Around The Corner From Anywhere
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VOL. V NO. 17
For the Minnuteter of BOSCHKO TELEGRAPH Fức and on teibats af
SOUTH CHINA KORING POST, LTD.
The
Today's Weather: Moderate southerly winds, susty and varf- ablo in showers. Cloudy with periods of rain and scensional heavy shoWWCTS.
Noon Observations: Barometrio pressure, 0$3,0 mbe.. 20.38 in. Temperature, 81.1 der. F. Dew point, 75 deg. F. Relative humidity, 84% Wind direction, NE. Wind force,
knols.
Low water: 9 In a‡ 3.10 p.m.
High water: 4 prill 10.33°p.n.
Hongkong Telegraph
WEDNESDAY, JULY 26, 1950.
TRUMAN CALLS FOR PROMPT Rest After KOREAN
AND STIFF RISES IN INCOME TAXES
To Meet Korea War Costs
Washington, July 25.
President Truman asked Congress today for a prompt $5,000,000,000 increase in taxes, to be collected partly from individuals and partly from business.
In a letter to Senator Walter George, Chair- man of the Senate Finance Committee, Mr Truman proposed that a tax bill already passed by the House be used as a peg for immediate action. That bill is now before the Senate Finance Committee.
Mr Truman proposed that; Federal budget is already out Congress increase tax, collec- of balance." he wrote. tion substantially for the tax- able year".
apply
This makes It imperative
e urrested that Increases that we increare tax revenues Krowing deßcit Inpromptly Jest in 1958 corporation
new inflationary forces come and that the withholding Chate
defence Tax Individual carnings be detrimental increased for the last three fort."
months of the year.
to our
Mr Truman did not say how The President asked for the much of the new taxes would tax rise to finance in part the
come from individuals and how $10,500,000,000 increase he has from corporations, But proposed in military spending. Treasury Department
oficinis "We embark on these enlarged said that $3,000,000,000 of the expenditures at a time when
would
fall ividuals and $1,500,000,000 on corporations The
N.Z. Abolishing
Upper House
Wellington, July 25.
Increase
$500,000,000 would
On in-
rernatning come from
plugging loopholes and other
tree-Reuter,
THE EFFECT
Prezident Truman's proposals
The New Zealand House of would raise the tax of a single Representatives tonight defeated earning $2,000 a year from
$280
the present $232 by 44 votes to 34 the attempt
The highest wartime by the Opposition leader, trannually.
rate was $315. Peter Fraser, to delay a Bill to
abolish the Upper House-the "} married person with no Legislative Council
Mr Fraser
dependients earning $5,000 per fear would pay $766 annually compared to $631 at present and $975 at the wartime peak.
A murcied perton with two
$10,000 4 dependents carning
ear would be taxed $1,592 com- to $1,361 at presend and 2015 at the peak.
wanted the Bill shelved until the Government had introduced a provision for some alternative.
Nationalist (Conserva- The tive) Party Prime Minister, Mr the moving Sidney Holland, Hill's second reading, promised that a Select Committee would.
In upper income bezettel, the continue to search for a suit- able alternative but said that tax hikes would be very sleep
example, a sing the Government was determined Pr to, abolish
Common $100,000 a year wond Legis- the present tative Council,
is cony 46,798 in income buses, A which
ride and with an meme of u sidered uvelers.
The Bill with
probably
bezucllvory' sollars annually would given a sccend mading to-pay 884,274 compared in the morrow.
!present $770,000.—United Press.
Reuter.
EDITORIAL
تم
Action
Tired U.S. Army ground troops in South Korea rest after seeing action. These men are lucky to Conditions in have a good place to get a little rest. most
areas are very primitive.~(London
Express Service).
battle
Dino
At the
For
P.G.
Reservations
Price 20 Cents
REDS KEEP
HEAVY PRESSURE
Tel: 27880
UP
Eight Divisions Massed On
OnU.S. Stepping Up
American Fronts
DRAMATIC OPERATIONS
Tokyo, July 26.
Eight tank-lod North Korean Communist divisions werd amassed at the United States and South Korean lines on three fronts today.
The United States First Cavalry Division, threatened with encirclement, withdrew from Yongdong and established a new line three to five miles southeast, The United States 25th In-
Armed Forces
Washington, July 23.
A bill which would lif the ceiling on the expan
alon of United States armed forces and extend for ans year the terms of all the
nearly 300,000 men in the armed services whose in- Haiments are due to expire In the next 12 monilis, was sent to the White Hous
today for the President's signature.
by
The bill has been passed
both Houses
- Erca-Reuter.
of Con-
fantry Division was under the heaviest pressure on the central French Seek
front to the northeast of the First Cavalry.
In the southwest where the Communists
thrust to the extreme tip of the peninsula, the NEW EAST
United States and British navies opened an aerial
offensive in a dramatic operation that possibly GERMAN
portended bigger developments.
On the east coast, in the only Allied advance,
General Douglas MacArthur's United Nations POLITBURO troops threw the Communists back one mile north of Kanggu to a point two and a half miles south of the port of Yongdok.
Berlin, July 25. The 52 members of the Cen- tral Committee of the Enst
More U.S. Troops In Europe
Paris, July 25. France will press
for more American troops to be stationed in Europe at the London meet- ing of the North Atlantic Coun
German Socialist Unity Party cil Deputies, was learned in
Gen. MacArthur snid that than six divisions on a line! (SED), who were elected yester-sually well-informed quarters
on the 25th enemy
Koreans captured Kurye. 50 miles
west
of Pusan.
day at the close of the five-day party Congress, themselves to First Cavalry and running west to cast.
Another division
Authoritative quarters hero equipped day elected Dr Walter Ulbricht Infantry fronts the
with tanks is operating in General-Secretary of the bold the view that peace could hnd in action more southwest Korea. In this area. Socialist
Unity
only be preserved
Western Party. the enemy drove to the extreme Dr Ulbricht, the East German Europe is in a position success- tip by capturing Haenem, 20 Deputy Premier and a powertul fully to defend its frontiera miles south of the
any Russian invasion, previously member of the Politburo of the inst
pointed out, cardurad Mokpo naval base.SED, was the only candidate France, These North
not provide more than half of the 45 er 50 divisions estimated to be necessary to win The "battle against invasion".
Neither Britain
the Benelux countries were con- sidered to be 112 a
position to complete the gap.
here today,
it was
conlu
15
hor
Grows Teeth In Giant Expansion In
Test Tubes
London, July 25.
A Cambridge dental kurgcon las been, growing teeth for the past 10 years, by planting seeds in test tubers.
Mrs Shirley Hughes de-
methods monstrated her
to the Bellsk Dental As- sociation conference at Birmingham. She denies thaL her teeth will from seeds in humi gums
not yet anyway.-United Press
Government And The Public
Was
-com-
recom-
jl
up
row
Engineering Planned In Britain
London, July 25.
alsominate for
the new ty PUSL
The Party hat earlier elected The Air
Force opened
Politburo, which its new night operations in support of charged with the task of winning the troops in the battle line.
West Germany for Communism through wholesale sabotage ind diversion.
KEY OBSTACLE LOST North Korean armour and
threaten
from three | Infantry
sides the last quarter of South Korea,
where resistance
Pohan-Targu- bastal un
the
The new Palilburo now co- sists of:
Dr Wilhelm Pieck (East Ger- man President and co-chairman of the SED).
Dr Olto Grotewohl (East Ger- Britain expects to spend £2,200,000,000 on Pusan defence triangle.
The fall of Yungdung cleared man Premier and co-chairman
path of the SED). a key obstacle from the capital investment in her industries on new build-
Communist forces Dr Walter Ulricht (Depuly ings, plants, ships, oil refineries, power stations of powerful
down the
Premier), road and railway line and new machinery for the engineering industry.heading southwards
Herr Franz Daniem Heinrich Southern pro-Rau (Minister of Planning), The Government's Economic Information Unit towards Tacgu, vishinal capital.
Herr Wilhelm Kalster (Minis- disclosed this today in a summary of progress Al Yongdong, one of the ter of State Security)
Herr Hermann Matern (head made so far and plans for the future.
ot
20
Commission).
Dr Fred Celmer and Berr Friedrich Ebert (East German Mayor)Reuter.
grimest battles of the Korean war, so far, ended with a desof the Parly Central Control manufactures; perate rearguard action to pro- Dollar saving was a recurring and in-plate
tutor body sheet manufacture;lect the withdrawal of the main [theme of the repor
manufacture
office body of American forces to Be A sum of £450,000,000, or 20 the
type-sitions further south, astrile of
wasmachinery, particularly percent
total,
rallway Une to writers and accounting: machines, the road and keing devoted. to the manu-
Tecgi. facturing industry. Including ele-Reuter.
and anva sleel. Engineering goods provided nearly half of all visible
Britain, exports from the survey said.
the
Only about a quarter of the country's total investiment was Lin housing and the social ser- vices, compared with more than ja third before the war,
dollar saving oil Five large refineries, started during the last two years, have made consider- able progres, the report cald, and work on two more.is to
art later this year,
Gales Stop Mercy Trip To Lonely Isle
Melbourne, July 25.
It was, therefore, felt that in present circumstances
Europe would only be effectively pro- tected if a greater number of Anerleon divisions took their place beside the French, Bri
ish, Dutch and Belgian divisions that can be made available—
Hatter.
Different
Story
In Month's Time
are
Washington, July 25.
American soldiers, attacked Five a.m. Incident the Defence Secretary, Mr
North
In
Kowloon
from three sides, fought tena- clously under withering Korean fire to open an escape roule. The First Cavalry Div was walking in Hillwood Head
two
More than 5,000 warplanes to be added to the bir strength of the United States,
Louis Johnson, announced to- day.
"He said that the expansion would be trade under the $10,-
486,070,000 military Divi- A young Chinese named Shu
in containing slon succeeded
North Korean
Truman groups just after five o'clock this mom President
ho heard a woman from Congress. which, in a pincer movement, ing when
Mr Johnson made tried to block the road south-yell from No. 20. He saw the
G.I'e man woman, a young Chinese, climb nouncement after wards and trap the
aut on to a windowstill on the force.
second floor and jump into the road.
BAPTISM OF FIRE
It was almost a baptism of
Shu telephoned the Police.
fund that
has asked
the an- conferring with President Truman and the Secretary of the Army, Mr Francis Matthews,
Asked about the Korea altus-
fire for the First Cavalry Divi-When they arrived they found tion, Mr Johnson said, "Our slon which went to the front- the woman unconscious. She was boys have
A second attempt by ship lins only four days ago to rellave taken to Kowloon Hospital job over there.
doclors
to
sment,
done a marvellous We will have n reported that she different story a month from
Baltic
To
kept accurately informed of what is going OSE who pure a little thought for E public affairs in Hongkong. with on and the reasons guiding policy. Tymg
the issue particular reference to social welfare re-
with the promise of and the dearth of civic quirements,
constitutional reform, same day, a gesture amenities, will warmly endorse the views moving towards closing the gaps between
Government. expressed by a leading resident in our
Unofficials the
and the correspondence column urging
public a closer
which
technically they ЛЕС liaison between
government and
supposed to represent would be a welcome As we said on Saturday, Sir munity.
preliminary to the 'day when an Unofficial Hilton Poynton's solitary constructive majority in Council has been coun
tenanced. Making no attempt to decry Huggestion during his interview with the Reform Club deputation seeking his back- the public spirit actuating Linofficials, Ing fur the memorandum offering re- who have, indeed, done magnificent work, medies of social, cultural and economic
remains a fact that many
crilics
In 1947, 2,300,000 tons of oil
reach Dr Serge deficiencies abounding,
regard "title" to representation on the
were refined in Britain: the Utlevikoff,
who suffering the exhausted 24th Division, where they
Is mendation to referm enthusiasts to get Counell to be associated with a “closed erimate for 1953 is 20,000,000 from
inujor engage-"]was badly" injured. lonely war their first appendicitis on into touch with Unofficial Members of the shop." It is perfectly true that time and
Heard Island in the Antarctic,
retreating from Legislative Council. Interchange of ideas again subjects interesting to
CL began Another the cont
new industry de-has failed,
Yongdong when tanks suddenly never does harm; more often than not it munity, and perhaps puzzling,
veloped since the war was the are not
in the town, and manufacturing of clocks and Strong gaies and high teas appeared produces highly benefleial results; put debated because all explanations have
Communist infantry watches. Before the war the forced the Brilish freighter, hordes of
the American them at their minimum yalue, consulta- heen given to Unofficials for their private vitch-making
10 overwhelmed Industry was Perthshire (10,500 (ons). tions achieve a better understanding of information, and those perhaps more almost non-existent,
nbanden, her attempt to reach frontline in familiar pattern. Among
from the battle area. Reports other dollar-saving the sick inan, other viewpoints even when they remain
directly concerned are kept in ignorance.
the only doctor Industries, of which large-scale with a small Australian
wave after wave of An- said that in conflict. Sound reasoning, tuo, sup- There is no doubt at all that finis secre
North Korean infantry in hun- expansion WAS planned, thetoretic expedition. ports the assumption that much of value
tive attitude, which we do not believe in
dreds rolled forward, undaunted report said, were fren and steel
Stutts pumping can be extracted from apparently Iden- wilful in the proper sense, can be mis.
into them
open stle Castles In The Air projects when chievous, and certainly creative of they are sympathetically studied by hard-
accumulating frustration in the minds of headed practical men of experience in Individuals who start off vallantly, kcen local affairs. Quite obviously, 100, any to play their part in improving social scheme sufficiently solid in principle to conditions In the Colony, and nre win the support of the Unofficialy would
thwarted, not because of an absence of a compel government to give it serious
commonsense approach UT Inck of consideration. In the Reform Club's experience, but because they perhaps programme was to be found much deser-
have yet to aspire to the ranks of the ving study, notably on the social welfare
Chosen Few. That may be an enthely wide, and the possibility of adaptation or false judgment, but unfortunately It is a outright approval might easily arise from view widely held, a direct consequence of further exploration, with new minds con- official methods in administration. AE tributing their quota. Much more lm-
it is not a particularly good prelude to portant, however, than the special effort
the cultivation of A civic-minded made by the Reform Club to show the
electorate for future reference. Liaison government the way, is the insistence of
between the Unoficials and the Reform "Tory Democio!” on permanent ilaison Clab could make an excellent start to a machinery, ensuring that the public is new order.
STOP PRESS
Spitfire Crash
In Harbour
over
now,"-Reuter.
Demarche
Soviet
Moscow, July 25.
The Swedish Ambassador, M. Rudolf Sohlman,
and the Danish Charge d'Affaires, M. Hans Müller,
Reporting "foul weather" and by American
"critical fuel situation," the shells Perthshire's captain radioed sights,
hat he had been forced
General to
MacArthur's corn- abandon the mission.
munique, Issued
July
26) sald The head of the Antarctic withdrawals of United States Division of the Department of forces on the road backward mile territorial limit in the Baltic Sea. External Affairs sald that be from Yongdong
TACKI would try to divert another might be necessary,
at midnight yesterday evening made a joint demarche to the that further Soviet Government on the latter's claims to a 12-
of
The envoys were received by I The note informed the Soviet ship. The Inst report on the Communist pressure continued M. Valerion Zorin, one of the Government that Denmark condition of Dr Udovikoff, who junubated despite heavy ground Soviet Deputy Foreign Minis- could not recognise the legality was ready to operate on himself losses and amashing United ters.
of priceful Danish fishing A Royal Air Force Spitfire fald did not arrive in time, Nations air attacks on lines An official Danish announce vessels being stopped and de- fighter crashed into the sea in sald yesterday that his condition communications.
ment in Copenhagen on the tained on the open sea. the Lyemun Pass area about was unchanged."
SPECTACULAR DUEL Joint protest said that the 10.30a.m. today while on a
If the Perthshire's doctor had An American reconnaissance Soviet Government's
She hoped that such -attention
deten- routine patrol flight,
operated upon Dr Udoviko, pilot last night reported that was drawn to the recent daten- tions would not occur again. The plane has not been found the bill would have been in the spectacular artillery duel was ba- tion of
fishing vessels in the vessels and some Sewish ships At least 16 Danish Ashing despite a wide search
region of £10,000 (Australian), Ing fought five miles north of Baltic. RAF and the Royal Navy.
for the running costs of the Yongdong between a regiment "Denmark hoo never rearo reported to have been de- Perthshire are in the region of of the First Cavalry Division cognized any right of any of tained by the Soviet authorities £1,000 (Australian) a day, and and North Koreans,
theso States with Baltic coast- in the Baltic this year. Intense machine-gun the washes to claim a sea territory of been off her
These detentions were stated No. typhoon signal was she would have holsted at 12.16 p.m. today.
(course from 10 to 12 days also turning the battlefield into 12 miles,' the announcement to enforce the Soviet chim to
Reuter.
(Contd. on Page 5 Col. 5) added.
a 12-mile limit, Reuter. B
by"
A TYPHOON
1
tho
I