1936-09-12 — Page 13

THE HONGKONG TELEGRAPH. SATURDAY, SEPTEMBER 12,

1936.

Hongkong Government Facing Two Record Deficits INCREASED TAXATION SEEN AS CERTAINTY FOR 1937

"GLOOMY" BUDGET TO BE INTRODUCED IN COUNCIL

ON WEDNESDAY

SERIOUS DECLINE IN REVENUE MAY MAKE 1936-37 DEFICITS ALL-TIME HIGHS: CIVIL SERVICE MAY SUFFER

"Tolograph" Special Representative When the Colonial Secretary arises in Legislative Council on Wednesday next week, he will unfold what is almost certain to be the gloomiest Budget in the entire history of this Colony.

He is faced with an appalling loss of revenue, due to the slump in the Hongkong dollar, and, at the same time, expenditure that will be greatly in excess of the $28,291.- 636 it cost to run the Government in 1935.

The Budget for 1936-37 will be introduced in Legis- lative Council on Wednesday. In it, the Colonial Secretary

is almost certain to call for a deficit that will be in the vicinity of the record deficit of $5,022,452 experienced in

1925.

New Move Makes RADIO

Hongkong Air

Hub Of Pacific

I

PAN-AMERICAN AND CHINESE

PLANES TO USE KAI TAK

(SPECIAL TO "TELEGRAPH")

BROADCAST

Récital from Studio By The Radio Four

DAVENTRY RELAY

From Z. B. W. on a wavelength of 355 metres (845 kilocycles);

4-7 p.m. Chinese Studlo Concert. 7 p.m. "La Tragedie de Salome" (Forent Schmitt).

7.33 p.m. Light Opera Excerpts, Vocal Gems-Lily of Killarney (Benedict); Orchestra--Cloches de Corneville Waltz (Planquette); Vocal Gems-The Student Prince (Romberg): Orchestra-A Country Girl-Selection (Monckton).

8 pin. Time, Weather and ELTI-

AM. able to confirm to-day the report, exclusively published in the "Telegraph" last month, that Hong- kong is to become the Asian terminal for the Pan-Ameri-nouncements. can Airways Corporation's forthcoming trans-Pacific air

service.

Confirmation of the report was given me this morning by a high official source.

8.03 p.m. Two Songs by Her- bert Groh (Tenor),

1, Water Lilies (Dobrint); 2. Only for you-Waltz (Doclle).

8.10 p.m. From the Studio. A Jazz Recital by "The Radio

Programme.

In addition, the Hongkong Government has informedFour." the Directors of the China National Aviation Corporation that facilities are now available at Kai Tak airport for all 3. I'm gonna their machines.

of the Day... (By Request); Instru-

Moon Rose; 2. Dream of Love: clop my hands; 4. Moon of Desire; 3. I like Bananas; 6. Touch of your lips; 7. I get This means, in effect, that previous objections by the British kick out of you Government to Chinese commercial planes landing at Kai Tak,

8.30 p.m. A

A Variety Programme. without China granting reciprocal rights for British planes to land

Quick Step-Many Happy Returns in Chinese territory, have now been withdrawn.

mental-The Great Ziegfeld-Selec- Pan-American Airways origin- on Its way to London for the appro- still Dreaming ("When Knights were tion....The Keyboarders; Song-I'm ally contemplated using Macao naval of the Secretary of State for the Bold")....Jack Buchanan; its Asian terminus for the trans- Colonies.

Organ Pacife service, due to the British

Solo-in a Monastery Garden....le- Six months ago, despairing of ginnid It is equally certain that the estimated deficit of $2,926,303 Government refusing permissionment with the British authorl got a little springilme ("Evergreen") Foort; Song-When you've for the current year will also be greatly exceeded, due principally for American and Chinese planes mission for landing facilities

London, who refused per- ....Jessic Matthews; Instrumental- to the fact that Government budgeted for a la 8d dollar and to the to land in Hongkong.

Hongkong, Pan-American Airways and Sweet MusicMedley.

In Sundown in old Waikiki; "Soft Lights The report en rating from commenced construction of an air- heavy drop in opium and Premia on New Leases revenue.

The Shanghai that Pan American Airport in Maco, The radio-beacon from London.

9 p.m. News and announcements deficit for 1936 will probably be well in excess of $3,000,000 and ways intend to build their own air-station has already been, completed

port Hongkong is dented for 1937 in excess of $4,000,000.

by and the entire airport is now almost

9.20 p.m. Songs of Old. offield sources here.

ready for use.

Drinking Songs: Songs Everybody As a result, the Colony's surplus balance, which totalled $12,-enn " Company will

Urgent representallons, L in should know....Stuart Robertson understood, were made to the (Bass-Baritone); Let's have a Chorus: 387,668 at the end of 1936, may be reduced by the end of 1937 to airport as its Hongkong base when Colonial Office by the Hongkong Plantation Songs.....Paul Robeson a disturbing level below the $10,000,000 arbitrarily fixed as the Pacifle service.

it, eommences ity regular trans-Government regarding the danger (Bass).

of Hongkong becoming isolated by minimum balance.

Although the new civil hangar at the policy adopted by the British ment approximately $100,000 addi-ing the giant Clipper planes now

Kai Tak is capable of accommodat- Government. tional revenue,

engaged in experimental fights be- ween San Francisco and Manila, it is not considered likely that these plays will be used between Manila andi Hongkong. smaller machines being used for this service.

In its Estimates for the cur- rent year, Government budgeted at a 1s 8d. dollar.

It is probable that the Budget for 1947 will be hosted on a 14 33744. dollar.

Civil servants on sterling salaries are now paid at the rate of 18 4%1⁄2d.

But ordinary sources of revenue are already taxed to their limit, and it is likely that Government will Turn to other fields.

MONEY FROM TRADE LOAN

It

is possible Uhint, in order to At the end of this month they will make the deficit as small as possi

Government will transfer

ble.

to

I was told to-diny that the Ameri- use Kaf Tak

LONDON'S POLICY

The Lundon policy was dictated, it is believed, by a desire to obtain reciprocal landing rights from the United States Government for trans-Atlantic service,

9.45 p.m. Hawaiian Music. The Winter Waltz; Rosetta; Lion Rag; Lonesome without my Baby; My South Sea Sweetheart.

10 p.m. Big Ben from London. Dance Orchestra from the Hong- kong Hotel Grill Room.

11.15 p.m. A Relay from Lon- den.

A Commentary by F. J. Findon and These

landing rights have now Earl Howe on the International Open been secured, and a trans-Atlantic Climb for Racing and Sports service, operated jointly by Imperial

Shelsley Watch: Airways and Pan-American Air-Cars (under the auspices of the Mid- land Automobile Club), From

CLIPPERS COMING SOON Nevertheless, Hongkong is likely probably be paid at the current rate general revenue, a sum of $500,000 a future, as I understand that ways, will link Europe and America

one of the Clippers in the -of-da-33⁄41⁄2d -aid-at-the-rate-of-19-34.-;

from the funds of the 1925 Trade

trial flight is contemplated. as from the end of the year. Both

Afrost 019 50011 as Pan-American This transfer these

Pan-American Would

still

Airways are Airways links America and Asia. lower rales, naturally, will Loan. Increase Government's dollar comto meet all possible future liabilities. National Aviation Corporation, and operation it will be possible for a leave sußeient assets in that fund Annncially interested in the China

When these two services come into There is ako a possibility that the is presumed that this Chinese Hongkong traveller to voyage around $830,407 standing to the credit of company will provide an aerial net- the world entirely by air. the Government House and

work from Hongkong to all parts of Development Fund—a scheme

China. is certain to be dropped-may re- vert to revenue.

mitments.

Heads of Departments, 1 under- starch. recently held an informal meeting at which the question of civil service salaries was discussed. I have been informed that at this meeting, the Heads of Departments decided to place several "proposals before Government with a view to

City

that

In addition, Pan American Air- ways has reached an agreement with Imperial Airways, so that passen- Government's serious financialfers travelling by Pan American position has been brought about machines may transfer to Imperial by several factors, chief of which Airways machines, or vice versa, have been the enormous decline in revenue from Land Sales and the Opium Monopoly.

alleviating the financial position caused by the enormous increase in the cost of upkeeping the civil ser- vice, due to the decline of the dollar.

At one period the Opium Mono- STAFF RETRENCHMENT

poly

was yielding Government One of these proposals, I believe, return of from $5,000,000 to $8,000- calls for a drastic retrenchment of 900 per annum, the high record of staffs and a voluntary agreement to | $8,600,622 being reached in 1918. retention of the recent salary cuts Imposed by Government.

Retrenchment of staff, in view of the enormous increases in the cost of Government, appear inevitable and it is probable that replacement of sterling-salarled civil servants by "local" employees will become more increasingly evident in 1937 than in the current year,

1,000 PER CENT DROP

£1

From the time Government coin- menced selling Singapore opium in the Colony, revenue commenced to fall. This, coupled with the in- erense in illicit opium and heroln trafficking, led to à crash in revenue Ho $380,162 last year, the lowest revenue recorded since the Oplum Monopoly was instituted in 1914,

This is how revenue from Oplumi

$ 2,835,280

No big obligations will be under- by Government next year with respect to new public works has dropped.

taken

undertakings, and it is likely that Public Works Recurrent expendi ture will be severely pruned."

An

A result of Government's unhappy position, the Hongkong public can prepare Itself for addi- tional taxation in this year's Bud- get.

1930

1931

1932

1033

1934

1035

3,019,724

2,314,226

1,152,851

602,410

360,402 It is believed that the totul re- for the current year venue

wii What form this new taxation will amount to less than two lakhs. take cannot be forecast with any During the years 1914-1925 the

degree of certainty. Government average annual revenue was $4,500-

Revenue

from Land Sales had-

can tap several sources of revenue, 000.

Import duties on Liquors, Molar Spirits, Perfumed Spirits and Tobic-eraslied in almost as sensational a có or on locally manufactured liquor will probably be increased, higher duties for Motor Spirits appearing These are the figures for the past almost

"

munner.

1930

1931

1932

1033

1934

certainty. Incidentally. five years: these duiles are probably one of the brightest spots in 1936 revenue, and It is ely that the estimated re- venue of $5,335,000 wit be greatly exceeded this year, due to the lower rate of exchange than that budget- ted for.

MOTORISTS' TO PAY

It is certain that Government will increase the 'Licence Fees for Motor, Vehicles and for Drivers Licences. It is probable that the Licence Fees will be increased from $30 to $40 for light cars, and $72 to $80 for heavy cars,

་་

$ 2,864,87A 3,177,007 1,370,058

972.851 558,472

It is understood that Pan Ameri- con Airways has negotiated an agreement with the Hongkong at mails Government regarding the cardinge to and from the United Stales.

This agreement, it is stated, is now

AROUND-THE-WORLD

wir

11.35 p.m. Dance Orchestra from the Hongkong Hotel Grill Room.

12 midnight. Close Down. recorded programme from Z. E..K. on NOTE: There will be a Chinese a frequency of 640 kilocycles from B-10,30 p.m.

tourist will be able to travel around TO-MORROW'S BROADCAST

A Hongkong round-the-world the world in 12 days, the time-table being as follows:

Hongkong to London (Im-

perial Airways)...... 5 days London to New York (Joint

Service)

New York to San Fran-

cisco (Internal). San Franelsco to Hong-

kang

SCIENCE HIRED

TO KILL

RADIO

US

2

PIONEER DEPLORES WAR-MINDEDNESS

"IT'S pathetic. In every country the scientists are putting all they know into finding new ways of destroying humanity, I know, because I'm in it too."

Mr. William Dubilier, America's second Edison, in- ventor of the apparatus which Britain, France and America used to detect submarines during the war, radio pioneer and owner of 300 patents, sighed as he said this, sitting in his room in the Savoy Hotel, London, and looking out on to the peaceful Thames.

He is a short, unobtrusive back to each other as they walk figure, forty-eight, sun-tanned, about in the street in different towns with hair that is going grey and five miles apart.

"Yes. It's being used for military a quiet, insistent voice. He is

experiments now. in Britain on holiday.

DETECTING PLANES

He spoke of his travels in Europe. "Everybody afraid-11's awful. You He spread out his hands. "What people over here don't realise the can you do about it? Most scientists way they look on Britain. You're and Inventors would walk out of it the greatest steadying force In the If they could; but they can't. There's world.

It is estimated that the revenue no for 1030 will be less than three torn lakhs,

.

this

|

Hongkong Singers From St. John's Cathedral

RECORDED PROGRAMME

-10-11 a.m. Morning Service from St. Joseph's Church,

11 a.m.-12.15 pm. Morning Ser- vice from St. Paul's Church (Chi-

nese);

12.15 p.m. "Symphony No. 5 in F Minor, Op. 15" (The New World). (Dvorak).

12.57 p.m. A Violin Solo by Michael Coleman.

Tell her I am-Jig Medley.

1 D.m. Time and Weather.

1.03 p.m. A Concert.

Song-Ave Maria (Schubert).... Elisabeth Schumann

(Soprano);

Sulo

Cello Solo-Sarabande (Handel).... Beatrice Hurrison; Pianoforte Presto (from Sonata in A

Major)

Horowitz; a Roamer (Mendelssohn) Robert Radford (Bass); 'Cello Solo The Garden Lara).

of Sleep (De .Beatrice Harrison; Song-A Song of Thanksgiving (Alltsen).... forte SoloChildren's Corner Suite Essle Ackland (Contralto); Piano- "Serenade for the Doll" (Debussy)

Vladimir Horowitz.

1.30 p.m. Reuter Press, Weather, ime and announcements,

1.10 p.m. Military Band Selec-

tions.

Dance of the Flowers-Valse ("Le Corsaire Ballet") (Delibes); The Jolly Robbers-Overture (Suppe): Marching with Sousa.

A Recital by Richard

2.p.m. Crooks (Tenor).

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Dream of Paradise (Lyttleton); 3.

1. I Love thee (Grieg); 2. Too late to-morrow (Langenburg); 4. Macushla (Macmurrough).

2.13.p.m. Concert Waltzes. Invitation to the Waltz (Weber, Op, (S); Tales from the Vienna Woods (J. Strauss); Blue Danube (J. Strauss)..

Bankruptcy, notifications :stute, that j A dinner dance will be held on 2.30 p.m. Close Down.. 4-7 p.m. Chinese Programme.

a first and final dividend of $7:33 per the open roof of Repulse Bay Lido, 7-10.30 p.m.

cent, has been dechred in the case of weather permiting, and at Repulse European Pro-

the Century Company, exporters, and Bay Hotel in the event of bad importers, and a firat dividend of $30 weather, to-day, September 12, at per cent in the case of Alvaro 0 p.m., and the usual tea dance will Alvares Alves, stock and share be held on Sunday, at 5 pm, at

Repulse Bay,

of making them all stop LINDBERGH'S INFLUENCE

"America? I'll tell you His own most recent work in the When Lindbergh came over here he did more to tighten up friendship It will be seen, therefore that United States has been on new and imder these two headings alone, ing aircraft or ships miles away.

supersensitive apparatus for delect- between your nation and mine than Government's

anything revenue' has drop-

that ever happened be- ped from approximately $8,000,000 “We've got apparatus so fine that fore American people said: 'Dri- per annum to $500,000 per annum it will and a battleship 25 miles tain can protect Lindbergh and we

away--out, bayond the horizon or a can't. Good old Britaini The duty on Motor Spirit is at

At the same time, expenditure has plane too high, to be seen or heard.

"If another war does come I don't prosent 20 cents per gallon, az Ave increased, particularly as regards cent increase being made during Pensions to Civil Servants, Civiling on is a portable radio.receiver.and neutrilliy polley of ours, but listen "Another thing we've been work- know what would happen to this this year. A further five cent In-Servants Salaries and the Police transmitter. no bigger than two-you'd have thousands of volun- Del Petrarga (from "Annees, de crease in duty would bring Govern- Department.

cigarette boxes, It is worn on the ...teers from. America..on your alde,!!

gramme.

Planoforte Sole Sonetto No. 104 7 p.m. An Hour with Liszt,

(Continued on Page 4.)

broker.