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perfumed spirit. The Governor assures us

that the proposed additional taxation is

"not unreasonable or oppressive".

In view of our past attitude, it

is difficult to see how we could disallow the

Governor's proposals, which have, in effect,

been submitted in response to our appeals.

At the same time one cannot but hesitate, in

these days of desperate financial stringency

1

to approve increased expenditure of $1,250,000.

Suppose, for example, (though I believe it is

not at all probable) that Hong Kong finds

itself in financial straits in a few years

time and had to apply to the Treasury, as many

other Colonies have done, for a grant-in-aid.

In that event, we should, I fear, incur severe

criticism from the Treasury for sanctioning

such expenditure as is now proposed, at a time

like the present.

On the whole, however, it hardly

seems that we have any option but to approve

the Governor's proposals.

? So proceed.

ges 8/9/31

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