paragraph 6) of the enclosed note, that the Frade in
additional burden to Hong Kong of the payment
of Customs duties on the Chinese scale might
forms of taxation
be offset by reductions of other taxes at
present levied in the Colony. This, however, un totte
no account of
ignores the fact that the beneficiaries by
not warranty
reduction of taxes would hardly be identical
would ham to
no/pay
with the persons who/pay the import duties.
Still more important is the fact that good
many duties in the present Chinese tariff are
definitely protective in character, and the
number of such duties is likely to increase.
The burden of such duties in increasing the
cost of supplies would not be offset by
reductions of taxation in other directions.
5. It has also been suggested that
on the basis of the figures put forward in
the enclosed note the Chinese coastal trade
represents on
culy 8
per cent. of Hong Kong's
total trade, and is accordingly not deserving
of special consideration.
htt
be noted,
must,
It was
however, noted that it is precisely this
trade