Chancellor of the Exchequer's Warning BRITAIN FACING MORE TAXATION
LONDON, May 29 (Reuter),—A warning of still heavier taxation was given by Sir Kingsley Wood, Chan- cellor of the Exchequer, regarding the Budget.
Thursday,
NAVAL UNITS
HONGKONG TELEGRAPH
AID EVACUATION Shanghai Boy
In R.A. F. Casualty List
FROM PAGE ONE
wing still in Belgium with hopes food of establishing the Yeer obstacle, its right wing in Flanders from the Channel to Doual and lis centre curving beyond Lille, Rou- bals and Tourcoing to allcld the rich textile and industrial region. From Cape Griz Het to Vimy Ridge the Germans on the Allie's right forming the edge of the Flanders tulains.
He said that all businesses will be liable to 籍 new lank hold the crests of the hills 100 per cent. excess profits tax.
The Chancellor said that since the Budget was introduced, the whole situation had undergone a vast change, putting all previous estimates of the rate of war expenditure out of date. It was still impossible to give any real estimate but whatever was sure would be willingly paid.
The total revenue from taxes
had risen from £785,000,000 in
1936-7 to £1,200,000,000 to-day EMPIRE'S
and it would be necessary to in- crease the burdens further in
the near future.
Future War Loans
Into
More people are being put employment and civilian consumption Hençe will be strictly controlled.
there should be more money in the hands of the people which they would be in a position to lend to the country,
SUGAR FOR BRITAIN
Entiro Futuro Exports Purchased
British troops are grouped along that sector and their tremendous 1 stiil concentration of willery
with ap- functioning perfectly parently no shortage of munitions. They have been able to prevent the Germans sweeping down from erests into the plains.
the
The French in the centre hold the bulge as far south as possible but the pocket to-night was apparently no more than 40 miles deep with Lille as the apex. From Lille It turned back to the Lys River at Menin and from thence to the sea at a point near Nieuport.
was
Rear-Guard Action
LONDON, May 29 (Reuter),-It learned this afternoon from reliable sources here that the British Expeditionary Force is fighting with the French troops in the northern zone.
LONDON, May 29 (Reuter). The Chancellor is now considering
They are fighting a stiff rear-guard what will be the best shape for future-Arrangements have been com- war loans.
pleted to purchase the entire ex-action covering their withdrawal.
It is understood that they have succeeded in establishing a definite line and are putting up a strong opposition.
The withdrawal has bech carried out with skill and courage.
and
There is nothing in the new powers ports of the coming seasons of of the Government over persons the sugar production of Aus- property which endangers the inonty
of South There will be nothing tralia, the Union In any bank.
Africa, Mauritius, Fiji and the British West Indian colonies.
that endangers savings in any way. On the contrary, the more firmly and resolutely we join our efforts together. the safer and more valuable will our savings be.
Moralo Unthaken
com-
LONDON, May 29 (Reuter)-The latest Air Ministry casualty munique, No. 32, contains the name of Flying Oßcer LA.C. Peach, who was born In Shanghal. His father is still at Shanghai.
The list also contains the name of Flying Officer E, C. Ford, born in Ipoh.
Both are missing.
NAVY IN ACTION IN CHANNEL
British Towns Hear Battle Sounds
SPECIAL TO THE “TELEGRAPH"
May 30, 1940.
NEWS MAY YET BE WORSE
FROM PAGE ONE
They are prepared to deny to the Germans that complete victory for which they had hoped.
"We know we shall be exposed to s heavy bombardment from the air and we are not so
to foolish an neglect our precautions against a posalblo invasion.
Wo
Shall
Best Them Again "Yet even the perfected organisa- tion of the German land and alr armies cannot detract from the fact that the British Navy exists and is lo-day more powerful and efficient than ever in history.
once.
"The whole country will rise as one man to resist an Invasion and what- ever confusion or destruction may momentarily occur the ultimate issue Is beyond doubt. We conquered them We will conquer them again."
Neutral Comment LONDON, May 29 (Reuter)—A special commentary in the Stockholm newspaper, the "Tidningen," pointa out that even if the Allied northern army were defeated the principul contest will remain between the Ger mans and the forces to a large extent intact and reorganised by General Weygand.
Meanwhile it is by no means cer tain that n successful invasion ΟΙ England is possible. The Germans LONDON, May 29 (UP) could land large numbers of para- Heavy gunfire from naval units would be comparatively useless un- chutists without difficulty, but they off the south-east coast heard at
less
supported by large forces of towns this coast
morning troops such as in Holland. heightened the anxiety of "Britain is, after all, an island, and Britons about the fate of the this fact remains unaffected to the extent alleged by German pro- virtually encircled British Ex-paganda. An invading army cannot peditionary Force, while streng.. by over the Channel, it must land thening home defences to repel from ships, even if the advance what is regarded as an almost forces go by air" inevitable attempt to invade England. The
capitulation of King Leopold has robbed the Allies Troops Dig In
of more than 500,000 troops and the British Isles have also the North opened the door to Zeebrugge Sea and the west cousts.
Britain's LONDON, May 20 (UP)The and Ostend and perhaps Dun-situation 15 dangerous, but one Party a long period beginning in about two trapped Allied army is doing alkirk, last ports in Belgium and mustn't expect a rapid decision Ile sald that the Labour
months, and would not, therefore.
in their power to live up the would support heavy calls on
attack across the Channel. the immediate sugar supply.
glorious tradit
North Franco still in Allied "tradition."
The Tribune de Geneve" says: workers except the poorest. He
Zealand were added that we wanted the Chan-
the Belgians "In a double offensive against Eng- Canada and New
This assurance was given to His possersion since the United Kingdom
the section land and the new French defence cellor to impose on us burdens worthy partners with the
line, Germany will come up against Majesty King George Vi by General had been holding
Welcomed In Commons LONDON, May 29 (Reuter)-All
welcomed Sir
This was announced to-day in the House of Commons by Mr. Robert Boothby, Parliamentary Secretary to the Ministry of Food, at question time, The total quantity involved was about 1,750,000 tons, of which the Kingsley United
was Kingdom proportion Wood's warning
in the House of about 1,250,000 tons. Commons of still heavier taxation, Mr. Pethiek Lawrence declaring that
Parties
Purchasing Partners
The arrivals of the sugar in the
the new Government is showing drive United Kingdom would spread over and a sense of gravity.
affect of the heroism and courage of the Government in these purchases. Both
B.E.F.
In face of terrife odds, the morale of our troops remains quite unshaken. ment and material which may have to be abandoned will be destroyed in order to save it from falling into the hands of the enemy.
It is almost certain that the equip-
SPECIAL TO THE "TELEGRAPH“
ما
their
Lord Gort, Commander-in-Chief of
Blockade May Be Aim
It seems probable that the Ger- mans do not intend to occupy Britain but rather expect to blockade the This also is a serious threat country.
but It must also be remembered that
by
Dominions had shown the utmost co-the Brash Expeditionary Forces in stretching from Menin to the resistance ten times greater, and her
the
ad
and
Other members spoke in a similar operation, added Mr. Boothby, and been much strain. Mr. Hely Hutchinson said the negotiations. the present burdens do not sufficient-facilitated by the helpful attitude of Dominions and colonies. exporting ly restrict individual spending, but
Supplies of foreign sugar were also he feared that a 100 per cent, excess profits tax would lead to as extra-purchased when it was necessary to vagant a capital expenditure is the supplement the
last war.
Rare Reaction
Mr. Crookshank, replying. sald that it was surely rare for so heavy taxation to be welcomed so whole- heartedly. Unnecessary capital-ex- penditure would be difficult under the power the Government now had to prohibit the use of materials or -men. Moreover, the people. now opposed to the sort of thing that happened in the last war, and it was on peoples' patriotism that the Gov- ernment relied.
_were
The Finance Bill was read a second) time without division.
'CONCHIE' NOW AN OFFICER
tenant.
France to-day.
British military soureen here said the troops have succeeded in dodging definite line within the Flanders pocket enabling them to retreat in-
tact towards the Channel, deflelencies from
Empire sources, and this policy would be continued in future.
A Girl On
A Poster Is
"Dressed"
THE
-Result: Everybody Quite Satisfied!
"They
are holding this line in the face of terrifle odds," the military sources asserted and added that the Irapped armles withdrew for severul iniles to-day in orderly fashion.
Corman Version BERLIN May 20 (UP) —"'1!_!s only a matter of a few hours before the trapped armies in Flanders will either destroyed or forced to
be c
| capitulate. "German military quarters declared at "8 o'clock this evening.*** "They are being squeezed in two
North Sea, north-west of Zee- brugge.
Trade. Threatened German, possession of the Channel ports may make London a salient of the Allied front and force Britain to shift nearly all seaborne commerce to her south-western ports, since German guna
would
command the Siraits of Dover and German planes could harass mercantile traffle for down the Channel. These factors, coupled with the fact that the inva- sion threat is likely to force Britain to mine her eastern shores extensive- ly, would rab London of most of her seo trade.
terrible losses hitherto only give a feeble Idea of the battle which lies ahead. If the Allies this time have not repeated the Marne veltory, they have, anyway, regained the Verdun spirit."
The National Zeitung" says that whatever happens to the northern army, the war is not, by any means settled. The decisive battle is only
just beginning.
ALLIES SAFE-
FROM PAGE ONE
which they have occupied, In
narrow Isolated pockets from which LIEGE FORTRESS north and from Calais in the south.
there is no escape. They have been blasted all day with merciless artil- lery and air bombing," the Germans said.
BECAUSE THEY THOUGHT A FOSTER ADVERTISING A REVUE They added that Dunkirk is under CALLED SOIR DE PARIS AT artillery Jite and dive bombing and CHATHAM EMPIRE WAS that the whole port area has been OBJECTIONABLE. CLERGYMEN destroyed, rendering evacuation im- OF THE MEDWAY TOWNS OF possible. CHATHAM ROCHESTER GILLINGHAM SENT A LETTER OF PROTEST TO THE MANAGE- MENT.
AND Nazis Becoming Exhausted.
The poster showed a girl, lightiy glad, holding a glass of wine in her All Satisfied!
to
A YOUNG man who register-hand: ed as a conscientious objector and was directed by a tribunal! But the management saw nothing picture which they to take up non-combatant duties wrong in the is now serving as a second lieu- refused to withdraw.
Rather than appear discourteous the Ministers, however, they He is not, however, in the visited all the advertising sites and the girl concerned to be 9 square of black The officer's father, Mr. W. J. paper.
Now only her head and shoulders
the of Hayley, a business man in Cater-
and the name ham, Surrey, explained his son's position. He pointed out that his showing. son, Leslic Hayley, was 22 last November, and hnd worked for four years as a clerk in the printing and Stationery department at the Wor
amce.
present fighting zones. He is caused with
in the Middle East.
revuo
And everybody is satisfied.
але
Australia's Offer To-British Govt. He seemed very useful there,"
CANBERRA, May 29 (Reuter) said Mr. Hayley. "Last July, about three months before the war, he The Commonwealth Government has was told that his department was cabled to the British making certain arrangements over- offering homes in Australia for child-
years
of nge for the seas, and he was given to under-ren under 12 stand that he might be placed duration of the war.
It la the general desire in Aus- there. "I suppose they thought he was a tralla to co-operate in every possible
war way to safeguard the lives good man for the job. Then broke out and he had to register. He children. slated that he had a conscientious
LONDON, May 20 (Reuter) Reasonable hope is expressed in offi- cial circles this evening that the situation of the northern army, so gravely compromised by the Belgian defection, may yet be partly saved by the measures now being taken.
It is certain that the German troops were subjected to heavy losses and are showing definite signs of ex- haustion.
While exaggerated optimism Is not to be encouraged, particularly as it is admited that two thirds of the ports on which the opera- tions of the northern army were based, are now given over to the of King the result enemy Leopold's detection, reliable_fu- formation indicates that the Ger- man air force has lost over 2,000 planes, which are about half its first line force at the beginning of | the war.
15
-Also-the-Germaus-appear to have last 2,000 out of 5,000 mechanised
units.
Despite their desperate position, the British and French troops have responded admirably and have donc much to patch up the situation.
FROM PAGE ONE
termination of fire from the fortress this morning, there is no Indication that the garrison has decided to obey the orders of the King, for the de fenders have neither opened their casemates or made any show of sur-
render.
great increase
la
Despite the strength of the German battering ram in the post quarter of a century, the Belgian realstance has already passed the record which brought un perishable fame to the defenders of 1914.
Worthy Heroism
29
(Reuter)-To-
PARIS, May day's communique soya:
"The French and British troops who are fighting in northern France are maintaining. with a heroism worthy of their traditions, a struggle of exceptional intensity,
"For the fortnight past, they have been fighting a battle, separated from the main bodies of our armies by German formations which are being constantly reinforced."
Sommo_Villages_Ratakan...
the
Successful Evacuation Nevertheless, the Allied evacua- tion, which is being carried out from bath Dunkirk and Gravelines, is suc cessfully continuing-and-may-be- that-the-only-Allled-forces-now-re- maining in Flanders are the numeri cally small armles fighting the rear- guard action to protect Dunkirk until all troops-and-material are taken off. and Irremovable material is destroy- ed.
General Weygand's strategic plan from the beginning of the Battle of Flanders is now seen as envisaging the eventual retirement of the Allies from the Flanders pocket even before King Leopold made his dramatic an-
nouncement
General Weygand did not order n major counter-offensive in Flanders, not only because he had no time to re-organise his army after the Ger- man break-through at Sedan, but also because the inevitable casualiles would not have been justified by the territorial gains,
Answers To Correspondents Y. K. Chan: The impression that newspapers make excessive profits in war-tirne is erroneous. The "Tele- graph" follows the policy adopted by the Newspaper Proprietors Associa tlön in London, which is to maintain the nur
number of afternoon editions bui
of pages. conserves newsprint. The Tele- graph" policy is. wherever pract|- cable, to give the main lines in the poster to entirely new storian-Ed.
PARIS, May 20 (Reuter).Three large villages have been retaken on reduce the number Government
the Somme after lively Bighting, re- ports a French military spokesman.
At Chateau Porcien there is yel another German attempt to cross the "Aisne
of the
The plan would provide for
Military Exports Views PARIS, May 20 (Neuter)-Com-
The attempt has been repulsed menting on the situation created by without much difficulty. the Belgian surrender, General Further east on the Maginot Line Duval, willing in the "Journal des there is no change
although the
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CHUNGKING RAIDED
Chungking, May 29, For the fourth consecutive day, 12 This Japanese planes bombed Chungking's to-day. suburban points at noon'
were Most of the points bombed civilian evacuation places west of the
objection to fighting, and told the migration in large numbers of child- Debats," suggests that it is probable French artillery are violently shelling Laxativo Tea. Take a cup at bed-
Orphana would stay here per-
would mnnently.
tribunal that he was willing to serve rch
he Use RA.M.Chat sooner go into No Man's Land-and save a life than shoot somebody. Se they registered him as a non-com- batant.
"Later he was offered a job over- seas with a commission, and after talking over the malter with me he accepted.
"He is really doing his old work,
HISTORIC EXPLOIT
FROM PAGE ONE
and financially there can be very odds to give the bombers, their Hitle difference."
SEVERAL DUTCH
chance.
The Bridge Was Blown Up Fackag a blizzard of enemy fire. the bombers dived low on the far- ret.
Of those four crews, not ono man came back. But the bridge at Blaastricht was blown up.
SUEZ PRECAUTIONS
Rome, May 28.
at
SHIPS SAVED LONDON, May 29 (British Wire- legs)-Asked in the House of Com mans whether numerous neutral and)
The Popolo di Roma states that ad- Dutch: ships in Rotterdam harbour were evacuated in time not to fall miltance to the ports of Suez and into enemy hands, the Financial Sald will be refused to civilians with Secretary to the Admiralty said that out special permits.
that "the enemy will have to have the enemy lines of communication on some reabile to replace and repair both sides of the Rhine. the mass of material fost in the -course-of-the-severe-operations-ho:
har pursued since May 10."
General Duval adds: “It is on our defence line that we shall accom-: plish the first phase of recovery by breaking the enemy's' ardour,” Next will come the counter-offensive."
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HONGKONG ESTATES Formerly of Sungel Siput, Perak, the late Mr. Frederick John Davy, who died on February 27, 1939, test local estate worth $28,700. op- plication by Mr. G. G. N. Tinson for sealing-certified copy of probate of the will was granted.
was
Hongkong estate valued at $5,800 vas left by the late Mr. Robert George Royle, formerly of 180 Queen Victoria Street, Londen, and of 15 Woburn Squaro, Holburn, Middle- Thirty-six-machines look part in sox Mcoyle died at the latter the raid, dumping scores of missiles place on September 29, 1930. Mr. on the suburban districts, Chinese R. A. Wadeem has been granted leave cortiled copy of probale of
Aghters toole to the air and challenge se11.
ed the enemy craft. In the dogfight
a Japanese heavy, bomber was shot down at Lalfongyich outside Chung-
A widow, Mrs. Mahel MacGregor,
king. All the Chinese planes re- who died at 38 Pinecliffe Avenue, West Southbourne, Bournemouth, ou
turned.
and
Fuhlam University, formerly at October 15, 1939, left $9,500, Leave the to seal-certifed copy of probate of Shanghai and maintained for past two years at Felpel, north of the will has been granted to Mr. H. is made from herbs selected, pre- Chungking near the summer resort J. Armstrong. pared and blended by expert chirm- and the northern hot spring.
Even when other remedies Chungking University were attacked, Swastika Society, a school for war. LONDON, May 20. (Reuter) have falled this famous European Casualties In both institutions were orphans and a light industry factory.
among Two out of the three newspapers. WDS announced to-day that
antall, but a professor was the herbal preparation has proved of the Ministry of Information is establish- | greatest help to constipation suf- those killed at Fuhtan. The chancel bombed have already resumed pub- ing local commillees-in-every-borough ferers Packaged in two sizes 30.7lor was injured on Monday.
Hication. At Chungking University and urban district, under Mayors.or. and -$2,00, al chemists and depart.
suspended for Chungking University casualties the classes will be Chairmen, to disseminate informa- ment, stores or from
to-day were negligible, but the rald almost a week, tlon to the public.
caused more material damage since The Japanese intend to bomb of 50 bombs felt inside the campus and Chungking dally until the spirit. demolished most of the main build resistance of the Chinese is broken," ings, including the valuable aclence stated Crady, Okino, recently building in which the main portion pointed naval spokesman, at a Press
was conference to-day in Hankow. of Instruments and apparatus destroyed. So far there is no Saying that Japanese planes, had
number of
the bombed
this again Chungding report
were morning, he admitted that Chung- injured as faculty being as they
inside a dugout. The town ad-king itself was not a milltary objec
there "wers, many Jacent to the campus was also indis-tive, but said criminately bombed over a wide area, military objectives and anti-aircraft Japanese bombers have destroyed guns throughout the city, which or damaged in the past four days the must be abliterated. Fuhtam middle school, three news Third Power property would be declared United Dally guaranteed, ho papers including, the Central News, the headquarters of the Red Press.
The committees will act as steady- LONDON, May 20 (Reyter).—“We | ing centres to allay pubile fears and are dealing with a foe who will not maintain morale. hesitate at 03 per cent. riik if, at the end of the day, he can get a per anid Mr. cent. margin for victory," Ernest Brown, Secretary of State for Scotland, to-day.
The situation in Flanders, he said, was one which every exserviceman could understand,
This regional · machinery, already exists in each of the eleven head- quarter towns of the civil defence system.
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Commander, Lord mittees will issue information locally of Golden Grima Medicinale for everz Fulford Co, Ltd, sell a separate blend control over Dutch or neutral vessels, Military Governor of the Canal and great force and
were includes particularly the banks of the Cort, who was fighting one of the in event of a temporary breakdown, ach Ter contains not less than twel numerous ships sailed and norded every facility for reaching Canal, quays, gamolene deposits and greatest battles in the whole of their in the ordinary means of commumica-Falatings ingrediente; and they w
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