1940-02-27 — Page 26

Tuesday,

HONGKONG TELEGRAPH

February 27, 1940.

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Tucaday, February 27, 1940. Wyndham St, Hongkong Telephone: 20015

THE pronx "Special to the Telegraph" is used by the longkong Telegraph to indicato baws which is strictly copyright under the provisions of the Telecommun- Cation Ordinance/ 1930. Such W X bears the indication "UP" is rexeived in Mongkong on the date of publication by the United Press Associations, who re- serve all rights and forbid republication, either wholly or in part without previou arrangement

Loan Or Taxes?

HAD NOT the Hongkong Govern- mchl financed Ldan Works such as the Jubilee Reservoir, the Kai. Tack Airport and the Central Market from the Colony's Excess of Assets over Liabilities (pending reimburse- men-from two Loans which are to be floated at some nebulous date in the future), it would have been a comparatively simple matter to have mode a substantial initial contribu- tion to the Empire's war cifort without having recourse to new taxa- tion.

Since. however, the Colony's visible Treasury balance has been re- duced from $17,000,000 to $3,000,000 by advances pending reimbursement, any donation from this source la out of the question.

•

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LOV

UDE

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(Dr. Joseph Goebbels has announced that there must be more optimism and joy in Germany), Typical German Scene: Distributing crackers in a concentration camp.

Questions for

the

"HAT are the Peaco

W

Alms of the British Government? Mr. Chamberlain objects when asked to define them.

To do so, he said in the House of Commons would be futile and dangerous. Dangerous to whom, I wonder?

He considers that a determina- tion to défent Hitlerism, combined with vague aspirations towards a "Utopian Europe after the war, is all that a nation engaged upon a struggle which may prove the greatest in its history needs to sus- tain it.

He considers that such aspira- tions-the rosy bubbles of Sun- day evening eloquence-are in themselves sufficient to entitle us to the sympathy and confidence of the great neutrals and of the German people.

Nevertheless, there seems no valid reason why the vexed question at the Colony's contribution to the1.do not agree.- Imperial War Chest should not be answered by the less painful and completely voluntary method of War Loan rather than by direct taxation.

This method was used by Hong- kong in the Great War and obviated the necessity for additional taxation until July 1, 1917-three years after the outbreak of hostilities when a special War Rate of seven per cent was levied on Property for a period of two years.

The 1916 Hongkong War Loan was quickly over-subscribed and—again without recourse to extra taxation— was repaid within a decade or so of the Armistico.

To-day, as regards Public Debt, Hongkong is one of the most fortun ate countries in the world. The Colony's Public Debt on December lost stood at less than $16,000,000 (£1,000,000), or roughly two-fifths of our annual income. or the British Colonies which obtain ap. proximately tho game revenue, Uganda has

Public Debt of

£2,236,000, Mauritius of £3,000,000 and British Guiana of £4,857,000. Many parts of the Empire in receipt of less revenue have higher Public Debts. Among them are:

Revenue Public Debt $14,000 £1,200,000 682,000 1,400,000 700,000 1,414,000 2,000,000

4,000,000 20,000,000 3,000,000 .. 3,000,000

3,000,000 17,000,000 Debts of other Colonies are: Ceylon

Jersey Guernsey Fiji Islands Jamaica

nd 2,000,000

£13,000,000

titlements

12,000,000

Gold Coast

11,500,000

11,435,000

Nigeria

24,705,000

people

It has been argued that the peopl

The defeat of Hitlerism is, of course, vital. But as I said last

week, it is not a Peace Alm. It is n War Aim. If we do not achieve it then we need not worry ourselves about the future of Europe. will be a Nazi Europe.

But if we succeed, as we must succeed, what then?

It

The last war cost the nations of the world some seven million lives and at least seventy thousand million pounds in money. This war may cost no less before it is finished.

It is a big price to pledge In ad- vance for Mr. Chamberlain's contlo in the sky, of which we must not even ask to see the plans.

What is the good of Mr. Cham- berlain taiking in vague generali- ties about a new Europe with a new spirit? There were plenty of fina

Premier

by FRANCIS WILLIAMS

moral speeches during the last war. And look at the result,

What is the good of Mr. Cham- berlain telling us that the new Europe will come into being gradu- ally over many years? If the his- tory of the world has any lesson, it Is that what is good does not simply triumph of its own goodness.

Those who wish to alter the world for the better must think hard and work bard. They must know what they are prepared to sacrifice and what price they are ready to pay,

Bays Mr. Chamberlain, it does. not need a war to bring the idea of a better world into men's minds.

Well, Mr. Chamberlain has been elther head, or an influential mem- bor, of the Government of this country for the past eight years. What sort of a new world has he tried to make in that time? What sort of a world has he in fact assisted in making?

Why should he consider that on his word alone or on that of any member of his Government, the people of Britain, the people of the neutral countries, the people of Germany, shall rest assured that after the war there will be estab- Hished "a new Europe in which the nations will approach their dim- culties with good will and toler- anco "7

That is too big an assumption to accept on the mere word of any man in the world,

It comes from that same stock- pot of complacency and wishful celf-delusion out of which came

the Prince of Wales' Relief Fund and on an efficient war-time basis.

£170,000 for the War Charltics' Fund Time fact that taxpayers in the Committee. From the Colony's zur- United Kingdom are being called plus balances and the proceeds of the upon to face an Income Tax of 78. 1016 Hongkong War Loan, a total of in the £ is applauded in some quar- It

the watery soup of appeasement, the sawdust banquet of “peace in our time."

Good will and tolerance and a now order of international society will not spring unbidden from the goll of war.

It is, of course, true that Britain will not alone have the making of the peace after the war. It is, of course, true that no one can yet foresee what shape the new fron- tlers of Europe will take.

But the durability of the peaco will not depend solely on frontiers. It will depend in no small mea- sure upon the economic stability of the post-war world-upon the avoidance of such another econo-

pared to contemplate? What pool- ing of world resourers, what con- trol of Anance are they ready to accept?

ME. Chamberlain declares that the British colonial system is al- ready operated as an international krusteeship. Hlas he so soon for- gutten the Ottawa . Agreement which reduced the proportion of German goods entering British: markota duty free from 80 per cent. to 4.5 per cent, and gave to that country and to Japan, which wAR even more hardly hit, a new Oxcuse- for aggression?

I remember writing, as that agreement was signed, that the effect of the policy of Imperial Preference in increasing economic nationa and Inequality among strengthening the forces making for war, could not easily be exag- gerated.

I

do not, in the light of events,

mic crisis as has previously always feel that I have anything to with- followed war.

If there had been no economic crisis in 1931, we should, I firmly believe, have been at peace to-day. It was not the Versailles Treaty which made Hitler master of Ger- It was the economic de~

many:

pression.

The Versailles Treaty-or rather certain clauses of the treaty-gavo him his first inspiration and pro- vided him with the raw material of his first propaganda. But econo- mic depression was the recruiting sergeant which brought him to power.

If the present war leaves behind it the same legacy of economic dis- organisation and Anancial chaos we shall see the same destruction of fine ideals; the same emergopco of dark and barbaric forces; the same world-wide impoverishment. What have Mr. Chamberlain and his colleagues in mind to prevent that happening? What sacrifico of economic privilego are they pre-

Are we going to make the same mistakes again? Or are we going to fight this war with a practical ideal in front of us? And are we prepared to tell the world what our contribution to the new world.

rder will be? order

of course we cannot draw up in: advance the terms of à Peace' Treaty whose date and elreum- slance we cannot know. Of course, We cannot assume that our fleas will alone prevall when the prace conferendo is held, for whatever the terms of peace, they must be: negotiated, not dictated.

But there are certain things we can do, Ink Mr. Chamberlain if he will do them DOW. WI he, na an evidence of sincerity, diver these three guarantees?

(1) Will he announce that after the war Britain will giro full democratic freedom to India and to плу of our Colonial dependencies' ready for it, the decision, in case of

Lindbergh Out dispute, to rest. net with

$10,250,000 was remitted as a special ters in Hongkong as if, almost, Of Air Job

ה!

WASHINGTON.

of this Colony should make great nection that the highest Items wered by £1,000,000,000. Nothing was out of tune with the Government,

sacrifices in order to prove their loyalty to the cause for which the Empire is fighting. But we weren't accused of disloyalty when we did not follow the lead of the Mother- land in the 1914-18 War. In fact. the people of this Colony, in addi- tion to over-subscribing the local War Loan of $3,000,000 In the last War, Invested in British war loans the amazing total of 20,600,000 which, at current rates of exchange, is approximately $110,000,000. This amount, It should be emphasised, was voluntarily subscribed at the rute of £1,675,000 per annum for four years double the amount which Government proposes to raise to-day through extra taxation, and more than

flic entire Government revenue of each of those years.

Tho Colony's voluntary effort In the last war did not end with this extraordinary financial tribuilon. We raised £41,000 for

con-

contribution to the Imperial Govern- were a virtue, and it has been ad- ment.

vanced as the chief reason why Additionally, the Colony was in Hongkong should make an equal

Colonel Charles Lindbergh has re- volved in a local war expenditure of sacrifice. The idea is ridiculous in $1,854,292 for such items as main- view of the dissimilarity of Gnancial signed his membership of the National tenance of prisoners of war and their and economic problems existing in Advisory Committee on Aeronautics. families, cable and postal censor- Motherland and Colony. The United not because of any immediate break ships, transport of recruits to and Kingdom already had, at the out- with the Administration but owing to from England, war propaganda, etc. break of War, a Publit Debt of cumulative causes. It is interesting to note in this con- £7,902,000,000, or £172 per capita

Debt which has since been in- He has realized for months that ho as special allowances to creased $202,030 Civil Servants at the Front and Hongkong or any of the Dominions This manifested itself first pubilely $300,737 ns special War Allowance or Colonies can do no enerifice, when he openly opposed the Presl- to Civil Servants over one-third of however great, they are prepared to dent's pinn to repeal the arms em

alter this unalterable bargo and lent himself to the Isola- the total amount expended in the make-can Colony on the local war effort going fact: the United Kingdom, rich as tionists' cause while the Senate was to Civil Servants.

she is, must have recourse to in-debating the laque. These totals did not include the Public Debt in not to impose an creasingly heavy taxation if the

He has also been under attack in cost of maintenance of the Hongkong! Defence Reserve, which was mobi-economic and financial burden too many quarters for his close relation- lised, or the Colony's usual Military staggering for the people to bear. recalving a decoration from Hitler.

ship with the Nazi regimo and for

Contribution to the Imperial Govern-i That position does not obtain in Finally he incurred further hosti- Hongkong. We have a Public Debt lity from the Preas for his arrogant It should be emphasised that Hong- which, compared with most other atitude toward it. President Rouse- kong's rovenuo durlug the 1914-18 Colonies, is infinitesimal. It can be velt had no hesitation in accepting war years was less than two-fifths increased Atleen or twentyfold with-his resignation.

ment.

..

of the total revenue obtaining to-day out straining our economic resources Yet the Colony was able to finance or imposing a burden which would

For at

our

all these war undertakings by having make the annual Budget a problem. mic system. It can finance recourse to only one War Loan and by the imposition, during the last period, Incidentally, that Britain has truly voluntary basis-on a

least three years the contributions for that period on a busie two years of the war, of a seven per prepared herself for rent levy on Property. It would Colony can finance Its entire war than compulsory taxation the unani- war-this which would indicate more clearly certainly appear that the Government effort without in any way disturb-imity of our people's desire to all the of those days was able to function Ing or 'Impairing the existing econo- Motherland.

Bellain, but with an Inter-- national Court?

(2) Will he announce his Government's readiness to.. place the whole of our non- selt

- governing possessions" under International mandate

to be administered under inter-.. national

supervision for the. common good as a free trado area with none but striotly-. revenue tariffs?

(8) Will be guarantee that Britain will not accept any in- crease of territory as a conse- quence of the war, and will not demand, as we did last time, Anancial reparations from the defeated enemy?

These undertakings will not: solve the world's post-war prob lems much more of planning and effort will be needed than that. But they will do something to help. And they will give to the people of Britain, to the people of the neutral countries, to the people of Germany, an assurance of sin.. cerity that no smooth promise of a vague Utopia can offer.

If you mean what you may, Mr. Chamberlain, give these guaran...... toes now. If you will not give them, then tell the people why 10%, # that they can judge you. -