1939-11-03 — Page 24

Friday,

HONGKONG TELEGRAPH

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The

Thongkong Telegraph.

Wyndham St., Hongkong 'Phone 26615 November 3, 1939

Nazism And Neutrals

PEOPLES and Governments

to

in

Soren AKTEN 7

PARIS

(blacked out) is

November 3, 1939.

SUPREME

WAR COUNCIL'

IS THIS THE LAST OF THE UMBRELLA?

still gay

Po

ARIS, City of Light, has become just one more of to-day's cities of dark- ness. But there is no darkness of the spirit here.

Maybe, it is a little queer to us, as night falls, not to see the city picked out with gaily lighted café terraces, the Place de la Concorde Ablaze with

old-fashioned its iampa, the Champs Elysées looplag up to the Unknown Soldier's tomb like a necklace of gleaming jewels.

*Lill But the cafe terraces aro

ani There are laughter crow feel. influme

music. People still stroll up and down. the Boulevards and wide avenues in the warm summer nir. And if there 59 sadness, In many hearts there is no gloom.

the neutral countries must be deeply grateful for the zeal of Nazi Germany to declare itself their protector. The spretadle of a benet of prey gnawing at one victim pro- tenting that it will cherish the mangled creature's kith and kin is so ancouraging, Recent cffuria of German propaganda neutral feeling against British pre- vention of the entry of supplies to the Reich are doomed to fallure. When the Berlin wireless screams of an "ultimatum" and of "lawiess pressure" it is not well inspired. On whose hand these cups fit all the world knows. Neutral countries need no information from Berlin of -British-contraband--control-and-the- discussions about it on which they were engaged with us. Ten days It was announced that whe ago using belligerent rights to the full to stop contraband from reaching the enemy, we should do all in our power to facilitate bona fide neutral trade. The neutral Powers were invited to discuss the problem in order to reduce dislocation of their commerce tu a minimum. Conver sations have been most friendly, and we have undertaken that every effort will be made to supply neutral needs. Whni USA Nuzi-lam pro- postea to make of neutrals, and what commercial freedom she will leave to them, even If she abstains from violating their frontiers, has been explained in the most serious columns of the German

Press. Hungary has received a warning that she cannot be allowed to manu- facture for herself goods of the type which Germany wants her to take in exchange for food supplies.

The United States Government. before its entry into the last war, was deeply concerned to secure the

The citizens of Paris have excelled themselves. Life is going an normally. even locals patrol with gas masks and th aclmets ring over their houlders; even if our way curtains have been replaced by black blinds,

T

E spirit of the streets is the same. The bl

Lorca.are still gay. their uide counters piled with summer asteviala, with chees and parasols and uth of steht.

ta full Restaurants re

swing. although in many of then two-thirds of the staff have already been mobil- ised.

Many of the small shops, family affairs for the most part, are elased today, for out of many families father and son have both felt together for their posts.

The largest sales are, of course, ail sorts of A.R.P. niaterfals

But beauty products, too, are and- ing a rush sale. The Parislenne, tryo to tradition, is determined to look her best. cotne what may.

Out of the forty-six tenants in my block of modern terro-concrete fats, unly three of us are remaining. But the concierge. a large, jolly woman whose trusbänd left today to join his regiment, is staying on to look after

15

"Someone has got to see that you're comfortable," she said. "And it's nice to know you're here."

Paris, like Lamlun, is Just deter med to carry on,"

Jose Shercliff

Pro-German Sent To Prison

full freedom of the seas for Ameri-tendencies was, at Barnet, sentenced A man alleged to have pro-German

can trade. Conceptions of neutra- to three months' Imprisonment for lity have much changed in the striking a constable with a stick and United States. The law there now

kicking him. Imposes narrow limits on any trad- ing with belligerents. It is not for us to offer a forecast of the develop ment of American feeling or policy; but of destro to supply Germany with fighting power there is no trace in the United States to-day.

The policeman said that the mon, Arthur Morgan Bacclius (43), house painter, of Trevor Close. East Barnet. was arrested on complaints that he had been wandering about New Bar- roads, inciting people to attack him, net, writing slogans on walls and and causing publle disorder.

He had a passport indicating that

many, as recently as Juno and July.

We were able, as the Inst war pro- he had made several visits to Ger- ceeded, to obtain the co-operation of a number of the neutral Govern. ments in preventing the entry of goods into Germany whito Wo secured them what they needed for their own

consumption. Agree ments were made with Switzerland, Holland and Denmark on the 'basis

The Special Branch at Scotland Yord, added the constable, had cer- tain information about Bacchus, but this could not now be disclosed.

Bacchus said that for six years he

Union of Fascists.

had been a speaker for the British

tactica of the quantities which they had ping. Those

of lawless previously required. Germany en- autrogo sho employed from the out- joyed a good deal of neutral set of the present war. Wo may sympathy in 1914, and for some be confident that it will be possible time it endured. She has none to before long to restrict Germany's day. What remained to her in 1916 imports as severely as in 1918, and sho lost by declaring an indiscrimin-"with the good will of all the civi- ate submarine campaign on all ship led world.

War Chest Strategy

resources

N economic Britain and France have a vast superiority over Ger- Therefore economic "many. strategy is bound to be of erucial importance in the war.

Our

Internal Own

economic Atrategy must have two aims: First, lo produce as much as possible of everything necessary for the war; little on and, second; to. uso RS possible for inessential purposes.

the years 1014-1219 Throughout the Gavernment used about half the whole national incume tor public pur- poles, and about 40 per cent. of it for war purposeI.

Almost certainly we shall have to use higher proportion in the three- years' struggle which the Government is now planing.

To gain control of these resources the Government may either take over directly the industries and trades con- cerned, and purchase the necessary supplies at a fair price; or It ena attempt to buy them in competition by pouring out huge sums of new money created by various methods of in- flation.

by

DOUGLAS JAY

like activities. After the control of supplies. the next step is actual control of industries. So far, the Government has taken control of the railways, though it niso now has power to requísl- tion ships at a fixed price. Railway facilities will be commandeered by the Government at a fixed price, anul the capacity left over to the ordinary public will necessarily be cut down.

IN the last war railway stockholders were al- lowed a certain percent- In the ago return on their capital. next three years this certainly should not bo above the average return actually received since. say, 1929.

+

I hope the Government will go very much farther in establishing outright control, particularly in the engineer. ing, munitions, and aircraft Indus- trles. If the nation is to fight enthu- three years, we must be able to feel certain that small sections are not profiteering out of the emergency.

Infintion-beyond-a-certain-inovitslastically-and-whole-heartedly for able point is the wrong way of pay ing for war.

CONTROL of supplies and prices is the right methad, It was forced upon us in the inter part of the last war, and it was here that the great- est successes of wor-time economic polley were achieved. Food, shipping, and all the essential Industrial mate rials were controlled by the end of the Wer,

Hero the Government has started early and well this time. The Min istry of Supply has power to fix prices and take over suppiles wherever neces- sary, and has already acted for li atence, in the case of slee).

The Food Defence Department will do the same for our food supplies, and In the case of sugar. potatoes, and other commoditica, regulations have already been introduced Rationing will probably have to follow at a rather later stage.

Only petrol is so far being rationed in n inanner which will seem drastic to the section of the publie which uses I But petrol is the most obvious material which is at once mainly im. ported and essential for almost all war.

But the only way to be certain is for the Government to own the produc- tive assets in the war trades, and con duct them on a non-profit making bas, na we niready do by one or m other method in the case of the rati- ways. the aircraft "shadow" factories. and the Government dockyards and orduance factories.

Meanwhile, the public can help by voluntarily cansunong less wherever possible. Up a few months ago there was no public virtuo in saving, and the man who spent his Income benefited the community by helping to bring idle workers Into employment.

Now all that is changed once more. and our task is for the moment to consume less un well as to produce more. Clearly those with the biggest Incomes must make the biggest merl- fices. Fublic opinion and war taxa- tion should both help to ensure that this happens.

At the samo tinte care will have to be taken not to create unnecessary un- employment in the Arst few months.

Another essential aim must be the maintenance of our export trade.

GRIN AND BEAR IT

By Lichty

****-guona junior had a wonderful time at your party—l'vo navar seen him so alck beforal"

without which we essential importa

cannot pay for

That is why those working for ex- ports are themselves in the front line of the economie struggle. Provided that the submarine menace is de fented. the impurting power of Bri tain and France should give them their greatest single superiority over Ger

MY.

Together, Britain and France pro- bably hold £3.000.000.000 of gold and foreign securities with which we could pay for imports. Germany can have ittio more than £50,000,000.

In order to conserve theso foreign reserves, our Government has acted quickly in forbidding any further pur- chases of gold or foreign securitien by realdents in Britain, and is compelling all those who hold any already to register them with the Government.

As the need arises, these assets will De taken over, and pounds sterling wit 20 paid in compensation.

Here, It is a pity that the Govern ment apparently proposes to give com pensation at an exchange rate which allows a 20 per cont. profit to thore who sent their money out of the coun try before the war bega:},

Aurely this in an initial piece of pro- -Ateering, which Sic.Jəbu Siman shovit,

penalise severciş.

FOR in his forthcoming supplementary Budget 4112.3 Sir John has to means of obtaining arodier £500,000.013 for war expenditure, wheb we are borrowing 300.000.000 already.

Who to make the sacrifice neers sary to transfer these immense cums Into the Government's hands? That is the most vital problem of war inance, and the Government's polley will be judged accordingly.

It was in Budget policy that the worst financiat mistakes were made in the last war

Enormous sums were borrowed. Actually, £0,800,000,000 was ruled by borrowing between 1914-1919, and only £3,750,000,000 by taxation.

Do not Imagine that borrowing on this sente sumchow magically avolds the necessity for anybody making a sacrifice. On the contrary, such bor- rawing requires the creation of big amounts of new money, and so puts the burden very rapidly on those least ablo to bear it by raising prices, and by expanding profita faster than they can be taxed.

Worst of all it leaves an enormous debt interest burden after the war, which drains away all the money that might otherwise be used for social servicea, Democracy will not be worth fighting for if we make social progress after the war impossible.

for

SIR JOHN must keep this in mind above everything else. In 20 he borrows the sacrifice will come mainly from those with small incomes. In so far as he imposeH direct taxes, it will come mainly from those with lazgo,

Let bin, therefore, tax to the most drastle possible extent, and add an annual tax on capital fortunes to our existing taxes on incomes and proflia. Let the Armaments Profts Duly be extended to cover all excess profia.

Pinally, in so far as we must borrow, let us borrow at a very low rato of interest The worst blunder tha Government has made so far has been the raising of the Bank Rate from 2 to 4 per cent.

This has achieved nothing bus to make a big present to the City at the expense of the taxpayer by rading the cost of current borrowing and by mak- ing it very disculs to raise, long-term defence loans on any reasonable terms, In 1914-18 big sums of money were created by the banka, lant by them to the public at high interest rates, and then lant on to the Goverrimant by the public at stii higher rates dire

There was never the slightest fustin- ention for paying such a tribute to the banks, and that mistake, aboya others, should be avoided this tline.