Customers (5.

Copy

CCIFIDENTIAL.

Sir,

GOVERNMENT HOUSE,

3

460

HONG KONG

27th December, 1928.

In continuation of my despatch, confidential, (2)

(a

of 9th November, I have the honour to inform you that on

27th November I granted an interview to representatives of

the British-American Tobacco Company (China) Limited,

consisting of Mr. Archibala Rose, C.I.E., ( Director),

M. Robert Bailey (a Director and Manager in Shanghui) and

Mr. F.A. Perry (Manager in Hong Kong). They came to

press on my notice the advantages of the scheme set out in

the memorandum of 18th September, 1928, enclosed in your

despatch of 26th September, 1928, and they endeavoured to

persuado me that an ad valorem method of taxation was far

more suitable for the tobacco trade than a rated duty.

suggested to them that the British system had stood the

test of time and was likely to be suitable for the trade

in Hong Kong, but they did not seem disposed to accept this

argument. The matter has been further considered by me

in consultation with my advisers, and I have come to the

conclusion that no sufficient ground has been put forward

for departing from the proposals for the taxation of

THE RIGHT HONOURABLE

LIEUTENANT COLONEL L.C.).S. AMERY, M.P.,

&c.,

&C.,

&c.

tobacco,

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