1934-04-18 — Page 9

HONG KONG DAILY PRESS, WEDNESDAY, APRIL 18, 1934.

BRITAIN'S BRIGHTEST BUDGET

IN FOUR YEARS

SURPLUS OF £29,000,000

EXPECTED

Reduction Of Sixpence In Income-Tax

ARMY AND NAVY CUTS REDUCED

ONE HALF

London, April 17.

a

of

Anticipations of the brightest Budget in four years, record with £31,000,000 surplus, brought almost rush of members of Parliament to the early door the House to secure seats. Fifty-four, including several women, had arrived by 8 a.m. and by 10 a.m. there were two hundred.

The House will be crowded to its utmost, the Galleries will be full of members of the Diplomatic Corps and Dominions' Representatives when Mr. N. Chamberlain rises at about 3.30 p.m. to present his third Budget speech. He is expected to speak for about one hour and a half.-Reuter.

A RETURN TO BETTER » TIMES

On entering the House of Com-ion mons, Mr. N. Chamberlain said to Pressmen; I hope my proposals will be felt as a very satisfactory beginning to a return to better times.

Mr.

Chamberlain began speech at 3.44 p.m.

There

his

features were certain about the £31,000,000 surplus which cannot be expected to recur, although the" export trade is better but was still far behind the trade of a few years ago. The real surplus last year might be put about £39,000,000 as Sinking Fund charges were met from revenue. If they looked at figures of consumption of electri- city, transport," iron and steel production and house-building in every case they saw a.definite revival,

of

Imports from

India, Indies

Dutch the Ceylon and which resulted in a considerable rise in price in common teas. The deficiency of nearly £1,000,000 In sugar revenue must be attribut- ed entirely to the fact that a greater quantity of sugar came from the Empire, carrying greater preference and, therefore, producing less income.

FIXED DEBT CHARGE The fixed debt charge would continue to stand at £224,000,000. therefore the estimated expendi- ture of £698,000,000 was expected. A larger yield from important sources of revenue in customs excise, including beer which yield. est £5,000,000 over the estimate last year. It was expected to get £580,500,000 therefrom this year and a total of receipts from cus- toms excise of £290,000,000 on..the BRIGHT ATMOSPHERE -

existing basis of taxation. The Mr. Chamberlain, said the at- estimated revenue was £727,000,- mosphere in which the Budget 000, with a surplus of £29,000,000 Wis Introduced

distinctly after readjustments. WAS brighter than in the last two years. Last twelve months had shown gratifying evidence that the Government's efforts were bearing fruit. that there was a new spirit of hope and confidence was instanced in "the price of 24 per cent. Consols, which are now higher than the pre war volume.

Industrial production had in- creased very much, our equilibrium had been restored in the balance of payments.

GREAT EXPECTATIONS This afternoon We are sitting down to enjoy the first chapter of great expectations.

The improvement is almost en- irely due to the expansion in Home markets.

Britain has retained her place as the first exporting country. Channels through which "Inter- rational trade formerly owed sn freely were still blocked and now the passage seemed to become more difficult as the feeling of economic nationalism continued to spread, also they found themselves confronted with new and formid- able competitors who are scramb- ling for what little trade we had.

U.S.

UNLOADS SILVER

Heavy Selling On London Market

try, he said among the industries which had shown a capacity of expansion none was more con- spicuous. The increased produc-

London, April 16. tion in recent years had been phenomenal, but it had been re- Late this afternoon the London sud- presented to him that the exportativer market experienced a trade of private cars was not quite den wave of selling on American maintaining its earlier, resiliency account... And that manufacturers were finding it dimculty in meeting overseas competition with foreign

powers

whose horse-power,

re-

lative to their size and weight exceeded ours.

He was informed that if there was any reduction in the horse- power tax in private cars it would likely lead to an expansion in British production.

The reduction in the horse- power tax of private cars would "be effective from January 1, 1935, with corresponding reduction for motor-cycles.

DISTRIBUTION OF SURPLUS

The deluge of orders appears to have been caused by a statement attributed to Mr. Heary Rainey

Speaker of the House of Repre- sentatives, that President Roose- velt questions the advisability of proceeding with silver legislation

now.

.

SENSATION IN COMMONS

Alleged Irregular Conduct

London, April 16. Mr. Wiston Churchill furnished a sensation in the House of Com- mons this evening when he asked leave to refer a matter of grave importance to the Committee of Privileges."

CHINA MAY RECOGNISE MANCHUKUO

ON RESUMPTION OF POSTAL AND RAIL COMMUNICATIONS

(From Our Special: Correspondemi)

Canton. April 17. Anticipating criticisms from the

Mr. Churchill proceeded to make accusations against the Secretary of state forandis, (Sir Samuel Cantón members of the Kuomin- JAPAN OBJECTS

Hoare) and others, including Lord tang Central: Executive Committee Derby, alleging grossly, irregular Mr. Wang Ching-wei, President of conduct in bringing pressure to the Executive Yuan and concur bear on witnesses giving evidence rently Minister of Foreign Affairs. before the Select Committee on Indian Constitutional Reform.

"Although prices shed a farthing after the official close and al- The charges were warmly denied though a small amount of business by Sir Samuel Hoare, who explain- was done at even three-eights un-ed exactly what happened. der the official fixing the market was not unduly perturbed at what is considered to be a shake-out of the weaker bulls."

To Any Outside Interference

is sending Mr. Li Tih Tsun, direc- tor of publicity and intelligence of the Ministry, to Canton to explain Nanking's foreign policy towards

Tokyo, April 18. Manchukuo and Japan. "

An informal statement by the Mr. Winston Churchill asserted According to Press reports from Foreign Once commenting OIK that when Sir Samuel Hoare, in Shanghai. General Chiang Kai-Sino-Japanese relationship, inter 1933, learned what evidence the shek, Chairman of the Military alla states:-In view of the fact Manchester Chamber of Commerce Affairs Commission, and Mr. Wang fact that the restoration of "order proposed "to submit to the Indian Ching-wet accepted Mr. Huang Fu's", Select Committee, he with chers, suggestions at the recent Nanchang noably Lord Derby (former Minister conference with respect to the re- of War) exerted pressure on the sumption of postal and railway Washington, April 16.

Chamber, with the result that the communications between Manchu The statement attributed to Mr. proposed evidence was fundamen-kuo and China proper. Rainey was to the effect that "gitally altered ver legislation will not be included Mr. Churchill said that he did in the Administration's programs

not doubt that the action of Sir me during this session of Congress Samuel Hoare and Lord Derby was as President Roosevelt doubts the well-intentioned. advisability of going ahead with the legislation now, preferring to continue present purchasing pow- ers under the London Conference Silver Agreement.”

It is pointed out that the silver bloc in Congress have not dimin- The Chancellor referred joculär-ished their determination to pass ly to the distribution of the sur-the silver bill-Reuter. plus, saying he had given much anxious thought thereto and he belleved many other people were niso devoting attention to the same subject. He based his action upon two general principles; first- ty. He did not think he could do, better than quote the words used oy Lord Snowden last December, namely, the surplus must in justice be divided as far as it will go in relieving those classes who suf fered when the crisis was acute, The fact was the cuts in unem- ployment pay salaries and addi- tional taxation imposed were con- sidered by the then government as a temporary expedient to meet

and temporary emergency accepted by the people in that spirit. The resources at his dis- posal were insufficient to enable him to effect a complete restora- tion.

www.s

His second principle was that since he had insufficient for com- piete restoration, what he had should be distributed as fairly as possible between the two cate- Korfes represented by tax-payers and those who had suffered cuts, proportionately to the contribu- tion each had made.-Reuter.

TO VISIT BERLIN

(Special to the "Hong Kong Daily Fress" (Copyright.)]

Berlin, April 18. The Bulgarian Premier Mashan- off, will leave London for Berlin on Tuesday, where he will discuss the political and economie ques- ions with leaders of the German Government. On his way back to

will also Sofia, Mashanoff Rome, and Budapest.-Transocean

The Budget surplus was the Kuo Min. arrest "for ten years

and Was sufficient to enable him ΤΟ berin the long awaited process of relief from the burdens and sacrifices of the past few years. He pointed out that revenue could not be materially affected this year by better conditions.

GUARANTEE FOR NEW LOANS

The Chancellor proposed to take powers to guarantee new loans raised for the purpose of com- verting the existing guarantee hans,

CUTS REDUCED

The horse-power tax on motor- cars would be reduced from £1 to 15/- per horse-power, owing to limitation on certain export, mar-- kets caused by the present tax.

Mr. Chamberlain · announced there would be legislation and supplementary estimates for the restoration of one half of all cuts made in 1931 from Julý 1. The costs of the restoration would be £5,500,000 in a full year (this partial restoration affects Crown servants in the

higher grade of the Civil Service, Teachers Police, Navy, Army Air Force and Judges).

INCOME-TAX

He estimated the revenue from income-tax will be £240,000,000 ́against; ̈£229,000,000 last year. The estimated surtax is £50,- 000,000 and Death Duting

PROSPECTIVE SURPLUS The prospective surplus of over £31,000,000 represented the dif ference in revenue of £724,567,000 and expenditure of £693.491,000. We could not expect the abnormal cheapness of Interest rates on national debt to continue in- definitely. Income tax payers have shown

£76,000,000. most commendable Padiness to meet their obligations while they had received the largest ingle payment on death duties In history.

EXCHANGE EQUALISATION -

ACCOUNT

UNEMPLOYMENT " PAY"

די

"In bringing the matter to the attention of the House, he had no thought of impugning their per- sonal motives, but he felt it to be grossly irregular for members of the Commission to press witnesses to alter their evidence. -

Mr. Rainey said, according to the report, that he understood the Treasury was buying all "newly- mined silver in the United States and that Canada, Mexico, Peru and Spain were doing the same ré- garding their sources of supplying Sir Samuel Hoare! Reuter

SILVER LEGISLATION DEMANDED

Washington, April 16"

A special Senate Suver - Com- mittee meeting to-day unanimously demanded the immediate passage of allver legislation-Reuter.

SILVER MARKET

(From Our Special Correspondent)

London, April 17. London suver prices to-day were as follows:

Spot Forward

ts

April 16 April 17

201 192 201 197

The House agreed to Mr. Win- aton Churchill's motion, after a chorus of approval by the leaders of all sectione of the House, insjud-

The Secretary of State for India said he would welcome the enquiry, a chance once It would provide again to prove that Mr. Churchill had found a mare's-pest.

SIR SAMUEL EXPLAINS.

"In the course of his reply to Mr. Churchill, Sir Samuct added that the Manchester Chamber of Com-

original merce's

Having received instructions from General Chiang Kai-shek and Mr. Wang Ching-wel, Mr. Huang Fu will meet Mr. "Akira Ariyoshi in Nanking sometime this week in or- der to compromise the North China situation. Press dispatches state. that once China resumes railway and postal communications with Manchuria, the serious threat to Pelping will be over, although such renewal of communications Implies the recognition, of the Manchukuo.

are

in China depends on China herself; Japan cannot help opposing any of China's measures contrary to peace in the Orient. Also, Japan object to measures on the part of other Powers likely to lead to dis- turbance of peace in the Orient for example, providing China with military aeroplanes and military instructors and political loans.”

U.S. BASEBALL

Opening Game. Washed Out

Members of the Kuomotang Cen- tral Executive Committeee here, while fully appreciating the dif." culties in Chinese diplomacy,

Washington, April 17. of the opinion that Mr. Huang Fu's

Elaborate arrangements were stand is tantamount to a de facto made for, the opening of the recognition of the Manchukuo, baseball season to-day when Mr. pointing out that the International Franklin Roosevelt the President, Postal Union refuses to recognize was to have, thrown the first ball. the "puppet regime" by extending in the game between Washington postal communications with that Senators, American League Cham

plms and Boston Red Sox. country.

Such international support ac-. memorandum corded to China should not be seemed to him to destroy any nullified by her recognition of the chance of negotiations between Manchukilo, leaders here believe. india and Manchester (which As a result they are against any eventually had a happy issue) even recognition of the Manchukuo as indicated in their circular telegram occurring.

Similar views were He felt bound to bring this "to of April 14, the notice the Manchester expressed by the Legislative Yuan in Nanking and the All-China Na- Chamber

FEls efforts, however, were un- tional Salvation Public Bodies. successful. The Chamber dia nothing as a result of the repre- sentations he made

of

It was not until four months along later that representations

The London on. New York cross-the same lines were made by the rate at 2 p.m. to-day was 5.15 Lancashire delegation that went It was this that induced 13/16, compared with 5.15 9/16 at to India. 2 p.m. yesterday. visit

Manchester Chamber to -their-memorandum. —

GERMANY'S INCREASE IN

MILITARY EXPENDITURE

EXPLANATORY NOTE SENT TO BRITAIN

Denial Of Rearmament Scheme

London, April 18. Germany's explanation of heavy increases in her provisions for military purposes is that no rearmament is involved, the extra expenditure being for long-needed replacements.

tion

the amend Reuter.

With

ANOTHER VERSION

the

London, Apr 18.

Government's full concurrence, the House of Com- mons accepted a motion moved by Mr. Winston Churchill that cer- tain matters which he claimed constituted a breach of the privi leges of the House be referred for Invesigation to the Committee of Privileges.

MR. ARIYOSHI VISITS HUANG

Rain, however, caused any at tempts to start the season to be abandoned at the last minute.

The Benators' team have travel- led to Boston and will officially open the season to-morrow against the Red Box Seven other major league games are also down for decision to-morrow-Reater.

LATE MR. OTTO KAHN

New York April 18.- The late Mr." Otto Kahn, the famous German-American banker. left personal estate valued at about US. $15,000,000, which is equally divided between his four children. His widow is otherwise

Interview Lasts Half adequately provided for. Reuter.

GOLD INVESTIGATION SOUGHT

An Hour

Shanghal, April 17. Mr. Ariyoshi, the Japanese Minis- Eer to China, called upon Mr. Huang Fu at nine o'clock this morning and left at 10.30 am.

The nature of the conversation has not been announced.

Mr. Churchill contended that a The Japanese Military Attache, vlalted series of negotiations with the In-Lieut.-General Buzuki also dian Section of the Manchester Mr. Huang Fu this morning-Rau- Chamber of Commerce amounted tex.

to pressure. being brought to bear upon them to procure a funda mental alteration in the evidence already submitted to the Joint Belect Committee on Indian Con stitutional Reform,

Str also

Mr. Churchill asserted that pressure was exerted by the Gov- get for air transport and a pud-ernment and came primarily from

Secretary the get for air protection. It is estim- the

for India, ated that the expenses for our Samuel Hoare, but arose transport will amount to 160 mil from the fact that Lord Derby, llon Reichsmarks against the pre- who was a leading member of the vious year's 77 milliona. --

Joint Select Committee, interview- ed members of the Chamber of Commerce and counselled them to alter their evidence. Eventually the evidence was withdrawn and an entirely different document presented.

AIR SUBSIDY

The Speaker ruled that Mr. Churchill had made out, a prima facie case,

the

Sir Samuel Hoare welcomed an impartial investigation. He thought the Committee would find that the alteration in memorandum was due to repre- sentatives of the Lancashire de Enquiry, be said, would prove that Mr. Churchill had found another mare's nest,

ام

The Note addressed by the Ger

This increase is due to the re- man Foreign Minister to the Brj- tish Ambassador in Berlin in the placement of the obsolete aero- reply to the enquiry regarding the plane material of the private Ger- increases in the German naval, an air transport company, Luft- military

and air estimates, was hansa, which, as in other countries, presented to the House of Com-receives Government subsidies; to expenses necessary for increased mous by the Foreign Secretary Sir John Simon, in reply to a ques security in air, and for the instal

lation of lighting and wireless dir. The Note states, that, in regard ection-finding systems owing to winter operations and night flying to the estimates for the army, 654.6 million Reichsmarks, which on long distance lines and to the represents зд Increase of 172 development of oversea air, trana Mr. Chamberlain declared the rallions, the increased expendi- port and of scientific investigationegation at that time in India. cuts in unemployed" pay must ture is necessary for the prepara. in the sphere of air transport gen come first. A Bill will be intro- tions due to take place in course

erally. duced providing a full restora- | of the budget year for the con- Estimates for sir protection tion of unemployment pay from veralon of the Reichswehr into a amount to 50 million Reichsmarks. July 1, costing £3,600,000. This short service army."

AIR RAID PROTECTION year the case for remission in The allocation of these sums to In last year's budget only 13 income-tax was that the over-

the budget for this purpose arises million. Reichsmarks were provided whelming standard rate will be from the state of the negotiatons for this purpose since the organisa reduced by six-pence.

OBSOLETE NAVY

tion of air protection was, at that Expenditure for the naval bud-time, only in Its first stage. The get has been estimated at 256 newly-developed organisation is de- milion Reichsmarke This - vated to the protection of the civil (Special to the "Hong Kong Dally

Press" (Copyright.))- creased experiditure of 50 millions population against air attack, Its is due to the increasing cost of activity consiste in the erection of

Warsaw, Aprli 16. the systematic renovation of long gasproof cellars, the training of The first Fascist party, in Poland slice obsolete units of the German squads for the rendering harmless has been founded by a group of fleet, the replacement of which, of poisonous gases, the develop younger irreconciliables within the partly on the ground of the secur- ment of a fire extinguishing sys- National Democratic Party who ity of the crews, can no longer be tem, the training of special squads have seceded from the group call- postponed

for warnings, technical repairs and ed Radical Nationalists Camp./ The Budget of the Alr Ministry the rendering harmless of poison- The new organisation advocates cannot be regarded as an arma- ous gases and other similar mea more decisive political action

Transocean Kuo Ming ment budget. It consists of a bud-sures British Wireless

Exchange Equalisation Account still showed a profit, and last year's surplus would be used for redemption of debt, nearly mak- ing good the previous year's deficit.. Regarding the prospects for the current year, Mr. Nertile Cham-mission would be £20,500,000 this berisin amid cheers, said that as year and £24,000,000 in a full regards American War Debt and year. He estimated a surplus on receipts by Britain from War the new basis of taxation of Debts and reparations, in the £800,000.

The cost of income-tax · re-

absence of any fresh development, Mr. Chamberlain ended at 5.20 he proposed to follow the same D.m. procedure as last year, making no provision for this.

REVENUE DEFICIENCY » The deficiency from revenus, tea duty amounted to about €350,000, doubtless due to restric

GUARANTEED LOANS "The guaranteed loans refers to loans raised by certain foreign governments on companies and public utility undertakinga.

Referring to the motoring Indus-

Opposition leaders supported the resolution and the Prime Minister expressed the Government's tuli concurrence. British Wireless.

FASCISTS IN POLAND

Washington, April 16. Mr. White introduced a resolt- tion into the House of Represen- tatives to-day demanding an in vestigation of all gold transactions since January "1. .......

The speaker declared that spe- culators had profited by more than U.S. $225,000,000 since deval-

uation of the dollar-Reuter.

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