1939-09-28 — Page 11

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Dollar: TT-11 T.T. New York:

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The

SECOND EDITION

Hongkong Telegraph

FOUNDED 1001

No. 15544

PUS BAHAƒXUS. THURSDAY,

SINGLE COPY 16 CENTS-

SEPTEMBER 28, 1939. BATAA 30.00 PER ANNUM

"JUST ARRIVED:

FRENCH BAGS

IN SOFT KID

Smart shapes and

beautiful new

shades

from $1950 cái

Hours Wing, Brick, Navy, Black,

Brown, Greengage

WHITEAWAY'S.

Income Tax 7s. 6d. in £; 60 Per Cent. Excess Profit Tax; Capital Levy May Be Introduced: War To Be Financed

Be Financed By Direct Taxation of People COLOSSAL TAXATION ANNOUNCED IN BRITAIN'S FIRST WAR BUDGET

REPRESENTING THE MOST STAGGERING BURDEN. OF

TAXATION EVER UNDERTAKEN BY A FREE NATION IN HISTORY £938,000,000 MUST STILL GALLANT POLISH THE HOUSE OF COMMONS LAST NIGHT, PROPOSES STUPENDOUS

SIR JOHN SIMON'S WAR EMERGENCY BUDGET, INTRODUCED IN

INCREASES.

INCOME TAX IS TO BE INCREASED FROM 5S. 6D. TO 7S. 6D. IN THE & STERLING.

AN ADDITIONAL SURTAX, RANGING FROM 1S. 3D. ON IN- COMES OF £2,000 TO 9S. 6D. ON INCOMES OF £30,000 AND OVER, WILL BE IMPOSED;

Duty on estates of between £10,000 and £50,000 will be increased by ten per cent., and on estates of over £50,000 by 25 per cent. BEERS AND SPIRITS

COME FROM BORROWING

LONDON, Sept. 27 (Reuter).The main figures of the budget make the revised estimated expenditure for the curront year up to £1,933,000,000.

The rovised estimato of revenue, including £107,000,000 from now taxation amounts to £995,000,000, and this loaves £938,000,000 to bo mot by borrowing, of which £500,000,000 is already authorised to be met from defence loans money. Effective resolutions giving legislative force to the proposals ware agreed unanimously within 100 minutes of the budget speech, and the general debate then opened,

FIGHT AT END

Warsaw Completely Wrecked, Capitulates To Nazi Forces

SPECIAL TO THE "TELEGRAPH"

Excise duty on Beer will be increased by one penny. Duty on spirits Exaggerated Reports from Berlin ONCE PROUD CAPITAL OF A NATION OF

will total 13s. 9d. a bottle.

Duty on sugar will be increased by one penny per lb.

An increase of 2s. per lb. will be imposed on tobacco.

. In addition, trade and industry will have to bear an all-round excess profit

tax of 60 per cent.

LEVY ON CAPITAL?

During his outline, Six John Simon warned that the Government might be forced to apply a levy on capital,

Even with the next taxation, revenue will fall far short of war time expendi- ture, and several forms of loans are to be made available to the public.

Estimated expenditure up to March this year will be £2,000,000,000, which is! only £696,221,000 short of the record Great War expenditure in 1917-18, despite the fact that the Empire will only have been at war for seven months.

RICH AND POOR TO PAY

LONDON, Sept. 27 (Reu- ter).Sir John Simon's drastic Budget, affecting rich and poor alike, has caused an enormous im- pression throughout Britain, regarded as the best possible proof of the country's determination to carry out a supreme war cffort.

the

HIGHEST IN HISTORY

The new income tax is the highest in the nation's history.

NAZI CLAIMS IN N. SEA ACTION

SPECIAL TO THE "TELEGRAPH"

NEW YORK, Sept. 28 (UP)-The story of the North Sea engagement between British warships and German aircraft, at first denied in London, is slowly

being patched together.

An officiul German communi- que claims that a 1,100lb bomb, probably the biggest bomb ever

SOVIET

FREIGHTER hit on a British aircraft carrier. TORPEDOED

used in warfare. scored a direct

The Budget proposes to raise about 51 per cent. of Serious Affair In

expenditure by taxation, which is almost double the proportion raised during the Great War.

Baltic Sea

The crux of the Budget was Sir John Simon's state-

SPECIAL TO THE "TELEGNAPH” ment that financing other than by taxation or loans The Moscow radio station an MOSCOW, Sept. 27 (UP)- from genuine savings must be inflation. Britain, he nounces that the Soviet freighter declared, intends to avoid this by financial efforts. OPPOSITION SUPPORT

unprecedented

Mettalish has been sunk near Narva Bay, off the Estonian coast, by an unidentified sub- marine.

The report said 19 of the

that, five are missing.

The communique claims that two

5501. bombs struck a British battle- ship, one exploding fore and the -other-att--

"It is unnecessary to elaborate on

LONDON, SEPT. 28 (UP). — WARSAW, 34,000,000 PEOPLE, HAS UNCONDITIONALLY CAPITULATED AFTER ONE OF THE GREAT- EST AND MOST HEROIC RESISTANCES TO SIEGE THE WORLD HAS EVER KNOWN.

A radio broadcast from the city states that it is completely wrecked. Hardly a building remains standing in an area which once held 1,300,000 people.

GIANT INFERNOS

Giant fires are raging everywhere, and, because the water supplies have been destroyed by Nazi bombs and shells, there is no method of controlling the infernos. The radio announcer described the city as inferno upon earth.”

an

Warsaw officially capitulated at 11.30 a.m. (6,30 p.m. H.K.T.) after being besieged for 21 days.

the effect of these very heavy bombs," RAIN OF DEATH

the communique adds,

The communique claims that all German aircraft returned safely to lier bosts,

Exaggerated The German claims appear to be

definitely exaggerated.

The action is now confirmed by thio British Admiralty, which

The Opposition, whilst reserving the right to/freighter's crew were saved, and damaged by anti-aircraft fire and a.

criticise certain points, will support the Budget.

the

During that time, it is computed that 20,000 bombs and 100,000 shells were rain- ed upon the city.

The formal surrender of the SCOTLAND

city to the German High Com-

and will be made on Friday.

The surrender includes 100.-

MYSTERY

reiterates, however, that no direct hits were scored by the German raiders,

000 troops, all of whom will lav Unknown Plane Sprays Опе Gernian flying-bont was down their arms. second

was brought down. The

24-Hour Armistico

Town With Bullets second machine fell into the sea und A 24-hour armistice has bcen

ls crew of four were rescued by a agreed upon in order to permit the LONDON, Sept. 28 (Reuter), "Sarious Development" British destroyer.

city to attempt to quell the great Ares A spray of machine gun bul- square ott has ruled

The British Bollila consisted of a that are roging, This event colnelded with

store wa

In addition, Warsaw has thousands lets from a mystery plane fell on. attendant cruisers and of dead civilians and solders still not Ballachantuff, which is a hamlet Moscow to explain the activity of carrier,

buried, owing chiefly to the lack of ten miles from Campbelltown in There was no loss of life on any burial grounds and insufficiency of Argyllshire, during to-day.

labour for digging the large trenches Diplomatic circles characterise the British ship.

The roof of the garage belong- A secon! Germans official com- that are being turned into common munique described the North Sea Braves. All the city's parks have ing to a hotel was struck by engagement, schich was audible been converted into graveyards. several bullets. A window in from the Norwegian coast, as theļ

People Starving

the hotel was broken. first time in history that a clashi The surrender of the Polish capital between aircraft and warships of was announced over Zeesen Radio at seen, Germany and Britain has occurred 8.10 p.m. (6.10 a.m. H.K.T.). The on the lich Bone

"Severe as the Budget is, it does not bring us even within the remote range of the limits of our financial arrival of the Estonian Mission to strength, or the sacrifices which the people will accept alleged Polish submarines in Soviet as they become necessary as a means to victory," declared and Estonian waters, Sir Archibald Sinclair, leader of the Liberal Party. Incident as a serious development.

War Emergency Budget:

Simon's Speech in Full

Rescue By Patrol Ships MOSCOW, Sept. 27, (Router).-- The Soviet steamer Metalliah was sunk by a submarine this evening. Nineteen of the crew of 24 wore rested by Soviet patrol ships.

The Metallish was attacked in Narva Day off Eathonia according to "Hevas."

Allegation Withdrawn The second Nazi communique

withdraws the earller allegation that? the aircraft carrier had been sunk, Danish Ship Searched

The vessel, however, was damag COPENHAGEN, Sept. 27 (Reuter). (ed in vital spots and was reduced to

Germany is einted stopped and search-

After a search lasting one and o

Berlin newspapers,

"

which is splashed in heavy type In The newspapers draw attention to the fact that Britain started the war with seven pircraft carriers in com- mission.

Income-tax of 7s. 6d. in the f is the highest since the tax was first introduced in 1798. It compares with 1s. 3d. at the start of the last war and the previous highest figure of six shil- lings.

LONDON, Sept. 27 (Reuter).--Substantial all-round The budget as a whole, writes increases in direct and indirect taxation, including Danish Coastal steamer bound for a wreck, the commed at the repo

"Renter's" city editor, re- presenta undoubtedly raising of the income-tax level to 78. 6d. in the £, and Copenhagen was predo-boat just heaviest burden over under- large increases

in so-called luxury articles, were outside Danial waters to-day taken by a free nation in

announced history.

by Sir John Simon, Chancellor of the half hours the vessel was released. The budget proposes to raise Exchequer when he introduced the war emergency

about 51 per cent, of the

Submarino Off U:S. Coast ex-budget in the House of Commons this afternoon.

SPECIAL TO THE !!TELEGRAPH" penditure by taxation, which is almost double the Great At the outset, Sir John Simon lure on defence had grown to a total Radio Marine Corporation reporis fence, one newspaper exults.

NEW YORK, Sept. 27 (UP) The ed a vital matter for Britain's de War's proportion, which for said that when he introduced of £730,000,000, and the amount to having intercepted a message from Further Statement instance from 1915 to 1916 the budget at the end of April borrowed at that time came to the American tank, steamer Japan

something like £480,000,000.

LONDON, Sept. 27 (Reuter).—A was 22 per cent.

he estimated the expenditure

Arrow saying that she had sighted The crux of the budget was Sir for the year would amount to rose in August was £1,453,000,000, E.S.T., Off Ocean City, Maryland.

Total expenditure when Parliament an unidentined submarino al 3 pm, further announcement was made in London late to-night in connection John Simon's statement that 51,822,000,000,

of which C502,000,000 was to be bor.

Upon sighting the tanker, the sube with the unsuccessful Nart air attack The defence expenditure included) financing other than by taxa

rowed.

marine submerged and headed off on a British squadron in the North tion or loans from genuine stated as £630,000,000.

in thni vaat total was at that Lime

Poaco Timo Effort,

The announcement says that Mr. savings must be inflation

These tolala, vasi sa they were,

Delegation For England

Winston Churchill's statement in the The budget proposals were calcu-| were arrived at on the basis that

THE HAGUE, Sept. 27 (Reuter)-House of Commons was literally and which Britain intends to avoid lated to raise from revenue £942,-

we remained at peaco

A Netherlands delegailun has been absolutely correct, and that there was by unprecedented financial 000,000, and consequently at that

the year.

throughout Appointed to go to England and dis- no truth in the German counter efforts.

Lime £300,000,000 was left to be

cuss questions of neutral shipping and statement that an aircraft carrier and Before the Finance Act was passed, and a vote for credit for an addi- borrowed within the financial year. On September 3, we were at war, trade,

been: sunk, D.; battleship...... badly The delegation is headed by the damaged, and that all the Nazi planes the figures for this year's expendi PLEASE Turn To Page 2.

PLEASE Turn To Page 10.

[returned' mfely to their bases,

Though the Chancellor has obviously PLEASE Turn To Page 2.

to Boo..

Sea.

The loss of two must be consider

A plane was heard, but not

Berlin Radio's orchestra Immediately A quarter of an hour later the afterwards struck up "Deutschland plane was heard again and there Ueber Alles" and the "Horst Wessel" were three rapid bursts

Half a million starving civillon machine gun fire,

of very family of whom has suffered bereavement, remola in Warsaw.

The food alluation is believed to be desperate.

Armistico' At Noon WARSAW, Sept. 27 (Reuter) report states that on armistice har been agreed upon since noon to-day, PLEASE Turn To Pago Z.

The hotel was crowded with visitors. There were many chil- dron including Glasgow evacuees, of the firing, playing on the beach at the time

Police aro investigating the incident,

TIENTSIN ISSUE AGAIN WORTHY OF FRONT PAGE

SPECIAL TO THE "TELEGRAPH!! TIENTSIN, Sept. (28) (Domel).The Japanese military authorities in Tientsin have refused to resume negotiations for a settlement of the British Concession Issue until Britain ac

cepts all Japanese claims without qualification.

This is the latest development in Japanese on several occasions with. North China, where events have been proposals for a settlement of the overshadowed during September, by issue in Tientsin. :` the European crisis.

| The Japanese have refused to give

break of war in Europe, the British overtures.

It is revealed that since the out- favourable response to the British authorities have approached thej PLEASE Turn To Pago 10.

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