465

to transfer an officer from this service to any other, but

also the Colony is committed to the payment of pensions

and pay while on leave at a higher rate than formerly on the

ground that the cost of living in Hong Kong has increased.

This egregious non-sequitur and its consequences might be

remedied by the adoption for the purpose of pensions and

leave-pay (and for the purpose of Widows & Orphans con-

-tributions?) of a scale of salaries parallel to but lower

than that which an officer draws while in the Colony.

6. While I hold strongly that much of the agitation in

regard to the salaries of Government servants is an ill-in-

-formed newspaper 'stunt'

stunt', or based on misleading and incom-

-plete statements supplied by the newspapers; and while it

remains a fact that Hong Kong is much more lightly taxed for

Government salaries than is England, there is possible

justification for dissatisfaction with the incidence of

taxation as distinct from its mere amount. The following

suggestions are therefore put forward to remedy this

defect.

(a)

Some of our revenue might well be collected in

sterling or in some other staple unit; with regard

to the new Entertainment Tax this is roughly what

will be done, since cinema films, for instance, will

not decline in cost with the dollar, and admission

charges, and consequently the tax leviable, will

also increase, though in a smaller proportion.

It is not necessary to elaborate the application of

this principle to such charges as harbour buoy

rent or permits for Sunday working of cargo.

But there are also many charges for special

services, such as court fees and birth and death

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