PAGE 2-HONGKONG DAILY PRESS
SIR GEOFFRY
NORTHCOTE'S
be taken at once to draft the necessary legislation and to bring into being the necessary machinery. My home is that within six months that ma chlaery will be at work, Piaus are not far enough advanced as yet for any detalled descrip- Hon. but in order to prevent unnecessary alarm. I will say that it is not intended at the Initial stage to prescribe - very high rates of tax.
In effect Mr. MacDonald's conn sel was that subject to two pro- Continued from Page 1
visos of which I will make men- His Excellency said; It had been tion later, there should be as my intention to présent a short little disturbance, na possible with address to you on this occasion the Colony's current activities and more or less on the lines of that developmental schemes, so long as which last year endeavoured to re-revenue to finance them would be view the salient facts of the pre-forthcoming. In particular the coding twelve months and the desire was expressed that existing more important schemes under sucial services and approved plans Government's" consideration. I re-for their extension should gret very much that the rush of tinue as far as was 'possible; "Tur- Work caused by Herr Hitler's in-thermore any marked retrench- tromissions has prevented that In-ment in the Girll Service was de-
PRINCIPLES OUTLINED tention from being fulfilled," and preciated unless and until we were
Attention, has also been adven to all the more because there has advised by him so to act.
question of taxing Excess been food progress in many ad- It will be agreed, I think, that Profis There may plamly be ministrative activities and social this confident polley, which unjustification for such a measure services which is deserving of requestionably reflects that of His in due course, but I feel and I cord
Majesty's Government, is very an- know that iny Honourable friend
con-
the
ADDRESS
FRIDAY, OCTOBER 13, 1939.
SPORTING FIXTURES LO TAK KUEN
TO-DAY
Badmin-
years, and a defence budget which BADMINTON—Y.M.C.A. will be quite new and I hope a
ton, in the West Lounge, 8.30 feature of only a year or two.
AN INNOVATION
After that general explanation have to ask Honourable Members to turn their attention back to the original estimates of expendi- ture for 1940/41 which have been In their hands for 10 days,"... "As 2 memorandum explaining the prin- ciple matters of novelty contained In them was circulated at the same time I do not propose to deal-with
hide estimates at
at any great length. I fear that the innovation, for which I was responsils, of permitting the Press to see the printed estimates with the Council's Order of Business has led some of the papers in mis- interpret them and the state- ment of Government's fail pro- posals may be disappointing to conceive that these will be more The Secretary of State's two
those who read some of the rightly appreciated if I first in- provisos, which I mentioned just vite attention to the declared as being conditions to be This address is, of course,
more sensational deductions polley of His Majesty's Govern-bserved in framing the estimates. tended to do no more than outline published yesterday afternoon. ment in this regard. If one were dealt with the following points the principles in accordance with
The Press have also given due to compare the manner in which Firstly, the great importance of which this Colony's financial policy prominence to one fact shown by this war is being faced by the serving the exchange resources for the near future is being framed the print, that is that we already Government of Great Britain with of Great Britain through control and the Honourable the Financial have the forty million budget that of 1914 a fundamental differ over the purchase and export of Secretary will, this afternoon ex-which I spoke of as possibility of ence would at once be observed. foreign currencies and of those plain the Government's proposals the mare dinant futare twelve
armies, administrative de British currencies which are not in ampler measure,
months ago: Expenditure and, partments and war organizations on a sterling footing.
·
I propose, accordingly. to con-heartening at such a time as the agrees with me that we had bet- fine my remarks on this occasion present. to the anancial policy and inten- Hons of the Government and I
Then,
and requirements of all kinds had to be hastily improvised and the national Anances were left to be carried on along normal peace lines; to-day the situation at home! presents entirely the contrary picture.
out-
The Hikelihood of the break of a major war between Great Britain and Germany had long been foreseen. plans had been laid to meet the emergency and the appropriate economic
polley had been thought out and made ready.
ADDITIONAL TAXATION
It will be generally agreed. I think that the outstanding fea-
TWO PROVISOS
..
Bongkong's precedure in this respect, it was 'found; could not be quite "on all fours" with that of other British Colonies because of the pre- dominating importance of our entrepot trade, and special treatment of the problem was therefore permitted to us
account of
1 have asked the Honourable the Financial Secretary to give the Council a connected the measures taken by Govern- ment with this end in view, and I myself shall have a further word
er tackle the Income Tax problem first and, when that has been done, take up again the matter of Excess Profits Duty,
In-
I have tried to put before you rortunately, revenue as we have the twofold duty which rests upon continued to increase automati- this Legislature at this juncture.cally with the increase of popula-" On the one hand, we are respon- tion. On a peace basis an approxi- sible for the proper care, a phrasemate balance vas expected but the which includes improvement, of War is kely to increase expend!- this small but important part of ture in many directions without His Majesty's Empire and it is correspondingly increasing revenue especially incumbent upon us to from existing sources. maintain and, as far as we can extend. the Colony's social ser-" vices. particularly public health and education: you creased
NEW EXPENDITURE
The estimates as printed containi will and in-o innovations in levenue apart from the re-arrangement of the provision in the ordinary
heads in more convenient form. budget under both those heads.
On the other hand it is our duty examination by a select committee As to expenditure the procedure of of this Coune which will be followed this year as before will afford full opportunity for honour-
to say on this subject when speak- as well as in our interest to give ing of the revenue estimates. The all that we CHA to help His second point on which the Secre- Majesty's Government in the great
ture of the economic plans of Hitary of State expressed a proviso struggle in which the Empire is able members to make any com- Majesty's- Government, as was the avoidance of expenditure, engaged.
which, by creating a demand for
war purposes.
closed in the speech of the Chan-unessential goods would deffect cellor of the Exchequer on Septmen, materials and shipping from 27 when he introduced his first) war emergency budget. was his Insistence upon the importance of paying for the war from revenue) as far as that was possible.
In this connexion I ́may say that I had already given orders that work on my successor's new' house should be stopped before this wise advice was received!
So much for the
expenditure
The inevitability of having also to raise war-loans was clearly re- cognized, but the immediate step taken was the imposition of heavy additional taxation: at the same estimates in the ordinary budget. time he urged, most strongly that which will be more fully explained it was the duty of the private by the Honourable the Financial citizen and of the public institu. Secretary in his speech this after- tion to avoid all unnecessary ex-noon and in the memorandum pre-¦ penditure in order
that savings
pared by him. On the Revenue might accrue for subsequent in.alde there are considerable altera- vestiment in war loan. It is
tions to be made, but these do not! inspiring fact that the British appear in the printed volume. The most important of them are
an
The task of this Government is to find the right balance between these, two duties and 1 confidently hope that you will find yourselves able to endorse the proposals that are now about to come before you. I do not wish to be thought to make light of the burden which they will lay upon the shoulders of the taxpayers of Hongkong.
The Income Tax, even at the relatively low basic zats of two shillings in the
pound, rust inevitably give, a shock to the social and com- mercial structurės of the Colony, and considerable ad-" ". justment will be necessary th order to absorb that shock, Nevertheless I am fully confident
taxpayer has readily, not to say the increases in duties on petrol that they will no more shirk their cheerfully, accepted the unprece-
and alcoholle liquors which have a duty where their money is con-
dented burdens laid upon him.
So much for the way
嫩
which the taxpayer at home is facing his duty: what of the.
which Hes before us in duty this small unit of the British Empire?
I hope and believe that there
will be universal acceptance here
of the fundamental principle that
dual purpose, viz. to raise more cerned than they have in offering and to effectuate the their services, and if policy of conserving sterling ex- their lives, in Britain's canse,
revenue.
change the other implement cer- tain
ments which they desire and eluci
date any obscurities in the details Those details were mainly settled before the outbreak of war, but no necessity is seen at present to alter them at all consideny. -
In preparing the final draft. a number of items of new ex- penditure which it had origin=" ally been desired to include were, deleted in order to Avoid budgeting for any substantial defcit in the uncertain cir- cumstances which lie before us; but the Government have very definitely refrained from economistag at the expense either of social services or of measures of economic develop- ment.
tall those services in order to pro- that there is no intention to cur- Your Excellency has made clear
vide funds for the new calls which the war must make upon our re-
necessary sources.
I venture. Indeed, to say that,
I now commend the business large as the expenditure must ap-
recommendations f the of the meeting to your considera-pear, all of it is either essential or
Taxation Committee and I will to leave it to my Honourable friend
to state their nature..
DEFENCE BUDGET
#!
our responsibilities, in Hongkong The estimated financial outcome! towards
Great Britain are in no of what I have called the ordinary
FINANCIAL SECRETARY'S SPEECH
The Hon. Mr. Sidney Caine said:
extremely desirable in order to maintain the public services of this. Colony and to enable the Govern ment to discharge its obligations to the community Honourable memp hers will and that much of the Increase in recurrent charges s
|
way less than those of British sub-budget as small surplus. That you have indicated in their main directly due to our increased popu Jeets resident in the United King- expectation is due partly to the outline the financial intentions of Tation, eg the meresses in the dom: and that just as they are additional prepared to bear whatever burden sources just mentioned and partly which exist to-day. Orcumstances
revenue from the Government in the new conditions Police and Sanitary Departments. the successful conduct of the war to the transfer of certain appro- have unfortunately, compelled the may impose upon them, so we also priate expenses to the defence Government to put those inten-. The programme of Public Works
PUBLIC WORKS must leave nothing undone that, budget. If, however, during the tloris before Counch and the Co-Extraordinary inchides many items we can do towards that end. other words, this is every whit as estimates cover it appears that a in two stages Thire has been no essential to carry on the economic In fifteen month period which the tony which that Camell represents of a capital nature which are much our war as it is Britain's.
NOT MAXIMUM DEMAND
deficit is probable it should not time since the outbreak of war to development of the Colony. Evid- be dificult to cudair expenditure, reach finality in our proposals for ence of the intention to continue It is in accordance with that and especially capital, expenditure, wartime measures and then to re- the development of social services prince that the financial repelenty to avoid that result. posals that will be placed before I come now
print the estimates in accordances sten by the provision for the yop at this session have been bidget, by means of which one-hand, In view of the approaching College, a new Infectious Diseases to the defence with our decisions: on the other commencement of a new Queen's framed and I take this early op kong will make its contribution end of the Anancial year, it was Hospital and new Health Centres, portunity of saying that they are towards the prosecution of the war advisible to deter presentation as well as a new Volunteer Head not to be looked upon as the against Germany. That contribu- until the estimates could be recast quarters. The actual amounts ex- maximum demand that may be tien may take one of two forms, in print so made on the local taxpayer before the Arst being the meeting from those later proposals,
as in conform with pected to be spent on any of those victory crowns our arms: They our own pockets of such addition-
buildings next year are small, but are, however, all that we can wise-al local expenditure as the attua-fore, was to lay the estimates as for proceeding definitely with The only possible course, there their inclusion will give approval tion may demand for volunteer pented before the Council, to state plans for them and concluding a naval, military and air defences when doing so and other war services; the other.
that they would contract for the work free gifts in cash or in kind to phesis and lastly in Belect Com-
a considerable metamor His Majesty's Government towards mittee to recast them in their new Its alm
viz. the defeat of the form or rather forms, for there enemy. The former of these has will be two budgets for the dura- its natural limitations and not wide ones at that: but I trust that ton of the way where one used to not only every member of this
krow in peace time. House but also every citizen of this I am very sorry for any confu Colony will agree that there should sinn that this way of handling the be no limit upon the aid that we subject may have caused but in It may surprise you that what should give to His Majesty's dor-the circumstances I fear that that I will describe as the ordinary erament other than our ultimate was inevitable. But so far as the budget does not show greater re- this lightly sale giously in are concerned the of anger of duction's in expenditure. The imit file at a great distance and made are of paper rattier than taxed community that are the changes to be well advanced when war broke could not be. reache through a practiral fiâtures/it "Ti the
fence budget where most e innovations comedy
ly do at the moment.
With this object in view it is Government's intention to replace the budget which is formally before you to-day by two separate budgets: the former will provide for the normal expenditure of Gavern- ment departments, the latter is designed to full our obliga→ tions as a member of the Bri- tish Empire while engaged in
estimates, of course, were fairly
out and early in September we more awn
exiting revenue chand were in the act of considering the "extent to which they should be cut down when I. zeceived from
the Becretary of State valuable guidance.
some very
sulla
We propose, an has said to have two ordinary one) resemble the budget.
Nonetheless, we must not be wholly unprepared for financial of public works extraordinary difficulties and the programme
and also the many items of special expenditure appearing in the Individual heads of estimates, although they may be approved by this Council and the Secretary of State, will not be automatically carried gout if the revenus position does
mot justtry the expenditure.
require the indi-
All Mia Leade
dual authority of Government
SWIMMING—Finals Army Onl
dren's Schools, U.S.KC. pool, 3 p.m.; Y. M. C. A. Mixed Swim- ming, & p.m.
SATURDAY, OCTOBER 14 BADMINTON. — YMCA.
Bad-
CUP LEAGUE FIXTURES
Six Matches For Decision
SCOTTISH REGIONAL SOCCER TOURNEY
DEFERRED
LONDON, Oct 12 (Reuter)-The- Scottish Football League has de- ferred the beginning of its two- Regional Competitions, each of 16- clubs, to Oct. 21.
minten, in the West Lounge. 10 Miniature Football Federation AIRPORT NEWS
BOWLS-Second Division, Craigen
Kower v. Civil Service. CRICKET-K.C.C. Junior, Navy
Juniors, K.C.C.. 2 p.m. § FOOTBALL — First
Division
(4:30): Club v. Middlesex (Club):
Organized by the China National
Kuen Cup League programme of (Hongkong branch), the Lo Tak
orn playground on Sunday" is as matches to be played at the South-
follows:-
BIL
2.30 3.30
Hung Sze v, Tung Yee Pak. Taimshatsui v, Láng Kong. 4.30 X1 Kung y. Tung Yee Hung WAHL-KAU WIN
8.30 Tai Chung v. Hak Keung. Police v. 8. China "B" (Bonn 9,30 Luen Xing y. Tien Sins dary Road); Royal Scots r. South 10.30 Hon Ying v. Chun Wan China "A" (Sookuppco) Becond p.m. Division "A" South China, v. Club (Caroline Hill at 3), Eastern v Kit Chee (Club at 3); 8th R. & y. 5th R. A. Stanley at 3); 30th RAYRA O. C. (Stanley at 430) Second Division "B" League last Wednesday, Wah Kin Septs v. Univeralty Bogkumpo defeated Pun To by two goals to at 3); Police. Kwong Wahi nil (Boundary Road at 3)R. A
F. Y. Kowloon (Chatham Road
at 3); Signals v. Engineers
Playing in the Lo Tak Kuen
(Chatham Road at 490); Third FIRING PRACTICE
CANCELLED
Division: 3th R. A v. R. Scots (St. Joseph's at 3); Kumaons RFRA. 8. C. (Prince Edward The firing practice which was to Road at 9). TEXNIS American Tourna- hours of 8. p.m. and 12 midnight have been carried out between the ment, King's Park.
yesterday was cancelled."
Imperial Airways:
*
NORTHBOUND
Friday: Bangkok, Hanol, Hong......
kong.
Dorado pum
SOUTHBOUND
Sunday: Hanoi, Bangkok,
Dotado 7 am.
Air France:
NORTHBOUND
Wednesday:
Hongkong.
Service 5. p.m.
France, Hanoi.
SOUTHBOUND
Thursday: Hanol, France. Service-6 am.
Pan American "Airways:
>EASTBOUND Wednesday: US. A.,
Hongkong.
California Clipper-2 p.m.
4
WESTBOUND
Mantia..
Thursday: Manis, USA. California Cupper-8.30 am,
HIZ
"Here's an H.B. Now — try"
before expenditure is meured on 12 are deatvej “them and that doprovid owl be
Excellenty
for
previous
· necesɛstu" In addition"
bred sto.
additio
provid
the estims
the filling Continued on Page