against the acceptance of the principle that no State is to draw any net revenue from the control, the Colony enforcement of the principle, especially at the suggestion of Foreign Governments, should only be carried out in opposition to public opinion with great caution.
In Malaya, dangerous results and strain of loyalty would be involved. Such enforcement would risk the loss of British prestige. It would also, especially in view of the uncertainty of revenue from rubber and tin, lead to financial troubles of incalculable extent. The incidence of any inconsiderate tax would be resented and a high income tax would arouse the fiercest feeling among all races against the British Government.
The people of the country would say that in order to deprive them of a source for general purposes of revenue which they consider natural and legitimate, they are to be burdened with new and unnecessary taxation. They would contend that revenue from opium differs little, if at all, from revenue from alcohol and they would ask whether any nation is justified in objecting to another nation deriving revenue from alcohol.
(11) British delegates' assertion(s). This, in the opinion of my advisers and myself, will not bear investigation. It would mean that the Government of Malaya would be endeavouring, with an income tax steadily increasing towards a danger point, to carry on necessary services whilst an increasing portion of their revenue was being diverted to a fund which is unnecessary and even dangerous as building up services which, when opium traffic declines, will be eventually left in the air with no money to pay for them.
I am not prepared to adopt the suggestion in principle. I do not believe that it would be practicable.
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against the ropeptance of the principle that no State in to draw say neté revenue from the control. the Colony enforament of the principla aspecially
at the suggestion of Foreign Jovernmente sould only be onrrind in opperition to public opinion with
In Malay Ökngerous resulte and strein of loyalty. Senter ita enfureument would neek the lobe of Britisk
involve
The
prestige. It woulu sisa, especially in view of uncertainty of revenue from rubber and tin, financial troubles of incalculable extent. incidence of any incons tax would be resented and a high income tax would arousg the fiercest feeling naanget all racen against the British Government. The people of country would say thist in order to deprive them of unn for general purpose of revenue which they consider natural and legitimate they are to be burdened with new and unreGessary taxation. they would contend that revenue from Épim differs little, if at all, from revenue from alcohol and they would ask whether any nation is justified in objeating to another nation deriving revenue from alcohol. (11) British delogaten auççertion(s). This in the opinion of vỹ advisers und myself will net bear investigation. It would mean that the GaTEIN- ment of Kalaya would be endeavouring with an inoeme tax stendily increasing tevards a danger point te carry en negastary servies whilst an increasing portim at their revenue was being diverted to a fund which is unnecessary and even dangerous as building up
services which an bpiwa Éraffic declines will be ovan.
tually left in the air with no money to pay for them.
I am not prepared to adopt the suggestion
in principle. I do not božieve that it would be
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practicable
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