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The
Today's Weather: Moderate Easterty winds,' cloudy with cocasional rain.
Noon Observations: Barometrio pressure, 1012,8 mb#., F 29.01 in Temperature, 71,9 dex. F. Dew point, 69 deg. Relative humidity, 94%. Wind direction, NE. Wind force, 12. knots,
Low water: 1 ft. 5 in at 6,04 p.m. Eigħ water; û 16. 8 En æð. 1300 3.30. (Thumday). ·
Hongkong Telegraph
WEDNESDAY, APRIL 19, 1950.
Uncompromising Reply Pig Fire In
To Soviet Charges
U.S. MAKES DEMAND
FOR INDEMNITY
Washington, Apr. 18.-The United States to day charged that Russia had shot down the missing American Navy aircraft over the open
sca.
In a reply to the Russian note on the incident, the United States demanded that Russia institute a prompt and thorough investigation.
The United States further demanded that strict instructions should be issued to the Soviet Air Force that there he no repetition "under what- ever prelext" of similar incidents.
WORSENED
RELATIONS
PREDICTED
Washington, Apr. 18. — A vere and continuing deteriora- tion of American-Soviet relu-
The United Sinter reply was made in a note delivered in Moscow today in reply to the Russian charges that an Amer!- free on Soviet can bomber Bghter planes over Latvia on April &
The Amerlean note said that the missing Privateer was the
nly American
was in the air on April Bana
alloped neident
took place.
aircraft which
In the Baltic 8, when
the over Latvin
The note said that no trace of
tions is retarded an inevitable the Privateer's crew of 10 hot
following
since been found.
States the United note to Russia concerning the
The sternly-worded note, re- Jeeling. the Russian protest, sakl
loss of an American plane over that the investigation conducted. Ly the United States Govern-
the Baltic,
The Life Raft At Copenhagen
the
the
#.
Copenhagen, Apr. 18- The rubber aircraft life picked up la raft Ballic on Sunday by the British steamer Beechland
but "may possibly. positively, have come from the American Privateer aircraft which has been missing singe
April American Captain Jnek Kingler, who commanded Le Balile arch opera- flown for
Privateer, the told Bruter,
The raft, brought here today by air from Stack- holm. He being forwarded at once to the American Air Force Headquarters at Wiesbaden.-Reuter.
Soviet
Plans For
East Germany
Washington, Apr. 18.—A
Russia is expected to rejectment had convinced it that the State Department official to- United Navy plane complied strictly day predicted that Russia! uncompromisingly the
with instructions not to dy over would sign a separate peace Stales Government's account of
foreign territory. It did not
Eastern Ger- the incident and the Americon
fly over any Soviet or Soviet-treaty with demands.
or adjacent many within the next few Eccupied territory Oficials would not speculate territorial waters, the note de- months. about what action the Unitedclared. States might take if the de- Jnands were rejected,
Observers here were at a tosa
to explain why Soviet fighters hould have gone out into the Hallic to thoot down in unurn- ed American plane,
One theory plane WIR
was that carrying
Ambasador
mnes
of the a
value.
the
London
AUTUMN
City traffic came to a complete halt in the shadow of St. Paul's the other day when fire broke onj on the sixth floor of
Bistern. two
Pleture a Ludrate II building and trapped shows a general view of the scene. (London Express Service.)
Sordid Tale Behind Attempt To Destroy Airliner
Los Angeles, Apr. 18. A pretty airline stewardess said today that John Grant had told her he expected to be free to marry her a few hours before he planted an incendiary time-bomb on an airliner carrying his wife and children.
However, the 31-year-old aircraft engineer
Dino
At tha
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Price 20 Cents
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ELECTION NOW WIDELY PREDICTED The Cripps Budget Causes Sharp Disappointment!
London, Apr. 18.-The Budget speech made by Sir Staf- ford Cripps, Chancellor of the Exchequer, in Parliament today was aimed at convincing the nation that to avoid the great evils of inflation and unemployment austerity must continue and the general freeze on wages, prices and profits be maintained.
Fateful Days Warning
U.S. Army Chief's
Analysis
But the immediate Parliamentary reaction to his speech and proposals was one of disappoint- ment. Many politicians declared that it was un- likely to win extra friends or votes for the Govern- ment in the autumn General Election which is now widely predicted.
Three union leaders were doubtful about the effect the Budget would have on their followers--- whose loyalty to the official wage freeze they have been striving desperately to hold.
{ }
Experienced industrial] (4) Closing ຄຽ an income observers tonight suggested tax loophole in the higher in- come groups, he announced that Washington. Apr. 18. that the Chancellor's tax
tax free payments by firms to General Omar Bradley, the concessions would not be their high executives would be United sufficient to stop the rising subject to surtax retrospectiva Chairman of the States Joint Chiefs of Staff, demands for wage increasen. to last year
(5) The beer duty would "the Undaunted by the Govern remain the same but the gravity warned tonight that real danger of our times"ment's precarious hold on power of beer would be increased by the Chancellor of the Ex-
three degrees, making it about might come if Russia suc- chequer, Sir Stafford Cripps,
half the prewar strength. cceded in equalling the refused to bow clambrous
to demands
The Income tax of
relief an- 3,000,000 trade military strength of the dema United States and the North unionists for big cost of living nounced by the Chancellor ap- reductions or to won the middle plies to the first £60 of taxable income at present tuxed at three Atlantic Pact powers. jelang by slashing taxes.
Anierica's top military lender A Government defeat on any shillings in the Pound and the caid on a radio programme that of the budget's proposals would following £200 now taxed at
Le chillings in the Pound. attack mean a general election. an enemy would daro
Sir Stafford's biggest con-
'the acy proposal to tax only if the Western Democracies were unprepared, weak and not cession to the nation's 22,250,000 payments to high executives of
TVDS an adjust- rms is a sequel to the deci "The next few years, while meat in the lower rates of in- sions of two big automobile reducing them by concerns last year to make pay- we are rebuilding the forces of cume tax,
leaving the top ments of £100,000 to their chief the Atlantic Treaty along with one-sixth--but
Intact at nine executives-Sir Stanley economies, we ordinary rale
Black rebuilding our
he shillings in the Pound.
ot the Standardi Automobile quite vulnerable." will be
The effect of this will be to Company, and Mr Leonard Lord declared.
"During this Ume, our tallation fares entity bo
But the overall effect of then the condition that they would greatest deterrent to war.
for budget is to increase the ni- our forces "Later, if collective security are built uption's taxation by £1,800,000 a and our retaliation force our year. bombs and aeroplanes are equalled by another then that may be the real dan-
Sir Stafford, budgeting for an ger at our times."
Held at the Unlied States Income of nearly £1,000,000,000 nations must do everything to changen
alert.
wage earners
To give about £11, 59. the lief to many laxpayers.
year
Power,
OTHER CHANCES
and the North Atlantic Treaty this year announced these other
of the Austin Motor Company-
never work for rival 'manufac- turers.
Mr that "I must be concludetf
Henry Cox, the Depart aircraft fret!ment's expert on East German Soviet military
the United Press Ameriem affairs, told unarmed upon an pine over the open sea, follow-that he had said as early as last the Russians air-November that the American in which plane was lost," the note added, would make such a move with- a year and that he stood by *The
It was quite United States has been in this prediction.
Russians might structed to protest in the most-possible the olema
announce the treaty this choose to artalost hightyviolation of
International Law during the May meeting of the Lecret and valuable new elect- and of the mast elementary Three Foreign Ministers in for its propaganda equipment which the rules of peaceful conduct be-Lorton,
FOOD SUBSIDIES Tullic
authorities ween,nations, military
The Chancellor Soviet
refused to wished to obtain.
"The Unite!
Reports from Germany in- States Gover!-
reduen “Britain's food subsidies that the Soviet diente that Russia not only According to this theory the ment denunds
below the level of £118,000,000. He promised that there would Suviet fighters intercepted the Goverment institute a prompt plans to annotince a peace treat told the police he had no intention of marrying
East Cerman separate investigation of and American plane over the Baltic and thorough
during the Foreign golden-haired Elizabeth Suomela, despite her story
relief where saving for old age and ordered it to fund in Suviet-this matter lu order that the state
Ministers' ineeling but also above may be
standard controlled territory.
ops that he had courted her for several years and had
be an inquiry into income tax
toets set forth
petrol or retirement was concerned. might withdraw her troops.
bulld
(1) The economie up military,
Stafford referred to grow- When the Americans refund conflemed to its catisfaction,
Departinen leials
political strength and unity ration now allowing noturists to
a nonth would ing public
of the criticism to emply, the Soviet fighters "The United States Govern- However,
But the tax would nation's housing shortage by nil- be doubled. Sment further demands that the are sceptical about troop with told her he was separated from his wife.
Grant admitted he built the noon and let me know how it and, at the same time, make all cover 90 miles
offorts that would lead to u
nine
gallon,nouncing that the Government's to up
pence bomb and placed it on a United came out."
permanent peace. Airinus plane in a plot to kill
for the She added that about a year
combination
the waiting the price three shillings building programme of
next three years would be re-. his wife and two children.
The said he had been driven crazy after they met Grant asked her North Atlantic Powers, and the a gallon,
said she principle that an
stored to 200,000 houses a year. (2) The purchase attack against by debls and was motivated by to marry him. She
A cut to 185.000 during the waited patiently for him to one would be an attack again high-priced automobiles would
ceonomy drive be reduced from 08-34 percent
Inst autumn the thought of the US$25,000 in-
would in time have surance his family drew shortly through with
percent. But a bur-
outery which was me to 3314,
roused deterrent 357 "rather persuasive"
fax of beste going aboard an airlinerdings.
335 percent exploited by the Conservatives effect, General Bradley submit-chose
commercial bound for San Diego,
be put on
at the February election, i.ted.
The
income tax relief will te:fit n large number of workers but it will not help the lowest pold in Industry-for example, the married man with
(Contd. an Page 5, Col. 3)
shut down
the United
interception, the theory - Reuter,
plan tu destroy wines to the Im strict
EDITORIAL
and entegorical (Contd. on Page 5. Col. 5)
drawals. They contend
the Soviet is not yet ready to take this step-United Press.
An Illuminating Protest
HREE weeks have elapsed since the Tudget in the form of expenditure
10
estimates received the approval of Legis- lative Council and no official disclosure has been made outlining the final decisions of Government regarding the methods to be employed in raising the additional revenue required. It is, perhaps, far too early to proclaim this as a good sign, but it is interesting in more senses than one. Public opinion expressed itself forcibly in opposition to the Financial Secretary's main proposal, an increase in the Earnings and Profits Tax, and on assurance wAS given that the original programme would be submitted to further study, giving duo consideration arguments advanced Items. For the particular against Financial Secretary, it is a heavy respon- sibility. Much that he would like to do
in terminates
disappointment, for enormous as is the Budget, surplus money His concluding speech is not general. revealed a certain amount of sympathy those who looked for the attitude of nskance at higher salarles tax and that does not render his considered decision any easier. We should, however, feel remiss if we did not say a word more ilne about
selected another revenue producer while there may still be time. The meaning of the proposal to impose a tax upon the operators of neon-signs did not Immediately sink into mlads deeply engaged as the result of concern
salaries tax. Latterly, a feeling of something equivalent to dismay hins been growing, and with it a Holld objection to a more or less petty for condemnation art tax. Grounds
That which dominates the Is the most commentators
numerous, picture for
over
08
&
in
attractiveness of the city streets, rising higher in the scale as further neon-signs appear. The astonishing beauty of the harbour front on a clear moonless night prevokes in visitors, passing through the Colony, flattering impressions of Hong- Not kong, which they take with them. that this in itself presents solid reason but it drop the taxation scheme, demands thought on the basis of growing fears that neons will be discouraged. Not altogether minor factors, also, re the min vastly improved lighting in streets, facilitating traffic, and, moreover, operating quite effectively as a prolec- tion against prowlers and thieves. Above all that, is the odd distinction made be- tween a tradesmon's signboard which is normal unlighted paintwork, and that whose only transgression is attractive Illumination. Not ten percent of the
be Colony's ncon signs сап correctly described as genuine advertise- menta, any more than fluorescent barder- lights within the window. Is it legitimate for government to penalise a merchant merely because he favours good lighting? taxable? Again, when is a neon-sign Supposing the owner, in protest against the tax, disconnects the electric current, is ho sill Huble? In short, it would be excellent were the Financial Secretary to nel with courage and admit the possibility of a serious mistake. The recent sugges- tlun that revente could more readily be obtained from a purchase tax on light bulba, imposed at source, and subsequently passed on by a slightly higher price, is sound. A change to thint course would at least be equitable. Better still, it would produce a greater return.
HIG
Mins Suomela's romance with Grant was uncovered when the police
divorce proce!!«
and
tax on
Would STRINGING ALONG
He added that the forecn in vehicles to restrict them coming Alaska noW were no! strong on the home market.
to rural (3) A slight rellef told however,
the enough and that he would like
by an WOR "stringing her to have more troops and al: tariners was
using vehicles operated
lenrued that the car he police he the nirport was registered
Grant,
Lin-
provided
had used to drive his family to along Mia Suomela was in squadrons in that area. Reu-annual grant to farmers
her der the 31-year-old stewarders, ears throughout the interview. ter.
the disclosure of After Miss by ofteers, Contacted
affair with Grant, the resigned Suomela readily admitted her
assistant
of supervisor romance with the aircraft en-s gineer, but said that during the stewardesses for American Air- three years she had known him lines,
he was separated; e clained from his wife and would be divorced.
The tearful stewardess saht, "Yesterday morning he told me he was on his way for the dual caring for the divorce. He sald he would call me in the after-
TRIESTE VOTE
Belgrade, Apr. 18-Belgrade Radio nanounced today the election results in the district
Of #
The police placed a watch of Capo d'Istria in the Yugoslav over Grant after they discover-Zone of Trieste.
total of 24,202 voters, en noose fashioned from cloth
percent voted for the In his mattress in the Venice 87,0
Front, Detective People's
1.7 percent faci. sub-station
for the Socialst Party Lieutenant J, R. Goldstone also voted
percent voted for the reported that cyanide pills were and 1.1
Socjallst Party- Grant hod Christian the car found in
Reuter. been using-United Press.
Macassar Accusations: Holland's
Pained
Astonishment
were ordered not to
Defence spokesman
sold.
The Hague, Apr. 18.The lo bring back deserters to bar. Federal troops landing on Dutch Government has told its racks, suggested that only time Celebics High Commissioner in Indonesia, would show to what extent this shoot unless fred on, a Ministry Dr Max Hirschfeld, to ask for a was due "merely to impotence," of clarifiention of an Indonesian and asserted Government statement alleging confidence in the that the Dulch have not fullled not taeir commitments towards In-fallures of this kind.
Jonesin..
that Indonesian The main body of government Dutch was troops was expected to land be- strengthened by Dutch fore the end of the week,
The strength of the invasion force was estimated at 2,000, but Small reconnaissance units of military sources sald the gov» · The statement, issued by the the Indonesian Army landed ernment was prepared to send Indonesian Ministry of Informa- today ut "several places" along 10,000 troops to East Indonesia
lon, has caused "pained as the coast of rebel-held Celebes, to crush the revolt. tonishment" in The Hague, ac•
Macassar was reported quiet, cording to an official Dutch to command operations against
the dissident East Indonesian Bithough dispatches
Colonel Kawilarang, appointed
sult some
spokesman.
Government
It alleged that for a second forces who revolted under the shooting was heard last night
by leadership of Captain Abdul cutside the town. time, with the uprising Capinin Andi Abdut Azls in Azle, arrived this evening from troops who escaped capture by
former Dutch
colonial Macassar, the Dutch had failed Medan, where he was formerly Azle
Sumatran commander. forces were reported to be al- to full their obligations under North
scize the main the round-table agreement last Colonel Kawilarang is expected tempting to
to establish headquarters at pawer and radio station situated It claimed that the Dutch Sourabaya, former Dutch naval near Macassar, — Reuter and
United Press. military commander had failed hase in Jaya,
year,
olt.
on taxable
Sir
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