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provision for a gradual reduction in the revenues which they now derive from the sale of opium.
40.
If the Cabinet, as I suggest in the circum- stances they ought, rejects the Home Office proposal, I intend to take up seriously with the Malayan Cover- ments this question of the gradual replacement of the opium revenues. The matter will of course have to be enquired into very carefully by experts, but the sort of provision I have in mind is the gradual building up of a fund the income from which in addition to such
alternative sources of revenue as can be devised will | as the revenue from opium decreases be available to meet the expenses of the preventive services which may be expected to increase pari passu with the suppression of the use of opium, as well as for the maintenance of valuable social services which, but for the existence of opium revenue in the past, could never have been undertaken on anything like the extensive scale which they have been.
41.
Some such provision, I think, the Malayan Governments should make, and while the High Commis- #ioner assures us that they would bitterly resent doing so merely for the sake of making political capital, I have no doubt that they will undertake the task
Unfortunately willingly for the good of their country.
there is no considerable source of revenue which can be raised to replace opium revenue except en income
tax which as opium revenue diminishes to disappearing
point must be on a very high scale and must be a great handicap on the trade and development of a young
country.
42. As I have already indicated, Hong Kong is
in a very different position financially and would
have
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