1950-04-19 — Page 1

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The

Today's Weather: Moderate Easterty winds,' cloudy with cocasional rain.

Noon Observations: Barometrio pressure, 1012,8 mb#., F 29.01 in Temperature, 71,9 dex. F. Dew point, 69 deg. Relative humidity, 94%. Wind direction, NE. Wind force, 12. knots,

Low water: 1 ft. 5 in at 6,04 p.m. Eigħ water; û 16. 8 En æð. 1300 3.30. (Thumday). ·

Hongkong Telegraph

WEDNESDAY, APRIL 19, 1950.

Uncompromising Reply Pig Fire In

To Soviet Charges

U.S. MAKES DEMAND

FOR INDEMNITY

Washington, Apr. 18.-The United States to day charged that Russia had shot down the missing American Navy aircraft over the open

sca.

In a reply to the Russian note on the incident, the United States demanded that Russia institute a prompt and thorough investigation.

The United States further demanded that strict instructions should be issued to the Soviet Air Force that there he no repetition "under what- ever prelext" of similar incidents.

WORSENED

RELATIONS

PREDICTED

Washington, Apr. 18. — A vere and continuing deteriora- tion of American-Soviet relu-

The United Sinter reply was made in a note delivered in Moscow today in reply to the Russian charges that an Amer!- free on Soviet can bomber Bghter planes over Latvia on April &

The Amerlean note said that the missing Privateer was the

nly American

was in the air on April Bana

alloped neident

took place.

aircraft which

In the Baltic 8, when

the over Latvin

The note said that no trace of

tions is retarded an inevitable the Privateer's crew of 10 hot

following

since been found.

States the United note to Russia concerning the

The sternly-worded note, re- Jeeling. the Russian protest, sakl

loss of an American plane over that the investigation conducted. Ly the United States Govern-

the Baltic,

The Life Raft At Copenhagen

the

the

#.

Copenhagen, Apr. 18- The rubber aircraft life picked up la raft Ballic on Sunday by the British steamer Beechland

but "may possibly. positively, have come from the American Privateer aircraft which has been missing singe

April American Captain Jnek Kingler, who commanded Le Balile arch opera- flown for

Privateer, the told Bruter,

The raft, brought here today by air from Stack- holm. He being forwarded at once to the American Air Force Headquarters at Wiesbaden.-Reuter.

Soviet

Plans For

East Germany

Washington, Apr. 18.—A

Russia is expected to rejectment had convinced it that the State Department official to- United Navy plane complied strictly day predicted that Russia! uncompromisingly the

with instructions not to dy over would sign a separate peace Stales Government's account of

foreign territory. It did not

Eastern Ger- the incident and the Americon

fly over any Soviet or Soviet-treaty with demands.

or adjacent many within the next few Eccupied territory Oficials would not speculate territorial waters, the note de- months. about what action the Unitedclared. States might take if the de- Jnands were rejected,

Observers here were at a tosa

to explain why Soviet fighters hould have gone out into the Hallic to thoot down in unurn- ed American plane,

One theory plane WIR

was that carrying

Ambasador

mnes

of the a

value.

the

London

AUTUMN

City traffic came to a complete halt in the shadow of St. Paul's the other day when fire broke onj on the sixth floor of

Bistern. two

Pleture a Ludrate II building and trapped shows a general view of the scene. (London Express Service.)

Sordid Tale Behind Attempt To Destroy Airliner

Los Angeles, Apr. 18. A pretty airline stewardess said today that John Grant had told her he expected to be free to marry her a few hours before he planted an incendiary time-bomb on an airliner carrying his wife and children.

However, the 31-year-old aircraft engineer

Dino

At tha

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P.G.

Reservations

Price 20 Cents

Tel: 27880

ELECTION NOW WIDELY PREDICTED The Cripps Budget Causes Sharp Disappointment!

London, Apr. 18.-The Budget speech made by Sir Staf- ford Cripps, Chancellor of the Exchequer, in Parliament today was aimed at convincing the nation that to avoid the great evils of inflation and unemployment austerity must continue and the general freeze on wages, prices and profits be maintained.

Fateful Days Warning

U.S. Army Chief's

Analysis

But the immediate Parliamentary reaction to his speech and proposals was one of disappoint- ment. Many politicians declared that it was un- likely to win extra friends or votes for the Govern- ment in the autumn General Election which is now widely predicted.

Three union leaders were doubtful about the effect the Budget would have on their followers--- whose loyalty to the official wage freeze they have been striving desperately to hold.

{ }

Experienced industrial] (4) Closing ຄຽ an income observers tonight suggested tax loophole in the higher in- come groups, he announced that Washington. Apr. 18. that the Chancellor's tax

tax free payments by firms to General Omar Bradley, the concessions would not be their high executives would be United sufficient to stop the rising subject to surtax retrospectiva Chairman of the States Joint Chiefs of Staff, demands for wage increasen. to last year

(5) The beer duty would "the Undaunted by the Govern remain the same but the gravity warned tonight that real danger of our times"ment's precarious hold on power of beer would be increased by the Chancellor of the Ex-

three degrees, making it about might come if Russia suc- chequer, Sir Stafford Cripps,

half the prewar strength. cceded in equalling the refused to bow clambrous

to demands

The Income tax of

relief an- 3,000,000 trade military strength of the dema United States and the North unionists for big cost of living nounced by the Chancellor ap- reductions or to won the middle plies to the first £60 of taxable income at present tuxed at three Atlantic Pact powers. jelang by slashing taxes.

Anierica's top military lender A Government defeat on any shillings in the Pound and the caid on a radio programme that of the budget's proposals would following £200 now taxed at

Le chillings in the Pound. attack mean a general election. an enemy would daro

Sir Stafford's biggest con-

'the acy proposal to tax only if the Western Democracies were unprepared, weak and not cession to the nation's 22,250,000 payments to high executives of

TVDS an adjust- rms is a sequel to the deci "The next few years, while meat in the lower rates of in- sions of two big automobile reducing them by concerns last year to make pay- we are rebuilding the forces of cume tax,

leaving the top ments of £100,000 to their chief the Atlantic Treaty along with one-sixth--but

Intact at nine executives-Sir Stanley economies, we ordinary rale

Black rebuilding our

he shillings in the Pound.

ot the Standardi Automobile quite vulnerable." will be

The effect of this will be to Company, and Mr Leonard Lord declared.

"During this Ume, our tallation fares entity bo

But the overall effect of then the condition that they would greatest deterrent to war.

for budget is to increase the ni- our forces "Later, if collective security are built uption's taxation by £1,800,000 a and our retaliation force our year. bombs and aeroplanes are equalled by another then that may be the real dan-

Sir Stafford, budgeting for an ger at our times."

Held at the Unlied States Income of nearly £1,000,000,000 nations must do everything to changen

alert.

wage earners

To give about £11, 59. the lief to many laxpayers.

year

Power,

OTHER CHANCES

and the North Atlantic Treaty this year announced these other

of the Austin Motor Company-

never work for rival 'manufac- turers.

Mr that "I must be concludetf

Henry Cox, the Depart aircraft fret!ment's expert on East German Soviet military

the United Press Ameriem affairs, told unarmed upon an pine over the open sea, follow-that he had said as early as last the Russians air-November that the American in which plane was lost," the note added, would make such a move with- a year and that he stood by *The

It was quite United States has been in this prediction.

Russians might structed to protest in the most-possible the olema

announce the treaty this choose to artalost hightyviolation of

International Law during the May meeting of the Lecret and valuable new elect- and of the mast elementary Three Foreign Ministers in for its propaganda equipment which the rules of peaceful conduct be-Lorton,

FOOD SUBSIDIES Tullic

authorities ween,nations, military

The Chancellor Soviet

refused to wished to obtain.

"The Unite!

Reports from Germany in- States Gover!-

reduen “Britain's food subsidies that the Soviet diente that Russia not only According to this theory the ment denunds

below the level of £118,000,000. He promised that there would Suviet fighters intercepted the Goverment institute a prompt plans to annotince a peace treat told the police he had no intention of marrying

East Cerman separate investigation of and American plane over the Baltic and thorough

during the Foreign golden-haired Elizabeth Suomela, despite her story

relief where saving for old age and ordered it to fund in Suviet-this matter lu order that the state

Ministers' ineeling but also above may be

standard controlled territory.

ops that he had courted her for several years and had

be an inquiry into income tax

toets set forth

petrol or retirement was concerned. might withdraw her troops.

bulld

(1) The economie up military,

Stafford referred to grow- When the Americans refund conflemed to its catisfaction,

Departinen leials

political strength and unity ration now allowing noturists to

a nonth would ing public

of the criticism to emply, the Soviet fighters "The United States Govern- However,

But the tax would nation's housing shortage by nil- be doubled. Sment further demands that the are sceptical about troop with told her he was separated from his wife.

Grant admitted he built the noon and let me know how it and, at the same time, make all cover 90 miles

offorts that would lead to u

nine

gallon,nouncing that the Government's to up

pence bomb and placed it on a United came out."

permanent peace. Airinus plane in a plot to kill

for the She added that about a year

combination

the waiting the price three shillings building programme of

next three years would be re-. his wife and two children.

The said he had been driven crazy after they met Grant asked her North Atlantic Powers, and the a gallon,

said she principle that an

stored to 200,000 houses a year. (2) The purchase attack against by debls and was motivated by to marry him. She

A cut to 185.000 during the waited patiently for him to one would be an attack again high-priced automobiles would

ceonomy drive be reduced from 08-34 percent

Inst autumn the thought of the US$25,000 in-

would in time have surance his family drew shortly through with

percent. But a bur-

outery which was me to 3314,

roused deterrent 357 "rather persuasive"

fax of beste going aboard an airlinerdings.

335 percent exploited by the Conservatives effect, General Bradley submit-chose

commercial bound for San Diego,

be put on

at the February election, i.ted.

The

income tax relief will te:fit n large number of workers but it will not help the lowest pold in Industry-for example, the married man with

(Contd. an Page 5, Col. 3)

shut down

the United

interception, the theory - Reuter,

plan tu destroy wines to the Im strict

EDITORIAL

and entegorical (Contd. on Page 5. Col. 5)

drawals. They contend

the Soviet is not yet ready to take this step-United Press.

An Illuminating Protest

HREE weeks have elapsed since the Tudget in the form of expenditure

10

estimates received the approval of Legis- lative Council and no official disclosure has been made outlining the final decisions of Government regarding the methods to be employed in raising the additional revenue required. It is, perhaps, far too early to proclaim this as a good sign, but it is interesting in more senses than one. Public opinion expressed itself forcibly in opposition to the Financial Secretary's main proposal, an increase in the Earnings and Profits Tax, and on assurance wAS given that the original programme would be submitted to further study, giving duo consideration arguments advanced Items. For the particular against Financial Secretary, it is a heavy respon- sibility. Much that he would like to do

in terminates

disappointment, for enormous as is the Budget, surplus money His concluding speech is not general. revealed a certain amount of sympathy those who looked for the attitude of nskance at higher salarles tax and that does not render his considered decision any easier. We should, however, feel remiss if we did not say a word more ilne about

selected another revenue producer while there may still be time. The meaning of the proposal to impose a tax upon the operators of neon-signs did not Immediately sink into mlads deeply engaged as the result of concern

salaries tax. Latterly, a feeling of something equivalent to dismay hins been growing, and with it a Holld objection to a more or less petty for condemnation art tax. Grounds

That which dominates the Is the most commentators

numerous, picture for

over

08

&

in

attractiveness of the city streets, rising higher in the scale as further neon-signs appear. The astonishing beauty of the harbour front on a clear moonless night prevokes in visitors, passing through the Colony, flattering impressions of Hong- Not kong, which they take with them. that this in itself presents solid reason but it drop the taxation scheme, demands thought on the basis of growing fears that neons will be discouraged. Not altogether minor factors, also, re the min vastly improved lighting in streets, facilitating traffic, and, moreover, operating quite effectively as a prolec- tion against prowlers and thieves. Above all that, is the odd distinction made be- tween a tradesmon's signboard which is normal unlighted paintwork, and that whose only transgression is attractive Illumination. Not ten percent of the

be Colony's ncon signs сап correctly described as genuine advertise- menta, any more than fluorescent barder- lights within the window. Is it legitimate for government to penalise a merchant merely because he favours good lighting? taxable? Again, when is a neon-sign Supposing the owner, in protest against the tax, disconnects the electric current, is ho sill Huble? In short, it would be excellent were the Financial Secretary to nel with courage and admit the possibility of a serious mistake. The recent sugges- tlun that revente could more readily be obtained from a purchase tax on light bulba, imposed at source, and subsequently passed on by a slightly higher price, is sound. A change to thint course would at least be equitable. Better still, it would produce a greater return.

HIG

Mins Suomela's romance with Grant was uncovered when the police

divorce proce!!«

and

tax on

Would STRINGING ALONG

He added that the forecn in vehicles to restrict them coming Alaska noW were no! strong on the home market.

to rural (3) A slight rellef told however,

the enough and that he would like

by an WOR "stringing her to have more troops and al: tariners was

using vehicles operated

lenrued that the car he police he the nirport was registered

Grant,

Lin-

provided

had used to drive his family to along Mia Suomela was in squadrons in that area. Reu-annual grant to farmers

her der the 31-year-old stewarders, ears throughout the interview. ter.

the disclosure of After Miss by ofteers, Contacted

affair with Grant, the resigned Suomela readily admitted her

assistant

of supervisor romance with the aircraft en-s gineer, but said that during the stewardesses for American Air- three years she had known him lines,

he was separated; e clained from his wife and would be divorced.

The tearful stewardess saht, "Yesterday morning he told me he was on his way for the dual caring for the divorce. He sald he would call me in the after-

TRIESTE VOTE

Belgrade, Apr. 18-Belgrade Radio nanounced today the election results in the district

Of #

The police placed a watch of Capo d'Istria in the Yugoslav over Grant after they discover-Zone of Trieste.

total of 24,202 voters, en noose fashioned from cloth

percent voted for the In his mattress in the Venice 87,0

Front, Detective People's

1.7 percent faci. sub-station

for the Socialst Party Lieutenant J, R. Goldstone also voted

percent voted for the reported that cyanide pills were and 1.1

Socjallst Party- Grant hod Christian the car found in

Reuter. been using-United Press.

Macassar Accusations: Holland's

Pained

Astonishment

were ordered not to

Defence spokesman

sold.

The Hague, Apr. 18.The lo bring back deserters to bar. Federal troops landing on Dutch Government has told its racks, suggested that only time Celebics High Commissioner in Indonesia, would show to what extent this shoot unless fred on, a Ministry Dr Max Hirschfeld, to ask for a was due "merely to impotence," of clarifiention of an Indonesian and asserted Government statement alleging confidence in the that the Dulch have not fullled not taeir commitments towards In-fallures of this kind.

Jonesin..

that Indonesian The main body of government Dutch was troops was expected to land be- strengthened by Dutch fore the end of the week,

The strength of the invasion force was estimated at 2,000, but Small reconnaissance units of military sources sald the gov» · The statement, issued by the the Indonesian Army landed ernment was prepared to send Indonesian Ministry of Informa- today ut "several places" along 10,000 troops to East Indonesia

lon, has caused "pained as the coast of rebel-held Celebes, to crush the revolt. tonishment" in The Hague, ac•

Macassar was reported quiet, cording to an official Dutch to command operations against

the dissident East Indonesian Bithough dispatches

Colonel Kawilarang, appointed

sult some

spokesman.

Government

It alleged that for a second forces who revolted under the shooting was heard last night

by leadership of Captain Abdul cutside the town. time, with the uprising Capinin Andi Abdut Azls in Azle, arrived this evening from troops who escaped capture by

former Dutch

colonial Macassar, the Dutch had failed Medan, where he was formerly Azle

Sumatran commander. forces were reported to be al- to full their obligations under North

scize the main the round-table agreement last Colonel Kawilarang is expected tempting to

to establish headquarters at pawer and radio station situated It claimed that the Dutch Sourabaya, former Dutch naval near Macassar, — Reuter and

United Press. military commander had failed hase in Jaya,

year,

olt.

on taxable

Sir

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