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VOL. IV NO. 81
Separate State For Karens Probable
London, Apr. 6-Au- thoritative Burmese sources Bald today's reports from Rangoon indicated that tho Prime Minister, Thakin Nu, was prepared to concede separato state to the former- ly rebel Karens.
E
The sources sald such a new Karen state would probably include all areas where Karens formed the majority of the population. Reports indiented that Thakin Nu had extended nesty to all Karen
21
rebula in Inscin nud other parts of Burma.
Burmese quarters said such .ก .concession would bo
"reasonable
Unsis for settle-
a
ment." They pointed out the Karens
the minority
were
among the population and ac-
ceptance of the principle of a separate Karen state might be the prelude to settlement with
口味
nther non-Burmese races such the Kachins, Chins and who had contributed
Shans,
to the drift towards disorder
throughout the country..
"""VERY CONSERVATIVE"
Brinesz"lind "Publistier
The
TODAY'S WEATHER: Moderate or fresh East winds guting at times. Cloudy with nocasional, rain.
Noon Observations: Barometric pressure, 1018.3. rabe, -30.07 in. Temperature, 63.2 deg. F. Dew point, 56 deg. F. Relative humidity, 78. Wind direction, ENE, Wind forco, 23 knota,
High water: □ ft. 0 in. at 3.50 p.m.
Ding
At the
Hongkong Telegraph
Telegraph 0.9.
THURSDAY, APRIL 7, 1949.
For
Reservations
Price 20 Cents
Austerity BRITISH BUDGET SHOCKS
Plus
Here is a typical study of Sir Stafford Cripps, who yesterday intro- duced an "austerity plus" budget to
nation.
the
Japan's Four
Billion War
Meat, Cheese, Butter Most Courageous Budget
To Cost More
NO TAXATION
RELIEF
London, Apr. 6-In his Budget speech in the House of Com- mons tonight, Sir Stafford Cripps, the Chancellor of the Exchequer, announced a reduction of the duty on tea by 6d. all round and on sugar by 14d. all round. The price to manufacturers and the public would remain unaltered,
Food prices would be raised: cheese fd. a pound; meat 4d. a pound; margarine 1d. a pound; butter 2d. per pound. These increases would be arranged with the Food Minister at an early date,
There would be appropriate reductions in the duties of molasses and glucose.
The result of reducing the duty on tea by 6d. a pound and on sugar by 10. a pound would be to re luce the subsidy required_to maintain existing prices by £11 million for tea and £22 million for sugar. The changes in the price of meat, margarine and butter, together with the change in the import duties for tea and sugar meant that the subsidies should not exceed £465 million in the current year.
The duty on light table wines | He announced the repeat of would be reduced 2/- a bottle legacy and Succession duties, and 12/ gallon.
Exchequer [but said that the The lax on football pools would be compensated by a
million was £242,000,000 than estimated.
morc
Damage Loss would be raised from 20 to 30 moderate. "lift in the scale taxation, so long as defence and
tickness
and
made orderly rule impossible." | pleted a two-year survey of percent on subscribers' local call since 1917 when the deficit was
The estimates were based on
£358,000,000.
same
There was not much fur- ther immediate possibility of the redistribution of national Income by way of taxation in Britain, he declared.
Ever Produced
Д
London, Apr. 6.--While Sfty million Britons were 18le stunned tonight by the "puritan” budget of Sle Stafford Cripps, thoughtful economists hailed it as one of the most coumaroons ever produced by the Finance Mini- ter of any country.
Few people expected any concessions, but most had been optimistic that the Choacellor would lighten the tax- payers' burden a little by reducing sales tax and perhaps taking a llifle off the price of cigarettes. The news that meat, cheese, butter and other foodstuffs would be raised produced tong faces, especially among women,
The few conécasions actually made brought life ex- thusiasm. Beer drinkers--ria w drinking less, to the dismay of the brewors-felt that only one penny off each plat of beer would make little difference to their pockets. Tele- phone users were particularly loud in their complaints about the Increased bills now facing them. Many were heard threatening to ask the Post Office to remove their Instruments.
Evening newspapers splashed such headlines as "Shop- phe Bl Goes Up" and "Beer Down-Food Up" across their front pages-Reuter.
WE ARE SURE HE IS WRONG, BUT NOSTRADAMUS PROPHESIES-
War Will Break Out On Sunday
Frankfurt, Apr. 6.-According to one interpretation of the writings of a 16th Cen- tury French prognosticator, war will break out on Sunday and last four months, ending in victory for the West.
The German astrologist, Johannes Lang, who is a disciple of astrologist Nostradamus, said the predictions call for an outbreak in Greece. Nos- tradamus writings, generally vague and oblique to casual renders, contain infallible predictions when properly interpreted, according to his modern dis- ciples.
1
Tel: 27880
Commos Want KMT Armies To Surrender
'Nanking. Apr. 7. The Pelping Communist Radio heard here last night de- manded the "complete sur- render" of the Kuomintang armles as a prerequisite to the achlevement of peace.
ta
The only outlet for news about the negotiations, now underway in Peiping for the cessation of the Chinese civil war, the Radio, In broadenst which was ap- parently in continuation of its war of nerves, said: "In the past we had demanded a peace settlement on Mr Mao Tse-tung's terms. The Kuomintang have rejected it. Now we allow the Kuo- mintang to talk peace on the eight terms and they want an honourable settle- ment on equal terms.'
"There is only one way to veace and that is complete sur- render to the people."
The Radio dismissed the pos sibility of a compromise. On this
point it declared, "there is no room for compromise."
A LAST CHANCE On the question of surrender -which some quarters believe is now being demanded in Fel- ping--the Radio had this to say: "Surrender is beneficial to the people and the country." It then went on to declare; giving you
last chance to render meritorious services to redeem
D
We Are
your guilt." Addressing itself to Kuomin» tang members, the Radio, ex- plaining the term "meritorious services,"
cald it
it describes "some
act that benefits the liberation of the people,"
This broadcast, made on - the ove of week since the de-
The Chancellor concluded
a warning with
that Britain
Lang, who has devoled much will grow into a full scale con- must not jeopardise hopes of prosperity
longterm by it too of his life to interpreting the flict by April 17th 2151,
or hosty desire to
The prophet anticipate work of Nostradamus, said that
described the
Reuter. benefits already
Nostradamus 'also forecast the third world war, like this, ac- parture of the Nationalist dele- failure of the Atlantic pact but cording to Lang: It starts in cation to Felping to discuss. offered a comforting prediction Greece
came. ps authoritativo 10th, 1940. ces close to Acting President on April that the world would "be re- A week Dr 10 days later a sources newed after this war and "great
will dictator"
attack L1 Tsung-Jen confirmed to
accomplished.
It was quite impossible to re- duce expenditure and therefore
percent from next Saturday, of estales duties.
social servloes were run on the Sir Stafford said he could see Sir Stafford exempted un-present scale. Tokyo, Apr. 6-Japan lost no room
for any
substantial employment,
"On the whole it seems that One informed source here sala | £4,244,000,000 worth of civi- alteration of taxation In a maternity benefits under the we should follow the the Karens were "very conserlian property, which
National new
Insurance general policy as last year for was downward direction. vative and anti-Communist" and one-fourth of the total na-
Matches would cost another scheme from income tax.
bur budget though not with so their promise of co-operation
He also reduced income tax sharp on accent on the urgent 3⁄41⁄2d, a
National would greatly, strengthen the tional wealth, during the
Health contri- nezd to 'check · Inflation," Sir Beer would be, reduced by 18.on Burmese government's Aght war, according to estimates
Stafford would be buttons from 477d to 38.
said. The duty a pint. with Communist elements.
made
DEFICIT REDUCED public today by reduced by 21/- a bulk barrel
Britain had Improved her "A gulf between the Karens the Economic Stabilisation of 30 gallons and the Burmese would have Board which has just com-
A telephone surcharge of 15 Fold and dollar situation greatly
added the source, “but with
feen would be increased to 30 £1,024 mliilon, Sir Stafford told settlement, the Kachins, Chins war damage,
the House. percent.
At the end of the first year and Shans should now rally to
NO CONCESSION the Burma Unlon and make the
of the European Recovery Pro- federni constitution [1 solid ometal prices of commodities Sir Stafford disappointed all ramme the dollar deficit was barrier against Communism." prevailing at the end of 1948, those who hoped for a con-
In broad terms Britain had оп purchase tax-30 Burmese quarters said the and officials sald It would cost u cession
In her policy 01 Aght now would be against the great deal hore if the lost pro-percent to 125 percent of whole- succeeded
restricting dollar many on
expenditure White Band and ited Band fac-perties were to be replaced at sale prices levied
articles
to what could be covered by tions of the People's Volunteer current prices,
In the semi-luxury Organisation,
class, "no change,” he said, who still
hold
"We intend to continue with He dismissed expectations of In addition, Japan lost £2,-
Income tax reductions by the that polley for the rest of the chlet
of the opponents of the 600,000,000
in war vessels and brief statement that he could ERP period," he added. government.
The Burmese-sources- would not speculate as to the alreraft, and about the wine see no room for any substantial
dullar pr
problem
can be found ultimate outcome in Durma, but amount in battle weapons, as down-grading of taxation.
"The
drm and resolute action Chancellor announced only in en-well as 1,855,000 human lives. change in tobacco tax, but on our part and consisting of an ernment today announced that Budapest, Apr. 6.—The Gov- it was understood they vlauged eventual settlement with
The biggest item in civilian said. "We are working on the enlightened poley of importa- the Communist-dominated Ilun- FVO factions through the widen-
four percent. in- tion into the countries of the gurian People's Front had asked ing of the all-Left front in war damage was for destroyed basis of
for
Western the
hemisphere." with
consumption tho government,"
buildings, which crease
the President and the Govern- or damaged
Expenditure
this Karens administering their own
year on de- numbered
necessary supplies 2,301,000 Including which the
ment to dissolve Parliament and was up by £47,000,000, hold new elections. affairs in a separate, autonomous 095,000 in the Tokyo area alone, of tobacco will be made avail- fenco state-Unitesi Press.
and there could not bo nble." --United Press,
informed Nources said the marked reduction.
move was necessary because of "We have to face the facts recent changes in Parliament as that as long as the defence, and a result of purges in the ranks social services are malatained, of the Smallholders Party. Par- whatever Government is Inament would be dissolved next power, a very high rate of taxa week and new elections held on tion will continue to be neces- May 15. sary," Sir Stafford sald.
much of the Irrawaddy Valle
as
EDITORIAL
110
a
of
Reds' Pattern For Peace
peure negotiations THAT the China
should become deadlocked before they have properly started is an unhappy omen: but if, as some reports contend, the breakdown in the the
reason for
reactions to Communials'
the recent clash between students and soldiers in Nanking, the pretext is so flimsy as to east grave suspicions on the good faith of Mao Tse-tung and his delegates. The Reds have issued a surrender ultimatum to the Nationalist Government, surely a most incongruous approach to round table peace talks, but nevertheless sup- widely-held view that porting a fairly the Communists have never seriously intended to conduct normal peace
Mao's conception of negotiations. peaceful settlement apparently is the pattern laid down in the surrender of Peiping unconditional capitulation cloaked by cleverly staged "pence negotiations," public repentance of his misdeeds in ever nasociating with the Nationalists by General Fu Tesi-yl, dispersal and absorption into the Com- munist armies of Nationalist troops, and Red occupation and control of key cities. Fu Tsof-yl copitulated in the North under these conditions and Mno has since held his actions up to the Nanking Jendera as the criterion for "successful” peace negotiations, and there are certain significant signs which suggest that the Communists intend to adopt the samo technique in dealing with the Nanking regime. Moreover, it may succeed. It is fairly certain that if the Communista 80 dcaire they can overrun the Yangtso and invest Nanking, Shanghai. and
Hankow. Their military power has been brilliantly exploited in the north and there is nothing to suggest they can be pre- vented from нcoring decisive victorles further
still remains, south. *There however, the political implications. Fur- force the military defents may Nationalists into subjection, but the Communista', achievement would be a hollow one if they are unprepared to take over the full responsibilities of government. There
nre brains and
ther
ability within the Nationalist ranka which could help to make the administrativo tasks of the Communista much easier, but it is doubtful whether these would be available under duress, Mao Tse-lung has many trumps stacked in his hand, but not all of them, and the hand now calls for shrewd playing, not obvious bluff. Eventual domination by the Reds ek national
#
Cabinet is generally. accepted as inevitable, but if this be the product of a tout de force It may suffer "both in prestige and effectiveness. The Nationalists have shown they are pre- pared to meet any reasonable conditions which will not only bring peace to the country, but offer a chance of national economic recovery. But they are likely to resist humiliating surrender terms, which must have one result-spreading of the war to the Yangtse eltles and the continued dislocation of the country's Mao Tse-tung today has the economy, opportunity of scoring a political victory as decisive as any he has gained in the field, but not by threats of further milltary action and the presentation of surrender ultimatuma,
dollar car
earnings.
1/
New Elections complete new era will begin. Western Germany and push Reuters that the Reds in Pelping
eventual solution of the For Hungary?
uny
Lang said the verse-like notes his troops through. Holland, had agreed to a cease-fire during of the Lyon physician who pub- Belgium and Northern other thorough check by Reuters failed
the
discussions. A present |lished his predictions under the to the Atlantic.. | tille ̄ ̄ ̄"Centuries" ̄ ̄ ̄said that column
will hend for fighting which begins In Greece, Pyrenees--United Press.
Another
thelo
And If It Should-
London, Apr. 6-The five Brussels allies begin talks tomorrow (Thursday) to dovetail their arms and defence strategy into the 12 nation. Atlantic Pact,
And the highest official source in the Chinese Govern- ment who was quoted by one report og denying that any understanding on ccaso-Aro had been obtained-Reuter.
NANKING RUMOUR Nonking 6-Runours persist here that the Communista have delivered an ultimatum to the Government to establish a joint committee in Nanking before Saturday to take over the Na- tionalist government ст the Chiefs of Staff of the Brus-how co-ordination сал be Communists will cross the River sel powers have already lald stepped up and efficiency in-within 10 days, It down that if war comes to proved, The Government statement Europe, they will jointly defend SA
These rumours came too late. series of service and tonight for checking with res- IMMEDIATE. EFFECT
enst light on the situation. It said front running from the Dutch interservice technical and staff
oficial ponsible
sources for committees with headquarters comment. Unofficial, qualified He inditated that the reducerely, "The leadership of the sea coast to the Swiss Alps.
That line is certain to be at Foutainbleau. Hungarian People's Front has
near Paris, quarters, however, believe that Ilon in beer and wine duties and the Increase in the duty on President of the Republic to way touches
asked the Government and the extended now from where Nor- which translates overall defence it is most unlikely.
Russia in North | policy and strategy into action. The rumours said that the matches would take effect im-dissolve Parliament and call new
Europe to Italy's Southernmost They are helped by an Inter- Communists suggested that mediately.
national Secretariat. elections."--United Press..
Mao Tze-tung be the chairman The Secretary General of the and Li Tsung-Jen the vice- Brussels Treaty Commission. E. chairman, and it was also Star Busman, was scheduled to alleged that government officials leave last night for The Hague informed foreign
He gave no date for the opera- tlon of the lower tea and sugar duties. Food price Increuses would be introduced at an "early date" in consultation with the Food Minister.
Sir
preceded Stafford
his taxation announcements with
an economic survey.
21
British Consul Transferred
London, Apr 6-The British Speaking about the stabilisa-Government has, at the request
1040.
The debt had never before been redeemed on anything like; such a scale, he said.
Ilp.
The
sources sald the talks will take place at The Hague and apart from the British, French,
Belgian, Dutch and Luxembourg Defence Ministera each country's three Chiefs of Staff ure expected to attend.
Responsible diplomats sald
diplomatic to attend the Defence Minis- corps of the Communist ters' talks-Associated Press. ultimatum.-Unlied Press.
18-Month-Old Boy Wears
Artificial Limb
·
tion of prices and wages, he said of the Spanish Government, they will consider the shape they that retall prices had risen only transferred Mr Thomas Bates think the Atlantic Pact defence one point and wages three points from the British Consulate at organisation should take.
Las Palmas, In tho Canary during the last year.
This organisation. is to be "These results, pinced against Islands.
full employ-
created by the Foreign Ministers Mr Christopher a background of
Mayhew, of the 12 signatory nations after
Birmingham, Apr. 6. The Ministry of Fen- ment and moderate de-rationing, Under-Secretary of
State for the Pact has been ratified.
sions recently fitted in artificial leg to an 18 months' are highly satisfactory and cer- Foreign Affairs, told the House
boy the youngest in medical History to be fit that the tainly denote that the heavy of Commons today
5-TIER ORGANISATION
ted Mr C. J. Simmons, Parliamentary Secretary. pressure of inflation has been Government did not admit the Spanish allegations that Mr
to the Ministry of Pentsions, disclosed when visiting Expectation in London is that casing off," he saiti.
The total of the national debt Dates had Indulged in hostile the Brussels powers will recom- pensions establishments in the Midlands today. outstanding at March 31, 1949, activities were justified, but it mend that the Atlantle Defence was £25,166 million, a fall of did not seem that Mr Bales Organisation should correspond He said that he could not so trained that he could nuw £103,000,000 since March 31, would from now on be able to with their own live-tier organt-disclose the name of the boy, perform a normal day's clcc-
Carry out his duties satisfacsation which comprises;"
who lost his leg in a road neeiirleal work and look after him- torliy in a Spanish post.
dent.
self with little help-Router, Mr Simmons also said that of
the
Ministry for special ame putation enzes during the next
Potato Post two years, 163, had already been
London, Apr. 6-A
com- 2-A Chiefs of Staff Com-delivered,
paign in Western Europe against mittee which is responsible for Ilo Montevideo, Apr. 8. The strategic and operational plan- with 700,000 war pensioners the cat pest to potato crops, had stated that in dealing the Colorado beetle, the great- Defence Minister, Francject ring. Froteza, and Representative
Ministry was concentrating on started, it was announced here Antonio Amoroso fought a pistol 3--A Supply and Resources the rehabiliation and treat-today, duel today as a result of an Board which stu^es availabiliment of pensioners as human
Dr. Wilkins, Chairman" "of the International exchange of Insults in a Con-ty of arms, equipment,
Commitica. Neither revenue nor expendi-gressional debate Inst week. materiais, production and arms ture had turned out according The men exchanged two shots, standardisation,
28-year-old Birming-at the Ministry of Agriculture to plan-far from it.
both of which mlased, and their 4 A permanent MIXtoryham man, who, after losing that the campaign would parti Expenditure had exceeded the seconds declared that the honour Committee which goes into the both arma and receiving cyn cularly affect France, Germany original estimato by £200,000,- of the adversaries was vindicat- slate of each country's arma- and car injuries, had been fand the Low Countries— 000, but total revenue at £4,007|ed.-United Press,
Iments, its manpower resources, fitted with artificial limbs and Heuter.
Britain had achieved a balance between national Income and national expenditure on current consumption und investment;
and the resulting situation was "for healthier than it was 12 months ago."
"Our task this year will be to maintain that good heath," Sir Stafford added:
"QUITE IMPOSSIBLE"
He had been withdrawn under protest, and another British offi- ciul sent to the post-Reuter.
DUEL ALIBI
1-A Committee of Defence
which Ministers
down lays
mendations, all on a basis of unantmous voting.
polley and approves recom- 1,500 cars to be provided by Campaign Against
:
raw being of this work was the for combating the inseet, said
case of