THE CHINA MAIL, WEDNESDAY, JULY 26, 1961.
Public to pay more for necessities-as well as luxuries BRITAIN'S BIG SQUEEZE BEGINS
A BOOST FOR
STERLING
that
London, July 25. Today's Variumuncement khảo dienlanh' tank rat would be raised and arrangements were being mado lo máke drawings' oll The International" "Mone- tary Fund, zave a boost fa Sterling on the London foreign exchange rate to- day.
Early in the day, Steri- ing looked firmer against the US. dollar, in
Effect of Govt Kennedy
austerity
measures
London, July 25.
demands action
(Continued from Page 13
But he added that the United
States was willing to consider Germany bisdem and the legitimate security Interests of all nations."
"any arrangement or treaty In consistent with the maintenance of peace and free-
The Government's economy squeeze an- nounced today means the man in the street will have to dig deeper into pocket to pay for many of the necessities of life as well as the luxurios.
J
anti-
cipation of such measures
by the Chancellor.
On receipt of the news, conditions became chustle, with dealers beset by quiries and rates marked up sharply all round.
The Sterling-dollar rate, afler touching a high of 2.79, closed at 2.78-15/16 for a nel gain on the day of seven-sixteenths.
The Canadian dollar weakened five-sixteenths to 2.87-11/10.
The pound closed strong- ly with good rains against all the leading European Japanese Yen currencies.
Fine with
weakened
other currencies.
In the forward market, there was a sharp Increase in premiums of the leading currencies as a result of the higher Interest rates which foreign money now will be able to obtain in the United Kingdom-Reuter.
Dahomey makes demand
The 10 per cent surcharge on it will be for traders to deelde customs and excise duties spells precisely how much of the extra deurer whisky gin, beer, wine, 10 per cent tax is to be passed
and pipe cigarettes
tobacco, on to consumers.—Reuter, lighters and mat- mechanical ches, as well us more expensive petrol,
The Government's "rald" the housewife's tarder means that she in turn will
on
tea.
согу.
cocoa, coffee
and chl-
REACTIONS
London, July 25.
"While we are ready to de- tend our Interests, we shall also be ready to search for peace in qufet exploratory talks meet- in formal or informal ing" he added.
The chief executive declared nally that the West could not permit Soviet Russia to end the legal rights of the West in Ber- lin.
At the same time, he warned that the actions he outlined
have to pay more for sugar. Reactions to the Govern. would require immediate sacri-
fice
many "on the part of ment austerities announ-citizens." And he said
sacrifices would be required In ced today included: The British Road Federation the future to honour Araerica's said the ricrease in petrol duty commitments to the two million would full mainly on trade and West Berliners. Industry and would inflate road transport costs for exports and the home market.
The Secretary of the Hire
And every family will addi- tionally feel the squeeze in the application of the surcharge to the wide
uf domestle range covered by purchase articles 1BX.
•
Cigarettes
in-
Here are some of the ways a Purchase Trade Association, Mr family will be affected:
C. McNell Grels. said the in- rate must creuse In the bank menn an almost inevitable crease in kire purchase charges. The Society of Motor Manu- facturers and Traders was very concerned that there was to be an increase on purchase tax n
Extra tax on a packet of 20 standard size and quality cigarettes, มาพ costing four shilings and twoperite, will be a maxlurum of about fourpence --all of which may be passed on to the buyer.
Petrol (cheapest
grade
cars.
It sold the industry was al- now four shillings and two-ready far more "highly taxed in a this way than continental manu- go up through pener) may
+
lax Increase by threepence facturers, and its relative post- gallon,
Cannot
"We cannot and will not per- mit the Cominunisis to drive us out of Berlin either grudu- ully or by force," he said.
"We do not want to light, but we have fought before."
"The endangered frontier of treedom runs through divided Berlin," he said. "We want t to remain a frontier of peace. This is the hope of every cltlaen of the Allantie cam- munity; every citizen Eastern Europe, and, I am
citizen confident, every the Soviet Union. "For I cannot believe
ion was now therefore "work-
Russian Whisky cheapest now end. The rise in fuel duly 37 shillings and sixpence
•
bottle may be two shilling
is again bound to increase the cost of manufacture and the cost of living
generally," and sixpence dearer, and a pint spokesman added.
cheapest of the around one shilling and a penny,:
beer, now
of
pf
CASTRO RELEASES CREW & PASSENGERS
FBI probe plot to grab five more U.S. airliners
Miami, July 25.
Senegal breaks -relations with Portugal
Dakar. July 25, The 13-month old Afri- can state of Beneral an- nounced tonight it was breaking, Alptomatic rela- tions with Portugal,
an-
The Government nounced the move after a ezbinel meeting-UPI,
Titan heads for target
As the passengers and crew of the pirated Eastern Airlines Electra air
craft flew back here after being released by Cuba, agents of the. Federal Bureau of Investigation moved quickly to foil an alleged Cuban plot to seize five more U.S. commercial airliners and fly them A to Havann.
The 32 passengers and five five crew members as they re-were wearing all sorts of uni crew members returned to the turned and begun questioning form and carrying machine guns, bury guns unt guns of U.S. on one of the twice-dalis them.
Mr Raymond Waller, an EAL every type. fights operated by Pan Ameri-
"The soldiers came aboard can World Airways between employee, toid this story of what Miami and Havana,
he saw:
and made us stay in our seats. The first report
The hijacker opened the door of the plot far more piracy of airliners
to the cockpit and they look New York City came from
him away. He looked like a Cuban to me, but I heard him police.
say as he came down the aiste that
an American window. citizen. we were flying
Swarmed
over
Fightor
"We were tying along about 20 minutes out of Miorni when I noticed the sun was coming In the left-hand U.S. indicating that
south, and we were going over too much water,
Police swarmed metropolitan airports throwing up special safeguards,
"We're taking all possible precautions," sold an Easter Airlines spokesman. “We are working closely with the Fil und the State Department." Enstern, National an<i North-East Airlines, the major
"en a Pan Amfrienn jet aircraft few around us for 20
minutes.
"After I lei, a Navy fighter followed us curly to Havana.
"We weren't aware of what happened until the stewardes realised that the door to the cockpit was locked from the inside and the captain wouldn't
he was
Gagarin
in Atlantic
Cape Canaveral, July 25.
Titan inter-continental minile carrying "push button" guidance system that would allow missile artillarymon immediately to select targots in time of war was fired today on a planned 5,000-milo tost flight.
The
basketball-shaped qui- dance system, Immune to enemy tape pre- Jamming, contained pared well in advance for carry- fing the missile unerringly to its
ocean target.
The missile soared from its " "They kept us in a room at launching pad at 1905 GMT and bored into a high ore to- the airport for four hours and searched us before they gave wards a high space alght into each of us a small cup of coffee the South Atlantic. } and cigarettes.
Today's shot was another la a "Some of the men had their continuing series of tests for the New York to Miami carriers,
wallets taken and didn't get Air Force before all components.
the Improve were said to be targets of the
them back until this afternoon. Are wedded into
Than It. purported plot by supporters of
"Then they look us up to the Cuban Prime Minister Fidel
dining room and kept us Castro,
talk to her over the intercom.
around for one and a half hours However, their igh "But we had some premoni- while (Russian cosmonout Yuri) schedules were not interrupted. lion. I was sitting in a front seat Gagarin came in, We saw it and a North-East spokesman when the stewardess came out all from the dining room sald, "We are not arming our of the cockpit earlier after ser window, crews."
ving coffee to the captain and this man pushed his way past her Inside.
In Miami, reportery swarmed around the passengers und that crew of the airliner pirated on landed this the
peoples-who Monday, as they bravely suffered enormous afternoon, lesses in the Second World War ~would not wish to see the
Gunman
pence upset once more in Ger- One of the passengers said ILARLY The Soviet government that the gunmen responsible Berlin's for the abduction was a Latin can convert
Pass on will probably go up by a penny. The Wine and Spirit A-alone
A typical Hight
wine sociation's scaretary, table six stillings a Mahoney said selling around
seat, All
Mr John frontier of peace into a pretext occupying, a front the Association for war," Mr Kennedy said. agree that there was only one bottle and paying around two had recommended its members
noc. shillings and twopence duty should pass on to the cunsumer could go up by threepence, the duty Increase.
Cotonou, July 25. Dahamay has demanded the immediate removal of a tiny Portuguese enclave
• Purchase tax on a £70) The Distillers Company sald an its territory, dating from the 15th century, it rigerator now 10 pounds ten it was increasing the price of shillings, could rise by 21 its brands of scotch whisky and was learned hore today. shilings if the whole of the tax gin by the amount of extra President Hubert Maga, increase is passed on.
duty imposed.
• A
car costing Jetter to the Portuguese Presi
Tobacco companies later dent at "Portuguese Fort," de-
£1,500 and up to now payink nounced Increased prices marsded Portuguese withdrawal £450 duty may be £45 dearer, cigaretics and tobacco, as fure- by July 31, 1861, the eve of the and a £494 car with £143 dutyshadowed. The standard 20 pack to the will rise in price by fourpence frat anniversary of Dahomey's may have £14
price.
to 4/6 and cheaper varieties prosecurity interests of all nations," Independence.
portionately.
Maga sakl: "It appears to us: • A impossible to tolerate
motor
added
13-shilling saucepan un our now pays one shilling duty, and soi a foreign enclave which this may ku up by a penny only. represents any colonial posses- But on a C03 washing machine, sion whatever."
whose
tax is at presont just "Pertuguese Fort" is located under £10, the Increase will be near Oulduh,
EUTIC 40 kilo almost £1. metres from the Dahomey capi-¦ 101-AFP,
As Mr Selwyn Lloyd, Chancel- lor of the Exchequer pointed out,
A British Crossword Puzzle
2
3
4
18
9
10
71
112
13
14
15
16
17
19
[20
21
22
123
124
25
00
18
32
28 29
31
ACROSS
1 Engressed.
4 Mensur Michael!
10 Drain.
18 Fin
0 Fruit.
Whisky maker.
11 Sword.
13 Mountain.
14 It given us no peace,
21 Day girl!
22 Windi,
24 Affirmative.
J
20 Sleeping bird?
20 Brace,
30 Alr.
31 Favourites.
32 It's behind you.
33 lido over.
Till.
R
26
27
30
33
DOWN
ji's a froal.
2 Pallid.
3 Consecrate.
4 Charge.
5 God of thunder,
7 Chose,
9 Get your own back,
10 Sing shakliy!
15 Cropped up.
12 Vessel.
17 Vanquish.
19 Pant.
20 Unnarthly.
✓
23 Doen a typing job!
26 Elephantine tooikl
24 Cry.
27 Quantity. 20 Fitting.
The
stewardess had just served. coffee when the man
pulled a gun and ran into the cockpit, reported Mr Al Lanken
Mr Lanken said the passeng-
"I hear it said that West Berlin is militarily untenable. So was Bastogne. So, in fact, was Stalingrad. Any dan gerous spot is tenable if brave men will make it so," he said. He said the United States is ready negotiate with Soviet rs were treated cordially at the Havana airport and were served Premier Nikita Khrushchgy excellent food. for
"any arrangement or treaty In
were detained a!
But during the 24 hours they The airport Germany consistent with dom, and with the legitimate maintenance of peace and free-
1171-
of
Q
Increase
un
the
pro-
of
A reduction in tobacco con- sumplion and a demond for the tipped and cheaper variety
Mr Kennedy said his clgurettes was forecast by spokesman of the Wholesale To-gramme would result in a de-
fence budget Increase bacco Trade Association.
The economic Onto;
crisis $3,454,000,000, including an ex- in Britain would a $207 million for civil de- niSAITES "undoubtedly" strengthen the fence.
This will bring the defence British balance of payments
The current fiscal and protect the pound Sterling budget for sald Norwegian
Finance year to $47.5 billion, a $6 bil- Ministers Mr P. J. Bjerme this on increase since Mr Kennedy submitted his original defence evening
budget fast January.
by
But the question now was to
Mr Kennedy prefaced his what extent these measures military recommendations would put a brake on Britains economic growth which Was nlready relatively weak
saying the United States, faced
with Russia's threat to Berlin" had to build its capacity for Washington: Authorities were
conventional warfare to avold Impressed with the strong eco- | huving. 10 choose belween nomic measures inken by Britain humiliation or all-out nuclear today.
nction."
One international financial About half of the new defence authority commented that such money the President sought will measures had drown quick re- be used for procurement of non- sulls. In the past. The same nu-│nuclear weapons, thority commented that the pro-and equipment. gramme cutlined certainly
ammunition
hotel, he said "you couldn't There was a gun in front of you and behind you."
move.
The FBI took charge of the
S. Vietnam
Navy fights Reds
South Vietnamese motorised
Saigon, July 25.
and armed Communist boots engaged in a rin- ning battle in South Viet- waters, territoria) the semi-official Vietnam Prass news agency report- ed today.
nam
The news agency sald the
He sald serangements could be clach occurred recently off the
showed the British Govern | worked out lo relleve the Soviet coast of Quang Tai province just ment's determination to streng and Eastern European nations' south of the 17th parallel de- then is position internally and historie concern about Invasion marcation line about 800 miles
externally.
from the West.
north Salgun.
here
Not more Some informed sources profensed not to be surprised by the raising of the bank rate to seven per cont, others, however, a rise said they had expected
But he served notice that|| Reinforced by two heavy "the freedom of that city is junks from Tiger laland, a North пой negotiable. We cannot Vietnam naval base north of negotiate with those who say the demarcation line, the Com- *whist's 'mine is mine --- what's munist flotilla surrounded and yours is negotiable."
attacked six patrolling Vesscla Mr Kennedy mid: "Com of the South Vignan Navy. Germany: Franktert parable efforts for the common belag discussed banking circles were "shocked" defence are
of not more than one per cent.
by
Wesk
the Announcement toriny with our Nato allies. For their that Britain's bank rate had compliment and interest are as
precise as our own." risen to seven percent.
Strength
REPORT
Vietnam Press reported the South Vietnam vesicle returned Bro And the moulting folia fled leaving behind a bont with two bodies and four men, two wotinded, of them eriously aboard.
"There is a danger that costs of production will be increased through the higher bank rate”, one bänker said, adding that the He said the West must build measure appeared "far too its military strength, and "lo- orthodox."
gether we must shore the bur- Banking circles are confident dèns and risks of this cituri.” that more foreign currency will Speaking publicly to the Nato abon flow into London to re-allies he recalled the Atlantic sign in Vietnam had complained ceive the benefit of the seven Community's birth in resporine too the Commleston about the per cont bank rate, but they the Communist challenges anelékai-fouter.
of
are doubtfat whether enough 1047, 1948 and 1950 and wald: 7hbnoy wh[] be attracted to "Now, standing strong and solve the balance of payments prosperous After a decade of position entirely,
unprecedented progress, tie hat can only be done in Aarle Community will not the long run by better trading forget either its history or the returns," one banker said. But
he pointed out that saven per principles which give it nichu- cent was the highest bank rete fog,"
In Europe at the moment, and
"Mr, Kennedy nald ble decisions
The nows
agency, said the South Vielham mission to the Commis- International Content
Announcement on Kenyatta
London, July 25,
An announcement of Úle re- 2 certain: amount of "hot were prompted by Khrushchev's lease of Kruya nationallet money was found to come to "grim" whininga" at Vietin, etander Jomo Kenyatta will be Soviet demands that the West made to Farilament before the London.
YESTERDAY'S CROSSWORD—Across: 1 Tigers, 4 Sumia, 7 Godlys, & Atorn, 10 Tue, 12 Alto, 14 Tan, 16 Anh, 17 When, 30 Else, 23 Glee, 24 'Derive, 25 Tang, 20 Limp, 27 Ex- NeverWieless, I was unlikely surrepfer the free people summer recess if the declston pert, Down; 1 Xlaht, 2 Gode, 3 Blart, 4 Blam, Uiters, flimon, that serious inventors would Went Derlin, and the recent 30 is taken, said Colotilal Milater 11 Oore, 13 Laws, 15 Dheets, 10 Angel, IB Hedge, 19 Cheat, switchs from Germany to Bil. per cent increase if the Soviet Iain Macleod today during the 21 Lay 27 Firo.
tainiteuter,
ballary Budget.—UPI.
| Fast African ilobate
"I didn't see a pistol.
Briton escapes from Congolese
"At
didn't the hotel they
Leopoldville. July 25. bother us, and the food and A British coffee broker has es- capil- the beds were adequate. Some caped from. Congoleso "The captain didn't say any of the rooms weren't
vity In Bukayu Kivu air-con-
Pro- vince, and is now under thing to us until we were cire ditioned. They kept the crew citng over Havana, Then he told isolated from
United Nations protection, A us for a while
was announced here today. us over the Intercom what had but finally gave that up.
UN sources gave the name of do nothing-sit i hoppened~~to.
would quietly and everything
"The captain suid the gun the man as Dorck Gauden, but be all right
was landed and the man was this name could not be confrm- "When we landed the runway desporate. He had no intentioned by the British Embassy.-
China Mall Special. was lined with soldiers. They of arguing with him."——AP,
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