1939-04-26 — Page 13

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--High-Wober:--13:45, Low Water:-21.40.

The

SECOND EDITION

Hongkong Telegraph.

FOUNDED 1001

No. 15010

SM WAT WEDNESDAY, APRIL 26,

1939 日七初月三

BRITAIN'S BUDGET SETS

PEACE-TIME

Budget.

RECORD

SIR JOHN SIMON yesterday introduced the United Kingdom's record peace-time

It calls for the expenditure of £1,285,000,000-over £30 for each man, woman and child in the British Isles.

Revenue is estimated at £942,000,000, leaving a deficit of £380,000,000 which will have to be met from Loans.

per cent.

There will be no change in income Tax, which will remain at the basic rate of 271⁄2 But Surtax will be raised by 5 per cent. on incomes up to £8,000, and by ten per cent. for Incomes above that figure.

Death Duties have been increased by ten per cent. on Estates over £50,000. Motor-car tax has been increased by 10s. per horse-power, making the total now 258. per horse-power.

The Duty on Tobacco has been increased by 2s. per lb., and on sugar by a farthing per lb.

Excise duties on camera and cinema films and plates has been increased, the addition equalling two-pence on a small roll of film.

The only reductions in taxation are the abolition of the Medicine Stamp duty and a reduction of Theatre Entertainment Duties. by 1d. per admission.

Ordinary Defence costs absorb £630,000,000 of the total expenditure.

£380,000,000 MET BY

LONDON, Apr. 25.

DEFICIT

BORROWING

THE HOUSE was crowded when Sir John Simon, the Chancellor of the Exchequer, introduced his keenly anticipated Budget.

After reminding the House that in the first of his 13 budgets, he had to provide for a grand total of only £53,000,000, the Chancellor said that to-day the-budget was 20 times bigger than Gladstone's of 1853, when' Gladstone proposed the abolition of income tax. BIG INCREASES

"Although revenue this year fell short of the estimated mark by £17,500,000, it is still nearly £55,000,000 | more than the revenue last year.

"The gross total for defence expenditure of all kinds last year was almost exactly £400,000,000, compared with £265,500,000 the previous year."

While income tax fell short of the estimates, surtax exceeded the estimate of the previous year. DEFENCE BORROWINGS

Beats Roosevelt Deficits!

LONDON, Apr. 25. presenting the "Yer Budget Sir John Simon said there are three characteristics of war time financing..

1-The huge total expenditure which can be compared only with the World War budgets,

2. The hure defence appro-

priations,

which arc

12.6 equivalent Lo

per cent, of the national in- coinc.

3. The gigantic defence loans to cover a defleit exceed- ing even President Koesr- velt's public works spend- Ing-United Press.

Opposition Demands

HITLER SNUBS BRITAIN

Refusal To See Ambassador

BERLIN, Apr. 25. NAZI SOURCES to-day indicated that Hitler will ignore the British attempts to persuade him to soften his speech on Friday.

The Fuchrer in snubbing British Ambassador.

Informed circles also express- led doubt whether the German Foreign Minister would be able to receive Sir Neville before

Sir John Simon explained that defence expenditure More Taxes! Friday.

last year from revenue was £254,500,000. They had borrowed £128,000,000, making a total of £382,500,000 for the three defence departments.

He estimated that expenditure for the supply service was £675,000,000.

The total estimated expenditure for air raids precaution services was £42,000,000, of which £37,000,000 had to be bor

poor.

was

Europe's

Defence Measures

Denmark Calls Up More Men

COPENHAGEN,

Apr. 25. THE DANISH Ministry of State to-day issued a communique saying

that

6,000 men will be called to colours immediately, the instead of waiting for the ordinary autumn manoeu-

vres.

Similar measures are being applied to the Navy, making the total of men called up for the Army and Navy between 8,000 jand 9,000.—United Press,

Gibraltar's Defence LONDON, Apr. 25.-The condition of Gibraltar's defences, particularly alr rald protection, was described as satisfactory, by Mr. Leslie Hore- Belisha, Secretary for War in the House of Commons to-day.

He added that more anti-aircraft

guns had been sent to Gibraltar since

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CALLING MAN-POWER TO COLOURS

CONSCRIPTION BILL WILL BE INTRODUCED

FOR THE first time in its peace-time history, the United Kingdom is to have compul- sory service.

Following a special meeting of the Cabinet to-night, it was decided to immediately introduce a Bill in Parliament for Conscription.

1

A second Bill will be introduced to provide for provisional restriction of armaments profits.

In order to make the Con-

scription measure more accept-

able to trade unions and labour NORWEGIAN opposed it, the Government is STEAMERS

bodies, which have 80 far

also sponsoring a scheme for drastic slashing of arms profit.

A Cabinet spokesman said to-night that if Parliamentary Labour 'i continued to opposc compulsory would be service, Labour leaders subjected 10 tremendous pressure from the rank and file-United Press.

*Conscription WAR introduced to Britain for the Arst time in its history

SEIZED

Oslo Foreign Office Is Informed

the

during the Great War. Hitherto, The "Telegraph" has been inform- Britain has been the only European) eð that two Norwegian coastal, Power not to employ this method of steamers, the sa, Prosper and the as ralaing armies. It was first introduced Promise, have been seized by into Europe as a nation-wide obligation Japanese naval authorities. by Napoleon.

The two ships were boarded near Foochow by Japanese armed parties In moto

motor launches

Premier Sees King

London, Apr. 25. The Cabinet, at a special session this evening, decided to introduce: conscription for all men between the ages of 18 hd 21.

-After the session, Mr. Chamberlain was received in audience by the

ut Palace.

Their present whereabouts are un- known.

The ships were en route from Shanghat to Foochow

The Telegraph" understands that reports of the incidents have been made by the Norwegian authorities In Hongkong to the Foreign Office in

In Tokyo,

King at Buckinghamed the King of Oslo and to the Norwegian Embassy

September, and all necessary pre- cautionary measures had now been the Cabinet's decisions. token-Trans-Occout.

A statement from officiat quarters

More Reports Of Ship Seizures

"United Press" quotes the War regarding detalls of compulsory Minister as anying that "every prac-national service--said to have been tieable precaution has been taken for introduced largely at the demand of Gibraltar to resist attack"-United France, and to refute the argument Chinese newspapers this morning Press.

that England was not in a position reported that the Norwegian steamer tu vender effective assistance to the Hellkon was seized by Japanese victims of aggression owing to the naval authorities this morning. numerical weakness of its army-is

There Is apparently no foundation not yet forthcoming.

for the report,

Belgian Decrees

Brussels, Apr. 25. The Belgian Premier to-day made a ministerial declaration requesting for special powers until December

economic the security of the and budgetary...

tother urgent marments, and

He announced that the Govern- ment has three alms-the safe guarding of the country, constitu- tional reform and improvements in the economic and financial situation." -United Press,

German Hold On Yugo-Slavia

London, Apr. 25. British sources state that Germany

Stato Visit To Romo

Bill To-day

Reports carried in Chinese news- papers yesterday, that the China Company's steamer

Political quarters believe that the Navigation Government will introduce a bill for Kwelyant is missing are equally conscription in the House of Com- unfounded. The Kwelyong reported mons on Wednesday next.

to Hongkong by radio yesterday.

Acceptance of the bill is regarded

as certain, since only the Labour Party is expected to oppose the mea- sure. It is not

however, believed, that a general service term of several years,

after

the pattern of the Con- tinental armles, will be introduced, although the principle of voluntary service will be abandoned.

·

army

LATEST

HONGKONG TO SPEND

$1,229,182.

is attempting to tighten her hold on Owing to lack of instructors, bar-

with Jugo-Slavin

11 Ave year racks, and equipment, an £10,000,000 credit which will permit similar to the conscript armies of the Jugo-Slavia to buy German arma- Continent could, in any case, hardly thements and exchange cereals for cattle. be formed for some time. The bill,

-United Press. ·

therefore, will merely provide for the Introduction of a national register and short-term training of men from 18 to 21.

The Supplementary Estimates for The Introduction of a national 1930 for Hongkong will come before register wil enable the British the Finance Committee of the Legis Government, for the first time in lative Council to-morrow. history, to obtain rellable figures They provide for the additional regarding the number of mon at expenditure of $1,229,182, making for military service.

the total estimated expenditurò for the year $30,732,042, and increasing No Divergencios

the estimated deficit from $2,405,435 Quarters close to the Government to $3,634,617.

Among the Hems included in the King-divergencies of opinion during the Supplementary Estimates are $240,-

emphatically deny rumours of alleged opecial session of the Cabinet this 000 for the construction of a light- evening. They declare that complete house tender to replace the rescue unanimity prevalled

the tug Kau Sing, wrecked in the 1938 Cabinet regarding the necessity of typhoon, and $100,000 for alte forma- Introducing a

compulsory nationalion In Argyle Street for the new register.

Kowloon Hospital and Infectious Diseases Hospital, both of which 1,000,000 Affected

Were forecast by the About 1,000,000 young men tween the ages of 18 and 21 will be affected by the measure.

the

Berlin, Apr, 25. Conversations between M. Mar-

Herr covitch and

Joachim

von Ribbentrop Unmistakablo Snub

were opened at German Foreign Ofice shortly after British sources in Berlin regard 4.30 p.m in-day. Herr Ribbentrop's and Herr Hitlor's

This first meeting lasted for about failure to receive the British Am-

assumed a positive character, and Sir Nevlle Henderson has not reto have been conducted in a cordial interview

among

be-

Rome, Apr. 25.- A State visit by Prince Paul of Yugo-Slavia to Rome was announced on the occasion of the meeting be tween the Itallon and Yugo-Slav They said Herr Ribbenthrop is Foreign Ministers in Venice.

The visit will take place in the "very busy" conferring with the LONDON, Apr. 25..

Jugo-Slavian Foreign Minister, with middle of May. IN THE COURSE of the whom he expects to secure close The Regent will leave Belgrade on debate which followed the Chan-economic and political collaboration. May 9, and will stay in Rome for

Political circles here expressed several days as the guest of the the belief that Hitler will coolly re- Emperor-Trans-Ocean. With food storage and air raid precautions, the cellor's Budget speech, Mr. Clement Attlee, leader of the

ceive the British Ambassador's

Talks In Borlin gross total was almost exactly £400,000,000.

Opposition, complained that the

message, and that there is little chance of the Fuclirer softening his Supplementary expenditure for defence was n most serious Chancellor was not really facing

speech. and important question, and a cardinal issue in the present the problem of colossal expendi

ture, but was passing it on. budget.

Sooner or later borrowing going to fall on the poorest of the

In each case the Telegraph."

for expenditure year is only

of the port

total. "Sooner or later and the sooner

The new lighthouse tender will cost For

many of these, however, ex-$400,000, and the site formation for ception has

been claimed. It the better we shall have to commbassador as "an unmistakable snub." an hour, and it is understood to have down to taxation of accumulated

is the Argyle Street hospitals $200,000. therefore believed that the com- wealth, instead of creating enormous

pulsory service will be extended to Estimates

The report on the Supplementary The estimated expenditure on food reserves was £5,000,000. Indebtedness on which interest must

and has not even received a sugges this initial interview revolved around men from 21 to 25 years of age, and

disclosed that the new tion for a future appointment the main question of rapprochement this would bring The total expenditure from revenue was £922,000,000, apart be pald," Mr. Attlee said.

the number United Press. from defence supplementary expenditure.

between Yugo-Slavla and Hungary, potential recruits to 2,000,000. Sir Archibald Sinclair, leader of

Last Minute Chango?

seen as a prelude to increased colla- The Government, it is said, plans to Dealing with social services Compared witha the original

boration on the part of Yugo-Slavia train about 780,000 men for the time and homo expenditure, Sir John

figures of £580.000,000 for defence the Liberais, described the budget as

Berlin, Apr. 25. with the anti-Comintem Powers. being. Training will probably Simon said that new internal

1te believed the people's goodwill Late this evening, it was stated on

It is confidently predicted that the merely on the lines of the pre-war! this year £950,000,000 from loan, pedestrian ond unimaginative, and £230,000,000 from revenue and patriotism, of which Sir John rellable authority that Herr von cunclusion of a treaty of amity be- projects calling for major addi-|

PLEASE Turn To Pago 4. the figures had risen to the region tions to expenditure were not of go30,000,000 for defence In all Simon had spoken, would be greatly/Ribbentrop': will receive Sir Nevilo tween Yugo-Slavin and Hungary will

its aspects, and it might well be fortified if the taxpayer was con- Henderson to-merow, or eu Thurs-be the outcome.-Trans-Occart.

vinced that the Government, was day.-Reuter, seriously tackling the problem of ex- The whole difference iliould not be penditure. met by loan, and thure must be "Let us be certain that the great additional taxation.

expenditure on armaments in being economically administered," declared Sir Archibald

Mobilising Wealth

rowed.

in the present circumstances possible.

Revenue Prospects Dealing with revenue prospects, Sir John said he esilmated various yields on the existing basis of taxa-

ilon.

more.

£942,000,000 In Taxes

Of the difference, £24,000,000

Unimaginative

ceived a reply to his request for an spirit.

with Herr Ribbentrop It is learnt on good authority that

Talks In Bucharest Interview Postponed

Bucharest, Apr. 25. Berlin, Apr. 25. M. Potemkin, deputy Soviet The interview, which Sir. Nevile Foreign Minister, arrived here to-day Henderson was expected to have to- from Tighina. day with Herr Joochlm von. Ribben- | He was met by an official of the trop did not take place.

Rumanian Foreign Office, and mem-

It was explained that Herr Ribben-bers of the Foreign Legation, as well would be met out of revenue. The "In the meantime, private expendi-trop's engagements did The total estimated expenditure on taxpapers, therefore, would and ture, especially luxuries should be the meeting, not, permit as a party of police detectives who the existing basis, of taxation was £012,000,000, and £180,000,000 prevented from competing with the

£918,000,000,

would be obtained by borrowing, national re-armament effort. Some £223,000,000 were available Sir John Simion announced the towards meeting this year's defence expenditure,*

"While supporters of the Govern- abolition of the medicino stamp duty, ment are demanding the conscription PLEASE Turn To Page 12. PLEASE Turn To Pago 12,

of

be

Seo Back Page For Further Late. Nows

PREMIER SEES KING: TOUR ARRANGEMENTS

LONDON, Apr. 25.—The King received Mr. Chamberlain at Buckingham Palaco this evening, the audience lasting an hour.

Mr. Chamberlain is expected to an- Repulse,

have been assigned the task of pro- No arrangement was made for op tecting hiin during his Journeynounce in the House of Commons on In the meanume, all the arrange- interview at a subsequent, time. through Rumania, ka

If, as lins been suggested, Sir Navile Henderson has a message to car for Giurgiu, when he grussed the made In case the King and Queen are travel

Later M. Potemkin left in privateursday, in reply to a question, that ments are going forward on the na

alternative arrangements are -'benig [sumption that Thoir Majesties 'will by the Repulse--Reuter PLEASE Tum To Pago 12. · PLEASE Turn To Pago 4.::

kunable to travel to Canada In K.M.,8.|Special