1950-03-23 — Page 1

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CHINA MAIL

No. 34543.

ESTABLISHED FOR MORE THAN 100 YEARS

HONG KONG, THURSDAY, MARCH 23, 1950.

'Price: 20 Cents.

“SKANDEX”

FIRE-PROOF CARD-INDEX STEEL CABINET

Swedish made 195 High Quality - Low Price Ask for a Demonstration Ati

Hong Kong Typewriter: Exchange Tel. 21435 # D'Agullan #UN

DEBATE ON THE BUDGET IN Comet streaks in for landing LI TO LEAD

Russians taking over Shanghai Country Club

The Hammer and Bickle is likely to fly over the British Country Club in Shanghal in the course of the next few days, according to a report re- ceived in Hong Kong yester.

day:

it said the building, which has been inspected and mea. eured by the Russians, will be turned into housing quarters for Rucalan officials or advisera who are reported to have ar. rived in Shanghai recently.

The Country Club-one of

the oldest and most exclusive clubs in China-is only one of many buildings that have been taken over by the Soviet Rus- siate in Shanghai.-Reuter,

Anglo-U.S. dispute over oil

Washington, March 22. The State Department has Ruggested that American oil companies

to agrec

accept

about 70 per cent payment in

ail in the British arcs.

LEGISLATIVE COUNCIL

Unofficial members criticise

tax increase, failure of

Services to pay

pay rents

ALTERNATIVE TAX PROPOSALS

The debate on Hong Kong's Budget in Legislative Council yester- day was featured by some strong criticism on the part of Un- official Members both of the proposed increased taxation un- der the Inland Revenue Ordinance and of the non-payment of ront for promises requisitioned by the Services.

Most outspoken critics in connection with the latter were Sir Man-kam Lo and Mr. P. S. Cassidy. Sir Man-kam declared that if Government's reply were not satisfactory, the Unofficial members would have to consider moving deferment of the second reading of the Bill until the Services had assumed liability, or move a vote of censure on Govern- ment.

sterling when they sell their Mr. Cassidy, referring to owners of property requisitioned last summer and who are still waiting for payment of ront by the Services, termed the situation a glaring case of injustico.

Informed offeinis sald this plan was presented by oll company executives

The basis of n

"compromise" proposal to settle their long-stunding argument

with Britain.

Most major oil companies are understood to oppose the State Department plan.

They feel Britain should be asked to pay about 60 per cent dollars and only 40 per cent in in sterling.

The

"American companies claim 60 per cent represents more ag- eurately the cost in dollars in producing oil they sell in Britala and the sterling area. They are willing to accept pounds sterling for the remainder with the under- standing they will be permitted to spend it

it gradually the sterling area.

In

Under the State Department plan, Britain would have to re- move its present ban on sale of American fuel oil in Britain and

ed

Only one Unofficial Member

Mr. M. M. Watson-support-

the proposed increased SIR MAN-KAM LO

taxation.

Sir Mun-kom In

་

Wirkmen cycling home in the twilight naar Hatfield airfield, England, duck hurriedly," "aur- prised by the sudden fiendish cream of the four jete as,the De Havilland Comet'airliner cobra Inte a landing, flaps down. She was returning from. Rome's Clamping after a test flight, piloted by ace De Havilland test pilot John Cunningham., She flew the outward trip in two hours two minuta, and the return fight in two hours 10 minutos. The Comut has just completed a flight to Copenhagen and back at an average speed of 480 miles an hour-(AP Pho97).

Trial of students in Saigon

Saigon, March 22. French military police and He asked that no Anal settlement Iwo thousand Vietnamese be reached at the London confer-police armed' with rifles and ence without prior reference to revolvers stood by in Saigon the CouncR.

today to prevent possible de-

gave the proposal qualified an- Substantial point Requisitioning

proval but reserved judgment

on the Increase in personal Dssessments.

day, March 29,

of controversy

Sir Man-kam then turned to Several Unofficial Members

requisitioning. The public, he proposed. nlternative forms of

necessity sold, realised the

for taxation, ranging from a business

Sir Man-kam Lo said the only quisitioned property naturally requisition but the owners of re- firms registration tax to increased taxes on cigarettes, liquor and substantial point of controversy expected to be pald reasonable various kinds of entertainment. was the increase. In direct taxa- compensation. Some owners had

Government's reply to the de- tion. It

borrowed On was sound polley to erected buildings bate will be given next Wednes- balance the budget in order to money, on which they had to pay hod Interest, and many of them wipe out what otherwise would not received a cent of compensa- be an anticipated deßleit of some tion. seven or eight millions. If the horizon were clear, and if there were no likelihood of trude re- trogression, he would oppose the suggested new taxation, but the past year had been one of stresses and struin and they did not see any let-up for some time to come.

MR. T.N. CHAU

its one-third cut in American oli Alternate forms

imports.

to

In addition, Britain would have

promise to permit American

oll companies to compote in 80-

called "third countries" which

now buy only British-produced

of taxation

oil. This would includo opening Mr. T.N. Chau criticised the

up the market in Argentina, Sweden and Denmark and would affotri an opportunity to get share

market totalling of H 3,000,000 tons o • year.

American oil companies

have complained to the State Depart- ment that the British all restric- tions at honie

"third In and countries" US$125,000,000 a year in business operations.-Associated Press,

mean

B

loss of their

Taipeh denies counterfeiter's accusation

Talpeh, March 22, The Finance Minister today da- scribed us a fantastic fabrication the charge made by s counter- feiter at Manila that he had manufactured bogus Unlied Blater $50 bills at the request of an agent of the Nationalist Government

by

The Minister, Dr. C.K, Yen, Bait there was no basis whatever for this accusation, which he said was all nonsense.

The charge.

was credited Manila police to Antipaz Pineda, 40, under arrest with four otheri for counterfeiting a large number of United States dollar bills—Ak¬ sociated Press.

The Weather

?

AL 0600 GMT (2/0.3, EKẾT)" the modetabų anil-cyclone domizata, Koren and the Ben of Japan with a ridge (of

high premure extending, BE'wards 'gher;

To- L

"The economy of the Colony is

He felt we should grin and bear the taxation "though he did not necessarily assent to the pro- posed amendments of the Inland Revenue Ordinance DS

regards

ever-mounting cost of adminis- not self-supporting: its main en- tration. He referred to

the trepot trade is subject to external colossal figure of expenditure factors over which we have no and felt that we could not ga control and which may obviously beyond this $200,000,000 without

affect Revenue re- facing ultimate bankruptcy. The adversely situation called for

ceipts." drastic trenchment and reduction Government expenditure.

of The number Government personnel did not appear to havo heen noticeably reduced and ex penditure remained undiminishod. personal assessments. He with- Mr. Chau eriücised the expendi-held comment until he had studied ture on uniforms and conveyance. the proposed Bui.

The Financial Secretary, he thought, was unduly alarmed by the monster of deficit. Was the latter so alarming that it neces- sitated the sudden and drastic increase of 50 per cent in Income Tax?

"Ths present form of taxa tion le not acceptable backuse

Ha supported the Financial Secretary's View. that the Colony could not be regarded as reasonably secure until It had reserves amounting to at

lomat a your's revenge.

**

Government's reply wers not satisfactory, the Unofficial members would have`to`consi- der whether they should move that the second reading of the Budget to deferred until ab- lity had been assumed by the Service concerned for payment _of_the_compensation......on...an equitable basis, or move a vote of cenaura on. Government, or take

some other appropriate

stop.

The speaker congratulated Gay. ernment on the substantial re- sults of its education policy but said the time had

when como Government should· · review the Government whole question of expenditure on education and de- cide on the most equitable allo- cation between the Education De- portment and non-Government

schools.

or

were

Troops, police in pitched battle

Malayan Reds

with

Singapore, March 22,

monstrations during the trial Two hundred British troops and a force of Malayan

of 12 students charged with "attempts' against the security of the State."

Iron chains, guarded by armed

..

police, barred all streets leading to The the military court In which the trial is being held.

students were members of “this” Vietminh” (Nationallek insurgent) organisation and had set up ́a aserat printing plant to turn out Vietminh tracts and orders,

The city was calm though many arrests were still being made as ing a result of the demonstrations and the riots last Sunday.

Several Vietnamese shops closed today in protest against the ar- rests and all taxi-drivers were on strike.

police are fighting a pitched battle with Com® munist guerillas three miles outside Ķuala Lumpur,

troops cordoned off on area, using flame throwers to drive the guerillos out of the heavy ́ ́undergrowth.⠀⠀⠀⠀ Trouble started last night when squatters in a camp, three and a half miles from Kuala Lumpur opened fire on the police, who wanted to screen the camp.

KWANGSI RESISTANCE

New York, March 22. General Li Taung-jen, who was deposed by Generallerini Chiang Kai-shick as Acting President of China, told the Press yesterday that he in.. tended to return to the Chin- cse mainland in six months to assuma command of more than 600,000 armed resistance fight- ers in his native province of Kwangs! and neighbouring provinces.

of

General Li said he would ignore-

his Taiwan and concentrate energies on the organising former

Nationalist troɔps

and spontaneous resistance groups on

the mainland into

into a co-operated fighting force capable •of over- throwing both the Chinese Come munists and Chiang Kai-shok'a Kuomintang "dictatorship."

The former acting president, speaking through his adviser. Dr. Kan Chich-hos, gald Pres sident Truman received him most cordially on March 2, twa days after Chiang Kai·anaši assumed power, Indicating the: United Stater ragarded him tha: rightful feader of the Chiness propia.

"""Third force"

General Li'Intimated he had: received assurances of American" support in his campaign to create a powerful "third force" China.

He said

in

in constant he-was wireless communication with hin

resistanco dreds of scattered

groups toughout South China and had instructed guerlila com manders to, expand resistance ng tivity by recruiting large num bers

of disillusioned peasants

and students who awalt an op- portunity to rise against the Com muniste.

General 1.1 asserted that a large number of Nationalist troops with their oflears who surrendered to the

thoy Communists because abhorred Chiang's dictatorship,

their arms and still maintain

equipment intact and are prepar ed to turn on the Communiata

when he gave the signal-United

Another raid on Shanghai

The engagement is now be for the British Government "to fought in the vicinity of face the realities" of the altua-

Christian Cemetery an

Talpeh, March 22, tion in Malaya;

Shanghal was dealt a fresh "It must decide betwean action attack yesterday by the Ne Cheras Road.

war dragging on for tionalist

Air Force, which Two hundred men of the Suf- now or a

years," the newspaper said. The folks cordoned off the area after

News Chronicle said that the again concentrated the polico had captured three Chi-

latest evidence from Malaya show- Lunghwa airfeld, despatches Usually

well-informed Viet- nese, one of whom has been idened that the situation, despite from Chusan Island stated toe. namese sources said that a general tified as a terrorist.

uficial reassurances, is not get day, strike order would be.. issued-to-

ting better."--Reutor. morrow,--Reuter,

Court reserves judgment in Singapore suit

Singapore, March 22. The Supreme Court today ro- served judgment in the Hal Hsuan

care at the end of the second

day's hearing in which counse. of both sides argued laboriously on the legal aspects,

The water situation was scri-

The claimants for possession in ous and he wanted to know the poaltion in regard to the Taf Lum the ault were the United States What Government and the defendants Chung . Valley scheme, steps had been taken

named were the chief mate and contemplated for the early aur mentation of the water supply?

He noted with regret the re- ciuction of the vote for Social

be restored in a supplementary

Australian aid.

Meanwhile, in Canberra, Co- lonel W. S. Kotit, Hughes, Liber- al, suggested in the House of Re- presentatives today that Austra-

la should send commandos Malaya to help in, the fight 'to

in South Eas

check Communism, l

Asi

FA CUP SEMI-

on

the

-The despatches said damage, done in previous raids was in.'” creared, 2 NAT

The runway at Langhwa, once a bustling international airport, wass

to FINAL REPLAY said to be unusable.

Colonel Kent Hughes, who was taken prisoner by the Japanese the Malayan campaign of the inst war, said: "Heal commando unil" should be sent to Malaya Instead of mainlaining a force in Japan which was of no real use.

He said the British army seamed to be dwindling and making

the same errore Malaya ait did before the war. British ministers seemed to be unable to see beyond the acting Captain, Yang, Soo-nec, Buez sings the war ended. and the third mate, Loh Chi-sze. Colonel Kent Hughes said ha The U.S. Government claimed belfeved to be unintentional the the Hai Hsung, one of 40 or more Impression that the · Australian Victory and Liberty ships sold

Times would refuse tionalists, on grounds the latter military aid if an oficial request had defaulted on their mortgage were made payments on the ship-United

Ho asked it the Prime Ministòr Press.

would

Immediately correct the impression,

It, G. The Prime Minister, Me. Menzies, said no statement had

It is inequitable and wrong in was more equitable In Its inci- Welfare. He hoped the 'cut would by the United States to the Na-himent, er ireported, in the

principle. Direct taxation should

never ba considered unless there is no other moans of securing the desired revenue. and thera Ara various other source of revenue apart from Income Tax.”

If the deficit could be made good by a form of taxation which

dence and more general in scope than the Laxation under the Inland Revenue Ordinance, it was acceptable to him,

its

· Turning to "Tiefence casts, $ir Man-kami Lo said the cost of all "defence measures amounted to Mr. Chau suggested heavier over 12 per cent of the total taxation of car owners, or a tax

budget. This was very high for

an bicycles, or an increase in Hong Kong.. Betting Dutics, or a further 'levy

on Luxuries Tax, or a Business

Tax

...

The percentage, he believed, was higher than any part of the

vote.

(Continued On Pape: 13)

Master drowned in Miranda sinking

Taipoh, March 22.

Thesd indirect taxes would Commonwealth, and even higher not be so resented as the pro- than in Britain, While the posed direct taxation, for of: Colony regarded it as its duty. population of some 3,000,000, only and privilege to play a worthy about one per cent over paid part in regard to the over-all The Norwegian Mastor was among those who were these taxed up to March, 1949. defence, Commitments ol the This eminently is not fair.

or Colony, it was obvious that its oquitable, and is rightly re-

shoulder duty and ability to Anancial responsibility ́ for sented."!!

Mr Chau referred to the Denialternal defence could only be on Claims for the 'meeting of which, the basis more by way of a token Japan and the Facile to the mathewald, Government had a duty or gesture contribution, than of aboard, all the rest of the crow

and obligation," "

a contribution based, on the ex- of- 47- having been Chinese.

to build a central block of such, token contribution, the claton

The Miranda had left Keelung Government offices, and palda heavy burden for defence mea on Saturday with 4,000 tons of tribute to the Director of Educa- sures already assumed: must be gold and copper ore, which ware tion for what he described as the taken into account.

being sent to Japan for reüning. Improvement made

Sho ran into strong winds, (aur ads in

Cbkur Chau concluded.

TrỪU TÔI ĐỂ Re Deaura là Ponaldo alobi

the China" posals from The Yauglqu 'mouth,

to the 's of Hong Kong The speaker welcomed the de- genditure by Britain. In any

Today's Forecast Moderate,

locally, E winds, Cloudy, with pensionist

kay

zalu party in the moralag,

·Yerlerday's Weatherin

Maximum, 18:9 day. Palj Minimum 1,6 domy Fal

Bushfast NASDA

Rainfall; ## "dim:=0.88- In. "Total" sinoe.

London, March, 22. There was no' score at the end of 90 minutes of play in the Football As sociation Cup seinf-final ·· replay today between Ar senal, and Chelsea, --

Extra time is being played-Router.

The intestassault was apparent ly mounted from Chusan Island, the Nationalist blockade base 100.

Shanghal. miles South East of

Nationalist warplanes niso onnes Hinued their new almost daily nt.

craft tacks on

off the Communist Red mainland. Target orcas ranged from waters West of Lul- chow Peninsula in South China to those about '75 miles from Shàng-) hal-Associated Press.

Through the windscreen 1950 VAUXHALLI

been made by the Government but added that points› raised by Colonel Kent Hughes would' cor- tainly be closely considered.

In London, the Liberal "NowS Chronicle" in? an editorial today declared. that the time had come

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