1939-05-25 — Page 25

ASTRUBDA

Chevrolet för 1939-.......... Leads the Motor Parade---Because Only Chevrolet Chak So Much for So Little-A Truly Economical Car—29.4 H.P. 22 Miles per gallon - Smart Comfortable --- Provan Performance Choice of Two

Canadian Models with a Wealth of Super Equipment,”

Master "85" Trunk Sodan with Con- ventional front axle ......HK$3,600.00)

Master de Luxo” Trunk Sodan with In- dependent Front Suspension and Remote Control Gear Shift ..... HK$3,900.00

FAR EAST MOTORS.

THE TAR EAST AVIATIÓN COMPANY, LIMITED, 26, Nathan Rd, Kowloon.- Telephone-50101,

„Dollar T.T.:--51-52378

Masager

Telegraph"

for like, SouthySkan2318/168 Post, Ltd.,

1 deine Undimas-$77.00:p.hongkong. •

"High" "Wudor:===13:37′′**

Low Water:--21.03.

The

Ladies'

FINAL EDITION Swim Suits

Hongkong Telegraph.

FOUNDED 1001

No. 15830

四拜禮 號五廿月五英港香

25, THURSDAY, ・ MAY

日七月四 1939.

BINGLE COPY 10 CENTS

$35.00 PER ANNUM

Whiteaway's smart selection

is worthy of your inspection.

Morley's Wool and Lastex

$17.50

$13.50

Suits with Skirt Ballantyna's Suits

WHITEAWAY'S

TAXATION COMMITTEE RECOMMENDS

INCOME TAX AS FIRST MAJOR STEP

Five Per Cent. Levy On Income: Tax On Company Profit: ARAMIS IN NEW INCIDENT Increase In Assessment Rate To 25 Per Cent. Recommended JAPANESE BOARD NEW TAXES FOR SCHOOLS, LINER NEAR H.K.

BETTING, LIQUOR, CARS

CLAIMS BRITISH ATTACK Japan Protests At "Assault"

SHANGHAI, May 25. DESPITE THE settlement of the situation arising from the Landing of British marines at Pootung, it is revealed that the Japanese naval authorities are lodging a strong protest with the British authorities regard ing the wounding of Lt.-Com. Noil, of the Japanese Special Naval Landing Party and his Interpreter by British blue-

jackets in the British Cotton Mill

yesterday.

It is reported that this in- cident led to the Japanese de mand. for the withdrawal of the British bluejackets from: Poo

fung.

The Japanese officer went to the British mill to inquire into the British landing, which was made without the knowledge of the Japanese authorities.or Domei,

North Atlantic Air Service Soon

London, May 24. The departure of the United States flying-boat Yankee Clipper from Southampton on the return journey vla Marseilles and Lisbon to New York, after the inauguration of the Airways North- Pan-American

PROPOSED TAXATION

IN BRIEF

THE REPORT of the

Committee on Ta- xation may be sum- marised as follows:

Minor taxes, aggre-

gating an additional

revenue

of between

$500,000 and $1,000 000, should be adopted before major taxation. Recommended minor taxes are:

Increased school fees

Tightening of hospital fees and increased fees for medical

government sarvices; Increased pari-mutuel and

sweepstakes taxes;

tios..

Higher Telephone Co. royal- Gas and Electric Co. royal-¦

tlas..

Taxi Co. royaltics, and in- creased licence fees for public vehicles; Increased Liquor and Motor

Spirit duties up $1,000,000 p.a.

to

if these minor taxes fail to meet Government require-

Committee the

Atlantic airmail service, lent special Interest to statement in the House! of Commons this afternoon on plans for the commencement of a North-ments, Atlantic service by a British operat- ing company.

Captain H. H. Balfour explained that postponement had been neces- sitated by the desire in the interests of operational safety and efficiency to give a 400-hours flight test to engines, and to carry througli certain alterations to the fuelling system found desirable as a result of prac- tical tests.

It was hoped the service would commence in July-British Wireless.

re-

commends:

1.An Income Tax of five or ten per cent, of income:

1

2.-A tax on profit or divi- dends of public com. panics operating in Hongkong

3. Increase in Assessment Rate from 17 to 25 por

cont.

FOLLOWING closely on the Ranpura in- cident, a Japanese The Report of the Committee on destroyer yesterday Taxation, appointed on December 8 last held up the 15,500-ton Messageries Maritimes year to consider and report on what liner Aramis, less than methods of taxation could best be an hour after it left adopted in Hongkong should it be Hongkong en route to

Shanghai. necessary to raise additional revenue, was tabled in Legislative Council this afternoon.

The Report recommends the adoption of Income Tax in the Colony if the required additional revenue is in excess of $1,000,000. If additional taxation is below $1,000,000 several minor forms of taxation are recommended.

TEN PER CENT, OF INCOME !

The Committee considers that if Income Tax is adopted, a maximum rate of five per cent, should be adopted on institution with a possible rise later to per cent.

Despite vigorous protests by the Commander of the gleaming white liner, a Japanese boarding party of three officers and two men forced its way on board and seized the ship's papers and log book.

THE KING at the microphone,

These were thoroughly ex- BONDS LINK TWO. DEMOCRACIES amined before being returned to the ship.

Although the squat, square funnels and gleaming white hull, on which is doubt regarding the nationality

1:0

painted a huge tricolour, left of the lince, the officer in charge taining verbal confirmation of

ten

the boarding party insisted on

"Even at this low rate, and allowing for reasonably generous personal, family and other allowances, but always assuming effective administration, the existing very imperfect statistics of the income of the Colony suggest that the yield might be of the order of $5,000,000 per annum," the Report declares.

"We consider, however, that the tax would be more easily accepted and less llable to evasion if the maximum on Its first institution were put at five per cent.”

HIGHER ASSESSMENT RATE

The Report suggests that Income Tax should be the frat form of major taxation to be adopted if minor taxation fails to bring in the required revenue..

But, in addition to Income Tax; two-revolutionary forms of taxation of a major nature, are also alternatively recommend- ed.

These include:

1.Increase in the present Assessment Rate of 17 per cent, which annually yields approximately $6,000,000, to 25 per cent, this, it is estimated, would yield a further $3,000,000.

2-A tax on the profts, or dividonde, of pubile companies operating in Hongkong. The Report estimates that the profits. liable to such a tax might be something like $50,000,000 per annum, yielding annually, at five per cont., at total of $2,500,000.

FRANCO-SOVIET PACT BECOMES_TRIPLE ALLIANCE

Premier Announces Pact Details: Full Agreement At Early Date

The Report recommends that, of the three major forms of new taxation, Income Tax should be the first choice and states;

If Government is satisfed that. after allowing for possible economics, substantial further revenue from taxation is likely to be, required

Eastern countrý/-

of

the

port of origin, the port. of departure and the type of cargo carried.

Aboard For Hour

The Japanese remained aboard the after, which it was released.

vessel for approximately one hour,

The Aramis is scheduled to arrive

In Shanghai to-night.

KING GEORGE VI PLEDGES PEACE

WINNIPEG, May 24.

HIS MAJESTY the King to-day made what is possibly the most vital pronouncement on international affairs he has ever uttered, during his Empire Day radio broadcast.

The French liner left the Kow- loon-wharvey, where ahe-fied-up-Canada-and--the United alongside the P. & 0. liner States have had to dispose of Hanpurn, at 1 o'clock yesterday,

their

About 40 minutes after leaving searching differences in Hongkong territorial waters, the aims and interests during the ship was intercepted by a Japanese past hundred years but never destroyer, which hoisted the usuni

"heave to" signal, to which it drew has one of these difficulties been attention by firing a blank shot. resolved by force or threat," he

About 80 saloon and 200 passen- said. gara were aboard the French ship.

Radio Appeal

The "Telegraph" . understands

"No man, thank God, will ever

arbitrament; again conceive such between the peoples of my Empire

LATEST

Duke Seeks To Visit Home

that the Commander of the Aram and the people of the United States that the Duke of

PLEASE Turn To Page 4,

STRONG PROTEST LODGED

Sir Percy Noble Tells Japanese

THE

"TELEGRAPH"

is

as obtained "during the wars for independence."

PARIS, May 25-It is understood

Windsor has notified the British Government twice since January that he desires His Majesty thereby pledged peace to pay a brief visit to England. with the United States.

Both times, t said, he has been This incursion Into international fold that his visit would be untimely politics is another of a series of and it has been suggested that he broken precedents and it seems waits another six months.

that the King and his advisers on The Duke telephoned his mother" tour are entering a phase of more as soon as he heard about her dynamic conception of the duties accident yesterday-United Press, as a constilutional monarch than they have hitherto,--United Press.

Text Of Spooch

Submarine Rescue

WASHINGTON, May 24-Tho WINNIPEG, May 24-Addressing rescue ship Falcon radioed the Navy the-Empire-by-radio, the King de Department to-day saying they have clared that civilisation in Europe and rescued all the known survivors" of Asia was sorely troubled, and the Old the Squalus-United Press. World might look for guidance to the New World.

after a

within the next few years, it would officially informed that a strong

Recalling that Winnipeg City, from Russia And Poland WARSAW, May 25-The Soviet desirable to institute a special protest has been lodged with the which he was speaking, was no more enquiry into the practicability Japanese authorities by the than a fort and a hamlet upon an Ambassador, M. Nicolal Scharanov of Income Tax in the Colony, under Britlah Commander-in-Chief, open prairie when Queen Victoria beto-day took charge of the Soviety gan to rule, His Majesty caid that to- Embassy here, marking the resLUNP“ the Chairmanship, or at least with LONDON, May 24. the assistance, of a man experienced Admiral Sir Percy Noble, in con- day it was a monument to the faith tion of full diplomalle relations be THE BRITISH CABINET has announced the decision to conclude in the administration of the tax in an nection with the Ranpura out and energy which had created and tween Poland and Russia

helped up a world-wide Empire of lapse of two years which is consider- [rage..

It was reported, from unofficial our time,

fed very important.-United Press. a mutual aid pact with Russia.

"We often talk of the Old World Disadvantages

sources this morning that, as an out- As regards the proposed increase come of the incident, British naval and the New. It is one of the greatest in the Assessment Rate, the Report guards may be placed on all British services of the British Empire, that ships, trading to and from the Far it serves as a link to harmonise the two. For a long period history was Having regard to the considera- East tions of inequity and social evils It is emphasised that, there is no the mind of Europe, which led the likely to arise from the incidence of confirmation for this report, of which march and fixed the sims of progress

PLEASE Tum To Pago 4. an increase in the rates, wo recom- the naval spokesman at present mend that, in spite of oDED and knows nothing economy of collection" and the size

A Government spokes man told the "United Press" that the Foreign Secretary, Lord Halifax, hoped within 24 hours to instruct the British Ambassador to Mos-. cow to propose to the Soviet Foreign Minister acon- clusion of a complete pact for mutual aid.

It is the intention at present to marge The 1930 Franco-Sovici

triplo sillance.

RESCUE FROM LIVING TOMB

24

Diving Bell Saves FromSubmarine:26Die

PORTSMOUTH, May 24.

A REPORT received at 6.35 p.m. states that 24 of mutual mistance treaty into a the crew of the lost US. submarine Squalus have been

brought to the surface in the diving bell bein It is also understood that the Cabinet has approved the provision The Navy Department reports achieving the drst diving bell rescue obligating any two-powera ormed that 26 members of the sunken in the history of the Navy

The rescued men were placed in a etc, mas

Company Taxation

A sensational rumour was current

of the yield to be expected, this in Shanghai this morning that the means to additional revenue, should Japanese boarding party had seized be regarded; rather as a last re-three official mail bags aboard the A Ranpura. The bags were allegedly Bource.**

on consignment to the military aus thorities. In Hongkong. This rumour As regards the proposed Corpora-emphatically denied in official tien Profits Tax, the Committee military circles. draws-several adverso conclusions, Yangiso Interforance. including dimculty of assessment and LONDON, May 24-Mr. Neville collection, objection on the score of Chamberlain stated in the course of equity, ev

evation

unjust discrimination,

a reply in the House of Commons treceived a number of reports indicat- ¿if. attacked.

Me, Chamberlain sald all the while 32 are known to be safe, they will be transferred to the 17.S.S. the sense that it is discriminative, we ing that there recently had been 2 Brooklyn's emergency hospital if they feel that it has at least the merit of marked Intepelnéations in interference Delavant-points of view had been So although there are full Eight-persons, atin alive, roare in good condition prouding the burden over a wider WILL SUMITAS FENG Md shaping in

TAD IESCUE "Crew required a little class, namely, all shareholders, råther (he lower Yangile delta, eg vlaggen some further points to be clarined, main in the submarino.

does not, paticipato any dimeulty The Falcon's

chamber under two hours to haul down a line thankettikir bite opony, the more He added that, representations Kregard to thebek bakat and brought the Arst seven of the Squats to be fastened to the Squalus, restricted class; of dandowner we helft made to lie. Japanese

PLEASE Tum To Los 4

PLEASE THIN TO PABO 2 ~--~| Clovernment —— Brutor —— LEASE Tom To Pa Realcrew to the surface at 1.30 p.m. thu

forces

Ho

to go to the old of the third submarino~ Squalua"?" ara:.“ dead (docompression chamber, after, which houths such-a-tax-li→unjust looday, that Viscount Halifax had i

rescue

Seo Back Page For

Further Late Nows

ANOTHER BY-ELECTION REVERSE FOR GOVT.

LONDON, May 25. ANOTHER serious rebuff for the British Government's policy was administered yesterday, when in a by-election at Kennington, the Government lost the seat to Labour.

-In-a-total-turn-over of 4,141 votes, Bir. John Wilmot gained

the seat for Labour by polling 10,715 against Major Angus Kennedy, Conservative, who received 7,119 votes.

The Labour majority was 8,696,95 In-the-last-election Sir George Harver,. Conserva

by the narrow margin of 545; polling 1201 The by-election was caused by his death ecial.

Page 25Page 26