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it agrees that they were too high; instructions have been given for

their reduction in future.

Paragrath 16. The question of imposing a tax on

betting is under consideration:

The possibility of increasing the

revenue from the Entertainment Tax is also being considered.

Faragraph 17. Government is prepared to consider this proposal, but any scheme must look to the future and take into

account the probable development of wharves and godowns in Kowloon. The matter is at present being considered by the Manager, Railway

and the Director of Public Works.

Paragraphs 18 - 20. Specialisation in excess of whet obtains at present is very difficult in a service so small as that

of Hong Kong. The formation of a Civil Service Association is

rather a matter for the service itself; the Government would view

the formation of such an Association sympathetically.

Paragraph 21. Whilst it is perhaps an exaggeration to

is of little use

say that "experience in other Crown Colonies

there is considerable weight in this paragraph, which should be borne in mind when a successor is selected for Mr. Creasy who proposes to retire in 1932. Mr. Carpenter also wishes to retire

in 1932.

Faragraphs 22 and 23. These are dealt with in the

Report on the Public Works Department.

Paragraphs 24-26. The Government agrees that any policy involving heavy future commitments should be put before Legislative Council and fully explained.

This is the normal

practice of the Government and is usually done on the introduction of the Annual Estimates of Expendituro. But, as the Commissionas remark, in times of plenty the tendency to extravagance is universal, and not even the Legislative Council of Hong Kong is an exception.

Paragraph 27. A Committee under the chairmanshi of

the

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