1950-07-26 — Page 1

Around The Corner From Anywhere

W

Coca-Cola

VOL. V NO. 17

For the Minnuteter of BOSCHKO TELEGRAPH Fức and on teibats af

SOUTH CHINA KORING POST, LTD.

The

Today's Weather: Moderate southerly winds, susty and varf- ablo in showers. Cloudy with periods of rain and scensional heavy shoWWCTS.

Noon Observations: Barometrio pressure, 0$3,0 mbe.. 20.38 in. Temperature, 81.1 der. F. Dew point, 75 deg. F. Relative humidity, 84% Wind direction, NE. Wind force,

knols.

Low water: 9 In a‡ 3.10 p.m.

High water: 4 prill 10.33°p.n.

Hongkong Telegraph

WEDNESDAY, JULY 26, 1950.

TRUMAN CALLS FOR PROMPT Rest After KOREAN

AND STIFF RISES IN INCOME TAXES

To Meet Korea War Costs

Washington, July 25.

President Truman asked Congress today for a prompt $5,000,000,000 increase in taxes, to be collected partly from individuals and partly from business.

In a letter to Senator Walter George, Chair- man of the Senate Finance Committee, Mr Truman proposed that a tax bill already passed by the House be used as a peg for immediate action. That bill is now before the Senate Finance Committee.

Mr Truman proposed that; Federal budget is already out Congress increase tax, collec- of balance." he wrote. tion substantially for the tax- able year".

apply

This makes It imperative

e urrested that Increases that we increare tax revenues Krowing deßcit Inpromptly Jest in 1958 corporation

new inflationary forces come and that the withholding Chate

defence Tax Individual carnings be detrimental increased for the last three fort."

months of the year.

to our

Mr Truman did not say how The President asked for the much of the new taxes would tax rise to finance in part the

come from individuals and how $10,500,000,000 increase he has from corporations, But proposed in military spending. Treasury Department

oficinis "We embark on these enlarged said that $3,000,000,000 of the expenditures at a time when

would

fall ividuals and $1,500,000,000 on corporations The

N.Z. Abolishing

Upper House

Wellington, July 25.

Increase

$500,000,000 would

On in-

rernatning come from

plugging loopholes and other

tree-Reuter,

THE EFFECT

Prezident Truman's proposals

The New Zealand House of would raise the tax of a single Representatives tonight defeated earning $2,000 a year from

$280

the present $232 by 44 votes to 34 the attempt

The highest wartime by the Opposition leader, trannually.

rate was $315. Peter Fraser, to delay a Bill to

abolish the Upper House-the "} married person with no Legislative Council

Mr Fraser

dependients earning $5,000 per fear would pay $766 annually compared to $631 at present and $975 at the wartime peak.

A murcied perton with two

$10,000 4 dependents carning

ear would be taxed $1,592 com- to $1,361 at presend and 2015 at the peak.

wanted the Bill shelved until the Government had introduced a provision for some alternative.

Nationalist (Conserva- The tive) Party Prime Minister, Mr the moving Sidney Holland, Hill's second reading, promised that a Select Committee would.

In upper income bezettel, the continue to search for a suit- able alternative but said that tax hikes would be very sleep

example, a sing the Government was determined Pr to, abolish

Common $100,000 a year wond Legis- the present tative Council,

is cony 46,798 in income buses, A which

ride and with an meme of u sidered uvelers.

The Bill with

probably

bezucllvory' sollars annually would given a sccend mading to-pay 884,274 compared in the morrow.

!present $770,000.—United Press.

Reuter.

EDITORIAL

تم

Action

Tired U.S. Army ground troops in South Korea rest after seeing action. These men are lucky to Conditions in have a good place to get a little rest. most

areas are very primitive.~(London

Express Service).

battle

Dino

At the

For

P.G.

Reservations

Price 20 Cents

REDS KEEP

HEAVY PRESSURE

Tel: 27880

UP

Eight Divisions Massed On

OnU.S. Stepping Up

American Fronts

DRAMATIC OPERATIONS

Tokyo, July 26.

Eight tank-lod North Korean Communist divisions werd amassed at the United States and South Korean lines on three fronts today.

The United States First Cavalry Division, threatened with encirclement, withdrew from Yongdong and established a new line three to five miles southeast, The United States 25th In-

Armed Forces

Washington, July 23.

A bill which would lif the ceiling on the expan

alon of United States armed forces and extend for ans year the terms of all the

nearly 300,000 men in the armed services whose in- Haiments are due to expire In the next 12 monilis, was sent to the White Hous

today for the President's signature.

by

The bill has been passed

both Houses

- Erca-Reuter.

of Con-

fantry Division was under the heaviest pressure on the central French Seek

front to the northeast of the First Cavalry.

In the southwest where the Communists

thrust to the extreme tip of the peninsula, the NEW EAST

United States and British navies opened an aerial

offensive in a dramatic operation that possibly GERMAN

portended bigger developments.

On the east coast, in the only Allied advance,

General Douglas MacArthur's United Nations POLITBURO troops threw the Communists back one mile north of Kanggu to a point two and a half miles south of the port of Yongdok.

Berlin, July 25. The 52 members of the Cen- tral Committee of the Enst

More U.S. Troops In Europe

Paris, July 25. France will press

for more American troops to be stationed in Europe at the London meet- ing of the North Atlantic Coun

German Socialist Unity Party cil Deputies, was learned in

Gen. MacArthur snid that than six divisions on a line! (SED), who were elected yester-sually well-informed quarters

on the 25th enemy

Koreans captured Kurye. 50 miles

west

of Pusan.

day at the close of the five-day party Congress, themselves to First Cavalry and running west to cast.

Another division

Authoritative quarters hero equipped day elected Dr Walter Ulbricht Infantry fronts the

with tanks is operating in General-Secretary of the bold the view that peace could hnd in action more southwest Korea. In this area. Socialist

Unity

only be preserved

Western Party. the enemy drove to the extreme Dr Ulbricht, the East German Europe is in a position success- tip by capturing Haenem, 20 Deputy Premier and a powertul fully to defend its frontiera miles south of the

any Russian invasion, previously member of the Politburo of the inst

pointed out, cardurad Mokpo naval base.SED, was the only candidate France, These North

not provide more than half of the 45 er 50 divisions estimated to be necessary to win The "battle against invasion".

Neither Britain

the Benelux countries were con- sidered to be 112 a

position to complete the gap.

here today,

it was

conlu

15

hor

Grows Teeth In Giant Expansion In

Test Tubes

London, July 25.

A Cambridge dental kurgcon las been, growing teeth for the past 10 years, by planting seeds in test tubers.

Mrs Shirley Hughes de-

methods monstrated her

to the Bellsk Dental As- sociation conference at Birmingham. She denies thaL her teeth will from seeds in humi gums

not yet anyway.-United Press

Government And The Public

Was

-com-

recom-

jl

up

row

Engineering Planned In Britain

London, July 25.

alsominate for

the new ty PUSL

The Party hat earlier elected The Air

Force opened

Politburo, which its new night operations in support of charged with the task of winning the troops in the battle line.

West Germany for Communism through wholesale sabotage ind diversion.

KEY OBSTACLE LOST North Korean armour and

threaten

from three | Infantry

sides the last quarter of South Korea,

where resistance

Pohan-Targu- bastal un

the

The new Palilburo now co- sists of:

Dr Wilhelm Pieck (East Ger- man President and co-chairman of the SED).

Dr Olto Grotewohl (East Ger- Britain expects to spend £2,200,000,000 on Pusan defence triangle.

The fall of Yungdung cleared man Premier and co-chairman

path of the SED). a key obstacle from the capital investment in her industries on new build-

Communist forces Dr Walter Ulricht (Depuly ings, plants, ships, oil refineries, power stations of powerful

down the

Premier), road and railway line and new machinery for the engineering industry.heading southwards

Herr Franz Daniem Heinrich Southern pro-Rau (Minister of Planning), The Government's Economic Information Unit towards Tacgu, vishinal capital.

Herr Wilhelm Kalster (Minis- disclosed this today in a summary of progress Al Yongdong, one of the ter of State Security)

Herr Hermann Matern (head made so far and plans for the future.

ot

20

Commission).

Dr Fred Celmer and Berr Friedrich Ebert (East German Mayor)Reuter.

grimest battles of the Korean war, so far, ended with a desof the Parly Central Control manufactures; perate rearguard action to pro- Dollar saving was a recurring and in-plate

tutor body sheet manufacture;lect the withdrawal of the main [theme of the repor

manufacture

office body of American forces to Be A sum of £450,000,000, or 20 the

type-sitions further south, astrile of

wasmachinery, particularly percent

total,

rallway Une to writers and accounting: machines, the road and keing devoted. to the manu-

Tecgi. facturing industry. Including ele-Reuter.

and anva sleel. Engineering goods provided nearly half of all visible

Britain, exports from the survey said.

the

Only about a quarter of the country's total investiment was Lin housing and the social ser- vices, compared with more than ja third before the war,

dollar saving oil Five large refineries, started during the last two years, have made consider- able progres, the report cald, and work on two more.is to

art later this year,

Gales Stop Mercy Trip To Lonely Isle

Melbourne, July 25.

It was, therefore, felt that in present circumstances

Europe would only be effectively pro- tected if a greater number of Anerleon divisions took their place beside the French, Bri

ish, Dutch and Belgian divisions that can be made available—

Hatter.

Different

Story

In Month's Time

are

Washington, July 25.

American soldiers, attacked Five a.m. Incident the Defence Secretary, Mr

North

In

Kowloon

from three sides, fought tena- clously under withering Korean fire to open an escape roule. The First Cavalry Div was walking in Hillwood Head

two

More than 5,000 warplanes to be added to the bir strength of the United States,

Louis Johnson, announced to- day.

"He said that the expansion would be trade under the $10,-

486,070,000 military Divi- A young Chinese named Shu

in containing slon succeeded

North Korean

Truman groups just after five o'clock this mom President

ho heard a woman from Congress. which, in a pincer movement, ing when

Mr Johnson made tried to block the road south-yell from No. 20. He saw the

G.I'e man woman, a young Chinese, climb nouncement after wards and trap the

aut on to a windowstill on the force.

second floor and jump into the road.

BAPTISM OF FIRE

It was almost a baptism of

Shu telephoned the Police.

fund that

has asked

the an- conferring with President Truman and the Secretary of the Army, Mr Francis Matthews,

Asked about the Korea altus-

fire for the First Cavalry Divi-When they arrived they found tion, Mr Johnson said, "Our slon which went to the front- the woman unconscious. She was boys have

A second attempt by ship lins only four days ago to rellave taken to Kowloon Hospital job over there.

doclors

to

sment,

done a marvellous We will have n reported that she different story a month from

Baltic

To

kept accurately informed of what is going OSE who pure a little thought for E public affairs in Hongkong. with on and the reasons guiding policy. Tymg

the issue particular reference to social welfare re-

with the promise of and the dearth of civic quirements,

constitutional reform, same day, a gesture amenities, will warmly endorse the views moving towards closing the gaps between

Government. expressed by a leading resident in our

Unofficials the

and the correspondence column urging

public a closer

which

technically they ЛЕС liaison between

government and

supposed to represent would be a welcome As we said on Saturday, Sir munity.

preliminary to the 'day when an Unofficial Hilton Poynton's solitary constructive majority in Council has been coun

tenanced. Making no attempt to decry Huggestion during his interview with the Reform Club deputation seeking his back- the public spirit actuating Linofficials, Ing fur the memorandum offering re- who have, indeed, done magnificent work, medies of social, cultural and economic

remains a fact that many

crilics

In 1947, 2,300,000 tons of oil

reach Dr Serge deficiencies abounding,

regard "title" to representation on the

were refined in Britain: the Utlevikoff,

who suffering the exhausted 24th Division, where they

Is mendation to referm enthusiasts to get Counell to be associated with a “closed erimate for 1953 is 20,000,000 from

inujor engage-"]was badly" injured. lonely war their first appendicitis on into touch with Unofficial Members of the shop." It is perfectly true that time and

Heard Island in the Antarctic,

retreating from Legislative Council. Interchange of ideas again subjects interesting to

CL began Another the cont

new industry de-has failed,

Yongdong when tanks suddenly never does harm; more often than not it munity, and perhaps puzzling,

veloped since the war was the are not

in the town, and manufacturing of clocks and Strong gaies and high teas appeared produces highly benefleial results; put debated because all explanations have

Communist infantry watches. Before the war the forced the Brilish freighter, hordes of

the American them at their minimum yalue, consulta- heen given to Unofficials for their private vitch-making

10 overwhelmed Industry was Perthshire (10,500 (ons). tions achieve a better understanding of information, and those perhaps more almost non-existent,

nbanden, her attempt to reach frontline in familiar pattern. Among

from the battle area. Reports other dollar-saving the sick inan, other viewpoints even when they remain

directly concerned are kept in ignorance.

the only doctor Industries, of which large-scale with a small Australian

wave after wave of An- said that in conflict. Sound reasoning, tuo, sup- There is no doubt at all that finis secre

North Korean infantry in hun- expansion WAS planned, thetoretic expedition. ports the assumption that much of value

tive attitude, which we do not believe in

dreds rolled forward, undaunted report said, were fren and steel

Stutts pumping can be extracted from apparently Iden- wilful in the proper sense, can be mis.

into them

open stle Castles In The Air projects when chievous, and certainly creative of they are sympathetically studied by hard-

accumulating frustration in the minds of headed practical men of experience in Individuals who start off vallantly, kcen local affairs. Quite obviously, 100, any to play their part in improving social scheme sufficiently solid in principle to conditions In the Colony, and nre win the support of the Unofficialy would

thwarted, not because of an absence of a compel government to give it serious

commonsense approach UT Inck of consideration. In the Reform Club's experience, but because they perhaps programme was to be found much deser-

have yet to aspire to the ranks of the ving study, notably on the social welfare

Chosen Few. That may be an enthely wide, and the possibility of adaptation or false judgment, but unfortunately It is a outright approval might easily arise from view widely held, a direct consequence of further exploration, with new minds con- official methods in administration. AE tributing their quota. Much more lm-

it is not a particularly good prelude to portant, however, than the special effort

the cultivation of A civic-minded made by the Reform Club to show the

electorate for future reference. Liaison government the way, is the insistence of

between the Unoficials and the Reform "Tory Democio!” on permanent ilaison Clab could make an excellent start to a machinery, ensuring that the public is new order.

STOP PRESS

Spitfire Crash

In Harbour

over

now,"-Reuter.

Demarche

Soviet

Moscow, July 25.

The Swedish Ambassador, M. Rudolf Sohlman,

and the Danish Charge d'Affaires, M. Hans Müller,

Reporting "foul weather" and by American

"critical fuel situation," the shells Perthshire's captain radioed sights,

hat he had been forced

General to

MacArthur's corn- abandon the mission.

munique, Issued

July

26) sald The head of the Antarctic withdrawals of United States Division of the Department of forces on the road backward mile territorial limit in the Baltic Sea. External Affairs sald that be from Yongdong

TACKI would try to divert another might be necessary,

at midnight yesterday evening made a joint demarche to the that further Soviet Government on the latter's claims to a 12-

of

The envoys were received by I The note informed the Soviet ship. The Inst report on the Communist pressure continued M. Valerion Zorin, one of the Government that Denmark condition of Dr Udovikoff, who junubated despite heavy ground Soviet Deputy Foreign Minis- could not recognise the legality was ready to operate on himself losses and amashing United ters.

of priceful Danish fishing A Royal Air Force Spitfire fald did not arrive in time, Nations air attacks on lines An official Danish announce vessels being stopped and de- fighter crashed into the sea in sald yesterday that his condition communications.

ment in Copenhagen on the tained on the open sea. the Lyemun Pass area about was unchanged."

SPECTACULAR DUEL Joint protest said that the 10.30a.m. today while on a

If the Perthshire's doctor had An American reconnaissance Soviet Government's

She hoped that such -attention

deten- routine patrol flight,

operated upon Dr Udoviko, pilot last night reported that was drawn to the recent daten- tions would not occur again. The plane has not been found the bill would have been in the spectacular artillery duel was ba- tion of

fishing vessels in the vessels and some Sewish ships At least 16 Danish Ashing despite a wide search

region of £10,000 (Australian), Ing fought five miles north of Baltic. RAF and the Royal Navy.

for the running costs of the Yongdong between a regiment "Denmark hoo never rearo reported to have been de- Perthshire are in the region of of the First Cavalry Division cognized any right of any of tained by the Soviet authorities £1,000 (Australian) a day, and and North Koreans,

theso States with Baltic coast- in the Baltic this year. Intense machine-gun the washes to claim a sea territory of been off her

These detentions were stated No. typhoon signal was she would have holsted at 12.16 p.m. today.

(course from 10 to 12 days also turning the battlefield into 12 miles,' the announcement to enforce the Soviet chim to

Reuter.

(Contd. on Page 5 Col. 5) added.

a 12-mile limit, Reuter. B

by"

A TYPHOON

1

tho

I