1953-03-02 — Page 9

THE CHINA MAIL, MONDAY, MARCH 2, 1958.

Industry TAX RELIEF PROPOSALS To Reduce MESSAGERIES

Output Higher

Statistics Issued

By The UN

United Nations, Mar. 1.

World industrial produc- tion in 1951 was twice as high in 1929, and about 75 per cent higher than in the 1937 pre-war year, accord- ing to the United Nations Statistical Year Book for 1952 published today.

The year book was prepared in co-operation with 100 national atutistient offices. United Nations specialised speneles, and other inter-govemment bodien.

The statistics showed that be- tween 1948 and 1951, production in Europe Tose by 45 per cent. In the Soviet Union if rose by 70 per cent, while United States in- dustrial production advanced 15

cent

over the high level

Ja

reached in 1948,

with 1929, Indus-

Compctum in 1951 was 10

timen greater in Kuseau, mor! than 100 per cent in the United States, 58 per cent in the world initside Amerlea and the Soviet Union, 03 per cent In Europe, und 108 per cent in the World as a whole,

The year book showed that in 1951, the world (excluding the Soviet Union, and China) produced 1,258,000,000 metric tons of coal, four per cent more than in the previous year an 45 per cent more than In 1932. but still three per cent below the all-time peak in 1943.

SOVIET OUTPUT

The Soviet Union's produc- tion amounted to 64,700,000,000 metric tons in 1932, 128,000,000 In 1930, and und been estimated by the Economic Commission for Europe at 284.000,000 tons in. 1951.

conl

Compared with -1937. output in 1051 was up by 16 per cent in the United States, which then account, for over 40

Recommendations Made By Royal Commission

Removing Worst Injustices

Of United Kingdom System

(FROM OUR OWN CORRESPONDENT

London, Mar. 1.

The recommendations made by the Royal Commission on the taxa- tion of profits and income, which seek to remove some of the worst injustices of the present United Kingdom system of taxing profits earned overseas by British companies, will no doubt be welcomed in countries that wish to attract British capital as warmly as they have been by businessmen here. It was last August that the Commission received a letter from the Chancellor of the Exchequer, Mr R. A. Butler, expressing the Govern ment's concern over a particular difficulty caused by the present basis of taxation of U.K. companies that carry on business abroad.

The proposal had been made, the Commission stated, that where Colonial territories give special relief from tax to new and developing concerns similar

relief should be given from United Kingdom taxation,

The

no

The Chancellor Judicated in his fetter that he considered this 樣 matter of "importance and urgency" am asked the Coin- a special mission

to produce Interim report on the matter.

doubt The Goverment referred this question to

the Commission in order to forestall forth- criticism L She then coming Commonwealth Economic Conference

the present of system of U.K. taxation asi affects British companies or ting in developing countries.

territories Cerlein Colonial notably the Wrat

Vest Indies and West reflet "pioneer industries"

10

50-6pecial tax

in an effort in altract overseas development capital.

But this

relief has been entire by maltted as far as British com- panies are concerned because their profits have still been able taxadon at the full rate in the United Kingdom.

the one hand, and either Pakistan or India, on the other,

Where bilateral agreements are in force the tax paid by United Kingiem companies in the over- seas country concerned is allow- the credit against United Kingdom tax on the same profit.

able

But in cases where agreements have not been signed the United Kingdom Government allows only 50 per cent relief in respect of the overseas tax on profits from

au countries and 75 per cent

profits earned in monwealth.

the Com-

The Commission now recom- mends that all overseas profits

be treated

alike fer should faxation

purposes

whether double taxation agreements have bren

signed or not.

THE OPTION Is third recommendation con- cerns taxation of profils Unt cannot be taken out of the coun- try where they were carned,

It suggests that United King- thedon companies should have the the option of excluding from assess

in effcet, therefore, the con- essions made by Colonial Boy- per cent of the world tex- ernments are benefiting t congonies themselves" but and

British, Exchequer, 126

cluding the Soviet Union

China total. It was up per cent in Poland, 72 per cent in South Africa, 46

per cent i Australia, 37 per cent in India, 10 per cent in France, and 21 per cent in the Snar.

On the other hand, the 1951 output of the United Kingdom -the world's thin fargest producer was seven per cent below 1937, and Belgium, Japan and the Netherlands also produced less coul in 1951 thun in 1937,

PETROLEUM GAINS Coal was still the world's principal source of energy, the year book sald, though I had been steallly losing ground to the rapidly expanding petroleum and hydro-electric energy dustries.

irt

was

world (excluding the production of Sion) crude petroleum in 1951 put ut 650,000,000 metric tous against 250,300,000 in 1937, and 158,000,000 in 1832, an increuse of 115 per cent over 1937, 240 per cent over 1932.

LOCAL FEELING

had en- When the Colonies acted legislation of this sort and then discovered that its object was defeated by the effect of the United Kingdom taxation, it was understandable, the Commission felt, that there had been "con- siderable local feeling" and tha: protests had been made in Bri-

The Commission pointed out

the nerd that

to further the development of Com- had been

by the British Govern-

men.

It appeared impossible, there- fore,

to support a feature of the Unlied Kingdom tax system that seemed plainly to impede such development.

Wisely or not, "pioneer in dustries concessions" were being resorted to

to in Commonwealth countries wh was needed.

ment such part of their overseas profits as they can show to be "unremittable" by

by virtue of local currency restrictions.

These profits would be brought no assessment when remittance again became possible or if they were used for purposes outside those of the trading concern for example, if they were made! director! available to e visiting for his personal account.

These recommendations have welcoined though generally there is disappointment in some that the Commission did not take this opportunity to examine the whole question of whether prbilts overseas should

quarters

be liable for United Kingdom

ol all

Kone where overseas capital

rumour

and

of shares in three small brewery concerns - Portsmouth Brighton United, Friary, Holroyd and Healy's, und Newcastle.

however, Laator

Frary. Holroyd reacted on a denial of the

that

the company had received an offer.

It is Interesting to note the effect of

recent

spate of take-over bids and rumours.

THE REASON Reason for these bids lies in the voluntary "dividend freeze"

policy adopted by many beards

of directors in becardance with the Government's request.

This, however, has had the effect of depreciating the mor- value of many shares in ket relation to the true assets they represent

There is reason to believe, however, that many company boarda

arc having second thoughts.

successful offer for the

Scars boot and shoe concern by

Slowdown In Textiles

New York, Mar. 1.

A business ; zlowdown marked ́all the baste fox- tile and fibre' markets thir past week."

In cotton TOT goods. print clpin yarı fabrica were silt in the forefront of the ploture with emphasis оп good for quick delivery but con- tract positions were sill being avoided as much as possible.

The mala object Dow among convertern in to get goods through the finlah- ing plants in time to com- picte Spring deliveries. Sheetings, drills, 'twills and other fabrics remained on the dull side. - Baffed

Prem

HONGKONG

SHARE MARKET

(From Our Correspondent)

Business done on the Stock Exchange this morning amount- ed to $270,031. Noon quotations and the morning's irons- actions:-

BHARES BUYERS PELLERS BALES

DANKS

775 700

10 700

RK Bank XD 1348 1370, 34 @ 1350 INSURANCES

Union Underwriters SHIPPING

Wsterbost Ami Nav

DOCKS, ETC. K. Wharf N. Pl. Whart Dock

Investment Registry cr phasised the danger of their present policy, and investors are hoping that they have been |

sumetently alarmed

"un- suc

payments. freeze" dividend

In

case investors looking around

cover recent distributions and companies whose earnings amply this is one of the reasons for the LAND C continued firmness of industrial contin share prices.

any

Bre

for shares in

The gilt-edged market was fairly quiet until Friday when prices advanced as a result of bear covering.

In the romanodity markets teas have been a bright spot, partly on hopes that the recom- mendations of the Royal Com

on taxation regarding tax relief would, carried into effect in the Budget,

British

companies benefit operating in India.

mission deuble

closing ot and

is

The Soviet Union produced 21,400,000 metric tons in 1932,

1937, and 30,500,000 in estinated by the Economic Com- mission for Europe to have pro duced 42,300,000 in 1051.

Crude petroleum production in. 1951 showed increases over pre- war (1937) of 1,532 per cent in Canada, 1,261 per cent in Egypt, 524 per cent in British Borneo, 220 per cent in Venezuela, over 90 per cent in British Columbia Iraq, 73 per cent in the United States, 03 per cent in Mexico and 42 per cent in Bahrein, Persian Gulf, the year book said. Reuter.

and

BICYCLE

MARKET

RACKET

more

It

The Commission has also been criticised for its equivocation in

GOOD RECOVERY the matter of the shareholders' tax rellet right is benfit from

London, Mar. 1. Much long-term money went granted to "pioneer industries."

have But, though it may not

into Industrial charés this week. far

to enough

usly The Financial Times Index has risen 7.5 per cent this month, everyone, the Commission's re- Faizure by the United Kingdom port has dealt ansibly with

some of the

What gluring

really means is to adjust is tax system so as to allow British concerns to get the anomalies of the United King- that industrials recovered near- ly all the ground lost since the cffective avantage of them would dam system of taxation on over-

raising kend not only to discrimination sus profts.

of the bank rate in but

It remains

to be peen November, 1951, A real blow to concern.... Dus these against would cause general damage to whether it was presented in

investment values came lost in its re-time for the Chancellor to con-

March, the UntLxd Kingdom

the index of high grade the sider it with a view to incor-

industrials tumbling to 103.1. lations within and without Commonwealth for more serious porating its recommendations in

But in the course of the past th: his Budget proposals.

market values then any loss of revenue

almast the full would arise from ruch an adjust-

amount lost under the "new monetary policy."

Perhaps the chief event of the Stock Exchange this past

fore, that

between the ment and the

cd

to £14.

now

0Я

ni moved up

12

12

reche, the

weck was a sudden explosion prolest against the decision to build

A public guilery from which tourists and visitors could watch the great bourse at work, The petition of protest was signed by 188 members and contained mapy influential

names.

Provident Provident

S'hat Dock. Wheelock ...

15

1,59

6.40

500 19.30 1313.20 500

11.40 14.00

2.10 2.40-715

HK Hotel 7,50 BK Land (N) 01 52 S'hat Lond 215 1.35 Humphreys.. 13.90 UTILITIES

Tram

Star Ferry ...

MILEG 21.30 700 21.70

410XD

C. Light (0) 9 S. Light #N) Electrid

Telephone INDUSTRIALS

Cement

Rope STOILES, ETC.

9.39 1000, 239 € 0.10

1.600 3 500 6210

1000 231

17.20 XD

15.00 XCD

19.00

19.30

19.20

Cotton Acreage?

Karnchi, Mar. 1. Pakistan, with 1,200,000 bales of its current cotton crop, stili | unsold, is considering a 30 per curtailment In cotton

acreage.

This year Pakistan growers formed 3,000,000 acres of cotton land, and the unsold yield from this heavy acreage has piled up in warehouses and port cities as the world cotton market tighten- red.

During the Best four months of the cotton year starting with September, 1932, Pakistan ship- 'ped about 436,000 bales of raw Heaviest buyers cotton abroad.

were Japan (177,000 bates), the USSR (70,000 bales), West Germany (30,000 boles) and Hongkong (34,000 bales),

Heavy competition from Egypt and other cotton pro- ducing countries cut deeply into Pakistan cales abroad. The Government is studying CTALT- gency measures imsold collon Pakistan warehouses, — Asso ciated Press.

to move Jamming

Car Firm Merger Rumoured

out the

New York, Mar. 1. The head of Willys-Overland Motors Incorporated has denied that

were under negutfullons way to merge his firm with the Kaiser Frazer Corporation.

concerns

Officials of both were reported yesterday to be meeling here to consider com- bining the two car firms.

.M.

of

Cawpaday, Willys night: and

But Word chairman-president Overland, suid Jast Various Individuals groups, including Kaiser Frazer, have approached us in the past few years for discussions of merger possibilities.

"AL the present time there is no proposal before us and no action concerning any has been taken."

Washington quarters reported that officials of the Reconstruc- tion Finance Corporation

in 'New York to meeting.

were

attend the

The RFC would have to ap

aby such merger be- US$18,000,000 in

prove Dairy. 19.20 19.39 1700 5:00

cause it has Watson

2424 20 500 24.20 Joans MISCELLANEDUB

Yongisze

034

outstanding to Frazer-United Press,

Kalser

Railways In India

To Celebrate Their Centenary

New Delhi, Mar.' 1.

India's British-built $1,680,000,000 nationalised railways system biggest in Asia and fourth largest in the world--will celebrate its first 100 years starting on March 7.

The Prime Minister, Mr Jawaharlal Nehru, is to in- augurate festivities runnlög through April 16, actual centenary date of the first Indian railway journey near Bombay in 1858.

India.

по

M

MARITIMES

M

PASSENGERS/FREIGHT SERVICE

Outwards "FELIX HOUSSEL"

Leaver Marseilles

20 lar.

Blue Hongkong 20-12 Apr.

Homewards

“LA MARSEILLAISE"" "FELIX' ROUSSEL"

W 22 Apr.

Leaves Hongkongbue Biazueilles

T-8 Mar:

4 Apr. 21 Mixy

For Kanila

Via

Kaigon Halport

vla Marseilles to all Mediterraneon & West Africa ports, via Djibouti to Madagascar.

Outwards

"MEINAM"

Blamewardi "FRY HILL??” "COURSEULLES" "MEINAM"

FREIGHT SERVICE

Leaves

· Dunkirkossalled

Due Hangkopf Fot

3. Apr.

Japan

Leaves

Bar Hongkong

For

Kertung

Star

Apr.

..Keelung

*** Keelung-2 Apr,

-10 Mar.

8 Apr.

30 Apr.

† Saigon, Marseilles, Algiers, Tanglers, Casablanca,

Le Havre, Antwerp, Rotterdam & Dunkirk

CIE DES MESSAGERIES MARITIMES P.O. Box 53, Hongkong

Queen's Building (Gr. Floor)

Tel, 26661 (3 lines).

MAERSK LINE

FAST FORTNIGHTLY SERVICE TO:

NEW YORK, BOSTON, BALTIMORE & ́PHILADELPHIA vla BAN FRANCISCO, LOS ANGELES AND PANAMA,

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M.S. TREIN MAERSK" *M.S. "NICOLINE MAERSK'

M.S. "ANNA MAERSK”

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Calling Vancouver, ARRIVALS FROM U.S.A.

M.S. "ANNA MAERSK" M.S. "LEXA MAERSK” M.S.

"LEISE MAERSK"

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Mar. G

Mar. 22

Apr. 14

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Pedder Building.

Tel. Nos. 36066-3, 】

Chinese Freight Booking Office 27, Connaught Road, C.

Tel. 20401

Bales and rotation subject to change without notice,

At liberty to proceed via other porla to load/discharge 'cargo.

EVERETT

EVERETT

E

L'INES

ORIENT LINE

Fast regular freight-refrigerator-passenger service to Korea, Japan, Philippines, Indo- China, Siam, Malaya, Rangoon, Calcutta and Chittagong.

"REBEVERETT!!

In Port Sails

Loading Mar. 3

"LENEVERETT"

Arrives Suils

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for Sing#pare. Rungoon & Calcutta,

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Mar. 8 from Singapore. Mor. 9 for Kobe

(Accepting cargo for transhipment) Kabe/Puran And Kobe/Ok!bawa)

EVERETT STAR LINE

Fast regular freight-refrigerator-passenger service to Korea, Japan, Philipplaes, Indo- China, Slam, Malaya, Colombo, Bombay, Karachi and Persian Gulf Ports,

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Arrives

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"THAI"

to

Arrives Baila

THE STOCK EXCHANGE "Take-over bids," unil the possibility of more to follow, provided the background for a

burst of

speculative now

brewery activity in stores and shares in the past week.

Most attractive offer was that of Fraser made by the house for shares of Binn's, who own nine department atores in the North of England and Scotland.

So far the directors of Binn's have

no guidance offered

The Centenary Committee railway field but also methods RAVE

Secretary, Mr D. N. Sandilya, of railway operation such shareholders but the company's

BUDGET BELIEF

said in an interview that an signals and electric traction. shares, which provicusly stood

British Governments had +

After the Delhi international rallways exhibi-

festivities the Newcastle Stock Exchange

good week with transport_stock around £5, have

tion. in Delhi high-lighting the enti, two exhibition trains will up 12/0d and others up 5.

celebrations will display Apparently

the four India bearing major cen- the bellet has

lenary displays. A somewhat less spectacular

Most

im- portant Indian towns and cities will produce a offer has been made for shares hat Mr Butler, desplie second railway engine used In

his dudget.

will have an opportunity decent of the boot and shoe manufac-

He explained that the first view the mobilo exhibition. company of H.E. Ran- Another factor is the coa- has not been preserved, but turing

The first streich of rallway (inued strength of Sterling. dell.

that history reveals The track in India ran from Bom- Royal Dutch

was down 1/8 second was really Intended to bay to the suburban Anglo-Scottish Securities have

town of and others down about 6d.

be the first in any case. It got Thana, 21 miles away, bid the oquivalent of 05/- per

Gold shares ordinary share in the company.

were active but shipped by mistake to Aur- and the directors of Randall's others were unchanged with traila and did not reach India fest developed by private Bri- Indian railways were of exception have recommended shareholders the

Angip until the following year."tish companies which construct- Americans, up nearly §.

Altogether 40 railway loco ed and managed the lines un- to accept.

Coppers were

rather weak, motives and wagons with either der the patronage of the Bri- notably Rhokana, down 12/84. present-day or historical in- Anglo-Scottish Securities

in- tish Government in India. To Japanese bonds

were weak terest have been rounded tend to resell the shares s

and, where

they showed any for the

UP encourage, development and at- Twenty-track H.

xhibition. and M. Rayne.

British down £, £ave foreign arms from 11 coun- Government guaranteed a

capital, the Since this offer was made activity at all, there have been rumours of a

and £3.

cer- tries have arranged display, Lain return on all Investment Germans were fractionally of 70/- but the down except.

including Government-organised and adopted the most liberal seven per cent exhibits from the United States possible policy in leasing lantls. price of Randall's thures re-

£1% to 297-and Yugoslavia. potash, "up mains 63/3d

British But gradually the United Fress.

Although invitationa have authorities pushed the consoll- been sent to all countries

ondation of railway management India's diplomatie list through and even introduced Govern-

ment."

MIGHT BE THWARTED It was recommended, there- agreements should be entered into without delay Govern- British

governments of the countries concerned under which the amount of tax scured to United Kingdom companies by virtue of concessions granted to them as "pioneer industries" should also be exempt from! United Kingdom taxation.

in this Any relle! granted why, however, should not, In

bo pass view the Commission's

on to shareholders when profits were distributed.

But, in stating this view, the Commission was forced to admit that though the relief is direct ed to the assistance of trade rather than the individual its purpose might be thwarted if the individual who is asked to is not allowed find the money to benefit by it.

decided to The Commission make no recommendation on this point until it reviews "the

of taxing co whole question porate profits and their bution to shareholders."

At the Chancellor's request other matters relating to taxa- tlon in the United Kingdom of British

overseas companies'

with in the profits were dealt Commission's interim report.

SOME EXCEPTIONS, Ons of these was the

buying of stores shares of a tion of double taxation relief. \

Though the United Kingdom more permanent nature,

Harrod's, John Barker's and Government has concluded

many other Great Universal Stores all ade agreements with countries, which

yanced

during the week. But ensure that

and Hollingsworth British companies operating Bourne

reacted on a denial of "bid"

Singapore, Mar. 1. British bicycles, which have bren enjoying

exclusive on market in Malaya, face the this pru- possibility of losing dominant position owing to a Malaya-wide racket.

The Sunday Times reports cycle that unscrupulous dealers aro substituting cheap Japaneso and German paris for selling the British parts and bicycles as 100 per cent British.

The

parts substituted are scata,

wheels, rims, chain pedals, hubs and spokes,

Tho genuine British parts, illegally gathered, are then sold ab sparos.

Bona do dealers in British cycles bellove the practice will eventually bring a bad name to British bicycles.

There are nearly 2,000,000 bicycles

Malayan roads, them British nearly all of Associated Press.

Exchange Rates

Business was done in the tocol tinofbelaj exchange Market morning at the following ratent- US. dollar (per (3) ...

fiterling note (per £1)

Indonesian guilden

Blam ticasper 100)

Bingapore - (Birgitp)

distri-

ques-

overseas are not called upon to

If the offer is taken

counter-offer

up,

BREWERY RUMQUES Apart from speculative in-

The

terest, there has also been some Rubber Futures meal channels, most members ment control for strategic, rea-

pay the full rate of tax on their rumours concerning the com-

profits both here country where

tax in the puzy's share Watney's bid for they'. were Following cases remain the brewery concern of Tam- where no such agreements are plin, speculative interest has spread to the shares of other

In S'pore

..

part. Singapore, Feb. 20. Prices of rubbor futures closed today as follows: Number rubbet, j' per ib, Maren STAN April

May

Number 2 rubber,

Number 3 rubber,

Number 4ubpar

Afarch fipat rubbery, undated

bankat creps

actually earned,

3.0328

15,00

in force.

(per 10) 250

25.50

12.03

Even within the Common mall brewery companies.

·wealth no double taxation agree- ments exlat between Britalu, un

|

Take-over rumours were re-

sponsible for rines in the price o pale crepe

FIC" plastens : (per" (109) su

not

sons bs

of the Soviet blog havo

the Indian Indo- even responded. Russia to pondence movement grew dr. clined the Invitations to lako štrength. From 120 different pri

vate railway, firms at'one time,' In addition to the US. and the number declined to 11 at Yugoslavin, overseas exhibitors the turn of the century as the are Great Britain, Italy, Swit- result of mergersfe zerland, "Austria,**** France, When the ge Indian :-) sub-

Belgium Sweden, Japan,

and

continent was : partiționed · in Germany, Fifty Indian drm 1040, Pakistan received 0,950 manufacturing railway parts | miles of railways track and In- 89%-70% and equipment, have also an- dle, - 83,608. Since partition. In- [ered displayna ARAS |dia's "mllenge `has incrgusel to

Exhibits will show: not "only | 34,123, with only 770 miles fol railway history, and the nature maining in private hands,—Ąam at modern production. In the | spelated „Press,

7336-74

Mar. 4 from Japan. Mar, 5

for Singapore, Port Swetten- ham. Modras, Colombo, Bombay, Karachi, Khorram- shahr, Basrah & Dahrein,

Mar. 7 from Singapore,, Mar. B for Kobe & Yokohama,

(Accepting cargo for transḥ|pment) Kobe/Pusan and Kobe/Okinawa)

EVERETT STEAMSHIP CORPORATION S/A Queon's Building, Telephone 31206, Chinese Department: Telephone 28293,

BUSINESS, REGULATION ORDINANCE 1952

Copies of the prescribed Forms |(a) 1(b) and 1(c),

Now On Sale at, S. C. M; Post, Ltd.

HONGKONG AND KOWLOON

TEN CENTS EACH