The first reports state that the British in the Ypres region have taken the system of front trenches and are still advancing. Their artillery is moving up with extraordinary rapidity, and the tanks were observed well forward. La Bassee Ville has been captured, and all counter-attacks were repulsed and the position consolidated.
The French crossed the Yser Canal, capturing the first and second lines of trenches, and their advance continues. Many prisoners and much booty have been taken. The Allies are now moving eastward into higher ground beyond the Yser. The artillery preparation and barrage were unprecedented.
The enemy's first lines were obliterated. In the Yser area the Allies met with slight resistance, but heavy fighting developed as they penetrated eastward, where the Germans resisted stubbornly, especially from concrete ''pill-boxes'', as the machine gun turrets are called. The enemy barrage was feeble and erratic.
The British airmen swooped under the clouds, which hung scarcely 500ft high, and machine-gunned the startled Teutons. The airmen did great service, and reported progress which the artillery observers were unable to see.
The Germans expected an attack, but Prince Rupprecht was not prepared for the unparalleled blow which sent him reeling from Belgium's death valley.
4 million surplus
Our Wellington correspondent states that Sir Joseph Ward read his Budget last night to a very attentive House, which applauded occasionally, and appeared rather startled at times. A big surplus had been anticipated, but members had not expected that the amount would exceed 4 million.
The announcement of the amount of the loan to be raised locally surprised the House, which showed approval of the Treasurer's plain hint that wealthy people who neglected to contribute would be forced to do so by means of special taxation. The galleries were full.
At the close of the Minister's speech Mr Pearce asked if the beer duty was going to produce the amount of revenue estimated. Mr Lee said the beer duty imposed in the 1916 Budget had not produced the revenue that the House had been led to expect.
He hoped the House was not going to be misled again. On two occasions the Government had failed to tax beer to the extent the House had been led to expect. Members and the people of New Zealand felt that beer could stand substantial taxation, and they would be very disappointed if the tax failed again.
Sir Joseph Ward said he hoped the hon. gentleman did not mean to convey that he had misled the House. Mr Lee said he had stated that they did not get as much revenue as was anticipated. Sir Joseph Ward said he had not misled the House directly or indirectly. There could be no mistake about the estimate this year.
The duty was being increased by one-fourth, and the extra taxation on beer should amount to 40,000. He had no objection to the reduction of the strength of beer to the lowest point. If the reduction affected the revenue it would be the proper thing to consider the position again.
- ODT, 2.8.1917.
- COPIES OF PICTURE AVAILABLE FROM ODT FRONT OFFICE, LOWER STUART ST, OR WWW.OTAGOIMAGES.CO.NZ
