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It is not anticipated that any serious opposition

would be encountered to an additional Tax percentage on the

rates even for the general Revenue of the Colony but since

there remain other taxable resources which should amply

suffice for the balancing of the Annual Budget it is

proposed to hold back the imposition of an addition to

the Assessment until such time as a further Loan is

approved and further funds are required for its service.

4. With the recent growth of the Colony and the

marked activity of building operations, it is probable

that the estimate of $350,000 as the yield for each one

per cent of the Assessed Tax will be maintained and

probably exceeded and it is proper to add that a re-

adjustment of certain inequalities in the present method

of assessment, and the substitution of an even percentage (which will adjust itself naturally to conditions) for the

existing method of rather haphazard and illogical variation

will in itself result in an increase in the return apart

general from any/addition to the percentage. This re-adjustment

has already received the general approval of my Executive

Council, and is now under consideration in detail.

5. The correspondence that has passed between the

Colonial Office and this Colony on the questions of the

Water Supply and of the Gaol will I trust have sufficiently

emphasized the urgency of these two pressing works: and

the Vehicles Ferry Scheme is already in hand under the

authority conveyed in your telegram No.47 of the 23rd of

July, 1930. The Kai Tak Aerodrome further is due for

completion

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