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VOL. II NO. 172

Seeks Final

Answer

New Delhi, Apr. 23. Viscount Mountbatten, Viceroy of India, was re- ported reliably to have ask- ed Mohammed Ali Jinnah, the Moslem leader, for o final answer, whether India would split when the British pulled out.

Lord Mountbatten, and Mr Jinnah met ot the Viceroy's residence. Lord Mountbatten persisted in his arguments that Mr Jinnah should accept the Central Government plan instead of leading the Mos- lem states off into indepen- dence.

He was understood to have asked Mr Jinnah for his answer by May 5, in- cluding proposals for any conditions or modifications the Moslem League might wish in forming the future. government of India. United Press.

The

E CHINA MORNINE POSTA

Ertster, 234 Publisher

Dine At the

PG

Hongkong Telegraph. G

THURSDAY, APRIL 24, 1947.

For

Reservations-

AUSTRIAN TREATY HOPES

ABANDONED

General Marshall's Proposal

Moscow, Apr. 23.

The American delegation to the Moscow conference has abandoned hope of completing the Austrian treaty here and is preparing for adjournment to- morrow, it was learned today.

Even if the Russians should give way on the German assets issue the key problem in the Austrian settlement-the Americans doubt that the Big Four meeting could be prolonged sufficiently to complete the treaty. The United States delegation believed the Council would require two more meetings to clean up odds and ends and decide to whom to refer the various issues on which the Big Four were unable to agree.

The deputies for Germany spent the morning draft- ing a balance sheet on the status of alf proposals before the council. The Ministers are meeting this evening. They expected to meet again tomorrow, probably preparatory to an carly wind-up of the conference. If they decide to adjourn tomorrow, the delegations would begin leaving immediately. This evening's Council session was postponed until 5.30 p.m., apparently because the deputies 'had not completed the report for which the Ministers were waiting.

United Press.

Income Tax Reduction For Britons Hinted

London, Apr. 23.

Mr Hugh Dalton, Chancellor of the Exchequer, in- timated in a debate on the budget in the House of Com- mons tonight that the standard rate of income tax at nine shillings in the pound this year, would probably be reduced next year.

A resolution on income tax was approved by the House after Mr Dalton, against strong Conservative opposition, defended his decision to Kive income tax rellet this year only by increasing the child allowances and the tax-free tallowance on carn- ed income.

It would have cost £72,000,000 to reduce the standard rate by six pence, almost as much as the other two rellefs put together. Because of Britain's financial position, he had decided to wait at any rate for an- other year.

The suggestions for a reduction of the surtax-now reaching a maxi- mum of 19 shillings and six pence In the pound-were quite inadmis- sible, he said.

FAVOURS EARNED INCOME

Answering an argument that I was unfair to tax Invested income_ at the same rate os carned income, Mr.Dalton said that his present re- ductions had definitely differentiated in favour of eurned income, and benefited from the child see would, for the most who were dependent

Colonel Dower said that more and more energy was being wasted by all

sections of the community striving to add up their expenses to Ebve an extra sixpence on their income tax,

THE LAST MEETING

Moscow, Apr. 23. The U.S. Secretary of State, General George Marshall, tonight proposed thnt if no agreement is reached by the Big Four on the Austrian treaty before the date of the next United Nations meeting the whole question should be referred to the General Assembly next September under Article XIV of the United Nations Charter.

Mr Molotov will reply to General Marshall's proposal tomorrow when the Foreign Ministers assemble in what will almost certainly be the, of the Council of Foreign Ministers. last meeting of the Moscow session

Article XIV. of the Charter entilles the General Assembly to recommend measures for adjustment of any situation which is Bkely to impair the general welfare or friendly re- lotions among nations.

4

General Marshall said that failure to

an Austrian treaty in Moscow centred around the ques-

Conservative Rupert Boothby, advocating a differentinilon at the higher as well as the lower rate of income tax, declared that there was no reason why men who had the energy and Initiative to earn £1,000 a year should be taxed at the same rate of a man who happened to tion of German assets.

The Soviet delegation, he said, had Anot moved from the position that

Inherit a fortune.

A

Scoure

Labour Member, Mr J. Sparks, suggested: "We are evolving they adopted in London and, in fact, a new system of society in which had moved further away from this money incentive is going take a very backward place."

Reuter.

YOUTH KILLS

to

Mr. Molotov stated that the views

of the Soviet Government had been repentedly stated and that he had nothing to add, but Mr Bevin re- plicit: "You never know your luck," and Mr Molotov agreed that though there was nothing today on the main points he was willing for the deputies to discuss minor questions.

During the Ministers' consideration of the German depulles' progress, agreement was reached on the date of the return of German war pri- saners stift held abroad, All delega tions accepted December 31, 1048. as the deadline for the return of all former members of the German arm- ed forces and supplementary service.

This formula, whitch is one con- sistently proposed th earlier discus sions by Britain and America, covera not only Germans technically held as prisoners of war, but also large num bers who may have been "civilions" since their capture.--Reuter:

Yesterday we gave you n scene of the appalling floods at Haddenham which showed water nearly up to roof levels. Here is another acrial shot of that inundated- village, with Army "Ducks" ploughing through the floods to rescue marooned householders. It is for victims of villages such as Haddenham that the British Flood Relief Fund has been established. Only a few thousand dollars are now required for Hongkong to reach the £10,000 mark. Donations for this urgent cause may be sent to the General Manager, South China Morning Post, Ltd., Morning Post Building.

U.K. EXPORTS DECREASE: BAD WEATHER EFFECT

D3

in

and

London, Apr. 23.

The first quarter clump the Board

-was-nttributed In-part-to-0--three-

weeks shut down' of fuel factories during February when all shipments were delayed by the worst winter in 50 years.

short

The value of United Kingdom exports for March was £82,600,000, the lowest figures except for the shorter month of February, since September last year, the Board of Trade announced today. The transport and shipment of goods for export was still being hindered by bad wea- ther. The closing down of industrial firms in February also had some effect towards the end of the period. Allowing for the rise In prices, have said the rate must ultimately since 1938, the volume of exports in be raired to 175 percent to maintain the March is estimated provisionally at living standards. three views of the other

powers

90 per cent of the 1938- volurne The three Western powers could not

112 per cent accept the Soviet views on this point compared with because if adopted they would force January. Imports in March (£130.~ { of Trade sald in releasing the figures Austria to hand over property taken month since December, 1025

000,000) were higher than in any by Germans under force and duress. exceed those in January

600,000, or 11 per ceni.-Reuter.

by INCOMPATIBLE PROPOSALS

FIRST QUARTER RESULTS General Marshall said that he

London, Apr. 24. thought the Soviet proposals on Britain suffered a setback in her German assets were incompatible vital battle of exports" in the first with the ogreement reached at A 23-year-old youth shot two Potsdam. The three other powers policemen to death In a street and repeatedly urged the Soviet

Counting on sales abroad to re- corner gun battle yesterday, Ser delegation to put forward new pro- geant John Creedon reported.

pusals to meet their objections, but store her war shattered economy, the nation exported only 101 percent of mone had been forthcoming, A delective officer sald the youth identified himself as William Hallo-

her 1933 average total during the the Soviet delegation should make a

first three months of the year, com- greater effort and put any concrete pared with 111 percent in the last Mr. Dallon emphasised that "no-well and that he is the adopted son body at all" actually paid an effec-of a North Western University pro-German' assets de not include assets quarter of 1940.

proposals to indicate clearly that tive rate of his whole thecome tax at 10/0 on fessor.

Income. Conservative members, Mr Ralph Assheton, Mr Roland Jennings, and Colonel Alan Dower, argued that the Government was penalising the higher earning professional man, whose business enterprise was being stifled by lack of incentive.

families who

part,

011

be

earned incomes. People with

defnitely into either

large incomes fell two groups. They derive their incomes almost totally from

or almost to-

tally from inve not from u

fair share of

EDITORIAL

14:

POLICEMEN

Philadelphia, Apr. 24.

The youth was taken to hospital with four bullet wounds and was reported to be in a poor condition.

In

telephone interview, Doctor Alfred I. Hallowell, professor anthropology in Chleago said that he was

of

100 shocked" to discuss the shooting-Associated Press.

The Revised Draft Bill

towances TAKINK

THE Ordinance imposing direct taxatlon has been so thorough- ly rovised in the light of carller criticism, that, having accepted the Inevitability of f this type of taxation,

has to

to be admitted that it is a renerous

equitable measure. and Many loose

chds of the drati Bil have been tidied up and certain equivocal clauses made. plain. Aureilly 'the revised Or dinaltce anticipates and counters bostile reactions to the inclusion of high-cost of living in assessed Income by substantial increases

in personal and family allowances; allowances which, in most cases, will be more

than sufficient to offact HCL. AN it stands today the Bill⋅ means that only a small percentage of

·wage", earners will have to pay taxaiton. Here

popular wishes have been largely met by setting the standard rate at 10

· per cent, with sliding upward and downward scale of imposis fundamentally intended to assist those whose salaries come within the middle levels and to obtain revenne?: from those best ablo fo contribute it. Another valuable concession is the right of the Tax-

again

flon Commissioner to admit as de- ductions, contribulicns to a scheme or fund which be regards as being equivalent to a Widows' and Or- phans' Pension Scheme, Cleared up too is the doubt about double taxation with respect to dividends pald by companies to aliare- holders. It is now provided that dividends which are subject to company profits tax shall not be Included în the profits of other persons for the purposes of laxa- clon. Government has not acci fit to bow to publio clamour for the co

complete abolition of

1 of lis direct

taxation measures, but it has. very sensibly accepted recom- mendations for revision. Much of the opposition originally voiced will

alilled in consequence of the latest proposals and many will be grateful for Government's wise concessions, T116 special com- mítico

tackle up to.

the anomalies of the first draft Bill have earned the

appreciation And approval of the publie for the forthright manner in which they have accomplished their task. What was once a bitter pili has become, to many, a pleasant tast- ing sedative.

Unless

quarter of 1947 goverment figures showed on Wednesday.

said General Marshall, they seized forcibly by Germans then, The government's goal is an export must rate of 140 percent by the end of accept the fact that further progress 1047

and

government economists on the Austrian treaty possible at this conference.

was im-

General Marshall urged that the great powers should not allow dc- cisions denying to Austria her in- dependence and freedom.

Mr Molotov said that he could not leave General Marshall's statement unanswered and would reply to it tomorrow after he had studied it.

Labour M.P.s

Feel Aggrieved

London, Apr. 23. Labour Members of Parliament bitterly attacked the Labour The Ministers fared no better in holding the bag when the Cabinet Government today for leaving therm their consideration of the report of the German deputies, which had from 10 to 12 months.

reduced the conscription period been drawn up to show the existing The showdown state of agreement and disagreement private, meeting of the Parliamen- during a on all outstanding German questions.tary Labour Party in the House of Minister, Mr. Clement Attlee, and Commons, attended by the Prime other Cabinet Ministers

General Marshall and Mr Molotov mutually acclised each other of re- sponsibility for failure to conclude a four-power disarmament treaty for

Germany,

DEVIN'S SENTIMENT.

only American refusal to

Members onths.

came

£161⁄2 MILLION DECLINE

Because of the time tag between production and actual export the full effect of the winter crisis were not shown in the Arst quarter's figures. quarter exports First

totalled £249,700,000 a decling.of £16,500,- 000 from the 1947 Inst quarter total. In the same period the value of retained imports was E243,000,000 of £10,000,000 less than In the last quarter.

Exports in March alone totalled £82,000,000 or £8,000,000 less than In January.

113 Killed In 18 Months-

London, Apr. 23. Viscount Hall, first Lord of the Admiralty, reported that 113 Britons had been killed and 249 wounded by Jewish underground forces in Palestine since August 1, 1945.

The toll did not include casualties from yesterday's train explosion, which kill- ed ten and injured 39.

Lord Hall said four un. derground_members... had: been executed, two had committed suicide in pri- son, 33 killed and 39 wounded in the same period.-United Press.

Successful Blood Transfusion

Newark, Now Jersey, Apr. 23. Omcials of Columbus Hospital are confident they will be able to re- loase Robert Jeffers, Jr., the Arst New Jersey baby to have all the blood drained from his body and replaced by transfused blood.

A blood complication known as The Board of Trade estimated ex- the Rh factor, incompatibility of the ports during the month were fû percent of the 1933 cited Press.

Agure-Asso-blood streams of dis parents, was discovered when the baby was born one month ago. He was first given and later a

STOP PRESS

DEATH OF MR J. T. BAGRAM

+

ofter release

from

a quart transfusion

booster transfusion

| pint.-United Press.

of a quarter-

Tel: 27880

Price 20 Cents

"Ducks" To The Rescue

BRITISH FLOOD RELIEF FUND

Donations Rocòlved

Already acknowledged

(per "HK. Telegraph")$150.010.45 Hongkong Mantra School

for Lay Buddhists

Pam and Joe

Chan Mak

50.00

25.00

Heung

50.00

Anon.

2,000.00

| Staff: St. Paul's College

434.00

Mrs F. Worg and Family

(Memory of "Dickle)

23.00

Island Paint Co.

200,00

Jack M.Eng

100.00

|A. T. (memory Mrs Clora

'10.00

Lau Tak Po.

100.00

50.00

200.00

Dietrich)

T. H. H

Neronhu & Co, Ltd Mrs F. M. Deacon (me- Stuart Deacon

mory

who died in internment

24-4-42)

A. M. da Silva 'R. M. da Silva

Mr and Mrs I. P. Tam-

warth

Staff; Lai Chi Kok Gov-

ernment Hospital as a mark of esteem, to Dr P. S. Selwyn-Clarke.. King Tai Guam Sons & Co. E. D. Sassoon Banking

Co Ltd:

H.R.C.

Staff: E. D. Sassoon Bank-

ing Co., Lid.

50,00

•10,00

10,00

50,00

200.00 200.00

1,000.00

100.00

100.00

M. School

(und

Mrs J. M. D'Almada Remedios European Nursing Staff,

Kowloon Hospital

Staff and Pupils Wontsal

P. Mr

175,00

230.00

200.00

$158,201.45

£30-0-0 and

Donations should be addressed to the General Manager, South China Morning Post,, Morning Post Building, Hongkong. Cheques should be made out to "British Flood Relief Fund,” For the purpose of acknow- ledgment will donors kindly Indicate their names in Block Letters.

Actress's Duel Challenge

Paris, Apr. 23.,' ¡of her acting in "Roman Policier”— Lise Merville, a well known detective story in which she is French actress, has challenged currently playing at the Theatre de a dramatic critic who called her

1Humeur. a "skeleton" to a duel with pistols.

Mr J. T. Bagram, an old resident and a leading stockbroker, died in The Evening News sald a Govern- His room at the Hongkong Hotel at

"is that of a former music hall star

"The principal role," Dornes wrote, whip led ment

the attack on o'clock, this morning following emment for reducing the con- stroke.

colebrated, adored, spolled and period without warning, after asking Labour

Roger Dornes, who is believed to beautiful. We see, arriving on the Ho was 60 years old. He return to in the uncomfortable position of of charity I shall not name, whose MPs to tell |

scene, a dressed skeleton whom out. After Mr Molotov had said that their constituents that it would be ed to Tlongkong in December last being the first man in the long and

lo train

conscripts in year following recuperative leave colourful history of French duclling puppet, whose attitude is that of a. gestures are those of a disjointed! consider Impossible. the Soviet amendments 10 the less than 18

internment al be challenged by a woman, was broken automaton and whose voice American draft for

their criticism Stanley Camp, and appeared to be pointedly avoiding newsmen who a four-power trenty had blocked progress,

principally at the Defence Minister, in normal health..

(bad for a woman.

the role of called to a whether he planned to a singer) is off Ernest Bevin (Britain) Intervened Mr V. Alexander, who had been

Staunchly denying. her challenge. as a publicity stunt, the actress in high dudgeon declared that the would certainly send --- Monsieur Dorner to the skeletons if he would

need have no scruples about fight consent to shoot it out with her. Two seconds sent by Madame Mer-

"I am an expert with the pistol and

a woman with the pisto field of honour" were reported to ing have been courteously received, and "think it over

Dornes had promised that he would The Merville-Dornes af

Madame Merville, who is a pretty in us many months. Only one of them

affair fourth duel challenge tered in Patis was the

and takes pride in her so far has been fought and it resulted brunette "slender figure, took particular in nothing more than a pair of bad exception to being referred to as a colda skeleton, but neither was she pleased missed each other during the fight in when the two combattants with Monsieur Dornes description a pouring rainstorm United Press.

with an appeal to reach an agree- adamant against any reduction Mr Bagram was a nephew of the accept the challenge.

the East and West. I hope they will i ment, after a new survey, had de-at one time "Honorary Consul for Journalists and that he considered

not be thwarted," lie suid.

ment of this question, when any during the conscription debate on late Sir Paul Chater, and had been

The office of the weekly Spectator one tries to a bridge between months

member of the Hongkong Stock which published the crillelem and he Mr. Allee replied, that Govern- Exchange for many years. He was

did

not wish to receive his fellow

cided that a shorter period could be Slam, At Mr Bevin's suggestion the instituted without affecting the needs acted us honorary secretary of the vile to demand "repiration on the he

For a long time he also the whole affair. as ridiculous. Austrian deputies will meet to-of armed service.

tho

Hongkong Horticultural Society, and morrow morning in an attempt to He appealed for 100 per cent Party since his return to Hongkong had whittle down disagreement minor points which

on support when the 12-month amend been making efforts to revive the are still out-ment comes the House, pro-Association's activities. He is sur

before standing in the Austrian

treaty.bably next week. Seventy-two La-vived by his wife, who le at pre- They will deliberately not consider bourites voted against Government cent in the Colony?" major questions, including frontlers, on the second reading, of the bill reparations, German assets:

The funeral in Jon April. 1.`-At that time the bul

will probably take Austria and United Nations property specified that conscripts should serve place tomorrow. in Austria,

18 months-United Press.

said.