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THE predz "special to the Telegraph" Is used by the Hongkong Telograph" to indteate news which is strictly copyright under the provisions of the Telecommant- cations Ordinance, 1936, Buch new DI bears the inglestion "UP" is received in Hongkong on the date of publication by the United Press Associations, who re- serve all rights and forbid repúbitcations, ether wholly or in part without previous arrangement

After all, we are lucky that the war stopped the Olympic Games, otherwise the Italians would be winning all the racesl

MR

THE

REPLIES

BUTTERS

UNOFFICIAL

FROM PAGE ONE

theore

the

from

ΤΟ MEMBERS

Official

Japan Makes

Overtures To Britain

submit that represents 11 certain degree of optimism. Several Members have reminded us that of recent years actual revenue has exceeded

and, therefore, should of what I stated in connection with estimate the general reserve balance, or so continue to do so, and that we should DEEDS AS WELL AS WORDS called surplus balances at the last be satisfied with thinking that all

meeting of this Council, the Hon. Mr will be well and that everything

of point view wil TWO events were reported by Tre-fong proposes that we should the revenue

LONDON, Feb. 19 (Reuter).The Japanese Foreign Minis- to automatically turn out satisfactorily. cable yesterday which can be have recourse to this balance

One Member has gone so far as to ter, "Reuter's" diplomatic correspondent learns, has addressed a calculated to make a substantial Bnance war expenditure next year,

accuse me

of conservallam, caution special message to Mr Anthony Eden, the Foreign Secretary, In and he adds the interesting contribution towards dispelling medieval survival which a

argument that a balance is and pessimism. It by pessimism he which he offers to take whatever action be needed to restore

modern means endeavouring to foresee and

normal conditions not only in the Far East but anywhere in the tension which has grown to such proportions in this part of state has no need to keep. 11 may obviate difficulties, I confess I am

be possible in a totalitarian economy pessimistic, and nothing that I have the world.

In the specchies of Hon. This official endorsement of the world. One was the an-to dispense with a balance as it is heard

with normal Members to-day has relieved my the proposal made by Mr. Ishii, nouncement that Mr Shigemitsu, backing for currency, but this Culony pessimism.

possible to dispense the Japanese Ambassador to does not possess a self-con

t-self-contained eco-sought to build up hidden reserves the Japanese spokesman yester London, had shared a long con-nomy and is largely an entrepot for and have written off expenditure in-day gives it a very different im

only wish

portance from the apparently versation with Mr R. A. Butler, China and is prosperity depends ocurred on food reserves.

the had mare hidden reserves to con- casual suggestion of a sub- during which the Ambassadora large extent, I submit,

soundness anti orthodoxy of its fess to. The expenditure on food gave an assurance that Japanese nances and the confidence they in-reserves has not been written off, ordinate official.

It becomes a serious approach from does not intend to attack either spire both locally and in China, though it la not possible to estimate British or Dutch territory in the I stated at the last meeting that how much of it will be recovered, and the head of a government which is are at present dealing with the in contractual relationship with Ger- Pacific; the other was the arrival our reut balance was about $7 million

dollars. I exaggerated.

Ir these many and Italy although Mr Ishii in Singapore of thousands of

re for next year.

have to be maintained expressly stated that those countries Widows' & Orphans' Fund Australian troops, fully-equipped.eserve-balance-of-this-Colony throughout the year there is bound had not been consulted,

Naturally-Mr-Matsuoka's message ed with the considera-

ns

on

actuarial in-

*

It is said that I have

Taxation

Exchange At A Glance

SELLING

T.T. London Demand London

Shanghai

T.T.

T.T. Singapore

TT. Japan T.T. Indla -T.T.-U.S.A.

T.T. T.T. Batavin

Manila

Bangkok

T.T. Salgon

TT. France

T.T.

Switzerland

TT. Australia

4 in/s D/P London

- BUYING

4 m/s L/C London

1/3

1/346

.25%

Nom.

30 d/s India

.84

4 m/s L/C U.S.A.

4 m/s France

U.S. Cross rate in London 4.02% U.S. Cross rate In NY....4.02

with the most modern war

1 have informed Hon. Members un to be a loss in turnover and replace materials, who are to remain in previous occasion is impressed with ment whatever eventual sum may will be received Malaya with other British.and a trust in so far as the compulsory find its way to revenue. And to ilon which the authority of the sender Indian forces for the purpose of contributions of Government oflcers charge the cost to expenditure in-demands but there is not likely to be

to the Widows and

and Orphans Pen- stead of opening a ruspense account any variation in the general and in- defending the States against any sons Scheme have been paid to re- is the proper way to maintain con- mutable principles of British policy.

Eden's Statement attack which might be launched, venue and no fund has been estab-tro in the hands of the legislature.

which

LONDON, Feb. 19 (Reuter)-In- lished to meet the outgoings Both Mr Shigemitsu's state- Government has undertaken to It has been alleged that by these vited at question time to-day to make ment and the arrival of Austra

devices and on the pretext of an a statement on the Far Eastern situa So far, income in this connection lian reinforcements indicates a has exceeded expenditure, but the unbalanced budget I have raised the lion, Mr R. A. Butler, Under-Secret-

"though itbogey

Income Tax. I do not pro-ary for Foreign Affairs, said that as sald without realistic attitude by Japan and position is not

been increased tension over cannot be sald the British Empire, to the situa-vestigation how

carmarked for this fund, war Revenue Committee, but it is

can well be left to the reconstituted in events, hotably over the dis- tion in the Far East, and both should be how many million dollars on to discuss that matter, which the House was aware there had re-

is that position am afraid the events are heartily welcome. but

A Japanese official spokesman had Furthermore, there must be the reserves with which the Hon.y duty to point out, as the Ilon. pute between Indo-China and Thai-

Mr Ll Tse-long wishes to meet next Mr Dodwell has stated that this land.

Colony

is ridiculously lightly taxed taken into consideration Mr year's extraordinary commitments do

In comparison with Home, and in my made a statement to the press yester Butler's ridicule of the sugges-not morally exist, though they can opinion it must have balances, and day which will doubtless come to the tion that the disposition of to a certain extent be made avaliable adequate balances, not only to meet attention of members of the Ilouse.

In an emergency,

Yosuke Matsuoka, the Japanese British armed forces in Malaya

I agree with him that balances an emergency but to even out the

LONDON, Feb. 19 (Reuter)-A big:" in any way denoted intentions of may properly be used to meet an fat and the lean years if any planned

development is to be undertaken. but only a financial emer-

who have joined aggression; that statement was

Cinergency,

In this connection I would state in courteous terms and on the same scarcely necessary. Britain rency and there is none such at pre- that Sir Geoffry, Northcote, shortly general lines as the statement just trial of officers

sent, and I

to treat next decline

farre before he departed on leave, instruct-referred to. The terms of the com- General da Gaulle's movement is to miles west of Vichy, states a Vichy. does not seek. in this part of the budget, though Including red me to prepare a programme for munication, are at present receiving (begin on February 25 at Gannat, ten world anything more than the defence expenditure, as an einer-

dispatch to the official German newa No Compromise

agency. maintenance of the status que as rency and not mainly a normal bud- this Colony in connection with the due attention.

But if we have no balance to Colonial Development and Welfare

LONDON, Feb, 10 (Reuter)--"Brl-

The proceedings will not be open. provided for in a number of get.

considerable time on the tain will not entertain peace proposals to the public. international treaties. This has draw on to meet unforeseen expendl-Scheme, which I have falled to do.

ture how are we to carry ont

The it

I have spent consimore I lavesugated until a complete victory has been been so explicitly declared and experience of the recent loan is a problems or they appeared and the gained," is the categorical reply of revealed that no nation can be warning that we cannot borrow at the greater they

year's

Mr. Eden had received from Mr Foreign Minister, a special message

Vichy Trial

in any two minds about it. To least at a reasonable rate of interest. necessity for elaborate planning eme me tag on the Japanese man's FOR WAR AREA

the same aseurance,

before the Issue, as the

#

on

Recent Loan

bracing harbour development, town menting spokesman's suggest otherwise is a deliberate distortion of clear

Incidentally the Hon. Mr Tam has planning and slum clearance, agri-statement that Japan is ready to facts and

misinterpreted my remarks in that culture and fisheries, health and, mediate in any war if invited to do Overscas Chinese To Visit

I education became increasingly spo

The London authority that the points out

Chungking knowledge. Japan, in particu- connection. I deplored nothing.

that it is most

CHUNGKING, Feb. 20 (Central lar, can accept this without stated that Government took up to parent.

In fact, it decided on that Fisheries & Agriculture

Japanese spokesman should feel qualms, and the cause of so much.

amount

Sing- on to make such an offer News) Mr Aw Boon-haw, Chinese- All that we have been able to do

called

magnate of Singapore, Mr. Li much of the political tension and prospectus indicates and was not left has been to include with the ap-

in conditions not appreciate the

fongkong and several other overseas worry in the Orient would with that amount in its hands; but the proval of all Members of this Coun- adding, "The Japanese evidently do kiu, well-known Chinese leader in

war Chinese leaders are

coming

to CHUNG evaporate if Mr Shigemitsu's de- fact remains that there was little eil, provision for the Fisheries Re Europe brought about by

search Station and the Experimental started by their ally. As the British

king shortly to

to Investigate Industrial claration could be accepted with public response.

In my experience this Colony never Agricultural Station in the New Premier emphasised over and over

Commission

Overseas The enjoys a prolonged period of financial Territories in next year's estimates

Affairs, the Ministry of Social Wel- Very pointedly Mr Sumner normality with a steady and reason to be met from Colonial funds. That again, there can be no compromise" conditions in the interior.

New Life Movement fare, the Chungking Municipal Gov- Welles observed this week that ably predictable income. It is either is only a small proportion of what is

Enjoying a

boom or sultering front a required. the United States prefers deeds depression. At present I submit it is

It may be said that such develop-

CHUNGKING, Feb. 10 (Central ernment and other government or

ganisations concerned..are making. to words by Japaneso spokesmen having a boom, and in spite of the ment is not practical politles at the when it comes to a question of high cost of living a great number present time. That may be so but Newa)-Chungking observed

ure enjoying the budget was framed as I stated seventh anniversary of the New Life Preparations to welcome them.

contests, exhibitions, muss weddings, Native Sympathy For

and special Pacific, implying, and rightly 50, urge local expenditure on defence defence and social services.

Allied Cause that words have become rather has served to pump consumers' pur- There is no appressive taxation in athletic competitions

Madame Chiang Kai-shek started cheap and in more cages than chasing power into the pockets of Ilongkong at this time, and I submit movie shows.

now taxation pro-

LONDON, Feb. 10 (Houtor).-Na- one, meaningless. Undoubtedly many and has stimulated trade. If that none

lime

able to this Colony

the newly-completed Loyalty tives of Tanganyika, in the areas of to meet posed is oppressive and that this the anniversary observance by open- provide Japan has manoeuvred herself its expenditure, even swollen by our Colony ought to be able to into a delicato position in the defence requirements, it is now, and from its current revenue all the ex- Memorial Hall of the New Life Social Walkizi and Ngrumbl are determined citize their part along with other of the Empire in helping the Far East, but there is still plenty that expenditure should be met so penditure included in these estimates Service Centre,

London men and women rendered of opportunity to free horself far as possible, and I submit that and even additional expenditure if from the shackles and to avoid means entirely, from current revenue. necessary. I appent to Ilon. Mem-

bers not to spend the mengre re- In mind that the purpose of that ex-homeless through the "blitz."

They have donated respectively BU plunging the Pacific into the

The revenue calculations for next serves inherited from the past nor to penditure is largely defence and maelstrom of war. The right year are based on the continuation of seek an overdraft on the future, but social services, or, if I may otherwise and 125 head of cattle, their most

distress of the air-rald homeless. kind of deeds, as well as the the present prosperity of the Colony to endeavour to meet current expen- express it, the preservation and pro- cherished possession, to relieve the right kind of words, are needed. and in the present world situation Iditure from current revenue, bearing motion of our civillaation.

In this

the

international relations in the of people red protony oven the tilrendy to make duc provision for Movement with meelings, voentional

at any

Continued Prosperity

of the

to

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