3/53699/35
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153707/36 15370410, an dalamn
Telegram from the Governor of Hong Kong to the Secretary
of State for the Colonies.
Dated 3rd January, 1936. Received 11.41 a.m. 3rd January
1936.
No 1.
--000-----
Confidential.
Your telegram No 236 BUDGETARY position of the Colony which is receiving earnest attention of myself and my advisers may be described in rough figures as follows:- Estimated deficit 1935 1,000,000 budgeted deficit 1936 3,000,000 to which add in respect of sterling commitments including salaries if the dollar averages 1/3d 3,000,000 from which deduct increase of revenue from taxes levies at conventional rate of 1/8d 1,250,000 total threatened deficit therefore is 5,750,000.
Among other measures of retrenchment temporary salary levy as from 1st January seems inevitable and warning circular issued last week.
Following scheme has been based on your despatch of 16th July 1932 Circular.
Part 1 Temporary salaries No levy on salaries not exceed
-ing £240 per annun On salaries above that figure 2% on the first 240 5% on the next 360 7 on the next 400 10% on the next 400 and 12% on the remaining portion of salary above 1,400 £ per annum resultant savings at 1/3d to the dollar 310,000 Dollars (Hong Kong).
Part 2 Dollar salaries under £240 per annum exempt Above that figure 4% on the first 1,000 0% on the next 1,500 12 on the next 2,500 and 15% on the remaining portion of salary above Dollars (Hong Kong) 5,000 per annum but from 1st July these percentages should be reduced to 39% 62 10% and 12 respectively because by that time rise in cost of living consequent upon fall in exchange may be expected Rosultant savings Dollars (Hong Kong)
212,000.