129

should be redrafted in principle to

solely

deal mainly with future services.

9.

Article 10.

His Lordship is

prepared, though with some reluctance,

to accept in principle the amendment

proposed by you, since the possibility

of the increase as well as reduction

of present rates seems to be contemplated

in Article 3.

10. Article 11. It is one of the principles

of taxation in Hong Kong that all public

utility services in private hands are

subjected to the payment of royalties.

For instance, royalties are imposed upon

the local Telephone, Tramway, and other

public utility companies. In these

circumstances it will clearly be the

desire of the Government to impose

royalties upon the services mentioned

in this Article, and in His Lordship's

view the words should stand part of the

A

Article

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