NAVAL BATTLE IN KATTEGAT

Press, Volume LXXVI, Issue 23002, 23 April 1940, Page 9

NAVAL BATTLE IN KATTEGAT

GUNFIRE HEARD IN SWEDEN GERMAN MINESWEEPERS SEEN AT WORK (UNITED PRESS ASSOCIATION —COPYRIGHT.) (Received April 22, 10 p.m.) LONDON, April 22. Reports from Gothenburg indicate that a naval battle occurred in the Skagerrak and Kattegat last night, when heavy gunfire was heard. Seven ships, believed to have been minesweepers, were seen earlier, apparently sweeping a lane through the British minefields, with escort aeroplanes. Later two destroyers and one big and several small merchantmen appeared from the south, steaming towards Norway. THE BUDGET IN BRITAIN SPECULATION ON TAX INCREASES (BRITISH OFFICIAL ‘WIRBt.BSB.) RUGBY, April 21. In the coming week business in the House of Commons will largely be taken up with the Budget, which the Chancellor of the Exchequer (Sir John Simon) will present on Tuesday. Perhaps, because no detailed estimates of Service expenditure have been made and so little of the financial position known, speculating on the Budget has been greatly reduced this year. It is certain, however, that Sir John Simon will have to budget for far bigger expenditure in 1940-41 than the £1,816,000,000 spent in last financial year. Financial experts, in fact, believe that expenditure may well be double last year’s figures. Meeting expenditure on such an astronomic scale, it is universally agreed, will be a task with which no previous Chancellor has been faced. It is pointed out, however, that no more than a fractional total of the expenditure can be met from immediate taxation. It is not denied that increased taxation in some directions will be necessary. In view of the fact that Sir John Simon, when he introduced the supplementary Budget in the autumn, announced not only the rate of income tax immediately to be levied, but also that for the present financial year, it is felt in the City that there was no likelihood that the already very high level of income tax will further be raised. The surtax is also considered to have reached a level hardly possible of increase. Tobacco and beer are picked upon by Budget speculators as two commodities most likely to suffer further tax increases. It is considered nearly certain that postage rates will also be raised. It will be recalled that the letter post was raised twopence during the last war. Germans Deny Nazi Story—Germans interned in Tanganyika at the outbreak of war, and now on parole, signed a letter to the Governor denying Nazi broadcast allegations that they were ill-treated and even beaten while in camp, and expressing appreciation of their treatment by the authorities. —London, April 21. United States Liner Searched— New York Treasury agents, acting on reports that members of crews of United. States ships were smuggling mail packages destined for Germany through the contraband control, searched the liner Manhattan fruitlessly.—New York, April 20.