing leadership, was bold a sense of esprit-de-coms/what Mrs. Camp culled "a wale of

beste mean the high, but is apt to partake of the sorrow by no nature of herd-Instinct, and the best philosophy for a fighting man, oven by Nazi The pollu of to-day is n cool, among them are determined fighters. if he be intoxicated med young fellow, lithe and In his first years of military life he enthusiasm. much.. bettor

is usually pettor developed physically

and good. than the French soldier of a quarter natured, but a year or so of soldier soldier.

carefree

that the German 1 fully believe

has nearly always been of a century ago. The force now in ing seems to make him sullen and hampered by a wholly unimaginative action is by far the most-intelligent) dour. He Imbiben the Prussian | leadership, ·bound to hard-and-fast. and, anlightened army which France milltary tradition; which is a callous strategic dogmas, which makes no has ever put in the field, indeed in one and comes to regard himselfons provision for unforeseen occurrences. some respects it might be called ana cruel tooth in a great and relent-In such-and-such ✔ - circumstancos: “althoughi {"Army of Intellect."

less harrow,

PLEASE Turn To Page 2.

isation of the land army during and Bon-like at attack; the past five years.

She has the latest tank models and tractor-mounted guns. Her frontiers bristle with ingenious tank-traps designed to frustrate any attempt at a Blitzkrieg.

Belgium knows that Britain and Franco were plodged by the Treaty of Locarno to go to her aid if she were

and invaded,

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