во
1. B. A. Tobacco Couthern
Fwdon recommend no. for
taxation.
281.29
N
2. Rose (B.A.T. Co.
DESTROYED UNDER STATUTE
3.0.A.9. Auf
291.27
Suggests witerview with fief. Sundle
2712.28
Intensew with representatives of by:;
Sees
no claim to reconsider decision.
The British American Tobacco Company
have made a fresh proposition, that is, that
im
Cat
Hong Kong should pose an ad valorem none of 40% instead of the 27% they proposed previously.
This is the same rate which is to be imposed in
China.
No.3 shows that Hong Kong were not disposed
to reconsider their decision on the previous
proposal, but I think we should at least give them
the opportunity of refusing this proposal for
a 40% tax. The respective merits of ad valorem
and specific rates are matters for technical
experts but the obvious criticism of the Company's
argument is that they do not appear to have
considered the possibility of reduction in
consumption which might very probably follow the
inevitable increase of price.
It might be useful to refer again to the
Customs and Excise Department, but I do not think
we need wait for their observations before send ing
a copy of No.1 to Hong Kong.
As regards No. 2 I do not suppose
Sir Gilbert Grindle is anxious to see Mr. Rose.
If